Koenig & Bauer AG: Koenig & Bauer Banknote Solutions S.A. enters into a leniency agreement with Brazilian authorities

Würzburg (pta025/19.10.2026/18:30 UTC+2)

Koenig & Bauer Banknote Solutions S.A. (Lausanne), the group company responsible for banknote printing has today entered into a leniency agreement with the Brazilian Controladoria-Geral da União (CGU) - the authority responsible for prosecuting corruption-related offenses. This concludes the proceedings, ongoing since 2019, concerning allegations that contracts from the Brazilian mint (Casa da Moeda do Brasil) were obtained through corruption between 2008 and 2011 (cf. the ad-hoc announcement by Koenig & Bauer AG dated July 24, 2019). The matters in question were previously the subject of an investigation in Switzerland, initiated by a voluntary self-disclosure from Koenig & Bauer Banknote Solutions S.A. That investigation was concluded by the Swiss Office of the Attorney General in 2017 with the imposition of a fine of CHF 1.00 and the disgorgement of illicit profits totaling CHF 30 million (cf. the ad-hoc announcement dated February 20, 2017). Koenig & Bauer Banknote Solutions S.A. has cooperated fully with the Brazilian authorities. The Brazilian Advocacia-Geral da União (Office of the Attorney General of the Union) has joined the leniency agreement as a party.

Under the terms of the leniency agreement, Koenig & Bauer Banknote Solutions S.A. commits to paying CHF 11,544,942 within 60 days after signature as compensation for losses incurred by Casa da Moeda do Brasil. No punitive fines will be imposed, and the company will not be excluded from participating in public tenders in Brazil. The independent audit procedure conducted by the Brazilian Federal Court of Accounts (Tribunal de Contas da União, or TCU) is not concluded by this agreement. However, once the leniency agreement is finalized, the TCU can no longer impose financial penalties or debar the company from public procurement contracts. Should the TCU demand compensation for damages that exceeds the scope of the agreement, Koenig & Bauer Banknote Solutions S.A. believes it has strong grounds for defense under both Brazilian and Swiss law.

Koenig & Bauer Banknote Solutions S.A. intends to file an application with the Office of the Attorney General of Switzerland to retroactively amend the penal order issued in March 2017 and to seek a partial refund of previously paid amounts, as the payment made to Brazil should be credited against the profits confiscated in Switzerland in 2017. Based on current information and existing legal opinions, Koenig & Bauer AG anticipates that it is highly likely that Koenig & Bauer Banknote Solutions S.A. will succeed with this application in Switzerland.

Consequently, based on current information, the conclusion of the leniency agreement will have no significant impact on the Group's income statement. The compensation payment of CHF 11,544,942 does not negatively affect the Group's financial position relative to its existing forecast.

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Emitter:	Koenig & Bauer AG Friedrich-Koenig-Straße 4 97080 Würzburg Germany
Contact Person:	Lena Landenberger
Phone:	+49 931 909-4085
E-Mail:	lena.landenberger@koenig-bauer.com
Website:	www.koenig-bauer.com
ISIN(s):	DE0007193500 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt, Munich; Free Market in Dusseldorf, Hamburg, Hannover, Stuttgart, Tradegate BSX