TKH Group N.V.

M&A Activity • Oct 16, 2018

Press release

TKH Group N.V. (TKH)

TKH strengthens its position in vision technology

TKH Group NV ("TKH") announces that it has reached agreement on the acquisition of Lakesight Technologies ("Lakesight"), a global vision technology company providing innovative high-end technologies for imaging systems, and owned by sustainability focused private equity investor Ambienta Sgr S.p.A.

Lakesight, with its headquarters in Germany, consists of three operating entities: Chromasens GmbH (Germany), Mikrotron GmbH (Germany) and Tattile Srl (Italy). It primarily serves the industrial and mobility markets, offering machine vision solutions for inspection, measurement and process control. In the industrial market, Lakesight fulfils complex and demanding requirements of a variety of end markets, including semiconductor, electronics, automotive, printing and food & beverage. Its Mobility division provides cameras and solutions for intelligent traffic systems that are critical for safety applications, such as highway and tunnel monitoring, as well as for tolling, traffic law enforcement, access control to parking lots and other public transportation. Lakesight solutions are crucial in ensuring quality standards, improving energy and material efficiency, reducing transportation-related emissions and pollution, thus delivering durable environmental benefits.

Alexander van der Lof, CEO of technology company TKH: "Lakesight offers a broad portfolio of high-end vision technologies that are nicely fitting to TKH's technologies in the field of vision & security. The combination will generate synergies and accelerate growth, especially in our defined vertical growth markets Machine Vision and Tunnel & Infra. Our joint technical expertise and know-how will support TKH's strategy on focussing towards technological leadership."

Peter Tix, CEO of Lakesight: "The acquisition by TKH is an excellent move for Lakesight to continue its ambitions to become technology leader in the machine vision industry for smart solutions. We see an excellent fit with TKH to combine our strengths and potential to accelerate growth together with complementary technologies and the leverage of the international geographical footprint of TKH."

With 169 employees, Lakesight realises an annual turnover of about € 45 million. The activities of Lakesight will strengthen TKH's sub-segment vision & security in the business segment Building Solutions.

TKH will acquire 100% of the shares of Lakesight. The acquisition is expected to be closed before year-end and will contribute to the earnings per share of TKH as from 2019. The purchase price and the EBITDA-multiple are in line with the valuation of technology companies. TKH will finance the transaction from a bridge term loan facility and existing resources.

Haaksbergen, 16 October 2018

Executive Board

For additional information: J.M.A. (Alexander) van der Lof MBA, Chairman of the Executive Board tel. +31 (0)53 5732903 website TKH: www.tkhgroup.com website Lakesight: https://www.lakesighttechnologies.com

Agenda

1 November 2018 Trading Update Q3 2018 5 March 2019 Publication annual results 2018 3 May 2019 Trading Update Q1 2019 6 May 2019 General Meeting of Shareholders 13 August 2019 Publication interim results 2019 5 November 2019 Trading update Q3 2019

Profile

Technology firm TKH Group NV (TKH) is an internationally operating group of companies, which is specialized in developing and supplying innovative Telecom, Building and Industrial Solutions based on four core technologies.

The four TKH core technologies - vision & security, mission critical communication, connectivity and smart manufacturing - are linked to each other to create comprehensive systems and solutions in our three business segments. Within these business segments there is a strong focus on seven vertical growth markets - fibre optic networks, parking, care, tunnel & infra, marine & offshore, machine vision and tire building industry - in which our core technologies are positioned as a one-stop-shop for our customers. TKH strives for farreaching synergy and co-operation between its subsidiaries.

TKH strives to achieve strong market positions based on its innovative core technologies and services. TKH and its subsidiaries operate on a global scale. Growth is concentrated in Europe, North America and Asia. In 2017, TKH achieved a turnover of € 1.5 billion with 5,900 employees (FTE).