Picanol NV

Earnings Release • Apr 30, 2014

TRADING UPDATE Regulated information Ypres, 30 April 2014 (8:00 am)

Q1 2014 TURNOVER 23% LESS THAN Q1 2013 BUT IN LINE WITH Q1 2012

The Picanol Group (NYSE Euronext: PIC) realized a consolidated turnover of 111.79 million euros in the first quarter of 2014, compared to 146.00 million euros in the exceptionally strong first quarter of 2013 and in line with the 107.05 million euros in the first quarter of 2012.

As expected and announced earlier, the Weaving Machines division was confronted with a significant slowdown in the global weaving machine market in the first quarter of 2014. This was even intensified by the strong euro.

The Industries division saw lower demand from Weaving Machines in the first quarter of 2014. However, it was able to realize further growth from external clients as compared to the first quarter of 2013.

Investment Plan

Since improving the competitiveness through further productivity and quality improvements and targeted investments is a top priority, the Board of Directors approved investments at Ypres for an amount of 17.5 million euros in 2013. The Picanol Group is currently investing in new production machines, a new testing area for weaving machines and a new customer training center in Ypres. Construction works are on schedule and should be completed this summer.

(new training center) (new testing area)

Outlook

The Picanol Group confirms its previous forecast to realize in the first six months of 2014 a turnover in line with that of the first half of 2012.

The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost-control remains of the essence.

The Picanol Group will announce its results for the first six months of 2014 on Wednesday 27 August 2014 (before opening of the stock exchange).

About the Picanol Group

The Picanol Group is an international, customer-oriented group specialized in the development, production and sale of weaving machines and other high-technology products, systems and services. Division Weaving Machines: Picanol develops, manufactures and sells high-tech weaving machines based on air (airjet) or rapier technology. Picanol supplies weaving machines to weaving mills worldwide, and also offers its customers such products and services as weaving accessories, training, upgrade kits and spare parts. For more than 75 years, Picanol has played a pioneering role in the industry worldwide, and is one of the current world leaders in weaving machine production.

Division Industries: Proferro comprises the foundry and the group's machining activities. It produces cast iron parts for e.g. compressors, agricultural machinery, and Picanol weaving machines. Through PsiControl, the group specializes in the design, development, manufacturing and support of a.o. custom made controllers for various industries. Melotte develops and produces innovative product solutions using Direct Digital Manufacturing (DDM) and Near-to-Net-Shape Manufacturing (NNSM) technologies. In addition to the headquarters in Ypres (Belgium), the Picanol Group has production facilities in Asia and Europe, linked to its own worldwide sales and service network. In 2013, the Picanol Group realized a consolidated turnover of 559.9 million euros. The Picanol Group employs some 2,000 employees worldwide and is listed on NYSE Euronext Brussels (PIC). The Picanol Group was founded in 1936 and celebrated its 75th anniversary in 2011.

For further information please contact: Frederic Dryhoel, Corporate Communication Manager, at +32 (0)57 22 23 64 or by e-mail: frederic.dryhoel@picanol.be

This press release is also available on the Picanol Group's corporate website: www.picanolgroup.com