Statement of M+W Group GmbH on the Handelsblatt article "Mittelständler versinkt im indischen Korruptionssumpf ", 18.11.2018 

As early as 2017, the M+W Group made the strategic decision to cease all its operations in India, with the exception of the Global Engineering Services unit (GES), which provides internal engineering services to affiliated companies. Due to project losses the Indian business has not been profitable in previous years. In addition, an external study has shown that there is insufficient market potential for its core business activities to consistently generate profitable business in India. The M+W Group will discontinue all operational business in India following the completion of all local projects in accordance with the existing customer contracts. The activities of GES will be continued.

MW High Tech Projects India Private Limited ("MW India") was established in April 2005 by the former M+W Group and is today a 100% indirect subsidiary of M+W Group GmbH ("M+W Group" or "M+W"). As part of the reorganisation of the M+W Group, the Indian company remained in the "M+W part" and is not part of the new Exyte Group, which exclusively comprises the core business in defined target countries.
In a Code of Conduct, the M+W Group has determined a set of compliance rules for correct conduct and responsible dealings with colleagues, business partners and authorities. The Code of Conduct is binding for all employees. The M+W Group does not tolerate any breach of these rules and regulations.

MW India has been accused of irregularities in India. The M+W Group is taking such accusations very seriously and is examining them thoroughly. The authorities have not yet expressed concrete claims for payment of social security contributions. In the view of M+W Group’s management, the results of the external tax audit are unsubstantiated and are challenged in court. Due to the ongoing judicial proceedings, we are currently not able to comment on the allegations in detail. In order to establish transparency, the M+W Group is in close contact with those involved and the authorities. With regards to the allegation of corruption, M+W Group commissioned one of the leading auditing firms to carry out an audit as early as 2016. Once the results of the audit were available, we immediately took action and dismissed the responsible persons.