https://www.heckler-koch.com/no_cach...wnload%5D=1066

Chief Executive Officer Dr Jens Bodo Koch and Chief Financial Officer Dr Björn Krönert commented:

In Q1 2019 Heckler & Koch’s order intake is higher than our sales and our planned order book will
cover our current expectations for the year’s sales. The increased revenues were linked to
significantly increased quantities, and therefore to higher production volumes, resulting in an increase
in headcount in almost all departments and a significant increase in purchase volumes for raw
materials and bought-in parts. The resulting increased organisational complexity led to lower than
expected deliverable quantities from the main site in Oberndorf. The new production processes were
still not able to reach their full potential under these circumstances.

In the medium-term however, the positive effects of this restructuring will lead to a sustained increase
in efficiency and therefore to an improved delivery situation. This, together with changes in the
product mix, resulted in an EBITDA below the corresponding period Q1 2018 but higher than our Q4
2018 results. In addition to that, management and the trade union in Oberndorf reached an agreement
about an uncompensated worktime increase for the employees for two years starting in Q3/2019
which will also help and increase the production output by better use of its trained and experienced
personnel.