New governance for the GIAT Industries Group

Versailles, 8 December 2015 – During the meeting of the Board of Directors of GIAT Industries, the decision was made to change the governance of the companies of the Group in order to adapt it to its new configuration within the Kant project framework.

Therefore, as the closing of the Kant project is expected within the next few days, GIAT Industries, alongside the Wegmann family holding company, will hold 50% of the capital of Newco, which controls 100% of the capital of Nexter Systems and KMW.

In this configuration, the Chairman of GIAT Industries cannot hold this position in addition to the responsibilities of being a member of the Newco management board and Chairman of Nexter Systems.

For this reason the governance of the companies GIAT Industries, SNPE Explosives & Propellants and Eurenco shall be organised as follows:

-A renewed board of directors at GIAT Industries with a new Chairman and CEO,

-A renewed board of directors at SNPE with the same Chairman and CEO as GIAT Industries, who will also chair the Board of Directors of Eurenco.

Regarding Nexter Systems, the Group’s governance will be determined by Newco in accordance with agreements that have already been made. The governance of Newco will therefore consist of:

-A supervisory board of seven members, including one independent Chairman, one independent member appointed by each party and two representatives of each party,

-A management board composed of the Chairman of the Nexter Group and the Chairman of the KMW Group.

On closing day, Mr Philippe Burtin will surrender his Group mandates to the Board, including that of Nexter Systems.

GIAT Industries will propose a new representative to the positions of co-CEO of Newco and Chairman of the Nexter Systems’ Board of Directors.