Press release

In line with the earlier announcement by LEONI Serbia that production at the Malošište plant will be gradually ceased by the end of this year, as communicated to the public in the press release of July 3^rd, the first group of employees was laid off at the beginning of September under the conditions defined by the redundancy program.

On this occasion, certain information appeared in the media that is inaccurate or imprecise. Given the understandable public interest, we would like to present the facts.

• From the very beginning of its operations in Serbia, LEONI has regularly fulfilled all obligations towards its employees, including the payment of salaries, salary compensations, as well as taxes and contributions. This has ensured continuity in the exercise of all labor and social security rights. Therefore, claims that contributions for eight months of work in 2025 have not been paid are incorrect.

According to information received from the Republic Fund for Pension and Disability Insurance (PIO), data on years of service and earned salaries for the current year are recorded after the end of the year. This procedure is in line with regulations and does not affect the exercise of rights with the National Employment Service, which keeps a complete record.

To avoid possible misunderstandings, on July 18^th, LEONI Serbia advised employees at the Malošište plant to check their pension records at the nearest PIO branch office. The notice stated: “If during this process you notice any technical error on the part of the PIO Fund, please immediately inform the HR department so that we can take appropriate measures in a timely manner.” Most employees have done so and resolved any uncertainties directly with the relevant departments at the Malošište site.

• According to the Labor Law, severance pay is granted only “...for each completed year of service with the employer...” (Article 158), which means not for months in excess of a full year.

• Employees whose contracts are being terminated receive severance pay amounting to 50% of the average monthly salary (“gross 1”) earned in the last three months, for each completed year of service. This is 50% higher than the minimum severance pay prescribed by law.

Based on the calculation method defined by law, each employee declared redundant will receive a different severance amount depending on the average of their last three salaries. The figure of around RSD 46,600 per completed year of service at LEONI, mentioned in the media, was calculated only as an example based on the average salary for an operator position, which means that the basis for other job positions is different and generally higher.

• In September, around 420 employees at the Malošište plant received severance pay along with the termination of their contracts. Only four employees filed complaints regarding the calculation, which is less than 1% and everything was clarified and resolved with them on the same day.

HR services at the Malošište plant remain available at all times to all employees – both those still employed and those whose contracts have been terminated. This will remain the case going forward. Anyone with questions, concerns, or objections can contact HR in person or by phone: 027/319 152 and 063/105 638.

• By the end of the year, an additional 1,500 people at the Malošište plant will lose their jobs (the plant employed around 1,900 in total). As announced in the press release of July 3^rd, the reason for closing this site is operating losses. At other locations in Serbia – Prokuplje, Niš, and Kraljevo – the company is also facing increased costs. However, these three plants will continue working on their projects with a clear goal of improving operations. At this moment, LEONI Serbia employs about 8,500 people, which means that after the closure of the Malošište site, it will have around 7,000 employees and will still remain one of the largest industrial employers in the country.

LEONI has been operating in Serbia since 2009 and until now has experienced only growth and expansion of production. The crisis in the European automotive industry, along with business conditions in Serbia, has led to the closure of one of four plants, which is a very difficult blow for those losing their jobs, for the company itself, as well as for the local community.

LEONI Serbia will continue to act in line with legal regulations and best practices. In this challenging process, we have been and remain open to dialogue with all relevant institutions, trade unions, and employees, with mutual respect.