Restamax Plc: COOPERATION NEGOTIATIONS COMPLETED - HUMAN RESOURCES REORGANISED

Restamax Plc

STOCK EXCHANGE RELEASE 5 NOVEMBER 2018 at 17:15

COOPERATION NEGOTIATIONS COMPLETED - HUMAN RESOURCES REORGANISED

On 1 June 2018, Restamax Plc purchased the entire shareholding of RR Holding Oy ("Royal Ravintolat"). After the integration of the companies, the Group aims to achieve significant synergy benefits and improve profitability by reorganising functions and discharging overlapping functions. The cooperation negotiations launched in order to combine and reorganise the Group's management, administration and support functions (information released on 21 September 2018) have been completed.

The negotiations concerned the personnel of RR Holding Oy and its subsidiaries (Royal Ravintolat Oy, Royal Konseptiravintolat Oy and Sushi World Oy). The negotiations did not concern restaurant and kitchen managers responsible for business results. Negotiations concerning Group management and administration started earlier in September. The negotiations were aimed at achieving synergy benefits and improving profitability through a more flexible personnel structure. The cooperation negotiations concerning both personnel groups were completed on 31 October 2018.

The cooperation negotiations will result in the reduction of 200 positions and in the shifting to part-time work of 40 positions. The arrangements apply to both clerical and regular employees. The reduction of positions will take place through voluntary arrangements and terminations, and upon the expiry of the employment contracts of workers occasionally called to work. The employees to be terminated will be offered the opportunity to participate in support measures organised by the employer to promote re-employment. Furthermore, working flexibly at various restaurants has been discussed with the staff, which will better facilitate meeting the fluctuations in demand typical of the field. The aim is to ensure a quality customer service level, adjusting to demand.

With the discharging of overlapping functions, economies of scale in purchasing and procurement volume and the improvement of staff efficiency, Restamax Plc estimates that it will achieve synergy benefits of at least MEUR 6 in 2019.

Additional information:
Aku Vikström, CEO, Restamax Plc, tel. +358 44 011 1989
Jarno Suominen, CFO, Restamax Plc, tel. +358 40 721 5655

Distribution:
NASDAQ Helsinki
Major media
www.restamax.fi

Restamax Plc is a Finnish restaurant business and labour hire services group established in 1996. The company, which was listed on NASDAQ Helsinki in 2013 and became the first Finnish listed restaurant company, has continued to grow strongly throughout its history. The Group companies include some 220 restaurants, nightclubs and entertainment centres all over Finland. The company also has restaurant business operations in Denmark. In June 2018, the company purchased Royal Ravintolat. Well-known restaurant concepts of the Group include Stefan's Steakhouse, Viihdemaailma Ilona, Classic American Diner, Hanko Sushi, Sandro, Savoy and Teatteri. In 2017, Restamax Plc's turnover was MEUR 185.9 and EBITDA MEUR 22.4. Depending on the season, the Group employs approximately 3,500 people converted into full-time workers.

Restamax company website: www.restamax.fi, Restamax consumer website: www.ravintola.fi, Royal Ravintolat: www.royalravintolat.fi, Smile Henkilöstöpalvelut: www.smilepalvelut.fi