JJ Auto : start of subscription

Warsaw, 19.05.2014

JJ Auto - start of subscription

• Offer period: from May 19, 2014 until May 27, 2014
• Price range: between 6.75 - 9.00 Euros and 28.23 - 37.64 in Polish Zloty
• Offering volume of up to 1,777,778 shares
• Listing expected on June 9, 2014

Warsaw, May 19, 2014 - From today investors can subscribe for shares of JJ Auto AG (together with its subsidiaries hereinafter "JJ Auto"), a dynamically growing manufacturer and supplier of automotive parts for commercial and heavy-duty vehicles in the Chinese market. The offer period is expected to end on May 27, 2014 at 12:00 p.m. CEST for retail investors and 6:00 p.m. CEST for institutional investors. The listing in the General Standard of the Frankfurt Stock Exchange and the Parallel Market of the Warsaw Stock Exchange is scheduled for June 9, 2014.

As already announced, JJ Auto is publicly offering up to 1,777,778 shares in Germany and Poland in the context of its IPO on the Frankfurt Stock Exchange and the Warsaw Stock Exchange. The price range for the shares is between 6.75 and 9.00 Euros, and between 28.23 and 37.64 in Polish Zloty - in Poland. The offer volume would lead to maximum gross proceeds of approximately 16.0 million Euros (66,9 million Zlots). The company plans to use the net proceeds from the sale of the shares mainly to launch self-operated distribution centres (35% of the proceeds), to increase JJ Auto's production capacities (30%), to build and promote JJ Auto's brand (15%), to enhance its research and development capacity (8%) and for working capital purposes to finance company's expanded operations (12%).

The offering consists of a public offering in Germany and Poland and private placements to institutional investors outside Germany, Poland and the United States. Sole Global Coordinator, Sole Bookrunner and Sole Lead Manager of the transaction is ACON Actienbank AG in Munich. In Poland, the leader of the consortium of brokerage houses, through which the shares of JJ Auto can be acquired is DF Capital Brokerage House, and investors will be able to subscribe for JJ Auto's shares also at ING Securities SA, Alior Bank Brokerage House and the BDM SA.

About JJ Auto
JJ Auto is highly profitable, one of the leading Chinese manufacturers and suppliers of high-quality steel automotive parts, tools and heavy-duty machine parts such as nuts, bolts, wrenches, sleeves, track pins and bushings and track parts. As a supplementary business the company is also involved in the trading of automotive tools and parts.

JJ Auto was founded in 1998. Today, with long market experience, an excellent track record of growth and profitability, company is strategically positioned to exploit growth potential in the rapidly growing Chinese markets. JJ Auto possesses extensive industry experience and technology know-how. Currently, JJ Auto exclusively sells its products in the Chinese market directly to distributors and direct sales customers, such as axle factories. The company's customer base consists of around 89 automotive parts distributors, which further sell JJ Auto's products to end users such as axle factories, repair shops and Original Equipment Manufacturers (OEMs.)

Positive development of the Chinese market for automotive spare parts
China is the world's largest producer and consumer of automobiles. Due to a rise in vehicle ownership and the growing vehicle maturity, industry analysts expect the Chinese after sales spare parts market to grow. Hence, China is expected to surpass the US to become the world's largest after sales spare parts market by 2015. At the end of 2013 the automobile spare parts market held a share of approximately 14 to 16 per cent of the total automobile parts market. Furthermore, industry analysts see an increased demand for mining and heavy-duty machine parts due to the rising demand for infrastructure and in the mining industry. Therefore the Chinese market for mining and heavy-duty machine parts is expected to grow at a CAGR of 22 per cent during 2013 to 2017 and is expected to reach a value of USD 154.1 billion in 2017.

Good financial results
With its sustainable business model focused on serving the Chinese automotive aftermarket with automotive parts and tools for commercial vehicles and for heavy-duty machines, JJ Auto achieved sales of 108.5 million Euros in 2013. The profit from operations (EBIT) reached 23.0 million Euros. The net profit amounted to 17.1 million Euros, representing a net profit margin of 15.7 per cent. During the past three years, JJ Auto reached a compounded annual growth rate of 24.0 per cent for sales and 24.8 per cent for net profit.

For further information, please contact:
FUTURAMA Communication Intelligence
Magdalena Szymańska
Tel: [phone]
Mail: [e-mail]
Or visit www.jj-auto.de ;

Disclaimer
This publication constitutes neither an offer to sell nor a solicitation to buy securities. The offer will be made solely by means of and on the basis of a securities prospectus, which will be published after approval by the German Financial Supervisory Authority (BaFin). An investment decision regarding the publicly offered securities of the issuer should only be made on basis of the published prospectus.

This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The shares in JJ Auto AG have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and are not being and will not be offered or sold in the United States of America.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "qualified persons"). All securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, qualified persons. Any person who is not a qualified person should not act or rely on this document or any of its contents.

The public offer in Poland and Germany will solely be made by means of and on the basis of a securities prospectus. The securities prospectus is available at the Company's website under www.jj-auto.de and at the premises of JJ Auto AG, Berlin, and ACON Actienbank AG, Munich.