News Column

DGAP-News: Braas Monier Building Group S.A. plans IPO in 2014

May 26, 2014

DGAP-News: Braas Monier Building Group S.A. / Key word(s): IPO Braas Monier Building Group S.A. plans IPO in 2014 27.05.2014 / 08:32 --------------------------------------------------------------------- NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. OTHER RESTRICTIONS ARE APPLICABLE. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THE PRESS RELEASE. BRAAS MONIER BUILDING GROUP S.A. PLANS IPO IN 2014 - Leading manufacturer and supplier of pitched roof products aims for listing on the regulated market (Prime Standard) of the Frankfurt Stock Exchange - Leading market positions in core regions combined with a broad and diversified product portfolio as catalysts to benefit from expected market growth - Strengthened financial profile through streamlining of operations and recent refinancing / increased financial and operational flexibility as basis for long-term market leadership - Current principal shareholders Apollo Management, TowerBrook Capital Partners, York Capital Management and BNP Paribas will remain invested - BNP Paribas, J.P. Morgan and UBS Investment Bank manage the IPO as Joint Global Coordinators and together with Berenberg and Goldman Sachs act as Joint Bookrunners Luxembourg, 27 May 2014 - Braas Monier Building Group S.A. ("BraasMonier"), a leading manufacturer and supplier of pitched roof solutions in Europe, parts of Asia, and South Africa, aims to be listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange. It is envisaged to partially place shares held by Monier Holdings S.C.A. which is majority owned by Apollo Management, TowerBrook Capital Partners, York Capital Management and BNP Paribas. The IPO is planned for 2014. Braas Monier specialises in pitched roof systems and offers a comprehensive range of concrete and clay tiles and complementary roofing components, as well as chimney and energy systems. Braas Monier had operations in 36 countries, 107 production facilities and employed about 7,400 employees, as of 31.12.2013. The Company is headquartered in Luxembourg. Pepyn Dinandt, CEO of Braas Monier, says: "In recent years, we have undertaken a tremendous effort to address the challenges of a historical market downturn and today we emerge even stronger as a group. We have streamlined our operations, strengthened our profitability and are now in an excellent position to benefit from the expected market recovery in Europe and the attractive growth opportunities in emerging markets and our components business. A public listing will help raise awareness of our brands in global markets and increase our financial flexibility in the future, and will thus support our growth strategy." Streamlined operations with strengthened profitability and increased cash flow generation In the aftermath of the financial and economic crisis, the construction industry experienced a significant downturn, with the European residential sector seeing an unprecedented double-dip in the years 2008 and 2011/12. Since then, Braas Monier has undertaken comprehensive restructuring measures to address the market environment and to create an even more efficient business going forward. The Company streamlined its operations in two waves, in 2009/2010 and 2012/2013, which included the reduction of headcount by approximately 2,000 full-time employees since 2011, an optimisation of liquidity management and the improvement of working capital. As a result, Braas Monier has reduced costs while increasing operational flexibility, being now able to respond more quickly to changes in market demand. This is demonstrated by positive results with the Operating EBITDA margin increasing to 13%, despite slightly lower revenues of EUR 1,228 million in 2013. The Company also developed a compelling cash flow profile with strong cash conversion, measured working capital expenditure, and significant interest cost savings due to the recent successful refinancing in April 2014. Broad and balanced product portfolio with market leading positions in most of its core markets Braas Monier is the leading supplier by volume of concrete and clay roof tiles in most of its core regions with number one positions in Germany, Italy, the Netherlands and the Nordic countries and top three positions in France, the United Kingdom, Poland and the Czech Republic. The Company also holds market leading positions in roofing components, as well as chimney and energy systems. According to Euroconstruct, the volume of construction output in developed markets in Europe is forecast to grow moderately in the next few years, while South-Eastern Europe offers faster growing markets. In a market that is dependent on the level of activity in the construction sector and is sensitive to GDP growth, Braas Monier's broad product offering - spanning new build and more stable renovation end markets - and geographic diversity help to mitigate cyclical affects. Integrated approach delivers competitive advantage Roofing has become more and more complex in recent years. Evolving customer needs for energy efficient solutions, new regulations and the trend towards roofs with lower pitches support companies with strong technological capabilities. Braas Monier's comprehensive expertise and technical know-how place it in a strong position to provide integrated solutions to meet these customer and regulatory demands. The Company provides a one-stop-shop advantage for roofers, contractors and house developers, contributing to increased brand awareness and customer loyalty. Braas Monier has industry-leading R&D and innovation capabilities and plans to expand its efforts further, with a particular emphasis on environmentally friendly, energy-efficient and sustainable products. Well-positioned to benefit from market recovery and attractive growth prospects The European residential building market is now expected to recover from historical lows. According to Euroconstruct, the outlook for the new build residential market is positive until 2016 for the vast majority of Europe. Market growth in roofing is also supported by certain trends such as increasing roof complexity and increasing energy efficiency requirements resulting from European regulations to reduce greenhouse gas emission. To achieve these standards, the combination of all parts of the roof as one system will become all the more important. Recognising this, Braas Monier is leading the market in offering integrated solutions of roofing tiles and components and sees this as an attractive future growth opportunity. The Company also plans to expand local manufacturing activities in selected markets such as India, to benefit from the positive growth trends in the medium-term. "We have a clear strategy to generate sustainable results going forward. We want to expand our market leading position based on innovative products and services. We continue to focus on an efficient cost structure. We want to grow the components business and finally, we will leverage our strong market position to generate above-average growth in markets which are about to recover", Pepyn Dinandt continues. Positive development continues in first quarter 2014 In 2013, Braas Monier generated revenues of EUR1,228 million (2012: EUR1,315 million) and an Operating EBITDA margin of 13% (2012: 10%). Supported by favourable weather conditions in most of Europe, the positive operational development continued in the first quarter of 2014. Group revenues rose by EUR34 million against the prior-year period to approx. EUR250 million. In the same time, Operating EBITDA increased by EUR24 million to EUR21 million, compared with the first quarter 2013. BNP Paribas, J.P. Morgan and UBS Investment Bank act as Joint Global Coordinators, and together with Berenberg and Goldman Sachs act as Joint Bookrunners. About Braas Monier Braas Monier Building Group is a leading manufacturer and supplier of pitched roof solutions, including roof tiles and roofing components, in Europe and parts of Asia and South Africa. The Group covers all steps of the manufacturing process, offering a comprehensive range of concrete and clay tiles for pitched roofs and complementary roofing components as well as a wide range of ceramic and steel chimneys and energy systems solutions. Braas Monier had operations in 36 countries, 107 production facilities and employed about 7,400 people, as of 31.12.2013. The Company is headquartered in Luxembourg. Contact: Braas Monier Building GroupAchim Schreck, Director Group Communications +49 6171 61 28 59 achim.schreck@monier.comBrunswick GroupSabine Morgenthal +49 174 3258886 These materials may not be published, distributed or transmitted in the United States, Canada, Australia or Japan. These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the "Shares") of Braas Monier (the "Company") in the United States, Germany or any other jurisdiction. The Shares of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Shares of the Company have not been, and will not be, registered under the Securities Act. Any sale in the United States of the securities mentioned in this communication will be made solely to "qualified institutional buyers" as defined in, and in reliance on, Rule 144A under the Securities Act. 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 is to be published. An investment decision regarding the publicly offered securities of Braas Monier should only be made on the basis of the securities prospectus. The securities prospectus will be published promptly upon approval by the Commission de Surveillance du Secteur Financier (CSSF) and will be available free of charge from the Braas Monier Building Group S.A. 5, rue Guillaume Kroll, L-1882 Grand Duchy of Luxembourg, or on the BraasMonier website ( In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as "Relevant Persons"). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. End of Corporate News --------------------------------------------------------------------- 27.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at and --------------------------------------------------------------------- 270580 27.05.2014

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Source: DGAP Corporate News

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