EANS-News: FACC AG planning IPO in 2014

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Strategic management decisions/IPO

- One of the largest pure play composite Tier I suppliers aims for
listing on the regulated market of the Vienna Stock Exchange

- FACC is well positioned to benefit from the original equipment
"super- cycle" due to significant production share with respect to
all modern commercial aircraft programs and increased use of
composite materials in new aircraft

- Global technological leadership, operational excellence and an
experienced management team form the basis for long-term market
leadership

- J.P. Morgan and Morgan Stanley are managing the IPO as Joint Global
Coordinators and Joint Bookrunners

The globally active Tier I supplier of composite components and
assemblies, FACC, targets to be listed on the regulated market of the
Vienna Stock Exchange. The issuer will be FACC AG (currently
Aerospace Innovation Investment GmbH, and with the current FACC AG
being converted into FACC Operations GmbH), headquartered in Ried im
Innkreis, Austria.

It is envisaged to place existing shares held by the current owner,
FACC International Company Limited, which is an indirect subsidiary
of Aviation Industry Corporation of China ("AVIC") as well as new
shares from a capital increase in the amount of EUR 150m. The shares
will be publicly offered to retail and institutional investors in
Austria, and to institutional investors internationally by ways of a
private placement. FACC plans to use the expected net proceeds from
the capital increase to (i) fund future growth, (ii) enhance the
capability to develop complete primary structures, (iii) focus on
innovation for new aircraft programs, (iv) expand international
cost-competitive sourcing, and (v) pursue selected add-on-acquisition
opportunities. Subject to market conditions, the stock exchange
listing is planned for 2014.

FACC develops and produces composite components for aerostructures,
engines & nacelles and cabin interiors of commercial aircraft. The
company is headquartered in Ried im Innkreis, Austria and employs
around 3,000 people worldwide. In 2009 Aviation Industry Corporation
of China ("AVIC") acquired FACC from its previous owners.

Walter Stephan, CEO of FACC, says: "The FACC management team and
employees have done an extraordinary job during the past years to
develop our company into the great enterprise it is today. Our unique
position within the supply chain and our global engineering and
production footprint enables us to serve our clients when and where
they need us. The IPO is an important step in strengthening our
business proposition and comes at a time when our company is poised
to successfully grow into an independent future."

Geng Ruguang, a representative of AVIC adds: "Since our initial
investment in 2009, we have worked alongside FACC in great
partnership to develop the company into an internationally respected
supplier that stands out through its research and development
capabilities and hence the added value it can bring to all major
OEMs. Its best-in-class manufacturing and international presence,
which is recognized industry-wide, underlines FACC's established
position in the sector and the IPO will further permit the company to
build upon these strengths."

FACC AG is one of the world's leading companies in the design,
development and production of advanced fibre reinforced composite
components and systems for the aviation industry. The range of
products reaches from structural components for the fuselage and
wings over engine components to complete passenger cabins for
commercial aircraft, business jets and helicopters. FACC is a
supplier to all large aircraft manufacturers such as Airbus, Boeing,
Bombardier, Embraer, Sukhoi, and COMAC as well as for engine
manufacturers and sub-suppliers of manufacturers which makes the
company one of the largest pure play composite Tier I suppliers in
the world.

Strong global market growth due to original equipment super-cycle
FACC is well positioned to benefit from the current commercial
aerospace original equipment "super-cycle" given its high exposure to
the global commercial aerospace market. In the coming years, demand
for new aircraft will be strengthened due to an expected steady
increase in passenger traffic demand. A currently old in-service
fleet has further led to record order backlogs for replacement
aircraft. However, increasingly cost conscious airlines now demand
higher fuel savings, lower emissions and less maintenance
requirements from their new fleet. Due to the superior
characteristics of composites, FACC's products can seamlessly deliver
on these end-customer needs and have hence lead to increasing
work-share for the company on major existing and new programs.

Technological leadership with strong focus on research & development
FACC continuously invests in its manufacturing capabilities and
maintains more than 4,000m2in designated testing, laboratory and R&D
facilities. This has lead to accelerated continuous development of
the company's business proposition and has hence enabled the
company's transformation from a provider of single parts into a
manufacturer of complete structures. Today the company is one of the
few Tier I suppliers capable of delivering complete and tailor-made
composite aerostructures, engine and nacelle components and cabin
interiors as turnkey solutions which can be readily and seamlessly
integrated into the customers' products.

Global engineering and production footprint to meet customers' needs
worldwide FACC operates five state of the art fully invested
facilities in Ried, Austria. In addition the company has engineering
centers in North America, Canada and Slovakia. Strategically placed
international supply chain partners maximize the companies reach and
enable FACC to fulfill clients' needs globally. Partners have
benefitted strongly from FACC's expertise as the company has been
leading the plant construction and management efforts of all of its
partners. As a consequence, the installed highly efficient SAP based
business architecture connects FACC with its partners, customers and
suppliers at all steps of the manufacturing process and provides
unique capabilities to manage material flow and coordinate production
globally from Austria. Therefore FACC is in a strong position to deal
with all international customer requirements (e.g. offset
agreements).

In 2013/14 fiscal year, FACC generated sales of approximately EUR
547m and EBITDA of around EUR 60m. Over the last three years sales
and EBITDA have risen by an average of 24.1% and 22.7%, respectively.

J.P. Morgan and Morgan Stanley will manage the IPO as Joint Global
Coordinators and Joint Bookrunners; Erste Bank and UBS have been
mandated as Co-Bookrunners.

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 in the United States. The
securities to which these materials relate have not been registered
under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold in the United States absent
registration or an exemption from registration under the Securities
Act. There will be no public offering of securities in the United
States.

These materials are not an invitation nor are they intended to be an
inducement to engage in investment activity for the purpose of
Section 21 of the Financial Services and Markets Act 2000, as amended
("FSMA"). These materials are directed only at (i) persons outside
the United Kingdom; or (ii) persons in the United Kingdom that are
"qualified investors" within the meaning of Section 86(7) of FSMA
that are also (a) persons authorised under FSMA or otherwise having
professional experience in matters relating to investments and
qualifying as investment professionals under article 19 of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005, as amended (the "Financial Promotion Order"); or (b) high net
worth companies, unincorporated associations and other persons to
whom article 49(2) (a) to (d) of the Financial Promotion Order
applies; or (c) any other persons to whom these materials for the
purposes of Section 21 of FSMA can otherwise lawfully be made
available (all such persons together being referred to as "Relevant
Persons"). Any person in the United Kingdom that is not a Relevant
Person should not act or rely on these materials. The securities or
any investment or controlled activity to which such securities relate
are only available to, and will be engaged in only with, Relevant
Persons.

This document is for information purposes only and is not a
prospectus. Investors should not purchase or subscribe for any shares
referred to in these documents except on the basis of information in
the prospectus to be published in connection with the offering of
such shares. The prospectus will be available on the website of FACC
(http://www.facc.com).

Some of the information in this press release may contain projections
or other forward-looking statements regarding future events or the
future financial performance of the Company. You can identify forward
looking statements by terms such as "expect," "believe,"
"anticipate," "estimate," "intend," "will," "could," "may" or
"might," or, in each case, the negative of such terms or other
similar expressions. We wish to caution you that these statements are
only predictions and that actual events or results may differ
materially. We do not intend to update these statements to reflect
events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. Many factors could
cause the actual results to differ materially from those contained in
our projections or forward-looking statements, including, among
others, general economic conditions, our competitive environment,
risks associated with our industry, as well as many other risks
specifically related to the Company and its operations.

Further inquiry note:
Press: Investors/Analysts:
Andrea Schachinger Andreas Schoberleitner
Corporate Communication Vice President Finance
Tel: 059/616-1194 Tel: 059/616-1322
E-Mail: a.schachinger@facc.com E-Mail: a.schoberleitner@facc.com

end of announcement euro adhoc
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company: FACC AG
Fischerstraße 9
A-4910 Ried im Innkreis
phone: +43/59/616-0
FAX: +43/59/616-81000
mail: office@facc.at
WWW: www.facc.com
sector: Industrial Components
ISIN: AT0000A10J83
indexes:
stockmarkets: Regulated free trade: Wien
language: English