Hess AG plans IPO

Lighting specialist plans initial listing in the Prime Standard / IPO serves international business expansion / High-growth potential offered by LED market

Villingen-Schwenningen, (PresseBox) - Hess AG, one of the internationally established producers of external and architectural lighting, is preparing for an initial public offering in the Prime Standard of the Frankfurt Stock Exchange. The company is increasingly concentrating on the high-growth LED market. Demand for energy-efficient lighting is on the increase worldwide, in order to thereby sustainably lower energy consumption, despite growing demand for lighting. The global market for general lighting is set to grow from EUR 55 billion in 2011 to EUR 83 billion in 2020, reflecting 4.7 % average growth per year, according to a recent McKinsey study. This study also forecasts that the corresponding LED market will grow from EUR 5 billion in 2011 to EUR 57 billion in 2020, representing average growth of 31.1 % per year over the same period.

Hess has combined technology and individual solution expertise with high-end design and high product quality for more than 60 years. The premium provider develops and distributes "structured and functional" external lighting for streets, squares and public spaces, as well as architectural and building-related lighting. Appropriate urban equipment such as park benches round out the product range. With the acquisition of emdelight GmbH in March 2012, Hess has also expanded its positioning on the global market for artistically structured lighting solutions, thereby securing direct long-term access to the international project business. Projects realised by emdelight include illuminating the facade of the Commerzbank's head office in Frankfurt, and recently the 8.5 km-long Barwa Commercial Avenue shopping centre in Qatar.

The Hess Group generated EUR 68.1 million of (IFRS) revenue in the 2011 financial year, and EUR 5.6 million of earnings before interest and tax (EBIT), representing an 8.2 % EBIT margin. The company further accelerated its growth rate in the first half of 2012, achieving approximately 39 % revenue growth. The dynamically growing LED share of revenue already stood at 22.6 % in 2011, compared with 4.9 % in 2009. Hess is regarded as an LED pioneer: the world's first LED external light, which Hess developed, was deployed as early as 2003.

The IPO issue proceeds are to be utilised primarily to finance further growth. "We are preparing consistently for the IPO, and can launch the process at any time," commented Christoph Hess, CEO of Hess AG, who has been a third-generation manager of this family company since 2007. "Hess is excellently positioned, and is pursuing a clear growth strategy. The IPO represents the ideal financing basis for our company's further expansion. Our innovative and energy-saving LED products enable dynamic growth over the coming years," according to Hess, who also acts as the chairman of the Licht ZVEI sector association. Peter Ziegler, CFO of Hess AG, added: "Our figures provide evidence of our growth potential: Hess has grown its revenue by an annual average of 14 % within the past three years. We aim to successfully accelerate this growth thanks to the market potential and our innovative strength."

Hess products are distributed in more than 50 countries worldwide - with a growing presence on the important lighting markets of Europe, Asia, the Middle East and America. The products are manufactured at three production locations in Germany and the USA; Hess also operates production capacities for final assembly, including in Japan and China. Hess employed an average of 360 staff during the first half of 2012.

On the internet at www.hess.eu

Disclaimer:

This publication represents neither an offer to purchase nor the request for an offer for the purchase of securities. Hess AG securities are not, and will not be, offered publicly outside Germany. Any public offer in Germany occurs exclusively through and on the basis of a securities prospectus to be published. In this case, the securities prospectus will be available free of charge from Hess AG.

This publication represents neither an offer to purchase nor the request for an offer for the purchase of securities in the United States of America. Hess AG shares may not be offered or sold in the United States of America, or to "US Persons" (as defined in Regulation S of the US Securities Act of 1933 in the respective valid version (the "Securities Act")), or for the account of "US Persons", unless they are registered or exempt from the requirement to register pursuant to the Securities Act. The shares were not, and are not, registered pursuant to the Securities Act. A public offer of securities in the United States of America would occur on the basis of a prospectus, which would be available from Hess AG, and which would contain detailed information about Hess AG and its management, as well as its annual financial statements.

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(iii) other individuals to whom they may be legally made accessible (whereby such individuals are together designated as "Relevant Persons").

This publication is addressed exclusively to Relevant Persons. Individuals who are not Relevant Persons may not act on the basis of trust in this publication. Any investment or investment activity relating to this publication is open exclusively to Relevant Persons, and will be entered into solely with Relevant Persons.

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