Frequentis AG: Stock market listing in Germany and Austria planned

Vienna (pta017/09.04.2019/10:05 UTC+2) 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.

- Provider of communication and information solutions for control centres operating safety-critical services is planning a listing on the Frankfurt Stock Exchange and the Vienna Stock Exchange
- An IPO is the optimal way to drive the on-going transformation from an owner-run to a management-run company with a strong commitment by the family owners to provide continuity in business development
- Targeted proceeds will be used to finance further growth and safeguard the company's financial independence and long-term flexibility

Frequentis AG, which was established in Vienna in 1947, is planning an IPO in Germany and Austria with the aim of the listing on the Frankfurt Stock Exchange and the Vienna Stock Exchange. As a leading international specialist in control centre solutions, Frequentis sees a stock market listing as a means to ensure its long-term financial independence and flexibility and successfully drive forward its sustained growth path. The proceeds from the planned capital increase will be used principally for selective M&A activities to complement the company's range of products and services and increase its local presence through a local value chain. At the same time, Frequentis will strengthen its distribution and increase its market penetration. Going forward, Frequentis aims to act as a general contractor for the supply of safety-critical control centres.

The Bardach family, which acquired the company as an SME in 1986, intends to remain the core shareholder in the long term. Continuity in the development of the business and its distinctive corporate culture as a family-owned business will therefore be combined with the best practices of a public company. Commerzbank AG and BankM - representative of flatex Bank AG - have been appointed to act as joint bookrunners and joint lead managers for the envisaged IPO.

For a safer world
Frequentis stands for solutions for a safer world. The company is an international supplier of communication and information systems for control centres for safety-critical applications. Custom-tailored control centre solutions are developed and marketed through its the Air Traffic Management segment (civil and military air traffic control) and the Public Safety & Transport segment (police forces, fire brigades, emergency rescue services, shipping and railways). With an estimated market share of around 30%, Frequentis is the global market leader in voice communication systems for air traffic control. Its systems are used by air traffic controllers, operators and dispatchers at more than 25,000 workstations. As of 31 December 2018, Frequentis Group had c. 1,850 employees around the world.
In 2018, Frequentis generated an operating income of EUR 293.9 million and EBIT of EUR 15.6 million. As of 31 December 2018, the order backlog of secured contracts totalled EUR 355.2 million.

30-year track record of profitability in a growing market
Secure communication is becoming increasingly important in our digitalised world. Frequentis operates in highly specialised areas of the global transport and safety infrastructure markets, where there is sustained demand for technological optimisation and a growing need for investment. Key growth drivers are increasing mobility, digitalisation and rising safety and security requirements. The aviation sector is facing mounting pressure to operate efficiently, railways and shipping are becoming more important worldwide, and new technologies such as drones are placing new demands on control centres.

The safety-critical nature of this business is reflected in exceptionally high demands and requires a deep understanding of how customers work. Frequentis' success is based on the trust that has evolved through its long-term customer relationships. Today, the company has a global sales network spanning around 50 countries and maintains continuous business relations with more than 500 customers at public authorities, organisations and companies involved in safety-critical operations. Around 90% of orders come from established customers. Using and extending Frequentis' installed base business paves the way for sustained revenue growth and profitability. Between 2016 and 2018, the total operating performance of the company increased by on average 7.9% per year.

Innovation is the basis for long-lasting market success
Frequentis focuses on innovative capability: it makes modern technologies usable for safety-critical control centres. Current examples are the use of the LTE mobile communications standard in safety-critical applications, with increased bandwidths enabling a new generation of control centres. Frequentis has received numerous awards for its innovative solutions. To make sure it continues to set standards in the future, the company invested around 14% of revenues in research & development in 2018.

From its origins as a voice communications specialist for the air traffic control sector, Frequentis has transformed into a global leader in various safety-critical communication and information systems. In the coming years, it aims to extend its product portfolio through organic and external growth. The planned IPO is the next logical step towards this.

About Frequentis AG
The Austrian company Frequentis headquartered in Vienna is an international supplier of communication and information systems for control centres with safety-critical tasks. Such 'control centre solutions' are developed and marketed by Frequentis in the business sectors Air Traffic Management (civil and military air traffic control, air defence) and Public Safety & Transport (the police, fire brigade, ambulance services, shipping, railways). Frequentis operates a worldwide network of branches, subsidiaries and local representatives in more than 50 countries. Products and solutions from Frequentis can be found in over 25,000 working positions and in about 140 countries. Founded in 1947, Frequentis is, by its own estimation, the global market leader in voice communication systems for air traffic control with a market share of around 30%. Moreover, the Frequentis Group's systems are globally leading in AIM (aeronautical information management) and aeronautical message handling systems, as well as in GSM-R systems in the field of Public Transport. For further information please see https://www.frequentis.com .

Contacts
Brigitte Gschiegl, Director of Corporate Communications, Frequentis AG
Email: brigitte.gschiegl@frequentis.com, phone: +43 1 81150-1301

Legal notice
This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities. Any such offer will be made solely on the basis of the securities prospectus to be published as approved by the Finanzmarktaufsichtsbehörde (FMA). The information legally required to be provided to investors is contained only in the securities prospectus. The securities prospectus will be available free of charge on the internet at the website of the issuer (www.frequentis.com and during normal business hours at the issuer, on a date to be determined.

The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act") or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in the United States of America. The securities have not been and will not be registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. The issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the securities in the United States of America.

This publication is only addressed to and directed at persons in member states of the European Economic Area (other than Germany and Austria) who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended) ("Qualified Investors"). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at, Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this publication relates is only available to and will only be engaged in with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors. Any other persons who receive this publication in the European Economic Area (other than Germany and Austria) should not rely on or act upon it.

This publication is not an offer of securities for sale in Canada, Japan or Australia.

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Emitter:	Frequentis AG Innovationsstraße 1 1100 Wien Austria
Contact Person:	Mag. Brigitte Gschiegl
Phone:	+431811501301
E-Mail:	brigitte.gschiegl@frequentis.com
Website:	www.frequentis.com
ISIN(s):	- (Share)
Stock Exchange(s):	-