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IZO-BLOCK S.A. has completed the Book Building Process

IZO-BLOCK S.A. has fixed the issue price of the D-series shares in the public offer at PLN 160 per share.

The offer includes 267,000 shares of the new D-series issue as part of the public offering. 253 650 shares will be offered in the institutional investors tranche, while 13,350 shares will be included in the tranche for individual ones. From now on, individual investors are able to subscribe for the shares (until July 5) and institutional ones (until July 6). The Company assumes that the first listing of rights to D-series shares at the WSE will be July 22, 2016.

Assuming that subscriptions will be made for all the offered shares, the Company will receive gross resources in the amount of approx. PLN 43 million which will be used for the partial financing of the transaction of acquiring 100% shares at the German SSW PearlFoam. The remaining part will be covered by resources from an acquisition credit in the maximum amount of EUR 11,000,421.36.

The investors appreciated the strategy of our Company by declaring the willingness to take up shares. This is important considering the very difficult market conditions we are facing. We are nearing our goal, i.e. the acquisition of SSW PearlFoam. This will consolidate our position in Europe and will allow us to act on a fully global scale, which our customers are eagerly waiting for. – comments Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

More information about the Company can be found at: www.izo-blok.pl and www.spo.izo-blok.pl

PROPRIETARY CLAIM

The hereby publication is of a promotional nature only and in no way should serve as basis for making decisions regarding the acquisition of shares of IZO-BLOK S.A. (“the Company”), The only binding document containing information about the Company and the public offering of the Company shares in Poland (“the Offer”) is the prospectus (“Prospectus”) prepared in relation to the Offer and the admission to trading of Company shares at the Warsaw Stock Exchange in Warsaw. The Prospectus was confirmed on 6/17/2016 by the Polish Financial Supervision Authority, i.e. an authority supervising the capital market in Poland. The Prospectus is available from 6/21/2016 in electronic form at the websites: of the Company (www.izo-blok.pl and www.spo.izo-blok.pl) and of the Lead Manager (www.dmbzwbk.pl). Some data included in this publication may pertain to future events and may, therefore, be subject to change or updating. This publication pertains to a public offering conducted solely in the Republic of Poland and is not meant for sharing, directly or indirectly, in part or in whole, in the United States of America, Australia, Canada, Japan, nor in any other jurisdiction where this would be considered a breach of suitable legal provisions.

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IZO-BLOK gets closer and closer to takeover SSW PearlFoam. An acquisition loan granted

IZO-BLOK S.A. – ranking 2nd in Europe among EPP (expanded polypropylene) processing companies and manufacturers of EPP elements, whose nearly 90% of sales revenue is generated by the automotive industry – signed a credit agreement with BZWBK S.A. The amount of acquisition credit intended to cover the acquisition of 100% shares at the German company SSW PearlFoam will equal max. EUR 11,000,421.36, which constitutes approx. 50% of resources required to pay for the acquisition. The remaining part will be covered by funds from the issue of shares. The Company started its public offering including the issue of no less than 1 and no more than 300 ths new shares.

The credit will be based on a variable interest rate calculated per annum. The amount of the interest rate will equal a EURIBOR variable interest rate for 1-month interbank credits, increased by the bank’s margin.

We are proceeding according to plan. Signing a credit agreement for the acquisition of SSW PearlFoam is an important step. The next one will involve the successful issuing of shares. We are in the process of creating an order book. We are starting the subscriptions on July 1. The successful acquisition of our German competitor – SSW PearlFoam – will open up possibilities of entering the Asian market. We will have our own material which will give us considerable independence. We will also have an established position among OEMs and TIER1 or TIER2 companies. Our customers are already pushing us to appear there faster. They need a global and reliable supplier. IZO-BLOK can provide that. – says Przemysław Skrzydlak, Chairman and main shareholder of IZO-BLOK S.A.

Subscription for shares for individual investors will be accepted on July 1–5, 2016 in selected posts of DM BZWBK S.A. and selected members of the distribution consortium: BM Alior Bank S.A., DM BOŚ S.A., CDM Pekao S.A. and DM Pekao S.A. A list of posts accepting subscription for D-series shares of IZO-BLOK was published in the form of an update announcement to the Prospectus at www.dmbzwbk.pl, as well as at the Issuer’s websites – www.izo-blok.pl and www.spo.izo-blok.pl.

MOST IMPORTANT INFORMATION ABOUT THE PUBLIC OFFERING OF IZO-BLOK S.A.:

• The public offering includes from 1 to 300,000 D-series bearer shares with a face value of PLN 10.00 each.
• The offered new D-series shares will be split into a tranche for individual investors and a tranche for institutional investors.
• The biggest shareholders of the Company, i.e. the Company’s Chairman of the Board Przemysław Skrzydlak and Andrzej Kwiatkowski (member of the Supervisory Board) as well as the Company have committed to a 360-day lock-up occurring after the day of approving the Prospectus.
• After finishing the public offering, assuming sales of the maximum anticipated D-series shares, new shareholders will assume 23.08% share in the initial capital and 17.42% share of votes at the Annual Meeting of Shareholders.

PUBLIC OFFERING SCHEDULE

STRATEGY

The strategic purpose for the planned IZO-BLOK Capital Group, assuming the successful acquisition of SSW PearlFoam, is to create a leading European and world Company specializing in the processing of expanded plastics with special consideration of expanded polypropylene (EPP). The increase of the Group’s value will be possible thanks to maintaining full flexibility, quickness of acting and high quality standards which, as indicated by the current experience of both companies, allow for fulfilling customer demands and requirements, thus building solid foundations for mutually beneficial and long-term relations.

FINANCIAL RESULTS

Selected financial results of IZO-BLOK in 2005/2006 – 2014/2015 are presented in the following table and graph:

We are a dynamically developing EPP processing Company and manufacturer of EPP elements, with over 90% of exposure to the European market. Since 2001, we have been systematically increasing our market share in Europe by working out better profit. Our dynamic development is due especially to the consistent implementation of our strategy. We operate on a market with big potential, both within the EU as well as globally. The increasing demand for EPP elements in a global automotive industry means great development opportunity for us. We want to use this opportunity as much as possible, hence our decision to acquire our largest competitor – the German SSW PearlFoam. Successful execution of this acquisition will not only allow us to increase our share on the European EPP market for the industry, but it will also serve as a good stronghold for entering the Asian market. This is what our customers expect already today – says Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

That is why I can boldly say that the resources obtained from the issuing of new shares will allow for a more dynamic growth. We believe that the Company can be attractive for investors. Thanks to more than 15 years of experience on the EPP market in the automotive industry, a diverse portfolio of prestigious customers and systematic increase of the scale of operations in various market conditions, we have a clearly defined growth path. We set goals and execute them consistently – adds Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

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IZO-BLOCK S.A. brings out The Prospectus and launches the public offering

TODAY, THE COMPANY has published The Prospectus and launched a Public Offering covering sales of not less than 1 and not more than 300 thousand new shares. IZO-BLOCK S.A ranking 2nd in Europe among EPP (expanded polypropylene) processors and manufacturers of EPP elements, whose nearly 90% of sales revenue is generated by the automotive industry.

The role of the WBK Bank of West Bank is to offer the Public Offering.

The legal adviser is the office of Olesiński and Wspolnica Sp. k. (limited partnership).

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IZO-BLOK gets order from Johnson Controls – total order value over 12,5 mln PLN

IZO-BLOK has got a new order from Johnson Controls – the global leader in a comprehensive supply of components for the world’s largest automotive companies.The total value of contracts agreed with the trader from Burscheid was over 2.9 million EURO (over 12,5 millionPLN)

Apart from Johnson Controls, for many years IZO-BLOK has been cooperating with other global TIER1 and TIER2 entities, i.e. Yanfeng Automotive Interiors, Faurecia, Lear or HP Group. In September last year, IZO-BLOK received the international Automotive Experience Seating Supplier Performance Award from Johnson Controls. At the European market level, the Company was awarded by Johnson Controls four times; however, last year’s silver is a distinction for IZO-BLOK on a world scale.

The main customers of the Company include businesses related to the automotive industry (they make over 90% of annual revenue), logistics and protective packaging. The Company is planning the acquisition of its largest competitor – SSW PearlFoam GmbH. The transaction will be financed from the issuance of D-series shares. On June 17, the Financial Supervision Authority approved the Prospectus of IZO-BLOK S.A. The publication of the Prospectus is planned for June 21, 2016.

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The Prospectus of IZO-BLOCK S.A. have been approved by Financial Supervision Authority (Poland)

Today The prospectus of IZO-BLOCK S.A. have been approved by Financial Supervision Authority (Poland). The company is one of Europe’s largest EPP  processor (expanded polypropylene) ) and EPP component manufacturer, where 90% of revenue comes from automotive industry. The Company is going to run a public offering at the turn of June and July this year. 300 thousand of new shares are tend to be issued. Funds from issue of new shares the are intended to be mainly used for part-financing and purchasing of 100% shares of German Business SSW PearlFoam GmbH – THE European EPP market leader in the automotive industry.

The publication of The Prospectus IZO-BLOCK S.A. is scheduled for 21 June 2016.

The prospectus will be available on the following websites: www.izo-blok.pl and www.spo.izo-blok.pl and www.dmbzwbk.pl

The role of the WBK Bank of West Bank is to offer the Public Offering.

The legal adviser is the office of Olesiński and Wspolnica Sp. k. (limited partnership)

We are pleased to approve our prospectus and are planning to start public offering. We have a clear path to development and we do know where are we going to. Takeover of German company SSW PearlFoam let us not only be a leader on the European EPP processing market in automotive industry but also gets us ready and well prepared for getting a foothold of the Asian market. Having our own raw material, this plan is possible to be done in a fairly short time – said Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

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IZO-BLOCK with over 10 million PLN worth order from Jaguar Land Rover

IZO-BLOK gets a new order from Jaguar Land Rover. The company has received an order from a UK contractor to supply automotive parts from EPP. The contract value is almost EUR 2.5 million (over PLN 10 million).

The expected kick-off date with deliveries for the Coventry company (UK) was set at December 2017. Forecasted lead time is for a period of 5 years.

Moreover the company cooperates with clients such as Audi, Volkswagen, Ford, Skoda and Seat in its portfolio, as well as major sub-suppliers of automotive parts: Yanfeng Automotive Interior, Johnson Controls Farecia, Lear and HP Group.

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IZO-BLOK meets investors on Wall Street

IZO-BLOK will meet with investors on June 3 and 4 during the 20th Wall Street conference in Karpacz. In April the Chorzów manufacturer and exporter of EPP fittings mainly for the automotive industry submitted a prospectus to the Financial Supervision Authority. The public offering of shares is planned at the turn of Q2 and Q3 of this year. This way, IZO-BLOK plans to finance part of the acquisition of its main market competitor – the German company SSW PearlFoam.

We are meeting with investors as part of the Shareholding Forum planned for June 3 afternoon. We will participate in Saturday’s discussion panel devoted to the possibilities of Company development in the situation of variable market conditions. We are at the stage of planning individual meetings. I invite people to see our presentations, to talk and exchange opinions. – says Przemysław Skrzydlak, Chairman of IZO-BLOK.

All this points to another record-breaking export in the automotive industry from Poland. In February the value of automotive export from Poland was nearly EUR 1.98 billion, which is 12.69% more compared to the same month in 2015. Our Company has a strong presence on this market. 95% of our customers come from the automotive industry; we operate as an exporter 90% of the time, cooperating with global players. After the acquisition of SSW PearlFoam, we will become a leader with a 25% share on the EPP market. – comments Przemysław Skrzydlak.

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THE PROSPECTUS has been submitted BY THE IZO-BLOCK to the Financial Supervision Authority

IZO-BLOK has submitted a prospectus to the Financial Supervision Authority. The Company plans to conduct a public offering of shares at the turn of Q2 and Q3. The resources acquired by the Company will be used to partially finance the acquisition of 100% shares at the German company SSW PearlFoam

Because of the planned acquisition of IZO-BLOK’s main competitor on the market – the German company SSW PearlFoam – the Company plans to issue (approx.) 300 ths shares. The Lead Manager is BZ WBK S.A., while the role of legal advisor is played by the Olesiński&Wspólnicy law firm. The final deadline of the public offering depends on the approval of the prospectus by the Financial Supervision Authority.

The submission of a prospectus to the Financial Supervision Authority. means that we are entering a crucial stage in the preparation of the public offer of shares. The resources thus obtained and the resources from debt financing will be given to finalize the acquisition of shares in SSW PeralFoams. We want to grow. We have far-reaching plans. This acquisition is a milestone in our long-term business strategy. I hope investors will appreciate the possibility of investing in the shares of IZO-BLOCK. we have very good financial results, we are increasing our market share – said Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

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Eagles of Export 2016 goes to IZO-BLOK

IZO-BLOK received the 2016 Regional Eagles of Export award in the Best Exporter category. The competition is organized by the Rzeczpospolita newspaper.

The export potential of the Polish economy is huge. Our Company has been operating on the European market as an exporter since its beginning. Step by step, we are strengthening our position. After closing the transaction of acquiring the German company SSW PearlFoam which is our main competitor at the moment, we will become the market’s leader. However, our plans do not end with this. This is our first, very serious step towards global expansion. This award is important to us because it shows that consistent actions lead to results. – comments Przemysław Skrzydlak, CEO of the Board of IZO-BLOK S.A.

The Regional Eagles of Export competition, organized by the Rzeczpospolita newspaper, is part of the Export Development Program. The program is an initiative of Bank Zachodni WBK, executed together with contents partners. These include: Google, the Export Credit Insurance Corporation, the Bisnode credit bureau, the Crido Taxand consulting firm and the KPMG Company. The Export Development Program is accompanied also by the ministries of foreign affairs and development. The purpose of the program is to support Polish exporters in doing international business. The competition recognizes and awards regional export leaders.

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IZO-BLOCK gets contract from AUDI AG for PLN 30 million PLN

IZO-BLOK has been given a new order from AUDI AG. The Company has received an order for the supply of EPP car parts from the German contractor. The value of the contract is over EUR 7 million (over PLN 30 million).

The estimated kick-off date for the Ingolstadt (DE) company is October 2017. and the lead time is forecasted for 5 years. Next to the German AUDI, IZO-BLOK’s portfolio includes customers such as Jaguar Land Rover, Volkswagen, Ford, Skoda or Seat, as well as the biggest sub-suppliers of parts for the automotive industry: Yanfeng Automotive Interiors, Johnson Controls Faurecia, Lear or HP Group.

This is good news not only for us, but also for our shareholders. We are very restrictive in implementing our declared development strategy. The commitment to quality of service and business relationships is a key to success – said Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

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IZO-BLOK shows the best results in the Company’s history

AFTER the third quarter of the Financial Year 2015/2016, THE TOTAL sales revenue increased by 15.3% compared to the corresponding period of the previous year. EBITDA was up 48,8% compared to the same period of the previous year and amounted to 14,017 thousand PLN. The profit on sales after the third quarter of 2015/2016 was PLN 11.163 thousand PLN and rose by 38.1%. While the increase in costs from operating activity rose 11.6 percent. Such good results were undoubtedly influenced by: higher revenues and gross margin on sales and further optimization of production processes

The operational profit was shaped at the level of PLN 11,511 ths and increased by 50.7% compared to Q3 from the previous year. Meanwhile, recognizing negative valuation effects of derivative financial instruments in the total amount of PLN 6,749 ths (reversing valuation effects as of 4/30/3015 and recognizing valuation effects as of 1/31/2016) had a direct impact on the decrease of net income by 66.8% compared to Q3 for the previous Financial Year.

The financial figures for the three quarters of the 2015/2016 Financial Year show our best results until now, what makes us happy ans I hope our investors are satisfied as well. Takeover of the German company SSW PearlFoam will give us a leading role on the European EPP processing market for the automotive industry – says Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

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IZO-BLOCK has signed a contract with the SSW Industries Fund

The Board of IZO-BLOK S.A. signed a contract with SSW Industries for the acquisition of 100% shares in the German company SSW PearlFoam GmbH. The transaction amount will equal EUR 21.5 million.

The acquisition value of shares at SSW PearlFoam is EUR 21.5 million. The purchase of the German company will probably be financed from two sources: a bank credit and issue of shares. The parties of the transaction have granted mutual bank guarantees regarding securing liability and payment.

The acquisition of SSW PearlFoam brings undeniable and absolute synergies in the technological, logistic and sales areas. This will strengthen our position both on the European as well as global market. Today we have closed an important stage in the development of our Company. – says Przemysław Skrzydlak, CEO of IZO-BLOK S.A.

SSW Industries granted IZO-BLOK the right to fully and solely use the name SSW PearlFoam for a period of at least 12 months. The transaction will be considered closed and IZO-BLOK will take over all rights to the German entity after payment of the share acquisition price.

The remaining details of the transaction, pertaining to conditions of renouncing the contract and contractual penalties, have been described in RB 5/2016.