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2016-05-09

KMX Holding Oy: Kamux is planning an initial public offering and listing on Nasdaq Helsinki

PRESS RELEASE May 9, 2016

Not for publication, distribution or release, in whole or in part, directly or
indirectly, in or into the United States, Australia, Canada, Hong Kong,
Japan, New Zealand, South Africa or Singapore.

Kamux is planning an initial public offering and listing on Nasdaq Helsinki

KMX Holding Oy ("Kamux" or the "company") is planning an initial public
offering ("IPO") and listing of its shares on Nasdaq Helsinki Ltd ("Nasdaq
Helsinki").

Kamux is a retail chain specializing in the sale of used cars and related
integrated services that has grown rapidly and operates in Finland, Sweden
and Germany. Kamux's business is based on professional procurement and sale
of used cars, low fixed costs, rapid inventory turnover and sales of
integrated services. In 2015, Kamux's revenue was EUR 310 million, growing by
44.2 percent from 2014. The company's target is to reach revenue of at least
EUR 600 million in 2018.

Kamux's vision is to be the leading retail chain in Europe specializing in the
sale of used cars. Kamux's customer promise is to offer used cars at
attractive prices, act as a reliable partner to its customers and offer the
best customer service in the market. The objective of the contemplated IPO is
to support Kamux's growth strategy and international expansion by increasing
Kamux's visibility in Finland and abroad, which is expected to increase
Kamux's recognition and trust in Kamux among the public and cooperation
partners and as an employer. The IPO is expected to consist of both a primary
offering by the company and a secondary offering by certain shareholders of
the company. In connection with the contemplated IPO, the aim is to raise
approximately EUR 20 million of new equity in a primary offering, which would
be used to support Kamux's growth strategy and internationalization.

CEO and founder Juha Kalliokoski:

"Kamux is focusing solely on the sale of used cars and related integrated
services. Kamux has a leading position in Finland in used car sales and is
among the ten largest used car retailers in Sweden. Our vision is to be the
leading retail chain in Europe specializing in the sale of used cars. Kamux's
strong growth has been enabled by our way of doing business, our committed
personnel and the combination of our digital presence and our showrooms. The
market offers excellent growth opportunities and we believe that an IPO would
further strengthen Kamux's growth strategy."

Chairman of the Board Matti Virtanen:

"Kamux has renewed the used car business to meet consumer needs. Since the
foundation, the company's management has recognized a market opportunity and
has over the past twelve years built a retail concept, which has growth
potential in both Finland and the European markets. The profitable organic
growth indicates a strong market position and trust among consumers. The
primary offering would strengthen the company's balance sheet to support
profitable growth also in the future. We believe that this is the right time
to list the company on the stock exchange and offer new shareholders an
opportunity to become part of the company's future development."

About Kamux

Kamux is a retail chain specializing in the sale of used cars and related
integrated services that has grown rapidly. The first Kamux car showroom
started its operations in 2003 in Hämeenlinna, Finland and the company
currently has 33 showrooms in Finland, eight in Sweden and it opened its
first showroom in Germany in December 2015. In addition, Kamux will open a
new showroom in both Finland and Sweden during May 2016. Since its
foundation, the company has sold more than 110,000 used cars. In 2015, Kamux
sold 28,515 cars, its revenue was EUR 310 million and adjusted EBIT[1]was EUR
16 million, resulting in an adjusted EBIT margin1of 5.2 percent, and it
employed 271 FTEs on average.[2]

Kamux's business is based on professional procurement and sale of used cars,
low fixed costs, rapid inventory turnover and sales of integrated services.
Kamux's business model makes it possible to offer affordable used cars and
the aim of the company is to continuously develop its operations to better
address customer needs. In accordance with its business model, Kamux also
offers its customers integrated services related with car sales, enabling it
to serve its customers more comprehensively. Kamux offers its customers
financing products from third-party service providers at all of its car
showrooms in Finland, Sweden and Germany. In addition, Kamux offers insurance
products and a liability extension, Kamux Plus, to cover car repair costs in
Finland and Sweden. A key component of Kamux's customer service concept in
Finland and Sweden is the delivery of the purchased car to a location agreed
with the customer and, if needed, the simultaneous pick-up of a possible
trade-in car. In 2015, approximately 26 percent of the cars sold by Kamux
were cross-sold through another Kamux showroom.

Kamux's strengths

Kamux considers the following as its strengths:

* Large and historically stable used car retail market where the offering and
customer service of the traditional sales channels do not meet expectations

* Professional business model focused on selling used cars * Professional
procurement and sale of used cars * Rapid inventory turnover * Low fixed
costs * Profitable integrated services
* Strong and profitable organic growth combined with future growth prospects
* CRM/ERP system driving Kamux's processes
* Experienced, skilled and motivated management and personnel

Kamux's strategy

Kamux's strategic focus areas include continuing the profitable growth by
increasing market shares in the markets in which the Kamux currently
operates, improving profitability, offering an excellent customer experience,
and personnel participation and motivation.

Kamux believes that its relatively low market shares in its fragmented markets
offer growth opportunities. The size of Kamux's markets also indicate strong
growth potential; in Finland approximately 0.6 million used cars are sold
each year, in 2015 approximately 1.2 million used cars were sold in Sweden
and 7.3 million in Germany.[3]

The cornerstones of Kamux's growth strategy are opening new car showrooms and
increasing sales at existing car showrooms and growing its digital footprint
by, among others, opening an online store in Finland and increasing traffic
to Kamux's websites through targeted marketing.

Kamux's financial targets

The Board of Directors of the company has established the following financial
targets for Kamux:

* Increasing revenue to at least EUR 600 million in 2018;
* EBIT margin of 5-6 percent in 2018; and
* Distribute dividends of at least 30 percent of the profit for the year *
The Board of Directors of the company annually estimates the balance
between dividends to be distributed and funds to be used for Kamux's growth
and based on this assessment, makes a proposal on the amount of dividends
to be distributed, which may for any single year differ significantly from
the target level set in the dividend policy. In the next few years, Kamux's
primary target is to grow in accordance with its strategy.

Kamux's financial development and key ratios[4]

Kamux's revenue has grown at a compound annual growth rate (CAGR) of 42.8
percent from 2013 to 2015 and at 42.6 percent from 2007 to 2012.[5]The
company's adjusted EBIT[6]in 2015 was EUR 16 million, corresponding to an
adjusted EBIT margin6of 5.2 percent.

------------------------------------------------------------------------------------------------
| |
| EUR in millions, unless stated otherwise[7] 1-3/2016 1-3/2015 2015 2014 2013 |
| Income statement |
| Revenue 97.0 68.5 309.9 215.0 152.1 |
| Revenue growth, % 41.6% n.a. 44.2% 41.3% n.a. |
| Same store sales growth, % 26.7% 12.9% 14.1% 15.8% n.a. |
| Adjusted EBIT[8] 4.5 3.6 16.0 10.5 7.8 |
| Adjusted EBIT8margin, % 4.6% 5.3% 5.2% 4.9% 5.1% |
| |
| Balance sheet |
| Net debt 23.3 17.6 24.4 20.1 22.3 |
| Total assets 70.7 43.9 58.7 40.6 34.0 |
| |
| Other information |
| Number of showrooms at the end of the period 42 35 41 35 24 |
| Average number of FTEs 301 212 271 203 146 |
| Number of sold cars 8,518 6,375 28,515 20,273 14,200 |
| Investments 0.1 0.1 0.9 1.2 3.5 |
| |
| KPIs |
| Return on equity, % 59.9% n.a. 67.7% 75.3% 108.4% |
| Return on invested capital (ROIC), % 28.4% n.a. 30.6% 27.4% 24.0% |
| Equity ratio, % 32.7% 35.5% 36.3% 31.5% 17.2% |
| Gearing, % 100.8% 113.2% 114.2% 157.1% 381.2% |
| |
| Per share information |
| Earnings per share (EPS), undiluted, EUR 0.07 0.07 0.30 0.18 0.12 |
------------------------------------------------------------------------------------------------
Information on the contemplated IPO

The contemplated IPO is expected to consist of both a primary offering by the
company and a secondary offering by certain shareholders of the company,
including the main shareholder Intera Fund II Ky. The company and certain
current shareholders would be subject to customary lock-up arrangements in
connection with the IPO. Intera Fund II Ky would remain a significant
shareholder after the IPO. The primary offering is expected to raise
approximately EUR 20 million of new equity, which will be used to support the
company's growth strategy and inter...

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