MERSEN (EPA:MRN) - Mersen: Strong growth in first-quarter 2019; sales up +15% - like-for-like growth of 8%

Transparency directive : regulatory news

24/04/2019 17:40

PRESS RELEASE

MERSEN: STRONG GROWTH IN FIRST-QUARTER 2019; SALES UP +15% - LIKE-FOR-LIKE
GROWTH OF 8%

- STRONG START TO THE YEAR IN LINE WITH EXPECTATIONS
- IMPORTANT DELIVERIES THIS QUARTER FOR THE CHEMICALS MARKET
- CONTRIBUTION OF MORE THAN EUR8 MILLION FROM COMPANIES ACQUIRED IN 2018
- 2019 OBJECTIVES CONFIRMED

PARIS, APRIL 24, 2019 - Mersen (Euronext FR0000039620 - MRN), a global expert
in electrical power and advanced materials, has reported consolidated sales of
EUR240 million for the first quarter of 2019.

Luc Themelin, Mersen's Chief Executive Officer, commented: "Following on from
2018, Mersen continues to capitalize in full on a strong market position and
generate robust growth despite a high basis of comparison. Growth was driven by
momentum in the semiconductor, transportation and process industries markets
and by important deliveries for the chemicals market, as the Group once again
demonstrated its ability to efficiently meet demand."

LIKE-FOR-LIKE GROWTH OF MORE THAN 8% IN FIRST-QUARTER 2019 SALES

Mersen reported consolidated sales of EUR240 million for the first quarter of
2019, up 8.4% like for like. Including the companies acquired or formed in 2018
and a favorable currency effect linked primarily to the appreciation of the US
dollar, sales grew by 15.3% as reported.

In millions                          Like-for-like  Scope   Currency
Reported
of euros            Q1 2019  Q1 2018    growth      effect   effect    growth

Advanced Materials    139.3    116.0     16.6%        0.7%     2.3%     20.0%
Electrical Power      101.2     92.6     -1.8%        7.8%     3.4%      9.3%
Europe                 84.0     73.1      6.4%        9.2%    -0.5%     15.0%
Asia-Pacific           63.6     58.4      4.9%        1.3%     2.5%      8.9%
North America          83.7     69.6     11.4%        0.8%     7.2%     20.2%
Rest of the World       9.1      7.5     26.6%        0.8%    -4.5%     21.7%
Group                 240.5    208.6      8.4%        3.9%     2.8%     15.3%

Unaudited figures See glossary

Like-for-like sales in Advanced Materials rose by a steep 16.6% year on year to
end the quarter at EUR139 million. The chemicals market was particularly
dynamic, and the process industries, semiconductor and aeronautics markets were
also buoyant. As expected, the solar energy market contracted as a result of
the slowdown in installations in China.

Electrical Power sales increased 9.3% to at EUR101 million for the quarter,
driven by the contribution from companies acquired in 2018, particularly FTCap
and Idealec. Like-for-like growth was slightly negative on the back of lower
number of power electronics projects after a particularly strong period in
first quarter 2018. Electrical distribution in the United States was stable
compared to the previous year, while the electric vehicles market enjoyed good
momentum.

In Europe, growth was particularly robust in the chemicals and green
transportation (rail and electric vehicles) markets. In Asia, a brisk upward
trend in the chemicals and electronics markets offset the slowdown in solar
power. Lastly, growth in North America remained strong, thanks to the
electronics and process industries markets.

SUCCESSFUL PRIVATE PLACEMENT AT COMPETITIVE CONDITIONS

Mersen has successfully secured a seven-year Schuldschein private placement
loan for EUR130 million, at competitive conditions (fixed-rate tranche with a
coupon of 1.58%). This financing facility, placed with a pool of European and
Asian investors, has been subscribed by more than 200% of the initial
request.

This transaction extends the average maturity of the Group's financing
facilities to more than five years[1], allows for the repayment of a US private
placement tranche of EUR37 million due to mature in November 2019, and further
diversifies the Group's sources of funding. It demonstrates the support and
confidence of our financial partners in Mersen's financial strength and growth
strategy.

2019 OBJECTIVES CONFIRMED

The first quarter of 2019 met the Group's expectations of sustained, positive
momentum in Europe and North America. Mersen therefore confirms its objectives
announced on March 13, 2019 of like-for-like sales growth of between 2% and 5%
for an operating margin before non-recurring items of between 10.5% and 10.7%
(10.4% in 2018).

(1) Based on confirmed facilities used.

GLOSSARY

Like-for-like growth: determined by comparing sales for the year with sales for
the previous year, restated at the current year's exchange rate, excluding
acquisitions and/or disposals.

Scope effect: contribution from companies acquired in the year in relation to
sales for the year.

  - Idealec, a recognized designer and manufacturer of laminated bus bars, has
    been consolidated since April 1, 2018.
  - The acquisition of FTCap, a Germany-based company specializing in the
    development and production of capacitors, was finalized in July 2018. It
    has been consolidated since July 1, 2018.
  - Louisville Graphite Inc. (LGI), a company based in the United States which
    provides aftermarket and repair services, was acquired in July 2018. It has
    been consolidated since July 1, 2018.
  - The Mersen Galaxy joint venture in China has been consolidated since
    November 1, 2018. Currency effect: calculated by comparing sales for the
    previous year at the exchange rate of the previous year with sales for the
    previous year at the exchange rate of the current year.

FINANCIAL CALENDAR

First-half 2019 results: July 31, 2019 before market open

ABOUT MERSEN

A global expert in electrical power and advanced materials, Mersen designs
innovative solutions to address its clients' specific needs to enable them to
optimize their manufacturing performance in sectors such as energy,
electronics, transportation, chemicals & pharmaceuticals and process
industries.

Mersen, with its 6,900 employees working across 35 countries, recorded sales of
EUR879 million in 2018.

MERSEN IS LISTED ON EURONEXT PARIS - COMPARTMENT B

INVESTOR AND ANALYST CONTACT
Véronique Boca
Vice-President, Communication

Mersen
Tel.: +33 (0)1 46 91 54 40
Email: dri@mersen.com

MEDIA CONTACT
Stanislas Mulliez/Guillaume Granier

FTI Consulting Strategic Communications
Tel.: +33 (0)1 47 03 68 10
Email: stanislas.mulliez@fticonsulting.com /
guillaume.granier@fticonsulting.com

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MERSEN (EPA:MRN) - Mersen: Strong growth in first-quarter 2019; sales up +15% - like-for-like growth of 8%

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