MERSEN (EPA:MRN) - Mersen reports first-quarter 2021 sales - Strong growth on sustainable development markets

Transparency directive : regulatory news

28/04/2021 17:40

PRESS RELEASE

MERSEN REPORTS FIRST-QUARTER 2021 SALES OF EUR220 MILLION

STRONG GROWTH ON SUSTAINABLE DEVELOPMENT MARKETS

* SALES AT EUR220 MILLION, STABLE ON AN ORGANIC BASIS VERSUS FIRST-QUARTER 2020
* GROWTH OF MORE THAN 10% ON SUSTAINABLE DEVELOPMENT MARKETS
* STRONG 9% GROWTH IN THE ASIA-PACIFIC REGION
* 2021 GUIDANCE CONFIRMED

PARIS, APRIL 29, 2021 - Mersen (Euronext FR0000039620 - MRN), a global expert
in electrical power and advanced materials, has reported consolidated sales of
EUR220 million for the first quarter of 2021. This represents a 2.4% drop in
sales compared with the first quarter of 2020 and takes into account a negative
currency effect and the integration of companies recently acquired.

Sustainable development markets reported a growth of more than 10 % driven by
wind power and especially by electronics, while the process industries posted a
moderate decline. These solid performances were mitigated by the continued
sharp decline in aeronautics at the beginning of the year and the more moderate
decrease of chemicals.

In millions of euros        Q1 2021          Q1 2020

Advanced Materials            122.3            128.8
Electrical Power               97.4             96.4
Europe                         79.1             79.4
Asia-Pacific                   65.1               61
North America                  68.2             77.5
Rest of the World               7.3              7.3
Group                         219.7            225.2

Organic        Scope           Currency         Reported
growth         effect           effect           growth

-2.5%            1.2%            -3.8%            -5.0%
3.4%            1.8%            -4.1%             1.0%
-3.2%            3.5%            -0.7%            -0.4%
9.4%            0.1%            -2.6%             6.6%
-5.3%            0.6%            -7.5%           -11.9%
12.6%            0.8%           -12.5%            -0.6%
0.0%            1.5%            -3.9%            -2.4%

Unaudited figures
See glossary

Mersen's Chief Executive Officer, Luc Themelin, said: "Our good first-quarter
performance once again validates our strategic decision to position ourselves
in sustainable development markets, which saw fast- paced growth, led by
renewable energies and semiconductors. Our recent alliance with Autoliv, a
leader in automotive safety systems, gives us an ideal position on the electric
vehicle market. Overall, business has been upbeat since the beginning of March,
with a good level of new orders, and I reiterate my confidence in our ability
to deliver growth in 2021."

PERFORMANCE BY SEGMENT

Advanced Materials sales amounted to EUR122 million in the first quarter of
2021, down 2.5% on an organic basis in comparison with the same period last
year. The renewable energies and semiconductor markets reported vigorous
growth. As expected due to the comparable base, the aeronautics market is down
sharply, by almost 40%, while the decline was less pronounced in the chemicals
and process industries.

Electrical Power sales amounted to EUR97 million for the quarter, up over 3% on
an organic basis. Renewable energies and power electronics saw sustained
growth, whereas the slowdown in traffic continued to affect the rail market.
Electrical distribution was up slightly compared to a fairly strong first-
quarter 2020.

PERFORMANCE BY REGION

In Europe, the situation improved considerably in March in most countries,
thanks to strong momentum on certain markets such as wind power, stationary
energy storage and electric vehicles. However, Covid- related shutdowns
continued to take a heavy toll on the aeronautics industry.

In Asia, China reported growth of over 13% for the quarter, led by the solar
power and electronics markets. India also delivered strong growth of above 25%,
benefiting from a favorable comparable base. The rail sector was upbeat across
the region, whereas chemicals retreated following the high level of invoicing
in 2020.

Lastly, North America continued to experience a slowdown in process industries,
particularly in the Advanced Materials segment. Aeronautics also contracted
sharply. In contrast, the electronics market remained bullish, led by SiC
semiconductors.

JOINT-COLLABORATION WITH AUTOLIV

On April 20, 2021, Mersen and Autoliv, the worldwide leader in automotive
safety systems, announced that they are embarking on a multi-year alliance to
develop devices that will make electric vehicles safer. The alliance will
produce disconnect devices that utilize Autoliv's proven pyrotechnical Safety
Switch technology and Mersen's fuse hybridization concepts.

GUIDANCE CONFIRMED

Based on its first-quarter performance, the Group is confident that it will
achieve its objectives for the year, buoyed by its positions on sustainable
development markets. Mersen is confirming its objectives for 2021 as announced
on March 11, 2021, i.e., organic sales growth of between 2% and 6% and an
operating margin before non-recurring items of between 8% and 8.8% of sales.

GLOSSARY

Organic 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.

* In February 2020, the Group finalized the acquisition of GAB Neumann, a
  specialist in the design, manufacture and sale of graphite and silicon
  carbide (SiC) heat exchangers for the chemicals market. It has been
  consolidated since March 1, 2020.
* The acquisition of the insulation business of American company Americarb, a
  long-standing player in carbon fiber insulation, was finalized during the
  summer of 2020. It has been consolidated since September 1, 2020.
* Mersen acquired the Hager group's stake in Fusetech, a manufacturer of
  industrial fuses based in Kaposvar, Hungary. Fusetech has been consolidated
  since January 1, 2021.

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.

Sustainable development markets: mainly renewable energies, power electronics
and semiconductors, as well as the rail and electric vehicle markets.

FINANCIAL CALENDAR: First-half 2021 results: July 30, 2021 before trading.

ABOUT MERSEN

Mersen is a global expert in electrical specialties and advanced materials for
high-tech industries. With more than 50 industrial sites and 16 R&D centers in
35 countries around the world, Mersen develops custom-built solutions and
delivers key products for clients in order to meet the new technological
challenges shaping tomorrow's world. For over 130 years, Mersen has focused
tirelessly on innovation to accompany its clients and meet their needs. Be it
in wind power, solar power, electronics, electric vehicles, aeronautics, space
or countless other sectors, wherever technology is progressing, you will always
find a bit of Mersen.

MERSEN IS LISTED ON EURONEXT PARIS - COMPARTMENT B

INVESTOR AND ANALYST CONTACT
Véronique Boca
Mersen
Tél. + 33 (0) 1 46 91 54 40
Email : dri@mersen.com

MEDIA CONTACT
Guillaume Maujean/Xavier Mas
Brunswick
Tél. +33 (0)1 53 96 83 83
Email : mersen@brunswickgroup.com

WWW.MERSEN.COM

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MERSEN (EPA:MRN) - Mersen reports first-quarter 2021 sales - Strong growth on sustainable development markets

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