MERSEN (EPA:MRN) - Capital Markets Day Mersen

Transparency directive : regulatory news

29/11/2018 07:00

PRESS RELEASE

                            CAPITAL MARKETS DAY 2018

      SUSTAINABLE DEVELOPMENT AT THE HEART OF MERSEN'S GROWTH STRATEGY

PARIS, NOVEMBER 29, 2018 - Mersen (Euronext FR0000039620 - MRN), a global
expert in electrical power and advanced materials, is today hosting its
Capital Markets Day in Paris to present its strategic focus on sustainable
development markets as a driver for Group growth.

The event is an opportunity for Mersen to present its strategy for profitable
growth on long-term buoyant markets, with more than half of the Group's
activities now geared towards sustainable development markets, from renewable
energies to semiconductors, power electronics, rail and e-mobility, water
treatment and energy efficient processes.

Presentations will focus on the following areas:

* Solar power in which Mersen is a key player across the entire photovoltaic
  value chain. In order to broaden its equipment offering on this promising
  market, the Group has announced a new joint venture with one of its
  historical partners in China, which is expected to generate sales of
  between EUR10 million and EUR20 million over the next five years.

* Energy storage, including the Group's solutions in stationary batteries for
  renewable energies and mobile batteries for green mobility. In the electric
  vehicle market, Mersen is capitalizing on strong demand from car
  manufacturers for fuses and bus bars, and growth may accelerate further in
  the medium term if the Group successfully completes the development of its
  hybrid fuse solution for high-power battery protection. Although it no
  longer meets the new specifications of the Volkswagen platform, the
  solution is currently being tested with four other leading car
  manufacturers.

* Mersen is also developing new customer solutions for even greater
  performance and efficiency. Its silicon carbide mirrors for laser
  applications enable a large number of sectors to enhance productivity and
  reduce electricity consumption. The Group is expected to invest between
  EUR3 million and EUR5 million over the next two years, in order to meet
  market demand.

* Mersen is also responding to the technical challenges in the manufacture of
  silicon carbide semiconductors. Thanks to its unique expertise in insulation
  materials and felt solutions, the Group has already benefited from the surge
  in the silicon carbide semiconductors segment, which now represents close to
  half of its semiconductor sales. To keep pace with the very strong outlook
  for the next five years, the Group will increase its production capacity at
  its Holytown site in Scotland and has set aside an investment envelope of
  between EUR25 million and EUR30 million for the next three years.

Consolidated sales on these four markets(1) is expected to increase to close to
EUR100 million in 2018, from EUR25 million five years ago. The Group's CAGR(2)
is expected to reach between 10% and 15%  over the next five years.

The Group has confirmed its forecasts of an increase of around 9% in
like-for-like sales and a recurring operating margin of around 10.4% of sales
in 2018. ROCE(3) is expected to come in at 11.5%.

Chief Executive Officer Luc Themelin said: "Optimizing the use of resources and
minimizing the impact of CO2 emissions on the world's climate are critical
challenges to which Mersen contributes by offering industry the best
technologies and tailored solutions. Our positioning in these buoyant markets
combined with our commitment to innovation and development alongside major
market players, mean Mersen can confidently expect to continue to enjoy dynamic
growth."

The presentations will be available at the end of the day under the Investors
section of the Group website at www.mersen.com.

(1) Solar power, energy storage, silicon carbide mirrors, SiC semiconductor
    manufacturing.
(2) CAGR: Compound Annual Growth Rate.
(3) ROCE: Return on Capital Employed (ratio of recurring operating income to
    average weighted capital employed).

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.

With 6,400 employees working across 35 countries, Mersen recorded sales of
EUR809 million in 2017.

MERSEN IS LISTED ON EURONEXT PARIS - COMPARTMENT B

INVESTOR AND ANALYST RELATIONS    MEDIA RELATIONS
Véronique Boca                    Stanislas Mulliez/Guillaume Granier
Vice-President, Communications
Mersen                            FTI Consulting Strategic Communications
Tel.: +33 (0)1 46 91 54 40        Tel.: +33 (0)1 47 03 68 10
Email: dri@mersen.com             Email:stanislas.mulliez@fticonsulting.com/
                                        guillaume.granier@fticonsulting.com

WWW.MERSEN.COM

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