MERSEN : 2013 sales and launch of the "Transform" plan

• 2013 sales of €739 million

• Targets confirmed for 2013 EBITDA margin and current operating margin

• One-off charges of €55 million in 2013

• Consolidation of the group's operational and financial profile in 2014

Luc Themelin, Chairman of the Management Board, commented: "In an environment where demand remains sluggish, Mersen is reporting 2013 sales close to its objective, with a fourth quarter stable compared with the third. We confirm our 2013 targets in terms of EBITDA margin and operating margin before non-recurring items, effectively demonstrating the Group's resilience in today's difficult economy. In light of trends in its businesses and following the review of its assets, the Group has decided to recognize in 2013 approximately €55 million of one-off impairment charges, which will not have any material impact on the Group's financial structure. Lastly, as part of its short- and medium-term development strategy, Mersen is demonstrating its determination with this year's launch of the ambitious "Transform" plan, designed to enable the Group to respond more quickly to changes in the global economic environment and adapt its production capabilities accordingly. The plan is expected to significantly improve Mersen's

operating efficiency and competitiveness in its markets."

The reported consolidated sales for 2013 stands at €738.8 million, down 6% on a like-for-like basis compared with the previous year, and close to our target (sales down about 5% on a like-for-like basis). The effect of the depreciation of most currencies against the euro accounts for almost €26 million on 2013 sales.

Unaudited figures - Sales figures restated for businesses held for sale

Q4 sales are in line with those of Q3 on a like-for-like basis, standing at €179.4 million and integrating unfavorable currency effects of more than €8 million. This figure is down 2.1% on a like-for-like basis
compared with the same period last year.

Unaudited figures - Sales figures restated for businesses held for sale

Sales in the Materials segment were down 10.2% organically: the chemicals market is down on the previous quarter due to the high comparison basis on the Sabic contract. Solar energy sales are also down in comparison with the previous year; however, they continue to progress compared with the beginning of the year. On a positive note, sales in the electronics and aeronautics markets have increased significantly.
Sales in the Electrical segment are up 4.5% on a like-for-like basis. This growth concerns all the markets, with the exception of the process industries. Growth is more significant in the electronics and wind farm
equipment sectors.

The situation is improving slightly throughout Europe, with the exception of France, where activity remains weak. In Asia, the trend is positive despite unfavorable effects resulting from the non-renewal of anti- corrosion system contracts. Lastly, sales in North America are down due, in part, to last year's substantial deliveries in the chemicals sector for shale gas extraction, and in part to low activity in December with electrical distributors, who have limited their end-of-year inventories.

The Group has confirmed its targets for 2013:
- An EBITDA margin between 13 and 13.5%
- An operating margin before non-recurring items between 8 and 8.5%
- An operating cash flow higher in H2 2013 than in H1

In its 2013 accounts, the Group will post one-off charges of approximately €55 million1, mainly non-cash. This amount mainly comprises tangible and intangible asset depreciation resulting from lower activity forecasts on the chemical market, and the under-utilization of certain production equipment in the graphite activity. It also reflects deferred tax asset depreciation in France, which accounts for approximately €10 million.

This year, the Mersen Group announces the launch of "Transform": a global plan that sets out to optimize the Group's operational efficiency by adapting its efforts in the most promising geographic areas, and by improving the Group's flexibility in order to better match its economic environment. Deployed over 2014 and 2015, this industrial optimization program would mainly involve transfers of production and a reduction in the number of sites, chiefly in Europe. Its overall cost is expected to reach approximately €30 million, mainly cash expenses, recognized in 2014 and 2015 along with its deployment.
Ultimately, this plan should improve the Group's operational efficiency and competitiveness, prompting an increase in its operating margin before non-recurring items of approximately 1.5 point (on a basis of activity comparable with 2013). Details of these projects will be given once they have been sufficiently finalized, in accordance with information and consultation procedures.

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1 These amounts will be added to non-recurring items already recognized in H1 2013.

Financial calendar

2013 results: March 6, 2014 before start of trading

Global expert in electrical specialties and graphite-based materials, Mersen designs innovative solutions to address its clients' specific needs to enable them to optimize their manufacturing process in sectors such as energy, transportation, electronics, chemical, pharmaceutical and process industries.

The Group is listed on NYSE Euronext Paris - Compartment B

Visit our website www.mersen.com

Véronique Boca Nicolas Jehly / Guillaume Granier

VP, Financial Communication FTI Consulting Strategic Communications

Mersen Tel: +33 (0)1 47 03 68 10

Tel: + 33 (0)1 46 91 54 40 Email: Nicolas.jehly@fticonsulting.com / Email: dri@mersen.com guillaume.granier@fticonsulting.com

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