MGI Coutier : 2017 Income

PRESS RELEASE

Wednesday 11 April 2018 after the market close

CONTINUED GROWTH AND

RESULTS IN LINE WITH ANNOUNCED OBJECTIVES

SALES OF €1,024.2 MILLION

INCOME FROM ORDINARY ACTIVITIES: €115.1 MILLION

Consolidated figures (1 January to 31 December)

OPERATING PROFITABILITY REMAINED HIGH

In 2017, MGI Coutier exceeded €1 billion in sales one year ahead of plan and performed well despite higher raw material prices and unfavourable currency fluctuations.

Full-year sales totalled €1,024.2 million, up 8.9% like-for-like.

The "Fluids Management" product line represented 86% of sales and "Mechanisms" 14%. The Group achieved 86.9% of its sales with its 12 strategic customers.

EBITDA was €145.3 million vs €150.6 million in 2016, owing in particular to (i) a rise in raw material prices that was not fully passed on and (ii) slightly higher wage costs related to R&D staff, the implementation of "Factory 4.0" and an increase in salaries in certain geographical regions.

Income from ordinary activities increased by 3.9% to €115.1 million, in line with the objective announced by the Group. The margin on ordinary activities was 11.2% of sales.

This increase of €4.0 million resulted in particular from:

• -depreciation and amortisation up €2.0 million owing to the capital expenditure strategy the company has followed over the past five years,

• -a sharp decline in net provisions, generating a positive impact of €11.3 million,

• - a negative impact of €6.1 million related to sites in a start-up phase.

R&D and design study costs totalled €60.8 million during the period, vs. €52.0 million in 2016.

After net financial expense of €1.8 million and tax expense of €28.6 million, vs. €27.0 million last year, net income, Group share, was €84.8 million. Net margin remained high at 8.3% of sales.

MGI Coutier's financial structure is very sound, with net financial debt of €25.3 million as of 31 December 2017 (€13.3 million as of 31 December 2016). Group equity stood at €409.4 million as of end-2017.

2017 was a record year for capital expenditure, with €87.3 million invested during the year. This amount will decline significantly in 2018 and will decline further in 2019.

DIVIDEND

A dividend of €0.30 per share on 2017 earnings, identical to that of 2016, will be proposed at the Annual General Meeting to be held on 30 May 2018.

OBJECTIVES

In 2018, with the worldwide market set to remain favourable overall, MGI Coutier should benefit from new facilities entering production and see a positive impact on sales from the sites launched in 2017.

At the same time, the Group will maintain a significant level of capital expenditure. The Rayong, Thailand site will become operational during the first half of 2018. In Bulgaria, the project has been postponed for 18 months so as to configure the site to be in line with customers' requirements.

In light of the growth expected in the worldwide automotive market and the opportunities that new forms of mobility present, MGI Coutier aims to realise sales in the region of €1.2 billion by 2020.

Information meeting: Thursday 12 April 2018 at 10.00 a.m. at l'Etoile Business Center, 21 rue Balzac, 75008 Paris (France).

Next press release: First-quarter 2018 sales on 14 May 2018 after the market close

Automotive component manufacturer MGI Coutier is active in two main product lines:

Fluids management and mechanisms.

The Group has more than 11,000 employees worldwide.

Euronext Paris - Segment B - ISIN: FR0000053027 - Reuters: MGIP.PA - Bloomberg: MGIC

Contacts:

MGI Coutier

Jean-Louis Thomasset - Vice-Chairman of the Executive Board/CFO - Tel.: 33 (0)4 50 56 99 25

Actus Lyon

Amalia Naveira - Marie-Claude Triquet - Analysts/Investors/Press relations - Tel.: 33 (0)4 72 18 04 93 -anaveira@actus.fr-mctriquet@actus.fr