MGI Coutier : Q4 2017 Sales

PRESS RELEASE

Thursday, 8 February 2018 after the market close

MGI COUTIER EXCEEDS THE BILLION-EURO SALES MARK

ROBUST GROWTH OF 6.3% TO €1,024 MILLION

Consolidated sales (1 January to 31 December)

4thQUARTER 2017: LIKE-FOR-LIKE SALES UP 11.1%

MGI Coutier achieved sales of €260.6 million in Q4 2017, up 6.4% unadjusted. The currency impact during the quarter was negative, at €11.4 million, principally as a result of fluctuations in the Turkish lira and the US dollar. Like-for-like growth was 11.1%.

Sales of Products and Functions during the quarter totalled €247.0 million, up 5.2% unadjusted, with four sites around the world posting record levels of business for the month of December.

FULL-YEAR 2017: UP 8.2% LIKE-FOR-LIKE

For the financial year, MGI Coutier achieved its goal of exceeding the billion-euro sales mark and did so a year earlier than forecast. In addition, the Group once again outperformed the worldwide automotive market (up 2.3% in 2017).

MGI Coutier's full-year sales totalled €1,024.2 million, up 6.3% unadjusted. Like-for-like, sales increased by 8.9%. The net currency impact for the full year (Turkish lira, US dollar, Swedish krona) was €-25.2 million, compared to €-14.8 million in 2016.

Sales of Products and Functions totalled €983.2 million, up 6.1% unadjusted.

Tooling sales reached a 10-year historic high of €34.65 million, up 2.5% unadjusted.

For the 12 months, the product lines posting the largest gains were "Emission Control", "Cooling Systems" and "Mechanisms", respectively.Deliveries of AdBlue® tanks for SCR systems significantly exceeded announced forecasts, reaching €180.55 million vs. €162.1 million in 2016. This performance resulted both from a higher proportion of vehicles equipped with SCR systems and strong sales of this type of engine by the Group's client in Europe.

The breakdown of annual sales by production region was as follows:

• France: -5.3% to €365.8 million. As previously indicated, since the beginning of 2017, the SCR tanks, manufactured in Spain, have been invoiced by our Spanish entity, and not from France.

• Rest of Europe, Russia & Africa: +28.6% to €304.5 million

• North America: -0.6% to €229.6 million

• Asia & Middle East (including Turkey): +13.3% to €107.4 million

• South America: +14.7% to €16.9 million

Nineteen sites around the world posted record growth (vs. 14 sites last year), with sales levels never achieved before.

As projected, non-financial capital expenditure was especially high during 2017, reaching a peak of more than €80 million for the year (vs. €53.9 million in 2016). It will decrease significantly in 2018, then again in 2019.

During the year, MGI Coutier completed the construction of two new sites (production runs begin in early 2018), one in Wuhan, China and the other in Ixtaczoquitlan, Mexico, and expects to start up sites in Thailand (Rayong) and Bulgaria (Vidin) in 2018.

NET DEBT AS OF 31 DECEMBER 2017

As of 31 December 2017, the Group's net financial debt totalled €24.9 million, up €11.6 million. This increase was principally due to the increase in capital expenditure.

DEVELOPMENTS

For the full year, taking account of the growth experienced, the MGI Coutier Group estimates that its income from ordinary activities should be equal to or slightly higher in value terms than it was in 2016, whereas previous guidance had put it "close" in value terms.

Based on a sustained robust flow of orders during the year, and a policy of high non-financial capital expenditure (€230 million spent in four years) which has notably allowed the Group to strengthen its international presence and increase its productivity, MGI Coutier remains confident in its ability to keep pace with future developments in the automotive sector and to pursue vibrant growth over the short and medium term.

Lastly, considering its very healthy financial condition, MGI Coutier Group remains attentive to acquisition opportunities that could accelerate its growth and increase and/or complement its technological expertise.

Next press release: 2017 annual results, 11 April 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 10,900 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: 04 50 56 99 25

ACTUS finance & communication

Amalia Naveira - Marie-Claude Triquet - Analysts/investors/Press relations - Tel: 04 72 18 04 93anaveira@actus.fr-mctriquet@actus.fr