Stabilus S.A. confirms preliminary figures for fiscal 2018 and proposes a dividend of EUR 1.00 per share

CORPORATE NEWS

Stabilus S.A. confirms preliminary figures for fiscal 2018 and proposes a dividend of EUR 1.00 per share

- Revenues for FY2018 +5.8 % to EUR 962.6 million; growth of +8.8 % at constant USD/EUR exchange rate yoy

- Adjusted EBIT^[1] +8.5 % to EUR 149.3 million; adjusted EBIT margin of 15.5 %

- FY2018 profit +33.1 % to EUR 105.4 million, up from EUR 79.2 million in FY2017; dividend of EUR 1.00 per share proposed

- Revenue growth of approx. 5 % (at constant USD/EUR exchange rate yoy) and an adjusted EBIT^[1] margin of ca. 15.5 % expected for FY2019

Luxembourg/Koblenz, December 14, 2018 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, today confirmed its preliminary figures, released on November 16, 2018, and published the company's 2018 annual report. In what is a heterogeneous market, the company posted solid and profitable growth, building still further on its position as a leading supplier of motion control systems and solutions.

Dr. Stephan Kessel, CEO of Stabilus, stated: "We can look back on a successful business year marked by significant growth in both revenues and earnings. We shall therefore be proposing to the annual meeting of shareholders that a dividend of EUR 1.00 per share be paid. In the current fiscal year, we are for the first time expecting revenues to exceed the one-billion-euro threshold. This is a quite outstanding milestone and a reflection of our innovative strengths, which we have repeatedly demonstrated with a wide range of future-facing applications and technologies."

For instance, Stabilus has developed a new electromechanical door actuator and won two renowned automobile manufacturers as customers. It will be implemented in new vehicle models of these manufacturers with start of production in the fiscal years 2020 and 2021. The technology constitutes an enhancement of the Stabilus Dorstop^(R) system which enables the stepless opening and closing of vehicle doors. The new door actuator will automate this function by facilitating vehicle doors that can be automatically fully opened and closed. This is a feature that will, for example, be absolutely essential in self-parking cars and, more generally, when meeting the requirements of the future trend of autonomous driving.

Solid growth

The group reported a rise in revenues for fiscal 2018 of 5.8 percent to EUR 962.6 million (FY2017: EUR 910.0 million). At year-on-year constant USD/EUR exchange rate group revenues grew by 8.8 percent. The adjusted EBIT margin stood at 15.5 percent, up from 15.1 percent in the previous year. Stabilus has thus fully met its forecasts for fiscal 2018.

In the Europe region, revenues in FY2018 climbed by 7.7 percent to EUR 491.3 million, driven by both the strong Industrial/Capital Goods and Powerise business. In the NAFTA region, revenues were slightly down year-on-year, falling back by 0.7 percent to EUR 348.1 million, this decline having been principally due to the weakness of the USD during the past fiscal year (average exchange rate 1.19 USD/EUR in FY2018 as opposed to 1.10 USD/EUR in FY2017). Before USD/EUR currency translation effect, revenue growth in the NAFTA region in FY2018 stood at +7 percent. In Asia / Pacific and RoW (Rest of World), the company posted a year-on-year increase in revenues of 19.5 percent to EUR 123.1 million. Especially positive in terms of its impact in the Asia / Pacific and RoW region was the growth in revenues from Powerise systems, which advanced from EUR 5.8 million in FY2017 to EUR 22.4 million in FY2018, a trend chiefly attributable to new business with both western OEMs operating in the region and Chinese OEMs.

Growth in both automotive and industrial businesses

A breakdown by markets shows both the automotive and industrial business to have reported solid growth in the 2018 fiscal year. In the automotive segment, the company saw revenues advance by 4.6 percent to EUR 610.6 million (FY2017: EUR 583.7 million). At year-on-year constant USD/EUR exchange rate, revenue rose by 7.9 percent, a figure significantly above growth rates in the automotive market as whole, in which the number of vehicles produced worldwide grew in FY2018 by 1.0 percent to 96.0 million units. The automotive business continued to benefit from the ongoing trend towards SUVs and large-hatchback vehicles, which creates sustained demand for comfort solutions featuring gas springs and Powerise drives. In all, the automotive business accounted for 63 percent of aggregate sales revenues in the 2018 fiscal year. The remaining 37 percent was generated by the industrial business, where revenues rose by 7.9 percent, from EUR 326.3 million in previous year to EUR 352.0 million. At year-on-year constant USD/EUR exchange rate, revenue growth stood at 10.4 percent. Stabilus reported particularly strong rates of growth in the field of agricultural and construction machinery, buses, commercial vehicles, and medical technology.

Adjusted EBIT margin of 15.5 percent, profit grows 33.1 percent year-on-year

The final figures show adjusted profit from operating activities (adjusted EBIT^[1]) to have improved in FY2018 by 8.5 percent to EUR 149.3 million. This is equivalent to an adjusted EBIT^[1] margin of 15.5 percent, up from 15.1 percent in the previous year.

Profit for FY2018 was, at EUR 105.4 million, 33.1 percent higher than in the prior year (EUR 79.2 million), and free cash flow (FCF^[1]), at EUR 100.2 million, 28.8 percent higher than the previous year's figure (EUR 77.8 million).

The Stabilus management board and supervisory board will propose to the annual meeting of shareholders taking place in Luxembourg on February 13, 2019 that a dividend of EUR 1.00 be paid for the 2018 fiscal year (dividend for FY2017: EUR 0.80)

Forecast for fiscal 2019 points to further profitable growth

For fiscal 2019 Stabilus is expecting revenues to grow by some 5 percent to approximately EUR 1,010 million (at year-on-year constant USD/EUR exchange rate of 1.19) and an adjusted EBIT margin of approx. 15.5 percent. Furthermore, Stabilus confirms its STAR 2025 mid- and long-term guidance for average annual growth of at least 6 percent.

The full annual report can be downloaded from the company's website at Investors / Financial Reports & Presentations 2018. The material in the image section of the annual report includes a look at the Asia region and an interview with Markus Schädlich, management board member with special responsibility for Asia since 2018.

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^[1] Cf. definition/calculation of KPIs 'adjusted EBIT' and 'free cash flow (FCF)' provided in our current financial reports and results presentations, e.g. in our annual report for FY2018, pp. 32-38, that can be downloaded from the company's website at Investors / Financial Reports & Presentations 2018.

Investor contact:
Andreas Schröder
Tel.: +352 286 770 21
E-Mail: anschroeder@stabilus.com

Press contact:
Tobias Eberle
Tel.: +49 69 794090 24
E-Mail: Tobias.Eberle@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

As one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives, Stabilus has for eight decades been demonstrating its expertise in the automotive industry and a variety of other sectors. Gas springs, dampers and electromechanical POWERISE drives from Stabilus optimize opening, closing, lifting, lowering and adjusting operations, and also protect against vibrations. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz. Stabilus has reported sales revenues of EUR 962.6 million in the 2018 fiscal year. Stabilus has a global production network encompassing plants in nine countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North, Central and South America, and in Asia Pacific. Stabilus is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the SDAX index.

Important Notice

This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.