Stabilus S.A. maintains strong growth trajectory in fiscal 2017 and releases preliminary full-year figures

CORPORATE NEWS

Stabilus S.A. maintains strong growth trajectory in fiscal 2017 and releases preliminary full-year figures

- Preliminary figures show revenues in FY2017 have increased by +23.4 percent to EUR 910.0 million (+EUR 172.5 million); organic growth excluding acquisitions and currency movements stands at 11.3 percent

- Adjusted EBIT^[1] +40.8 percent to EUR 137.6 million (+EUR 39.9 million); adjusted EBIT margin increases from 13.2 percent to 15.1 percent

- Preliminary net income for FY2017 at EUR 79.2 million, advancing from EUR 48.0 million in FY2016

- Around 7 percent organic revenue growth (at constant USD/EUR fx rate compared to previous FY) and adjusted EBIT margin of
approx. 15.5 percent anticipated for FY2018

- Strategy program STAR 2025 adopted - Stabilus targets average annual revenue growth of at least 6 percent in the period through FY2025

Luxembourg/Koblenz, November 27, 2017 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, hydraulic dampers and electromechanical drives for motion control, has released preliminary figures showing that the company brought its fiscal year 2017 (ending September 30) to a very successful conclusion. Strong revenue growth was reported across all regions and markets, enabling the company to further expand its position as a worldwide market leader in the market for motion control systems and solutions. Making a key contribution to this process was the integration of ACE, Hahn Gasfedern, Fabreeka and Tech Products, companies acquired in the summer of 2016. Stabilus continues to benefit from global megatrends such as demographic change, growing demand for comfort, and higher work safety standards.

Preliminary figures show group revenues in the 2017 business year to have risen year-on-year by 23.4 percent from EUR 737.5 million to EUR 910.0 million. Organic revenue growth - without USD/EUR exchange rate effects, and excluding the contributions made by the companies acquired in 2016 - stood at 11.3 percent. The fiscal year 2017 was the first full business year to which the acquired companies contributed. Their products and solutions in the field of vibration damping have since served to strengthen the Industrial divisions at Stabilus.

When broken down by regions, group revenues rose by 25.3 percent in Europe, by
21.3 percent in NAFTA, and by 22.2 percent in Asia/Pacific and RoW (Rest of World).

Revenues in the automotive business climbed in fiscal 2017 by EUR 68.4 million
(+13.3 percent) to EUR 583.7 million. Making a major contribution to this growth were the electromechanical Powerise drives. These are benefiting from the sustained worldwide trend towards SUVs, increased installation rates, and their introduction in new vehicle types. In the past year, Powerise revenues advanced by 24.5 percent to EUR 243.2 million. Revenue growth was also reported in the field of gas springs for the automotive business, which rose by 6.4 percent to EUR 340.5 million, thus significantly outperforming the underlying market growth.

The Industrial business reported a significant increase in revenues, rising year-on-year by EUR 104.1 million to EUR 326.3 million (+46.8 percent). This was largely due to the contribution made by the in June 2016 acquired entities and higher sales of industrial gas springs and dampers. In the past fiscal year, the Industrial business benefited in particular from growth in the segments solar industry, aftermarket, buses, trucks, agricultural machinery, medical technology and engineering.

Preliminary figures for the fiscal year 2017 indicate that adjusted EBIT^[1] rose by
40.8 percent to EUR 137.6 million (FY2016: EUR 97.7 million). The adjusted EBIT margin advanced from 13.2 percent in the 2016 business year to 15.1 percent in the fiscal year 2017. According to the preliminary figures, full-year group earnings for the fiscal year 2017 stand at EUR 79.2 million, up from EUR 48.0 million in the previous year. With the publication of final full-year figures on December 15, 2017, the Stabilus board of management and supervisory board are planning to propose to the annual shareholder meeting in 2018 that, in conformity with the company's profit distribution policy, a dividend be paid for the 2017 fiscal year.

Dietmar Siemssen, CEO of Stabilus, stated: "The past business year saw ACE, Hahn Gasfedern, Fabreeka and Tech Products, the companies we acquired in mid-2016, make their first full-year contribution to group revenues. This, together with solid organic revenue growth, delivered a further significant boost to growth, while once again significantly expanding our revenue base. Integration has been successfully completed, collaboration between the teams is going outstandingly well. At the same time, the conclusion of the 2017 fiscal year has seen us attain some of the major targets we set ourselves in our STAR 2020 strategy program earlier than planned. Adopting STAR 2025 means that we shall now be continuing our pursuit of this successful strategy plan. On the revenue side, we are seeking average annual growth of at least 6 percent in the period up until the 2025 business year. We therefore continue to see major potential for our products in both existing and new applications."

Mark Wilhelms, CFO of Stabilus, added: "On the earnings side, too, the 2017 fiscal year saw us make another big step forward. By proposing a dividend, we would like our investors to share in this success. Most decisive in terms of the improved earnings were, on the operational side, the revenue boost in the higher-margin Industrial business. On the financing side, we benefited from our current financing terms together with a further reduction in debt levels. Over the course of the fiscal year 2017, we cut net leverage ratio^[1] from 2.5x to 1.5x. With this step, we have achieved a level we wish to maintain over the longer term already today."

For the 2018 financial year (ending September 30, 2018) Stabilus is expecting organic revenue growth of approx. 7 percent to EUR 975 million (assuming a, compared to the previous FY, constant average USD/EUR exchange rate in FY2018 of 1.10; Stabilus would expect revenues of some EUR 960 million assuming the current average USD/EUR exchange rate of 1.15). It is anticipated that the adjusted EBIT margin will stand at around 15.5 percent.

A presentation designed to accompany the preliminary figures for FY 2017 can be downloaded in an English-language version from the Investor Relations website at www.ir.stabilus.com. Final figures, along with the full Annual Report for 2017, will be released on December 15, 2017.

Stabilus has today also published a detailed Corporate News release on the subject of STAR 2025. Please click on the following link to access the release:
http://ir.stabilus.com/websites/stabilus/English/5020/corporate-news.html

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^[1] For definition / calculation of 'adjusted EBIT' and 'net leverage ratio' refer to our current financial reports and results presentations under http://ir.stabilus.com/websites/stabilus/English/4007/financial-reports-_amp_-presentations-2017.html, e.g. to our FY2017 preliminary results presenation, pp. 21 and 22.

 

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. According to preliminary figures, Stabilus reported sales revenues of EUR 910.0 million in the 2017 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.