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Mersen Earnings Release 2010

Jan 25, 2011

1518_iss_2011-01-25_17dccf7b-4ed5-4fdc-839b-42cdb21f20b1.pdf

Earnings Release

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Paris, January 25, 2011

Sales growth of 15%* during the fourth quarter of 2010 and 13%* over the full year

Mersen beats its full-year growth targets

During the fourth quarter of 2010, Mersen posted consolidated sales of €211 million, up 15% on a like-for-like basis. On a reported basis, the increase came to 43% owing to a positive currency effect, and an impact of €29 million** from changes in the scope of consolidation during the quarter.

During the quarter, sales to the solar segment reached a very high level, while markets in the electronics segment and in Asia were again very brisk and growth continued in the Group's traditional markets.

2010 sales totaled €741 million. This figure represented an increase of 13% on a like-forlike basis and of 26% on a reported basis. The Group benefited from a positive currency effect exceeding €30 million, while the impact of changes in the scope of consolidation came to €45 million over the year.

During 2010, Mersen again achieved dynamic growth owing to its positioning in fastexpanding markets. Business in Asia grew by 19%* in 2010 and now accounts for almost onequarter of sales. Alternative energies posted growth of over 30%* and contributed 16% of the Group's business. Lastly, its dynamic acquisitions strategy enabled Mersen to strengthen its positions in expanding markets.

Sales Q4
2010
(€ m)
%
change*
Q4 2010/
Q4 2009
FY
2010
(€ m)
% change*
FY 2010/
FY 2009
Advanced Materials and
Technologies
98 +23% 325 +14%
Electrical Components and
Technologies
113 +9% 416 +12%
Group total 211 +15% 741 +13%

Analysis by business segment

* on a like-for-like basis, i.e. at comparable scope and constant exchange rates – Unaudited data

** including the effects deriving from consolidation of M.Schneider, Yantai and Boostec from their acquisition date and from 2C Cellier since the beginning of the year

Paris, January 25, 2011

Advanced Materials and Technologies

The Advanced Materials and Technologies segment posted sales of €98 million during the fourth quarter. This represented an increase of 52% on a reported basis and 23% on a like-for-like basis.

Sales in the solar and electronics markets were particularly strong in graphite equipment, a segment in which certain items of production equipment are currently running at full tilt.

Sales to process industries continued to make headway.

After holding up well during 2009, sales to the chemicals/pharmaceuticals industry declined during the quarter. However, new orders moved higher, particularly in the phosphoric acid market.

The Advanced Materials and Technologies segment's sales totaled €325 million during 2010. They rose by 14% on a like-for-like basis.

Electrical Components and Technologies

The quarterly sales recorded by the Electrical Components and Technologies segment came to €113 million, up 36% on a reported basis and up 9% on a like-for-like basis.

Sales were again brisk in power electronics and solar energy. Business in process industries was also strong. In rail transportation, sales grew at a slower pace than during the first half when they were boosted by the impact of stimulus plans in Asia. Orders again remained firm, however.

Lastly, the original-equipment market in the wind energy industry was again sluggish, but this trend was offset by market share gains in the replacement market.

The Electrical Components and Technologies segment's sales totaled €416 million during 2010. They rose by 12% on a like-for-like basis.

Objectives

Mersen has confirmed that its 2010 operating margin before-non recurring items will be at least on a par with the level posted in the first half (9.9%).

---End---

Save the dates: Presentation of full-year results: March 16, 2011 First-quarter 2011 sales: April 20, 2011

Paris, January 25, 2011

About Mersen

Global expert in materials and solutions for extreme environments as well as in the safety and reliability of electrical equipment, 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 and is included in the following indices: CAC Mid100, SBF120 and Next 150.

Visit our website www.mersen.com

Analyst and Investor Contact Press Contact

Stéphanie Atellian Vilizara Lazarova VP Investor Relations Mersen Publicis Consultants

Tel. + 33 (0)1 46 91 54 49 Tél. +33 (0)1 44 82 46 34

Email : [email protected] Email: [email protected]