FIGEAC AERO, 2016/2017 FIRST HALF-YEAR RESULTS (AcT)

• Business growth of +23%

• Corrected EBITDA¹ of €33.6 million, i.e. 23% of revenue

• Group share of net profit at €13 million

• Strong growth expected in the second half year

• 2020 objectives maintained

Figeac Aéro Group (ticker symbol: FGA), a reference partner of the aerospace industry, announced 2016/17 first half-year results today (for the period ended 30 September 2016).

1. EBITDA = Current operating income + depreciation and amortisation + net provisions -Before breakdown of R&D expenses capitalised by the Group by type.

2. Financial statements that will be approved by the Board of Directors of 23 December 2016. The statements are subject to a limited review by the Statutory Auditors.

3. 2016/17 revenue is calculated using the average monthly EUR/USD rate of 1.1230 for the period and 2015/2016 revenue is calculated using the average monthly EUR/USD rate of 1.109 for the period.

4. The after-tax impact of foreign exchange income is +€9.2 million for H1 2015 compared to +€3.4 million for H1 2016.

A new half year of profitable growth

FIGEAC AERO Group announces a new period of growth in the first half of the 2016/17 financial period. The Group's consolidated revenue reached €146.2 million, for 23% growth in business (+24% at constant exchange rates).

The dynamic of the first half year is mainly sustained by the Aerostructure business
(84.3% of total revenue) up by 27.4% to €123.3 million.

Solid business performance, combined with an improvement in industrial performance, allows to present a high level of operating profitability. In fact, corrected EBITDA¹ shows growth of €33.6 million, i.e. 23% of revenue.

Current operating income totalled €17.7 million for this first part of the year 2016/17, integrating an unfavourable base effect over the US zone linked to non-recurring billing and Moroccan activity in start-up phase.

The Group's share of net consolidated income at 30 September 2016 totalled €13.1 million, i.e. 8.9% of revenue.

Ambitious investments to prepare for the Group's future growth

The Group actively pursued its investment policy early in the financial period at €49.1 million in order to strengthen its industrial tooling and deliver on its revenue goals from now to 2020.

Nearly €31 million of the investments were dedicated to production tools, with the acquisition of new machines and the on-going construction of the ultra-automated "Factory of the Future", dedicated to the LEAP engine at the Figeac site. In the America zone (Wichita and Mexico), investments totalled €3.5 million (real estate and production). Moreover, major R&D efforts were carried out on new processes for machining complex products for €10 million.

Financial structure

Successful fund raising last March, leading to a capital increase of €86.2 million, allowed the Group to strengthen its equity and its net cash position. At 30 September 2016, the Group's equity totalled €197.2 million compared to €86 million one year earlier, and net debt totalled €149.4 million.

At 30 September 2016, gearing reached 0.76 and the ratio of net debt to corrected EBITDA¹ remained controlled at 2.2x.

Outlook and growth strategies

With a well-focused backlog of orders, the Group is accelerating its growth dynamics for the second half year of 2016/2017. The second part of the year is starting at a sustained pace, and its expected strong growth will be mainly sustained by the A350 Airbus programme and the step-up in deliveries of engine parts for the LEAP programme, for which the Group won two long-term agreements valued at US $500 million and $40 million.

For the current year ended 31 March 2017) the Group confirms its annual financial objectives in consolidated data  with record growth of 35% in  revenue expected around €340 million and a corrected EBITDA margin greater than €78 million, which would constitute a historical level.

Acquisition of Auvergne Aéronautique Group: a value-creating transaction

The acquisition of Auvergne Aéronautique Group that was finalised in November 2016 marks a major step in the growth of FIGEAC AERO. This is fully in-line with the Group's development plan that aims for European leadership in aerospace outsourcing in 2020.

This acquisition, a true relay of growth, allows the Group to:

• acquire proven know-how in forming activities and sheet metal activities;
• boost its production capacity in Morocco with an operational and profitable Best Cost site;
• acquire new customer opportunities in particular with Airbus Helicopters and AVIC (China);
• position itself on more ambitious work-packages combining machining and sheet metal.

The objectives to March 2020 are therefore maintained with revenue between
 €650 and €750 million, i.e. a nearly three-fold increase of business in four years, accompanied by an EBITDA³ margin at current levels.

Next press release: 31 January 2017 (after Market), 2016/2017 3^rd quarter revenue

Source : Actusnews