EXEL INDUSTRIES :2014-2015 annual sales Decrease of 50M€ in agricultural sprayer

PRESS RELEASE                                                                                         Paris, September 30, 2015

As previously announced, Exel Industries sales were down by 2% over the 4^th quarter. The reduction in the agricultural sprayer activity of 11.4% was only partly compensated for by other group activities.

Annual revenue was €725.3 million against €775.4 million in the previous fiscal year, or -6.5% at current exchange rates. EXEL Industries benefited from the euro's weakness against the US Dollar and pound sterling, which contributed €17 million to revenue.

• Agricultural Sprayer

Fourth quarter activity stabilized at a weak level in the European market, the USA, Russia and Ukraine. The economic context, together with a reduction in farmers' incomes, has had a negative impact principally on our sales in Europe and to a lesser extent in the United States, given our weak presence in the latter market.
Globally over the year, all geographical areas were down except Australia. Excluding the positive exchange rate effect, agricultural sprayer revenue was down by almost €50 million.

• Sugar Beet Harvesters

The dry spring and wet weeks at the end of August and beginning of September have delayed harvests until the last fortnight of September. Some deliveries of sugar beet harvesters were postponed until September, but with little impact on 2014-2015 fiscal year revenue.

• Garden Spraying and Watering

The backlog created in the first three quarters of the fiscal year was recovered thanks to the fall in the euro against the pound sterling and very favorable weather conditions in the months of June and July. Revenue went from €99.4 million to €104.9 million including an exchange rate effect of €6.7 million. Sales in France and England held up well but overall reduced by 10% internationally.

• Industrial Spraying

The 4th quarter revenues of last year were high due to a large billing related to paint application projects. Overall the turnover of "industrial spraying" was driven by growth in the US market, the weakness of the Euro and the development of the distribution network. This growth offset the 10% decline of Revenues related to paint line projects.

Outlook and Strategy

Guerric Ballu, EXEL Industries Group CEO:

"After three fiscal years of strong growth, our annual revenue is down by 6.6% owing to the agricultural sprayer sector which declined by nearly 15.9%. For EXEL Industries group as a whole, international sales have increased, which brings the share outside France to 73% against 68% in the previous fiscal year.

With a difficult economic background, marked by a strong reduction in agricultural sprayers, our other group businesses continue to develop with significant growth in North America.

Taking economic circumstances into account, a recovery in agricultural spraying is not yet on the agenda. Wheat harvests were satisfactory in volume terms but prices remain at a low level of €150-160/ton. As far as the maize harvest is concerned, it was affected by hot and dry weather in Europe and the United States. For all that, we can expect that customers in France are likely to act on tax-reduction measures that increase amortizations on industrial investments, which may lead to greater economic activity between February and April 2016.

Despite a less profitable 2014-2015 fiscal year, EXEL Industries group is pursuing its development strategy by investing abroad and innovating in all its businesses. At the GAFA trade show in Germany and at the Glee retail show in England, Hozelock exhibited two major innovations for gardeners: an automatic watering system controlled by smartphone and a revolutionary drip-watering system. 
Our new agricultural spraying products will be showcased at the Agritechnica trade fair in Hanover in November 2015."  

Next event:       SFAF 2014-2015 full-year results on November 24, 2015
2015-2016 first-quarter sales: December 22, 2015

About EXEL Industries: www.exel-industries.com
EXEL Industries' main businesses are agricultural sprayers (world no.1) and industrial spraying (world no.3). The Group also competes in the retail water supply solutions market (European leader) and the sugar beet harvesters market (world leader). EXEL Industries is continually expanding its markets by means of constant innovation and an international strategy. EXEL Industries employs around 3,600 people spread over 29 countries in five continents.

NYSE-Euronext Paris, SRD Long, Compartment B, CAC Mid&Small 190
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(Ticker symbol EXE / ISIN FR0004527638)

Guerric BALLU                                                              Sylvain Rousseau                                                                                
Group CEO                                                                    Group CFO / Head of Investor Relations                                       
                                                                                        Sylvain.Rousseau@exel-industries.com   
                                                                                        Tel: +33 1 71 70 49 50