MND Group (FR0011584549, MND) designs and builds efficient solutions to develop mountain areas and facilitate transport in tourist and urban areas. The Group is listed on the Paris Euronext regulated market, compartment C.

Sainte Hélène du Lac (Savoie, France), 16 February 2017 (before market open)

MND Group, major provider of innovative mountain development and urban mobility solutions, has won a global contract for the turnkey development of the new Snowland resort located north-west of Beijing.

Having opened a distribution subsidiary in December 2015 and received several large orders, concluding this record 3-year €110 million master contract represents a big step forward in the Group's winning global offer strategy in China.

MND will support development of a new unique mountain resort in Asia: Snowland

MND was selected to design and equip the Snowland “Four seasons” ski resort, a new mountain destination located 130km north-west of Beijing. The development contract for the resort covers a greenfield site and includes construction of the "latest-generation” detachable ropeways, an automatic snow-making system covering all 55km of ski slopes, and safety equipment. This new destination will be able to host international competitions for Alpine Skiing. Lastly, Snowland will be developing a large array of outdoor innovative leisure facilities.

The Snowland resort also aims to become a unique mountain destination in Asia applying global best practices with regard to the environment, low operating costs, return on investment, safety and accessibility.

MND's unique strengths were decisive in winning this contract

With a view to achieving world-class customer service for its future projects, Snowland was won over by:

• MND's ability to come up with global development solutions for mountain locations, from design to installation and Snowland staff training;
• The Group's Innovation, including its range of latest-generation detachable lifts;
• MND's ability to provide a fully automatic and customized snow machine (high and low pressure) covering 55km of slopes while consuming very little energy and producing high-quality snow;
• The Group's customer references for ensuring safety in tourist locations and global competition venues such as the Sochi Olympics and the Val d'Isere World Cup;
• MND's expertise in designing and installing the largest mountain outdoor recreational activities area in China;
• And lastly, the Group's production alliance with CCZMM¹, a Chinese state-owned company acclaimed for its production capacity.

A game-changing deal that will create jobs in France and China

In order to carry out this contract properly, MND has set up a "large projects" team made up of European and local experts, and will step up recruitment by creating new jobs at its locations in France (Savoie) and new jobs in its Chinese subsidiary. This will increase Group headcount to over 500 people three years from now.

Equipment will be partly manufactured in the Group's factories in France (Auvergne-Rhône-Alpes), and partly in China based on the Group's alliance with CCZMM (for further details, see today's other press release). In France, MND has flexible production capacity and facilities allowing it to cope with increases in volumes required to produce specific parts.

Gradual ramp-up of the contract over 3 years

The contract is originally planned to run 3 years broken down into several phases, and additional Group revenues are estimated to gradually increase over time as follows: €20 million in 2017/2018, €40 million in 2018/2019 and the remainder in 2019/2020. The first phase involves delivery of 3 chairlifts, a recreational area for ski beginners to learn, some 15km of slopes fully equipped with a snowmaking system, safety equipment and user-friendly signage, and an outdoor leisure multi-activity area. Following the first phase, Snowland will be able to open with complete and attractive tourism facilities already on offer.

¹ ChinaCoal Zhangjiakou Coal Mining Machinery

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Hubert Shea, CEO of Snowland, made the following comments: "Snowland, located at 41°N at an altitude of 2,100m, 130km from Beijing, has a snow season lasting 150 days, and boasts over 43 million high-potential customers from Beijing and Tianjin. Its strategic location and high business value make it an emerging world-class ski and mountain tourism destination. Close collaboration between Snowland and MND further entrenched the success of the Snowland project; MND stood out from other equipment suppliers and impressed Snowland leadership with its passionate and experienced team, innovative spirit, holistic and systematic industrial solutions, all-round local services and customer focus. The Snowland project will create over 500 employment opportunities in Chicheng and Chongli. Backed by all levels of government, international sport institutions and sporting communities, Snowland will prove itself invaluable in the Beijing-Tianjin-Hebei region. This destination also aims to become a popular tourism and leisure destination in terms of sport and health, as well as new city model for China, Asia and even the world at large.”

Xavier Gallot-Lavallée, MND Chairman and Chief Executive Officer, made the following comments: "We are very proud to have been selected by the new Snowland mountain resort and to showcase a challenging sustainable development project which will be a shop window for Asia. Winning this record contract once again demonstrates how successful our 5-year-old global offer strategy really is. This new order, which is a game-changer for the Group's operations in France and China, boosts our position as a leading player in developing mountain destinations, prior to tenders being sent out for the 2022 Winter Olympics."

Contacts:

MND Group – Roland Didier – Tel +33 (0)4 79 65 08 90

Actus Finance - France Bentin or Marie-Claude Triquet - +33 (0) 4 72 18 04 93 - fbentin@actus.fr/ mctriquet@actus.fr