Lectra : Analyst conference

Financial results Q3 and 9M 2023

Daniel Harari, Chairman & CEO

Olivier du Chesnay, Chief Financial Officer

FINANCIAL RESULTS Q3 AND 9M 2023

• 9M 2023 main highlights
• Evolution of Lectra's markets
• Q3 2023 results
• 9M 2023 results
• 2023 outlook

2	Lectra - Financial results Q3 and 9M 2023

9M 2023 MAIN HIGHLIGHTS

Decline in new	Strong improvement	Confirmation of the
systems orders in a	of the fundamentals	growing adoption of
degraded environment	of the Group's	software in SaaS
	business model	mode

3 Lectra - Financial results Q3 and 9M 2023

9M 2023 MAIN HIGHLIGHTS

Persistent challenges in a continuing highly degraded environment

Geopolitical tensions		Uncertainty regarding		Strong increase in
that are global threats		the growth of the		interest rates / heavily
		world's main economies		reduced access to
				loans for companies

Persistent highDecline in global demand inflation / increase in

energy prices

During Q3, uncertainties regarding growth intensified and interest rates continued to rise to reach historically high levels.

Moreover, recent tensions in the Middle East are accentuating these uncertainties and further disrupting an already deteriorated macroeconomic and geopolitical environment.

4 Lectra - Financial results Q3 and 9M 2023

9M 2023 MAIN HIGHLIGHTS

Strong impact of exchange rate variations

With an average exchange rate of $1.09/€1 in Q3, the dollar was down 7% compared to Q3 2022 ($1.01/€1) and the yuan declined by 12% against the euro.

With an average exchange rate of $1.08/€1 in the first 9M 2023, the dollar was down 2% compared to the first 9M 2022 ($1.06/€1) and the yuan declined by 8% against the euro.

1.12

1.09

1.06

1.03

1.00

T1

T2

T3

T4

2022 2023

Average $ / 1 € exchange rate

Conversion of Q3 2023 results using the Q3 2022 exchange rates

In millions of euros

Revenues			EBITDA
					before non-recurring items
	-5%				-10%
125.1
118.7	26.7
				23.9
					21.3%		20.1%
Q3 2023 converted Q3 2023
Q3 2023 converted	Q3 2023
using the Q3 2022		using the Q3 2022
exchange rates			exchange rates

5 Lectra - Financial results Q3 and 9M 2023

Conversion of 9M 2023 results using the 9M 2022 exchange rates

In millions of euros

RevenuesEBITDA

before non-recurring items

-2%

-5%

365.6	358.3
			62.2		59.2
				17.0%		16.5%
9M 2023 converted	9M 2023	9M 2023 converted	9M 2023
using the 9M 2022		using the 9M 2022
	exchange rates			exchange rates

= In % of revenues

FINANCIAL RESULTS Q3 AND 9M 2023

• 9M 2023 main highlights
• Evolution of Lectra's markets
• Q3 2023 results
• 9M 2023 results
• 2023 outlook

6	Lectra - Financial results Q3 and 9M 2023

EVOLUTION OF LECTRA'S MARKETS

Fashion: uneven performances across all market segments

Worldwide Fashion sales

In billions of dollars		+7%
		+8%
1 766	1 730	1 811
1 497

	2019	2020	2021	2022	2023e	2024e
Source: Euromonitor / McKinsey	Growth in fashion sales in 2023 is driven by higher prices rather
	than higher volumes.

CHALLENGES

• Sustainability becoming compulsory
• Consumers' wait-and-see attitude
• Cost-pushinflation, especially due to the price increase of raw materials
• Slowdown in demand in the luxury segment

Fashion industry players must undertake far-reaching transformations in their distribution networks and supply chains,

taking into account Corporate Social Responsibility (CSR) challenges,

and the continuous adjustment of their product range and positioning strategies.

7 Lectra - Financial results Q3 and 9M 2023

EVOLUTION OF LECTRA'S MARKETS

Fashion: uneven performances across all market segments

Luxury stock prices have fallen,	CHALLENGES
but growth is still in sight

Revenues growth (index 100 at 01/01/23)

• Sustainability becoming compulsory
• Consumers' wait-and-see attitude
• Cost-pushinflation, especially due to the price increase of raw materials

Source: Euromonitor / McKinsey

• Slowdown in demand in the luxury segment

Fashion industry players must undertake far-reaching transformations in their distribution networks and supply chains,

taking into account Corporate Social Responsibility (CSR) challenges,

and the continuous adjustment of their product range and positioning strategies.

8 Lectra - Financial results Q3 and 9M 2023

EVOLUTION OF LECTRA'S MARKETS

Automotive: recovery remains on track, but uncertainty persists

Source: IHS Markit / S&P Global

Worldwide production of light vehicles

In millions

+1%

89.0	+6%

82.3

77.2

74.6

2019 2020 2021 2022 2023e 2024e Estimated evolution in 2023

+11% in Europe

+8% in the United States +1% in China

CHALLENGES

• Increased need to create a resilient, circular and sustainable supply chain
• Pressure on margins
• Fierce competition in the field of electric vehicles
• Since mid-September, unprecedented US auto workers strike

To remain competitive, suppliers have to boost the performance of their production tools and optimize material consumption.

9 Lectra - Financial results Q3 and 9M 2023

EVOLUTION OF LECTRA'S MARKETS

Furniture : a sign of uncertainty arising after two exceptionnal years

Upholstered furniture sales	CHALLENGES

In billions of dollars

+1.7%

-5.1% +21.1% -0.2% -1.1%

• Need for rationalizing the supply chain
• Consumers' decreased appetite for furniture
• Financial difficulties for a growing number of companies

2019 2020 2021 2022 2023e 2024e

Estimated evolution in 2023

Sources: CSIL

-4% in Germany, UK, France, Italy,

-3% in the United States +2% in China

Furniture industry players are continuing to digitize and automate their industrial facilities,

while transforming production methods and processes to give greater priority to on-demand production.

10 Lectra - Financial results Q3 and 9M 2023