LISI S A : 2019 Half-yearly results

Against the backdrop of the global crisis, the LISI Group was able to adapt quickly

and strengthen its financial structure in the first half of 2020

• First-halfresults reflect positive commercial and operational momentum up to March 15, before markets and nearly all client activity stalled in all three divisions
• Global adaptation plan deployed to ensure business continuity, prioritize protection of employees and preservation of cash flow

1. 28.2% drop in sales compared with the first half of 2019 (-46% in Q2)

1. EBITDA held up well at 13.3% compared with 14.7% in the first half of 2019, due to cost and production adjustment measures implemented from the beginning of the crisis

1. Positive current operating profit of €22.5 million, including €58.8 million of depreciation charges

• 1. Record free cash flow of €90 million, reflecting immediate adjustments to working capital requirements
• Increased financial stability with a €94 million decrease in net debt compared with December 31, 2019
• Continuing focus on high value-added automotive activities with the disposal of the German company Mohr & Friedrich, and the acquisition of the remaining shares in Termax (49%)
• Plan to adapt to new market conditions: NEW DEAL to prepare for the future

Paris, July 24, 2020 - Today, LISI has released its results for the first half-year ended June 30, 2020. The statutory auditors conducted a limited review of the accounts, which were presented at the meeting of the Board of Directors held on July 23, 2020.

6 months ended June 30		H1 2020	H1 2019	Change
Key elements of the income statement
Revenue	€M	636.7	886.2	-28.2%
EBITDA	€M	84.8	130.2	-34.8%
EBIT	€M	22.5	72.8	-69.1%
Current operating margin	%	3.5	8.2	-4.7 pts
Income for the period attributable to equity holders of	€M	4.7	24.9	-81.1%
parent
Diluted earnings per share	€	0.09	0.47	-80.8%
Key elements of the cash flow statement
Operating cash flow	€M	70.4	107.6	€M -37.2
Net capital expenditure	€M	36.3	67.0	€M -30.7
Free Cash Flow1	€M	90.0	48.9	€M +41.1
Key components of the financial position
		H1 2020	12/31/2019
Net debt2	€M	237.7	331.9	€M -94.2
Ratio of net debt to shareholders' equity	%	23.2%	32.6%	-9.4 pts

1. Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements.
2. Of which €71.6 million of the debt increase was due to IFRS 16 in 2019 and €78.0 in 2020.

Despite the unprecedented current situation, the Group has proven that it can adapt while continuing to focus on its high value-added activities. This resilience is encouraging for the future as regards the Group's ability to maintain positive profitability and generate a good level of cash surplus.

Nevertheless, the results for the current financial year should be impacted by the planned cost savings in the second half-year. The Group's financial stability remains intact, allowing further consolidation of the value chain in its various businesses.

LISI has therefore confirmed its strategic ambition for long-term growth. The Group's "NEW DEAL" adaptation plan will support this process, through its business relaunch and industrial rescaling phases. As it enters a phase of repositioning, it aims at adapting to the new market conditions, and to seize any opportunities that may arise.