Q1 2020: Financial information.

FINANCIAL INFORMATION

Quaterly Consolidated Sales

In €m

20212020

	398
309	287	307
	239

Q1

Q2

Q3

Q4

The LISI Group achieved sales of € 309.4 million in Q1 2021,

down - 22.2 % compared to 2020

Sales for Q1 2021 are down 22.2 % compared to the same period of the previous fiscal year.

The global COVID-19 pandemic has further weighed on the Group's activity in varying proportions depending on the divisions:

• LISI AEROSPACE : - 38.5 %, the "Fasteners" business, which had benefited from a good level of sales in Q1 2020, is the most severely affected
• LISI AUTOMOTIVE : + 2.9 %, in line with the positive trend observed since the second half of 2020
• LISI MEDICAL : - 15.1 %, although sales are down, the outlook benefited from well oriented business

In €m				Changes
	2021	2020	2021 / 2020		2021 / 2020 on a
		like-for-like basis1
1st Quarter ended	309.4	397.9	- 22.2 %		- 18.8 %
March 31,

			EBIT* & Net Profit in €M		At € 309.4 million, consolidated sales for Q1 2021 were down 22.2%.
		EBIT			Net profit			It takes the following factors into account:
						• an unfavorable foreign currency effect of - € 10.1 million (i.e. - 3.2 %
135,6	155,1
					of sales), linked to the weakening of the US dollar against the euro,
92,1					• a scope effect of - € 4.5 million (i.e. - 1.5 % of sales) reflecting the
			69,8			deconsolidation of LISI AUTOMOTIVE Mohr + Friedrich GmbH on
						41,5		June 26, 2020 and LISI MEDICAL Jeropa in the United States on
								January 11, 2021,
							-37,3	• an unfavorable basis of comparison compared to Q1 2020 which
							was marked by the first effects of the COVID-19 crisis only in March
2018	2019	2020		2020,
* After participation and profit-sharing expenses

1 The change at constant scope and exchange rates is calculated:

• by converting the sales of the companies whose financial statements are denominated in foreign currencies at the average rate of the year N-1 or the month M-1;
• by converting the sales invoiced in currencies other than the local currency at the average rate of the previous year or previous month M-1;
• by restating the entries into or exits from the scope to ensure comparability of data.

On a like-for-like and constant exchange rate basis, consolidated sales dwindled by - 18.8 % over the first three months of the year.

Sales in million euros

226,7

139,4136,3 140,3

				35,1	29,8
2020	2021	2020	2021	2020	2021
AEROSPACE	AUTOMOTIVE	MEDICAL

COMMENTS BY BUSINESS LINE

LISI AEROSPACE (45% of the consolidated total)

In €m				Changes
	2021	2020	2021 / 2020		2021 / 2020 on a
					like-for-like basis1
1st Quarter ended	139.4	226.7	- 38.5 %		- 35.8 %
March 31,

Global air traffic remains heavily penalized by the effects of the COVID-19 pandemic. However, the domestic traffic statistics of some countries show some encouraging signs of recovery. Such is

. the case of the United States, where they stood at 1.6 million passengers per day at the end of March 2021 against 2.3 million in 2019 and 800,000 at the height of the pandemic in 2020. China, for its part, returned to its pre-crisis traffic levels as of Q4 2020.

At € 139.4 million, the division's sales are down -38.5 % compared to the same period the previous year with a lesser decline in March (-15.2 %). The "Fasteners" segment experienced the strongest contraction, with the adverse effects of an unfavorable basis of comparison. Indeed, Q1 2020 still benefited from a sustained level of activity.

The "Structural Components" segment, which had been the most severely affected in Q1 2020, suffered a more moderate decline in this quarter. The month of March even posted an increase of +18.7

• compared to the same month of the previous year and the order books show a clear recovery well ahead.

On a like-for-like and constant exchange rate basis, the LISI AEROSPACE division's sales are down -35.8 % over the first three months of the year.

LISI AUTOMOTIVE (45% of the consolidated total)

In €m				Changes
	2021	2020	2021 / 2020	2021 / 2020 on a
	like-for-like basis1
1st Quarter	140.3	136.3	+ 2.9%	+ 6.9 %
ended March 31,

Up + 21.3 %, global sales of passenger vehicles recorded a significant rebound compared to Q1 2020 when they had fallen by

22.0 %. The Chinese market recovered the most (+ 72.8 %), after collapsing by more than 43 % during the same period last year.

2 Source IATA

% Sales Variation per division / N-1

20							LISI AUTOMOTIVE

0

-20

-40

-60

LISI AEROSPACE

-80

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2018

2019

2020

2021

. The NAFTA2 (10.3 %) and Europe (- 0.7 %) zones, affected later by the effects of the global pandemic, show contrasting trends. However, it should be noted that the level of global sales remains - 7.8 % lower than in Q1 2019.

At €140.3 million, the LISI AUTOMOTIVE division's sales rose by

• 2.9 % compared to the same period the previous year. This increase takes into account the scope effect linked to the sale of its German subsidiary LISI AUTOMOTIVE Mohr + Friedrich GmbH on June 26, 2020. The "Clipped Solutions" and " Safety Mechanical Components" segments are displaying the most sustained growth. These are benefiting from the ramp-up of new products as well as the upturn in activity in China and sustained demand in Germany.

On the other hand, the "Threaded Fasteners" segment suffers from the gradual decrease in combustion engines, which has not yet been fully compensated by the ramp-up of new products currently being industrialized (multi-material assemblies, electric motor drive screws, etc.). Nevertheless, these are gradually asserting themselves as a real source of growth for this activity.

On a like-for-like and constant exchange rate basis, the division's sales increased by + 6.9 % over the first three months of the year. Sales to the North American or Asian continent show a more marked recovery than in Europe. These performance results are supported by the high added value segments "Clipped Solutions" and " Safety Mechanical Components". Their level is higher than that of world production over the same period (+ 2.5 %), once again demonstrating the dynamic momentum of the division in terms of market share gains.

LISI MEDICAL (10% of the consolidated total)

In €m				Changes
	2021	2020	2021 / 2020	2021 / 2020 on a
				like-for-like basis1
1st Quarter ended	29.8	35.1	- 15.1 %	- 6.0 %
March 31,

2NAFTA: free trade zone between the United States, Canada and Mexico

At € 29.8 million, sales for the quarter were up +15.1 % compared to the same period the previous year. The decline is due to an unfavorable base effect with Q1 2020 little impacted by the COVID- 19 crisis and by the scope effect linked to the sale of LISI MEDICAL Jeropa in the United States on January 11, 2021.

On a like-for-like and constant exchange rate basis, the LISI MEDICAL division's sales are down - 6.0 % over the first three months of the year.

CONTACT

Emmanuel VIELLARD

CEO

Mail: [e-mail]

• : [phone] - Fax : [phone] Website: www.lisi-group.com

3 Free Cash Flow : capacité d'autofinancement diminuée des investissements industriels nets et des variations des BFR

OUTLOOK AND COMMENTS ON THE FINANCIAL IMPACT OF BUSINESS

LISI AEROSPACE

The recovery of the global aviation market will be to a large extent conditioned by the success of national vaccination strategies. While it is still too early to confirm the first signs of strengthening in the "Structural Components" business and more specifically in the engines segment, the "Fasteners" business seems to have reached a low point in terms of order intake over the quarter. In this context, the division will maintain the adjustment measures initiated at the start of the crisis to tailor the cost structure to market conditions. Nonetheless, projects for development towards the industry of the future, approval of innovative products and CSR development are maintained.

LISI AUTOMOTIVE

In order to continue to benefit from the strong upturn that began in the second half of 2020, the LISI AUTOMOTIVE division continues to prioritize the management of production flexibility. At the same time, it ensures the strict adaptation of the cost structure at the activity level as well as the support for the ramp-up of new programs intended for electric, hybrid and plug-in hybrid vehicles. The level of order intake for new products has reached a record, thus proving the relevance of the strategic orientation towards an offer tailored for new vehicles.

At the same time, the division remains very attentive to the consequences of shortages in the supply of semiconductors to its main manufacturer customers and to the uncertainties linked to the increase in prices and the shortage of raw materials (steel and plastics).

LISI MEDICAL

The LISI MEDICAL division continues to adapt, with some success, to variations in demand from its main customers. It is also implementing the necessary means to secure the development and ramp-up of its new products in the fields of reconstruction and orthopedic implants as well as minimally invasive surgery. The satisfactory level of the order book allows us to hope for a year of accelerated activity.

LISI CONSOLIDATED

It is still too early to show any certainty as to the expected recovery, but the upturn in order books in certain aeronautical activities, as well as strong commercial activity in the automotive and medical divisions, are encouraging first signs.

As previously announced, and barring a relapse in the global economic context, the LISI Group confirms its objectives of achieving current operating income in 2021 at least equal to that of 2020, positive net income and a good level of Free Cash Flow3.

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