LISI'S FINANCIAL PERFORMANCE IN 2018 REFLECTS LOWER RESULTS AND INCREASE IN FREE CASH FLOW AMIDST VOLATILE MARKETS

   - Sales reached € 1,645.1 million, stable compared to 2017 (0.1%);
   - Current operating income was down by almost 21%;
   - Free Cash Flow* was largely positive at € 57.3 million, up from 2017 in a context of strong level of investments since several years.

LISI AEROSPACE

   - Decrease of - 6.7% in sales compared to 2017 with a significant change in the product mix;
   - Fourth quarter of 2018 performance higher than the same period in 2017, reflecting a sharp downturn in Europe;
   - Trends observed at the end of the year: recovery of demand for helicopters and business and regional aircraft confirmed, clear rebound in the United States;
   - Pressure on margins in Europe caused by lower volumes and an unfavorable product mix for the full year, partly offset by the adjustment of production costs at the end of the period;
   - Free Cash Flow still highly positive;
   - Acquisition of a 100% stake in LISI AEROSPACE Additive Manufacturing.

LISI AUTOMOTIVE

   - Sales growth of nearly 15% to €581.1 million, supported by the acquisitions of Termax in 2017 and Hi-Vol in 2018 in the United States;
   - Market share gains in "Clipped Solutions" and " Safety Mechanical Components", accelerating international growth;
   - Operating margin affected by the sharp fall in business in the second half of the year with the entry into force on September 1st of a new vehicle approval procedure (Worldwide Harmonized Light Vehicle Testing Procedures - WLTP -); negative effect of higher raw material costs;
   - Annual Free Cash Flow still positive;
   - Disposal of Beteo (specializing in surface treatment - Germany) on December 31, 2018 (sales of €6.9m in 2018).

LISI MEDICAL

   - Sales down -4.6% from 2017;
   - Numerous product developments have adverse effects on business and profitability;

The beginning of the 2019 financial year promises to be encouraging for the aerospace division in line with the fourth quarter of 2018. Visibility remains limited, however, especially in the car industry in the second half of the year. Assuming stable key markets, the Group aims in 2019 to return to a positive organic growth, to exceed its financial performance of 2018 thanks to the management measures already taken and to keep generating a largely positive Free Cash Flow.