THE LISI GROUP DELIVERS IMPROVED FINANCIAL PERFORMANCE IN THE FIRST HALF OF 2019, IN LINE WITH OBJECTIVES

• Target of return to organic growth reached in the half-year with activity up +1.3% versus the first half of 2018
• Current operating income up to €72.8 million, or 8.2% of sales, with mixed divisional performance
• Net income down, mainly due to the disposal of Indraero Siren (Argenton-sur-Creuse) and LISI AEROSPACE Creuzet Maroc
• Free Cash Flow increased to a robust level of €48.9 million as capital expenditure are stabilizing
• Decrease in net financial debt, excluding impact of +€71.6 million resulting from the first application of IFRS 16
• Targets reaffirmed: positive organic growth and Free Cash Flow, increase in financial performance

LISI AEROSPACE (57% of total consolidated sales)

• Return to positive organic growth in the "Europe Fasteners" segment in the second quarter confirmed strengthening of demand in North America
• "Structural Components" activity supported by the ramping up of the LEAP engine
• Accelerating effect of currencies, especially the dollar
• EBIT up to €58.9 million, or 11.6% of sales, driven by volume increases and the effects of cost reduction measures initiated in 2018
• Free Cash Flow still highly positive

LISI AUTOMOTIVE (35% of total consolidated sales)

• Activity level down in the line withthe fourth quarter of 2018 and with the trend of European markets, down over the first half of the year, and the Chinese market which posted an even sharper decline
• Market share gains and industrialization of new products in high added value segments
• Operating margin under pressure due to the very significant adjustment of production to prioritize cash generation by lowering inventories
• Consolidation of the US company Hi-Vol progressing as per plan and highly positive contribution from Termax

LISI MEDICAL (8% of total consolidated sales)

• Return to organic growth in the half-year thanks to the ramp-up of new products
• Operating income under pressure due to the insufficient workload of the two small production sites, despite the turnaround at of LISI MEDICAL Remmele

The Group's annual consolidated outlook should be a positive natural continuation of the first half trend. The aeronautical performance of the second half of the year should largely offset the lack of recovery of the LISI AUTOMOTIVE division as well as the differences in capacity utilization among LISI MEDICAL division's sites.

The Group therefore confirms it is targeting to return to positive organic growth, to improve its financial performance of 2018 and to generate a good level of Free Cash Flow.