Universal Registration Document 2019

24 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 Fourth quarter activity Compared to the same period during the previous year, fourth‑quarter sales revenue increased by 5.0%. The Group also confirmed a return to organic growth since the beginning of the financial year (Q1 2019: +1.0%; Q2: +1.6%; Q3: +5.7% ; Q4: +5.0%). Analysis by division LISI AEROSPACE sales revenue totaled €996.6million in 2019 (+6.7% compared to 2018). The impact of stronger currencies (primarily the American dollar against the euro) inflated growth by a further €30.0 million. In Europe, the Fasteners activity boosted this positive trend with a rise in delivery rates of single-aisles (up 22.4% in Q4). In North America (up 18.4% in Q4), business remained strong in non-commercial aviation markets (business, military and helicopters), which offset the effects of a fall in production for the Boeing B737 MAX program. However, the Structural Components activity (down 17.6% in Q4) was hit both by the deconsolidation of Indraero Siren and LISI AEROSPACE Creuzet Maroc from July 1, 2019, andby the fall in production for theBoeingB737MAXLEAP-1B engine. This fall was only partially offset by the increase in production of the LEAP-1A engine. At constant scope and exchange rate, sales revenue for the LISI AEROSPACE Division was up 8.3% in Q4 compared with 2018, and up 6.7% on a full-year basis. Sales by the LISI AUTOMOTIVE Division increased by 1.2% to €587.9M. This growth is linked to its international development (Hi-Vol consolidated since November 1, 2018). At constant scope and exchange rate, the sales revenue was down 3.3% (down 1.2% in Q4). The division is therefore faring better than its main customers, whose production fell by an estimated 7.4% compared to the previous year. Over recent years, high added value activities such as Clipped Solutions and Safety Mechanical Components have proven to be the most resilient. These activities have been able to ramp up delivery of new products and acquire market shares. Emerging synergies between American company Termax and long-standing Clipped Solutions sites have also boosted sales revenue. The activity most impacted by lower volumes is Threaded Fasteners, both in France and Germany. As expected, the LISI MEDICAL Division reaped the benefits of the ramp-up in newproducts gained in the field ofminimally- invasive surgery as well as a positive foreign exchange effect, which has offset a slowdown at the Division’s two small sites, LISI MEDICAL Fasteners (Neyron, France) and LISI MEDICAL Jeropa (United States), as well as a sharp fall in the dental sector. The major contract between LISI MEDICAL and Stryker Corp was renewed for three years. The sales revenue for the year therefore rose by 11.9% to €146.2 million, reflecting organic growth of 8.8%. Activity summary at December 31 (after application of IFRS 16 on January 1, 2019) 12 months ending December 31 2019 2018 Changes KEY ELEMENTS OF THE INCOME STATEMENT Sales revenue € millions 1,729.5 1,645.1 +5.1% EBITDA € millions 273.2 225.4 +21.2% EBITDA margin % 15.8 13.7 +2.1 pts Current operating profit (EBIT) € millions 155.1 135.6 +14.4% Operating margin % 9.0 8.2 +0.8 pt Earnings attributable to holders of company equity € millions 69.8 92.1 -24.2% Net earnings per share € 1.31 1.73 -24.3% KEY ELEMENTS OF THE CASH FLOW STATEMENT Operating cash flow € millions 221.3 194.9 +26.4 M€ Net CAPEX € millions -116.8 -131.3 -14.5 M€ Free cash flow* € millions 101.5 57.3 +44.2 M€ KEY ELEMENTS OF THE FINANCIAL STRUCTURE Net debt € millions 331.9 339.3 -7.4 M€ Ratio of net debt to equity % 32.5 36.0 -3.5 pts • Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements