LISI ACHIEVED ONCE AGAIN EARNINGS GROWTH OBJECTIVES

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1 LISI ACHIEVED ONCE AGAIN EARNINGS GROWTH OBJECTIVES Press release Belfrt, February 14, 2018 Earnings grwth: Revenue: 1.64 Bn, up 72 M (+4.6%) LISI Aerspace has crssed the 1 Bn revenue mark and LISI Autmtive that f 500 M; Cntributin f external grwth transactins cmpleted in the United States in 2016 (LISI MEDICAL Remmele) and 2017 (TERMAX) ffset an unfavrable dllar effect; Organic grwth: +3.6%; strng in the first half (+6.1%), mre limited in the secnd half f the year (+1.0%); Operating incme up by nearly 14 M (+8.9%) Cntributin up acrss all three divisins; Operating margin imprved by 0.4 pint t 10.4%; Net incme stabilized at a high level ( 108 M), despite a highly negative financial result ( M) due t currency fluctuatins Free Cash Flw highly psitive despite an unfavrable currency impact ( M) and a recrd level f capital expenditures; Net debt under cntrl after the acquisitin f TERMAX; Prpsed dividend: 0.48 per share; 2018 bjectives: imprvement in perfrmance and strategic curse maintained. February 14, The LISI Bard f Directrs met under the chairmanship f Mr. Gilles Khler and reviewed the audited financial statements fr the perid ended December 31, They will be submitted fr apprval t the General Meeting n April 24, mnths ending December 31, Changes Key elements f the incme statement Revenue M 1, , % EBITDA M % EBITDA margin % pt Operating result (EBIT) M % Operating margin % pt Earnings attributable t hlders f cmpany equity M % Net earnings per share % Key elements f the cash flw statements Operating cash flw M M Capital expenditure, net M M Free Cash Flw* M M Key elements f the financial structure Net debt M M Rati f net debt t equity 33.4% 25.2% +8.2 pts * In this press release, Free Cash Flw refers t cash flw minus net industrial investments and changes in wrking capital requirements (WCR). 1

2 Revenue reached 1,643.4 M, an increase f 72.3 M (+4.6%), with rganic grwth f 3.6%. At 1,643.4 M, cnslidated revenue fr fiscal 2017 were up +4.6% and reflect the fllwing elements: a scpe effect f 21.7 M crrespnding t: a negative impact f M r 0.8% f cnslidated sales, reflecting the sale f Précimétal Fnderie de Précisin (Belgium) n February 2, 2017; the 22.8 M incremental cntributin, i.e. 1.4% f cnslidated sales, f LISI MEDICAL Remmele, which has been integrated since May 1, 2016; 12.3 M, r 0.75% f cnslidated sales, brught by the integratin within LISI AUTOMOTIVE f the US cmpany TERMAX, a leading designer and manufacturer f metal and plastic clipped fastening slutins fr car bdies, effective since Nvember 1, 2017; an adverse effect f M due t currency fluctuatins; 60.8 M generated by rganic grwth. M LISI Cnslidated f which LISI AEROSPACE f which LISI AUTOMOTIVE f which LISI MEDICAL Q Q Organic grwth H1 2017/H % +7.4% +3.7% +7.1% Q Q Organic grwth H2 2017/H % - 1.1% +9.6% -8.6% , , Expressed at a cnstant scpe and exchange rates, revenue are up +3.6% (+4.6% in 2016). Half-yearly analysis Organic grwth slwed dwn in the secnd half (+1.0%), particularly in the LISI AEROSPACE and LISI MEDICAL divisins after a sustained first half (+6.1%). The LISI AUTOMOTIVE divisin enjyed gd mmentum. Quarterly analysis Cmpared with the same perid last year, the furth quarter psted verall rganic grwth f +2.8%, mainly driven by the "Structural Cmpnents" segment in the aerspace industry and the entire LISI AUTOMOTIVE divisin. Aerspace "Fasteners" and the Medical Divisin shwed n sign f imprvement ver the furth quarter f the previus year. Divisinal analysis On a like-fr-like basis and restated fr the currency effect, LISI AEROSPACE's annual revenue grwth std at +3.3%. The decline f the divisin in the secnd half (-1.1%) cmpared t the first (+7.4%) is mainly attributable t the "Fasteners" activity in Eurpe: in fact, this has been negatively affected 2

3 nt nly by Airbus's destcking, but als by the acceleratin f the dllar depreciatin against the eur. In the United States, the "Fasteners" activity is picking up steam at Being, while the active repsitining f LISI AEROSPACE with the distributin sectr is hampered by the lw level f activity in business and reginal aircraft. The "Structural Cmpnents" shwed gd mmentum thrughut the year, thanks in particular t the cntinued ramp-up f the new prgrams, including the LEAP engine. Sales at the LISI AUTOMOTIVE divisin accelerated between the first and secnd half (+3.6% in H1, +14.4% in H2) in a Eurpean market that remained rbust. The increase in revenue is particularly nticeable in the "Clipped Slutins" and "Safety Mechanical Cmpnents" segments; it reflects the gains in market share and the ramping up f new prducts. Revenue thus reached the histrical level f M, up +8.8% cmpared t 2016, with +6.5% rganic grwth supprted by a strng rder intake fr new prjects at mre than 10% f sales. The LISI MEDICAL divisin benefited frm the full year effect f the integratin f LISI MEDICAL Remmele (incremental sales revenue f 22.8 M ver the perid). At cnstant scpe and exchange rates, sales decreased by -2.3% with a secnd half-year shwing a net drp (-8.6%) cmpared with the first (+7.1%). LISI MEDICAL Remmele had t cpe with a temprary shift in the ramping up f sme f its prducts in the field f minimally invasive surgery and was als affected by the reassignment f tw significant prducts t ther prductin prcesses. Operating incme increased by 14 M, bringing the perating margin up t 10.4%, an imprvement f 0.4 pint. At M, EBITDA rse by +8.0% ( M) and amunted t 15.6% f sales. The perating prfit (EBIT) increased by 13.9 M (+8.9%) t M, despite an unfavrable currency effect f -5.3 M. The perating margin reached 10.4%. Up 0.4 pint frm 2016, it is in line with the Grup's bjectives, given the evlutin f its business mix. This perfrmance is attributable t an imprvement in the peratinal quality acrss the all Grup. The cntributin frm the prductivity gains f the LEAP prgram (LISI Excellence Achievement Prgram), the gradual rerientatin f the activities f the autmtive divisin twards prduct ranges that yield higher margins, as well as the effects f the capital expenditure prgram, have been decisive. In additin, and in accrdance with its cmmitments, the Grup halved the additinal csts generated in the phase f steep ramp-up f the new prgrams in the "Structural Cmpnents" segment. The psitive prductivity effects f rbtics and the reductin in the cst f launching new prducts and shuld als be nted. The year 2017 cnfirms the gradual rebalancing f the cntributin f the three divisins. All saw their perating prfit increase in value cmpared t the previus year. If the Aerspace Divisin remains the largest cntributr t the cnslidated perating incme (75% f the Grup; 78% in 2016), the Autmtive Divisin imprved its prfitability t 6.6%. The Medical Divisin psted perating incme up M, r 7.1% f sales. The strngly negative impact f the financial result ( M), cmpared t 2016 ( M), is explained by the fllwing main factrs: the financial expenses, crrespnding t the cst f the lng-term net debt, amunted t M (- 5.1 M in 2016), i.e. an average fixed rate f 2.01% (1.70 % in 2016). This rate increase is ffset by gains generated n current cash investments (+ 2.7 M vs M in 2016); the revaluatin f debts and receivables mainly denminated in dllars ( M vs M in 2016). Receivables and investments in freign currencies were mechanically affected by the sharp drp f this currency against the eur; the psitive impact f the valuatin f currency hedging instruments ( M vs M in 2016). Nn-current csts weighed dwn the net result fr M ( M in 2016) and mainly relate t cnsulting fees related t the relcatin f the Blgne site (Haute-Marne). 3

4 The tax expense, calculated n the basis f the crpratin tax as a percentage f net incme befre taxes, reflects an effective average rate f 26.8%, dwn frm 33.7% in Restated frm ne-ff items (rate change in France and the United States, additinal cntributin and censrship f the 3% dividend cntributin in France, transitin tax in the United States). The effective tax rate wuld be 31.1%. At M, net incme exceeds that f 2016 ( M). Per share, it amunts t 2.04 ( 2.02 in 2016). Based upn these results, the Grup will ask the Sharehlders' General Meeting t apprve setting the dividend at 0.48 per share fr the 2017 financial year. The gd level f prfitability achieved in 2017 largely financed the recrd amunt f capital expenditures while generating a highly psitive Free Cash Flw. Cash flw reached M (+ 8.0 M, 12.4% f cnslidated sales, cmpared t M in 2016). In a cntext f strng grwth, the Grup managed t reduce its inventry again: expressed in days f sales, it decreased by 7 days cmpared t the 2016 financial year, a gain f nearly tw weeks in tw years. Thrugh strict management discipline, custmer late payment rates have been reduced, lwering cnslidated wrking capital requirements t 74 days in 2017 (76 days in 2016). In line with previus years, LISI cntinued its capital expenditures in 2017 at sustained pace: up by mre than 20 M, capital expenditures represent 8.5% f sales and were mainly devted t: differentiating technical initiatives acrss the divisins (rbtizatin); initiating the last phase f the Villefranche-de-Ruergue prject; the peratinal start-up f the Frge 2020 prject (Blgne site); increase in the capacity dedicated t the manufacturing f new prducts. The Grup was nnetheless able t finance the capital expenditure prgrams while generating psitive Free Cash Flw f 46.3 M despite an unfavrable currency impact f M. LISI enters 2018 with a healthy financial structure In a 2017 fiscal year marked by an unprecedented amunt f investment, LISI has maintained a sund financial structure. Thus, the return n capital emplyed (befre tax) displays gd resistance: it std at 15.0% at the end f the year, cmpared with 15.5% as at December 31, The increase in net financial debt, which includes 100% f the acquisitin f TERMAX 1, was limited t 82.0 M and amunted t M as at December 31, It represents 33.4% f sharehlders equity (25.2% in 2016 and 1.2 x EBITDA). LISI AEROSPACE The billin eur revenue mark is crssed fr the first time, with a strng disparity in rganic grwth between the first (+7.4%) and the secnd (-1.1%) half f the year; Imprvement f all the management indicatrs versus the prir year, with a sharp cntrast between the first and secnd half f the year, the latter being affected by the temprary adjustment f Airbus inventries and the adverse effect related t the decline f the dllar against the eur; Psitive Free Cash Flw after a sharp increase in capital expenditures (+11.0%); Challenging start t 2018 in line with the secnd half f It shuld be recalled that the acquisitin f TERMAX was structured in tw stages: as a first step, the sharehlders f TERMAX Crpratin sld 51% f the capital t LISI AUTOMOTIVE fr apprximately 51 M. While the LISI Grup is expected t acquire the balance f the capital by 2020, it has decided t recgnize as f December 31, 2017 the entire crrespnding debt, i.e. apprximately 123 M. 4

5 Revenue (in M) 1, Change +3.3% On a cnstant scpe and exchange rate basis Operating prfit % As a % f revenue 12.8% 12.4% +0.4 pt Free Cash Flw ( M) M As a % f revenue 6.2% 3.3% +2.9 pts LISI AUTOMOTIVE Revenue exceeded 500 M fr the first time; New increase in rder intake fr new prducts and accelerated grwth in internatinal markets; 5 th cnsecutive year f imprvement in perating margin, reflecting the strategy f changing the prduct mix twards mre value-added prducts; psitive Free Cash Flw fr the secnd year in a rw, with significant imprvement cmpared t 2016; Gd visibility ver fiscal year 2018, driven by new prducts and by the full-year benefits frm TERMAX's cntributin Change Revenue (in M) % On a cnstant scpe and exchange rate basis Operating prfit % As a % f revenue 6.6% 5.7% +0.9 pt Free Cash Flw ( M) M As a % f revenue 2.6% 1.7% +0.9 pt LISI MEDICAL The Divisin's perfrmance is impaired by a very unfavrable vlume effect in the secnd half at LISI MEDICAL Remmele as well as by an increase in medical care expenses; Increase in perating incme in value; Further grwth in Free Cash Flw with a dubling f investments cmpared t 2016; Cntinued drp in inventries reaching the histrically lw level f 61 days; Gradual ramp-up f new prjects expected in

6 Change Revenue (in M) % On a cnstant scpe and exchange rate basis Operating prfit % As a % f revenue 7.1% 7.8% -0.7 pt Free Cash Flw ( M) M As a % f revenue 4.9% 3.1% +1.8 pt OUTLOOK Challenges will abund in 2018: LISI AEROSPACE: the cmpletin f numerus challenging prjects, including the relcatin f the Plish site dedicated t the finishing f blades, the further reductin in the additinal csts f industrializatin, cmpliance with the delivery prgrams in the "Structural Cmpnents" segment, the adaptatin t a slwer activity in " Fasteners" in Eurpe with a significant impact expected fr the first part f the year; LISI AUTOMOTIVE: the industrial materializatin f new rders, the extensin f the Czech site specializing in the prductin f safety mechanical cmpnents, the "Delle f the Future" prject, the effective ability t pass higher raw materials csts int selling prices; LISI MEDICAL: back t verall grwth. The Grup is fully cmmitted t achieving a duble-digit current perating incme, a psitive Free Cash Flw and a grwth in value f its perating indicatrs, in a cntext f currency vlatility. The pursuit and deplyment f many structuring industrial prjects (rbtizatin and prductivity imprvement, innvatin), the launch f the first initiatives in the field f the digitizatin f prductin, all aim at prviding technlgical lead t cnslidate its [cmpetitive] differentiatin in a sustainable manner in well-riented markets ver time. Cntact Emmanuel Viellard Tel: +33 (0) emmanuel.viellard@lisi-grup.cm Website: The next annuncements will appear after clse f trading n Paris Eurnext Sharehlders' General Meeting: April 24, 2018 Q financial infrmatin: April 25, 2018 H results: July 25, 2018 Q financial Infrmatin: Octber 24, 2018 The LISI share is listed n Eurnext, cmpartment A and belngs t the CAC AERO & DEF., CAC All Shares, CAC Industrials indices, under the ISIN cde: FR LISI is a wrldwide leading manufacturer f fasteners and assembly cmpnents fr the Aerspace, Autmtive, and medical implants industries. Reuters:GFII.PA Blmberg:FII FP 6

7 LISI Grup cnslidated balance sheet ASSETS (in '000) 31/12/ /12/2016 LONG-TERM ASSETS Gdwill Other intangible assets Tangible assets Lng-term financial assets Deferred tax assets Other lng-term assets Ttal lng-term assets SHORT-TERM ASSETS Inventries Taxes Claim n the state Trade and ther receivables Cash and cash equivalents Ttal shrt-term assets TOTAL ASSETS TOTAL EQUITY AND LIABILITIES (in '000) 31/12/ /12/2016 SHAREHOLDERS' EQUITY Share capital Additinal paid-in capital Treasury shares (14 720) (14 610) Cnslidated reserves Cnversin reserves Other incme and expenses recrded directly as sharehlders' equity (13 452) Prfit (lss) fr the perid Ttal sharehlders' equity - Grup's share Minrity interests Ttal sharehlders' equity LONG-TERM LIABILITIES Lng-term prvisins Nn-current financial debts Other lng-term liabilities Deferred tax liabilities Ttal lng-term liabilities SHORT-TERM LIABILITIES Shrt-term prvisins Shrt-term brrwings Trade and ther accunts payable Taxes due Ttal shrt-term liabilities TOTAL SHAREHOLDERS EQUITY AND LIABILITIES Of which banking facilities

8 LISI Grup cnslidated incme (in '000) 31/12/ /12/2016 Pre-tax sales Changes in stck, finished prducts and prductin in prgress (884) (1 519) Ttal prductin Other revenues (a) Ttal perating revenues Cnsumed gds ( ) ( ) Other purchases and external expenses ( ) ( ) Taxes and duties (b) (12 171) (11 353) Persnnel expenses (including temprary emplyees) (c) ( ) ( ) EBITDA Depreciatin (90 132) (80 872) Net prvisins EBIT Nn-recurring perating expenses (7 329) (12 950) Nn-recurring perating revenues Operating prfit Financing expenses and revenue n cash (2 421) (4 420) Revenue frm cash Financing expenses (5 866) (5 566) Other interest revenue and expenses (19 166) Other financial items Other interest expenses (80 018) (37 639) Taxes (f which CVAE (Tax n Cmpanies Added Value)) (b) (39 182) (54 443) Share f net incme f cmpanies accunted fr by the equity methd 0 0 Prfit (lss) fr the perid attributable as cmpany sharehlders equity Interest nt granting cntrl ver the cmpany (1 014) (619) Earnings per share (in ) 2,02 2,00 Diluted earnings per share (in ) 2,02 2,00

9 LISI Grup cnslidated cash flw table (in '000) 31/12/ /12/2016 Operating activities Net earnings Elim. f the incme f cmpanies accunted fr by the equity methd Eliminatin f net expenses nt affecting cash flws: - Depreciatin and nn-recurrent financial prvisins Changes in deferred taxes Incme n dispsals, prvisins fr liabilities and thers (1 932) 911 Grss cash flw margin Net changes in prvisins prvided by r used fr current peratins (1 335) Operating cash flw Incme tax expense (revenue) Eliminatin f net brrwing csts Effect f changes in inventry n cash Effect f changes in accunts receivable and accunts payable (23 729) Net cash prvided by r used fr peratins befre tax Taxes paid (64 298) (29 807) Cash prvided by r used fr peratins (A) Investment activities Acquisitin f cnslidated cmpanies (51 014) (92 136) Cash acquired (1 973) Acquisitin f tangible and intangible fixed assets ( ) ( ) Acquisitin f financial assets Change in granted lans and advances (722) (746) Investment subsidies received Dividends received Ttal cash used fr investment activities ( ) ( ) Divested cash (5 701) 36 Dispsal f cnslidated cmpanies Dispsal f tangible and intangible fixed assets Dispsal f financial assets Ttal cash frm dispsals Cash prvided by r used fr investment activities (B) ( ) ( ) Financing activities Capital increase Net dispsal (acquisitin) f treasury shares Dividends paid t sharehlders f the Grup (23 873) (20 629) Dividends paid t minrity interests f cnslidated cmpanies Ttal cash frm equity peratins (21 954) (20 598) Issue f lng-term lans Issue f shrt-term lans Repayment f lng-term lans (35 309) Repayment f shrt-term lans ( ) (45 143) Net interest expense paid (5 680) (5 782) Ttal cash frm peratins n lans and ther financial liabilities Cash prvided by r used fr financing activities (C) Effect f change in freign exchange rates (D) (2 976) (8 149) Effect f adjustments in treasury shares (D) * (110) (762) Changes in net cash (A+B+C+D) Cash at January 1st (E) Cash at year end (A+B+C+D+E) Cash and cash equivalents Shrt-term banking facilities (16 440) (15 984) Clsing cash psitin

10 Change in LISI Grup cnslidated sharehlders' equity (in '000) Share capital Capital-linked premiums Treasury shares Cnslidated reserves Cnversin reserves Other incme and expenses recrded directly as sharehlders' equity Prfit fr the perid, grup share Grup's share f sharehlders' equity Minrity interests Ttal sharehlders' equity Sharehlders' equity at January 1, (14 740) (2 652) Prfit (lss) fr the perid N (a) (619) Translatin differential (b) (2 856) (2 856) (18) (2 874) Payments in shares (c) Capital increase Restatements f treasury shares (d) Restatements as per IAS19 (g) (3 519) (3 519) (3 519) Apprpriatin f N-1 earnings (81 764) 0 0 Change in scpe Dividends distributed (20 629) (20 629) 0 (20 629) Reclassificatin 0 0 Restatements f financial instruments (f) (8 980) (8 980) (48) (9 028) Varius (e) (4 852) (4 852) (4 852) Sharehlders' equity at December 31, (14 610) (15 056) including ttal revenues and expenses psted fr the perid (a) + (b) + ( c) + (d) + ( e) + (f) (2 856) (12 405) (685) Sharehlders' equity as at January 1, Prfit (lss) fr the perid N (a) (1 014) Translatin differential (b) (19 324) (19 324) 73 (19 251) Payments in shares (c) Capital increase Restatements f treasury shares (d) (110) Restatements as per IAS19 (g) Apprpriatin f N-1 earnings ( ) 0 0 Change in scpe (57 244) (57 244) 0 (57 244) Dividends distributed (23 872) (23 872) 0 (23 872) Reclassificatin 0 0 Restatements f financial instruments (f) Varius (e) Sharehlders' equity at December 31, (14 720) including ttal revenues and expenses psted fr the perid (a) + (b) + ( c) + (d) + ( e) + (f) + (g) (19 324) (855)