LISI (EPA:FII) - Q1 Financial information

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26/04/2017 17:41

FINANCIAL INFORMATION

Quaterly Consolidated sale
   In million euros


2017     444,30

2016      388,0  406,0 380,0  397,0
            Q1     Q2    Q3     Q4

EBIT* & Net Profit in EURM

EBIT   131,7**   146,5   157,5

RN      81,4      81,8   107,0

        2014      2015   2016

LISI Group announces a 14.5% revenue growth in Q1 2017, supported by organic
growth of nearly 10%

* LISI AEROSPACE : +11.7%
  o European market extremely dynamic
  o Sustained ramp-up of new programs

* LISI AUTOMOTIVE : +6.6%
  o Steady European market Increased contribution from new developments
  launched in previous years

* LISI MEDICAL : +103.1%
   o Organic growth: +11.5%

Revenue in EURm                       Changes
                                                     2017 / 2016
                            2017  2016  2017/2016   On a like for
                                                      like basis
Cumulative as of March 31  444.3  388.0  14.5 %          9.9 %

On a like-for-like basis, the 9.9% increase in revenue in the first quarter of
2017 confirms the acceleration in organic growth recorded in 2016 (+3.6% in the
first half and +5.6% in the second half).

These consolidated figures are the result of the positive performance of the
Group's three divisions. The aerospace division gained +11.7%, benefiting from
a very dynamic European market and from the still sustained ramp-up of new
programs. In the automotive division, the growth rate is solid at +6.6% and
confirms the good trend of 2016. The division is also benefiting from a robust
European market (+8.4%) and from the developments initiated in recent years.
The medical division increased by +103.1% after the consolidation of LISI
MEDICAL Remmele with organic growth at 11.5%.

The difference between reported revenue and organic growth can be explained by:

* A positive impact related to the consolidation of acquisitions:

  o LISI MEDICAL Remmele (USA) was consolidated as of May 1st, contributing, as
    expected, EUR17.4 million or 3.9% of consolidated revenue,

  o Ankit Fasteners (India), following the purchase of a majority stake by the
    LISI Group, is contributing EUR1.4 million, or 0.3% of consolidated revenue

* The favorable impact of foreign currencies (EUR2.8 million)

* The disposal of Précimétal Fonderie de Précision (Belgium) on February
  2nd, 2017 (-EUR2.9 million) in 2016.

Consolidated revenues generated outside France account for 65% of consolidated
revenue, or EUR287.9 million in total, stable compared to 2016 (62%; EUR241.7
million).

Sales in million euros
  End of March

248,5   277,5  120,9  128,9  18,7  37,9
  2016   2017    2016  2017   2016  2017
   AEROSPACE     AUTOMOTIVE    MEDICAL

                             REVIEW BY DIVISION

LISI AEROSPACE (62% of the consolidated total)

* Sustained organic growth in a solid European market
* Fast ramp-up of new programs
* First signs of recovery in businesses generated with Boeing in the United
  States, yet below expected levels
* Strong prospects in the commercial aircraft market

Revenue in EURm                                                  Changes
                             2017  2016     2017/2016          2017 / 2016
                                                            On a like for like
                                                                  basis
Cumulative as of March 31    277.5 248.5      11.7 %              11.7 %

At EUR277.5 million, Q1 2017 revenue increased by 11.7% compared to the same
period in the previous financial year (EUR248.5 million).

In line with 2016, the division is benefiting from the continuing rapid ramp-up
of new programs on the European market. The "Fasteners Europe" segment grew by
+20.1% with the completion of deliveries for the assembly line of the A350. The
"Fasteners North America" segment reported an increase in shipments to Boeing
over the quarter but did not return to levels recorded prior to the aircraft
manufacturer's reorganization in 2016. The "Structural Components" segment,
whose products are mainly for the European market, is also experiencing
satisfactory growth of +8.9%.

On a like-for-like basis, taking into account the foreign exchange effect,
sales rose by +11.7%.

In terms of operations, the structuring projects launched by the division are
on track with the announced roadmap: service rate targets for the new programs
and the modernization plan for the "Forging" segment are in line with
objectives.

Production facilities of the "Fasteners" segment benefits not only from a
favorable volume effect in Europe but also from the productivity gains
resulting from the implementation of the LEAP plan (LISI Excellence Achievement
Program) which includes the deployment of the robotization project.

Comments on performance and outlook

The commercial aircraft segment continues to enjoy good visibility, in
particular regarding single-aisle aircraft and new programs. The confirmation
that Boeing's order books are picking up still remains an area of focus. By the
end of the current financial year, it should make it possible to offset the
expected slowdown in the "Fasteners Europe" business after the peak of activity
caused by the initial allocation phase of the Airbus A350 program.

Other market segments served by LISI AEROSPACE, including helicopters, military
and business aircraft, as well as regional aircraft, are experiencing
persistent difficulties.

The ambitious ramp-ups of the new programs initiated since 2016, although
largely anticipated, raise real challenges that the LISI Group will continue to
overcome. The  still significant costs of non-quality and industrialization of
parts with a high technical complexity dedicated to new programs (Airbus and
Safran) in various sites should continue to be gradually absorbed.

The Aerospace division is also continuing to modernize its production
facilities by investing in long-term projects, such as the development of new
products and the implementation of the "robotization" project.

% Sales Variation per division / N-1

LISI AUTOMOTIVE (29% of the consolidated total)

*Good trend observed in 2016 confirmed

*Organic growth in steady European markets

*Good dynamics in mechanical safety components and clipped solutions

Revenue in EURm                                               Changes
                              2017    2016   2017/2016      2017 / 2016
                                                         On a like for like
                                                               basis
Cumulative as of March 31    128.9    120.9   6.6 %            6.6 %

The division posted +6.6% growth for the first quarter compared to last year.
It is the "Mechanical Safety Components" business that fully benefits from the
new developments of recent years and which, therefore, is showing the strongest
increase. The "Clipped Solutions" segment also contributed to this good
performance, while the "Threaded Fasteners" business lagged behind.

The general level of demand is still sustained by LISI AUTOMOTIVE's exposure to
Europe (market: +8.4%). One should mention in particular the dynamism of OEMs
as well as of German manufacturers. Order intake for new products in the
"Clipped Solutions" and "Safety Mechanical Components" segments remains strong
and has represented over 10% of revenue since the beginning of the year.

Comments on performance and outlook

In terms of operations, "Clipped Solutions" and "Security Mechanical
Components" Business Groups are enjoying the benefits of the gradual recovery
of most of the French sites in the "Threaded Fasteners" Business Group.
Improvement works to the Saint-Florent-sur-Cher site, launched in 2016, are
producing encouraging initial results and will continue into 2017.

The division's logistics remains very good, enabling teams to focus on
streamlining the production organization, implementing the LISI Excellence
Achievement Program (LEAP), and increasing productivity, with view to improve
the return on actual investments.

The level of order intake remains very high, while the site in Monterrey
(Mexico) confirms the interest of LISI AUTOMOTIVE customers for this
geographical area. The same goes for projects launched in China (Shanghai
plant).

LISI MEDICAL (9% of the consolidated total)

Good level of order intake and business with existing clients and new clients
(orthopedics and minimally invasive surgery)

Good consolidation of LISI MEDICAL Remmele

Revenue in EURm                                               Changes
                              2017    2016   2017/2016      2017 / 2016
                                                         On a like for like
                                                               basis
Cumulative as of March 31     37.9    18.7    103.1 %          11.5 %

On a like-for-like basis and at constant exchange rates, first quarter revenues
were up on previous quarters, confirming the development of existing products
and the gradual ramp-up of clients' new programs.

In line with expectations, since May 2016 the division has benefited from the
consolidation of LISI MEDICAL Remmele (United States), which contributed
EUR17.4 million in revenue over the period.

In terms of operations, the division's French sites confirm the progress
achieved since 2016. The sites of LISI MEDICAL Remmele reach performance levels
that are in line with expectations.

Comments on performance and outlook

The division is consolidating its fundamentals and its positioning as a
reference supplier for its customers. The integration of LISI MEDICAL Remmele
also provides higher visibility in the market and opens new prospects for
organic growth.

PROSPECTS AND COMMENTS ON THE FINANCIAL IMPACT OF THE BUSINESS

All of the divisions of the LISI Group operate in buyoant markets with
prospects for strong development.

For LISI AEROSPACE, the main point of attention for the coming months will be
the control over industrialization costs of the "Structural Components" segment
in the rapid ramp-up of new programs. The confirmation of the resumption of the
Boeing business in the United States will also remain an area of focus.

LISI AUTOMOTIVE shows tangible signs of improvement in its performance and good
progress in international projects.

LISI MEDICAL will benefit, as expected, from the full-year consolidation of
LISI MEDICAL Remmele, which opens up promising prospects for organic growth
with new and very dynamic markets for medical devices outside orthopedics.

After this positive first quarter, the Group confirms its objectives to grow
its business and its current operating profit, as well as its Free Cash Flow(1)
in value terms for 2017, with a more balanced contribution from all
divisions.

(1)Free Cash Flow: net operating cash flow minus net CAPEX and changes in
   working capital requirements

CONTACTS

Emmanuel VIELLARD
CEO
Mail: emmanuel.viellard@lisi-group.com

Tel: : +33 3 84 57 00 77 - Fax : +33 3 84 57 02 00
Website: www.lisi-group.com

TRADING AGREEMENT: ODDO CORPORATE - Tel. +33 (0)1 40 17 52 89

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