LACROIX Group — Earnings Release 2019

May 13, 2019

LACROIX Group Half-Year revenue Financial Year 2018-2019 (Released 13/05/19 after trading hours)

Stable revenue in the first half-year

LACROIX Group posts a +1.1% revenue growth in the second quarter and +0.5% in the first half of the year.

The sales of electronic equipment for third-parties (LACROIX Electronics), still showing a slight decline in the first half-year (-2.6% vs previous year), improved in the second quarter (-0.7%) compared with the first quarter (-4.7%).

As earlier mentioned, this business area has better prospects for the second half-year. However, although the annual growth is confirmed, it should be lower than initially forecasted, as it is affected by the slower automotive market in the early part of the fiscal year and the temporary production stoppage resulting from a fire which partially damaged the Tunisian site at the end of April.

On the contrary, LACROIX Group reports very dynamic sales in infrastructure management equipment, in particular on the Water market. This favorable evolution is driven by the integration of SAE IT-systems acquired on February 1st (+€2.4M).

Following this acquisition, the Group creates a new business area called LACROIX Environment, now comprising LACROIX Sofrel and SAE IT-systems, and addressing the Water, Energy and Smart Grids markets as technological equipment supplier for the Smart Environment.

(in million Euros)	HY 18/19	HY 17/18	Variation N/N-1
LACROIX City	50.1	49.4	+ 1.4 %
LACROIX Environment	26.1	21.2	+ 23.1 %
LACROIX Electronics	162.8	167.1	- 2.6 %
Total LACROIX Group	239.0	237.8	+ 0.5 %

(*) The figures do not take into account the impact of IFRS 15 currently under validation by our auditors

LACROIX Group confirms that its annual results are following the growth trajectory presented in January, although the revenue growth over the year should be lower than initially forecasted.