LUMIBIRD — Earnings Release 2021

Mar 17, 2022

Lannion, March 17, 2022 5:45pm

2021 EARNINGS: INITIAL TARGET ACHIEVED FOR AN EBITDA/REVENUE RATIO OF OVER 20%

•

• Continued increase in profitability for the Medical division, driven by the successful integration of Ellex
• Financial position adapted to the growth strategy

The LUMIBIRD Group, the European leader for laser technologies, achieved an EBITDA/revenue ratio of 20.1% in 2021, within the target range of 20% to 25%. This performance was supported by double-digit organic growth and an increase in the gross margin rate, particularly for the Medical division. After achieving this first target, LUMIBIRD is confirming its strategic objectives to double its reported revenues between 2020 and 2023, driven by organic and external growth, while increasing its EBITDA/revenue ratio within a 20%-25% range.

At 31	2020 reported	2021	Reported change		2020	Proforma change
			Value	%	Proforma1	Value	%
Revenues	126.7	162.5	+35.7	+28%	146.7	+15.8	+11%
EBITDA	23.7	32.6	+26.5	+34%	26.1	+6.6	+25%
% revenues	18.7%	20.1%			17.8%
Current operating income	14.1	19.8	+5.6	+40%	15.6	+4.2	+27%
% revenues	11.2%	12.2%			10.6%
Operating income	8.7	19.1	+10.5		10.1	+9.1
Pre-tax income	7.2	17.6	+10.4		7.1	+10.5
Net income	5.6	13.9	+8.2		4.4	+9.5

Extract from the condensed consolidated full-year financial statements approved by the Board of Directors on March 17, 2022

(1) Considering the acquisition of Ellex on 01/01/2020 - the acquisition of Essmed, not significant on the 2020 results, has not been restated in this proforma. The proforma 2020 information corresponds to the proforma information reported in chapter 4 - section 7 of the URD 2020, which has been subject to specific due diligence by the auditors, and specified in their report on the proforma 2020 financial information, chapter 4 - section 8 of the URD 2020.

Note: As the acquisition of Ellex on June 30, 2020 was a key development for the Group, it seemed more relevant to analyze the financial results for 2021 in relation to proforma results for 2020, i.e. considering The acquisition of Essmed, not significant on the 2020 results, has not been restated in this proforma.

Proforma organic growth of 11%

reported data and +11% proforma, with strong growth for both Photonics and the Medical division.

Industrial and Scientific segment, and particularly OEM activities for flat screen and medical applications, with full-As forecast, the Defense / Space segment contracted (- ) due to the planned scaling back of the MegaJoule program, partially offset by the growth in non-contract sales.

integration of Ellex and Optotek, characterized by the rapid activation of major commercial

Strong growth in profitability for the Medical division

I m	2020 proforma			2021
	Photonic	Medical	TOTAL	Photonic	Medical	TOTAL
Revenues	68.8	77.9	146.7	76.4	86.1	162.5
EBITDA	14.3	11.8	26.1	16.1	16.5	32.6
% of revenues	20.8%	15.1%	17.8%	21.1%	19.2%	20.1%
Current op. income	8.0	7.5	15.6	8.7	11.1	19.8
% of revenues	11.7%	9.7%	10.6%	11.3%	12.9%	12.2%

Summary of results for each division

EBITDA/revenue ratio of 20% to 25% in 2021. Income from representing 12.2% of revenues and a 27% increase compared with the 2020 proforma figure for income from ordinary operations.

• increase in the gross margin, reflecting the combined impact of growth in revenues
• h in the
• drive growing integration across the production facilities;

Operating 2020 included significant non-recurring expenses, primarily the cost of the payment fraud for

Pre-tax foreign exchange gains.

	2020	2021	Var.
Goodwill	69.2	70.3	1.1
Non-current assets (excl. Goodwill)	74.1	94.5	20.4
Current assets (excl. cash)	82.0	85.8	3.8
Cash and equivalents	80.3	97.1	16.8
TOTAL ASSETS	305.6	347.6	42.0
(Incl. minority interests)	163.7	181.3	17.6
Long-term financial liabilities1	71.5	97.9	26.4
Other long-term liabilities	13.0	10.5	(2.5)
Current financial liabilities	16.8	14.1	(2.7)
Current liabilities	40.6	43.8	3.2
TOTAL LIABILITIES	305.6	347.6	42.0

Balance sheet position adapted to the growth strategy

linked mainly to the higher level of equity and financial debt.

• income for the Group in 2021;
• Gross financial debt² as planned on
• December 31, 2020.

This financial position is enabling the Group to maintain its financial flexibility and its capacity to continue financing its ambitions for growth.

Cash flow analysis

	2020	2021
Net cash-flow from operations	13.1	26.6
Operating cash-flow before interests and tax	18.2	33.6
Change in WCR	(6.1)	(8.8)
Taxes paid	1.1	1.8
Net cash-flow from investing activities	(67.1)	(28.6)
Capital expenditures	(12.3)	(18.2)
External growth	(54.2)	(2.1)
Other financial assets investments	(0.6)	(8.3)

¹ Financial liabilities (current and non-current) include lease liabilities under IFRS 16.

² Gross financial debt corresponds to the sum of non-current financial liabilities and current financial liabilities, including lease liabilities under IFRS 16

LUMIBIRD PRESS RELEASE

Net cash-flow from financing activities	84.8	18.2
Capital increase	35.6	-
Net loans issuance	53.2	20.2
Financing cost	(1.4)	(2.2)
Other change	(2.6)	0.2
NET CASH FLOW3	30.7	16.1

Cash flow from es correspond to the second payment installment for the acquisition of Halo Photonics.

financial resources.

Outlook

-2023 roadmap, is to position itself as a leader - both technological and commercial - in the Photonics and Medical sectors, which results in:

• Further densifying its positions on the ophthalmology market diagnosis and treatment through a stronger global presence;
• Expanding its role as an original equipment manufacturer (OEM) for other operators in the medical sector;
• Further strengthening its positions on the LIDAR sensors markets, to support the development of the autonomous vehicle, wind power and 3D scanning markets;
• development in Europe and North America.

Since the start of 2022, LUMIBIRD has recorded a good level of orders, for both Photonics, across its three segments, and the Medical business. Thanks to its strategy to ramp up integration for the manufacturing of its key components, the Group is significantly reducing its exposure to the sourcing difficulties that are affecting the manufacturing sector globally. LUMIBIRD has also been relatively unaffected by the geopolitical tensions in Ukraine and Russia, whether in terms of its sales (less than 2% of revenues), its purchases (sourcing secured for 2022) or its client risk.

The operation to acquire the schedule set when the deal was signed at the start of 2020 and is expected to be completed during the second quarter of 2022. The investment in Cilas does not represent more than 37% of its capital for the moment, without a significant influence.

2023, with the combined impact of organic and external growth. In terms of profitability, looking and growing vertical integration are expected to contribute towards the target for the current EBITDA/revenue ratio to continue to grow within a 20%-25% range.

³ borrowings (cash liabilities) included in current financial liabilities on the liability side of the balance sheet

Next date: Q1 2022 revenues on April 25, 2022 after close of trading

LUMIBIRD is one of the world's leading specialists in lasers. With 50 years of experience and a mastering of solid state laser, laser diodes and fiber laser technologies, the Group designs, manufactures and markets high performance lasers for scientific (laboratories and universities), industrial (manufacturing, defense, Lidar sensors) and medical (ophthalmology, ultrasound diagnostic) markets.

Born from the combination of Keopsys Group with Quantel in October 2017, LUMIBIRD has more than 870 employees and

LUMIBIRD shares are listed on the Euronext Paris B Compartment. FR0000038242 LBIRD www.lumibird.com

Contacts

LUMIBIRD Marc Le Flohic Chairman and CEO Tel. +33(0) 1 69 29 17 00 info@lumibird.com

LUMIBIRD Aude Nomblot-Gourhand Secretary General CFO Tel. +33(0) 1 69 29 17 00 info@lumibird.com

Calyptus Mathieu Calleux Investors Relations Tel. +33(0) 1 53 65 37 91 lumibird@calyptus.net