LUMIBIRD — Interim / Quarterly Report 2019

Sep 25, 2019

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At June 30 (€m)	H1 2019	H1 2018 restated (1)	Change	IFRS 16 impact

(1) H1 2018 reported financial data adjusted for the impact of the definitive allocation of the acquisition price for the Keopsys-Quantel business combination operation. The full-year earnings reported for 2018 already included these restatements.

First-half level of business effectively under control

With consolidated revenues of $\epsilon$ 51.7m, up 22%, the first half of 2019 was characterized by robust industrial and commercial trends, in line with expectations.

• The Industrial and Scientific Division (+5.6% to $£13.3m$ of revenues) benefited from positive seasonality effects and the strengthening of the commercial organization;
• The Lidar Sensors segment achieved 61.9% revenue growth to $\epsilon$ 8.9m. In addition to seasonality, this level of business is linked to complex integration phases at client sites for some of the largest programs. Demand is still strong and Lumibird has continued to develop its manufacturing and testing capabilities, resulting in an advanced level of costs in the first half of the year:
• The Defense / Space Division (+37.5% to $\epsilon$ 11.8m of revenues) is continuing to grow. with sustained demand for the space activities, as well as new accounts and new contracts. The concentration of growth over the first quarter (+111.5%) is linked primarily to the percentage of completion method applied for recording the MegaJoule business, for which the bulk of purchases were made at the start of the year.
• The Medical Division (+12.9% to $\epsilon$ 17.7m of revenues), driven by the success of the new products, new certifications in China and Japan, and its geographical developments, recorded sustained growth over the half-year period.

Advanced costs in the first half of the year and negative seasonal impacts on margins

The Lidar Division's capacity investments are reflected in costs rising more quickly than revenues. In addition, the overall margin was negatively impacted during the first half of the year as a result of the accounting recognition method applied for the MegaJoule business and certain major development programs. These effects mask the very good performance by the Medical business and the rest of the Laser business.

€m	Laser	Medical	TOTAL
H 1 2018 income from ordinary operations	2.6	0.2	2.8
% of revenues	$8.2\%$	3.8%	6.7%
H1 2019 income from ordinary operations	1.6	1.0	2.6
% of revenues	3.5%	7.9%	5.1%
Change	$-1.0$	+0.8	$-0.2$

Analysis of earnings for each division

Operating income totaled $\epsilon$ 2.6m, compared with $\epsilon$ 2.8m for the first half of 2018 (-7%).

Pre-tax income represents €2.2m (-17%), after €0.3m of finance costs.

After factoring in €0.2m of corporate income tax, net income came to €1.8m, compared with €2.1m for the first half of 2018.

Healthy financial position

At June 30, shareholders' equity represents €117m, up €26.3m from December 31, with €25m linked to the capital increase carried out in May. Net cash is positive again, climbing to $\epsilon$ 7.2m. The first application of IFRS 16 is reflected in a $\epsilon_4$ .8m increase in financial debt. As a result of the level of inventory, particularly high at June 30 and intended to support the increase in capacity, working capital requirements are up €7.8m.

Outlook

The Group has further strengthened its sales teams in the US, China and Japan to deliver on its target growth. The finance division has also been strengthened. The Group's technological expertise for Lidars is developing, with the launch of operations for Lumibird Canada, a new subsidiary employing some of the industry's leading experts to develop a higher value-added Lidar offering, particularly in North America.

Despite the deterioration in the global economic environment, demand is still strong for the Group's three strategic segments, with outstanding prospects for development. Second-half growth is expected to be combined with an increase in the gross margin, due to the correction of seasonality effects observed this half-year period. From the second half of the year, Lumibird expects to return to an operating margin rate that is in line with the market's expectations for the full year.

In addition, Lumibird has started to deploy its external growth strategy, with the acquisition of Optotek (2018 revenues of €6.6m), a longstanding partner of Quantel Medical, in August. The Group is continuing to very actively explore opportunities for acquisitions in its three strategic segments.

Lumibird is able to confirm its strategic targets for 2021, with revenues of $\epsilon$ 150m (excluding external growth) and an EBITDA margin of over 20%.

Publication of the 2019 Half-Year Financial Report

The Lumibird Group's 2019 half-year financial report is filed on September 26 with the French financial markets authority (AMF) and is available on Lumibird's website.

Next date: Q3 2019 revenues on October 28, 2019 after close of trading

LUMIBIRD is one of the world's leading laser specialists. With 50 years of experience and expertise in solid state laser, laser diode and fiber laser technologies, the Group designs, manufactures and distributes high-performance lasers for scientific (laboratories and universities), industrial (manufacturing, defense / space, Lidar sensors) and medical (ophthalmology) markets.

Created through the combination of the Keopsys and Quantel Groups in October 2017, LUMIBIRD has more than 500 employees and over €100 million of revenues and is present in Europe, America and Asia.

LUMIBIRD shares are listed on Euronext Paris Compartment B. FR0000038242 - LBIRD

www.lumibird.com

Contacts

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

Quantel Medical Jean Marc Gendre CEO Tel. +33 (0)4 73 74 57 45 $info@quantel-medical.fr$

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