Strategy

Profit

The LISI Group strives to combine financial and non-financial performance over a long-term trajectory. It acts, as it has always done, in a responsible manner, respecting human and fundamental rights, applying business ethics, fighting corruption, and complying with tax laws. This conviction shared by all is the essential starting point to be profitable and sustainable. We remain convinced that our profitability, like our sustainability, rests on our ability to act together with our stakeholders in a responsible, ethical, and sustainable manner. As such, the Group is continuing its efforts and confirming its commitments.

#5 Go beyond our customers’ expectations

Objectives assessment

• Offer competitive products and services that meet the highest standards.
• Integrate and assess of our products’ carbon footprint.
• Constantly seek to surpass our customers’ expectations.

Challenges & Objectives

New products (% of sales revenue)

SDG⁽¹⁾ 9 : Industry, innovation and infrastructure
GRI⁽²⁾ 201‑1

#6 Involve our suppliers

Objectives assessment

• Responsible procurement that takes into account our suppliers’ CSR performance.
• Commitment of key suppliers to reducing their carbon footprint through a CSR evaluation plan.

Challenges & Objectives

% of sensitive suppliers assessed as per CSR criteria

SDG 9: Industry, innovation and infrastructure
GRI 414‑1 / GRI 308‑1

#7 Secure our financial resources

Objectives assessment

• Rigorous management of working capital requirements and inventory.
• Currency hedging for up to 3 years to secure dollar contracts.
• Differentiated funding sources.
• Positive Free Cash Flow maintained each year.

Challenges & Objectives

Sales revenue:

Free Cash Flow:

ODD 8: Decent work and economic growth
GRI 202‑1

SDG⁽¹⁾ : Sustainable development goals
GRI⁽²⁾ : Global Reporting Initiative.
⁽³⁾ The number of suppliers identified as “sensitive” increases each year.

Procurement

Low carbon steel: agreement between LISI AUTOMOTIVE and ArcelorMittal

François Liotard,
LISI AUTOMOTIVE CEO.

CO2 emissions linked to Scope 3 (products or services purchased by LISI) accounted for 67% of LISI's carbon footprint in 2023. They therefore constitute a major challenge for the Group. As part of the plan to reduce its carbon impact, LISI asks its suppliers of goods and services to commit to reducing their carbon footprint. By working with their raw material suppliers to move towards manufacturing processes that emit less CO2, the Purchasing departments collaborate fully in this effort, as illustrated by the signing of an agreement between LISI AUTOMOTIVE and ArcelorMittal. This major strategic agreement entered into in 2023 provides for the joint development of steel that emits less greenhouse gases – called XCarb® steel – suitable for transformation by cold forming and compliant with the requirements of the automotive market (specifications, cost, availability, etc.).

100% renewable electricity

This low-carbon steel, produced from recycled and renewable sources – it uses 100% renewable electricity – allows the ArcelorMittal plants in Hamburg and Warsaw to manufacture wire rods with less than 700 kg of CO2 per ton of steel. This process reduces CO2 emissions by 70% compared to traditional methods. The impact for LISI is considerable since it will generate a 45% reduction in LISI AUTOMOTIVE's carbon emissions linked to the purchase of raw materials from ArcelorMittal and a gross reduction which could reach 10,000 tons of CO2 by 2030. LISI AUTOMOTIVE plans to qualify this new steel on its own products and is developing the initial applications with its German customers. ArcelorMittal will reserve sufficient volumes for LISI AUTOMOTIVE to meet its future demands for green steel. Other initiatives are currently being reviewed at the Purchasing level regarding the optimization and reduction of CO2 emissions linked to the transport of goods.