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LISI 2011 —
34
— financial report
Consolidated financial statements
.2
notes
2.1
Group activity and key highlights
of the year
The company LISI S.A. (hereinafter “the Company”), is a limited-liability
corporation in French law, listed on the Paris stock exchange, whose
head office is at the following address: “Le Millenium, 18 rue Albert
Camus, BP 431, 90008 BELFORT cedex”.
The Group’s consolidated accounts for the fiscal year ended
December 31, 2011 include the Company, its subsidiaries and affiliates
(which are together referred to as “the Group”).
The LISI Group’s main business activity is the manufacturing of
multifunctional fasteners and assembly components for three
business sectors: aerospace, automotive, and medical. Through its
subsidiary LISI MEDICAL, the LISI Group has also been present since
2007 in the outsourcing of medical implants targeted at groups
that develop medical solutions. As of January 1, 2011, that division
represented a segment per se in the sense of IFRS 8.
The highlights of the financial year are as follows:
Sale of 100% of the shares and voting rights of LISI COSMETICS to
the POCHET group through its subsidiary Qualipac. The latter had
achieved a turnover of €52.8m in 2010.
Acquisition of 100% of the shares of Creuzet Aéronautique and
Indraero Siren and their respective subsidiaries Creuzet Polska, Creuzet
Morocco and Indraéro Morocco:
– On July 22, 2011, the LISI Group confirmed its strategy of becoming
an aerospace equipment manufacturer specializing in assembly
components. The acquisition of both companies was conducted
through LISI AEROSPACE CREUZET, a wholly-owned subsidiary of LISI
AEROSPACE. With about 1,500 people, these companies generated
a turnover of €107 million in 2010.
2.2
Rules and accounting methods
The financial statements for year ending December 31, 2011 were
approved by the Board of Directors on February 15, 2012 and will be
submitted to the mixed General Meeting on April 26, 2012.
2.2.1 Background to the preparation of the consolidated
financial statements for the 2011 financial year
In accordance with EU regulation 1606/2002 dated July 19, 2002, the
LISI Group’s consolidated financial statements have been prepared in
line with IAS/IFRS international accounting standards as adopted by
the European Union on December 2011.
2.2.2 Basis for the preparation of the financial statements
Financial statements are given in thousands of euros, except where
otherwise indicated.
They are prepared on the basis of historical costs, with the exception
of the following assets and liabilities which have been evaluated at
their fair value: financial derivatives, financial instruments held for
trading purposes or classified as held for sale, liabilities from cash-
settled share-based payment transactions.
Non-current assets held for sale are evaluated at the lower of their
book value and the fair value less costs of disposal.
According to IFRS standards, certain accounting options involve taking
positions based on judgment of assumptions that have an impact on
the amounts of assets or liabilities, income or expenses, particularly
regarding the following elements:
– durations of depreciation of fixed assets(notes 2.2.7.2 et 2.2.8.4),
– evaluations retained for impairment tests (note 2.2.8.5),
– evaluation of pension provisions and obligations (notes 2.2.14 and
2.2.15.1),
– valuation of financial assets at fair market value (notes 2.2.6, 2.2.8.6,
2.2.11 and 2.2.12),
– valuation of payments in equities (note 2.2.15.2),
– recognition of deferred tax assets (note 2.2.19.5).
These judgments and assumptions take into account the specific
risks of the sectors concerned by LISI’s activities, as well as general
risks related to the economic context. The current period being
characterizedby greater volatility, the visibility is limited. Consequently,
the forecasts used as a basis for such judgment and assumptions may
differ from actual future achievements.
Management continuously reviews its estimates and assessments
based upon past experience and on factors considered reasonable
that form the basis of its assessment for the book values of assets and
liabilities. The impact of changes to accounting estimates is recognized
during the period of change only where it affects this period or during
the period of change and successive periods if these are also impacted
by the change.
The decisions made by the management regarding IFRS standards
having a significant impact on the financial statements and estimates
presenting a major risk of variation over subsequent periods mainly
concern provisions (notes 2.2.14 and 2.5.4), deferred tax assets (note
2.5.7) and impairment tests on assets (notes 2.2.8.5 and 2.5.1.1).
Calculations for staff retirement provision and valuation tests are
based on valuation assumptions, the sensitivity of which can affect
costs recognized as provisions in the accounts. These assumptions
are broken down by division on the basis of information drawn from
independent experts (actuaries, etc.).