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LISI 2011 —
59
— financial report
Consolidated financial statements
2.6.5 Research and development expenses
The LISI Group’s mission is to carry out intensive research and
development activities, both in developing new products and in using
new materials. This research and development activity is carried out
at various levels: either as part of a co-operative venture between
research and design departments within our own divisions and those
of our customers, or to develop or improve certain components
or industrial processes. These are mainly comprised of personnel
expenses dedicated to R&D services. Staff dedicated to R&D represent
in 2011 some 2% of the Group’s employees.
The expenses incurred for the last three financial years are shown in
the table below:
In €m
2011
2010
2009
R&D expenses
18.9
18.4
16.5
% of sales revenue
2.0% 2.4% 2.4%
Activated projects
0.7
1.0
0.8
2.6.6 Non-recurring operating expenses and revenues
Non-recurring operating expenses and revenues break down as follows:
(In €’000)
2011
2010
Non-recurring operating expenses
Restructuring costs
(22)
Industrial reorganization costs
(309)
(771)
Reserve allowance for industrial reorganizations
(1,000)
(807)
Reserve allowance for restructurings
(1,622)
Total
(2,931)
(1,600)
Non-recurring operating revenues
Gains from the disposal of LISI COSMETICS
9,838
Reversals of restructuring provisions
26
Industrial reorganization plan provision reversals
807
500
Total
10,645
526
Non-recurring revenue and expenses from operations
7,714
(1,074)
The rules for the presentation and definition non-recurring charges
and products remain unchanged compared to December 31, 2010.
To theCompany’s knowledge, therearenoother litigations, arbitrations
or non-recurrent facts that have, or have had, a significant impact on
the financial situation, earnings, business or assets of the LISI Group.
2.6.7 Non-operating profit
(In €’000)
2011
2010
Financing expenses and revenue on cash
Financing expenses and revenue on cash
658
430
Effect of changes to fair value of of financial instruments
(472)
(307)
Financing expenses
(4,587)
(2,640)
Sub-total income from cash and cash equivalents
(4,401)
(2,517)
Other interest revenue and expenses
Foreign exchange gains
9,936
13,135
Foreign exchange losses
(8,354)
(11,236)
Other
6
(307)
Financial income and expenses
1,588
1,592
Non-operating profit
(2,814)
(925)
The deterioration in the financial result, at €-1.9m between
December 31, 2010 and December 31, 2011, results from the
combined effect of higher financing costs (increased net debt and
interest rates), the impact of exchange differences being stable.