LISI FINANCIALREPORT2013
23
FINANCIALSITUATION
2
Activity
In€m
2013
2012
Changes
Sales revenue
422.2
426.6
-1.0%
EBIT
11.3
2.3
x4.9
Operatingcash flow
26.4
22.3
+18.1%
NetCAPEX
-32.1
-28.0
+14.7%
Operatingcash flowsurplus (FreeCash-Flow)
2
-6.2
-4.1
+51.2%
Registeredemployeesatperiodend
3,143
3,213
-2.2%
Full timeequivalentheadcount
3
3,220
3,263
-1.3%
1source :ACEA
2FreeCashFlow:operatingcash flowminusnet industrialCAPEXandchanges inworkingcapital requirements.
3 Includingtemporaryemployees.
Thedivisionhasmonitored these trendsandhasdeveloped itsbusiness
withGerman customers in similar proportions; it has alsopostedgood
progresswithRenaultthatwillbe fortheDaciamodels.
It has also achieved remarkable performance with the major parts
manufacturersAutoliv,Anixter,CBI andTI.TRW, its firstTier 1customer,
isataveryhigh level.
Orders fornewproductshavesloweddownsharplydue to theeconomic
situation,butstill representover€30mannualized,withgoodprojects in
sight intheclipped fastenersandsafetycomponentssegments.
Ifthevolumeofsales isdownby1.0%fortheyear, itremainsstableonthe
same consolidation scope (+0.1%) andhad growth (up 2.0%) following
theremovalofsomeactivities intended forthe industry.
Thebeginningof the financial year sawadifficult start (down9.7% inQ1
2013)beforeslowlyreestablishing itselfat+4.4% inQ4.
Productionhas been kept under control tomaintain inventories at low
levelsdespite strongbusiness at theendof the year; inall, thedivision's
inventorieswillhavereducedbymorethan€1m.
The large-scale industrialprogram launchedbyLISIAUTOMOTIVE in2013
hasgenerated firstresults:an improvement inproductivity,adrop inthe
breakevenpoint, and rationalizationof production. The "Nuts" program
will enter a critical stage in 2014, while the "Screws" program is already
well advanced, will continuewithnew changes inmachine placement,
reinstallationofworkshopsandspeedingupof theLEAP "LISIExcellence
AchievementProgram".
The development of the financial indicators as part of the recovery
plan is in linewith the targets expected. EBIThas increased to2.7%, as
against 0.5% in 2012. This improvement has been obtained through
majormanagement efforts focusedon reducing fixed costs. The results
of the actions taken on changes in variable costs (productivity, quality,
rationalization)willbecomeevident followingthecurrentrestructuring.
The investments recognized in 2013 (€32.1m) have not been entirely
financed through cash flow and Free Cash Flow stands at €-6.2m, as
compared with €-4.1m in 2012. It should be borne inmind that these
figures reflect tight control ofworking capital requirements, lower than
in2012.
OUTLOOK
Theorder book shows a start for 2014 in linewith theendof 2013,with
a growth in sales revenues as compared with Q1 2013. Beyond that,
this positive trend still needs to be confirmed. Most energy will be
concentrated on the performance of the industrial programwith the
objectiveofachieving the improvement targets from theendof the2014
financial year,and thenmoreobviously in2015.The investmentplanwill
beambitious,atthe levelof2014,andwillnotallowbalancingof theFree
CashFlow.
