24
I LISI FINANCIALREPORT2013
FINANCIALSITUATION
2
2.4
|
LISI MEDICAL
n
Stable profitability in a context of major changes in the type of
customersandproducts.
n
Expansionofproductrangeandskillsatthedivision's3productionsites.
n
Successful launchofnew first "generic"products.
Market
Theworldorthopedicsmarketwasmarkedbyatighteningofregulations
for certifying implants, and as a result some consolidation among
orthopedic companies. Further, the need for government and private
bodies to reduce the reimbursement of health costs has impacted
negativelyon the launchofnewproductsand thesalespricesofexisting
products.
LISIMEDICALbelieves itsmarket isstillgrowing involume,butatamore
moderate rateof about 3-4%per annum. The "vertical column, trauma
andshoulder"segmentsarethemostdynamic.
Activity
In€m
2013
2012
Changes
Sales revenue
64.1
64.8
-1.1%
EBIT
2.5
2.8
-8.0%
Operatingcash flow
1.6
3.1
-50.0%
NetCAPEX
3.1
11.6
-73.2%
Operatingcash flowsurplus (FreeCash-Flow)
1
-1.3
-1.2
+8.4%
Registeredemployeesatperiodend
474
475
-0.2%
Full timeequivalentheadcount
2
536
511
+4.9%
1FreeCashFlow:operatingcash flowminusnet industrialCAPEXandchanges inworkingcapital requirements.
2 Includingtemporaryemployees.
Salesactivity improvedat theendof the financialyeardue toa receiptof
orders thatwashigher thandeliveries.Nevertheless,afterhavingposted
a sharpdropof 12.1%between2011 and2012, sales revenues sawonlya
slightupturn in2013.Theproduction levelhasslightly increased.
Action plans have been implemented, focused on logistics, in order to
provide customers with even greater quality of service. Investments
madeoverseveral yearsand thecurrent improvementplans (LEAP - "LISI
ExcellenceAchievementProgram")willgraduallyfacilitateraisingcurrent
production levels.
EBITwassimilar to the2012 financial yearat4.0%of sales revenues, and
stilldoesnotreflecttheexpectedpositive impactoftheeffectofvolumes
fromthemajorextensionofthenewproductsrange,northecontribution
of the many new customers. Investments have been focused on
productionequipmentandanacidpicklingline,andhavestayedat€3.1m.
AccordinglyFreeCashFlowremainedslightlynegative fortheperiod.
OUTLOOK
Theorder bookat the start of the year shows a clear improvement over
the same period last year, and should confirm the return to growth
commenced inthe lastquarterof2013.
Thisnewphase isbasedon intensifyingtherepositioningofLISIMEDICAL
in those segments withmost growth and profitability, both for large
corporationsandmedium-sizedcompanies.
Started in2013, thedevelopmentof "generic" productshasenjoyed true
successwithseveralcustomers,whowillgetdeliveries in2014.
Lastly, the Caen (Calvados) site has assumed greater visibility through
the renewal for four years until 2019 of the contract with Stryker, LISI
MEDICAL'smaincustomer.
