Financial situation
1
2
LISI 2014FINANCIALREPORT
I
27
Theannual sales revenuestoodat€448.3M,up6.2%compared to2013,
supported inparticularbyacceleratingsales inthesecondhalf.
Keyevent
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Acquisition in June 2014 of 100% controlling interests in LISI
AUTOMOTIVE Shanghai, of which 25% were up to then held by a
Chinesepartner.
Results
Inanticipationofagood levelofactivityexpected inearly fiscal2015, the
division has increased its inventories of controlledmanner. Production
amountedto€451.4M,an increaseof6.9%comparedto2013.
Thebulkof therestructuringoperationswasconductedaccording to the
"Nuts"plan(closureoftheThiant(Nord)plant,repatriationof itsactivities
to two sites, namelyDasle (Doubs) and la Ferté Fresnel (Eure-et -Loire).
TheymustnowcontributetothesustainablerecoveryofFrenchfactories
specializinginthreadedfasteners.Thisvastindustrialreorganizationplan
launched in2012 isalsowellunderway in theother segmentsconcerned
(Germany, safetycomponents,clips)andshouldbear fruit in2015.
Thus,theoperatingmarginLISIAUTOMOTIVEhasbeenpickingupforthe
third consecutive year to 3% (2.7% in2013and0.5% in2012). This trend
towards performance improvement was maintained through proper
control of the implementation of the reorganization initiatives, which
affectedoperations for -€4.8M; such initiatives shouldnotbe repeated
in 2015.Moreover, theworks inprogress at theDasle (Doubs) plant are
scheduled to be completed by the second quarter of 2015; this should
helptostrengthenthedivision'sprofitability.
Othermanagementindicatorsarerising,particularlythesafetyindicators,
thequality indicators,aswellasthoserelatingtothedeploymentofLEAP
(LISIExcellenceAchievementProgram).
Inventories remain stable at 67 days of sales. Other items in the
Working Capital consumed €3.5 M of cash during the period and
reflected disbursements related to the closure plan of the Thiant
plant (approximately €5 M). As announced in February 2014, capital
expenditures were maintained at a high level with disbursements of
€34.7M (versus €32.1M in 2013). Consequently, the FreeCash Flowwas
negativeat-€12.7M (versus-€6.2M in2013),despitethecash flowbeing
upby€3Mat€29.4M.
ThehighCAPEXfortheperiodwere justifiedbymanyprojects, including
for infrastructure (€7.4M at Dasle, €2.7M at Mellrichstadt, €4.8M at
headquarters) and for industrial equipmentdedicated tonewproducts.
The commitments for the period amounted to €33.1 M, a slowdown
comparedtothetrendof2012and2013.
The workforce stood at 3,334 FTEs (versus 3,220 in 2013) for 3,186
registeredonDecember31,2014.
OUTLOOK
The order book for delivery for the start of fiscal 2015 is in line with
the upward trend of Q4 2014, which creates a certain tension in the
logistics sector. Beyond Q1 2015, market growth will remain to be
confirmed, particularly inEurope. Thegoal for theyear 2015will include
gathering the organizational efforts put forth since 2012, completing
the construction of the plant at Dasle and continuing the progress
achieved in the implementation of LEAP (LISI Excellence Achievement
Program) to sustainably improve operational profitability. Three of the
division's four "BusinessGroups" are strengthenedwith real competitive
advantagesandconsolidatedtradetiessuchastheGermancustomersor
partsmanufacturers. Theactivityof "Threaded fastenersFrance" should
stabilize now to take full advantage of the industrial gains after two
yearsof intensiveeffort. Theendof the reorganizationof the "Threaded
fastenersFranceBusinessGroup" (closureofThiant,worksatDasle,new
equipment)shouldallowtonormalizethisactivitygraduallyduring2015.
The coming year should see an improvement in the activity and the
programmeddeclineofnon-recurringcosts.
The investmentplanwillbe lessambitious in2015,whichshouldgenerate
asurplusofFreeCashFlow.
2.4
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LISI MEDICAL
SummarizedoverviewoftheactivityofLISIMEDICAL
Annual sales revenue (€M)
2012
2013
2014
Sales revenue
65
64
71
2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013
2014
18
16 17
14
16 17 17
15
19
17
16
19
Marketratherdynamic
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Newrestockingphaseatclients
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Fundamental trends: search for savings, particularly through
innovation, introductionofgenericproducts, singleuseancillaries,etc.
Significantprogress inperformanceresults
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Tangible improvementofthequality indicatorsthroughoutthesites
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Reinforcedrelationshipwiththemainorthopedicclient
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Orders forneworthopedicproductsapprox.€2M
