LISI GROUP - 2015 Activity report

LISI 2015

Rebound

Europe returns to growth

Economic environment

The automotive sector experiencedmoderate worldwide growth

in 2015. Up 2% for the year, it recorded a net acceleration (+ 5.1%)

in the last quarter. The Chinese rebound that occurred late in

the year (+ 14.8% in Q4) after a period of sharp decline (- 1.9%

in Q3) partially explains this phenomenon. For the year, China

recorded a relatively modest increase (+ 5.3%) and is no longer

able to play the driving force role that it previously held. It was

unable to offset the poor performance of the Russian (- 35.7%)

and Japanese (- 10.0%) markets. Only the United States (+5.8%)

and Europe showed clear signs of recovery.

European manufacturers are growing

Europe, the main area of LISI AUTOMOTIVE operations, indeed

reconnected with solid growth (+ 9.2%); Spain (+ 20.9%) and

Italy (+ 15.8%) are led the race. France ended with an enviable

score (+ 6.8%), after a difficult year in 2014 (+ 0.3%). Some

manufacturers, such as Daimler (+ 17.7%) and Nissan (+ 16.3%),

posted satisfactory growth and Renault recorded a score higher

than themarket (+ 9.4%). In light of this performance, the actual

progress of European automotive production, however, remains

moderate (+ 3.2%). The low inventory levels, driven bymore than

just the manufacturers, explains this shift.

Penalized by the slowdown in China and the

collapse of the Russian market, the global

market recorded modest growth in 2015.

Europe however is experiencing a net rebound.

A favorable context for the business activities

of LISI AUTOMOTIVE

Business volume is up

The share of new products among the orders taken was a

record: it represents 9.8% of the sales of LISI AUTOMOTIVE, i.e.

approximately € 44 m, versus approximately € 37 m in 2014

(8.3% of sales). With capacity to meet these new demands, LISI

AUTOMOTIVE has achieved a turnover of € 454.6 m in 2015

(+ 1.4% on the previous year). After a very strong start to the

year, the division however experienced a decline in the second

half, the slowdown in the Chinesemarket causing adjustments

throughout the supply chain. The decline in production among

the European customers of LISI AUTOMOTIVE impacted by the

declining exports to Eastern Europe - mainly to Russia - also

explains this slowdown.

LISI AUTOMOTIVE

9.8

Share of new products

in the business turnover

+9.2

growth in the European

market in 2015