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FINANCIAL SITUATION
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LISI 2015 FINANCIAL REPORT
comes from poor performance from a limited number of
factories whereas half of the Group's sites have already reached
the objective fixed for the end of 2016 of a TF1 under 10.
To consolidate its performance in this area, the Group has
decided to develop the E-HSE program (Excellence HSE)
at the end of 2015 and over the next three years. This
structuring program provides for the implementation of a
unique methodology for all Group sites.
Environmental information (Art. R 225-105)
For several years, the LISI Group was fully engaged in placing
environmental issues at the heart of its corporate culture in
order to turn them into intrinsic values.
The policy and organization put in place are based on the
international standard ISO 14001 (international standard
governing the management system of the environment).
Headcount
As at December 31, 2015, the LISI Group employed 10,923
employees, an increase of the total workforce of 222 people,
which represents a difference of +2.1% compared to 2014.
Headcount at the end of December:
2015
2014 Difference N/N-1
LISI AEROSPACE
7,087 6,957 +130 +1.9%
LISI AUTOMOTIVE
3,241
3,186
+55
+1.7%
LISI MEDICAL
573
538
+35
+6.5%
LISI Holding
22
20
+2 +10.0%
Group total
10,923 10,701 +222 +2.1%
Temporary
employees
680
803
Financial results 2015
2015 is the fifth consecutive growth year for all management
indicators in absolute value.
Gross operating profit (EBITDA) is over €200 million, an
increase of +5.6%, and represents 14.0% of sales revenue.
Current operating profit (EBIT) is up €15 million (+11.3%) at
€146.5 million. It is interesting to note that despite fewer
working days between the second half-year 2014 and the same
period in 2015, at constant scope, the current operating margin
increased from 8.8% to 9.7%. For the whole financial year, it
reached 10.0% of sales revenue, almost stable compared to 2014
despite the unfavorable impact of Manoir Aerospace.
This resilience can be explained by an improvement in
operational quality in all the Group's businesses. Thus, it
is legitimate to consider this level of 10.0% as being close
to the standard fixed by the Group, given its activity mix.
The contribution of the productivity gains from LEAP (LISI
Excellence Achievement Program), as well as the effects of the
ambitious industrial investments plan were decisive in this
performance.
While the aerospace division remains the leading contributor
to current operating profit (EBIT at +€124.3 million), the
Automotive division demonstrated a significant improvement
to profitability, particularly at the end of the period (+€18.0
million). The contribution for themedical divisionalso improved
(at +€4.1 million).
The financial costs of loans were limited to €5.0 million (€4.7
million in 2014). The Group's exposure to currencies other
than the euro, and, in particular, the US dollar, rose sharply,
requiring it to use hedging instruments for much of the next
four financial years. The impact of these instruments led to
an expense of €6.5 million in 2015 (compared to a profit of €3.2
million in 2014).
Non-operating costs related to the closure of city of Industry
plant (USA) and the Villefranche-de-Bourgue plant, have
impacted on the non-operating result by €5.8 million.
The tax expense, calculated on the basis of the corporation
tax as a percentage of the net income before taxes, reflects an
effective average tax rate of 34.3%, almost stable compared with
2014 (34.4%).
At €81.8 million, net earnings are equivalent to 2014 (€81.4
million). Earnings per share are stable at €1.55.
Based upon the results, the Group will seek the shareholders’
General Meeting’s approval to set the dividend at €0.39 per
share for the 2015 financial year.
The financial structure is still solid after two years
of significant investments
Proper control of inventory levels and the decrease in late
payments by customers enabled the consolidated working
capital requirement to be reduced from 90 days in 2014 to 76
days at the end of 2015 (figures consolidating the entry of the
Manoir Aerospace Group into the Group scope).
In the continuity of previous years, LISI maintained a steady
pace of capital expenditures that reached a historically high
level of €111.5million. In2015, theymainly concernedproduction
equipment and the implementation of several new plants (City
of Industry – USA, Dorval – Canada). With €154.2 million of
operating cash flow, the Group was easily able to cover these,
while at the same time still generating a positive free cash flow
of €39.6 million.
Net debt decreased by almost €25million to reach €156.6million
at December 31, 2015, i.e. 19.7% of equity (25.6% in 2014). Thus,
LISI's financial structure enabled the Manoir Aerospace Group