26 / 164
FINANCIAL SITUATION
26
LISI 2015 FINANCIAL REPORT
Inventories for the division increased by +€19.0 million for the
financial year, corresponding to a reduction of two days in sales
revenue.
Taking into account these elements and the decrease in other
working capital requirements, the free cash flow remains
largely positive at +€41.7 million (4.5% of sales revenue).
Headcount stabilized over the financial year at 7,087 employees
(6,957 in December 2014).
OUTLOOK
The Aerospace division should benefit from increased
production only from the end of 2016. In this outlook, it will
continue to modernize its production equipments, as well as
industrializing new products. It is also investing in long-term
projects such as the development of the "Optiblind®" assembly
system, the implementation of a robotization project, and the
creation of LISI AEROSPACE Additive Manufacturing with the
POLY-SHAPE company, European leader in additive production
with whom the Group signed an agreement on December 17,
2015 to create a common company: LISI AEROSPACE Additive
Manufacturing. 60% held by LISI AEROSPACE and 40% by
POLY-SHAPE, its aim is to provide aerospace customers with a
response that integrates additive technologies into the design
and production of 3D printed mechanical parts.
The division as a whole will benefit from the solidity of the
market for commercial aircraft with over 100 seats and to
a lesser extent, the relaunch of the Rafale program. The
recent renewal of most of the major sales contracts testifies
to LISI AEROSPACE's capability of meeting the increasing
demands of its clients in terms of innovation, development and
productivity.
It is in this spirit that LISI AEROSPACE should succeed the
industrialization of new products, used in programs such as
the A350, and the Leap and GE9X engines. On the industrial
side, the division will benefit from the unprecedented efforts
of previous years to maintain its current efficiency level. The
start-up of the Villefranche-de-Rouergue and Saint-Ouen-
l'Aumône plants, and the ramp-up of those of Marmande
and Dorval (Canada) will impose a new industrial standard in
the Group's businesses. In 2016, the "Forge 2020" installation
project concerning the plant currently located in Bologne
(Haute Marne) will enter a concrete work phase.
Thereare,therefore,numerousindustrialchallengestobefaced,
and the creation of LISI AEROSPACE Additive Manufacturing
will open exciting new technical territories that will meet
global aerospace's requirements for excellence. Combined with
the efforts in product innovation, these development focuses
consolidate LISI AEROSPACE's position for the future.
As the division's major customers do not plan to increase their
production before the end of the year, 2016 is expected to be a
consolidation year before a new increase expected in 2017.
2.3
/
LISI AUTOMOTIVE
■■
Gains in market share in a fairly dynamic environment
■■
First results of the vast industrial reorganization plan
launched in 2012 (application screws, seat components, clips)
■■
Net recovery of free cash flow (+€9.6 million compared to
2014) thanks to the significant improvement in working
capital requirements
Market
World automotive markets recorded moderate growth in 2015
(+2.0%)
1
despite a good fourth quarter at +5.1%. The poor yearly
performances of the Russian (-35.7%), Brazilian (-25.6%) and
Japanese (-10.0%) markets are the main reasons. China saw
a rebound in the fourth quarter (+14.8%) after the significant
slowdown in the third quarter (-1.9%) for a year marked by a
moderate increase (+5.3%). The market recovery noted in the
USA since the start of the financial year was confirmed in the
fourth quarter with +8.0% and 2015 with +5.8%.
Europe, the mainmarket for LISI AUTOMOTIVE, saw a return to
solid growth (+9.2%), Spain (+20.9%) and Italy (+15.8%) saw the
highest growth. France saw a rebound (+6.8%) after a difficult
year in 2014 (+0.3%). The most dynamic manufacturers were
Daimler (+17.7%) and Nissan (+16.3%). Renault achieved slightly
better performance than the market (+9.4%); this was not the
case for Volkswagen (+6.2%) and PSA (+6.0%).
However, it is important to indicate that inventories at the
manufacturers declined as European automotive production
only increased by +3.2%. This compares to a 2% increase in
global production for LISI AUTOMOTIVE's customers.
The order book for new products from the LISI AUTOMOTIVE
division expressed as annualized sales revenue reached a
record level (in particular in the Mechanical safety components
Business Group) and represented 9.8% of sales revenue, i.e.
around €44 million, compared to around €37 million in 2014
(8.3% of sales revenue).
1 source : ACEA Association des Constructeurs Automobiles Européens