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LISI 2016 ANNUAL REPORT
I
5
Accelerated international development, moving towards
Industrial Excellence
Results up and continued value creation
With a new governance after the Board’s decision in February
2016 to split the functions of Chairman and Chief Executive
Officer, the Group continued its international development and
recorded strong growth in its economic and financial results.
Thanks to the dynamism of its main markets, notably that of
aeronautics, but also with the contribution of the American
company REMMELE Medical Operations acquired in May 2016,
the LISI Group generated sales of €1.57 billion, an increase of
+7.8% compared to 2015, of which 4.6% was organic growth.
This increase in activity brings the Group’s current operating
income to a record level of €157 million, for an operating margin
of 10%.
In the construction of this result, our aerospace division is
still making a major contribution despite the high costs of
industrialization of new parts and the intensification of its
research and development expenditure; in the meantime, our
automotive and medical divisions saw their profitability rise
for the fourth consecutive year as a result of their efforts for
productivity, management and marketing of new products.
Benefiting from favorable currency and hedging effects, net
income increased significantly to €107 million, up +31% compared
with fiscal year 2015, and generated Free Cash Flow of €73 million
after a record volume of industrial expenditures.
Lastly, including the purchase of REMMELE Medical Operations,
the Group’s net indebtedness of €218 million corresponds to a
gearing of 25% and an EBITDA ratio of 0.9 which is much lower
than the Group’s banking covenants.
Internationalization and strategic developments
Of course, the major strategic fact of fiscal year 2016 remains
the acquisition of the American company REMMELE Medical
Operations, which specializes in the components dedicated to
minimally invasive surgery with significant positions in spinal
surgery. By joining our division LISI MEDICAL, REMMELE Medical
Operations contributes newmarkets as well as new products and
propels it into the Top 5 of the world’s leading manufacturers of
prostheses and medical instruments.
The Group also strengthened its internationalization in 2016
with the majority takeover of the Indian aeronautical fasteners
company Ankit Fasteners; although small, it offers access to the