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LISI 2016 FINANCIAL REPORT
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The policy and organization put in place are based on the international
standard ISO 14001 (international standard governing the environment
management system) as well as on the international standard
OHSAS 18001 (international standard on the health and safety
management system).
Headcount
As at December 31, 2016, the LISI Group employed 11,587 employees,
an increase of the total workforce of 664 people, which represents a
difference of +6.1% compared to 2015.
Headcount at the end of December
2016
2015
Changes N/N-1
LISI AEROSPACE
7,386
7,087
+299
+4.2%
LISI AUTOMOTIVE
3,265
3,241
+24
+0.7%
LISI MEDICAL
915
573
+342 +59.7%
LISI Holding
21
22
(1)
(4.5%)
GROUP TOTAL
11,587 10,923
+664 +6.1%
Temporary workers
1,156
680
Financial results 2016
2016 is the sixth consecutive growth year for all management
indicators in absolute value.
Gross operating profit (EBITDA) is over €237.1 million, an increase
of +16.2% (+€33 million), and represents 15.1% of sales revenue.
Taking account of the less favorable net effect of the provisions and
reversals than in 2015, the current operating profit (EBIT) grew by
+7.5% (€11.0 million) to €157.5 million at 10% of the sales revenue, the
operating margin is stable compared with the previous financial year.
This resilience is explained by an improvement in the operational
quality of all the Group’s activities which makes it possible to offset the
excess costs generated by the industrialization of the new programs in
the “Structural Components” activity of the LISI AEROSPACE division.
Hence, similarly to the previous year, this level of 10.0% complies with
the objectives of the Group, taking into account its activity mix. The
contribution of the productivity gains from LEAP (LISI Excellence
Achievement Program), the gradual re-orientation of the activities
of the automotive division towards product families with a greater
margin, as well as the effects of the ambitious industrial investment
plan were determining in this performance.
2016 also vouches for the gradual readjustment of the three divisions.
Even if the aerospace division is still the leading contributor to the
current operating profit (ROC at +€122.9 million, i.e. 78% of the Group)
the automotive division shows improved profitability for the fifth
consecutive financial year (at +€26.3 million). The contribution from the
medical division which, as expected, benefits from the consolidation of
LISI MEDICAL Remmele, also improved (at +€9.3 million).
The financial result (+€13.3 million) increased substantially compared
with 2015 (–€16.0 million). The major impacts is summarized by:
–
–
the financial expenses corresponding to the cost in the net debt
benefited from the decrease in the interest rates. They amounted
to –€4.2 million (–€5.0 million in 2015) i.e. an average rate of +1.70%
(+2.06% in 2015);
–
–
the revaluation of the debts and receivables in euros (+€18.3 million
against –€0.1 million in 2015). The value of the debts was
mechanically reduced benefiting from the substantial drop in
sterling, while the value of the receivables, investments and
bank accounts was mechanically increased benefiting from the
substantial rise in the dollar at year end;
–
–
the impact of the unwindings and valuations of the currency
hedging instruments (–€0.7 million against –€9.4 million in 2015);
–
–
the exit from the pension scheme in the United States which had
accounted for –€1.5 million in 2015.
The non-operating costs impacted the non-current result by
–€10.0 million and concern the industrial reorganization of several
major sites (Villefranche-de-Rouergue, Rugby [UK] and Saint-Ouen
l’Aumône) as well as studies on the re-establishment of the Bologne site.
The tax charge, calculated on the basis of the corporation tax as a
percentage of the net income before taxes, reflects an effective average
rate of tax of 33.7%, slightly down compared with 2015 (34.3%).
At €107.0 million, the net earnings thus clearly exceeded those of
2015 (€81.8 million), greatly improved by the financial earnings for the
financial year.
The shares substantially increased to €2.02 (€1.55 in 2015).
Based upon the results, the Group will seek the approval of the
Shareholders’ General Meeting to set the dividend at €0.45 per share
for the 2016 financial year.
The financial structure is still solid after three years of significant
investments
In a context where the levels of activity are strongly increasing, the
reduction in the levels of inventories (–6 days expressed in days
of sales revenue) and the further decrease in late payments by
customers enabled the consolidated working capital requirement to
be maintained at 76 days in 2016.
Following on from previous years, LISI maintained a steady pace
of capital expenditures that reached a historically high level of
€119.6 million. In 2016, they were mainly devoted to equipment specific
to new products and to the extension and re-establishment of several
major sites (Villefranche-de-Rouergue, Rugby [UK] and Saint-Ouen
l’Aumône). With €195.8 million of operating cash flow (+€41.6 million,
12.5% of consolidated sales revenue, to be compared with 10.6% in
2015), the Group was easily able to cover these, while at the same
time still generating a positive
Free Cash Flow
of €73.5 million, in the
three divisions.
FINANCIAL SITuaTION
2