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LISI 2016 FINANCIAL REPORT
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The LISI AUTOMOTIVE operating margin increased for the fifth
consecutive year to reach 5.7% (4.0% in 2015; 3.0% in 2014; 2.7% in
2013 and 0.5% in 2012), confirming that performances had recovered.
As expected, the
Free Cash Flow
became clearly positive (+€7.9million)
a significant improvement on 2015 (–€3.1 million). The level of the
operating cash flow (+€43.8 million) and the good control of the
working capital requirement are the main reasons for this. The latter
moreover makes it possible to finance an always sustained CAPEX
level of €31.9 million. These investments were justified by many
projects, including the updating of IT systems, industrial equipment
dedicated to new products or the improvement of the plants’
operating conditions.
The other management indicators have improved, in particular the
logistics indicators, and those relating to the deployment of the LEAP
program (LISI Excellence Achievement Program).
Headcount was slightly greater compared to 2015 with 3,265
employees at December 31, 2016 compared to 3,241 in 2015, i.e. +0.7%.
Recruitments were above all made in the Czech Republic, in China and
in Mexico (build up of the Monterrey site).
OUTLOOK
LISI AUTOMOTIVE has set the objective to continue the progress
recorded over the past five financial years and to improve its
profitability in the long term thanks to the contributions of the LEAP
plan (LISI Excellence Achievement Program) and the high level of
industrial investments. The repositioning towards products with higher
added value undertaken in 2016 also represents a major focus for the
continuous improvement of the LISI AUTOMOTIVE profitability.
The very good level of logistics performance, makes it possible to
satisfy the growth in customers’ demands giving visibility to the order
books, as well as the build-up of new products.
The greater international presence of division, particularly on the
mechanical safety components and clipped solutions market, is going
to become another motor for its development. On this subject, the
move of the Beijing plant will be an important element at the start of
the financial year.
2.4
I
LISI MEDICAL
Summary presentation of the LISI MEDICAL activity:
■■
Change of dimension with the acquisitions of REMMELE Medical
Operations from ALCOA on April 11, 2016;
■■
Dynamic market and numerous on-going developments;
■■
Further improvement in the operating margin and
Free Cash Flow
.
Market
Over the last three financial years, the world orthopedics market has
returned to growth in line with the long-term trend (+4% to +5% per
year). LISI MEDICAL considers that the contractual manufacturing
segment, on which it operates from its five production sites, is
growing faster than the world market, which is expressed by a sector
consolidation strategy.
LISI MEDICAL customers respond to market constraints by
consolidating their activity portfolio with acquisitions in strongly
growing segments. Overall, the market remains well oriented towards
the majority of geographic areas.
Activity
(in millions of euros)
2016
2015
Changes
Sales revenue
119.1
74.8
+59.3%
Current operating profit (EBIT)
9.3
4.1
+125.4%
Operating cash flow
11.8
5.3
+120.8%
Net CAPEX
(5.6)
(4.0)
+40.0%
Free Cash Flow
1
3.7
1.7
+€2.0M
Registered employees at period end
915
573
+59.7%
Average full time equivalent headcount
2
868
623
+39.3%
1
Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements.
2
Including temporary workers..
Highlights
■■
Consolidation of LISI MEDICAL Remmele at May 1 (sales revenue of €44.9 million over the period), i.e. 7 months’ activity;
■■
Good level of orders and activity with existing customers, new customers in orthopedics (€4.0 million) and mini-invasive surgery (LISI MEDICAL
Remmele);
■■
Overall improvement in management indicators.
FINANCIAL SITuaTION
2