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LISI 2016 FINANCIAL REPORT
2.2.18.7 Statement of cash flows
The Group has opted to present its consolidated cash flow statement
in accordance with the IFRS model.
2.2.19
I
Segment information
The LISI Group presents its segment information in accordance with
the criteria defined by IFRS 8.
An operating segment is a component of an entity:
–
–
that engages in business activities from which it may earn revenues
and incur expenses (including revenues and expenses relating to
transactions with other components of the same entity);
–
–
whose operating results are regularly reviewed by the chief
operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance;
and
–
–
for which discrete financial information is available.
The Group’s activities in 2016 are spread over three business segments,
in which the three divisions operate:
–
–
LISI AEROSPACE, which combines all the activities in the aerospace
market;
–
–
the LISI AUTOMOTIVE division, which covers all activities in the
automotive market;
–
–
LISI MEDICAL, which covers all activities in the medical market.
Other activities mainly include the activities of the Group’s main
company.
2.2.20
I
Indicators
The Group uses the indicators defined below.
Free Cash Flow
: Operating cash flow minus net industrial CAPEX and
changes in working capital requirements (see chapter 3 note 2.6.2.3
Cash and cash equivalents).
Return On Capital Employed (ROCE):
Ratio of EBIT to average capital
employed (Shareholders’ equity + Net debt for years and N-1).
Return On Equity (ROE):
Ratio of net earning to total shareholders’
equity.
Gearing:
Ratio of Net Debt to the Group share of consolidated equity.
Book to bill:
Ratio between the orders taken during the period and
the billing during the same period.
Revalued Net Assets (RNA):
Average of [(0.95 x Group Sales
Revenue) + (6.5 x Group EBITDA) + (10 x Group EBIT)] - Average Group
Net Debt for years N and N-1.
2.3
I
SCOPE OF CONSOLIDATION
2.3.1
I
Changes in the consolidation scope
in the financial year 2016
■■
Acquisition of 100% of the RTI Remmele Medical, Inc. securities.
■■
The company LISI AEROSPACE Additive Manufacturing was set up,
60% held by LISI AEROSPACE and 40% by Poly-Shape.
■■
The LISI Group increased its equity interest in the Indian company
Ankit Fasteners Pvt Ltd enabling it to increase the percentage of its
holding from 49.06% to 51%. Ankit Fasteners Pvt, Ltd, previously
consolidated by the equity accounting method, was consolidated
by the full consolidation method as of January 1, 2016.
■■
The company LISI Otomotiv Sanayi ve Ticaret Limited Sirketi, was
set up, a wholly owned subsidiary of LISI AUTOMOTIVE Rapid SAS.
2.3.2
I
Impact on the Group indicators of the consolidation
of LISI MEDICAL Remmele which took place during
financial year 2016.
In millions
of euros
Impact in %
on the Group
indicatorse
Sales revenue from May
to December 2016
44.9
2.9
EBIT from May to
December 2016
4.5
2.9
Changes in scope are included in the thresholds recommended by
the supervision authorities. We have not established any proforma
statements.
CONSOLIDATED FINANCIAL STATEMENTS
3