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LETTER FROM THE MANAGEMENT
CONSOLIDATING ORGANIC GROWTH
Numerous strategic events marked this 2017 financial year particularly in
terms of scope, with firstly the sale at the beginning of the financial year of
the aeronautical foundry activity PRECIMETAL acquired as part of the
acquisition of MANOIR Industrie in 2014, which did not fall under the Group’s
strategic orientations; and especially with the acquisition of the U.S.
Automotive Fasteners company TERMAX.
Thus, following the takeover in 2016 of themedical company REMMELE based
in Minneapolis, the acquisition of TERMAXmeets the objective that the Group
had set itself to have each of its divisions present in all itsmajor worldmarkets.
With close to 400 employees in the United States, TERMAXmakes this country
the LISI Group’s second “employment territory” after France with 16% of its
workforce and 7 production sites.
At the same time and in order to consolidate their organic growth, all our
divisions continued their efforts to modernize their industrial facilities, as
shown by the record level of CAPEX in 2017; but they have also accelerated
the integration of automation and robotics - the number of robots implanted
in the Groupwill have almost doubled between 2016 and 2017 - and significantly
increased their means and their actions in R&D, as evidenced by the 44 patents
registered by the Group in 2017.
Outlook and challenges for 2018
Although the Group’s threemainmarkets remain well oriented in themedium
term, activity in the Aerospace Fasteners segment - a major contributor to
the Group’s performance - should however be slowed down at least in the first
half of 2018, following the destocking measures of our assembly products
taken by several key customers in the sector. On the other hand, the full-year
integration of TERMAX and the development of new products across all of
the Group’s divisions will constitute significant growth drivers.
In this context of contrasting perspectives, LISI is relying more than ever on
its internal transversal programs, namely the LISI Excellence Achievement
Program (LEAP), the E‑HSE (Excellence HSE), and the COS (Controlling
Operating System) to reinforce the organic development strategy relayed by
the continuation of targeted acquisitions offering high value-added products.
This two-driver strategy is based entirely on the motivation and skills of all
Group employees and on the trust of our customers, whomwe all wish to thank
sincerely and warmly on this occasion.
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