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COMPANY ACTIVITY FOR THE FINANCIAL YEAR AND OUTLOOK FOR THE COMING YEAR
The key role of LISI S.A., the parent company of the LISI Group, is
to oversee projects of general interest and co-ordinate Company
activity. More specifically, LISI manages the following services for its
subsidiaries:
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strategic plan validation, external growth procedure, action plans,
resource allocation;
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outlining strategy in an annual budget plan;
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financial control and internal audit (stemming from the COS program);
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financial and fiscal consolidation;
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financial optimization, centralized cash management for the Group,
management of investments and financial liabilities, hedging of
foreign currencies and interest rates;
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insurance coordination, procurement, quality, research and
development;
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general policy and audit on health, safety and environment; (E-HSE),
human resources and CAPEX as well as industrial progress plans
(LEAP);
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management of strategic projects and implementation of the
“LISI SYSTEM”.
Earnings at December 31, 2017
The remarks below relate to the income statement for 2017.
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In 2017, operating income amounted to €11.1 million, compared with
€10.6 million in 2016 and was broken down as follows:
•
•
the sales revenues
of LISI S.A. amounted to €9.7 million compared
with €9.4 million in 2016, an increase of 3.8%. They are essentially
made up of services invoiced to the subsidiaries of LISI S.A.
in respect of assistance, control and coordination of activities.
These invoices pass on the operating expenses of LISI S.A. to the
subsidiaries in 2017, with a 10%margin;
•
•
other operating
income amounted to €1.6 million in 2017, compared
with €1.3 million in 2016. This itemmainly consists of:
–
–
a provision reversal of €0.9 million on the performance share
allocation plans for 2014, for which the shares were vested by the
employees in 2017,
–
–
specific charge-backs to subsidiaries in the amount of €0.6million;
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operating expenses
amounted to €10.2 million in 2017, an increase of
0.6% compared to 2016;
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as a result of the increased income and the stability of expenses,
operating income rose from+€0.5million in 2016 to +€1.1million in 2017,
an increase of +€0.6 million;
■■
financial income
stood at €6.0 million, compared to €33.4 million in
2016. It is explained by:
•
•
revenues
consisting primarily of dividends received from LISI
AEROSPACE and LISI AUTOMOTIVE for €+28.0 million compared
to €22 million paid by LISI AEROSPACE in 2016, interest on group
current accounts for €+4.8 million in 2017 compared to €4.3 million
in 2016 and net investment capital gains of €+2.6 million in 2017
compared to €0.7 million in 2016;
•
•
interest expenses
made up mostly of interest on borrowings and
group current accounts in the amount of €–6.8 million are stable
compared to 2016. A provision for unrealized exchange losses on
Group loans in US dollars was also recorded for €6.4 million;
•
•
the foreign exchange loss
was €-16.2 million in 2017, compared
to a gain of €+13.8 million in 2016, mainly due to the decline in the
US dollar. It is essentially the result of changes in currency rates
for investments in US dollars and the current accounts of foreign
subsidiaries also denominated in that currency;
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non operating profit
amounted to €0.2 million for the year 2017;
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corporate income tax
comprises a tax income of +€12.8 million
consisting of:
•
•
tax income of €2.2 million following the claim of the 3% contribution
on dividends paid;
•
•
a tax integration gain of €+10.6 million for fiscal year 2017, which
includes the exceptional contribution of 15% paid in December 2017
that negatively impacts that gain by €1.1 million;
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consequently, the net earnings
of LISI S.A. were €+20.1 million in 2017,
compared to €+33.0 million in 2016, a decrease of €12.9 million, which
can be explained entirely by the impact of losses in connectionwith the
decline of the US dollar over the period;
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shareholders’ equity increased
from €221.2 million in 2016 to
€217.5 million at the end of 2017. It was reduced by the distribution
of the dividends paid in May 2017, for an amount of €–23.9 million in
respect of the 2016 profit and increased by the year’s net earnings of
€20.1 million;
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cash available excluding current accounts at year-end
amounted to
€133.2 million, compared to €101.3 million in 2016: this item consists
of monetary SICAV instruments and guaranteed capital investments
denominated in euros and USD (including $129.4 million in short-term
SICAVs);
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net debt
totaled €+52.0 million at the end of 2017 compared to
€-16.8 million at the end of 2016 due to the decrease in the cash
position in USD and the increase in financial debts following the
drawdown of additional commercial paper.
LISI 2017 FINANCIAL REPORT
COMPANY FINANCIAL STATEMENTS
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