LISI GROUP - Activity report 2018

LISI MEDICAL

MARKET DYNAMICS

Themarkets for orthopedics andminimally invasive surgery

(gynecology, abdominal, cardiac, urological surgery, etc.)

where the LISI MEDICALdivision operates, are nowboosted

by the aging of populations. In 2018, they posted respective

growth levels of 4%and 8% in value.

Demand, so far coming from highly developed countries -

the US market alone “consumes” 40% of the world market

for this type of products - is gradually shifting towards less

maturemarkets. This year, the Chinese and Indianmarkets

grewby8%and9%, respectively. These twogeographiesare

valuable growth drivers for the healthmarkets.

STRONG PRICE PRESSURE

While these countries are now mainly subcontractors

- most of the world’s major players in the medical sector

buy fromspecialists - the situation is favorable to the price

reductions demanded by customers tomeet the economic

constraints of governmental health policies.

Such pressure is now fostering the trend towards

concentration in the sector. This trend, which has prevailed

for several years, and in which LISI MEDICAL took part at

the end of 2016 when acquiring US company Remmele,

has helped to resize the market around the most dynamic

players. It has also resulted in a constant decrease in the

number of intermediate size subcontractors.

DEVELOPMENT OF MEDICAL

ROBOTICS

Medical is also a sector where innovation is constant and

a powerful growth driver. The medical robotics market,

which is relatively recent, grew by 20% in 2018, and the

number of new entrants is continuing to grow. So are the

areas of application for which the type of mini-invasive

surgery tools proposed by LISI MEDICAL are required.

The global market for surgical robots is expected to grow

by 10.4% annually by 2023, to reach $ 6.5 billion in sales,

up from $ 3.9 billion in 2018. The subcontracting markets

where LISI MEDICAL is positioned display growth levels

ranging from 5 to 6%.

+10

Growth of robotic surgery

RESPONDING TO CONSTANT

DEMAND FOR INNOVATION

FROM HEALTH MARKETS

+4%

Growth of orthopedic

prostheses markets

+8%

Growth of minimally

invasive surgical

instruments