LISI GROUP - 2018 Financial report

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2.6.5 IResearch and development expenses
The LISI Group’s mission is to carry out intensive research and
developmentactivities,todevelopnewproducts,theuseofnewmaterials
and to develop innovative production processes. This research and
development activity is carried out at various levels: either as part of a
co-operative venture between research and design departments within
our own divisions and those of our customers, or to develop or improve
certaincomponentsorindustrialprocesses.Thesearemainlycomprised
of personnel expenses dedicated to R&D services. Staff directly
dedicated to R&D represented in 2018 some 2.2% of the Group’s
employees.
The expenses incurred for the last three financial years are shown in the table below:
In millions of euros 2018 2017 2016
Research and Development expenditures 30,9 27,5 26,3
% of sales revenues 1,9% 1,7% 1,7%
Activated projects 2,0 1,3 0
2.6.6 INon-recurring operating expenses and revenues
Non-recurring operating expenses and revenues break down as follows:
(in thousands of euros) 12/31/2018 12/31/2017
Non-recurring operating expenses
Beteo disposal (419)
Industrial reorganization costs (4,768) (3,944)
Restructuring costs 0 (481)
Other costs (1,030) (553)
Reserve allowance for industrial reorganizations (7,476) (611)
Total (13,693) (5,588)
Non-recurring operating revenues
Sale of Précimétal 259
Industrial reorganization plan provision reversals 3,427 1,277
Reversals of provisions allocated to restructuring 0 372
Other revenues 0
Total 3,427 1,908
Non-recurring operating expenses and revenues (10,266) (3,680)
Therulesforthepresentationanddefinitionofnon-recurring incomeand
expenses remain unchanged compared to December 31, 2017.
The non-recurring expenses comemainly fromstudies on the relocation
of the Bologne (Haute-Marne) site.
A€2.2millionunusedprovisionforindustrialreorganizationwasreversed.
A €7 million was made to cover decreases in the utility value of certain
assets.
To the Company’s knowledge, there are no other litigation, arbitration or
non-recurrent events that have, or have had, a significant impact on the
financial situation, earnings, business or assets of the LISI Group.