LISI GROUP - Activity report 2019

Questions to Jean-Louis COLDERS Chief Executive Officer, LISI AEROSPACE What should 2019 be remembered for? The year 2019 was marked by many geopolitical and social tensions. In the aerospace sector, the difficulties experienced by Boeing's B737 MAX program and the coronavirus in China are the main source of uncertainty. LISI AEROSPACE, however, ended the year with sales of €996.6 million, up 6.7% versus 2018. The first effects of the lower production paces of the B737 MAX were noticeable only during Q4 and were offset by the good dynamics of the other programs. How did the division behave? The division again showed agility and resilience this year. Agility, because it was necessary to adjust production where demand was lower, while concentrating exceptional resources where the load remained very high. The teams remained very close to the customers and were able to respond quickly to their requests. Resilience, finally, to maintain the groundwork despite the uncertainties: robotization and digitalization plans, development of new products, refocusing, reorganization and training, etc. These progress plans and the maintenance of volumes have made it possible to defend the operating margin. Several highlights punctuated the year. The sale of our sheet metal work and aerostructure assembly activities (see also page 16) has made it possible to simplify the organization of LISI AEROSPACE into 3 independent Business Groups on the industrial and commercial front. The signing of the One Fast contract with Airbus, which consolidates our market share with the European aircraft manufacturer, and the agreement with MTU Aero Engines for the delivery of one million compressor blades fully produced in France, were very unifying moments internally. What prospects for 2020? Visibility in the commercial aircraft segment is subject to some uncertainty. But aircraft manufacturers remain confident in the prospects for long-term market developments. The division has taken the necessary measures to cushion the effects of the downturn linked to the B737 MAX and to continue its policy of gaining market share and expanding the range of fasteners in the United States. We remain resolutely convinced of our strenghts to ensure the execution of our strategy and take advantage of the recovery, the horizon of which will probably become clearer in the coming months. The division has shown agility and resilience. The pursuit of progress plans and the maintenance of volumes made it possible to defend the operating margin. 63 LISI 2019