LISI GROUP - Activity report 2019

What should 2019 be remembered for? Despite the further decline in global automotive production, the LISI AUTOMOTIVE division’s sales increased by 1.2% to reach a new record level at €587.9 million. Such growth results from the division’s continued international development – acquisition in 2018 of Hi-Vol Products, in the United States, which is now consolidated – and the ramp-up of new products in the Clipped Solutions activities in Morocco and Mexico, and Safety Mechanical Components in Mexico and the Czech Republic. The cost adjustment measures initiated at the end of 2018 (stock price drop, CAPEX optimization) produced their effects throughout 2019 with an acceleration in the second half. Priority was given to preserving Free-Cash-Flow, which reached a record level of €20 million. How did the division behave? New product order intake is close to the record level of 2018. It represents 14.6% of annualized sales, or around €85 million. We also recorded the first significant synergies between the US company Termax, acquired in 2017, and the historic sites of the Clipped Solutions segment. They are measured as much in terms of product and process development as in the acceleration of cross-selling, like the side airbag tensioner solutions on the European market. The division also finalized the sale to AFF St Flo of the LISI AUTOMOTIVE Former site in Saint-Florent-sur-Cher (see page 17) . This transaction illustrates the desire to focus the division’s activities on high value-added products. What are the prospects and priorities for 2020? We are anticipating a drop in the world market. We will continue to develop high value-added parts and we will promote commercial and technical synergies with the American subsidiaries Termax and Hi-Vol Products. The cost reduction plans already initiated and the deconsolidation of the chassis hardware and steering pivots activity of LISI AUTOMOTIVE Former should limit the decline in the division’s profitability. The ramp-up of new products, the improvement of delivery times in certain areas (NAFTA in particular) and the innovation policy conducted on multi-material assemblies will consolidate activity in a complex environment. Questions to François LIOTARD Chief Executive Officer, LISI AUTOMOTIVE New product order intake is close to the record level of 2018. It now represents 14.6% of annualized sales, or around €85 million. 73 LISI 2019