LISI GROUP - Integrated report 2020

In order to improve its efficiency, the Board is assisted by 4 Committees: _ Audit Committee _ Nominations and Governance Committee _ Compensation Committee _ Strategic Committee. As a follow up on the remarks resulting from the Board’s latest self-assessment questionnaire, efforts were made in 2020 to deal with the Group’s major challenges and strategic orientations, which are the subject of a specific annual meeting. The decisionmade in 2020 to merge the Governance Committee and the Nominations Committee to form only one Committee, is also noteworthy. The latter, which held its first meeting in February 2021, examined the composition of the Board with the objective of strengthening its expertise. Its work, validated by the Board of Directors, resulted in the candidacies of two new members who will be submitted to the votes of the shareholders at the General Meeting of the LISI Group in 2021 ruling on the accounts for the 2020 financial year. Separation of the functions of Chairman of the Board of Directors and Chief Executive Officer Since February 2016, the Board has chosen to separate the functions of Chairman of the Board of Directors and Chief Executive Officer. This decision had two main objectives: ensure a “smooth” succession process and strengthen the dynamism of the Group through rejuvenated management and the organization of the Executive Committees surrounding the Chief Executive Officer and the Deputy Chief Executive Officer, extended to new functions and notably including more women in management positions. During that same meeting, the Board of Directors decided to appoint a lead director and to position him as Vice-Chairman of the Board with the mission of helping the Chairman on governance issues. Two new salaried directors Since autumn 2020, two directors representing employees have joined the Board, the first one appointed by the Group Committee and the second one by the European Works Council. Their membership in the two major divisions of the LISI Group – aerospace and automotive – enables the Board’s expertise to be supplemented by “field” skills. All these achievements show that governance and management issues remain at the heart of the concerns of the Board and its Committees, both in their composition and in their organization, always with the goal of improving the performance of the LISI Group in all its aspects. 10 MEETINGS IN 2020 100% PARTICIPATION RATE LISI — 2020 INTEGRATED REPORT 57