LISI GROUP - Integrated report 2020

INTERVIEW EMMANUEL NEILDEZ CEO, LISI AEROSPACE How did the aerospace sector behave in 2020? Global aerospace has been affected by two major events. First of all, the suspension of the production of the Boeing 737 Max, which was officially notified at the end of January. We were impacted on our direct deliveries from our base in North America and on parts, such as leading edges, intended for the LEAP engine for our client Safran. The COVID-19 crisis broke out two months later. Just a few days after the lockdown was announced, production dropped very clearly in Europe. The US followed suit the following week. We had to close our factories for about a week, the time for us to specify our procedures and health standards and to deploy them across our sites in order to preserve the safety of our employees. How did you deal with the crisis? LISI AEROSPACE experienced contrasting rates of fall in activity depending on the sectors, each one having its very own industrial model. The Structural Components business, which includes forged and hot- formed parts for aircraft engines and aerostructure, is characterized by a short supply chain. Demand for this sector fell sharply: the fall in activity reached around 70% in Q2. The recovery started relatively quickly, although demand is still far below the pre-crisis level. The production of our sites has been resynchronized with those of our customers since January 2021. The pace should gradually accelerate, and then pick up sharply from 2022. The division’s fine balance between our client portfolio on the one hand and our business on the other puts us in a favorable position to benefit fromthe recovery. LISI — 2020 INTEGRATED REPORT 65 €663.4 m 2020 SALES 54% AS A % OF GROUP SALES 5,504 EMPLOYEES AROUND THE WORLD