LISI GROUP - Integrated report 2020

LISI — 2020 INTEGRATED REPORT 71 Acquisition of 100% of Termax completed In July 2020, the LISI Group acquired the remaining 49% of the capital of TERMAX LLC. This transaction, initially scheduled for Q1 2021, allows the LISI Group to extend its global footprint in the long term in clipped fastening solutions. The business and industrial synergies generated will accelerate the development of innovative solutions for weight reduction, electrification or equipping autonomous vehicles. This revival was accompanied by a change in the energy mix, with very strong growth in electric and hybrid vehicles in the second half of the year. This is one of the highlights of the period. Two triggers can account for this switch: the establishment of strong incentive measures, in Europe, particularly in France and Germany; and the emergence, in large metropolitan areas, of restrictive regulations for combustion engine vehicles, such as new low-emission zones (ZFE), which are now pushing consumers to purchase vehicles with a low environmental footprint. This dual dynamic is a very important factor in understanding the market developments. How is LISI AUTOMOTIVE preparing for this development? We intend to accelerate the development of new parts related to vehicle electrification, while remaining attentive to cost control and our breakeven point. Our efforts will go in three directions: respond to the dynamic of weight reduction with multi-material assembly solutions such as LISI HOLLOWELD ® (see page 37); offer on-board mechatronics parts, such as our complex gears, our activation and adjustment screws (see opposite) and our components used for the electrification of braking systems; develop fastening systems that meet requirements in terms of electromobility, in particular with constraints of tightness or vibration absorption. The restart of post-COVID automotive consumptionhas been accompaniedby a reversal of the energymix, with strong growth in electricity. Disposal of Mohr & Friedrich In June 2020, LISI AUTOMOTIVE finalized the sale of its German subsidiary Mohr & Friedrich GmbH located in Vöhrenbach, Germany, to ZerobaseInvest Holding GmbH. Mohr & Friedrich (€14.8 million in sales in 2019) specializes in hot forging and produces nuts and spacers for the heavyweight vehicle and trailer market, which has become non-strategic. LISI AUTOMOTIVE will continue to purchase hot-stamped parts for its French automotive customers from ZB Mohr & Friedrich.