LISI GROUP - Integrated report 2020

Robotization plan The robotization and automation plan for Hérouville-Saint-Clair (Calvados), initiated in 2020, is being rolled out. The two robots received on site are intended for the manufacture of hip implants, during forging and polishing operations. The goal is to deploy a robotization program on the Normandy site over several years. Eventually, seven robots are expected within five years. The robotization of Minneapolis, initiated in 2019, continued in 2020. international contractors – offer ready-to-use surgical and orthopedic solutions: a large number of our products are thus placed directly in consignment stock in hospitals, for availability according to their needs. This positioning involves a very high level of service. It is important because beyond the market itself, our activity depends on the strategy implemented by our customers in the management of the supply chain. In 2020, some of our customers preferred to reduce their inventories in order to focus on cash management, while others maintained their order level, or increased it when they were in the product launch phase. What operational decisions have youmade? At the height of the crisis, we had to partially close the French sites at Hérouville and Neyron and we resorted to partial unemployment at Escondido, California. We maintained a minimum level of activity across our factories as soon as the health safety of the employees was ensured. While the effects have been gradual and staggered between the US and France, we have maintained our agility, in particular thanks to the implementation of effective government support plans in France and the US. Is the recovery underway? Here again, this varies depending on geography. The impact of the crisis was indeed more noticeable in Europe than in the US, where it was generally business as usual in the hospitals. In Europe, the recovery, observed as of June was slower and more gradual than expected given the health protocols put in place in operating theaters: the number of operations has dropped from six to four per day on average. Many people, especially the elderly, have also chosen to postpone their procedures whenever possible. Hospitals will take time to regain their pre-crisis pace. LISIMEDICAL 5 _ PERFORMANCE RESULTS