LISI GROUP - Integrated report 2022

THE CHALLENGES FOR 2023 Our ambition is to win leading positions in each of the niches in which the Group is active by relying on the two pillars of operational excellence and innovation. Progress has been notable with the ramp- up of investments, the deployment of new technologies, the impact of the digitization of all processes and the market shares gained thanks to new products. The Group has the ambition to do better with less, less consumption of materials, energy, labor, etc. by aiming for concrete and stated objectives for 2023 and 2030 which, in accordance with our commitments, go beyond Europe’s Global Compact or “Fit for 55” objectives. The winds will still be against us in 2023, particularly in terms of inflation, energy and human resources, which requires us to continue our efforts to adapt. LONG-TERM PROJECTIONS This desire to adapt to short-term volatility strengthens the position of the LISI Group, recognized as a strategic development partner by its major customers. This agility does not distance the LISI Group from its long-term trajectory, traced for years and bolstered by a centuries-old history. All market or external growth opportunities will be transformed if they coincide perfectly with our strategic axes of development. The solidity of the LISI Group was reinforced even during the COVID and the ability to rebound is preserved. The 2022 roadmap has once again been fulfilled; Free Cash Flow is positive, management indicators are improving, order intake for new products has never been so robust. Long-term expectations remain high and the teams are well determined to exceed them. We thank all the stakeholders for their confidence in our ability to meet the challenges of tomorrow and allow us to continue LISI’s formidable adventure.  I N 2022 , the LISI Group made up for a significant part of the drop in activity of the two years of COVID: after the drop in 2021, whose magnitude was unprecedented (-€500m), followed by 2022 (-€66m), the rebound was significant (€261m) and it had been anticipated. However, this recovery has come up against pitfalls that were impossible to foresee, such as strong and sometimes asymmetrical inflationary pressures, extreme tensions which affect recruitment and accelerate resignations, shortages of raw materials or components, and even the volatility of customer demand. Despite these headwinds, the continuation of the New Deal Plan made it possible to stay the course for the long term, while paying close attention to performance in the short term. In this sense, our teams have shown tremendous flexibility to achieve such results. The LISI Group must ensure the continuity of its customers’ strategic programs under optimal service, quality and performance conditions, which was the case in 2022. MESSAGE FROM MANAGEMENT Emmanuel Viellard CEO Gilles Kohler Chairman UNDERSTANDING LISI 4 LISI – 2022 INTEGRATED REPORT