LISI GROUP - Integrated report 2022

AIMING FOR EXCELLENCE What has been your roadmap and what are your forecasts for 2023? We have remained focused on the axes that we had defined in order to manage this recovery but also to prepare for the future. One of the highlights of 2022 for the division was the handing over of the keys to Forge 2022 in Chaumont (in the Grand-East region in France), which constitutes a strategic investment for the Group (see opposite). We have also continued and strengthened our efforts in terms of digitization and management of big data at our sites and on our production lines (see opposite). We are still very active in the major research and development programs related to the aircraft of the future initiated in Europe by Airbus. LISI AEROSPACE participates in the development of the technological bricks that will constitute real breakthrough innovations tomorrow, both in fasteners and in structural components. Regarding forecasts, the expected recovery in long-haul requirements – a trend that could materialize in the next 18 to 24 months – supports our initial forecasts of a return to 2019 activity levels around 2024. How do you assist recovery? This market momentum is obviously a positive and structuring element, which impacts our organization in terms of capital expenditures, recruitment, training, purchases of materials, etc. Managing the return to growth faces several economic factors that have had adverse effects on industrial activities for several months. First of all, inflation weighs on all of our costs and affects the entire scope of our activity. In 2022, material costs experienced the strongest increases, followed by consumables and then energy. In 2023, energy will come first and will mainly affect France and Turkey. Recruitment difficulties and tensions in the job market are the second obstacle we face in the areas where we operate. This phenomenon, which affects the entire industry, forces us to adapt the way we schedule production rates and to imagine new ways of attracting talent, especially among young people. The supply chain remains disrupted. Delayed deliveries sometimes slow down our supplies and lengthen the lead times for some of our subcontractors. Everywhere, for us as for our competitors and our suppliers, the industrial capacities, in equipment, in number of plants are in place but the human resources to meet the volumes requested are missing. The situation is even tenser in North America. Things are falling into place gradually, but the delays can be significant. The division remained focused on the areas we had defined: support recovery and prepare for the future by remaining very active in programs targeted at the aircraft of the future.” – Emmanuel Neildez CEO, LISI AEROSPACE LISI AEROSPACE 60 LISI – 2022 INTEGRATED REPORT