LISI GROUP - Integrated report 2023

14 2 0 2 3 I N T E G R A T E D R E P O R T PROFILE LISI MEDICAL How has the division adapted to the market in 2023? LISI MEDICAL is present on the market for minimally invasive surgery (MIS) instruments for soft tissues and the market for reconstruction implants for joint surgery. In 2023, we experienced very strong growth thanks to our robust MIS positioning in the US, combined with a good trend in Europe. We will focus on the development of minimally invasive surgery as growth opportunities are stronger there for LISI MEDICAL. Orthopedics remains a major strategic focus for our division, due to its size and stability. How do you adapt? Our strategy is focused on supporting our clients in their growth dynamic with significant investments, while offering the best in terms of quality, cost, and service. Regarding quality – an essential dimension in the medical sector – we are recognized for being extremely demanding. Regarding costs and deadlines, we systematically optimize our processes as part of the LISI SYSTEM, our continuous improvement program. A first wave of automation, now completed, has allowed for significant productivity gains. Today we are embarking on a second wave of robotization which will focus on more complex phases of production, such as forging or the installation of autonomous cells integrating several consecutive operations. This step, which has already mobilized significant capital expenditures in 2023, constitutes an important challenge for the division. What are the impacts on the business lines, on production? This new wave of robotization and autonomy improvement will require significant work on optimizing production processes. At the individual business line level, on the other hand, although there is a need for adaptation, the impact will remain limited insofar as these developments and new digital tools are designed to facilitate the work of our employees. How do you tackle environmental challenges? LISI MEDICAL is fully part of the Group’s overall plan. Actions to reduce our energy consumption should allow us to save 1,400 MWh over the period 2024-2027. In terms of renewable energy, we aim to produce 850 MWh of electricity annually from solar panels by 2030, which will represent 3% of our consumption. We will also install electric charging stations in our French factories to allow our employees to come by electric car. In terms of governance, we aim to have 30% women cadres, and to ultimately evaluate more than 70% of our suppliers on CSR criteria. How do you see LISI MEDICAL 20 years from now? We anticipate relative stability in our orthopedics activity and significant growth in our MIS activity, all of which should enable us to pass the €300 million mark by 2027. In the longer term, our ambition is to reach a critical size and become a key player in these two markets in their consolidation phase. To achieve this, we must rely both on internal growth – which we have done over the last two years – and on external operations to meet, tomorrow, the needs of major global clients under the best conditions. “We will focus on the development of minimally invasive surgery as growth opportunities are stronger there for LISI MEDICAL. Orthopedics remains a major strategic focus for our division, due to its size and stability.” Lionel Rivet CEO FIND OUT MORE