LISI GROUP - Integrated report 2023

32 2 0 2 3 I N T E G R A T E D R E P O R T STRATEGY Profit Sales revenue: €1.63  Bn Free Cash Flow: €22.2 M The LISI Group strives to combine financial and non-financial performance over a long-term trajectory. It acts, as it has always done, in a responsible manner, respecting human and fundamental rights, applying business ethics, fighting corruption, and complying with tax laws. This conviction shared by all is the essential starting point to be profitable and sustainable. We remain convinced that our profitability, like our sustainability, rests on our ability to act together with our stakeholders in a responsible, ethical, and sustainable manner. As such, the Group is continuing its efforts and confirming its commitments. (1) SDG: Sustainable development goals. (2) GRI: Global Reporting Initiative. (3) The number of suppliers identified as “sensitive” increases each year. 3P #5Gobeyond our customers’ expectations #6 Involve our suppliers #7Secure our financial resources Challenges & Objectives z Offer competitive products and services that meet the highest standards. z Integrate and assess of our products’ carbon footprint. z Constantly seek to surpass our customers’ expectations. z Responsible procurement that takes into account our suppliers’ CSR performance. z Commitment of key suppliers to reducing their carbon footprint through a CSR evaluation plan. z Rigorous management of working capital requirements and inventory. z Currency hedging for up to 3 years to secure dollar contracts. z Differentiated funding sources. z Positive Free Cash Flow maintained each year. Objectives assessment Objectives assessment Objectives assessment Challenges & Objectives Newproducts (%of sales revenue) %of sensitive suppliers assessed as per CSR criteria SDG (1) 9: Industry, innovation and infrastructure GRI (2) 201‑1 SDG 9: Industry, innovation and infrastructure GRI 414‑1 / GRI 308‑1 SDG 8: Decent work and economic growth GRI 202‑1 7.8 7.3 LISI AEROSPACE 12.8 12 LISI AUTOMOTIVE 2022 200 suppliers (3) 2023 57 2024 65 2025 65 2030 100 2022 8.5 2023 4.7 2030 LISI MEDICAL Objectives being defined