The LISI Group achieves its financial objectives in 2022 in a still volatile environment where inflation upsets the balance

•  Sales up 22.5 % to €1.42 Bn:

   - Sustained business growth in Aerospace and Medical and new products in Automotive;
   - Favorable impact linked to the soaring US dollar and the partial pass-through of inflation on sales prices;

•  Main financial objectives achieved:

   - EBIT up +€22.5 M to €89.1 M;
   - Current operating margin improved to 6.3 % of sales (+0.6 point compared to 2021);
   - Operating Free Cash Flow* positive at €19.0 M.

•  Outlook:

   - The price increase to be passed through to customers will be even more significant in 2023;
   - The solidity of the economic model is intact: healthy financial structure, secure strategic supplies, production tools calibrated to respond to the new growth cycle;
   - Financial indicators improved in absolute value.

LISI AEROSPACE :

•  +28.5 % growth in sales to €717.3 M (2021: €558.1 M) driven by the ramp-up of single-aisle aircraft at the main customers, a positive currency impact mainly linked to the soaring the dollar against the euro and the consolidation of B&E Manufacturing;

•  +0.3 point improvement in current operating margin to 7.0 % of sales (2021: 6.7 %), penalized by the inflationary context and labor shortages in the United States;

•  Operating Free Cash Flow positive at €9.7 M in a context of increased activity and the build-up of strategic inventories to secure the ramp-up.

LISI AUTOMOTIVE :

•  Sales revenue: €557.6 M (+15.1 % compared to 2021), driven by the ramp-up of new products for the electromobility market;

•  Favorable impact linked to the soaring US dollar and the partial pass-through of inflation on sales prices;

•  Current operating margin improved to 5.0 % of sales (+0.1 point), limited by the impact of inflation on all manufacturing costs;

•  Operating Free Cash Flow up to €9.4 M thanks to the proper adjustment of the working capital requirement to the level of activity;

•  Excellent momentum in new product order intake.

LISI MEDICAL :

•  Sales revenue: €150.8 M (+23.6 % compared to 2021) thanks to the growing contribution of new products and a favorable currency impact, mainly attributable to the soaring dollar;

•  Further significant improvement in the current operating margin (8.6 % of sales or +2.6 points / 2021);

•  Operating Free Cash Flow remains positive at +€1.0 M thanks to the good adjustment of the working capital requirement and after rising CAPEX.

OUTLOOK

The major uncertainty of the coming financial year relates to the ability to pass through to customers the increases in costs incurred which will be even more significant in 2023, in particular for energy and wages.

The Group has already taken all the necessary measures to absorb these pressures, preserve the robustness of its economic model and its ability to bounce back:

   •  Healthy financial structure,
   •  Secure strategic supplies,
   •  Production tools calibrated to follow the new growth cycle.

Besides, the levels of order intake for new products across the three divisions position the Group favorably in its various markets for the future.

Against this difficult backdrop, the Group expects positive organic growth for the 2023 financial year, an increase in the main financial indicators in absolute value and positive operating Free Cash Flow with the reduction of inventories as a priority objective.