2024 Integrated Report A key player in a industry sustainable
Contents 2 LISI, a key player in a sustainable industry 4 Editorial 6 Profile Shape and Share Sustainable Links 8 LISI Group 10 LISI AEROSPACE 12 LISI AUTOMOTIVE 14 LISI MEDICAL 16 2024 Highlights 18 Outlook Sparking the momentum and setting the targets 20 Our four-pronged strategy 22 LISI’s CSR strategy rewarded in 2024 24 Our business model 26 3P: People, Planet, Profit 36 Innovation: envisioning the future 40 Excellence: giving purpose to achievement 44 Governance Setting the direction for our actions 46 A code of conduct to guide individual actions 47 A charter to promote and regulate the use of AI 48 Operational management 50 The Board of Directors 52 The Committees 1 LISI - 2024 Integrated Report
2 LISI - 2024 Integrated Report LISI, a key player in a sustainable industry Founded in 1777, the history of the LISI Group is deeply rooted in the legacy of the families who established it. From the beginning, they shared a far-reaching vision and a common ambition: to achieve excellence through an innovative, competitive, sustainable, and global industry. Today, the LISI Group consists of three divisions, 42 production sites, and over 10,000 employees worldwide. Each employee brings unique expertise derived from a shared industrial heritage and individually contributes to the Group’s purpose: Shape and Share Sustainable Links. Through its products and values, by continuously pushing the boundaries of excellence and innovation, LISI’s employees are ambassadors for the industry of tomorrow. The LISI Group maintains a family-oriented spirit that prioritizes long-term vision. Its mission is to ensure the growth of its divisions while preserving their unique identities and providing each with the freedom to thrive. The Group also offers all necessary resources to support the development of their product lines. The Group’s vision is built on a CSR (Corporate Social Responsibility) approach known as “3P” — People, Planet, Profit — which places sustainability at the core of its strategy. This vision is further supported by a foundation of shared values that underpin the performance and excellence of its divisions. Each employee brings unique expertise derived from a shared industrial heritage and individually contributes to the Group’s purpose: Shape and Share Sustainable Links.”
Key Figures €1.79 Bn SALES REVENUE €115 M EBIT €57.7 M FREE CASH-FLOW (*) €100.4 M INDUSTRIAL CAPEX €27.9 M R&D EXPENSES 10,262 EMPLOYEES 42 PRODUCTION SITES 13 COUNTRIES (*) Net operating cash flow minus net capex and changes in working capital requirements. 3 LISI - 2024 Integrated Report
4 LISI - 2024 Integrated Report Now that our targets were confirmed in 2024, we’re unlocking some really exciting opportunities for the LISI Group’s long-term growth.”
5 LISI - 2024 Integrated Report The LISI Group’s industrial journey is on a roll! Editorial Jean-Philippe Kohler LISI Chairman Emmanuel Viellard LISI CEO 2024 was a year of contrasts that allowed the LISI Group to confirm and strengthen its long-term positions with strategic clients across its three divisions. It was a year that enabled us to prepare for the future with confidence while achieving our objectives of revenue growth, improving financial indicators, and consolidating our financial position. Our efforts are focused on the two pillars of our long-term strategy: innovation and operational excellence. The ultimate goal provides us with a real differentiation recognized by our clients. This progress is driven by all the Group’s teams — more than 10,000 men and women spread across 42 production sites, 3 research centers, and the headquarters in Grandvillars (in the Territoire of Belfort). Investments in training, retention efforts, and attractiveness (2,015 hires in 2024) are concrete expressions of our recognition of the importance of talent in the Group’s success. Long-term concerns cannot exist without an ambitious CSR policy. The historical responsibility that extends the legacy of the two founding families for over 250 years is at the heart of our purpose: “Shape and Share Sustainable Links” which revolves around the 3Ps (People, Planet, Profit). The confirmation of our ambitious goals in 2024 reinforces our ability to reach new milestones within our strategic horizon, provided that teams can meet the numerous challenges posed by demanding markets and an unpredictable environment. The trust of our stakeholders encourages us to continuously strive for excellence in all areas. The LISI Group’s industrial journey is on a roll!
6 LISI - 2024 Integrated Report Shape and Share Sustainable Links Profile 8 LISI Group, Industrial excellence and innovation, pillars of sustainable development 10 LISI AEROSPACE 12 LISI AUTOMOTIVE 14 LISI MEDICAL 16 2024 Highlights
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8 LISI - 2024 Integrated Report With 250 years of history, the LISI Group leverages operational excellence and innovation to design and produce high-value-added assembly solutions and components for the aerospace, automotive, and medical industries. The Group is committed to supporting its clients worldwide in tackling challenges and building a sustainable industry. Long before establishing its purpose — “Shape and Share Sustainable Links” — LISI places societal and environmental responsibility at the core of its strategy and collective approach. This commitment, shared by all employees, gives meaning to the Group’s actions, defines the operational framework for achieving its objectives, and lays the foundation for its future development. Group Industrial excellence and innovation, pillars of sustainable development Three complementary activities, each with its own strong identity LISI AEROSPACE €1,030 M (+22.8% / 2023) 58% OF GROUP SALES 6,279 EMPLOYEES 19 SITES ACROSS 8 COUNTRIES A part of the LISI Group for over 50 years, LISI AEROSPACE manufactures fasteners and structural assembly components for the world’s leading aerospace companies. Through groundbreaking innovations, this division contributes to the development of safer aircraft capable of addressing future challenges in decarbonization. LISI AUTOMOTIVE €580 M (-5.0% / 2023) 32% OF GROUP SALES 3,076 EMPLOYEES 19 SITES ACROSS 8 COUNTRIES At the core of the LISI Group’s business since its inception, LISI AUTOMOTIVE produces high‑value-added assembly solutions and components that enable the creation of safer, lighter, electrified, and connected vehicles. The division delivers exceptional excellence and plays a key role in transforming the automotive industry. LISI MEDICAL €185 M (+1.8% / 2023) 10% OF GROUP SALES 812 EMPLOYEESS 4 SITES ACROSS 2 COUNTRIES A part of the LISI Group for nearly 20 years, LISI MEDICAL manufactures high-value-added medical implants and instruments for minimally invasive surgery. These cutting-edge products make surgeries safer and more accessible, contributing to better health for all. Profile
9 LISI - 2024 Integrated Report Key Milestones 4SITES IN ASIA 2 in China 1 in India 1 in Turkey 26 SITES IN EUROPE 3 in Germany 1 in Spain 19 in France 1 in Poland 1 in the Czech Republic 1 in the UK 2SITES IN AFRICA 2 in Morocco Locations 42 SITES ACROSS 13 COUNTRIES 10SITES IN NORTH AMERICA 1 in Canada 7 in the US 2 in Mexico A history of sustainable links Founded in 1777 in Beaucourt by Frédéric Japy, LISI began as a small watchmaking workshop located in an industrial region. By integrating its expertise into working with steel wire, the Group established the foundation of its business model and initially expanded into the automotive sector, which would become one of its main drivers of growth. In the 1960s, following the successful merger of family-owned companies that had been associated from the start, the company became France’s leading manufacturer of screws and bolts for the automotive industry. In 1977, the Group took a strategic turn by entering the aerospace sector and strengthening its expertise in producing increasingly complex fastening systems. This positioning, progressively reinforced, enabled LISI AEROSPACE to become one of the top three global leaders in the industry, recognized for its technological mastery, production capabilities, and industrial performance. In the 2000s, to assert its international scope, the Group adopted the name LISI, marking a new phase in its global growth strategy. Building on this momentum, LISI diversified its activities: first with the creation of LISI MEDICAL, specializing in reconstructive surgery and now a key player in producing minimally invasive surgical instruments. Diversification continued in the automotive sector with the acquisition of U.S.-based Termax in 2018. This acquisition enhanced the Group’s expertise and innovation capacity in clipped fasteners for automobiles. Today, LISI is firmly focused on the future, aiming to consolidate its leadership in global markets by relying on innovation and productivity optimization through operational excellence.
10 LISI - 2024 Integrated Report LISI AEROSPACE OPTIBLIND™ High pressure hydraulic fitting Latch 1 • 2 • 3 • RIB fitting TYX O-ring 4 • 5 • 6 • Profile • 2 • 3 • 1 • 4 • 5 • 6
11 LISI - 2024 Integrated Report autonomously, including during nights and weekends. These structural advancements have had a significant impact on roles within the company: operators performing repetitive and strenuous tasks are being replaced by technicians and engineers capable of analyzing data and managing automated, complex processes. This transformation, which we prioritize through internal training, is progressing positively and making our roles more attractive. How are you progressing on issues related to decarbonization? We are continuing the momentum of the strategy initiated in recent years, and progress has been very positive. These efforts are closely tied to our product and process innovations. The OPTIBLIND™ fastening system (see p. 38), which is perfectly suited to the architecture of future energy-efficient aircraft, is in its final qualification phase. Within two years, the first parts assembled with OPTIBLIND™ will be flying on aircraft — a decisive milestone for our teams. Additionally, the TYX process, which enables the production of structural parts that can replace components previously manufactured using high-power forging techniques, offers significant energy and material savings (see p. 37). These advancements, combined with the energysaving and monitoring measures we are implementing in our factories, are helping us significantly reduce our industrial footprint. We are also working closely with our material suppliers — since the production of our raw materials, particularly titanium, accounts for the largest share of our CO2 emissions — to help them optimize their energy consumption and increase recycling rates. These efforts have a substantial impact on achieving our decarbonization goals. How did the market perform in 2024? It remains highly robust, with over 20% growth for the third consecutive year. Production and delivery volumes in the last quarter of 2024 exceeded those of 2019. The global aerospace sector continues to be extremely dynamic, and the order books of major manufacturers Airbus and Boeing provide excellent long-term visibility. Growth is expected to continue into 2025, particularly in segments such as military, helicopters, and business aviation, which are also experiencing strong rebounds. While this expansion phase is encouraging, it remains challenging to manage. Following recent years of material supply tensions, which have now been resolved, the primary challenge is recruiting, training, and retaining a skilled workforce to meet this demand. How do you address these challenges? We tackle these challenges on several fronts. The first focuses on our ability to recruit and bring new employees up to the level of skill and expertise required to meet the standards of excellence and industrial efficiency expected by our clients. The hiring and upskilling plan we implemented after COVID is now bearing fruit, and the impact of these training programs is clearly visible, particularly in specialized areas. The second focus is the development of automation across our sites, a process we began in 2017. Many production lines now operate Interview Emmanuel Neildez CEO LEARN MORE The recruitment plan we implemented to meet market growth is now bearing fruit”
12 LISI - 2024 Integrated Report LISI AUTOMOTIVE • 2 • 3 • 4 • 1 Cable channel Guide rods and electric parking brakes Sealing screws Standard automotive clip 1 • 2 • 3 • 4 • Profile
13 LISI - 2024 Integrated Report automate our sites. Launched 12 months ago, this program enabled the robotization of the parts packaging line at the Delle-2 logistics site (Territoire de Belfort). Operational since late December, it enhances productivity and improves working conditions for our teams. How far along are you with your decarbonization efforts? We are continuing to execute the plan established for the Group. LISI AUTOMOTIVE is inherently committed to this direction, as the entire automotive industry is converging toward zeroemission vehicles, whether battery-electric or fuel-cell-powered. Our teams are actively contributing to this transformation by developing products that help achieve these goals. For instance, our new multi-material assembly process, LISI-μ MACH ASSEMBLY PROCESS®, which made significant progress in 2024, enables localized metallization of components like busbars used to connect battery cells. Our sealing screws are now being mass-produced for battery assembly and cover fastening, and our new electric wiring fastening systems will enter mass production next year. In 2024, we also introduced highly innovative solutions combining our expertise for truck electrification. The first heavyduty trucks were put into service at the very beginning of 2025. All these innovations are actively contributing to the decarbonization of the transportation sector. We are continuing our efforts to optimize processes to conserve resources, utilizing renewable energy that we either produce ourselves or purchase from suppliers. We are actively working on water conservation, particularly in areas experiencing water stress, such as Mexico and certain regions of France. These efforts must go hand in hand with maintaining an extremely competitive offering. What were the big wins in 2024? 2024 was a chaotic year for business: electric vehicle sales stalled in Europe and slowed down in China and North America. Our revenue, which was expected to grow, showed a slight contraction of -5%, while our overall market declined by approximately -7.5%. This slowdown impacted several programs that were supposed to launch in the first half of 2024 in Europe and North America, pushing some to the second half of the year and others to 2025. The long-term trend remains unchanged: vehicle electrification is inevitable, but the path to achieving it could take longer and will be extremely demanding in terms of competitiveness. The rise of Chinese manufacturers, whose vehicles are now mature and aggressively priced, is disrupting industrial ecosystems in Europe and North America, forcing them to adapt. How does the division adjust to this environment? To support this shift, we will need to lower our breakeven point by optimizing the product mix, improving industrial efficiency through continued automation, digitization, and real-time performance management in our factories, and reducing and controlling fixed costs. The sale of Nomel, a LISI AUTOMOTIVE subsidiary specializing in coldforged nut and washer manufacturing, in February 2025 is part of this plan and contributes to refocusing the product mix toward highvalue-added products. Similarly, the Kairos project perfectly illustrates our efforts to Interview François Liotard CEO LEARN MORE The shift toward vehicle electrification is inevitable, but the path to achieving it will be highly competitive”
14 LISI - 2024 Integrated Report LISI MEDICAL • 1 • 2 Stapler Hip prosthesis 1 • 2 • Profile
15 LISI - 2024 Integrated Report Additionally, significant efforts have been made over the past two years to raise awareness among our teams on these issues — first focusing on technical aspects and then on human factors. In 2024, all of our employees received comprehensive HSE (Health, Safety, and Environment) training. What progress are you making on environmental issues? We have met the commitments we set for ourselves, achieving a 2% reduction in energy consumption in 2024 compared to the previous year. The actions implemented, primarily at our French sites in Neyron and Hérouville, in Calvados, are beginning to show results. Additionally, we have launched a plan to install solar panels at both Neyron and Hérouville. Our goal is to internally produce approximately 3% of our electricity consumption by 2030. Do you also have ambitious goals for increasing female representation? We have indeed focused heavily on employing more women, which is a key priority for us. Our goal is to eventually reach 30% women in management positions across the division. To achieve this, we are raising awareness among young people about technical careers that currently have low female representation. We are also exploring ways to improve the work environment, address motivations, and create development opportunities to attract female candidates to highly technical projects. The transformation of our sites into highly technological production organizations, with Industry 4.0-style processes, supports these efforts and is helping to reignite young people’s interest in the industrial sector. How did the markets perform in 2024? LISI MEDICAL remains firmly positioned in its two major markets: on one side, orthopedics, which focuses on the manufacturing of implants and joint prostheses, and on the other, the market for minimally invasive surgical (MIS) instruments. For both businesses, 2024 was a year of stability following two years of strong growth. However, the balance between these two markets has shifted. The MIS segment experienced a slight slowdown as clients, implementing their post-COVID strategies, opted to rebuild inventories for most programs where we were involved. Conversely, orthopedics saw significant growth, driven particularly by the development of our primary client, who achieved the highest market growth this year thanks to innovations in surgical processes that provide a real advantage. This positive momentum has been especially beneficial for us and offsets the slowdown in MIS activity. You’ve achieved excellent results in workplace safety. How do you explain this? Two of our sites achieved excellent results in 2024, with more than 2,000 days without accidents at Neyron, in Ain, France, and nearly 800 days at Coon Rapids, Minnesota, in the United States. We launched a comprehensive safety plan, which included compliance analyses and corrective measures for all machine tools across the division to enhance employee safety. Interview Lionel Rivet CEO LEARN MORE The transformation of our sites into highly technological organizations, resembling Industry 4.0 factories, is reigniting young people’s interest in the industrial sector”
16 LISI - 2024 Integrated Report Together Connecting, and building relationships LISI Talks 2024, the flagship event within the LISI Group, took place on March 26 and 27. This must-attend event — previously known as LISI System — was a key moment for exchange, sharing, and reflection among teams from around the world. Attendees participated in conferences covering several major themes. The event also served as an opportunity to present the company’s strategic initiatives aimed at achieving its set goals. Over the course of these two days, it fostered connections among employees and provided a platform to share best practices within the Group, particularly in areas such as CSR (Corporate Social Responsibility), attractiveness, and industrial performance. Several notable speakers, including British neuroscience expert David Bovis, organizational strategy specialist Nicolas Rietsch, and cognitive scientist Clément Leroy — who also holds a record in bicycle balancing — shared their insights on the future of industry and major trends shaping the corporate world. LISI Talks 2024 is one of the highlights of the year, providing an opportunity to share the Group’s vision and key initiatives.” Emmanuel Viellard, CEO, LISI LEARN MORE Profile
17 LISI - 2024 Integrated Report LISI, Best Managed Companies 2024 The LISI Group has been awarded the Best Managed Companies label for the third consecutive year. Created by Deloitte over 30 years ago, this label recognizes companies for the quality of their management and performance based on several criteria: long-term strategy, talent management, innovation capacity, CSR policy, governance, and financial management. This year, only 19 French companies received this prestigious label. It highlights LISI’s CSR approach, structured around the 3Ps — People, Planet, and Profit — and reinforces the commitment of its teams to excellence and performance. The Group’s sites are gearing up for growth Three industrial site expansions were completed in 2024 to prepare the Group for growth phases across its three major markets. At LISI AEROSPACE, the Saint-Ouen-l’Aumône site (Val-d’Oise, France) finalized its third major expansion, adding approximately 43,000 sq ft (including 26,900 sq ft of production space and 16,100 sq ft of office space) dedicated to the manufacturing of hydraulic fittings. This third site expansion is accompanied by the hiring of 40 employees and aims to produce 14 to 20 million parts per month by 2030. For LISI AUTOMOTIVE, significant transformations were undertaken at the Termax facility in Lake Zurich, Illinois (USA). This site, specializing in metal, plastic, and metal-plastic clip solutions, underwent a complete factory redesign to align with the Group’s highest industrial standards (see also p. 42). Lastly, at LISI MEDICAL, the expansion at Big Lake, Minnesota (USA), was completed. The 140,000 sq ft addition includes a highly technical facility driven by Industry 4.0 principles as a key strategy for talent retention and attraction. This development will enable the Group to support growth in the minimally invasive surgery instrument market (see also p. 43). Highlights 2024
18 LISI - 2024 Integrated Report LISI is a cutting-edge industrial Group whose mission is to design and deliver high value-added assembly solutions and components for the aerospace, automotive, and medical sectors. To achieve this, we rely on a decentralized organizational model that prioritizes the preservation of expertise, growth through internal development, and a balanced network of locations. These values guide our strategy. 20 2024 Strategy 22 LISI’s CSR strategy rewarded in 2024 24 Business Model 26 3P: People, Planet, Profit 36 Innovation: envisioning tomorrow 40 Excellence: giving purpose to achievement Sparking the momentum and setting the targets Outlook
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#1 Longevity Capturing rapidly growing markets with agility and long-term commitment, while closely meeting our customers’ demands. This approach is built on the five core values shared across the Group: looking beyond, communicating transparently, cultivating innovation, developing our know-how, and aiming always higher. #2 Excellence Strengthening our position as a leader by standing out through our performance with high value-added products. This pursuit of operational excellence is built on the LISI system, which forms the foundation of the Group’s performance programs: E-HSE (health and safety), LEAP (productivity), and COS (management processes). Expressed in our purpose, LISI’s mission is to design and deliver high value-added assembly solutions and components for the aerospace, automotive, and medical sectors. The Group’s long history gives us a unique responsibility: to pass on to future generations a company that is not only high-performing and innovative in addressing future challenges but also exemplary in its contribution to a more inclusive and sustainable society. In this spirit, we prioritize a long-term vision to shape excellence through an innovative, competitive, sustainable, and global industry. 20 LISI - 2024 Integrated Report 2024 Strategy Our fourpronged strategy Outlook
#4 Sustainability Leading the way in sustainable development through our 3P approach—People, Planet, Profit—and our LISI system. This approach serves as a true roadmap with short- and medium-term objectives to shape our CSR strategy. #3 Innovation Supporting our customers through our expertise and disruptive innovations in products and processes. Innovation is at the core of the LISI model. The Group’s efforts focus on product innovation, the development of new processes, and digitalization (Industry 4.0 and Artificial Intelligence). 21 LISI - 2024 Integrated Report We prioritize a long-term vision while positioning ourselves agilely in expanding markets. We focus our efforts on high value-added products, setting ourselves apart through our operational excellence and innovations.” Emmanuel Viellard, CEO, LISI LEARN MORE
22 LISI - 2024 Integrated Report In 2024, the LISI Group received a series of prestigious labels and awards recognizing the work of all its employees in achieving excellence and innovation, the two pillars on which the Group has built its development. These distinctions not only validate the Group’s efforts but also support its initiatives to reach ambitious goals in decarbonization and CSR strategy. LISI’s CSR strategy rewarded in 2024 Outlook
23 LISI - 2024 Integrated Report Carbon Disclosure Project – A-rating LISI earned an A-rating in the Carbon Disclosure Project (CDP) ranking. This ranking evaluates companies’ transparency and performance in managing environmental impacts, particularly in areas such as climate, water, and deforestation. An A-rating places the company in the Leadership category, signifying strong performance in both transparency and environmental actions. EcoVadis Award Silver The EcoVadis Award is a prestigious recognition given to companies that achieve top performance in Corporate Social Responsibility (CSR). Based on an evaluation covering environment, ethics, social practices, and responsible procurement, this award highlights organizations that are highly committed and exemplary in their sustainable practices. The Silver Medal earned by LISI means that the company is among the top 25% of businesses rated for CSR performance. Choiseul Conquérants 2024 ranking The LISI Group was selected for the second consecutive year to be part of the prestigious Choiseul Conquérants 2024 ranking. Listed among the “Spearheads of Strategic Autonomy” — a reflection of the Group’s commitment to Industry 4.0 — LISI reaffirms its central role in the reindustrialization of France. LEARN MORE Future Of Finance Award 2024 – Ambition and CSR Categories The Future of Finance Award is a prestigious recognition that honors companies and professionals for their innovative initiatives in transforming financial functions. Winners are selected based on their ability to rethink and optimize financial processes, contributing to the evolution and competitiveness of the sector. LISI won two awards in the Ambition and CSR categories. LEARN MORE Best Managed Companies 2024 The LISI Group was awarded the Best Managed Companies label for the third consecutive year in 2024. This prestigious recognition, granted to only 19 French companies this year, highlights the Group’s CSR approach, structured around the 3Ps— People, Planet, Profit—and reinforces the commitment of its teams to excellence and performance. (See also p. 17) LEARN MORE LEARN MORE
24 LISI - 2024 Integrated Report Our Teams 10,262 committed and involved team members across 13 countries. A corporate university, LKI. Our Know-How Nearly 200 experts within LISI’s internal network. Around 40 members across all sites working on digitalization and AI. 36 patents filed in 2024(1). Our Industry 42 production sites across 13 countries. Including 3 sites awarded the Vitrine Industrie du Futur label. A ratio of 407 robots per 10,000 employees. Over 10 partnerships with startups. Our Responsibility ISO 14001 & ISO 45001: a certification policy for all our sites. LISI E-HSE internal excellence program and 14.3% of investments dedicated to HSE. Signatory of the Global Compact and the French Business & Climate Pledge. Our Strong Financial Position €1,006 M in equity capital. Net financial debt down (€488.5 M, -€12.6 M compared to 2023). (1) Filing of an invention through an e-Soleau envelope or initial patent application. OUR RESOURCES OUR PURPOSE In line with its CSR policy, the LISI Group is accelerating its strategy around the 3Ps — PEOPLE, PLANET, PROFIT — by leveraging the fundamentals of the LISI system, its standards, and tools, as well as its two core pillars that form the Group’s DNA: operational excellence and innovation. Shape and Share Sustainable Links Our business model Purpose Shape and Share Sustainable Links LISI system Our foundation of performance and operational excellence in 3 programs: LEAP | E-HSE | COS 3P Approach A CSR strategy implemented at all levels of the company to align with our purpose; our approach is structured around the 3Ps: PEOPLE, PLANET, PROFIT Outlook
25 LISI - 2024 Integrated Report Our Teams Favorable and attractive social model: employee participation, profit-sharing, employee ownership, and employee savings plans. €678 M in payroll expenses, representing 37.8% of sales revenue. 28.4% of executives are females. TF1(2) = 5.7. Our Customers €17.6 M invested to expand the capacity of our factories, representing 17% of total investments. €27.9 M in R&D expenditures. Our Suppliers & Partners €549 M in purchases (raw materials, goods, tools, and other supplies). 67% of suppliers identified as sensitive in terms of CSR were assessed in 2024. Our Environment -39% of our greenhouse gas emissions compared to the 2019 baseline year for Scopes 1 & 2, along with €4.3 M in investments dedicated to carbon footprint reduction projects. 1.8% energy savings in MWh from projects compared to the previous year’s consumption (on a like-for-like basis). 0.7% of renewable energy produced on-site. The State and Communities 65% of sites in water-stressed areas that have implemented their action plan. Our Shareholders and Financial Partners Free Cash Flow: 3.2% of sales revenue. €0.39 dividend per share(3). (2) Number of workplace accidents with and without lost time per million hours worked. (3) Dividend proposed at the General Meeting on 04/25/2025. OUR ADDED VALUE People 1Protect our employees 2Retain our talent Planet 3Protect our environment 4Work with our territories Profit 5Go beyond our customers’ expectations 6Involve our suppliers 7Secure our financial resources OUR 3PS WITH OUR 7 AXES
Key Figures 100% OF OUR CSR RATINGS HAVE IMPROVED 28.4% OF FEMALE EXECUTIVES -39% CARBON EMISSIONS SINCE 2019 31 SUCCESSFUL ENERGY EFFICIENCY PROJECTS 5 SITES IN 5 COUNTRIES EQUIPPED WITH SOLAR PANELS IN LESS THAN 18 MONTHS 26 LISI - 2024 Integrated Report strengthening ties with local communities and preserving the environment for future generations. How did you progress on these topics in 2024? We maintained our efforts on the major topics of our 3 Ps. On the Planet side, our trajectories have been established, and our strategic compass is on track. On the People side, we launched impactful initiatives with the associations Elles Bougent and Les Meufs de l’Industrie to change perceptions of our companies and attract women to our professions. Additionally, we focused on two strategic themes: job transformation and the integration of Artificial Intelligence within the Group. The transformation of jobs is accelerating due to industry digitalization and the growing use of Artificial Intelligence (AI). LISI has chosen to address this phenomenon by working on developing workforce planning to anticipate the Group’s needs and prepare for them: identifying the skills we will need and ensuring their availability (see p. 29). How do you approach AI-related topics? Significant progress was made in 2024. In terms of governance, we established a task force to address key issues, propose methodologies, prioritize use cases, and provide solutions (see p. 30). Additionally, LISI adopted an AI charter in 2024 aimed at promoting and guiding the responsible use of AI — a step that very few companies have taken so far (see p. 47). Finally, the task force identified 28 use cases, some of which will be implemented in 2025. We also developed a generative AI training plan that will be rolled out throughout 2025. How have you moved forward on environmental and CSR issues? The key highlight of 2024 was updating three carbon trajectory scenarios along with the associated actions required. These actions were clearly defined and quantified, including their impact on Opex(1) and Capex(2). This work significantly improved our maturity and precision in setting reduction targets and understanding their costs (see p. 32). Could you remind us of the fundamentals of LISI’s CSR strategy? Our sustainable development strategy embodies our purpose: Shape and Share Sustainable Links. Structured around the 3Ps — People, Planet, Profit — it results from consultation with all our stakeholders. As heirs to a long family and industrial history, we are driven by the ambition to pass on to future generations a company that is not only highperforming and innovative but also exemplary in its contribution to a more sustainable and inclusive society. At LISI, performance only makes sense when it serves a positive and lasting impact. Do non-financial reporting regulations strengthen these challenges? In a context of profound market transformation and growing demands for sustainable development, this strategy proves to be highly relevant. The new CSRD regulation further strengthens our requirements for non-financial reporting. Our ambition remains unwavering: to create lasting value for our entire ecosystem by Interview Anne-Delphine Beaulieu Chief Sustainability Officer & Digital Transformation, LISI 3P/People, Planet, Profit Standing by our convictions Outlook
27 LISI - 2024 Integrated Report This is behind-the-scenes work, but it’s absolutely essential. We successfully aligned our stakeholders on these trajectories. On the Profit side, evaluating the CSR performance of our sensitive suppliers required significant effort but allowed us to meet our objectives. Our consistent improvement in CSR ratings over the past four years reflects this momentum. We’re especially proud of achieving an A-rating from CDP Climate and being named the Grand Winner at the Future of Finance awards for our ‘People, Planet, Profit’ project. Additionally, we were recognized as one of Deloitte’s Best Managed Companies for the third consecutive time (see p. 23). These achievements motivate us to continue and amplify our efforts, help us stay competitive and strengthen our ability to stand out. (1) O pex: operating expenses for the day-to-day operation of the company. (2) Capex: expenses committed for long-term investments. Giving meaning to performance involves achieving strong and sustainable results that enable us to act with impact over the long term. We are proud that our consistent efforts are now reflected in our ratings, the awards we win, and the success of our initiatives.”
28 LISI - 2024 Integrated Report 3P/People The “P” for People, the first P in our sustainable development strategy, focuses on two priorities: protecting our employees and retaining our talents. At LISI, we are deeply committed to workplace safety and employee well-being. We firmly believe that happy and fulfilled employees are the best source of sustainable innovation. This year marks a significant acceleration in our transformation with: ⚫ A skills development program aimed at driving our talent toward excellence. ⚫ An approach to anticipating the jobs of tomorrow, shaped by the challenges of artificial intelligence. ⚫ A strong policy promoting diversity and inclusion, which are true drivers of collective performance. ⚫ The implementation of a dashboard to track and improve our ability to attract and retain top talent. This comprehensive approach to managing our talent represents a major strategic asset and the foundation for our future growth in a constantly evolving world. Outlook
29 LISI - 2024 Integrated Report The company must integrate AI at the core of its strategic vision, viewing it as a driver of transformation rather than just a tool. LISI is co-developing, in collaboration with Mercateam, a workforce planning system to create short- and medium-term scenarios for securing critical skills within the organization.” AI is radically transforming our professional landscape, rendering certain skills obsolete while others emerge at lightning speed. This revolution presents us with major challenges: continuous training, organizational adaptability, a learning culture, integration of emerging talents, and retaining our key workforce. “Strategic investment in organizational agility is no longer optional — it’s an absolute necessity to turn these challenges into growth opportunities,” says Anne-Delphine Beaulieu, Chief Sustainability Officer & Digital Transformation, LISI. “We are facing a crucial generational paradox: while we focus our efforts on upskilling our current employees, new hires — digital natives — clash with our traditional paradigms. When we talk spreadsheets and presentations, they respond with generative AI and intuitive programming.” Staying Agile with AI A top strategic priority Workforce planning: anticipating the future to unlock our talent potential Facing rapid market changes, LISI is implementing an innovative approach in partnership with the start-up Mercateam to create a tailored solution. This technology enables us to proactively manage skills with a 360-degree perspective. ⚫ Skills Forecasting: an analysis of short-, medium-, and long-term needs based on real data (retirements, turnover, versatility). ⚫ Decision Intelligence: a mapping of critical areas that enables leaders to anticipate and guide their investments in human resources. ⚫ Internal Mobility: identifying pathways between roles to enhance career progression and maximize the potential of our employees. ⚫ Customized Training: designing personalized development programs to bridge gaps in key skills. This pilot project, launched in 2024 at one of our sites, embodies our vision of an agile company — ready to anticipate transformations while valuing and retaining our talent, our most valuable asset.
30 LISI - 2024 Integrated Report A dedicated AI task force To address all challenges related to Artificial Intelligence in a coordinated manner, the LISI Group has established a dedicated task force. Comprising eight members from various professions and divisions, this AI Task Force (AITF) meets monthly to tackle diverse questions: What can be achieved with AI? What are the Group’s priority use cases? What are the risks? Once these questions are resolved, the AITF ensures efficient management without wasting energy or resources. Additionally, meetings and learning expeditions have been organized to refine the knowledge and vision of the Group’s members (see p. 47). 3P/People LEARN MORE # Objectives & Trajectory 2023 2024 TF1 SDG* 3: Good health and well-being GRI*: 403-2 6.7 5.7 AXIS 1: PROTECT OUR EMPLOYEES % of women cadres SDG* 5: Gender equality GRI*: 405-1 28.1 28.4 AXIS 2: RETAIN OUR TALENT % of resignations SDG* 5: Gender equality GRI*: 401-1 8.1 6.8 AXIS 2: RETAIN OUR TALENT * SDG: Sustainable Development Goal / GRI: Global Reporting Initiative. The integration of Artificial Intelligence is reshaping all professions, from administrative to industrial roles. LISI has adopted a structured and responsible approach by establishing governance with an AI charter that both regulates and fosters innovation (see box). “This allows each of our employees to explore while managing risks and setting boundaries,” emphasizes Anne-Delphine Beaulieu, Chief Sustainability Officer & Digital Transformation, LISI. AI is not optional; it is a strategic catalyst that we are deploying methodically to enhance our operational excellence. Predictive Maintenance and Quality Control Other areas identified as potentially optimizable through AI are currently under consideration, such as predictive maintenance, solving similar issues, and quality control. Advanced instrumentation of production lines, equipped with IoT sensors that continuously collect data, unlocks optimization opportunities and helps reduce costs in preventive maintenance — by preventing failures in quality control and minimizing impacts. We are also working on the contextual analysis of 420,000 resolved problem tickets within the Fabriq solution (a factory management platform) to identify similarities and accelerate problem resolution. Integrating AI into the company A key challenge for Outlook
31 LISI - 2024 Integrated Report 3P/Planet In 2024, LISI defined its climate strategy through rigorous scenario modeling, setting a goal that is both ambitious and realistic. The trajectory for reducing greenhouse gas emissions by 2030 is underway. Projects for self-production of renewable energy and continuous optimization of industrial processes have been expanded. Efforts to reduce water consumption have also intensified. (see p. 23).
# 2030 Goal: Reduce GHG emissions by 57% for Scopes 1 and 2 only, in line with SBTi standards La simulation de ces trajectoires a démontré que : ■ aucun des scénarios ne permettrait de respecter les attentes du SBTi (Science Based Target Intitiative) sur les 3 scopes, ■ le scénario d’équilibre LISI permet toutefois d’atteindre les attentes du SBTi sur les Scopes 1 et 2 ■ seul le scénario HIGH permettrait l’atteinte des objectifs LISI, à savoir -30 % d’émissions de gaz à effet de serre par rapport à 2019 sur les Scopes 1,2 et 3 partiel. Ce sont les raisons pour lesquelles le Conseil d’Administration de LISI a recommandé de manière pragmatique : ■ de viser un scénario d’équilibre LISI sur les Scopes 1 et 2 ■ de ne pas rechercher la certification SBTi, ■ de conserver comme boussole stratégique la trajectoire la plus approchante des accords de Paris (SBTi) ■ de conserver une flexibilité sur nos ressources financières pour ne pas pénaliser les capacités du groupe à saisir d’autres opportunités stratégiques. REPRÉSENTATIONS GRAPHIQUES DES TRAJECTOIRES Trajectoire 2030 sur Scopes 1+2 seul ■ Le scénario d’équilibre LISI permet d’atteindre les attentes du SBTi sur les Scopes 1 et 2, avec une baisse des émissions de l’ordre de -57 %, qui se répartit de la manière suivante : – 54 % liés à l’efficience énergétique et aux optimisations de process, – 46 % aux projets sur les énergies renouvelables Renewable energies Process and energy optimization Remaining Actions SBTI' Goals on scopes 1+2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20000 30000 40000 50000 60000 70000 80000 90000 100000 Rapport de durabilité GHG emissions LISI in tCO2 / Scopes 1 + 2 only VALIDATED LISI Scenario Objectif “SBTi” 'SBTI' Goals: -57% by 2030 Status quo ‑22 ktCO2 renewable energies ‑26 ktCO2 process and energy optimization SBTI Goal 32 LISI - 2024 Integrated Report SBTI Methodology To ensure the robustness of its calculations, the Group has chosen to adopt the methodology of the Science Best Target Initiative (SBTI). This initiative, which aims to support companies in their efforts to reduce greenhouse gas emissions, provides a benchmark aligned with the goal of limiting global warming to 1.5°C, as established by COP27. 3P/Planet Carbon Trajectory A balanced vision for 2030 In 2024, LISI redefined its 2030-2040 carbon trajectory through a strategic analysis of three impact scenarios (low, medium, high). The Board of Directors approved a balanced and ambitious roadmap, which is now fully operational. This rigorous approach enabled the precise quantification of the necessary investments in Opex(1) and Capex(2) to implement the 52 strategic action families identified across the Group. “This modeling marks a decisive turning point: our environmental ambitions are now transformed into precise, measurable, and actionable objectives,” emphasized Yannick Danillon, CSR Manager, LISI. A more accurate carbon footprint This approach has transformed our carbon management, now providing a highly precise mapping of the Group’s emissions. Our measurement system accurately captures real CO2-equivalent flows, both in consumption and production. This strategic visibility fully encompasses Scope 1 — direct GHG emissions generated by the company — Scope 2 — indirect emissions from the production processes of goods (such as energy) — and a significant portion of Scope 3 (purchases of goods, services, etc.). For the particularly complex Scope 3, our teams have developed a robust methodology that accounts for the geographic and industrial specifics of our supplier ecosystem. (1) Opex: operating expenses for the day-to-day operation of the company. (2) Capex: expenses committed for long-term investments. Outlook
# Objectives & Trajectory 2023 2024 Reduction of greenhouse gas emissions: Scopes 1 + 2 SDG* 13: Climate action GRI*: 305-1, 305-2 -37% vs 2019 -36% vs 2019 AXIS 3: PROTECT OUR ENVIRONMENT % of renewable energies produced on our sites SDG* 13: Climate action GRI*: 301-2, 306-2 0.4% 0.7% AXIS 3: PROTECT OUR ENVIRONMENT % of energy savings in MWh due to the projects SDG* 13: Climate action GRI*: 301-1 1.7% 1.8% AXIS 3: PROTECT OUR ENVIRONMENT % of sites in water stress area sites that have implemented their action plan SDG* 11: Sustainable cities and communities GRI*: 303-1, 302-4 100%** 65% AXIS 4: PROTECT OUR ENVIRONMENT * SDG: Sustainable Development Goal / GRI: Global Reporting Initiative. ** 100% of sites in water stress zones defined an action plan in 2023, and 65% implemented their action plan in 2024. 33 LISI - 2024 Integrated Report Water Consumption Anticipating challenges and securing our operations In 2024, the LISI Group undertook an in-depth analysis of water usage, identifying sites located in areas of water stress and those with annual water consumption exceeding 10,000 m3. This forward-looking study, projected through 2050, served as a powerful mobilization tool for site directors to address water resilience challenges. In response to critical zones, the Group immediately implemented a three-pronged action plan: structural reduction of water consumption, maximization of alternative resources (such as rainwater harvesting and closed-loop systems), and operational self-sufficiency. By the end of 2024, 65% of our sites in sensitive areas had robust action plans in place, with some capable of temporarily halting natural water withdrawals during critical periods to ensure continuity of operations. LEARN MORE
34 LISI - 2024 Integrated Report 3P/Profit What did you focus on in 2024? LISI AUTOMOTIVE manufactures parts in Europe that are then transported to our two sites in China. Until now, these shipments were primarily handled via air and sea transport. Our goal has been to shift to rail transportation. We worked with one of our partners to consolidate the flows from LISI AUTOMOTIVE’s French and German sites and centralize them at a single departure point for Asia. How did you proceed? We first merge together in Lyon the flows from the French factories in Puiseux, Delle and Melisey. These goods are then transported by train to Duisburg, where all parts from the German sites in Mellrichstadt and Heidelberg are consolidated. The entire shipment is then grouped into a container and sent by train from Interview Laura Prodöhl Group Lead buyer Transportation, Customs & Packaging, LISI AUTOMOTIVE 2024 Highlights Our economic performance remains inseparable from our social responsibility. Our impact financing, linked to CSR criteria, perfectly illustrates this integrated approach. We continue to invest in sustainable innovation and the ecodesign of our products to support our clients in their own transitions, particularly in the automotive and aerospace sectors. In 2024, efforts focused especially on procurement, aiming to engage our entire value chain in a responsible approach. Outlook
35 LISI - 2024 Integrated Report Duisburg, Germany, to our LISI AUTOMOTIVE factories in Shanghai and Suzhou. This journey across Europe and Asia takes between 33 and 35 days. The process involved close collaboration between the logistics teams at the factories, the customer service department, and central procurement as part of a comprehensive project approach. This choice allowed us to both optimize costs and ensure more reliable delivery times compared to maritime transport, whose prices and lead times fluctuate significantly due to geopolitical factors (e.g., piracy in the Red Sea) and market conditions (e.g., Chinese New Year, Christmas, or shipping companies’ ‘blank sailing’ policies). We achieved our goal: we have stopped air deliveries, except for those necessary to address urgent needs. This decision has had a direct impact on reducing costs as well as on the Group’s carbon footprint. What are the projects for 2025? Road transport, relative to the volumes transported, remains our primary mode of delivery. We aim to electrify the trucks that connect our factories with those of our subcontractors. The project focuses on highly regular routes managed by a partner using a shuttle system modeled on the “milkrun”. At peak times during the week, about ten trucks connect Normandy, the Paris region, northern France, and eastern France. The carrier has already acquired several electric trucks. As part of this joint project, we plan to install charging stations at our Delle site, which currently serves as the logistical hub for this network. Over the coming months, we will test and analyze the economic reliability of this model. Green energy purchases: moving toward more PPAs For renewable energy purchases, the LISI Group is refining its strategy by increasing the use of Power Purchase Agreements (PPAs). These agreements allow the Group to enter into specific contracts requiring energy suppliers to provide a defined share of renewable energy, such as wind, solar, or hydroelectric power. This commitment enables the Group to include this share in its carbon footprint calculations. This strategy is being pursued alongside self-production projects implemented at the Group’s sites. The rail option between Europe and China proved to be a winning choice for LISI AUTOMOTIVE”. # Objectives & Trajectory 2023 2024 New products (% of sales revenue): LISI AEROSPACE LISI AUTOMOTIVE LISI MEDICAL 7.3% 12% 4.7% 7.6% 12.4% 2.0% SDG* 9: Industry, innovation, and infrastructure GRI*: 201-1 AXIS 5: GO BEYOND OUR CUSTOMERS’ EXPECTATIONS % of sensitive suppliers assessed as per CSR criteria 57% 67% SDG* 9: Industry, innovation, and infrastructure GRI*: 414-1, 308-1 AXIS 6: INVOLVE OUR SUPPLIERS In 2024: Sales revenue: €1,794 M Free Cash Flow: €57.7 M / 3.2% of sales revenue SDG* 8: Decent work and economic growth GRI*: 202-1 AXIS 7: SECURE OUR FINANCIAL RESOURCES * SDG: Sustainable Development Goal / GRI: Global Reporting Initiative. LEARN MORE
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