Lisi Business Report FY2007

Business Highlights

Financial overview
(in million euros) FY2007 FY2006 Rate of change(%) Factors
Consolidated figures
Sales 816.0 739.7 10.3 -
EBIT 100.1 88.6 12.9 -
Automotive Division
Sales 407.1 382.5 6.4 See below
EBIT 27.4 25.8 6.2 -

-The Company has shown solid growth (+ 6.4%), with a promising final quarter (+ 8%). This growth, generally higher than that recorded in Europe, is a result of the globalization of the final destination of components: the Company provides its manufacturing customers not only with volumes destined for assembly plants in France and Germany, but also to other plants for the same customers in countries with strong growth such as the Chinese automotive market (+ 24%).

-Alongside this globalization of French- and German-manufactured Group products, its presence in emerging countries such as the Czech Republic (+ 23%) and China (+ 64%) has brought an appreciable rise in growth, linked to local production.

Samples developed for new vehicles in 2007
-At the start of 2007, the Company began production of an electric handbrake system for a large multinational parts manufacturer. This new system, which will be mounted on all the major European manufacturers' recent platforms (Ford Mondeo, Ford Galaxy and the new Renault Megane to name but a few), is shortly to become an industry standard.

-Bosch, to whom the Company has been delivering a handbrake adjustment system since February 2006, has requested that a smaller version be designed for the new Volkswagen Golf platform.

-The new Citroen C5, launched in March 2008, is fitted with a number of its fasteners. For 2 years now the Company have been responsible for research and development into all fasteners on this new vehicle.

-The Company has developed a curtain-shield airbag clip for BMW. It consists of a stainless steel clip, manufactured in Heidelberg (Germany), with a nut mounted on it; it is subject to a joint patent application by the Company and BMW. In 2007, 1.7m units were delivered to Autoliv in the US, who attach seven clips per airbag and then supply these to BMW USA for its X5 model. This product is now due to be rolled out to new BMW models.

-In 2007, the Company sold its Monistrol plant in the Haute-Loire(France).


Product Development
-The effective replacement of existing anti-corrosion coatings with Chromium VI (Cr6)-free coatings represents the culmination of 6 years' research and a large-scale industrial project. This change involves hundreds of different types of clips, screws and nuts with an annual volume of 30,000 tons. This replacement project was delivered on schedule, with a reduced impact on costs, thereby meeting its customer's needs.

Investment Activities

(in million euro) FY2007 FY2006 FY2005
Capex 20.4 25.1 47.3

-In 2007, the Company focused largely on the roll-out of the POLARIS project (Movex ERP set up in France), new stamping equipment for Business Group France and Germany as well as steps to implement complete EPB (electric parking brake) manufacturing lines for Business Group Tier1 at the Melisey factory.