LISI Group (LISI AUTOMOTIVE) Business Report FY2009

Business Highlights

Financial Overview

(in million euros)

	FY2009	FY2008	Rate of change(%)	Factors
Group
Sales	695.0	844.2	(17.7)	-
EBIT	34.1	98.9	(65.5)	-
Automotive Division
Sales	310.4	385.8	(19.5)	1)
EBIT	(15.5)	14.0	-	-

Factors
1)
Automotive Division
-This financial year shows a new pattern, related to vehicle registration changes, with the first quarter down 17%, the second quarter down around 5%, then the third quarter recovery of 4%, rising to an 18% rise in the last quarter of 2009, thanks to government incentive schemes. All European countries followed this pattern, with the exception of two areas: Eastern Europe was down 27% and Spain down 18%.

-The Germany Business Group suffered the most from the very late recovery of BMW and Daimler, as well as from Volkswagen's drastic stock decrease. Business Group France was down 11%, and the major parts manufacturers down 19%. On the other hand, activity in China shows 60% growth to over 12m euros.

-New product developments slowed down, although the division saw a slight rise in research towards the end of the period. Annual sales revenue generated from new products represents 9.5% of 2009 sales, as compared with an average of over 12% for the last three financial years.