LISI Group (LISI AUTOMOTIVE) Business Report FY ended Dec. 2014

Financial Overview

(in million euros)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Factors
Group
Sales	1,306.5	1,149.0	13.7	-
EBITDA	193.2	178.9	8.0	-
Automotive Division
Sales	448.3	422.2	6.2	1)

Factors
1) Automotive Division
-In a globally buoyant market, in Europe as well as in China, Automotive Division's sales increased by 6.2% to a record EUR 448.3 million in 2014. Purely automotive operations surged by 7%, driven by the German car makers and the leading OEMs. They were also helped by the upturn in activity of the two French constructors, PSA and Renault.

-Development is accelerating for LISI AUTOMOTIVE's Mechanical Safety Components, a segment specializing in the design and co-production of strategic parts for components of steering and suspension systems, brakes and seat and seat belt fasteners. 2014 was marked by strong growth and a vigorous surge in new orders: EUR 10 million of commercial contracts were secured.

Acquisition

-In January 2014, LISI AUTOMOTIVE SAS acquired the minority interests of LISI Jiehua Automotive Co. Ltd. for HKD 13.3 million, i.e. EUR 1.2 million. Following this acquisition, the group's interest in LISI Jiehua Automotive rose from 75% to 100%. LISI Jiehua Automotive, based in Shanghai, specializes in the manufacture of screw fasteners for automobiles, particularly for Volkswagen and several equipment manufacturers.

Reorganization

-The bulk of the restructuring operations was conducted according to the "Nuts" plan (closure of the Thiant (Nord) plant, repatriation of its activities to two sites, namely Dasle (Doubs) and la Ferté Fresnel (Eure-et -Loire).

Outlook

-With regard to fasteners, growth drivers will be apparent in the second half of 2015 for the Clipped Solutions, with the introduction of the applications for the new Renault 15/40 platform (Espace/Laguna/Mégane).

R&D Expenditure

(in million euros)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Group	21.5	18.9	22.7
% of sales revenue	1.6%	1.7%	2.1%

Development Areas

-Four development areas were identified in the context of the R&D program employed by LISI AUTOMOTIVE in support of projects initiated by car makers and OEMs to visualize the vehicles of tomorrow.

The standalone vehicle : These projects are focused on the management of fastener systems for the onboard electronic equipment necessary for the operation of these vehicles of the future, such as sensors, radar or cameras.
Driver safety : with the development of braking applications and next generation airbags, such as pedestrian airbags.
Vehicle weight reduction : with the introduction of new composite materials. Associated projects concern the continuing development of parts in plastic or aluminum, designed for premium vehicles.
The productivity : Development of solutions facilitating the assembly of fasteners, participation in the programs of standardization of the car makers.

New R&D Center

-A new research center at Grandvillars has been operational since summer 2014. Occupying the first floor of the new LISI AUTOMOTIVE headquarters, it accommodates several spacious laboratories, equipped to facilitate collaborative work.

Capital Expenditure

(in million euros)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Automotive	34.7	32.1	28.0

Data

Division	Dec. 2014	Dec. 2013	Dec. 2012
Aerospace	6,957	5,604	5,205
Automotive	3,186	3,143	3,213
Medical	538	474	475
Holding	20	18	16
Group total	10,701	9,239	8,909

Sales

(in million euros)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Consolidated sales	1,306.5	1,149.0	1,081.3	925.1	776.7
Automotive	448.3	422.2	426.6	446.3	401.3

Sales by Business Activities

(in million euros)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Automotive	788.1	663.9	591.7
Aerospace	448.3	422.2	426.6
Medical	71.1	64.1	64.8
Other Activities	(1.0)	(1.3)	(1.8)
Total	1,306.5	1,149.0	1,081.3