LISI S.A. — Interim / Quarterly Report 2020

Jul 23, 2020

HALF-YEARLY RESULTS

30th June 2020

Against the backdrop of the global crisis, the LISI Group was able to adapt quickly and strengthen its financial structure in the first half of 2020

• First-half results reflect positive commercial and operational momentum up to March 15, before markets and nearly all client activity stalled in all three divisions
• Global adaptation plan deployed to ensure business continuity, prioritize protection of employees and preservation of cash flow
  • o 28.2% drop in sales compared with the first half of 2019 (-46% in Q2)
  • o EBITDA held up well at 13.3% compared with 14.7% in the first half of 2019, due to cost and production adjustment measures implemented from the beginning of the crisis
  • o Positive current operating profit of €22.5 million, including €58.8 million of depreciation charges
  • o Record free cash flow of €90 million, reflecting immediate adjustments to working capital requirements
• Increased financial stability with a €94 million decrease in net debt compared with December 31, 2019
• Continuing focus on high value-added automotive activities with the disposal of the German company Mohr & Friedrich, and the acquisition of the remaining shares in Termax (49%)
• Plan to adapt to new market conditions: NEW DEAL to prepare for the future

Paris, July 24, 2020 - Today, LISI has released its results for the first half-year ended June 30, 2020. The statutory auditors conducted a limited review of the accounts, which were presented at the meeting of the Board of Directors held on July 23, 2020.

6 months ended June 30		H1 2020	H1 2019	Change
Key elements of the income statement
Revenue	€M	636.7	886.2	-28.2%
EBITDA	€M	84.8	130.2	-34.8%
EBIT	€M	22.5	72.8	-69.1%
Current operating margin	%	3.5	8.2	-4.7 pts
Income for the period attributable to equity holders of parent	€M	4.7	24.9	-81.1%
Diluted earnings per share	€	0.09	0.47	-80.8%
Key elements of the cash flow statement
Operating cash flow	€M	70.4	107.6	€M -37.2
Net capital expenditure	€M	36.3	67.0	€M -30.7
Free Cash Flow1	€M	90.0	48.9	€M +41.1
Key components of the financial position
		H1 2020	12/31/2019
Net debt2	€M	237.7	331.92	€M -94.2
Ratio of net debt to shareholders' equity	%	23.2%	32.6%	-9.4 pts

¹ Free Cash Flow: operating cash flow minus net capital expenditure and changes in working capital requirements.

² Of which €71.6 million of the debt increase was due to IFRS 16 in 2019 and €78.0 in 2020.

Management and impact of the COVID-19 crisis

From the outset of the crisis, the LISI Group put in place a day-to-day crisis control and management protocols to meet a number of objectives, including:

• protecting employees and quickly implementing strict safety conditions in order to reopen all sites;
• adapting production capacity (reducing full time equivalent employees by 3,655, of which 2,377 are on furlough) while continuing deliveries very high levels of customer service;
• controlling and adapting fixed costs to the very low level of business activity in the second quarter, and ensuring that any adjustments are sustainable;
• protecting cash flow and anticipating short- and medium-term needs.

Crisis management units were deployed in each of the main functional areas (Human Resources; Health, Safety and Environment; Finance; Purchasing and Sales) which have deployed all decisions taken.

Sales in € million	2020	2019	2020 / 2019	At constant scope and exchange rates
1 st quarter	397.9	445.0	-10.6%	-7.9%
nd quarter 2	238.8	441.3	-45.9%	-43.7%
6 months ended June 30	636.7	886.2	-28.2%	-25.7%

Comments on half-year business activity and results

Consolidated sales for the first half of 2020 were €636.7 million. The 28.2% drop on last year is due to the following reasons:

• The sudden closure of nearly all main customer sites from March 15, 2020 vastly restricted the flow of deliveries. However, LISI was able to continue to operate with a good level of service. While the LISI AUTOMOTIVE division was able to resume its activities in June, there has been no notable uptick in business activity for LISI AEROSPACE.

The graph below shows the evolution of business activity between January and June 2022 in the Group:

• A favorable foreign exchange effect of +6.6 million (1.0% of sales) corresponding to the strengthening of the US dollar against the euro;
• A scope effect of -€38.7 million (-6.1%) reflecting the disposal of the screw, chassis stud and ball joint activity by LISI AUTOMOTIVE Former in Saint-Florent-sur-Cher on November 29, 2019, and the deconsolidation of Indraero Siren and LISI AEROSPACE Creuzet Maroc which came into effect on June 30, 2019.

At constant scope and exchange rates, sales decreased by 25.7% compared to the first half of 2019. The impact of the COVID-19 crisis was most noticeable in the second quarter, which was down 43.7% versus the comparative period in 2019.

Thanks to the Group's long-standing practice of flexible working arrangements, payroll was immediately reduced by 20% in the first half-year, 9.8% of which was covered by government packages. Combined with drastic cost reduction measures, this enabled the Group to maintain a double-digit EBITDA margin (13.3%).

However, performance was varied amongst the divisions:

• The LISI AEROSPACE division has gradually adapted its "Fasteners" business to the slowdown in orders;
• The LISI AUTOMOTIVE division saw a particularly steep drop in sales in all activities, which could not be offset in the short term;
• The LISI MEDICAL division has been impacted by unpredictable shutdowns of its main customers, making it more difficult to implement adjustment measures.

Depreciation is stable compared to 2019 at €58.8 million. At -€3.6 million, allowances and the reversal of provisions (primarily on inventories) have had a negative impact compared to the first half of 2019.

At €22.5 million, current operating profit (EBIT) remains positive despite the marked sales decline. Operating margin is 3.5%, down 4.7 points compared to the prior year period, and includes high depreciation charges (9.2% of sales) resulting from the significant capital expenditure programs of the from previous years.

The table below shows the main impacts of the COVID-19 crisis:

COVID-19 impacts Cumulative 06/30/2020 / 06/30/2019	Group TOTAL
	€ million	% change
Sales	-233.6	-26.4%
Payroll	-65.9	-19.7%
Change in headcount	-3,655	-28.3%
Fixed costs	-41.7	-13.9%
Non-recurring expenses	-8.1

Non-recurring operating income and expenses stand at -€20.1 million, reflecting the costs associated with the disposal of Mohr & Friedrich GmbH (LISI AUTOMOTIVE), industrial reorganization charges and costs incurred by the adjustment to the lower level of activity the first half of the year (Covid-19 crisis).

Financial income stands at +€4.7 million (down €3.8 million versus H1 2019) and includes the following items:

• Foreign currency effects linked to the revaluation of debts and receivables and the change in fair value of hedging instruments (+€7.4 million compared with -€1.5 million in H1 2019);
• Financial expenses, which correspond to the cost of long-term net debt, totaled -€3.4 million (-€3.8 million in H1 2019), representing an average fixed interest rate of 1.4%. Gains on current cash investments totaled €0.7 million, compared to €1.5 million in H1 2019. Net financial expenses therefore stand at 1.1% of net financial debt.

The tax charge, based on the corporate tax as a percentage of net income before taxes, reflects an effective average tax rate of 37.5% (compared with 33.6% in H1 2019). The effective tax rate would be 24.1% if restated for a one-off component of the financial year (impairment of a non-current asset).

Net income remains positive at €4.7 million (or 0.7% of sales), compared with €24.9 million in the first half of 2019.

Thanks to the Group's adaptiveness, operating cash flow remains at a satisfactory level. Indeed, at €70.4 million, it can cover a reduced investment program (€36.3 million or 5.7% of sales) without compromising the initiatives currently underway. These initiatives include new product development, innovation and multi-year industrial programs (Forge 2022, ERP, digitalization, robotics etc.).

Disciplined management and the quick adaptation of production levels in line with demand led to a reduction in working capital requirements from 74 days of sales as at December 31, 2019 to 72 days.

Free Cash Flow therefore reached the record level of €90 million for a first semester.

Net debt was down by €94.2 million compared to December 31, 2019 to €237.7 million, and now only represents 23.2% of shareholders' equity (compared with 32.6% at December 31, 2019. Also, net debt now only accounts for 1.0 x EBITDA, compared with 1.2 x EBITDA at December 31, 2019. Net bank debt fell to the historically low level of €39 million in the first half of 2020.

Moreover, the Shareholders' General Meeting of June 22, 2020 canceled the proposed 2019 dividend, which was initially set at €0.46 per share. This decision was taken to protect the Group's cash flow, in line with other adaptation measures in the light of the COVID-19 pandemic, which will affect all LISI business activities in the months to come.

LISI AEROSPACE (57% of the consolidated sales)

• The "Fasteners" activity benefited from positive pre-pandemic momentum and a full order book.
• The "Structural Components" activity was hit by pre-existing issues linked to the LEAP 1B engine and the COVID-19 crisis.
• Business continuity was ensured for major global customers, enabling LISI to honor and fulfill fastchanging orders, including:
  • o Development of new products (compressor blades for MTUs);
  • o Ramp up of new contracts (Airbus);
  • o Increase in g market shares (F-35 program for Lockheed Martin).
• Adapting the industrial footprint to new market circumstances
• Resilient operating margin at 10.2%
• Solid Free Cash Flow of €66.2 million

Analysis of changes in sales

Sales in € million	2020	2019	2020 / 2019	At constant scope and exchange rates
1 st quarter	226.7	252.6	-10.3%	-6.8%
2 nd quarter	154.3	254.4	-39.4%	-36.2%
6 months ended June 30	381.0	507.0	-24.9%	-21.5%

Aerospace market

The aerospace market has borne the full brunt of the COVID-19 crisis, with a collapse in global air traffic. All airlines and aircraft manufacturers have drastically reduced their manufacturing schedules. From April, Airbus reduced all its production rates by approximately 30%. Boeing, which had already been hit hard by issues related to the B737 MAX, also bore the full brunt of the pandemic's negative consequences.

Comments on half-year business activity and results

At €381.0 million, the division's sales were down 24.9% compared to the same period in 2019, with a decline of 39.4% in the second quarter. The steepest fall in sales was recorded in the "Structural Components" activity (down 47.5% over the half-year and down 64.8% in the second quarter), which had already been hit hard by the consequences of a fall and then a halt in production of the Boeing B737 Max. The "Fasteners" business saw a more contained decline in half-year sales (down 8.8% on the same period in 2019, and down 20.9% in the second quarter), due to a better start to the year and fuller order book.

The strengthening of currencies (primarily the US dollar) versus the euro had a positive effect (up €5.4 million).

At constant scope and exchange rates, the division's sales are down 21.5% in the first half ear, and 36.2% in the second quarter.

Results

Thanks to the cost adjustment measures implemented from the beginning of the crisis, and the fact that the "Fasteners" business maintained its productivity levels in Europe and the United States, EBITDA held up well at €75.0 million or 19.7% of sales (17.9% in 2019).

Current operating profit (EBIT) stands at €38.8 million. At 10.2%, the operating margin is down 1.4 points versus the same period of the previous financial year.

This robustness has been driven by the quick implementation of headcount adjustment plans, which primarily involved eliminating temporary work and overtime, and by making use of furlough schemes. Headcount was reduced by 2,204 full time equivalent employees over the period, representing a 28% reduction in the division's headcount. The fixed cost adjustment plan also started to deliver positive impacts towards the end of the halfyear.

The division has maintained a robust Free Cash Flow of €66.2 million (or 17.4% of sales).

LISI AUTOMOTIVE (35% of the total consolidated sales)

• Sudden shutdown of the main European manufacturers from the start of the crisis
• Proven flexibility of the manufacturing system by adapting deliveries to the geographic spread of the pandemic and to locked-down areas
• Activity resumed in Europe in June supported by government stimulus packages
• Resilient, positive EBITDA benefitting from short-term adjustment measures (up by 1.4% of sales)
• Focus maintained on high value-added products:
  • o disposal, on June 26, 2020, of all shares in LISI AUTOMOTIVE's German subsidiary Mohr & Friedrich, specialized in hot forging and producing spacers and nuts primarily for trucks and trailers (2019 sales: €14.8 million);
  • o acquisition of the remaining 49% of the capital of the American company Termax on June 30, 2020. Debt recognized in full upon acquisition of 51% of the shares on November 1, 2017. The successful completion of the deal reduced this acquisition debt by €18.5 million.

Analysis of changes in sales

Sales in € million	2020	2019	2020 / 2019	At constant scope and exchange rates
st quarter 1	136.3	156.0	-12.6%	-10.2%
2 nd quarter	60.4	151.2	-60.1%	-58.4%
6 months ended June 30	196.7	307.2	-36.0%	-33.9%

Automotive market

Global automotive markets recorded a steep decline in business in the first few weeks of the pandemic. Global registrations fell by 27.7% in the first half year compared to the prior year period (- 31.8% in the second quarter 2020). In China, the first region to see virus infections, registrations were down by 19.5% in the first half-year (but up 5.3% in the second quarter). Europe, where the virus took hold later, fell by 39.5% in the first six months with a 52.2% drop in the second quarter. However, in late June trends point to a short-term improvement, primarily due to the effects of government stimulus packages in France and Germany. In the Canada, USA and Mexico area ("NAFTA" region), which was affected later still, registrations fell by 25.1% in the half-year and by 35.3% in the second quarter.

Comments on half-year business activity and results

At €196.7 million, the division's sales were down 36.0% versus the same period in 2019 (and down by 60.1% in the second quarter).

At constant scope and exchange rates, half-year sales fell by 33.9% a less pronounced drop than global production, which declined by 37.7%. In the second quarter, global production was down 58.4%. All of the division's business activities were affected, with "Clipped Solutions" down 30.1%, "Safety Mechanical Components" down 31.9% and "Threaded Fasteners" down 35.9% compared to the first half of the previous financial year.

However, orders for new products remained buoyant at 10.9% of sales (approximately €21 million over the halfyear), particularly in the "Safety Mechanical Components" and "Clipped Solutions" businesses.

Results

EBITDA remained positive (up 1.4%) due to the quick implementation of headcount adjustment plans, which primarily involved eliminating temporary work and overtime, and making good use of furlough schemes. Headcount fell by 1,239 full-time equivalent employees over the period, representing a 31% reduction in the division's headcount.

Depreciation charges weighed on Current operating profit (EBIT) which was negative at -€17.1 million (representing 10.5% of sales). The decrease was partially offset by adjustment measures, including the cost savings plan launched at the beginning of the crisis. At -9.0%, the operating margin was down 12.0 points versus the comparable period a year ago. It is worth mentioning that, at the end of the first half, LISI AUTOMOTIVE had regained a level of business activity which took it over the break-even point.

Due to the steep decline in working capital requirements, the division posted a positive Free Cash Flow of €8.4 million or 4.3% of sales.

LISI MEDICAL (8% of the total consolidated sales)

• Unpredictable suspensions of customer orders
• Business continuity maintained until mid-April, particularly for American customers
• Lack of visibility regarding the recovery

Sales in € million	2020	2019	2020 / 2019	At constant scope and exchange rates
1 st quarter	35.1	36.6	-4.2%	-5.9%
2 nd quarter	24.4	36.0	-32.2%	-32.9%
6 months ended June 30	59.5	72.6	-18.1%	-19.3%

Analysis of changes in sales

Medical market

The medical market activity has declined, with a lag time of several weeks between Europe and the USA. The fall can be largely attributed to the postponement of non-urgent surgical procedures, and the massive increase in Coronavirus patients admitted to hospitals. Published studies all show a drop in the reconstruction surgery market of 17% to 19% in 2020.

Comments on half-year business activity and results

At €59.5 million, the division's sales were down 18.1% compared to the same period in 2019, and 32.2% in the second quarter. As expected, the minimally invasive surgery sector benefited from an increased rate of new products at the beginning of the period. Subsequently, the spread of COVID-19 in the USA led to reduced demand, while the LISI MEDICAL Orthopaedics site was affected by a sudden suspension of orders from its main customer at the beginning of the second quarter.

At constant scope and exchange rates, there was a 19.3% contraction in sales.

Results

EBITDA remained positive at 8.2%, supported by the implementation of headcount adjustment plans. The plans reduced headcount by 208 full-time equivalent employees over the period, representing a 20% drop in the division's total headcount.

Current operating profit (EBIT) stands at -€0.7 million. At -1.2%, the operating margin is down 4.7 points compared to the same period in the prior year. The fixed cost adjustment measures launched in the second quarter will begin to have a positive effect in the second half-year.

Thanks to high operating cash flow and good management of working capital requirements, the division posted a positive Free Cash Flow of €8.1 million or 13.6% of sales.

2020 LISI GROUP OUTLOOK AND TARGETS

LISI AEROSPACE

It is likely to take several years before the global aerospace market starts to, which will require adjustments for the long term. Therefore, adjustments implemented at the beginning of the crisis will have to be extended for a prolonged period. Moreover, the expected resumption of Boeing B737 MAX flights will only have a limited impact on the production rates for the "Structural Components" business in the short term.

The capital expenditure program will be reviewed while new product ramp-ups, innovation and production flexibility will remain a priority

The division will also benefit from the support provided by the first long-term fasteners supply contract awarded by Lockheed Martin for the F-35 program, announced on June 6. The contract will be fully supplied by LISI AEROSPACE's North-American platform. It covers 2020-2022 with three annual renewal options until 2025 and has a total value (over six years) of \$60 million. The deal will boost LISI AEROSPACE's position as a major fasteners supplier for aerospace and military aviation.

LISI AUTOMOTIVE

Pending the recovery of the European automotive market seen in June. production ramp up costs and working capital requirements will remain the division' s main area of focus. The teams will continue to closely monitor and manage numerous development projects in the "Safety Mechanical Components" and "Clipped Solutions" activities, where multi-material applications and cable fasteners are particularly well-suited to electric and hybrid models. They will also leverage previously established relationships with the US based Termax ("Clipped Solutions") and Hi-Vol ("Safety Mechanical Components"). The realignment of LISI AUTOMOTIVE's business on high value-added fasteners and mechanical components will enable the division to improve its margins in the second half of the year.

LISI MEDICAL

The reconstruction and minimally invasive surgery markets have not lost any of their long-term growth potential. Although the division will attempt to cushion the fall in business activity caused by COVID-19, the short-term recovery of the sector will be dependent on the backlog of surgeries that have been postponed due to pressure on healthcare systems.

LISI Consolidated

Despite the unprecedented current situation, the Group has proven that it can adapt while continuing to focus on its high value-added activities. This resilience is encouraging for the future as regards the Group's ability to maintain positive profitability and generate a good level of cash surplus.

Nevertheless, the results for the current financial year should be impacted by the planned cost savings in the second half-year. The Group's financial stability remains intact, allowing further consolidation of the value chain in its various businesses.

LISI has therefore confirmed its strategic ambition for long-term growth. The Group's "NEW DEAL" adaptation plan will support this process, through its business relaunch and industrial rescaling phases. As it enters a phase of repositioning, it aims at adapting to the new market conditions, and to seize any opportunities that may arise.

LISI Group consolidated balance sheet

ASSETS

(in thousands of euros)	6/30/2020	12/31/2019	6/30/2019
NON-CURRENT ASSETS
Goodwill Other intangible assets Tangible assets Non-current financial assets Deferred tax assets	354 946 31 438 700 612 10 897 25 797	354 552 29 393 732 776 16 977 17 312	350 890 30 559 740 377 15 790 14 494
Other non-current assets Total non-current assets	105 1 123 795	9 1 151 022	428 1 152 538
CURRENT ASSETS
Inventories Taxes - Claim on the state Trade and other receivables Cash and cash equivalents	323 287 23 296 198 123 253 276	321 639 16 206 275 072 236 809	334 761 17 346 274 900 206 487
Total short-term assets	797 981	849 727	833 493
TOTAL ASSETS	1 921 776	2 000 748	1 986 031

TOTAL EQUITY AND LIABILITIES

(in thousands of euros)	6/30/2020	12/31/2019	6/30/2019
SHAREHOLDERS' EQUITY
Capital stock Additional paid-in capital Treasury shares Consolidated reserves Conversion reserves Other income and expenses recorded directly as shareholders' equity Profit (loss) for the period	21 646 75 329 (19 845) 934 391 16 383 (9 553) 4 719	21 646 75 329 (14 435) 844 386 21 819 (6 877) 69 773	21 646 75 329 (14 413) 827 773 16 348 (4 819) 24 919
Total shareholders' equity - Group's share	1 023 073	1 011 642	946 782
Minority interests	2 505	9 740	8 875
Total shareholders' equity	1 025 578	1 021 382	955 657
NON-CURRENT LIABILITIES
Non-current provisions Non-current borrowings Other non-current liabilities Deferred tax liabilities	65 905 356 338 7 858 41 005	64 993 412 310 10 705 40 091	60 670 451 659 8 738 39 867
Total non-current liabilities	471 106	528 099	560 934
SHORT-TERM LIABILITIES
Current provisions Current borrowings* Trade and other accounts payable Taxes due	27 614 134 616 258 226 4 637	23 069 156 423 270 447 1 328	18 670 141 789 305 250 3 730
Total short-term liabilities	425 093	451 267	469 439
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES1 921 776		2 000 748	1 986 031
* Of which banking facilities	4 682	8 273	9 330

LISI Group consolidated income statement

(in thousands of euros)	6/30/2020	6/30/2019	12/31/2019
Pre-tax sales	636 684	886 237	1 729 527
Changes in stock, finished products and production in progress	(3 844)	2 877	(3 513)
Total production Other revenues*	632 840 23 169	889 114 14 304	1 726 014 28 508
Total operating revenues	656 009	903 418	1 754 522
Consumed goods Other purchases and external expenses Taxes and duties Payroll costs (including temporary workers)*	(167 012) (138 528) (9 100) (256 523)	(250 049) (179 602) (9 318) (334 281)	(476 490) (349 499) (11 995) (643 338)
Earnings before interest, taxes, depreciation and amortization (EBITDA)	84 846	130 168	273 200
Depreciation Net provisions	(58 798) (3 578)	(59 355) 2 011	(119 181) 1 094
Current operating profit (Earnings before interest and taxes [EBIT])	22 470	72 824	155 113
Non-recurring operating expenses Non-recurring operating revenues	(20 498) 428	(28 448) 112	(46 358) 1 523
Operating profit	2 400	44 488	110 278
Financing expenses and revenue on cash Revenue on cash Financing expenses Other interest revenue and expenses Other financial items Other interest expenses Taxes (of which CVAE (Tax on companies' added value))** Share of net income of companies accounted for by the equity method	(2 609) 933 (3 542) 7 279 17 223 (9 945) (2 647) 0	(2 590) 1 479 (4 069) (1 175) 9 836 (11 012) (13 691) 0	(4 326) 3 544 (7 871) (4 221) 26 688 (30 909) (27 918) 0
Profit (loss) for the period	4 425	27 032	73 812
Attributable as company shareholders' equity Interest not granting control over the company	4 719 (294)	24 919 2 113	69 773 4 039
Earnings per share (in €):	0,09	0,47	1,31
Diluted earnings per share (in €):	0,09	0,47	1,30

LISI Group consolidated cash flow statement

(in thousands of euros)	6/30/2020	6/30/2019	12/31/2019
Operating activities
Net earnings	4 425	27 032	73 812
Elim. of the income of companies accounted for by the equity method
Elimination of net expenses not affecting cash flows:
- Depreciation and non-recurrent financial provisions	58 636	59 141	119 418
- Changes in deferred taxes	(6 818)	179	(3 467)
- Income on disposals, provisions for liabilities and others	13 170	21 160	34 797
Gross cash flow margin Net changes in provisions provided by or used for current operations	69 413 990	107 512 65	224 560 (3 299)
Operating cash flow	70 403	107 577	221 261
Income tax expense elimination	9 464	13 512	31 385
Elimination of net borrowing costs	2 783	2 720	5 526
Effect of changes in inventory on cash	(5 928)	(7 437)	10 498
Effect of changes in accounts receivable and accounts payable Net cash provided by or used for operations before tax	65 156	9 705	(18 740)
Tax paid	141 877 (12 866)	126 076 (7 432)	249 929 (26 108)
Cash provided by or used for operations (A)	129 011	118 644	223 824
Investment activities
Acquisition of consolidated companies Acquired cash
Acquisition of tangible and intangible fixed assets	(36 429)	(67 847)	(118 555)
Acquisition of financial assets Change in granted loans and advances	2 249	(100)	(187)
Investment subsidies received
Dividends received
Total cash used for investment activities	(34 180)	(67 947)	(118 742)
Divested cash	(2 914)	(1 244)	(1 249)
Disposal of consolidated companies		3 000	3 000
Disposal of tangible and intangible fixed assets	171	840	1 737
Disposal of financial assets Total cash from disposals	(2 743)	2 596	(3) 3 485
Cash provided by or used for investment activities (B)	(36 923)	(65 351)	(115 257)
Financing activities
Capital increase
Net disposal (acquisition) of treasury shares Dividends paid to shareholders of the Group		(23 421)	(23 421)
Dividends paid to minority interests of consolidated companies	(452)	(791)	(1 769)
Total cash from equity operations	(452)	(24 212)	(25 190)
Issue of non-current loans	10 064	60 086	60 520
Issue of short-term loans	1 140	1 373	103 674
Repayment of non-current loans Repayment of short-term loans	(1 030) (68 492)	(5 511) (23 198)	(5 882) (147 088)
Net interest expense paid	(2 782)	(2 721)	(5 534)
Total cash from operations on loans and other financial liabilities	(61 101)	30 028	5 690
Cash provided by or used for financing activities (C)	(61 553)	5 816	(19 501)
Effect of change in foreign exchange rates (D)	(5 089)	886	2 338
Effect of adjustments in treasury shares (D)*	(5 388)	762	727
Changes in cash (A+B+C+D)	20 058	60 757	92 133
Cash at January 1 (E)	228 533	136 400	136 400
Cash at year-end (A+B+C+D+E)	248 594	197 158	228 533
Cash and cash equivalents Short-term banking facilities	253 276 (4 682)	206 488 (9 330)	236 809 (8 273)

Change in LISI Group consolidated shareholders' equity

(in t hou ds o f eu ros) san	Sha api tal re c	Cap ital- link ed miu (No te pre ms ) 7.3	Tre har asu ry s es	Con soli date d rese rves	Con sion ver rese rves	Oth er i and nco me exp ens es rde d d irec tly reco s' har eho lder as s ity equ	Pro fit fo r th e iod, Gr per oup sha re	Gro up' har f s s e o sha reh old ' ers ity equ	Min orit y inte ts res	Tot al s har eho lde rs' ity equ
Sha y 1 , 20 19 reh old ' eq uity at Jan ers uar	21 646	75 3 29	(15 17 5)	72 0 757	12 3 39	(6 9 18)	92 069	937 01 0	6 62 5	943 63 4
Pro fit ( loss ) fo r th riod N ( a) e pe Tra nsla tion diff s (b ) ere nce Pay ts in sha (c) men res Cap ital incr eas e Res tate t of trea sha (d) men sury res Res tate t as r IA S19 (g) men pe App riat ion of N -1 e ings rop arn Cha in s nge cop e Div iden ds d istri bute d Rec lass ifica tion s Res tate t of fina ncia l ins trum ents (f) men			740	104 92 0 69 14 3 52 (23 420 )	9 48 0	183 (3 4 07) 3 26 5	69 773 (92 069 )	69 7 73 9 4 80 104 0 923 (3 4 07) 0 14 3 52 (23 42 0) 0 3 2 65	4 0 39 (67 ) 947 (48 ) (1 7 69) 14	73 8 12 9 4 13 104 947 923 (3 4 07) 0 14 3 04 (25 189 ) 0 3 2 79
Var ious (e) Sha reh old ' eq uity at Dec ber 31 , 20 19 ers em	21 646	75 3 29	(14 5) 43	3 56 2 844 38 6	21 819	(6 8 77)	69 7 73	3 5 62 1 01 1 64 2	0 9 74 0	3 56 2 1 02 1 38 2
inc lud ing tot al in d ex orte d fo com e an pen ses rep r the ar ( a) + (b) + ( c) + (d) + ( e) + (f) ye					9 48 0	41	69 773	79 9 24	3 9 86	83 2 79
Sha reh old ' eq uity Jan y 1 , 20 20 at ers uar	21 646	75 3 29	(14 43 5)	844 38 6	21 819	(6 8 77)	69 7 73	1 01 1 64 2	9 74 0	1 02 1 38 2
							4 7 19	4 7 19	(29 4)	4 4 25
fit ( ) fo N ( a) Pro loss r th riod e pe Tra nsla tion diff s (b ) ere nce Pay ts in sha (c) men res Cap ital incr eas e Res tate t of trea sha (d) men sury res Res tate t as r IA S19 (g) men pe App riat ion of N -1 e ings rop arn Cha in s nge cop e Div iden ds d istri bute d Rec lass ifica tion s Res tate t of fina ncia l ins trum ents (f) men Var ious (e)		0	(5 4 10)	(1 1 53) 69 773 21 385 0	(5 4 36)	(21 0) (85 2) (1 6 15)	(69 773 )	(5 4 36) (1 1 53) 0 (5 6 20) (85 2) 0 21 385 0 0 (1 6 15) 0	(3 5 59) 0 (2 9 05) (45 2) (24 )	(8 9 95) (1 1 53) 0 (5 6 20) (85 2) 0 18 4 80 (45 2) 0 (1 6 39) 0
Sha reh old ' eq uity at Jun e 3 0, 2 020 ers	21 646	75 3 29	(19 84 5)	934 39 1	16 3 83	(9 5 53)	4 7 19	1 02 3 0 73	2 5 05	1 02 5 57 8
inc lud ing tot al in d ex orte d fo com e an pen ses rep r the ar ( a) + (b) + ( c) + (d) + ( e) + (f) + (g ) ye					(5 4 36)	(2 6 76)	4 7 19	(3 3 93)	(3 8 77)	(7 2 70)