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LISI 2011 —
64
— financial report
Consolidated financial statements
– Examination, together with those in charge of risk management,
insurance brokers and agents of the insurance companies with
which the Group has taken out its insurance policies to cover risks in
respect of contingent liabilities;
– Examination of transactions with related parties in respect of
guarantees or other commitments given or received;
– In general, review of all contracts and contractual commitments.
2.7.4.1 Commitments given in the context of ordinary operations
In addition to the actual sureties stated in the note to this document
(cf. note 2.5.6.3), and the operating leases whose annual charges are
presented in note 2.5.1.2, commitments provided as part of current
activities are as follows:
In €’000
2011
Miscellaneous guarantees
458
Training entitlements
3,411
Balance of investment orders
28,643
Commitments made
32,512
Rate swap
51,500
Foreign exchange hedging
86,928
Reciprocal commitments
138,428
Reciprocal commitments:
Reciprocal commitments are interest rate swaps to hedge variable rate loans (cf. note 2.5.6.1. Financial Debt) taken out to fund external growth.
As at December 31, 2011, the features of the swap contracts were as follows:
Notional at 12/31/2011
Value
In €’000
Departure date Maturity date
Payer rate
Payee rate Net present value
in €’000
LISI S.A.
10,000
02/06/2009 02/06/2014
2.7800% Euribor 3 months
(386)
LISI S.A.
10,000
04/08/2009 10/08/2013
2.4900% Euribor 3 months
(281)
LISI S.A.
15,000
09/30/2011 09/30/2016
2.0730% Euribor 3 months
(302)
LISI S.A.
4,750
09/30/2011 09/30/2016
1.5900% Euribor 3 months
(43)
LISI S.A.
4,750
12/30/2011 12/30/2016
1.3925% Euribor 3 months
(20)
LISI AUTOMOTIVE Former
7,000
12/31/2010 12/29/2017
1.7450% Euribor 3 months
(70)
Total
(1,102)
2.7.4.2 Commitments received as part of acquisitions
of companies
LISI AUTOMOTIVE:
– In the context of the takeover of the sites of Acument La Ferté
Fresnel, LISI AUTOMOTIVE was awarded by TEXTRON a guarantee to
cover environmental risks likely to threaten a site with no industrial
activity to date.
– As a liabilities hedging instrument, LISI AUTOMOTIVE enjoys a
hedging instrument for any unrealized liabilities discovered over a
two-year period as of the acquisition date.
2.7.4.3 Guarantees given as part of the divestiture
of LISI COSMETICS
As part of the divestiture of LISI COSMETICS, a commitment for
compensation was granted in favor of the buyer concerning any
reassessments from the tax or environmental authorities during a
period of two years with effect from the date of divestiture, subject to
a deductible of €500k, to exceeding a minimum threshold of €35k and
to an upper limit of €6m.
2.7.4.4 Other commitments
Subscription by LISI S.A in 2006 of a medium-term loan contract for
€35m unused as at December 31, 2011.