LISI 2012 FINANCIAL REPORT
53
3
Consolidated financial statements
The reduction in outstanding receivables is due to the sale
of receivables amounting as at December 31, 2012 to €52.2
million against €44.8 million as at December 31, 2011. The fair
value of these transferred assets in accordance with the IFRS 7
definition is equal to their nominal value. These transfers are
made in the form of factoring with conventional subrogation,
without recourse, thereby removing any exposure to a risk of
financial loss. There are two contracts for the assignment of
receivables, one signed for an indefinite period, the other for a
period of one year, automatically renewable. These contracts
provide for the opportunity to transfer receivables up to an
amount of €92 million.
Overdue receivables not covered by provisions mainly
concern major customers with which the Group has annual
or pluriannual business agreements. On the basis of historic
observations, the company considers the risk of non-collection
margin, with non-hedged overdue receivables being mainly
within less than one year; the share within more than one year
being totally immaterial.
2.5.2.3 OTHER SHORT-TERM FINANCIAL ASSETS
This item consists mainly of investment securities held by
the Group and in particular monetary SICAV instruments,
for a total of €31.9m, and negotiable security deposits of
€35.7m. The latter are recorded at their fair value, and value
adjustments are recorded into the income statement. These
positions are not exposed, the main backing instruments
guaranteeing the capital
2.5.2.4 CASH AND CASH EQUIVALENTS
The cash available as at December 31, 2012 stood at €30.6m.
It was mainly comprised of current bank accounts in euros and
currencies.
The impact of the change in working capital on cash is as
follows:
(in €'000)
2012
2011
Effect of the change in inventories
(6,030)
(33,562)
Effect of the change in cash flow
imbalances of customers and other
debtors
5,117
8,149
Effect of the change in cash flow
imbalances of suppliers and other
creditors
(1,063)
5,053
Effect of the change in cash flow
imbalances for taxes
(761)
(3,627)
Change in working capital
requirements
(2,737)
(23,986)
The free cash flow broke down as follows:
(in €'000)
2012
2011
Operating cash flow
119,678
95,298
Net CAPEX
(78,411)
(64,905)
Change in working capital
requirements
(2,737)
(23,986)
Free Cash Flow
38,530
6,407
2.5.3 Shareholders' equity
TheGroup's shareholders' equity stood at €574.7mat December
31, 2012, against €537.2m at December 31, 2011, being an
increase of €37.5 million. This change takes into account the
following main factors:
+€57.3mof income for the period attributable to holders of the
company's shareholders' equity,
-€13.5m of dividends paid in May 2012,
+€2.4m relative to treasury shares and payments in shares,
-€4,7m related to actuarial gains and losses on employee
benefits
-€0.1 of change in fair value of cash flow hedging instruments
-€0.1 m of miscellaneous restatements,
-€4 m of translation adjustment linked to variations in closing
rates, particularly regarding the depreciation of the dollar.
2.5.3.1 CAPITAL STOCK
Capital stock at year-end stands at €21,572,988, broken down
into 10,786,494 issued shares with a face value of €2. No
change has been recorded compared to December 31, 2011.
2.5.3.2 CAPITAL-LINKED PREMIUMS
Additional paid-in capital is broken down as follows:
Particulars of capital-linked premiums
(in €'000)
12/31/2012
12/31/2011
Additional paid-in capital
53,062
53,062
Contribution premiums
15,030
15,030
Merger premiums
2,711
2,711
Total
70,803
70,803
2.5.3.3 CAPITAL MANAGEMENT
La The Group's policy consists in maintaining robust capital so
as to preserve the confidence of shareholders and investors,
support growth and withstand periods of recession. The Board
of Directors is particularly attentive to capital returns and the
dividends paid to shareholders.
Instruments which provide access to the company’s capital
relate to the benefits conferred on managers and employees
under certain conditions, as set out in Notes 2.6.9 and 2.7.2.
