40
I LISI FINANCIALREPORT2013
CONSOLIDATEDFINANCIALSTATEMENTS
3
Liquidity risk
TheGroup'scashmanagement iscentralized:Theverygreatmajorityof
the cash surpluses or financing requirements of its subsidiaries, where
local legislationpermits it, is investedorfinancedbytheparentcompany
onnormalmarket terms. Thecentral cashmanagement teammanages
the financingoftheGroup,currentand forecast,andensures itscapacity
tomeet its financial commitments.For thatpurpose, itmaintainsa level
of the available cashand confirmed credit facilities compatiblewith its
sizeandthematuritiesof itsdebt.
At December 31, 2013, the LISI Group had several confirmed, unused
medium-term bank credits for a total amount of €95 million. This
amount, up by €64million over the year, arisesmainly from the issue
of unguaranteednotes on theUSprivatemarket (USPP) onOctober 17,
2013 for anamount of €56million, and the implementationof a second
financing from the European Investment Bank for an amount of €30
million.ThesetransactionsdemonstratetheGroup’scapacitytodiversify
its sources of financing, whilst extending themajority of its debt and
maintainingaveryadvantageouscostof financing.
The Group has available in addition to undrawnmedium-term lines,
unused bank overdraft lines of €35 m, and net cash of €85.8million,
resulting in a total financing capacity of €215.8m,making it insensitive
to liquidityrisk.
TheGroups financing contracts provide for compliancewith twomain
ratiorestrictions:
n
Netdebt /Shareholders’ equity<1.2
n
Consolidatednetdebt /ConsolidatedEBITDA<3.5
At December 31, 2013, the former amounted to 0.108 and the latter to
0.379, comparedwith 0.133 and 0.495, respectively, as at December 31,
2012. The Group therefore has a very comfortable margin of safety,
confirming its low liquidityrisk.
(in€'000)
12/31/13
12/31/12
Other short-term financial assets
0
71,535
Cashandcashequivalents
94,000
30,625
Cashavailable [A]
94,000 102,160
Short-termbanking facilities [B]
8,224
10,892
Netcash [A-B]
85,776
91,268
Credits
134,665 148,644
Other financial creditors
18,928
19,320
Netdebt [C]
153,593
167,964
Netdebt [D=C+A-B]
67,817
76,696
Groupequity [E]
625,179 574,657
Debtratio (expressedas%) [D /E]
10.8% 13.3%
N.B. :2011reminderofthedebtratioasa%: 19.1%
Thecashtable forall financial liabilities isas follows:
Financial liabilities recordedon balance sheet
At 12/31/2013
Breakdownof contractual flows not discountedon due date
(in€'000)
Net value
Within less
thanone year
Between 1 and
5years
Over
5years
Total
Long-termborrowings
118,640
56,159
62,481
118,640
Other long-term financial liabilities (excl.PCA)
5,632
5,440
192
5,632
Short-termborrowings
43,178
43,178
43,178
Tradeandotheraccountspayable
207,267
207,267
207,267
Total financial liabilities
374,717
250,445
61,599
62,673
374,717
Financial liabilities recordedon balance sheet
At 12/31/2012
Breakdownof contractual flows not discountedon due date
(in€'000)
Net value
Within less
thanone year
Between 1 and
5years
Over
5years
Total
Long-termborrowings
111,004
106,981
4,023
111,004
Other long-term financial liabilities (excl.PCA)
5,218
5,071
147
5,218
Short-termborrowings
67,851
67,851
67,851
Tradeandotheraccountspayable
188,093
188,093
188,093
Total financial liabilities
372,166
255,944
112,052
4,170
372,166
Market risk
Market risk is the riskofvariation inmarketprices, suchas interest rates,
affecting the Group result or the value of financial instruments held.
Managingmarket risk involves controllingmarket risk andmaintaining
itwithinacceptable limits,whilstoptimizingtheprofitability:riskratio.
