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CONSOLIDATED FINANCIAL STATEMENTS
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LISI 2015 FINANCIAL REPORT
Other financial income and expenses mainly include exchange
profits and losses.
2.2.18.5 Income taxes
Corporate income tax (debit or credit) includes the tax to pay
(the tax credit) in respect of each financial year and the amount
of deferred taxation to pay (credit). The tax is recognized as
income, except if it relates to items that are directly recognized
as equity; in which case it is recognized as equity.
Deferred taxation is calculated using the variable carry
forward method for all timing differences at year-end between
taxable and accounting values of assets and liabilities on the
consolidated balance sheet. Fiscally non-deductible goodwill
does not give rise to a declaration of deferred tax.
Deferred tax assets are only recognized if their recovery is
probable. Deferred tax debits and credits are measured at the
tax rates that will be applicable when the timing differences
are settled.
The examination of the recoverability of brought forward losses
is subject to particular scrutiny and shall only be recoverable
if the subsidiary in question or its consolidation scope makes
profits in the near future.
Regarding French companies, pursuant to the removal of the
professional tax and its replacement by the CET and CVAE as
of 2010, the Group has decided to consider the CVAE in the
context of the IAS 12 standard. This decision will thus lead to
the posting of this tax as "Taxes" in the income statement.
In view of the change in the exceptional 10.7% contribution as
of January 1, 2016, the tax rate is reduced to 34.43% for some
deferred taxes for French companies.
2.2.18.6 Earnings per share
Net earnings per share (before dilution) are calculated on the
ratio between the net profit for the period and the weighted
number of shares in circulation during the period, after
deduction of shares held by the Group (treasury shares). Net
diluted earnings per share are calculated by including financial
instruments that provide deferred access to the Group’s capital
(stock options, share warrants).
2.2.18.7 Statement of cash flows
The Group has opted to present its consolidated cash flow
statement in accordance with the IFRS model.
2.2.19 Segment information
The LISI Group presents its segment information in accordance
with the criteria defined by IFRS 8.
■■
An operating segment is a component of an entity:
■■
that engages in business activities from which it may earn
revenues and incur expenses (including revenues and
expenses relating to transactions with other components of
the same entity);
■■
whose operating results are regularly reviewed by the chief
operating decision maker to make decisions about resources
to be allocated to the segment and assess its performance;
and
■■
for which discrete financial information is available.
The Group’s activities in 2015 are spread over three business
segments, in which the three divisions operate:
■■
the LISI AEROSPACE division, which covers all activities in the
aerospace market;
■■
the LISI AUTOMOTIVE division, which covers all activities in
the automotive market;
■■
LISI MEDICAL, which covers all activities in the medical
market.
■■
Other activities mainly include the activities of the Group’s
main company.
2.2.20 Indicators
The Group uses the indicators defined below.
Free cash flow: Operating cash flow minus net industrial
CAPEX
and changes in working capital requirements (see
chapter 3, note 2.6.2.3 Cash and cash equivalents).
Return on capital employed (ROCE):
Ratio of EBIT to average
capital employed (Shareholders' equity + Net debt for years N
and N-1).
Return on equity (ROE):
Ratio of net earnings to total
shareholders' equity.
Gearing:
Ratio of Net Debt to the Group share of consolidated
equity.
Book to bill:
Ratio of orders taken during the period to invoices
issued during that same period.
Revalued Net Assets (RNA):
Average of [(0.95 x Group Sales
Revenue) + (6.5 x Group EBITDA) + (10 x Group EBIT)] - Group Net
Debt for years N and N-1.