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LISI 2016 FINANCIAL REPORT
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.
LISI AEROSPACE:
In the context of the acquisition of the Manoir Aerospace group in
June 2014, LISI AEROSPACE received a commitment from the seller
to provide €3 million of cover for risks with regard to HSE compliance
up to 2019. This commitment is covered by an escrow account for the
same amount managed by a third party.
Additionally, the company received a guarantee of €5 million to cover
potential tax liabilities and labor-related risks up until 2019.
2.7.4.3 Guarantees given under the terms of the transaction for 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, subject to
a deductible of €500,000, to exceeding a minimum threshold of €35 k
and to an upper limit of €6 million.
2.7.4.4 Other commitments
■■
A borrowing of €30 million to mature in April 2022 was signed on
April 20, 2016. This provides for early repayment in the event that
the following covenants are not respected:
–
–
Gearing ratio: Net debt/Shareholders’ equity <1.2;
–
–
Leverage ratio: Net debt/EBITDA <3.5.
■■
A Shelf Agreement was signed on March 20, 2015 granting the
group an amount of $100 million. €40 million was drawn on March
4, 2016 repayable in March 2026. An amount of $33,1 million not
drawn at June 30, 2016 is still available for one year. The covenants
are identical to the 2013 operation:
–
–
Gearing ratio: Net debt/Shareholders’ equity <12;
–
–
Consolidated leverage ratio: Net debt/EBITDA <3.5;
–
–
Coverage ratio of interest expense: Net interest expense/EBITDA
<4.5
■■
A borrowing of €11.5 million to mature in January 2031 was signed
on January 15, 2016. This provides for early repayment in the event
that the following covenants are not respected:
–
–
Gearing ratio: Net debt/Shareholders’ equity <1.2;
–
–
Leverage ratio: Net debt/EBITDA <3.5.
2.8
I
CURRENCY EXCHANGE RATES APPLIED
BY FOREIGN SUBSIDIARIES
12/31/2016
12/31/2015
Closing
rate
Average
rate
Closing
rate
Average
rate
US dollar
USD 1.054 1.103 1.214 1.321
Sterling
GBP 0.856 0.823 0.779 0.803
Yuan
CNY 7.320 7.342 7.536 8.154
Canadian
dollar
CAD 1.419 1.459 1.406 1.464
Zloty
PLN 4.410 4.374 4.273 4.194
Czech crown CZK 27.021 27.042 27.735 27.551
Moroccan
Dirham
MAD 10.657 10.849 10.968 11.157
Indian rupee
INR 71.594 74.200 76.719 80.701
Hong Kong
Dollar
HKD 8.175 8.563 9.417 10.247
2.9
I
POST YEAR END EVENTS:
INFORMATION ON TRENDS
The sale of the company Précimétal Fonderie de Précision was
effective on February 2, 2017. At December 31, 2016 the sale had not
been finalized and as the impacts were not significant with regard
to the Group’s consolidated financial statements, the assets and
liabilities of these companies were not stated as fixed assets held for
sale. The income from disposals was taken into account in financial
year 2016 by the observation of a provision for income from disposals
amounting to – €2 million as a non-recurring operating expense.
CONSOLIDATED FINANCIAL STATEMENTS
3