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LISI 2016 FINANCIAL REPORT
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2.6.7
I
Currency risks
The Group is exposed to the fluctuations of currencies such as the
US dollar against the euro, and to a lesser extent to changes in the
Canadian dollar, the British pound, the Turkish lira, the Czech crown or
the Polish zloty. To reduce this level of risk, the LISI Group hedges the
currency risk through financial instruments for an estimated amount
corresponding to its final exposure.
The detail of such currency risk hedging is described in Chapter 3,
paragraph 2.5.3.3 “Currency risks”, as well as the hedging strategy
in place.
2.6.8
I
Interest rate risk
The Group has hedged a significant part of the interest rate risk on its
loans by swapping variable rates for fixed rates. The details of such
interest rate risk and of the instruments used to mitigate are described
in Chapter 3, paragraph 2.5.3.1. “Interest rate risk”
3
I
INSURANCE POLICY
The LISI Group has several insurance policies, which mainly cover
the following risks:
3.1
I
PROPERTY DAMAGE INSURANCE
As of January 1, 2016, this policy covered own and others’ installations,
as well as operating losses in the event of a claim. The deductible is
stated by claim and amounts to €0.1 million (€0.15 million for the
Manoir Aerospace sites), and this for a maximum coverage amount
of €1,520,248,220 for the buildings and equipment, €284,716,755 for
merchandise and €849,310,679 for operating losses.
3.2
I
THIRD-PARTY LIABILITY INSURANCE
This covers personal, physical and intangible damage that might occur
during operations, as well as damages that occur after delivery, to
the sum of €60 million per claim and per annum in primary coverage.
LISI AEROSPACE signed an insurance contract covering its liability
for injury, property damage and consequential damage and flight
disruptions due to its delivered aerospace products. The sum insured
for all subsidiaries, per loss and per insurance year is €500 million.
3.3
I
CORPORATE OFFICERS’
LIABILITY INSURANCE
The Group is covered by a directors’ liability insurance policy for all its
subsidiaries up to €20 million per annum.
Risk factors
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