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INFORMATION REGARDING THE COMPANY AND CORPORATE GOVERNANCE
7
In France, LISI S.A. is the parent company of a Group consolidated
for fiscal purposes. In accordance with the express provisions of the
French Fiscal Consolidation Agreement, tax credit is retained by the
parent company, and companies are not entitled to compensation
should they leave the consolidation perimeter.
LISI S.A. offers its subsidiaries a number of services and skills relating
to central functions, such as legal and fiscal support, financial
support, management controls, procedures and audits, insurance
management and assistance with human resources, health, safety,
and environmental matters. The three divisions pay LISI S.A. a normal
level of compensation for these services, based on the operating
expenses incurred for the period, multiplied by a coefficient; these
charge-backs are broken down proportionally to each division’s added
value.
Data with related companies are as follows:
Amount concerning related
companies
(in thousands of euros)
companies
with which the
company has
equity interests
ASSETS:
Receivables related to equity
holdings
94,893
-
Debtors and apportioned
accounts
1,127
-
Cash advances to subsidiaries
395,058
-
Tax integration current
account
0
-
LIABILITIES:
Receivables related to equity
holdings
0
-
Subsidiaries’ financial
assistance
270,781
-
Tax integration current
account
14,826
-
Suppliers
216
-
INCOME STATEMENT:
IT maintenance
35
-
Reserves for equity interests
2,100
-
Service and management fees
invoices
9,518
-
Rental invoices
192
-
Miscellaneous chargebacks
1,471
-
Revenues from subsidiaries’
loans and current accounts
4,655
-
Revenues from equity interest
28,003
-
Significant intra-group items include:
■■
On the assets side:
–
–
receivables related to equity holdings:
–
–
LISI S.A. advanced, as a medium-term loan, USD 60 million to its
subsidiary Hi Shear Corporation due for repayment on May 2,
2026, to enable it to fund part of the acquisition in May 2016 of
the subsidiary LISI MEDICAL Remmele: the capital outstanding at
December 31, 2017 was USD 54.6 million, i.e. €45.7 million,
–
–
LISI S.A. advanced, as amedium-term loan, the sumof USD58million
to its subsidiary LISI Holding North America due for repayment on
October 27, 2030, which enabled it to fund part of the acquisition
in October 2017 of the TERMAX Group: the capital outstanding at
December 31, 2017 was USD 58 million, i.e. €48.4 million. The share
capital will begin to be repaid on October 27, 2021,
–
–
cash advances to Group subsidiaries as part of the Group’s cash
agreement.
■■
On the liabilities side:
–
–
cash granted to Group subsidiaries within the Group cash
management agreement,
–
–
the current accounts for the fiscal integration of tax receivables of
the companies integrated within the Group.
■■
On the income statement:
–
–
invoices for services and management fees from LISI S.A. to its
various subsidiaries,
–
–
the rents from the buildings leased to our subsidiary LISI
AUTOMOTIVE Former,
–
–
dividends received by LISI S.A. for the financial year 2017.
These transactions are entered into under normal market conditions;
in particular, they take into account costs that were actually incurred
and are billed back.
1.5
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AUDITORS’ FEES
The table below lists the fees paid to the Auditors appointed for
certifying the Group’s separate and consolidated financial statements.
These are the fees paid for services rendered and recognized for the
year 2017 in the financial statements of LISI S.A. and its subsidiaries,
whose income statements for the year and balance sheets are fully
consolidated.
LISI 2017 FINANCIAL REPORT