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Companies
Head office
Country
2017
2016
% of
control
% of
interests
% of
control
% of
interests
LISI MEDICAL DIVISION
LISI MEDICAL JEROPA inc.
Escondido (California)
USA 100.00 100.00 100.00 100.00
LISI MEDICAL REMMELE Inc
Minneapolis
USA 100.00 100.00 100.00 100.00
LISI MEDICAL FASTENERS SAS
Neyron (01)
France 100.00 100.00 100.00 100.00
LISI MEDICAL ORTHOPAEDICS SAS
Hérouville Saint-Clair (14)
France 100.00 100.00 100.00 100.00
LISI MEDICAL SAS
Neyron (01)
France 100.00 100.00 100.00 100.00
■■
The following companies (Termax Group) entered the scope of
consolidation on October 31, 2017:
–
–
Termax Corp.
–
–
Termax Int. LLC
–
–
Termax Int. Inc.
–
–
TMX Canada Corp.
–
–
TMX Mexico
–
–
TMX Fastener Systems
–
–
Shanghai Branch
■■
Creation of LISI AEROSPACE Cargo Equipment on January 1, 2017;
■■
On February 2, 2017, the LISI Group sold Précimétal Fonderie de
Précision.
2.3.5
I
Acquisitions of subsidiaries
In application of standard IFRS 3 on business combinations, the
LISI Group has 12 months from the acquisition date to make a final
allocation of the acquisition price and a final calculation of the
goodwill. Consequently, the amounts recognized at December 31, 2017
in the acquisition of the Termax Group may be reviewed at subsequent
closures. These amounts may concern certain assets and provisions.
Details of the impact of this acquisition on the Group consolidated balance sheet are given below:
(in €’000)
Recognized fair value
on the acquisition date
Notes
Fixed assets
16,132
2.5.1.2
Other net short-term assets and liabilities
3,865
Net inventories
9,067
2.5.2.1
Net debt
(3,867)
Taxes and provisions
Cash and cash equivalents
2,409
TOTAL NET SITUATION OF THE INCOMING COMPANY
27,607
% of the assets recovered
51
SHARE OF THE MINORITIES
13,527
SHARE OF THE NET SITUATION ACQUIRED BY LISI NORTH AMERICA
14,079
Acquisition price
54,962
CONSOLIDATION GOODWILL
40,882
A financial debt of €71 million was recognized on December 31, 2017
to take into account the two-step structuring of the acquisition
(commitment of the LISI Group to buy the remaining 49% by 2021).
This amount was offset by €57 million in shareholders’ equity, as
indicated in Note 2.5.3.
2.4
I
FINANCIAL RISK MANAGEMENT
The Group is exposed to the main following risks arising from the use
of financial instruments:
–
–
credit risk;
–
–
liquidity risk;
–
–
market risk,
–
–
interest rate risk;
–
–
currency risk;
–
–
raw materials risk.
This note presents the information on the Group’s exposure to each of
the risks above, its objectives, policy and procedures for measuring
and managing risk, and for capital management. Quantitative
information is given in other sections of the consolidated financial
statements.
The aim of the Group’s risk management policy is to identify and
analyze the risks to which it is exposed, define the upper and lower
risk limits and the controls required to manage risk and ensure
compliance with the limits defined.
2.4.1
I
Credit risk
Credit risk is the Group’s risk of financial loss in the event that a
customer or other party in a financial instrument fails to meet their
contractual obligations. This risk derives mainly from trade receivables
and securities held for sale.
44
LISI 2017 FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
3