72 / 168
2.7.4.2 Commitments received as part of acquisitions of companies
LISI HOLDING NORTH AMERICA:
As part of the acquisition of TERMAX LLC, LISI HOLDING NORTH
AMERICA agreed to purchase the remaining 49% of the shares by
March 31, 2021.
For their part, the sellers agreed to indemnify LISI subject to an
overall deductible of USD 200,000 for any prejudice that would be
related in particular to (i) an environmental and tax risk of up to
USD 5 million for the price of the acquisition of the 51% stake, (ii) a
social risk of USD 5 million and (iii) a product non-compliance expense
of up to USD 10 million.
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
Other commitments relate to loan agreements that provide for early
repayment in the event of non-compliance with financial covenants.
The details of these loans appear in paragraphs 2.5.6.1 and 2.5.6.2.
2.8
I
CURRENCY EXCHANGE RATES APPLIED BY FOREIGN
SUBSIDIARIES
12/31/2017
12/31/2016
Closing
rate
Average
rate
Closing
rate
Average
rate
US dollar
USD 1.1993
1.1370 1.0541
1.1032
Sterling
GBP 0.8872 0.8757 0.8562 0.8227
Yuan
CNY 7.8044 7.6557 7.3202 7.3415
Canadian
dollar
CAD 1.5039 1.4725
1.4188 1.4589
Zloty
PLN 4.1770 4.2427
4.4103 4.3744
Czech crown CZK 25.5350 26.2891
27.0210 27.0423
Moroccan
Dirham
MAD 11.2218 10.9934 10.6566 10.8485
Indian rupee
INR 76.6055 73.7879 71.5935 74.2001
Hong Kong
Dollar
HKD 9.3720 8.8634
8.1751
8.5626
72
LISI 2017 FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
3