LISI GROUP - 2018 Financial report

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3 IAuditors’ Report On The Consolidated Financial Statements
- Financial Year Ended December 31, 2018
To the Shareholders’ General Meeting of LISI,
Opinion
In accordance with the terms of our appointment by your Shareholders’
General Meeting, we have conducted the audit of the accompanying
Company financial statements of LISI for the financial year ended
December 31, 2018.
We certify that the Company financial statements comply with French
accounting rules and principles and provide a true and fair view of the
earnings derived from the Company’s activity during the year, as well as
the financial situation and net worth at the end of the financial year.
The opinion expressed above is consistent with the content of our report
to the Audit Committee.
Basis of our opinion
Audit repository
We have carried out our audit in accordance with the professional
standards in use in France. We consider that the itemswe have gathered
formboth a sufficient and an appropriate basis for our opinion.
Our responsibilities under these standards are specified in the section
“ResponsibilitiesofAuditorsrelatingtotheauditoftheCompanyfinancial
statements” of this report.
Independence
Wehavecarriedoutourauditincompliancewiththerulesofindependence
applicable to us, for the period running from January 1, 2018 to the date
of issue of this report, and in particular, we have not provided services
prohibitedunderArticle5,paragraph1,ofRegulation(EU)No.537/2014or
under the French Code of Ethics for Auditors.
Justification of our assessments - Key audit matters
Pursuant to the provisions of Articles L. 823‑9 and R. 823‑7 of the French
Commercial Code on the justification of our assessments, we informyou
of the key audit matters relating to the risk of material misstatements
which, in our professional judgment, have been more significant for the
audit of the consolidated financial statements of the financial year, and
howwe tackled these risks.
These assessments form part of our task as Auditors of the Company
financial statements, taken as a whole, and have helped us to form our
opinion, as it is described above. We do not express an opinion on
elements of these Company financial statements taken separately.
Valuation of Equity Interests
Risk identified How we tackled it
Equity interests, shown in the assets at December 31, 2018 for a net amount of
€228,097,000 are the largest item of the balance sheet.
As specified in Note 3.1.b of the Notes to the Financial Statements, they are
measuredatthecostatwhichtheywereacquired,excludingthecosts incurred
for their acquisition or, if applicable, their value in use. The value in use is
appraisedbasedonanumberofcriteriaincludingnetassetsandtheprofitability
outlook.
Considering the weight of equity interests in the balance sheet and their
sensitivity to variations in data and in the assumptions on which estimates of
the profitability outlook are based, we have considered the measurement of
the value in use of equity interests as a key audit matter.
To appraise the estimate of the value in use of equity interests, based on
information provided to us, our work included:
• analyzing,basedontheinformationprovidedtous,the justificationprovided
by management of the valuationmethod and the figures used to determine
these values;
• compareforasamplethedatatakenintoaccountfortheimpairmenttesting
of equity interests with source data by entity, taking into consideration the
results of the audit of the significant subsidiaries held;
• checking, using sample testing techniques, themathematical correctness
of the calculation of values in use used by the company.
Specific verifications
We have also carried out, in accordance with French professional
regulations, the specific verifications specifically required by the laws
and regulations in force.
Information provided in the management report and in
other documents sent to shareholders on the financial situation
and the Company financial statements
Wehavenocommentstomakeconcerningthesincerityandconsistency
withtheconsolidatedfinancialstatementsofthe informationprovided in
the management report of the Board or the documents sent to the
shareholders on the financial position and the financial statements.
We certify the truthfulness of the information and its consistency with
the annual financial statements relating to the terms of payment
mentioned in Article D. 441‑4 of the French Commercial Code.
Information regarding corporate governance
We certify the existence, in the section of the Board of Directors’
Management Report dedicated to Corporate Governance, of the
informationrequiredbyArticleL.225‑37‑3andL.225‑37‑4oftheFrench
Commercial Code.