LISI GROUP - 2018 Financial report

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At 12/31/2017 Breakdown of contractual flows not discounted on due date
Financial liabilities recorded on balance sheet
(in thousands of euros)
Net value
accounting
Less than
1 year
Between 1 and
5 years
Over
5 years Total
Non-current borrowings 317,757 260,338 57,419 317,757
Other non-current liabilities (excluding deferred
income)
4,678 4,678 4,678
Current borrowings 179,973 179,973 179,973
Trade and other accounts payable 297,109 297,109 297,109
Total financial liabilities 799,517 477,082 265,016 57,419 799,517
The graph below shows the Group’s financial leeway over ten years, giving a total borrowing amount of €306.5million. The difference with the current
and non-current borrowings shown above (€360 million vs. €272 million) is primarily due to current banking facilities, employee profit-sharing and
leasing liabilities that are not included in the graph below:
Millions d’euros
Debt amortization profile at 12/31/2018
–55
–50
–60
–45
–40
–35
–30
–25
–20
–15
–10
-5
0
2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019
–0.8 –0.8 –0.8 –0.8
–13.5
–17.4
-54.7
– 56.6 – 57.1
– 27.8 – 28.0
-49.8
2.4.3 IMarket risk
The main risks covered by the Group’s financial instruments are the
foreigncurrencyrisk,rawmaterialsriskandthe interestraterisk.Thefair
value as at December 31, 2018 of the derivatives used in themanagement
of market risks is detailed below:
(in thousands of euros)
12/31/2018 12/31/2017
On the
assets
side
On the
liabilities
side
On the
assets
side
On the
liabilities
side
Interest rate risk
management
Variable rate payers swaps 1,189 1,309
Currency risk
management
Foreign exchange
derivatives 168 14,750
Rawmaterials risk
management
Rawmaterials derivatives 43 1,219
Total 43 1,358 1,219 16,059
Market risk is the risk of variation inmarket prices, such as interest rates,
affecting the Group result or the value of financial instruments held.
Managing market risk involves controlling market risk and maintaining it
within acceptable limits, whilst optimizing the profitability risk ratio.
The Group buys and sells derivatives and supports financial liabilities in
order tomanage market risk.
Hedging and market operations on interest rates, exchange rates or
securitiesusingfuturesinstrumentsarerecordedinaccordancewiththe
provisions of CRBF rules nos. 88‑02 and 90‑15. Commitments relating to
these transactions are posted to off-balance sheet accounts for the
nominalvalueofthecontracts.AsatDecember31,2018,thesumofthese
commitments represented the volume of transactions that remained
unsettled at year-end.
The accounting principles applied vary according to the nature of the
instruments and the operator’s initial intentions.
The commitments are detailed in paragraph 2.7.4.1 of chapter 3 of this
Annual Report.