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December 31, 2018
December 31, 2017
Perpetual
growth rate Discount rate
Perpetual
growth rate Discount rate
LISI AEROSPACE
2.00%
7.52%
2.00%
7.09%
LISI AUTOMOTIVE
2.00%
7.89%
2.00%
8.15%
LISI MEDICAL
2.00%
6.80%
2.00%
5.24%
Tests of sensitivity to the assumptions made were implemented and
concerned themain indicators in the calculations of the valuation tests:
discount rate, infinite growth rate, elements contributing to cash flows.
These sensitivity tests showed that the limit between the value in use
and the net asset is attained for the variation in these calculation
parameters:
December 31, 2018
Discount
rate
Infinite growth
rate
Cash
flow
EBITDA
rate
Rate used (as a %)
Increase in the discount rate
necessary so that the
recoverable amount is equal
to the book value (in basis
points)
Rate used (as a %)
Decrease in infinite growth
rate necessary so that the
recoverable amount is equal
to the book value (in basis
points)
Decrease in cash flows
necessary so that the
recoverable amount is equal
to the book value (in %)
Rate used (as a %)*
Decrease in the EBITDA rate
necessary so that the
recoverable amount is equal
to the book value (in basis
points)
LISI AEROSPACE
7.52%
758
2.00%
(1,496)
(58.28%)
(1,003)
LISI AUTOMOTIVE
7.89%
171
2.00%
(275)
(22.93%)
(217)
LISI MEDICAL
6.80%
194
2.00%
(268)
(30.12%)
(401)
* Not provided due to the underlying confidential nature.
December 31, 2017
Discount rate
Infinite growth rate
Cash flow
Discount rate
Rate used (as a %)
Increase in the discount rate
necessary so that the
recoverable amount is equal
to the book value (in basis
points)
Rate used (as a %)
Decrease in infinite growth
rate necessary so that the
recoverable amount is equal
to the book value (in basis
points)
Decrease in cash flows
necessary so that the
recoverable amount is equal
to the book value (in %)
Rate used (as a %)*
Decrease in the EBITDA rate
necessary so that the
recoverable amount is equal
to the book value (in basis
points)
LISI AEROSPACE
7.09%
898
2.00%
(1,906)
(65.41%)
(1,088)
LISI AUTOMOTIVE
8.15%
204
2.00%
(342)
(25.92%)
(242)
LISI MEDICAL
5.24%
391
2.00%
(560)
(56.93%)
(725)
* Not provided due to the underlying confidential nature.
50 LISI 2018 FINANCIAL REPORT CONSOLIDATED FINANCIAL STATEMENTS 3