LISI GROUP - 2018 Financial report

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2.5.2.3 - Cash and cash equivalents
The cash available as at December 31, 2018 stood at €156.9 million,
comparedto€197.6millionin2017.Thisitemconsistsmainlyofinvestment
securitiesheldbytheGroupandinparticularmonetarySicavinstruments
and negotiable security deposits in the amount of €95.9 million and
current bank accounts in euros and foreign currencies. The latter are
recorded at their fair value, and value adjustments are recorded into the
income statement. These positions are not exposed, the main backing
instruments guaranteeing the capital.
The impact of the change in working capital on cash is as follows:
(in thousands of euros) 2018 2017
Effect of the change in inventories (5,744) 67
Effect of the change in cash flow imbalances of customers and other debtors (4,614) 7,943
Effect of the change in cash flow imbalances of suppliers and other creditors (12,031) 10,030
Effect of the change in cash flow imbalances for taxes 16,072 (35,451)
Change in working capital requirements (6,317) (17,411)
The free cash flow broke down as follows:
in thousands of euros 2018 2017
Operating cash flow 194,853 203,838
Net CAPEX (131,282) (140,146)
Change in working capital requirements (6,317) (17,411)
Free cash flow 57,254 46,281
2.5.3 IShareholders’ equity
The Group’s shareholders’ equity stood at €937 million at December 31, 2018, against €890 million at December 31, 2017, representing an increase of
€47 million. This change takes into account the following main factors:
Changes in € million 12/31/2018 12/31/2017
Income for the period attributable to equity holders of parent 92.1 108.0
Capital increase reserved for employees 2.8 0.0
Distribution of dividends paid in May (25.5) (23.9)
Treasury shares and payments in shares (0.1) 2.1
Actuarial gains and losses on employee benefits (3.1) 0.4
Change in fair value of cash flow hedging instruments (8.8) 18.3
Change in consolidation scope (14.3) (57.2)
Miscellaneous restatements 0.1 1.3
Translation differences related to changes in the closing rate, including the revaluation of the dollar 3.9 (19.3)
47.0 29.7
The -€14.3 million scope change is due to:
■■the declaration of an additional borrowing of €16.1 million for the
revaluation of the acquisition liability relating to the minority stake in
Termax (put onminority stake);
■■the purchase of a minority stake in LISI AEROSPACE Additive
Manufacturing for €1.8 million.
2.5.3.1 - Share capital
Share capital at year-end stands at €21,645,726, broken down into
54,114,317 issued shares with a face value of €0.40.
The number of shares in circulation rose by 90,442 following the capital
increase reserved for employees.
2.5.3.2 - Additional paid-in capital
This is due to the capital increase operation reserved for employees:
Breakdown of additional paid-in
capital (in thousands of euros) 12/31/2018 12/31/2017
Additional paid-in capital 57,588 54,843
Contribution premiums 15,030 15,030
Merger premiums 2,711 2,711
TOTAL 75,329 72,584
2.5.3.3 - Capital management
TheGroup’s policy consists inmaintaining robust capital so as to support
a highly capitalistic business, preserve the confidence of shareholders
and investors, support growth and withstand periods of recession. The
Board of Directors is particularly attentive to capital returns and the
dividends paid to shareholders.