LISI GROUP - 2018 Financial report

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2.7.4.2 - Commitment received regarding the acquisition
of the Hi-Vol Products LLC assets
As part of the acquisition of the Hi-Vol Products LLC assets by
LISIAUTOMOTIVEHiVolInc,theseller,backedbyitsparentcompanyArch
Global, has committed, via two specific insurance policies, to indemnify
thebuyerforanyharm linked, inparticular,to:(i)afiscalorenvironmental
risk, or a risk relating to welfare plans, up to the acquisition price and (ii)
aproductnon-complianceriskuptoUSD10millionsubjecttoadeductible
of USD 300,000 (reduced to USD 250,000 as of September 13, 2019).
2.7.4.3 - Commitments made and received as part
of the TERMAX acquisition
As part of the acquisition of Termax LLC, LISI HOLDINGNORTHAMERICA
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 the price of the
acquisition of the 51%stake, (ii) a corporate risk of USD 5million and (iii) a
product non-compliance expense of up to USD 10million.
2.7.4.4 - Commitment received in relation to the acquisition
of MANOIR AEROSPACE
In the context of the acquisition of the Manoir Aerospace group in June
2014, LISI AEROSPACE received a commitment fromthe seller to provide
€3millionofcoverforriskswithregardtoHSEcomplianceupto2019.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.
2.7.4.5 - Guarantees provided as part of the disposal transaction
of LISI AUTOMOTIVE Beteo GmbH
As part of the disposal of LISI AUTOMOTIVE Beteo GmbH, a liability
guarantee commitment was made by LISI AUTOMOTIVE KNIPPING
Verbindungstechnik GmbH.
2.7.4.6 - Other commitments
Other commitments relate to loan agreements that provide for early
repayment in the event of non-compliancewith financial covenants. The
details of these loans appear in paragraphs 2.5.6.1 and 2.5.6.2.
2.8 ICurrency exchange rates applied by foreign subsidiaries
12/31/2018 12/31/2017
Closing rate Average rate Closing rate Average rate
US dollar USD 1,1450 1,1793 1,1993 1,1370
Sterling GBP 0,8945 0,8860 0,8872 0,8757
Yuan CNY 7,8751 7,8156 7,8044 7,6557
Canadian dollar CAD 1,5605 1,5329 1,5039 1,4725
Zloty PLN 4,3014 4,2684 4,1770 4,2427
Czech crown CZK 25,7240 25,6784 25,5350 26,2891
Moroccan Dirham MAD 10,9579 11,0743 11,2218 10,9934
Indian rupee INR 79,7298 80,6258 76,6055 73,7879
Hong Kong Dollar HKD 8,9675 9,2438 9,3720 8,8634