Universal Registration Document 2019

37 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 The application of this standard will also result in a change in the way the financial statements are presented as of 2019: ■ On the income statement: the rent expense recognized within the EBITDA will, under IFRS 16, be recognized partly as depreciation allowance within the EBIT and partly as interest expenses; this will have a favorable impact on EBITDA for the entire rent amount, partially the EBIT; ■ On the balance sheet: fixed assets will be recognized against financial liabilities which reflect the discounted value of rental payments still to be disbursed. ■ In the cash flow statement: the payment of rents currently presented in cash provided by or used for operating activities, will be presented under IFRS 16 for the part corresponding to interest expenses within cash provided by or used by financing activities. The part corresponding to depreciation will be restated for the cash flow capacity; ■ free cash flowwill also be favorably impacted in the amount of the portion recognized under depreciation. The Group has applied the transitional provisions provided for in IFRS 16. C8 bi) which provides for the determination of the book value as if IFRS 16 had been applied from the date of effect of the lease agreement, but by updating it using its marginal loan rate on the date of first application. The following impacts have been recorded: Resulting impacts and FCF (In thousands of euros) 12/31/2019 reported (1) Impacts IFRS 16 12/31/2019 restated for IFRS 16 (2) Cancellation of the rental expense 13,706 EBITDA 273,200 13,706 259,494 IFRS 16 Depreciation allowance (12,296) EBIT 155,113 1,410 153,703 IFRS 16 Interest expense (2,067) PROFIT (LOSS) FOR THE PERIOD 73,812 (658) 74,470 ATTRIBUTABLE AS COMPANY SHAREHOLDERS’ EQUITY 69,773 (658) 70,431 Removal of the IFRS 16 depreciation allowance 12,296 OPERATING CASH FLOW 221,261 11,639 209,622 FCF 101,479 11,639 89,840 Balance sheet impacts (In thousands of euros) 12/31/2019 reported (1) Impacts IFRS 16 12/31/2019 restated for IFRS 16 (2) ASSET Net tangible assets 732,776 76,150 656,626 O/w impact from 1 st application of the standard 64,051 LIABILITIES Total shareholders’ equity (profit (loss) for the period) 1,011,642 (658) 1,012,300 Non-current borrowings 412,310 64,767 347,543 Current borrowings 156,423 12,086 144,337 TOTAL DEBT 568,733 76,853 491,880 O/w impact from 1 st application of the standard 64,951 Impacts on ratios (In thousands of euros) 12/31/2019 reported (1) Impacts IFRS 16 12/31/2019 restated for IFRS 16 (2) GROUP NET DEBT 331.9 76.9 255.1 GEARING 32.5% 25.0% ROCE 11.5% 12.0% ROE 6.8% 6.9% EFN / EBITDA 1.21 0.98 (1) Including IFRS 16 impacts. (2) Restated without factoring in IFRS 16 impacts.