Universal Registration Document 2019

51 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 The impact of the change in working capital on cash is as follows: in thousands of euros 12/31/2019 12/31/2018 Effect of the change in inventories 10,498 (5,744) Effect of the change in cash flow imbalances of customers and other debtors (16,555) (4,614) Effect of the change in cash flow imbalances of suppliers and other creditors (2,185) (12,031) Effect of the change in cash flow imbalances for taxes 5,277 16,072 CHANGE IN WORKING CAPITAL REQUIREMENTS (2,965) (6,317) The free cash flow broke down as follows: in thousands of euros 12/31/2019 12/31/2018 Operating cash flow 221,261 194,853 Net CAPEX (116,817) (131,282) Change in working capital requirements (2,965) (6,317) FREE CASH FLOW 101,479 57,254 3.4.3  /  Shareholders’ equity The Group’s shareholders’ equity stood at €1,012 million at December 31, 2019, against €937 million at December 31, 2018, representing an increase of €75 million. This change takes into account the following main factors: Changes in € million 12/31/2019 12/31/2018 Income for the period attributable to equity holders of parent 69.8 92.1 Capital increase reserved for employees 0.0 2.8 Distribution of dividends paid in May (23.4) (25.5) Treasury shares and payments in shares 1.0 (0.1) Actuarial gains and losses on employee benefits (3,4) (3.1) Change in fair value of cash flow hedging instruments 3.3 (8.8) Change in consolidation scope 14.4 (14.3) Miscellaneous restatements 3.6 0.1 Translation differences related to changes in the closing rate, including the revaluation of the dollar 9.5 3.9 TOTAL 74.6 47.0 The change in scope is essentially due to the decrease in the put on minority stakes following the revaluation of the acquisition liability for the Termax minority interests (€-15.3). The miscellaneous restatements item includes the return to historical value of equity interests in the amount of €4.4million. The Group implements a policy of buying back its own shares, in accordance with authorizations provided by the Shareholders’ General Meeting to the Board of Directors. The main purposes of the share buyback program are: ■ to increase the activity of the stock on the market by an Investment Services Provider via a liquidity contract in accordance with the AFEI professional code of ethics recognized by the AMF (the French financial market authority); ■ to grant stock options or free shares to employees and corporate officers of the company and/or its Group; ■ to retain and use shares as consideration or payment for potential acquisitions; ■ to cancel shares purchased, subject to the approval of the Extraordinary General Meeting to be called at a later date. Repurchased shares are classified as treasury shares and deducted from shareholders’ equity. 3.4.3.1 - Capital stock 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. 3.4.3.2 - 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) 12/31/2019 12/31/2018 Additional paid-in capital 57,588 57,588 Contribution premiums 15,030 15,030 Merger premiums 2,711 2,711 TOTAL 75,329 75,329 3.4.3.3 - Capital management The Group’s policy consists inmaintaining robust capital so as to support a highly capitalistic and growing business, preserve the confidence of shareholders and investors, support internal and external growth and withstand periods of recession. The Board of Directors is particularly attentive to capital returns and the dividends paid to shareholders.