Universal Registration Document 2019

57 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 3.4.6.3 - Breakdown of net debt (in thousands of euros) 12/31/2019 12/31/2018 Cash and cash equivalents 236,809 156,879 CASH AVAILABLE [A] 236,809 156,879 Current banking facilities [B] 8,273 20,480 NET CASH [A - B] 228,536 136,399 Credits 461,166 449,847 Other financial creditors 99,294 25,859 NET DEBT [C] 560,460 475,706 NET DEBT [D = C + A - B] 331,924 339,307 GROUP EQUITY [E] 1,011,642 937,010 DEBT RATIO (EXPRESSED AS %) [D / E] 32.8% 36.2% NB: Reminder - 2017 debt ratio: 33.7% 3.4.7  /  Financial liabilities The cash table for all financial liabilities is as follows: Financial liabilities on the balance sheet (in thousands of euros) As of 12/31/2019 Breakdown of contractual flows not discounted on due date Total Net accounting value Less than 1 year Between 1 and 5 years Over 5 years Non-current borrowings 412,310 346,954 65,356 412,310 Other non-current financial liabilities (excl. PCA) 4,519 4,519 4,519 Current borrowings 156,420 156,420 156,420 Trade and other accounts payable 270,447 270,447 270,447 TOTAL FINANCIAL LIABILITIES 843,696 426,867 351,473 65,356 843,696 Financial liabilities on the balance sheet (in thousands of euros) As of 12/31/2018 Breakdown of contractual flows not discounted on due date Total Net accounting value Less than 1 year Between 1 and 5 years Over 5 years Non-current borrowings 337,354 301,595 35,759 337,354 Other non-current financial liabilities (excl. PCA) 1,734 1,734 1,734 Current borrowings 158,831 158,831 158,831 Trade and other accounts payable 298,469 298,469 298,469 TOTAL FINANCIAL LIABILITIES 796,388 457,300 303,329 35,759 796,388 3.4.8  /  Liquidity risk TheGroup’s cashmanagement is centralized: the vast majority of the cash surpluses or financing requirements of its subsidiaries, where local legislation permits, is invested or financed by the parent company on normal market terms. The central cashmanagement teammanages the financing of the Group, current and forecast, and ensures its capacity to meet its financial commitments. For that purpose, it maintains a level of the available cash and confirmed credit facilities compatible with its size and the maturities of its debt. As at December 31, 2019, the LISI Group had available unused bank overdraft lines of €40 million, and net cash of €236.8 million, resulting in a total operating cash flow of €276.8 million, making it insensitive to liquidity risk. 3.4.9  /  Interest rate risk The Group’s main exposure in terms of interest rate risk arises from the exposure of its variable-rate financial assets and liabilities to variations in interest rates. This could have an impact on its cash flows. Within the framework of its overall policy, the Group partly converts its initially variable rate liabilities into fixed rate liabilities, using financial instruments such as interest rate swaps. These hedging instruments are negotiated on OTC markets with banking counterparts, in a centralized manner by the Group’s Financial Department. They are not considered by the Group to be hedging instruments and are recorded at fair value to the income statement. The Group did not set up any new hedges in 2019. Its instruments in effect at December 31, 2019, relate to an outstanding amount of €40.7 million. The features of these instruments are presented in note 3.6.6 “Commitments.”