Universal Registration Document 2019

3  /  Notes to the company financial statements LISI S.A. is a Société Anonyme (public limited company) with a Board of Directors, with capital of €21,645,726 representing 54,114,317 shares with a nominal value of €0.40. It is registered at the Belfort trade registry, under no. 536 820 269. The head office is located in Grandvillars at 6 rue Juvénal Viellard. The final annual balance at December 31, 2019 was €975,867,384. The annual income statement showed a profit of €47,199,320. The financial year runs over twelve (12) months, from January 1, 2019 to December 31, 2019. The notes and tables below form an integral part of the Company financial statements. 3.1  /  Accounting principles and policies The financial statements for 2019 are drawn up in line with current French accounting regulations. The accounting principles and policies have been applied in line with the prudence principle and with underlying assumptions which aim to provide an accurate picture of the Company: ■ the continuity of operations; ■ the comparability of accounting policies; ■ the independence of financial years. Items listed on the balance sheet are, depending on the item, valued at historic cost, transfer value, or net asset value. The accounting principles on which the Company financial statements for 2019 were drawn up are identical to those for 2018. The preparation of financial statements requires LISI to make estimates and speculative forecasts which are liable to impact on both its assets and liabilities as well as those of its subsidiaries and holdings. The latter are exposed both to specific, industry-related risks aswell as risks relating to thewider international environment. In LISI S.A.’s financial statements, the estimates and forecasts involved in implementing accounting policies particularly affect equity investments, notably when valuations (see note 3.2.2 below) are based on affiliates’ forecast data. 3.2  /  Detail of balance sheet items 3.2.1  /  Tangible and intangible fixed assets Tangible assets are valued at their historical cost (price of purchase and related expenses), and depreciation is calculated using the straight line or diminishing balance method, in accordance with their expected useful life: Economic depreciation Tax depreciation Software programs 3 years straight line 3 years straight line Buildings 33.33 years straight line 20 years straight line Transport equipment 5 years straight line 3 years using the diminishing balance method Office equipment 3 - 5 years straight line 3‑5 years using the diminishing balance method Office furniture 5 - 10 years straight line 5 - 10 years straight line a) Gross tangible and intangible fixed assets (in thousands of euros) As of 12/31/2018 Acquisitions Disposals/ Deconsolidations As of 12/31/2019 Start-up and development costs Other intangible fixed asset items 482 117 598 TOTAL 1 INTANGIBLE ASSETS 482 117 0 598 Land 38 38 Buildings on freehold land 76 76 General installations, fixtures and fittings 1,383 1,383 Office and IT equipment, furniture 783 19 0 802 TOTAL 2 TANGIBLE ASSETS 2,280 19 0 2,299 Tangible assets in progress 23 45 0 68 TOTAL 3 TANGIBLE ASSETS IN PROGRESS 23 45 0 68 TOTAL 2,785 181 0 2,965 84 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Company financial statements 3