Universal Registration Document 2019

3.3  /  Detail of the main income statement items 3.3.1  /  Financial earnings from investments (in thousands of euros) Amount Dividends received from subsidiaries 32,527 Interest from loans to subsidiaries 6,737 TOTAL 39,264 3.3.2  /  Breakdown of corporate tax a) Income tax LISI S.A. benefits from the tax integration regime enacted by the law of December 31, 1987. This regime allows the taxable results of profit-making companies to be offset by the deficits of other companies, under certain conditions. Each company coveredby the tax integration regime calculates and recognizes its tax payable as if it were taxed individually. LISI S.A. recognizes the savings or additional tax burden resulting from the difference between the tax owed by the subsidiaries covered by the regime, and the tax resulting from the calculation of the joint result. The tax integration agreement stipulates that tax gains generated by loss-making subsidiaries should be retained at the parent company level. (in thousands of euros) Current profit (loss) Non operating profit (loss) Accounting result Pre-tax earnings 34,916 43 34,958 Income tax (653) (14) (667) Tax credits 6 6 Tax consolidation income 12,902 12,902 NET EARNINGS 47,171 29 47,199 3.4  /  Financial commitments Financial guarantees given LISI S.A. has signed letters of intent with banks relating to the commitments made by some of the Group’s subsidiaries. Moreover, its agreements with some partners require compliance with financial covenants. Financial derivatives Financial instruments Results relating to financial instruments used in hedging operations are calculated and recognized in such a way as to balance the income and expenses relating to the hedged elements. ANC regulation no. 2015‑05 has no impact on LISI’s accounts. LISI S.A. uses derivative financial instruments to hedge its exposure to foreign exchange risk, and occasionally to hedge its interest rate risks resulting from its financial activities. In accordancewith its cashmanagement policy, LISI S.A. neither holds nor issues derivatives for trading purposes. The currency hedges are underwritten by LISI S.A. to cover all of the LISI Group’s needs. The details at December 31, 2019 are as follows: 12/31/2019 12/31/2018 Fair value (1) Notional amount (2) < 1 year From 1 to 5 years More than 5 years Fair value (1) Notional amount (2) < 1 year From 1 to 5 years More than 5 years Long position of GBP against USD 0.3 20.4 20.4 0.0 0.0 (2.1) 32.4 20.4 12.0 0.0 Long position of CAD against USD 0.2 24.0 24.0 0.0 0.0 (0.5) 36.0 24.0 12.0 0.0 Long position of TRY against EUR 0.0 0.0 0.0 0.0 0.0 (0.5) 21.4 21.4 0.0 0.0 Long position of PLN against USD 0.1 18.0 18.0 0.0 0.0 (0.0) 16.8 16.8 0.0 0.0 CZK short position against the EUR 0.3 600.0 300.0 300.0 0.0 (0.1) 240.0 240.0 0.0 0.0 Long position EUR against USD (0.8) 147.0 117.0 30.0 0.0 2.8 178.9 111.9 67.0 0.0 0.0 (0.2) (1) Fair value amounts are expressed in millions of euros. (2) Maximum notional amounts are expressed in millions of currencies. 88 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Company financial statements 3