RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

Derivative instruments may be designated as hedging instruments in a fair value or future cash flow hedging relationship: • a fair value hedge protects the Group against the risk of changes in the value of any asset or liability, resulting from foreign exchange rate fluctuations; • a future cash flow hedge protects the Group against changes in the value of future cash flows relating to existing or future assets or liabilities. The Group only applies cash flow hedges. Hedge accounting is applicable if: • the hedging relationship is clearly defined and documented at the date it is set up; • the hedging relationship’s effectiveness is demonstrated from the outset and throughout its duration. As a consequence of the use of hedge accounting of cash flows, the effective portion of the change in fair value of the hedging instrument is recorded directly in other comprehensive income. The change in value of the ineffective portion is recorded in the income statement under “Other financial income and expenses”. The amounts recorded in other comprehensive income are recycled in the income statement during the periods when the hedged cash flows impact profit and loss.

Value on balance sheet

Fair value

Breakdown of financial assets by class (IFRS 7) and by category (IAS 39) (in thousands of euros)

12/31/2016

12/31/2016

12/31/2017

12/31/2017

FINANCIAL ASSETS HELD TO MATURITY Bonds and negotiable debt securities

148 148

279 279

148 148

279 279

LOANS AND RECEIVABLES

612,737

496,862

612,737

496,862

Short-term loans Long-term loans

13,605 11,194 515,715 72,223 28,505 28,505

51,066 39,948 381,595 24,253

13,605 11,194 515,715 72,223 28,505 28,505

51,066 39,948 381,595 24,253

Deposits and guarantees Trade and other receivables

Other

FINANCIAL ASSETS AVAILABLE FOR SALE

3,315 3,315

3,315 3,315

Equity interests

Other FINANCIAL ASSETS AT FAIR VALUE

2,138 2,138

3,172 3,172

2,138 2,138

3,172 3,172

Derivative instruments

CASH AND CASH EQUIVALENTS

825,302 1,468,830

833,652 1,337,280

825,302 1,468,830

833,652 1,337,280

FINANCIAL ASSETS

Fair value of financial instruments by level (IFRS 7) Equity interests and other available-for-sale financial assets are considered to be level 3 (non-observable data), as the shares are not listed.

The fair value of derivative instruments is determined using valuation models based on observable data (level 2).

Cash and cash equivalents are detailed in note 4.5.5. They are classified as level 1, with the exception of term deposits in the amount of €193 million, which are considered as level 2.

2017 Registration Document I RUBIS 200