RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

4.7 INVENTORIES

ACCOUNTING POLICIES Inventories are valued at cost or net realizable value, whichever is lower. Inventory purchase cost is determined according to weighted average cost for Rubis Énergie and according to the First-In First-Out (FIFO) method for Rubis Terminal. Borrowing costs are not included in inventory cost. The net realizable value is the estimated sale price in the normal course of business minus estimated costs necessary to complete the sale. Impairment is recognized when the probable realizable value is lower than the net book value.

Gross value (in thousands of euros)

12/31/2016

12/31/2017

Inventories of raw materials and supplies

80,452 80,019 137,859 298,330

76,523 65,533 114,325 256,381

Inventories of finished and semi-finished products

Inventories of merchandise

TOTAL

Impairment (in thousands of euros)

Changes in consolidation

12/31/2016

Allowances

Reversals

12/31/2017

Inventories of raw materials and supplies

8,873

9,130 1,209

(7,769)

10,233

Inventories of finished and semi-finished products

279 614

(279) (276)

1,209

Inventories of merchandise

8 8

228

573

TOTAL

9,766

10,567

(8,325)

12,016

Changes in the scope of consolidation result from the acquisition of Galana activities in Madagascar.

RECONCILIATION OF CHANGE IN WORKING CAPITAL WITH THE STATEMENT OF CASH FLOWS

Net carrying amount as of 12/31/2017 Net carrying amount as of 12/31/2016

286,314 246,615 (39,699)

CHANGE IN INVENTORIES AND WORK IN PROGRESS ON THE BALANCE SHEET

Impact of change in the scope of consolidation

41,198

Impact of reclassifications

36

Impact of foreign exchange differences

(12,703) (11.168)

CHANGE IN INVENTORIES AND WORK IN PROGRESS IN THE STATEMENT OF CASH FLOWS

2017 Registration Document I RUBIS

205