RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

The Group had established interest rate hedging agreements (swaps) in the amount of €783 million on a total of €1,200.7 million of variable rate debt as of December 31, 2017, representing 65% of this amount (see “Off-balance sheet items” line in table below).

Overnight to 1 year (4) 277,678 825,302 (547,624) (10,000) (557,624)

More than 5 years

Beyond

(in thousands of euros)

Borrowings and financial debt excluding consignments (1)

1,139,257

94,995

Financial assets (2)

Position before management transactions

1,139,257 (573,000)

94,995

(200,000) (105,005)

Off-balance sheet items (3)

NET POSITION AFTER MANAGEMENT

566,257

(1) Loans from credit institutions, bank overdrafts, accrued interest not yet due and other borrowings and debt. (2) Cash and cash equivalents. (3) Derivative financial instruments. (4) Including variable rate assets and liabilities.

are financed by daily exchanges of euros for US dollars, corresponding to the sales made. A positive US dollar position may occasionally occur when inventory is low, and in that case corresponds to the value of the base stock to be replenished. Rubis Terminal Petrol (formerly Delta Rubis Petrol), its Turkey-based subsidiary, has selected the US dollar as its functional currency, as its main transactions are denominated in US dollars. As of December 31, 2017 the Rubis Énergie and Rubis Support and Services divisions showed a net positive position of USD 94 million consisting of debts, receivables and, more marginally, cash and cash equivalents. A €0.01 fall in the euro against the US dollar would not entail a material foreign exchange risk (less than €1 million before tax).

Interest rate sensitivity €420.7 million of the Group’s net debt has a variable interest rate. Confirmed variable rate loans (€1,200.7 million) plus short-term bank borrowings (€45.3 million), minus cash on hand (€825.3 million). In light of the hedging put in place, a 1% variation in short-term interest rates would not have a significant impact, on the cost of net financial debt for 2017 (impact of less than €100 thousand before tax). Foreign exchange risk Rubis purchases petroleum products in US dollars; its only potential exposure is therefore to this currency. With regard to storage business, CPA (trading business) remains marginally exposed (virtually no position) to foreign exchange risk as its purchases in US dollars

12/31/2017

(in millions of US dollars)

Assets

49

Liabilities

(143)

NET POSITION BEFORE MANAGEMENT Off-balance sheet position NET POSITION AFTER MANAGEMENT

(94)

(94)

Risk of fluctuations in petroleum product prices

The following 2 factors must be considered when analy zing the risk related to fluctuations in petroleum product prices: • petroleum product price fluctuation risk is mitigated by the short product storage times; • sales rates are revised on a regular basis, based on market conditions.

4.10.3 Other liabilities Current (in thousands of euros) Prepaid income and other accruals Fair value of financial instruments

12/31/2016

12/31/2017

36,212

18,362

3,249

4,597

TOTAL

39,461

22,959

Non-current (in thousands of euros)

12/31/2016

12/31/2017

Debt on the acquisition of fixed assets (long-term portion)

11

Other liabilities (long-term portion) Prepaid income (long-term portion)

1,665 1,785 3,461

1,564 2,283 3,847

TOTAL

2017 Registration Document I RUBIS

213