FFP_REGISTRATION_DOCUMENT_2017

5

FINANCIAL STATEMENTS

Consolidated financial statements

28.4 EXCHANGE-RATE RISK MANAGEMENT

The FFP group has a company accounted for under the equity method whose functional currency is the US dollar. The breakdown of available-for-sale assets by geographical zone is provided above in Note 28.1. The FFP group does not hedge its foreign-currency assets.

FFP’s investee companies operate in various countries and thus generate some of their earnings in currencies other than the euro. The FFP group also has equity securities denominated in CHF and MUR, and units in private equity funds denominated in USD.

USD

CHF

GBP

MUR

(in thousands euros)

Carrying amounts at 31 December 2017 Shares in companies accounted for under the equity method

-

- - -

-

35,652 536,611

Available-for-sale securities Other long-term assets Cash and cash equivalents

288,267

19,985

-

-

- -

7,214

10

50

Non-current financial liabilities Subscription commitments and shares not paid-up

(223,686)

- -

- -

- -

Current debt

-

NET POSITION BEFORE HEDGING Derivative financial instruments NET POSITION AFTER HEDGING

355,791

288,277

50

19,985

-

-

-

-

355,791

288,277

50

19,985

Given positions at 31 December 2017 and after hedging: O if the USD rose 10% against the euro, FFP’s reserves would rise by €35,579 thousand, with no material impact on profit or loss; O if the CHF rose 10% against the euro, FFP’s reserves would rise by €28,828 thousand, with no material impact on profit or loss;

O if the GBP rose 10% against the euro, FFP’s reserves would rise by €5 thousand, with no material impact on profit or loss; O if the MUR rose 10% against the euro, FFP’s reserves would rise by €1,999 thousand, with no material impact on profit or loss.

USD

CHF

GBP

MUR

(in thousands euros)

Carrying amounts at 31 December 2016 Shares in companies accounted for under the equity method

-

- - -

-

18,900 331,678

Available-for-sale securities Other long-term assets Cash and cash equivalents

258,031

19,082

-

-

- -

2,454

8

59

Non-current financial liabilities Subscription commitments and shares not paid-up

(143,956)

- -

- -

- -

-

Current debt

NET POSITION BEFORE HEDGING Derivative financial instruments NET POSITION AFTER HEDGING

209,076

258,039

59

19,082

-

-

-

-

209,076

258,039

59

19,082

Given positions at 31 December 2016 and after hedging: O if the USD rose 10% against the euro, FFP’s reserves would rise by €20,908 thousand, with no material impact on profit or loss; O if the CHF rose 10% against the euro, FFP’s reserves would rise by €25,804 thousand, with no material impact on profit or loss;

O if the GBP rose 10% against the euro, FFP’s reserves would rise by €6 thousand, with no material impact on profit or loss; O if the MUR rose 10% against the euro, FFP’s reserves would rise by €1,908 thousand, with no material impact on profit or loss.

160

FFP

2017 REGISTRATION DOCUMENT