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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
8.6 Financial risk management
The Group’s financial risk management policy is described in detail in Chapter 5 – Risk factors.
This note sets out the figures related to financial risk management.
EXPOSURE TO RISKS RELATED TO THE TRANSLATION INTO EUROS OF THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES DENOMINATED IN LOCAL
CURRENCY
The Group is exposed to risks related to the translation into euros of the financial statements of foreign subsidiaries denominated in local currency.
These risks mainly concern the EUR/GBP, EUR/USD, EUR/NGN and EUR/SAR exchange rates (at the date of this Registration Document, the
SAR was pegged to the USD at a fixed rate).
The Group’s main risk exposure in this respect concerns the translation into euros of financial statements denominated in GBP. The net assets of
UK subsidiaries denominated in GBP are set out in the table below.
In millions of GBP
Non-current assets
9.9
Current assets
36.7
Total assets
46.6
Non-current liabilities
1.7
Current liabilities
15.8
Total liabilities
17.5
Net assets
29.1
The year-on-year change in the GBP/EUR exchange rate was as follows:
1 GBP = x EUR
2016
2015
Year-on-year
change (%)
Year-end exchange rate
1.1679
1.3625
(14%)
RESIDUAL CONTRACTUAL MATURITIES
The residual contractual maturities of the Group’s financial liabilities break down as follows (including interest payments). The contractual cash
flows presented – which cover coupons, interest payments and redemptions/repayments – have not been discounted.
In millions of euros
Carrying
amount at
31/12/2016
Contractual
cash flows
Due within
1 year
Due in
1-5 years
Due beyond
5 years
Bond debt
14.4
14.4
14.4
–
–
Bank borrowings
80.8
80.8
80.5
0.3
–
Sundry financial liabilities
6.3
6.5
2.2
2.7
1.6
Current and non-current liabilities related to share acquisitions
18.5
32.6
4.4
8.7
19.5
Other non-current liabilities
5.9
9.6
–
5.9
3.7
Trade payables
66.4
66.4
66.4
–
–
Other current liabilities
(1)
10.1
10.1
10.1
–
–
Operating leases
(2)
–
44.4
19.4
24.3
0.7
Total contractual obligations
202.4
264.8
197.4
41.9
25.5
(1) Excluding accrued taxes and payroll costs and deferred income.
(2) Off-balance sheet commitments.
EARLY REPAYMENT RISKS ARISING FROM COVENANTS
The new financing set up to replace the Group’s revolving credit facility contains a covenant based on the consolidated gearing ratio (consolidated
net debt at the test date/EBITDA for the past 12 months as adjusted for acquisitions and divestments). This ratio is measured at the end of each
half-year period (with the first test taking place at 31 December 2016), and must not exceed 2.75 at end-December and 3.0 at end-June. If the
covenant is breached, a qualified majority of lenders (representing at least two thirds of the lending commitments) may demand early repayment
of the corresponding borrowings. At 31 December 2016, the Group’s gearing ratio was below the ceiling specified in the covenant.
ASSYSTEM
REGISTRATION DOCUMENT
2016
113