Eurazeo / 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements

The main measurement methods adopted are as follows: items recognized at fair value through profit or loss are, in the • same way as derivatives, marked-to-market (for listed instruments) or marked to a model based on interbank market rates (Euribor, etc.); borrowings are recognized at amortized cost, using the effective • interest method. For unlisted debt, the fair value shown only

reflects interest rate movements for fixed-rate debt and any potential movements in Group credit risk for the whole debt; given their extremely short due dates, the fair value of trade • receivables and payables is considered equivalent to their carrying amount.

9.4

Net financial expense

Note

2018

2017

(In thousands of euros) Interest on borrowings Total finance costs, gross

(185,120) (185,120)

(167,548) (167,548)

Income and expenses on changes in derivatives Hedging reserves reclassified to profit or loss

9.2

(1,007) (1,526)

3,318

(4,282)

Other financial income and expenses

1,141

922

Total income and expenses on cash, cash equivalents and other financial instruments

(1,391)

(42)

Total finance costs, net Foreign exchange losses Foreign exchange gains

(186,511) (26,597)

(167,590)

(16,239)

26,597 (1,833)

9,853

Interest expense relating to the employee benefits obligation Reclassification of the hedging reserve – impact of share disposals

5.2

226

1,762

(10,391) (4,105) (1,904) (22,560) (190,150)

Reclassification of the foreign currency translation reserve – impact of share disposals

-

Other

(418) (489)

4

Total other financial income and expenses

NET FINANCIAL EXPENSE

(187,000)

The reclassification of foreign currency translations reserves is due to the sale of Asmodee shares.

9.5 Liquidity risk 9.5.1

Risk management

the figures for interest payable reflect total interest payable until • the due date or planned repayment date of the relevant loan. They were estimated based on forward rates calculated from the yield curves as of December 31, 2018; future cash flows are based on outstandings presented in the • balance sheet at the end of the fiscal year, and do not take account of any possible subsequent management decisions capable of significantly changing the Group's borrowings structure or hedging policy.

The Group relies mainly on the tailored use of credit facilities and bond issues to achieve its aim of maintaining the correct balance between continuity of funding and flexibility. As of December 31, 2018, forecast repayments on consolidated debt and related interest payments were calculated based on the following assumptions: 2019 repayment flows assume the non-renewal of credit facilities • and the repayment of bank overdrafts;

Eurazeo

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2018 Registration Document