Eurazeo / 2018 Registration document

CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements

BREAKDOWN OF CASH FLOWS NOTE 13

Cash assets 13.1 The cash flow statement analyzes changes in cash presented net of bank overdrafts and including restricted cash.

As of December 31, 2018, restricted cash consists of cash allocated to the Eurazeo liquidity contract and the restricted cash of the Eurazeo Capital investments.

Note

12/31/2018

12/31/2017

(In thousands of euros)

Demand deposits

921,922 12,600 934,522 16,193 (15,603) (15,603) 935,112

863,595

Term deposits and marketable securities Cash and cash equivalent assets

5,158

9.1 9.1

868,753 20,441 (10,360) (10,360) 878,834

Restricted cash Bank overdrafts

Cash and cash equivalent liabilities NET CASH AND CASH EQUIVALENTS

9.1

Other short-term deposits TOTAL GROSS CASH ASSETS

9.1

15,220

15,306

965,934

904,500

Working Capital Requirement (WCR) components 13.2 The change in current assets and liabilities contributing to working capital requirements breaks down as follows:

Foreign currency translation and other

Change in consolidation

Change in WCR

Note 12/31/2017 *

scope Reclassifications

12/31/2018 (360,949)

(In thousands of euros)

Inventories

(349,647) (932,269) (60,021)

(80,067) 50,072 10,749 (2,693) (87,414)

70,387 85,490 (3,968) 6,559 28,332

349

(1,971) 2,653 (1,873) 11,348 25,902

Trade and other receivables

4.3.1 4.5.2

(60,658)

(854,712) (52,544) 862,555 632,376

Other current assets

2,569 (1,302) 78,112

Trade and other payables

4.4 848,643

Other liabilities

4.5.2

587,444

TOTAL WCR COMPONENTS * Before IFRS 5 restatements.

94,149 (109,353)

186,800

19,070 36,059 226,725

Net cash flows from operating activities 13.3 Cash flows from operating activities totaled €242.2 million (compared with €196.4 million in 2017). Entries into the scope of consolidation had a material impact on net cash flows from operating activities (primarily the WorldStrides group). Net cash flows from investing activities 13.4 Purchases of investment properties by Eurazeo Patrimoine totaled €21.5 million. The majority of purchases were performed by Highlight in 2018. Purchases of investments and available-for-sale assets mainly reflect the acquisition of Albingia by Eurazeo (€262.8 million); the acquisition of C2S by Eurazeo (€180.6 million); the acquisition of Idinvest by Eurazeo (€222.7 million); the acquisition of Lutti by CPK (€10.5 million – partially settled via a share capital increase); the acquisition of PCI by Seqens (€158.2 million); the acquisition of Rhône by Eurazeo (€48.8 million – partially settled via a share capital increase); and build-ups with existing companies and investments by Eurazeo PME group companies of €244.2 million. Proceeds from sales of investments mainly reflect partial sales of Elis and Moncler shares (€25.7 million and €54.1 million, respectively), the sale of Accor (€551.7 million), the sale of Banca Leonardo

(€20.2 million), the sale of Desigual (€141.9 million), the sale of Asmodee (€435.2 million) and the sale of Vignal Lighting Group and Odealim by Eurazeo PME (€140.6 million). Changes in consolidated scope mainly concern the entry into the consolidation scope of the C2S, IM Global Partner and Idinvest groups, entities acquired by Seqens and WorldStrides and the Vitaprotech and 2RH groups in Eurazeo PME, as well as the sale of the Asmodee group in Eurazeo Capital and of Odealim and Vignal Lighting Group in Eurazeo PME. Finally, dividends received from associates were primarily distributed by the Europcar (€7.4 million) and Elis (€5.1 million) groups. Net cash flows from financing activities 13.5 Net cash flows from financing activities mainly include the various acquisition financing flows (particularly C2S and in the Eurazeo PME, Seqens and WorldStrides groups), as well as loan repayment flows, mainly in the Eurazeo PME and Seqens groups. The €89.8 million dividend distribution by Eurazeo is also reflected in net cash flows from financing activities. Other dividends paid primarily concern amounts paid to minority interests following the sale of Moncler, AccorHotels, Elis and Desigual shares.

256

Eurazeo

2018 Registration Document