FFP_REGISTRATION_DOCUMENT_2017

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ACTIVITY AND PROFIT FOR THE PERIOD Risk factors – Risk management and insurance

competitive environment and its outlook, and also how its valuation prospects are seen by the markets over the medium and long term. Summary briefings are provided on a regular basis to report on FFP’s analysis of investees’ results and on strategic developments affecting the investment in the portfolio of FFP, FFP INVEST and FFP Investment UK Ltd. FFP, FFP INVEST and FFP Investment UK Ltd are systematically represented on the Boards of the companies in which they hold shareholdings. The directors hold regular discussions with Executive Management and report on Board activities and events to the Investments and Shareholdings Committee. The Portfolio Investment Securities principally consist of holdings in private equity funds. FFP holds regular meetings with the teams managing these funds. They send a quarterly report on how the economic environment affects the companies in which the fund has invested and on the business and financial health of the portfolio companies. The Chief Operating Officer, the Chief Investment Officer and the Chief Financial Officer hold very regular discussions concerning the monitoring of cash flows linked to calls for capital and redemptions by the private equity funds. A summary of this monitoring is presented to the Investments and Shareholdings Committee, which tracks the development and performance of the portfolio of shareholdings and holdings Executive Management is responsible for debt management, with the assistance of the Finance division. The aim is to endow the Company with the long-term financing required for its programme of financial investments at the lowest possible cost. Its debt position is established each time a drawdown is made and at least once per month. A status report on debt and related hedges is presented by Executive Management at each Board of Directors’ meeting. For further information, see Note 28.2 to the 2017 consolidated financial statements on the management of liquidity risk. D. TREASURY MONITORING The Finance division has responsibility for managing treasury investments in keeping with the policy formulated by Executive Management. It is integrated with day-to-day cash management. It aims to invest available cash funds on a short-term basis until their use is required for the aforementioned investments. For these short-term investments, the priority is the safety of the funds. Only standard cash UCITS are selected. Treasury reporting is produced on a monthly basis and sent to Executive Management. in private-equity funds. C. DEBT MANAGEMENT

E. PREPARATION OF REPORTING A status report is prepared every month that includes: O changes in the value of listed shareholdings and private equity funds; O the debt and cash position, credit lines drawn down and repayments due, the cost of debt and hedging; O cash inflow and outflow tracking, including movements related to private equity investments; O an overview of general administration expenses, dividends received and due. Reliability of financial information The procedures implemented aim to separate the preparation and control, accounting records and payment functions. A. PROCEDURES FOR THE PREPARATION OF THE PARENT- COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS The parent-company financial statements are prepared on an annual basis. They are prepared in accordance with ANC (French accounting standards setter) Regulation no. 2014-03. These rules aim to provide a true and fair view of the Company, in line with the conservatism principle. Historical cost is the basic method used to measure items recorded in the accounts. For more details, please refer to Note 1 – Accounting Policies and Methods to the parent-company financial statements. The parent-company financial statements are audited by the Statutory Auditors, who are responsible for preparing a report. They are also presented to the Financial and Audit Committee. The consolidated financial statements are prepared for an interim period and for the full year in accordance with the regulations in force for publicly traded companies. Pursuant to Regulation no. 1606/2002 of 19 July 2002, the Company’s financial statements have been prepared in line with IFRSs since 1 January 2005. The annual and interim financial statements are audited by the Statutory Auditors, which are responsible for preparing a report. They are also presented to the Financial and Audit Committee. The Company fully consolidates or accounts for its subsidiaries and investments under the equity method. The main stages in the preparation and audit of the parent- company and consolidated financial statements are: O prior identification of points that are new, sensitive and liable to have a material effect on the financial statements or to raise accounting issues, as well as new requirements, especially in terms of the IFRSs; O a meeting with the Statutory Auditors prior to the annual and interim year-end dates to examine the key points of the reporting period;

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2017 REGISTRATION DOCUMENT