FFP_REGISTRATION_DOCUMENT_2017

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ACTIVITY AND PROFIT FOR THE PERIOD

Post-balance sheet events

Post-balance sheet events

4.4

FFP intends to take part in Safran’s governance via a joint venture whose purpose will be to represent FFP and Fonds Stratégique de Participations (FSP), acting in concert with respect to Safran, on the new group’s Board of Directors. A proposal will be made in Safran’s next AGM on 25 May 2018 to appoint this company, named F&P and represented by its Chairman Robert Peugeot, to Safran’s Board.

In January 2018, in accordance with its December 2017 announcement, FFP tendered all of its Zodiac Aerospace shares to the public exchange offer initiated by Safran. Since the upper limit of the subsidiary offer was reached, the number of Zodiac Aerospace shares tendered by FFP to the exchange offer was reduced. As a result, FFP received 2,832,492 Safran shares, which are non-transferable for three years, along with €141 million. FFP then bought 375,237 Safran shares in the market for €31 million.

Trends and outlook

4.5

FFP’s Investments, supported by high-quality teams and proven business models, are continuing to benefit from positive trends in their respective markets, including rising consumption and a growing middle class in emerging-market countries, population ageing, growth in air traffic, outsourcing of business services, energy efficiency and sustainable development. FFP has strengthened its teams and has substantial financial resources, including over €500 million of unused credit facilities, with which to pursue its strategy as a long-term minority investor. Accordingly, FFP intends to play an active role with respect to its existing investees, while continuing to look for new investment opportunities with a selective, disciplined approach, and with a carefully controlled level of debt.

In 2017, PSA Group achieved record earnings from its historical Peugeot Citroën DS business, where profits rose for the fourth consecutive year. The group completed the acquisition of Opel/ Vauxhall and the European operations of GM Financial in the second half of 2017, and the PACE plan presented by Opel’s management has a target of achieving operating margin of 2% and positive operating cash flow in 2020. PSA Group has raised its targets for the “Push to Pass” plan, aiming to achieve recurring operating margin averaging over 4.5% in the Automotive division between 2016 and 2018 and 6% in 2021. The group is also aiming to grow revenue by 10% between 2015 and 2018, and by a further 15% by 2021. These targets will be updated in early 2019.

Other business information

4.6

Property, plant and equipment The Company’s FFP INVEST subsidiary owns 100% of FFP-Les Grésillons, which in turn owns a warehouse and office building in Gennevilliers. That building is let, and its net value on the consolidated balance sheet was €17.6 million at 31 December 2017, versus €17.5 million at 31 December 2016. FFP, via its wholly-owned FFP INVEST subsidiary, owns 74.5% of Financière Guiraud SAS, which owns 100% of SCA Château Guiraud, a maker of Sauternes wine that is designated as “premier cru classé” according to the 1855 classification. The 128-hectare estate contains 100 hectares of vineyards. Its business is described on page 20 of the Registration Document.

Dependence on patents, licences and industrial, commercial and financial contracts The Company has no dependence on patents, licences and industrial, commercial and financial contracts, except where indicated in Notes 28.2 and 28.3 to the 2017 consolidated financial statements. Information on supplier payment terms (article L. 441-6-1(1) of the French Commercial Code) At the end of 2017, trade payables amounted to €571,518.74, versus €204,262.66 at end-2016, and no payables had been due for more than 30 days.

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FFP

2017 REGISTRATION DOCUMENT