FFP_REGISTRATION_DOCUMENT_2017

5

FINANCIAL STATEMENTS

Consolidated financial statements

Instruments recognised at fair value Fair value through profit and loss

Derivative instruments

Liabilities (in thousands euros)

Level 1 fair value: quoted prices in active markets Level 2 fair value: based on data observable in the market Non-current financial liabilities Level 3 fair value: based on data not observable in the market TOTAL FINANCIAL LIABILITIES RECOGNISED AT FAIR VALUE

-

-

- - -

10,878

-

10,878

Reconciliation of level-3 movements Value at 1 January 2016

480,401 361,169 (100,975)

Purchases (+)

Disposals/Repayments (-)

Gains (losses) for the period recognised in profit and loss Gains (losses) for the period recognised in equity

18,287 44,959

Transfer between level 3 and other levels VALUE AT 31 DECEMBER 2016

-

803,841

NOTE 28

MARKET RISK MANAGEMENT

In managing those assets, FFP also carries out regular monitoring of each investment’s performance. Files are presented to the Investments and Shareholdings Committee and, as necessary, to the Board of Directors. The prices of listed assets are monitored on a daily basis. The valuations of all assets in the portfolio are updated every month and published twice per year. As regards the Compagnie Industrielle de Delle (CID) and LISI groups and the Zéphyr Investissement, LDAP, Redford EU II and USA II Holdings and Lapillus companies, which are accounted for under the equity method in FFP’s consolidated financial statements (under “investments in associates”), FFP is exposed to changes in the earnings of each of these entities. The same applies to companies in which FFP owns a majority stake and which are fully consolidated. As regards private equity investments, although FFP has no formal powers, it holds regular meetings with those responsible for the companies and gives its opinion on decisions that they are planning to take. Securities classified as available-for-sale are measured at fair value (based on their share prices in the case of listed securities) and may be affected by stockmarket or economic movements.

Risks are managed by Executive Management, under the supervision of the Board of Directors, particularly with regard to new investments (Investments and Shareholdings Committee). Committees systematically report on meetings taking place between two Board meetings in the next Board meeting. Executive Management is also responsible for managing interest- rate and exchange-rate risk. In each meeting of the Board of Directors, Executive Management presents the status of interest- rate and exchange-rate hedges. 28.1 EQUITY RISK MANAGEMENT FFP’s assets include a 9.32% stake in the PSA Peugeot Citroën group, along with minority but material stakes in other companies, both listed and unlisted. FFP always has a presence in the governing or supervisory bodies of its investee companies, and ensures that those companies are developing and are focused on creating value for shareholders.

156

FFP

2017 REGISTRATION DOCUMENT