FFP_REGISTRATION_DOCUMENT_2017

5

FINANCIAL STATEMENTS

Consolidated financial statements

28.2 LIQUIDITY RISK MANAGEMENT

FFP has negotiated credit facilities with leading financial institutions to help it finance its investments.

FFP manages liquidity risk by paying constant attention to the duration of its financing arrangements, the permanence of its available credit facilities and the diversification of its resources.

At 31 December 2017, the credit facilities and borrowings granted to the FFP group amounted to €737 million, including €519 million of undrawn facilities. Undrawn facilities are due to expire as follows:

N+5 and beyond

31/12/2017

N+1

N+2 103 103

N+3 236 236

N+4 180 180

(in millions euros)

Bank borrowings

Nominal

519 519

- -

- -

TOTAL

The table below shows undiscounted cash flows relating to financial liabilities and derivative instruments. Those flows include principal repayments as well as future contractual interest payments. Foreign currency cash flows and variable cash flows are determined on the basis of period-end market data.

N+5 and beyond

31/12/2017

N+1

N+2

N+3

N+4

Total

(in thousands euros)

Bonds

Nominal Interest Nominal Interest

242,500

-

-

-

-

242,500

242,500 30,860 218,000

2,710

6,172

6,172

6,172

6,172

6,172

Bank borrowings

229,152

64,000

84,000

70,000

-

611

2,433 8,605

2,297

1,430

345

907

7,412

Total

474,973

72,469

91,602

76,517

249,579

498,772

Subscription commitments and shares not paid-up (1)

Nominal

342,656

-

-

-

-

342,656

342,656 21,322

Derivative instruments

5,929

3,045

3,222

2,738

3,079

9,238

Other

14

-

-

-

-

14

14

TOTAL 823,572 11,650 75,691 94,340 79,596 601,487 862,764 (1) Since calls are made by funds depending on their respective investments, and generally within 5 years from the subscription of units, their timing cannot be determined accurately. As a result, the corresponding cash flows have been included in the “N+5 and beyond” category in the table above.

For the calculation at 31 December 2017, the equity figures used are before the appropriation of 2017 income. FFP complied with all covenants at the end of 2017. FFP is a long-term shareholder. Given its debt/asset value ratio, the Company does not foresee any particular difficulties in renewing its existing credit facilities before or on expiry. In its ordinary cash management operations, FFP focuses on security when selecting investments. It only invests in regular money-market UCITS and certificates of deposit issued by top-tier banks. These products do not carry any significant risk of impairment.

None of FFP’s credit facilities are due to expire in 2017. Borrowings may fall due early in the event of a failure to make a repayment or non-compliance with contractual obligations. The main types of covenants related to debt borne directly by FFP are as follows: 1. net debt (parent-company financial statements)/equity (parent- company financial statements) <1; 2. consolidated net debt/value of securities (1) <0.5. These ratios are calculated exactly twice per year, and they are monitored regularly throughout the year. At 31 December 2017, the ratios with the highest values (depending on the definitions used by the banks) were: 1. net debt (parent-company financial statements) / equity (parent- company financial statements) = 0.35; 2. consolidated net debt / value of securities = 0.19.

(1) Value of securities is equal to the FFP group’s Gross Asset Value as determined in the Net Asset Value calculation.

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FFP

2017 REGISTRATION DOCUMENT