FFP_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS

Statutory Auditors’ report on the consolidated financial statements

Statutory Auditors’ report on the consolidated financial statements

Financial year ended 31 December 2017

To the Shareholders,

Opinion

In accordance with our appointment as Statutory Auditors by your Shareholders’ General Meeting, we have audited the accompanying consolidated financial statements of FFP for the year ended 31 December 2017. In our opinion, the consolidated financial statements give a true and fair view of the financial position, the assets and liabilities, and the results of the group formed by the persons and entities included in the consolidation, in accordance with the International Financial Reporting Standards as endorsed by the European Union. The opinion formulated above is consistent with the content of our report to the Audit Committee.

Basis of our opinion

AUDIT We conducted our audit in accordance with professional standards applicable in France. We believe that the information that we collected provides a sufficient and appropriate basis for our opinion. Our responsibilities under those standards are stated in the “Responsibilities of the Statutory Auditors in relation to auditing the consolidated financial statements” section of this report. INDEPENDENCE We conducted our audit in accordance with the independence rules applicable to us between 1 January 2017 and the date on which we issued our report, and in particular we did not provide any services forbidden by article 5, paragraph 1 of Regulation (EU) No 537/2014 or by the code of conduct of the Statutory Auditors’ profession in France. Justification of our assessments – Key points of the audit As required by articles L. 823-9 and R. 823-7 of the French Commercial Code relating to the justification of our assessments, we inform you of the key points of the audit, relating to what were, in our professional judgment, the main risks of material misstatement in relation to our audit of the year’s consolidated financial statements, and our responses to those risks. Those assessments were made in the context of our audit of the consolidated financial statements taken as a whole and in the formation of our opinion stated above. We express no opinion on items of the consolidated financial statements taken in isolation. O Measurement of financial instruments classified as level 3 in the fair value hierarchy Notes 16 and 27 to the consolidated financial statements RISK IDENTIFIED AND MAIN JUDGMENTS As part of its investment activity, the FFP Group holds a large amount of financial instruments measured at fair value on its balance sheet. Most of those financial instruments are classified as available-for-sale securities. Fair value is determined in different ways depending on the type and complexity of the instruments: on the basis of prices quoted in an active market (instruments classified as “level 1” in the notes), on the basis of data that are observable in the market (instruments classified as “level 2” in the notes) and on the basis of data that are not observable in the market (instruments classified as “level 3” in the notes). In addition, where there is objective evidence that these financial instruments have fallen in value, impairment is recorded in the consolidated financial statements. The techniques used by management to value these instruments therefore rely significantly on judgment in terms of the choice of methods and parameters used. Financial assets amount to €4,104 million (including €118 million of impairment), of which €825 million consist of level-3 assets on the Group’s consolidated balance sheet at 31 December 2017. We took the view that the financial instruments classified as level-3 assets in the fair value hierarchy were a key point of the audit because they represented material exposures and because judgment was required to determine their fair value.

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2017 REGISTRATION DOCUMENT