FFP_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS

Parent-company financial statements

Measurement Portfolio Investment Securities are measured at the lower of purchase price or current value. Current value is determined as follows: O securities of listed companies are valued at their closing price on the last stockmarket trading day of the year; O securities in unlisted companies are valued using the same methods as unlisted equity securities (see above); O investments in private equity funds and companies are valued at FFP’s share of Net Asset Value as reported regularly by management companies, which generally follow the recommendations made by IPEV (International Private Equity and Venture Capital Valuation Board) when valuing their investments. An impairment provision is booked if the current value as defined above is lower than gross value. 3. Treasury shares Through a financial service provider and in accordance with the provisions of Autorité des marchés financiers‘ regulations or accepted market practices, the Company implements a share buyback programme, which aims to ensure liquidity and consistent price quotes for its shares. A total payment of €400 thousand has been made to the financial service provider for the management of the programme. That deposit and movements in treasury shares are recognised in long- term investments. Impairment is recognised at the accounts closing date if current value falls below the cost price of the shares. 4. Other long-term investments Other long-term investments are recognised at their nominal value. At the balance sheet date, accrued interest is recognised in accrued income. An impairment provision is booked to cover any probable losses. 5. Receivables connected with shareholdings Receivables connected with shareholdings on the balance sheet mainly comprise advances granted to subsidiaries and any accrued dividends. RECEIVABLES Receivables are recognised at nominal value. Impairment is recognised if current value falls below the carrying amount. 1. Treasury shares Treasury shares intended to cover bonus share plans are recognised as transferable securities at their purchase price or net carrying amount on the date the decision is taken to award them. Where it is likely that the award of bonus shares to beneficiaries is probable, a provision for personnel expenses is recognised under liabilities on the balance sheet. That provision is measured on the C. D. MARKETABLE SECURITIES

basis of the likely number of shares to be awarded to beneficiaries, and is charged on a straight-line basis over the vesting period of the award. 2. Other marketable securities This item principally comprises units in money-market UCITS and negotiable debt securities with a maturity of less than three months. These securities are recognised as an asset on the balance sheet at their purchase cost excluding related costs, excluding front-end fees and excluding any prepaid interest. Impairment is recognised if the current value is lower than the purchase cost. Unrealised gains on UCITS units are not recognised. RETIREMENT BENEFIT OBLIGATIONS Company employees are entitled to post-employment benefits and the Company grants supplementary pension benefits to certain beneficiaries under certain conditions. The Company’s obligations aremeasured by independent actuaries. They are recognised according to the CNC recommendation of 1 April 2003. 1. Post-employment benefits Post-employment benefits are outsourced to an insurance company. No payment was made with respect to 2017. Since the asset value of the funds was lower than the related liability, a contingency provision of €43 thousand was recognised under liabilities at 31 December 2017. 2. Supplementary pension plan Since 30 June 2002, the defined-benefit pension plan has been replaced with a defined-contribution plan. The new plan relies on contributions by the Company and employee, based on the employee’s remuneration. The Company’s obligations with respect to rights acquired by employees before 30 June 2002 have been entirely outsourced to a life insurance company. The obligations arising from the former defined-benefit plan and relating to the company’s former employees were partly outsourced to an insurance company in 2004. The residual amount not covered stood at €225 thousand at 31 December 2017, and is recognised under contingency provisions. BORROWINGS AND DEBT FFP has negotiated credit facilities with credit institutions. Those facilities have a duration of three to five years, and drawings are dependent on the Company’s investments. Drawings are made for periods of between one month and one year and may be renewed depending on projected cash requirements. In 2017, FFP issued fixed-rate bonds with maturities of 8 and 10 years. Debt issuance costs are fully expensed in the year in which the issue takes place. Borrowings and debt are recognised at nominal value, including accrued interest at the balance sheet date. E. F.

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FFP

2017 REGISTRATION DOCUMENT