MRM_REGISTRATION_DOCUMENT_2017

3

General information on the issuer and its share capital

Consolidated financial statements for the year ended 31 December 2017

4.12 Loans and borrowings

Accounting principles Borrowings Financial liabilities comprise borrowings and other interest-bearing liabilities.

On initial recognition, they are measured at fair value, taking account of transaction costs directly attributable to the issuance of the financial liability. They are subsequently recognised at amortised cost using the effective interest rate method. The effective interest rate includes the nominal interest rate and actuarial amortisation of issue expenses and issue and redemption premiums. Borrowings of less than one year are classified as “Current borrowings”. Borrowing costs Revised IAS 23 – Borrowing costs removes the option of expensing borrowing costs and requires companies to capitalise borrowing costs directly attributable to the purchase, construction or production of a qualifying asset as a component of the cost of the asset. The Group borrows money specifically for the acquisition, construction or production of a specific qualifying asset. Financial expenses directly associated with this asset are accordingly easily determined and capitalised in the cost of the qualifying asset.

As of 31 December 2017, the Group no longer had any qualifying assets allowing the capitalisation of interest costs. The breakdown of current and non-current loans and borrowings is as follows:

31/12/2017

31/12/2016

(in thousands of euros)

Bank debts

71,141

58,643

Guarantee deposits received

1,083

1,210

Non current

72,223

59,854 15,506 21,839

Bank debts

2,244

Loan granted by SCOR SE Guarantee deposits received

21,889

921 189

1,001

Accrued interest

328

Current

25,244

38,674

TOTAL LOANS AND BORROWINGS

97,467

98,528

The breakdown of loans and borrowings by maturity is as follows:

31/12/2017

1 year

1 to 5 years Over 5 years

(in thousands of euros)

Bank debts

73,385 21,889

2,244

71,141

- -

Loan granted by SCOR SE Guarantee deposits received

21,889

-

2,004

921 189

993

90

Accrued interest

189

-

-

TOTAL LOANS AND BORROWINGS

97,467

25,244

72,133

90

92

M.R.M. 2017 REGISTRATION DOCUMENT