RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

As of December 31, 2019, the Group had interest rate hedging agreements (caps and floors) in the amount of €696 million (excluding hedges for liabilities related to a group of assets held for sale) on a total of €1,325.4 million in variable rate debt, representing 53% of that amount (see “Off-balance sheet items” in the table below).

Overnight to 1 year (4)

1 to 5 years

Beyond

(in thousands of euros)

Borrowings and financial debt excluding consignments (1)

366,881 860,150 (493,269) (24,000) (517,269)

1,076,070

36,516

Financial assets (2)

Net position before management

1,076,070 (672,000) 404,070

36,516

0

Off-balance sheet items (3)

NET POSITION AFTER MANAGEMENT

36,516

(1) Loans from credit institutions, bank overdrafts, accrued interest not yet due and other borrowings and debt. (2) Cash and cash equivalents. (3) Derivative financial instruments. (4) Including variable rate assets and liabilities.

Interest rate sensitivity €574.4 million of the Group’s net debt has a variable interest rate, comprising confirmed variable rate loans (€1,325.4 million) plus

short-term bank borrowings (€109.2 million), minus cash on hand (€860.2 million). In light of the hedging put in place, a 1% variation in short-term interest rates would

not have a significant impact on the cost of net financial debt for 2019 (impact of less than €100 thousand before tax).

Foreign exchange risk Rubis purchases petroleum products in US dollars; the Group's only potential exposure is therefore to this currency. With regard to storage business, CPA (trading business) remains marginally exposed (virtually no position) to foreign exchange risk as its purchases in US dollars are financed by daily exchanges of euros for US dollars, corresponding to the sales made. A positive US dollar position may occasionally

occur when inventory is low, and in that case corresponds to the value of the base stock to be replenished. Rubis Terminal Petrol, based in Turkey, has selected the US dollar as its functional currency, as its main transactions are denominated in US dollars. As of December 31, 2019, the Rubis Énergie and Rubis Support and Services

divisions showed a net positive position of USD 156.5 million consisting of debts, receivables and, more marginally, cash and cash equivalents. The Group’s exposure has increased due to the consolidation of the KenolKobil entities. A €0.01 fall in the euro against the US dollar would not entail a material foreign exchange risk (less than €1.5 million before tax).

12/31/2019

(in millions of US dollars)

Assets

114

Liabilities

(271) (157)

NET POSITION BEFORE MANAGEMENT Off-balance sheet position NET POSITION AFTER MANAGEMENT

(157)

Risk of fluctuations in petroleum product prices The following 2 factors must be considered when analyzing the risk related to fluctuations in petroleum product prices: • petroleum product price fluctuation risk is mitigated by the short product storage times; • sales rates are revised on a regular basis, based on market conditions.

4.10.3

OTHER LIABILITIES

Current (in thousands of euros)

12/31/2019

12/31/2018

Deferred income and other accruals Fair value of financial instruments

13,787

15,048

3,795

4,582

TOTAL

17,582

19,630

Non-current (in thousands of euros)

12/31/2019

12/31/2018

Liabilities on the acquisition of fixed assets and other non-current assets Other liabilities (long-term portion)

3,894 1,099 4,993

887

Deferred income (long-term portion)

1,477 2,364

TOTAL

250 i Rubis 2019 Universal Registration Document