EURONEXT_Registration_Document_2017

OPERATING AND FINANCIAL REVIEW

Overview

decrease of the rate would have resulted in an increase/decrease of the net interest income of €0.06 million based on the positions at 31 December 2017 (2016: €0.2 million). The Group was a net lender in US dollars at 31 December, 2017. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would have resulted in an increase/ decrease of the net interest income of €0.06 million based on the positions at 31 December 2017. Liquidity Risk The Group would be exposed to a liquidity risk in the case where its short-term liabilities become, at any date, higher than its cash, cash equivalents, short-term financial investments and available bank facilities and in the case where the Group is not able to refinance this liquidity deficit, for example, through new banking lines. Cash, cash equivalents and short-term financial investments are managed as a global treasury portfolio invested in non-speculative financial instruments, readily convertible to cash, such as bank balances, money market funds, overnight deposits, term deposits and other money market instruments, thus ensuring a very high liquidity of the financial assets. The Group’s policy is to ensure that cash, cash equivalents and available bank facilities allow the Group to repay its financial liabilities at all maturities, even disregarding incoming cash flows generated by operational activities, excluding the related party loans granted by the Group’s subsidiaries to its Parent.

with identifying risk exposures and monitoring and managing such risks on a daily basis. To the extent necessary and permitted by local regulation, the Group’s subsidiaries centralise their cash investments, report their risks and hedge their exposures in coordination with the Group’s central treasury team. The Group performs sensitivity analyses to determine the effects that may result from market risk exposures. The Group uses derivative instruments solely to hedge financial risks related to its financial position or risks that are otherwise incurred in the normal course of its commercial activities. The Group does not use derivative instruments for speculative purposes. Interest Rate Risk Substantially all significant interest-bearing financial assets and liabilities of the Group are either based on floating rates or based on fixed rates with an interest term of less than one year. As a result, the Group is not exposed to fair value risk affecting fixed-rate financial assets and liabilities. The Group is exposed to cash-flow risk arising from net floating- rate positions. The Group was a net lender in euros at 31 December, 2017 and 2016. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would have resulted in an increase/decrease of the net interest income of €0.1 million based on the positions at 31 December 2017 (2016: €0.3 million). The Group was a net lender in pound sterling at 31 December, 2017 and 2016. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/

The net position of current financial assets, financial liabilities and available credit facilities, excluding working capital items, as of 31 December, 2017 and 2016 is described in the table below:

2017

2016

In thousands of euros

5

Cash, cash equivalents and short term financial investments

187,785

174,501

Available credit facilities

250,000

390,000

Financial debt

(164,885)

(69,101)

NET POSITION

272,900

495,400

On 12 April 2017, the Group entered into a syndicated new revolving loan facility agreement, replacing the €390 million revolving credit facility entered into on 6 May 2014. Reference is made to Note 5.1.10 for more details on the “Facilities Agreement”.

MATURITY BETWEEN

MATURITY < 1 YEAR

1 AND 5 YEARS MATURITY > 5 YEARS

TOTAL

In thousands of euros

2017 Trade and other payables

99,161

-

-

99,161

Other short-term financial liabilities

6,654

-

-

6,654

Borrowings

753

166,165

-

166,918

Other long-term financial liabilities

-

10,000

-

10,000

2016 Trade and other payables

90,607

-

-

90,607

Borrowings

497

70,112

-

70,609

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2017 REGISTRATION DOCUMENT