Vilmorin & Cie - Annual report 2017-2018

5 ANNUAL REPORT Vilmorin & Cie 197 2017-2018 2- Management of financial risks Vilmorin & Cie has set up a dedicated organization based on financial risk management policies that have been approved by the Executive Committee, with centralized management of risks to which it is exposed regarding currency exchange, raw materials, interest rates and cash. On June 30, 2018, the derived financial instruments set up by Vilmorin & Cie to manage its risks can be analyzed as follows: 2.1 - Information regarding currency exchange risks 2.1.1 Objectives Vilmorin & Cie manages its currency positions with the objective of hedging the risks of fluctuation of relative parities, mainly in relation to its industrial and commercial operations. Indeed, Vilmorin & Cie sets up forward contracts exclusively in order to hedge currency exchange risks linked to provisional flows. For this purpose, a procedure to manage currency exchange risks collectively has been set up in Vilmorin & Cie. This position mainly consists in taking out contracts with a fixed term. 2.1.2 Assets and liabilities analyzed according to the main foreign currencies In millions of euros Euro zone US dollar Canadian dollar GB pound Australian dollar Yen Israeli Shekel Turkish lira Other currencies Total 06.30.18 Assets (1) 952.4 483.1 16.7 53.1 28.6 30.9 90.5 37.8 323.5 2,016.6 Liabilities (1) 1,038.6 158.7 0.2 5.5 1.8 15.7 34.0 4.1 132.7 1,391.3 Differential -86.2 324.4 16.5 47.6 26.8 15.2 56.5 33.7 190.8 625.3 06.30.17 Assets (1) 980.7 472.5 17.1 41.7 27.2 63.2 109.8 48.1 294.3 2,054.6 Liabilities (1) 1,036.7 163.2 0.2 7.6 2.1 29.8 21.7 8.4 125.1 1,394.8 Differential -56.0 309.3 16.9 34.1 25.1 33.4 88.1 39.7 169.2 659.8 (1) This concerns all items on the balance sheet that are exposed to foreign currency risks, except goodwill, inventories, deferred taxes, reserves, provisions, and deferred charges and income. 2.1.3 Information on the nominal value of instruments set up to hedge currency exchange In millions of euros Nominal Due dates < 1 year 1 to 5 years > 5 years 06.30.18 Forward exchange contracts 42.9 42.9 - - Exchange options - - - - Total 42.9 42.9 - - 06.30.17 Forward exchange contracts 15.7 15.7 - - Exchange options - - - - Total 15.7 15.7 - - 5.1. Consolidated Financial Statements Financial INFORMATION