The Company’s principal investment in associates is still Dassault Aviation despite the disposal of 810,072 shares in 2014.
The book value of this investment was € 2.4 billion as of 31 December 2014.The Company is exposed to the risk of unexpected material adverse changes in the fair value of Dassault Aviation and that of other associated companies.For equity investments other than associates, which make up only a fraction of the Company’s total assets, the Company regards the risk of negative changes in fair value or impairments on these investments as non-significant.Treasury shares held by the Company are not considered to be equity investments.
Additionally, treasury shares are not regarded
as being exposed to risk, as any change in value of treasury shares
is recognised directly in equity only when sold to the market and
never affects net income.
Treasury shares are primarily held to
hedge the dilution risk arising from employee stock ownership
plans and the exercise by employees of stock options.