EXEL industries - 2019 Universal Registration Document

Separate fi nancial statements

Statutory Auditors’ report on the Company fi nancial c statements

Statutory Auditors’ report on the Company fi nancial Ƥ statements

5.5

Fiscal year ended September c 30, 2019 To the Annual General Meeting of EXEL Industries,

Opinion We audited the annual fi nancial statements of EXEL Industries for the fi scal year ended on September c 30, 2019 as appended to this report, in performance of the assignment entrusted to us by your Annual General Meeting. In our opinion, the annual fi nancial statements give a true and fair view of the fi nancial position and the assets and liabilities of the Company as of September c 30, 2019, and the results of its operations for the fi scal year then ended in accordance with accounting principles generally accepted in France. The opinion given above is consistent with our report to the Audit Committee.

Justi fi cation for the opinion

5

Framework for our audit We performed our audit in accordance with the professional standards which apply in France. We believe that the audit evidence we have obtained provides a su ffi cient and appropriate basis for our audit opinion. Our liabilitywith respect to these standards is stated in the “Liabilities of the Statutory Auditors for the audit of the annual fi nancial statements” section of this report. Independence We performed our audit in compliance with the independence rules applicable fromOctober c 1, 2018 to the date of our report andwe provided no services which are prohibited under Article c 5 paragraph c 1 of the Regulation (EU) No. c 537/2014 or by the Code of Ethics of the Statutory Auditors’ profession. Basis of our assessments - Key points of the audit In accordance with Articles c L.823-9 and R.823-7 of the French Commercial Code on the justi fi cation for our assessment, we are informing you of the audit’s key points concerning what we, in our professional judgment, consider to be the most signi fi cant risks of material misstatements in the annual fi nancial statements for the reporting period, and our response to them. These assessments were made within the context of the audit of the annual fi nancial statements overall and the formation of our opinion expressed above. We have no opinion to make on the components of these annual fi nancial statements taken individually. Risk identi fi ed Equity interests appear on the assets side of the balance sheet at September c 30, 2019 for a net amount of €171.3 c million, or 35.2% of total assets. They are recognized at their acquisition cost. Impairment is recognized when their value in use is below their net carrying value. As stated in note c 5.3 “Financial assets” the net carrying value of equity interests is compared to the share of shareholders’ equity of the companies held. When there is inadequate shareholders’ equity, the value in use is determined on the basis of the discounted cash fl ow forecasts. A provision for impairment is recognized when the calculated value in use is below the net carrying value. The estimate of the value in use of these securities based on cash fl ow forecasts requires exercise of judgment bymanagement. We considered the valuation of these assets to be a key point in our audit because of the amounts they represent and the importance of the management’s judgments. Our response Ourwork mainly involved reviewing the valuationmethods and, with the support of our valuation experts, checking the data and the assumptions used by management to determine the value in use of equity securities: „ For valuations relying on historical elements, we have veri fi ed that the shareholders’ equity used are in agreement with the annual fi nancial statements of the entities. Valuation of equity interests

EXEL Industries Group I 2019 Universal Registration Document

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