EXEL industries - 2019 Universal Registration Document

Separate fi nancial statements

Statutory Auditors’ report on the Company fi nancial c statements

The purpose and approach of the audit We are responsible for preparing a report on the annual fi nancial statements. Our aim is to obtain the reasonable assurance that overall, the annual fi nancial statements do not contain anymaterial misstatements. Reasonable assurance corresponds to a high level of assurancewithout however guaranteeing that an audit which is performed to professional auditing standards systematically detects all material misstatements. Misstatements can come from fraud or result from errors and are considered to be signi fi cant when it is to be reasonably expected that when taken individually or together, theymay a ff ect the economic decisions which are taken by the users of the fi nancial statements based on them. As Article c L.823-10-1 of the French Commercial Code states, our mission to certify the fi nancial statements does not involve guaranteeing your Company’s viability, or the quality of its management. When a Statutory Auditor is performing an audit which is carried out in accordance with the professional standards applicable in France, he or she applies their professional judgment throughout the whole of the audit. In addition: „ the Statutory Auditor identi fi es and assesses the risks of material misstatement in the annual fi nancial statements, whether from fraud or mistakes and determines and implements auditing procedures to cover these risks and collects the information he or she considers to be su ffi cient and appropriate to form an opinion. The risk of not detecting a fraudulent material misstatement is higher than not detecting a signi fi cant material misstatement from a mistake because fraud may involve collusion, forgery, intentional omissions, false declarations or the circumvention of internal controls; „ the Statutory Auditor examines the internal control procedures which are relevant for the audit in order to decide the appropriate audit procedures in this context, and not in order to express an opinion on the e ff ectiveness of the internal control; „ the Statutory Auditor assesses the appropriate nature of the accounting methods used and the reasonable nature of the accounting estimations made by the Management as well as the information on them supplied in the annual fi nancial statements; „ the Statutory Auditor assesses the appropriate nature of the Management’s application of the going concern accounting convention and, based on the information collected, whether or not there is signi fi cant uncertainty connected to events or circumstances which are liable to a ff ect the Company’s capacity to continue operating. This assessment is based on the information which is collected up until the date of the Statutory Auditor’s report, with the proviso however, that subsequent circumstances or events could create doubts over the Company’s future as a going concern. If the Statutory Auditor concludes that a signi fi cant uncertainty exists, he or she will draw the reader’s attention in the report to the information supplied in the annual fi nancial statements relating to this uncertainty, or if this information is not supplied, or is not relevant, the Statutory Auditor will issue a certi fi cate with reserves or refuse to certify; „ the Statutory Auditor assesses the presentation of the annual fi nancial statements as a whole and whether they re fl ect the underlying events and operations in order to give a true picture. Report to the Audit Committee We submit a report to the Audit Committee describing the extent of the auditing services, thework program implemented and our conclusions. If necessary we also inform it of any signi fi cant weaknesses in the internal control we have identi fi ed for preparing and processing the accounting and fi nancial information. The report to the Audit Committee highlights what we consider posed the highest risks for material misstatements for the audit of the annual fi nancial statements for the period, and which are therefore the key points of the audit which it is our responsibility to describe in this opinion. We also supply theAudit Committeewith the declaration stipulated inArticle c 6 of the Regulation (EU) No. c 537-2014 con fi rming our independence under the rules applicable in France which are stipulated by Articles c L.822-10 to L.822-14 of the French Commercial Code and the Code of Ethics of the Statutory Auditors’ profession. If necessary, we discuss the risks weighing on our independence and the protective measures taken with the Audit Committee. Courbevoie and Lyon, January c 15, 2020 The Statutory Auditors

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Mazars

Deloitte & Associés

Lionel GOTLIB

Nathalie LORENZO CASQUET

EXEL Industries Group I 2019 Universal Registration Document

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