EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements Notes to the consolidated fi nancial statements

Note c 19 Net allowances for provisions and impairment

09/30/2018 Fiscal year

09/30/2019 Fiscal year

Consolidated (in € thousands)

Increases in operating provisions Provisions for contingencies and expenses

(9,364)

(9,089)

Provisions for current assets

(12,461)

(4,080)

Reversal of operating provisions Provisions for contingencies and expenses

10,893

11,937

Provisions for current assets

6,557

12,478

TOTAL

(4,374)

11,246

4

Note c 20 Non-recurring income/(expenses)

reduce 100 c sta ff (permanent, short-term and interim employees), mainly in Germany. At closing of the fi scal year at September c 30, 2019, the consequences of the Company restructuring plan were taken into account, and the following were recognized as non-recurring expenses: „ a restructuring provision of €14.9 c million, to cover the cost of the company safeguard plans; „ a reversal of a retirement provision of €1.2 c million linked to the employees a ff ected by the plan; „ an additional €7 c million for asset amortization and inventory impairment, due to the programmed suspension of production and site closure. Provisioning of the Guaranteed Minimum Pensions During the fi scal year, a court decision in the United Kingdom required that company retirement plans eliminate all unequal treatment of men and women arising from the payment of Guaranteed Minimum Pensions. The e ff ect of the harmonization was an increase in liabilities. As the obligation was the result of a court decision, it was treated as a cost of past services and led to the recognition of an exceptional expense of €1.4 c million.

Reorganization costs In July c 2019, the EXEL Industries group announced a plan to reorganize its Agricultural Spraying Division, which involves regrouping activities into Centers for Excellence for production and research. Under this plan, production, purchasing, product marketing and research and development activities will be brought together in three types of Centers for Excellence specialized in Self-propelled Sprayers, Large Scale Crops, or Vineyards & Arboriculture. The Beaurainville sitewill be dedicated to HARDI France Group’s (MATROT, EVRARD and HARDI) Self-propelled Sprayers, Fère-Champenoise to the BERTHOUD and TECNOMA brands’ Self-propelled Sprayers and to High-Clearance Tractors. The Belleville and Norre Alslev sites in Denmark will specialize in the development and production of Trailed and Mounted equipment, respectively for the BERTHOUD/ TECNOMA and HARDI/EVRARD brands. Finally, all of the Vineyard & Arboriculture know-how as well as the components of rotational molding will be concentrated in the Epernay Center of Excellence. The industrial activities of the Noyers-Saint-Martin (Matrot Self- propelled Sprayers), Saint-Denis de l’Hôtel (Nicolas Vineyards & Arboriculture) and Lleida sites (Vineyards & Arboriculture of the HARDI Group) will be progressively transferred to the Group’s Manufacturing Centers of Excellence. In addition, anticipating a di ffi cult environment for the European sugar industry for at least two years, we have adjusted our Sugar Beet Harvesters production capacities and we have launched a plan to

Note c 21 Financial income/(expenses)

09/30/2018 Fiscal year

09/30/2019 Fiscal year

Consolidated (in € thousands)

Income from cash and cash equivalents

700

464

Finance costs, gross

(4,541)

(4,108)

NET INTEREST LOSS

(3,841)

(3,645)

(Losses)/gains on foreign exchange & other fi nancial (income)/expenses

2,697

(3,088)

NET FINANCIAL LOSS

(1,144)

(6,732)

EXEL Industries Group I 2019 Universal Registration Document

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