EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements 4

Statutory Auditors’ report on the consolidated fi nancial c statements

Statutory Auditors’ report on the consolidated fi nancial Ƥ statements

4.6

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

Opinion We audited the consolidated 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 General Meeting. We certify that the consolidated fi nancial statements for the year give a true and fair view, according to IFRS as adopted in the European Union, of the assets, fi nancial position and results of the Group formed by the persons and entities included within the scope of consolidation. The opinion given above is consistent with our report to the Audit Committee.

Justi fi cation for the opinion

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 liability with respect to these standards is stated in the “Liabilities of the Statutory Auditors for the audit of the consolidated 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. Comment Without calling into question the conclusion expressed above, we draw your attention to note c 2 “1.1 Statement of compliance” that speci fi es the impacts linked to the fi rst application of IFRS c 15 “Customer Contracts” and IFRS c 9 “Financial instruments”. 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 consolidated fi nancial statements for the reporting period, and our response to them. These assessments were made within the context of the audit of the consolidated fi nancial statements overall and the formation of our opinion expressed above. We have no opinion to make on the components of these consolidated fi nancial statements taken individually.

Goodwill impairment tests (Notes ƭ 1.4, 1.7 and 3 to the consolidated fi nancial statements)

Risk identi fi ed On September c 30, 2019, the Group’s net goodwill totaled €65.2 c million i.e. around 9.2% of the Group’s total assets. This goodwill was recognized following di ff erent external growth operations by the Group. Thesewere assigned to each CGU thus de fi ned by the Group: Agricultural Spraying, Sugar Beet Harvesters, Garden Watering and Spraying and Industrial Spraying. As stated in note c 1.7 of the notes to the consolidated fi nancial statements, the Group carries out an impairment test on goodwill at least once a year and every time the Management identi fi es an indicator of impairment. This test involves determining the recoverable value of each Cash Generating Unit to which the goodwill is allocated, and checking that the CGU’s net carrying value is not higher than their respective recoverable values. This is the value in use that is determined on the basis of the present value of future operating cash fl ows expected by Management over a fi ve-year period and a terminal value. The net values are presented in note c 3 to the consolidated fi nancial statements.

EXEL Industries Group I 2019 Universal Registration Document

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