EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements

Statutory Auditors’ report on the consolidated fi nancial c statements

Any unfavorable change in the business plans for the activities to which the goodwill has been allocated and the assumptions of discount rates and growth rates could materially a ff ect the recoverable value of these CGUs and potentially lead to the recognition of an impairment. We considered that the determination of the recoverable value of goodwill is a key point for the audit because of the relativeweight of goodwill in the Group’s fi nancial statements and because the determination of its recoverable value relies, to a large extent, on Management’s judgment. Our response We examined the procedures used to establish the impairment tests, examined their methods of implementation in line with the applicable accounting standards and, with the help of our valuation experts, assessed whether the principal estimations made by Management were of a reasonable nature. We veri fi ed: „ the reasonable nature of the cash fl ow projections presented to the Board of Directors compared to the economic and fi nancial context in which the di ff erent CGUs are operating, as well as the consistency of these forecasts with the Group’s historical performance; „ the examination of the main parameters adopted with respect to our own benchmarks, namely: „ the consistency of the perpetual growth rates used by Management, „ the methods of calculating the discount rate applied to estimated cash fl ows. In addition, we conducted our own sensitivity analysis and veri fi ed the arithmetic accuracy of the impairment tests. Speci fi c veri fi cations In accordance with the professional standards applicable in France, we also performed the speci fi c legal and regulatory veri fi cations that are required regarding the information about the Group that is provided in the Board of Directors’ management report. We have no matters to report with respect to the fair presentation of this information and its consistency with the consolidated fi nancial statements. We certify that the consolidated statement of non- fi nancial performance called for in Article c L.225-102-1 of the French Commercial Code does appear in the information about the Group given in the management report. It is further speci fi ed that, in accordance with Article c L.823-10 of that Code, the information contained in this statement has not been veri fi ed by us for its accuracy or consistency with the consolidated fi nancial statements and must be the object of a report by an independent third-party organization. Appointment of the Statutory Auditors We were appointed as EXEL Industries’ Statutory Auditors by the Annual General Meeting of February c 28, 1997 for the DELOITTE & ASSOCIÉS and that of January c 21, 2015 for the MAZARS. At September 30, 2018, Deloitte & Associés was in the twenty-second year of its assignment since the Company’s shares were listed for trading on a regulated market, and Mazars was in its fi fth consecutive year. The responsibilities of the Management and Corporate Governance personnel for the consolidated fi nancial statements In accordance with the IFRS benchmark adopted by the European Union, the Management is responsible for preparing consolidated fi nancial statements which re fl ect a true picture and for setting up the internal controls it considers necessary for preparing consolidated fi nancial statements which are free of material misstatements, and for preventing fraud or errors. When preparing the consolidated fi nancial statements, the Management is responsible for assessing the Company’s capacity to continue its operations and for presenting information in these fi nancial statements on the Company as a going concern and for applying the going concern accounting convention, unless it is planned to wind the Company up or for it to stop operating. The Audit Committee must monitor the procedures for preparing and processing the accounting and fi nancial information and the e ff ectiveness of the internal control and risk management systems, and if appropriate, the internal audit. The consolidated fi nancial statements were approved by the Board of Directors. Information resulting from other statutory and regulatory obligations

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EXEL Industries Group I 2019 Universal Registration Document

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