EXEL industries - 2019 Universal Registration Document

Separate fi nancial statements

Notes to the parent company fi nancial statements

As part of its international development activity, our Company grants loans or foreign currency current account debits to certain of the Group’s foreign subsidiaries. The asset and liability foreign currency translation adjustments are the result of foreign currency fl uctuations on the account closing date compared to the historical conversion rate. During the fi scal year the Company continued its foreign exchange risk policy by using short-term and medium-term lines of credit in foreign currencies to hedge its receivables due from foreign subsidiaries. These measures reduced the Company’s exposure to exchange rate impacts. Share capital The share capital is comprised of 6,787,900 fully paid up shares of €2.50 each. 11.

Inventories and work in progress

7.

Not applicable.

8. Trade receivables Receivables are recorded at face value. A provision for impairment is recognized in the event of di ffi culties to recover them. Marketable securities This line item includes treasury shares held in connection with a market-making agreement. At the fi scal year-end, there were 1,969 c treasury shares valued at €40.80 per share for a total of €80 c thousand. During the fiscal year, the Company purchased 15,181 c shares at an average price of €62.39 per share and sold 14,613 c shares at an average price of €59.86 per share. 9.

Change in shareholders’ equity:

12.

(in € thousands) Shareholders’ equity at September c 30, 2018

10. Foreign exchange risk On 9/30/2019, the Company holds in its cash assets:

5

323,443

Dividends

(7,736)

„ USD c 75 c thousand; these foreign exchange holdings were not covered by a currency hedge; they are measured at the closing rate of USD c 1.0889/€; this balance represented €69 c thousand; „ GBP c 57 c thousand; these foreign exchange holdings were not covered by a currency hedge; they are measured at the closing rate of GBP c 0.8857/€; this balance represented €64 c thousand; „ AUD c 278 c thousand; these foreign exchange holdings were not covered by a currency hedge; they are measured at the closing rate of AUD c 1.6126/€; this balance represented €172 c thousand.

Net income for the fi scal year

14,150

Change in tax driven provisions

78

SHAREHOLDERS’ EQUITY AT SEPTEMBER c 30, 2019

329,935

13. Provisions for contingencies and expenses Provisions for contingencies and losses are recorded whose purpose and term are clearly de fi ned or whose amount can be reliability determined, when the Company has an obligation towards a third party and it is certain or probable that it will result in an out fl ow of resources with no in fl ow of resources representing an equivalent amount expected in return.

Changes in the fi scal year

13.1.

Reversals (used provision)

Reversals (unused provision) 09/30/2019

Separate fi nancial statements (in € thousands)

09/30/2018 Allowance

Lawsuit contingency provisions for subsidiaries

110

444

554

Provisions for subsidiary losses

-

146

146

Provisions for restructuring

-

102

102

Provisions for retirement bene fi ts

61

14

75

Provisions for foreign exchange losses

73

99

(73)

99

TOTAL

244

805

(73)

-

976

13.2 Retirement severance bene fi ts Retirement severance payments under collective bargaining agreements (on the basis of a retirement age of 65) are calculated according to rights vested at the end of the fi scal year in accordance with the agreement for the metallurgy industry, according to a mortality table, an employee turnover rate, a discount rate and taking into account regular wage increases.

EXEL Industries has applied the “Corridor” method since the 2016 fi scal year under the French Accounting Standards Authority’s (ANC) recommendation No. c 2013-02 of November c 7, 2013 on the rules for valuing and recognizing pension liabilities and similar bene fi ts. This involves spreading the portion of actuarial gain and loss commitments exceeding 10% of the highest value between the discounted value of the obligation before deduction of plan assets and the value of the plan assets, over the forecast residual duration of the commitments.

EXEL Industries Group I 2019 Universal Registration Document

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