EXEL Industries // 2020 Universal registration document

Consolidated fi nancial statements 5

Notes to the consolidated fi nancial statements

Non-current provisions for contingencies and expenses

Consolidated (in € thousands)

09/30/2019

09/30/2020

Revenue-related litigation and expenses for work in progress

1,510

354

Contractual customer warranties

11,562

12,369

Provisions for restructuring

2,894

4,446

Retirement commitments including social charges

28,376

27,777

Other miscellaneous employee-related commitments (excluding redundancy plans)

615

563

Tax contingencies and provisions

71

299

Sundry

944

1,264

TOTAL

45,971

47,072

Current provisions for contingencies and expenses

Consolidated (in € thousands)

09/30/2019

09/30/2020

Revenue-related litigation and expenses for work in progress

1,774

4,348

Provisions for restructuring

7,528

10,490

Tax contingencies and provisions

-

-

Other employee-related & miscellaneous commitments

1,588

1,661

TOTAL

10,889

16,499

Main assumptions used to estimate retirement commitments at September 30, 2020: For French companies  Growth rate of wages (including in fl ation): 2% (the same as in 2019).  Discount rate used (including in fl ation): 0.60% ( vs. 0.49% in 2019).  Retirement age: 65 years.  Life expectancy: Mortality table TF 00-02.  Employee turnover rate: based on the demographic data speci fi c to each Group entity and actual experience.  Social charges rate of 45% applied to total liabilities.  Average weighted duration of the plans: 14 years. With regard to the English company HOZELOCK Ltd.  Growth rate of pension payments: 1.75% - 5.0%.  Discount rate used: 1.6% ( vs. 1.9% in 2019).  Rate of in fl ation: 2.75% (3.0% in 2019)  Retirement age: 63 years.  Life expectancy: 107% of the S2PA Mortality Table.  Average weighted duration of the plans: 18 years. The cost for the fi scal year consists of:  expenses in connectionwith retirement liabilities recognized under “current operating income”;  interest recognized under “net fi nancial income/(expense)”;  impacts from amending the plan, recognized in “non-recurring income and expense” (note 20).

13.3 Pension liabilities Depending on the country, Group employees are eligible for de fi ned contribution and de fi ned bene fi t retirement plans. De fi ned contribution plans Under this type of retirement plan, the Company only pays contributions to a body (private or public) that is independent from the Company andwhich is then responsible for paying out retirement bene fi ts to the Company’s retirees. Personnel expenses and contributions payable are recognized by the Group when they are incurred. De fi ned bene fi t plans This concerns:  the Group’s French employees, who receive a lump sum severance payment on retirement;  employees of the British company HOZELOCK Ltd., which has set up a pension scheme whose assets are managed by an Independent Trustee. HOZELOCK Ltd.’s pension scheme was closed to newmembers on April 6, 1997 and the rights of existing members were frozen on April 6, 2001. For de fi ned bene fi t plans, the Group recognizes a provision for pension liabilities corresponding to the amount of liabilities calculated by independent actuaries, deducting plan assets managed by external funds (insurance companies or pension funds).

EXEL Industries group I 2020 Universal Registration Document 72