EXEL Industries // 2020 Universal registration document

Separate fi nancial statements 6

Notes to the parent company fi nancial statements

12. 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 fiscal year

12.1

Reversals (used provision)

Reversals (not used) 09/30/2020

Separate fi nancial statements (in € thousands)

09/30/2019 Allowance

Lawsuit contingency provisions for subsidiaries

554

(110)

444

Provisions for subsidiary losses

146

146

Provisions for restructuring

102

(89)

13

Provisions for retirement bene fi ts

75

16

91

Provision for fraud

88

88

Provisions for foreign exchange losses

99

1,336

(99)

1,336

TOTAL

976

1,441

(298)

-

2,119

12.2. Retirement severance benefits 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. 2013-02 of November 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. At the end of the fi scal year, the provision for severance payments amounted to €91 thousand, broken down as follows:  Liabilities/pension obligations – excluding social security contributions: €79 thousand  + Social charges (45% of liabilities) €36 thousand  - Unrecognized actuarial gains and losses -€24 thousand = Total provision (including social security charges) €91 thousand

12.3. Other provisions for contingencies and expenses Aprovision for risks in subsidiary companies continues on the balance sheet in the amount of €444 thousand. These provisions were recorded in the parent company’s fi nancial statements to protect the subsidiaries’ interest in ongoing disputes and legal proceedings. In addition, the restructuring provision set aside last year in an amount of €102 thousand to cover the expenditures of consulting services relating to the restructuring of the Agricultural Spraying business unit was reversed in the amount of €89 thousand. At the end of the fi scal year, the amount of the provision was €13 thousand. Advances to executive o ffi cers No advances or loans were granted to executive officers for the period under review. Related-party transactions The Company carries out transactions with related parties that are not of a material nature, or are concluded on normal terms, or excluded from the scope of application of the French accounting standards authority (ANC) Regulation Nos. 2010-02 and 2010-03. 13. 14.

EXEL Industries group I 2020 Universal Registration Document

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