RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

IMPAIRMENT OF FIXED ASSETS Goodwill and intangible assets with an indefinite useful life are subject to an impairment test at least once per year, or more frequently if there are indications of a loss in value, in accordance with the requirements of IAS 36 “Impairment of assets”. Annual tests are performed during the fourth quarter. The impairment test consists of comparing the asset’s net book value against its recoverable value, which is its fair value minus disposal costs or its value in use, whichever is higher. The value in use is obtained by adding the discounted values of anticipated cash flows generated from the use of the asset (or group of assets) and from its final disposal. For this purpose, fixed assets are grouped into Cash-Generating Units (CGUs). A CGU is a uniform set of assets (or group of assets) whose continued use generates cash inflows that are largely independent of cash inflows generated by other groups of assets. The fair value minus disposal costs corresponds to the amount that could be obtained from the disposal of the asset (or group of assets) under normal market conditions, minus the costs directly incurred to dispose of it. When the recoverable value is lower than the net book value of the asset (or group of assets), an impairment, corresponding to the difference, is recorded in the income statement and is charged primarily against goodwill. Impairments recorded in relation to goodwill are irreversible.

Translation differences

Changes in consolidation Reclassifications (1)

12/31/2019

12/31/2018

(in thousands of euros)

Bulk liquid Storage business (Europe)

57,446 238,310 281,231 403,620 113,747

(57,446)

Petroleum products Distribution business (Europe) Petroleum products Distribution business (Africa) Petroleum products Distribution business (Caribbean)

25,658 212,025

2,763

266,731 493,701 370,531 114,057

445

(33,089)

Support and services activity

310

GOODWILL

1,094,355

237,682

(57,446)

(29,571)

1,245,020

(1) Of which reclassification into group of assets held for sale, for an amount of €57.5 million (see note 3.3).

The changes in scope recorded during the period (see note 3) are as follows: • initial consolidation of the KenolKobil Group in the amount of €212 million; • acquisition of new LPG activities in the Azores and Madeira in the amount of €26 million. Impairment tests as of December 31, 2019

As of December 31, 2019, Rubis had systematically tested all goodwill determined definitively on the date the tests were performed using the discounted future cash flow method. Recoverable amounts are based on the value in use calculation. Value in use calculations

are based on cash flow forecasts using the financial budgets approved by Management at year-end, covering a period of 3 years. The primary assumptions used in the calculation relate to trading volumes and market prices. Cash flows beyond the 3-year period are extrapolated at a growth rate of 2%.

The discount rate used, based on the concept of weighted average cost of capital (WACC), reflects current market assessments of the time value of money, and the specific risks inherent in each CGU. The following discount rates are used:

2019 rate

CGU

2018 rate

Bulk liquid Storage business (Europe)

between 3.7 and 9.4% between 4.5 and 9.7% between 4.5 and 6.7% between 4.5 and 8.6% between 4.9 and 16.1% between 5.5 and 16.8% between 4.9 and 14.0% between 5.5 and 17.9% between 4.9 and 14.0% between 5.5 and 17.9%

Petroleum products Distribution business (Europe) Petroleum products Distribution business (Africa) Petroleum products Distribution business (Caribbean)

Support and services activity

These tests revealed no impairment as of December 31, 2019.

236 i Rubis 2019 Universal Registration Document