RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

5.9 OTHER FINANCIAL INCOME AND EXPENSES

ACCOUNTING POLICES Transactions denominated in foreign currencies are converted by the subsidiary into its operating currency at the rate applicable on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are converted at the exchange rate in effect at the closing date of each accounting period. The corresponding foreign exchange differences are recorded in the income statement under “Other financial income and expenses”.

12/31/2019

12/31/2018 (1)

(in thousands of euros)

Foreign exchange losses Foreign exchange gains

(30,329) 19,164

(24,138) 14,915

Other financial income and expenses

1,246

172

TOTAL

(9,919)

(9,051)

(1) The 2018 income statement was restated in accordance with IFRS 5 (see note 3.3).

5.10 INCOME TAX

5.10.1 INCOME TAX ON FRENCH TAX GROUP COMPANIES Current income tax expense

This reduction will be made in successive steps depending on sales revenue. The Group will take full advantage of this measure starting in 2022. IFRS require that deferred taxes be measured using the tax rate in effect at the time of their probable use. This measurement will be updated at each balance sheet date. The impact on the 2019 result is not material.

thus increased by 1.1%. As a result, income from the French tax consolidation group is

Current income tax expense corresponds to the amount of income tax payable to the tax authorities for the fiscal period, in accordance with applicable regulations and tax rates in effect in France. The base tax rate in France is 33.33%. The Social Security Finance Act No. 99- 1140 of December 29, 1999 established an additional tax of 3.3% of the base tax payable; the legal tax rate for French companies was

taxed at a rate of 34.43%. Deferred tax liabilities

The deferred income tax liabilities is determined using the method described in note 4.6. The 2018 Finance Act contains a gradual reduction in the rate of income tax to 25.83% in 2022 for all companies.

5.10.2 RECONCILIATION BETWEEN THEORETICAL INCOME TAX APPLICABLE IN FRANCE AND ACTUAL INCOME TAX EXPENSE 12/31/2019 (in thousands of euros) Income Tax Rate INCOME AT THE NORMAL RATE 369,970 (127,381) 34.43% Geographic impact 60,811 -16.4% Impact of decrease in tax rate in France (32.02%) 559 -0.2% Distribution tax (share of cost and expenses, withholding tax) (8,229) 2.2% Tax credit 1,036 -0.3% Permanent differences 38 0.0% Effect of changes in rate (1,421) 0.4% Additional tax (1,122) 0.3% Other 206 -0.1% INCOME BEFORE TAX AND SHARE OF NET INCOME FROM JOINT VENTURES 369,970 (75,503) 20.4% Share of net income from joint ventures INCOME BEFORE TAX 369,970 (75,503) 20.4%

260 i Rubis 2019 Universal Registration Document