RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

Impairment tests as of December 31, 2017

Cash flows beyond the 3 year period are extrapolated at a growth rate of 1%. 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.

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.

As of December 31, 2017, Rubis had sys tematic ally tes ted all goodwill determined definitively on the date the tests were performed using the discounted future cash flow method.

The following discount rates are used:

CGU

2016 rate

2017 rate

Bulk liquid Storage business (Europe)

between 5.0 and 8.6% between 4.9 and 8.5% between 4.0 and 7.3% between 4.8 and 6.9% between 5.3 and 12.4% between 5.2 and 11.5% between 5.3 and 12.9% between 5.2 and 11.2% between 5.3 and 12.9% between 5.2 and 11.2% generate recoverable amounts for capital employed below net book value for the 5 CGUs mentioned above. Similarly, a 5% decrease in discounted future cash flows would not change the results of the tests for the Group’s 5 CGUs.

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

Support and Services business (Caribbean)

perpetual growth rates, as well as sensitivity testing allowing for a +/-1% variation in the perpetual growth rate and a +/-1% variation in the discount rate. A 1% increase in the discount rate, or a 1% decrease in the growth rate, would not

These tests revealed no impairment as of December 31, 2017. Sensitivity of impairment tests Impairment tests are based on assumptions used to determine the discount and

4.3 INTANGIBLE ASSETS

ACCOUNTING POLICIES Intangible assets are accounted for at their acquisition cost.

Intangible assets with a finite useful life are amortized according to the straight-line method for the periods corresponding to their expected useful lives and are subject to an impairment test whenever events or changes in circumstances indicate that their book values may not be recoverable. Intangible assets mainly include concessions, patents and similar rights, and in particular Rubis Terminal’s port lease rights in the amount of €2,319 thousand. Rubis Terminal uses land for its operations under concession from the Independent Ports of Rouen and Dunkirk measuring a surface area of 203,146 m 2 . These rights were valued according to existing agreements. This intangible asset with an indefinite useful life is subject to impairment testing in the same way as goodwill, as described in note 4.2.

Foreign exchange differences

Gross value (in thousands of euros)

Changes in consolidation

12/31/2016

Increases

Decreases Reclassifications

12/31/2017

Port lease rights (Rubis Terminal)

2,319

2,319

Other concessions, patents and similar rights

18,008

3,206 1,141 9,583

1,355

(887)

(290)

(530) (146) (587)

20,862

Lease

412

144

103 467 280

1,654

Other intangible assets

23,435 44,174

9,015

(682)

41,231 66,066

TOTAL

13,930

10,514

(1,569)

(1,263)

Foreign exchange differences

Depreciation (in thousands of euros) 2017 Registration Document I RUBIS 198 Other intangible assets TOTAL NET VALUE

Changes in consolidation

12/31/2016

Increases

Decreases Reclassifications

12/31/2017

Other concessions, patents and similar rights

(4,624) (16,645) (21,269)

(2,011)

(1,379) (1,496) (1,496)

779 682

221 199 420

(7,014) (17,921) (24,935)

(605)

(56) (56) 224

(2,616) 11,314

1,461

22,905

7,639

(108)

(843)

41,131