Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 100 Vetoquinol Universal Registration Document 2020 Financial report 6 6.5.32.2 Retirement bonuses A retirement bonus system has been established for the Vetoquinol sites in France, Poland and Italy. In France, employees qualify for a retirement bonus (“Indemnités de Fin de Carrière”) under the national collective bargaining agreement for production and sale of pharmaceutical, parapharmaceutical and veterinary products. The sen- sitivity analysis based on a deviation of +/- 0.25% in the discount rate did not result in any material (+/- €228,000) adjustments to the commitment. • Changes in the corresponding liability are as follows: €000 Dec 31, 2020 Dec 31, 2019 Carrying amount at January 1 7,209 6,295 Expenses recognized in the income statement 836 710 Actuarial gains and losses recognized in other comprehensive income 78 780 Contributions paid (219) (219) Reclassifications (49) (147) Benefits paid from the fund (217) (213) Exchange differences (20) 3 New liabilities arising from acquisitions - - Carrying amount at December 31 7,618 7,209 • The following amounts were posted to the income statement for the year: €000 Dec 31, 2020 Dec 31, 2019 Cost of services rendered during the year 710 482 Financial cost 48 161 Cost of past services - - Actuarial gains and losses recognized in the income statement 78 67 TOTAL 836 710 • The main actuarial assumptions applied in France are as follows: Dec 31, 2020 Dec 31, 2019 Discount rate 0.30% 0.70% Salary increase rate 2.70% 2.90% Social security contribution rate 45.40% 45.40% Mortality table TF-TH 2000-2002 Staff turnover Based on age range