Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements Vetoquinol Universal Registration Document 2020 Financial report 85 6 Reconciliation of theoretical tax, at the French statutory tax rate, to effective tax is as follows: €000 Dec 31, 2020 Dec 31, 2019 Net income for the year 19,229 28,247 CIR restatement (3,184) (3,848) CVAE restatement as per IAS 12 (1,455) (1,200) Non-recurring items - GW impairment 18,618 - (Earnings)/loss of associates (286) (30) Income tax expense 16,635 12,464 Income before tax adjusted for tax credits 49,558 35,633 Theoretical tax at 28.92% (32.02% in 2019) 14,334 11,410 Non-deductible expenses and non-taxable income 1,383 746 Impact of change in tax rate 188 1,586 Change in tax losses b/fwd and c/fwd 1,950 438 Tax rate differences for foreign companies (2,815) (2,895) Other taxes (under IAS 12) (*) 1,965 1,245 Impact of reduced rate (33) (28) Taxes with no tax base (tax credits, withholding taxes, etc.) (201) (106) Miscellaneous (137) 69 Effective tax 16,635 12,464 Effective tax rate 33.57% 34.98% (*) Impact caused by restatement of taxes akin to CVAE. Analysis of movements in deferred tax assets during the year: €000 Dec 31, 2020 Dec 31, 2019 Opening balance 9,005 9,846 Recognized in the income statement (341) (1,385) Recognized in other comprehensive income 23 217 Changes in consolidation scope - - Reclassifications 1,542 318 Exchange differences (419) 9 Closing balance 9,810 9,005 Analysis of movements in deferred tax liabilities during the year: €000 Dec 31, 2020 Dec 31, 2019 Opening balance 7,775 7,370 Recognized in the income statement (840) (554) Recognized in other comprehensive income 0 - Changes in consolidation scope - - Changes in deferred tax liabilities via goodwill 698 472 Reclassifications 1,541 318 Exchange differences (744) 171 Closing balance 8,431 7,775 Unrecognized deferred tax assets arising from 2020 tax losses reported by subsidiaries amounted to €2.1 million (2019: €1.5 million). Pursuant to IAS 12 and subject to certain conditions, a business may offset its deferred tax assets and liabilities. This was done in the table above on the “Reclassifica- tions” line.