Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements Vetoquinol Universal Registration Document 2020 Financial report 87 6 6.5.18.2 Diluted earnings per share Diluted earnings per share is calculated by adjusting net income attributable to holders of common shares divided by the weighted average number of shares outstanding over the year for the impact of all common shares having a potentially dilutive effect. At December 31, 2020, just as at December 31, 2019, potentially dilutive instruments include bonus shares granted. Dec 31, 2020 Dec 31, 2019 Net income attributable to holders of common shares (€000) 19,221 28,589 Expenses on grants of bonus shares 115 - Earnings used to calculate diluted earnings (€000) 19,336 28,589 Weighted average number of shares outstanding over the year 11,881,902 11,881,902 Treasury shares at end of period (direct holding) (53,240) (47,994) Treasury shares at end of period (liquidity contract) (2,505) (2,084) Adjusted weighted average number of shares outstanding over the period 11,826,157 11,831,824 Dilutive effect of bonus share grants 5,500 - Number of shares including dilutive effect 11,831,657 11,831,824 Diluted earnings per share (€) 1.63 2.42 6.5.20 Goodwill 6.5.20.1 Goodwill Goodwill is valued at cost less accumulated impairment losses. See Note 6.5.3.3. for the initial valuation of good- will. Under IAS 36, goodwill is allocated to cash-generating units for purposes of impairment testing as described below. Goodwill is subject to impairment testing at least once a year – and more frequently if there are any indi- cators of impairment – and is carried at cost less any accumulated impairment losses. Impairment losses are irreversible. €000 Dec 31, 2020 Dec 31, 2019 At January 1 Gross value 129,440 80,701 Opening book value 129,440 80,701 Acquisitions related to business combinations 0 52,603 Impairment losses recognized in the income statement (18,618) - Reclassifications/allocation of goodwill (20,195) (2,833) Exchange differences, net (10,769) (1,030) At December 31 Gross value 79,858 129,440 Closing book value 79,858 129,440 6.5.20.2 Impairment tests - Measurement of PP&E and intangible assets In accordance with IAS 36, all cash-generating units (CGUs) containing goodwill were tested for impairment. The CGUs defined for Vetoquinol Group are the fol- lowing companies: Vetoquinol USA, Vetoquinol Canada, Vetoquinol France, Vetoquinol UK, Vetoquinol Belgium, Vetoquinol Switzerland, Vetoquinol Czech Republic, Veto- quinol Austria, Vetoquinol Poland, Vetoquinol Ireland, Vetoquinol Germany, Vetoquinol Italy, Vetoquinol Scan- dinavia, Vetoquinol India, Vetoquinol Asia ,Vetoquinol Australia, Vetoquinol Brazil and Farmvet Systems.