Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements Vetoquinol Universal Registration Document 2020 Financial report 89 6 WACC rates range from 8.2% to 13.6% depending on the CGU; • Perpetual growth rates have been set according to the country in which the CGU is located and vary from 1.4% to 4.0% depending on the country. A summary table for the CGUs where the amount of goodwill is significant sets out the main assumptions and presents the main sensitivities. The €18.6 million impairment expense recognized in 2020 following impairment tests carried out on fixed assets corresponds to goodwill impairment of the Farmvet Systems CGU and the Brazilian CGU; this expense reflects the worsening of the outlook for this CGU in view of the tense and uncertain market condi- tions. No impairment expense was recognized in 2019. No impairment loss was identified for any of the other CGUs. Likewise, an impairment test was conducted on the Equistro trademark, an intangible asset with an indefi- nite life, assuming sales growth to infinity of 1.6% and a 8.0% discount rate. On the basis of this test, no impair- ment was found. Sensitivity testing based on a deviation of +/-1% in the discount rate resulted in no material negative adjust- ments as of December 31, 2020 and 2019. CGU Amount of Goodwill in €000 at the end of December 2020 Amount of Unamortized trademarks in €000 at the end of December 2020 Other intangible assets incl. Products- Proprietary Total intangible assets + goodwill on the balance sheet Estimated recoverable Amount (RA) based on value in use Difference in % between NBV and recoverable value Perpetual growth rate Impact in % on RA if the perpetual growth decreases 1% Discount rate (WACC) used Impact in % on RA if the WACC increases +1% Vetoquinol GmbH 1,705 8,863 119 10,686 66,335 83.9% 1.6% -3% 8.0% -4% Vetoquinol India 7,923 4,041 352 12,317 33,341 63.1% 4.0% -8% 12.9% -11% Vetoquinol Brazil 8,087 0 10,224 18,311 25,151 27.2% 3.3% -8% 13.6% -15% Vetoquinol USA 22,561 0 15,862 38,422 339,746 88.7% 2.2% -11% 8.9% -14% Vetoquinol SA 14,403 6,633 125,021 146,056 321,833 54.6% 1.6% -12% 8.2% -15% Vetoquinol Canada 9,832 0 419 10,251 137,081 92.5% 2.0% -13% 8.3% -16% Selection subtotal 64,510 19,537 151,997 236,044 923,486 74.4% -11% -14% Other subsidiaries 15,349 0 3,459 18,808 256,255 92.7% TOTAL ASSETS 79,858 12,537 155,456 254,851 1,179,741