Exacompta Clairefontaine : H1 REPORT 2020

HALF-YEAR

FINANCIAL REPORT

30 June 2020

SA with share capital of €4,525,920 - Registered office 88480 ÉTIVAL-CLAIREFONTAINE

RCS EPINAL: B 505 780 296	SIRET No.: 505 780 296 000 16	NAF: 7010Z
Tel. [phone]	Fax [phone]	Website www.exacomptaclairefontaine.fr

Contents:

page

Half-year activity report	3
Half-year consolidated financial statements	8
Certification of the half-year financial report	29
Statutory auditors' report
on the half-year financial report	30

2

Board of Directors

François Nusse, Chairman and Chief Executive Officer Dominique Daridan

Louise de l'Estang du Rusquet

Céline Nusse

Charles Nusse

Frédéric Nusse

Guillaume Nusse

Jérôme Nusse

Monique Prissard

Emmanuel Renaudin

Caroline Valentin

Statutory Auditors

BATT AUDIT, 54000 Nancy

Pascal François

ADVOLIS, 75002 Paris

Patrick Iweins - Hugues de Noray

3

To the Shareholders,

1. REVIEW AND APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

(€000)	H1 2020	H1 2019
Income from continuing activities	313,515	307,877
(Revenue)
Operating income/(loss)	(3,013)	3,955
Net income/(loss) before tax	(4,148)	3,880
Net income/(loss) after tax	(3,530)	3,219
Group share	(3,005)	3,219

The Group consolidated results for first half 2019 do not include the results of the companies acquired in spring 2019 (Eurowrap, Biella and their subsidiaries). These results were consolidated as at 31 December 2019.

Two new companies were consolidated in 2020: Fizzer, in which the Group holds a 60% stake, and Papeteries du Coutal.

First half 2020 was marked by lockdown measures and a slowdown in Group business mainly affecting the processing division. Events related to the COVID-19 crisis did not prompt the Group to close any of its facilities.

The Group implemented appropriate health precautions and working arrangements in order to curb the spread of the virus. The Group made limited use of the assistance offered to businesses during lockdown, including furlough schemes.

In financial terms, the Group decided not to make use of the PGE state-guaranteed loan scheme offered by the French government, but took advantage of the opportunity to defer loan repayments totalling €10.9 million at 30 June 2020. Net debt is not impacted by these deferrals.

1.1 PAPER PRODUCTION

Production of printing and writing papers in Western Europe fell 12% versus first half 2019 (Cepi statistics).

The second quarter was marked by a slump in business among office suppliers and printers, while the tonnage of paper sold by our four paper mills fell nearly 8%. We managed to keep production going thanks to our storage capacity and in-house processing operations. Our output includes a growing proportion of recycled paper. Raw material costs remained stable and we suffered no significant interruptions to supplies.

1.2 PROCESSING

According to GfK market research consultants, first half sales of manufactured papers and filing articles in France fell 15% and 22% respectively year-on-year.

The total volume of sales to offices and households fell sharply from March to June, with wide discrepancies between specialty products. Production of articles for the start of the school year and end- of-year period was only marginally impacted by the epidemic.

4

1.3 FINANCIAL POSITION - DEBT

First half 2020 revenue amounted to €313,515,000. At 30 June 2020, gross borrowings stood at €248,424,000 including €32,310,000 of financial liabilities arising from the capitalisation of leases pursuant to IFRS 16. Consolidated shareholders' equity was €408,487,000.

The Group has negotiated additional lines of credit with its banks totalling €30 million. At the interim balance sheet date, no commercial paper had been issued out of a global programme of €125 million. With gross cash and cash equivalents of €97,666,000 at 30 June 2020, Group net borrowings amounted to €150,758,000, practically unchanged from 30 June 2019.

1.4 SHARE AND SHAREHOLDER INFORMATION

The share listed at €115 on 2 January 2020 and €96.50 on 26 June 2020. The number of shares traded during first half 2020 was 10,420.

The parent company does not have a share buyback programme and there are no employee shareholders.

The capital of the parent company is composed of 1,131,480 shares, and did not change during the year. A double voting right is granted to each fully paid-up share which has been registered for at least two years in the name of the same shareholder.

Our principal shareholder, Ets Charles Nusse, held 910,395 shares with double voting rights, representing 80.46% of the capital, at 30 June 2020.

Financière de l'Echiquier, a minority shareholder, crossed the 5% ownership threshold in 2005.

2. ACQUISITIONS

• Consolidated in first half 2020
  On 31 October 2019 and 18 December 2019 respectively, the Group acquired:
• • the entire share capital of Papeteries du Coutal, a company operating in the processing sector;
  • a 60% equity stake in Fizzer, a company specialising in digital images, with a call option on the rest of the share capital.

These two companies posted respective first half 2020 revenue of €1.5 million and €2.2 million.

Given the proximity of the acquisition dates to the 31 December 2019 closing date, both equity investments were carried as financial assets on the balance sheet. They were included in the Group consolidated financial statements from 1 January 2020.

Goodwill on consolidation amounted to €0.6 million for Papeteries du Coutal and €4.2 million for Fizzer.

5

• Results at constant consolidation scope

(€000)	H1 2020 at constant	H1 2019
conso.*
Income from continuing activities	267,213	307,877
(Revenue)
Operating income/(loss)	(918)	3,955
Net income/(loss) before tax	(2,011)	3,880
Net income/(loss) after tax	(1,520)	3,219
Group share	(1,520)	3,219

• Constant consolidation scope excludes the companies acquired in spring 2019 (Eurowrap, Biella and their subsidiaries), not consolidated in first half 2019, and the two companies consolidated from the beginning of 2020.

3. OUTLOOK

3.1 RISK FACTORS

Risk factors related to economic activity and financial risks are of the same kind as those described in Section 2.4 of the 2019 Annual Report. There were no material changes during first half 2020. Provisions for financial risks at 30 June 2020 are presented in Note 2.6 to the consolidated half-year financial statements.

3.2 IMPACT OF THE COVID-19 EPIDEMIC

While early year projections fuelled hopes of an encouragingly positive first half, from 15 March onwards Group units had to cope with the COVID-19 epidemic, implement the required measures to protect their employees and adjust operations accordingly. Shutdowns, fragmented production, tumbling sales and rising inventories led to a reversal of the trend versus first half 2019.

3.3 GENERAL OUTLOOK

While sales returned to 2019 levels in Q3 2020, the recovery failed to offset the loss of business in spring due to the pandemic and lockdown measures. Furthermore, customer demand is currently focused on the short term and it is still too early to have a clear idea of the impact the crisis will have on consumer habits.

Full-year operating income is expected to be well below the 2019 figure of €19,828,000.

4. NON-FINANCIAL PERFORMANCE DECLARATION

The 2019 declaration of non-financial performance was published prior to the Exacompta Clairefontaine Group shareholders' meeting on 27 May 2020. It provides information on the manner in which the Group takes into account the social and environmental consequences of its activity as well as its commitments to society in favour of sustainable development.

Information is regularly updated and is published annually. The following information supplements and updates the information provided in this declaration.

6

• Gross CO2 emissions at the Group's French paper mills Changes in CO2 emissions

	Site		CO2 emissions (tonnes)
		H1 2020	H1 2019
	CLAIREFONTAINE	39,923	40,482
	MANDEURE	4,550	4,958
	EVERBAL	663	721
	Total	45,136	46,161

Change in the emissions to production tonnage ratio

	Site		Ratio (in kg CO2/tonne of gross paper production)
		H1 2020	H1 2019
	CLAIREFONTAINE	398	407
	MANDEURE	266	264
	EVERBAL	27	30
	Overall ratio	318	324

Site CO2 emissions decreased slightly over the first half of 2020, compared to the same period in 2019. Efforts to reduce fossil fuel consumption continued.

This reduction is not due to the recent health crisis, as production continued virtually as normal throughout lockdown. In terms of gross tonnage, production fell by only 0.44% in the first half.

• Further severe drought in 2020

2019 was marked by particularly low rainfall and 2020 saw the recurrence of a drought of similar scale. Such episodes have become increasingly frequent over the past few years.

These developments have prompted environmental authorities to monitor the dams and factory canals that supply water to the paper mills. A minimum flow must be maintained in rivers to ensure that the ecosystem continues to function properly.

Plant managers must brainstorm solutions to safeguard their supply of industrial water.

7

Exacompta Clairefontaine S.A.

Consolidated financial statements for the year ended

30 June 2020

Half-year consolidated financial statements

1.	Consolidated financial statements	9
2.	Notes to the consolidated half-year financial statements	15
3.	Segment information	24
4.	Consolidated entities	27

8

1. Consolidated financial statements

Consolidated balance sheet

	€000	30/06/2020		31/12/2019		Notes
	NON-CURRENT ASSETS			347,729			352,001
	Intangible assets - Goodwill	42,181	37,383	(2.1.1)
	Intangible assets	16,877	13,922	(2.1.1)
	Property, plant and equipment	282,782		290,010	(2.1.2)
	Financial assets	4,902		9,764	(2.1.3)
	Deferred taxes	987		922	(2.4)
	CURRENT ASSETS			507,284			514,310
	Inventories	241,087		207,341	(2.2.1)
	Trade and other receivables	162,532		125,121	(2.2.2)
	Advances	2,631		2,114
	Taxes receivable	3,368		484
	Cash and cash equivalents	97,666	179,250	(2.2.3)
	TOTAL ASSETS			855,013			866,311
	SHAREHOLDERS' EQUITY			408,487			419,348
	Share capital	4,526		4,526
	Consolidated reserves	406,805		397,755
	Net income/(loss) - Group share	(3,005)	17,067
	Shareholders' equity - Group share	408,326		419,348
	Minority interests	161		0
	NON-CURRENT LIABILITIES			249,022			221,425
	Borrowings	173,463		142,620	(2.6)
	Lease liabilities (IFRS 16)	24,102	27,470	(2.6)
	Deferred tax liabilities	25,915	25,985	(2.4)
	Provisions	25,542	25,350	(2.5)
	CURRENT LIABILITIES			197,504			225,538
	Trade payables	72,337	71,098
	Borrowings - short term portion	42,650	79,523	(2.6)
	Lease liabilities (IFRS 16) - short term	8,208		9,372	(2.6)
	Provisions	4,450		3,383	(2.5)
	Tax liabilities	40		3,829
	Other payables	69,819	58,333	(2.8)
	TOTAL SHAREHOLDERS' EQUITY AND			855,013			866,311
	LIABILITIES

9

Consolidated income statement

€000		H1 2020	H1 2019
Revenue		313,515	307,877
- Sales of products	306,150	302,564
- Sales of services	7,365	5,313
Other operating income		10,537	3,171
- Reversal of depreciation/amortisation	6,141	272
- Subsidies	814	12
- Other income	3,582	2,887
Change in inventories of finished products and work-in-progress	29,667	15,304
Goods and materials used	(169,348	(166,814)
External expenses	(52,253)	(47,598)
Personnel expenses	(93,609)	(77,985)
Taxes and duties	(7,899)	(7,761)
Depreciation/amortisation	(22,725	(18,981)
Other operating expenses	(10,898)	(3,258)
OPERATING INCOME/(LOSS) - before goodwill impairment		(3,013)	3,955
Goodwill impairment
OPERATING INCOME/(LOSS) - after goodwill impairment		(3,013)	3,955
Financial income	1,660	1,232
Financial expenses	(2,795)	(1,307)
Net financial items		(1,135)	(75)
Income taxes	618	(661)
Net income/(loss) after tax		(3,530)	3,219
Net income/(loss) - minority share		(525)	0
Net income/(loss) - Group share		(3,005)	3,219
Net income/(loss) for the period	(3,005)	3,219
Number of shares	1,131,480	1,131,480
EARNINGS PER SHARE (basic and diluted)		(2.66)	2.84

Notes

(2.1.2,

2.1.3)

(2.2.1)

(2.1.1,

2.1.2)

(2.1.1)

(2.10)

(2.4, CFS)

(2.3)

10

Comprehensive income statement

	€000	H1 2020	H1 2019
	Net income/(loss)	(3,530)		3,219
	Actuarial gains/losses on post-employment benefits	4		465
	Tax on items not reclassified to profit or loss	(1)	(130)
	Items not reclassified to profit or loss	3		335
	Currency translation differences arising from foreign entities'	(8)	81
	financial statements
	-		-
	Tax on items reclassified to profit or loss
	Items reclassified to profit or loss	(8)		81
	Other comprehensive income	(117)
	Total comprehensive income	(3,652)		3,635
	Attributable to:
	- the Group	(3,127)	3,635
	- minority interests	(525)	0

Statement of changes in consolidated shareholders' equity

€000

Shareholders' equity at 31 December 2018

Dividends distributed

Net income for the period

Items of other comprehensive income

Shareholders' equity at 31 December 2019

Dividends distributed

Net income/(loss) for the period Items of other comprehensive income Reclassification of actuarial gains/losses Put option on Fizzer minority interests Fizzer acquisition - minority interests

Share capital

Additional

paid-in

capital

Reserves

and

consolidated

Actuarial

gains/losses

Currency

translation

adjustments

Total - Group

share

Total -

minority

interests

Total

shareholders

' equity

4,526	92,745	306,607		(1,609)	402,269	-	402,269
		(3,055)			(3,055)		(3,055)
		17,067			17,067		17,067
			(252)	3,319	3,067		3,067
4,526	92,745	320,619	(252)	1,710	419,348	-	419,348

(3,395)			(3,395)		(3,395)
(3,530)			(3,005	(525)	(3,530)
(117)	3	(8)	(122)		(122)
(252)	252		-		-
(4,500)			(4,500)		(4,500)
686			-	686	686

Shareholders' equity at 30 June 2020	4,526	92,745	309,511	3	1,702	408,326	161	408,487

11

Statement of consolidated cash flows

	€000		H1 2020	H1 2019
	Total consolidated net income/(loss)	(3,530)	3,219
	Elimination of non-cash and non-operating expenses and income:
	∙ Depreciation, amortisation and provisions	24,068	16,355
	∙ Change in deferred taxes
	(933)	(736)
	∙ Post-tax gains on asset sales
	(212)	(28)
	∙	Currency translation adjustments
	(8)	81
	∙	Other
	(114)	335
	Cash flow of consolidated companies	19,271	19,226
	∙	Change in operating working capital	(58,793)	(47,565)
	∙	Change in income taxes	(31)	1,490
	∙	Income taxes paid	(6,642)	4,492
	(1) Net cash flow from operating activities	(46,195)	(22,357)
	∙	Purchases of fixed assets	(15,801)	(80,754)
	∙	Sales of fixed assets	704	284
	∙	Changes in consolidation - acquisitions	(1,083)
	(2) Net cash flow from investing activities	(16,180)	(80,470)
	∙	Dividends paid	(3,395)	(3,055)
	∙	New borrowings	30,381	20,118
	∙	Loans repaid	(3,358)	(19,427)
	∙	Interest paid	(628)	(459)
	∙	Interest received	211	346
	∙	Lease liability repayments	(4,383)	(4,828)
	(3) Net cash flow from financing activities	18,828	(7,305)
	(1+2+3) Total cash flow	(43,547)	(110,132)
	Opening cash	90,355	77,748
	Closing cash	46,808	(32,384)
	Change in cash	(43,547)	(110,132)

Notes

(2.1.1 to 2.1.3, 2.5)

(2.4)

Balance

sheet

(2.1.1 to

2.1.3)

(Change in

shareholders'

equity)

Change in cash and borrowings due in less than one year

€000	30/06/2020	Change	31/12/2019	30/06/2019
Reported cash and cash equivalents	97,666	(81,584)	179,250	93,765
Bank overdrafts	(6,134)	28,296	(34,430)	(85,119)
Net cash and cash equivalents	91,532	(53,288)	144,820	8,646
Borrowings due in < 1 yr	(44,724)	9,741	(54,465)	(41,030)
Net cash less borrowings due in < 1 yr	46,808	(43,547)	90,355	(32,384)

12

Presentation of the consolidated financial statements

1- General principles - statement of compliance

The EXACOMPTA CLAIREFONTAINE Group consolidated financial statements are prepared in accordance with IFRS (International Financial Reporting Standards), as adopted within the European Union. The Exacompta Clairefontaine Group summary consolidated half-year financial statements were prepared in accordance with IAS 34 - Interim financial reporting. They were approved by the Board of Directors on 17 September 2020.

No changes were made to the accounting rules and methods applied to the 2019 full-year consolidated financial statements.

2- Adoption of new standards

Standards, amendments and interpretations mandatory from 1 January 2020:

• Amendments to IAS 1 and IAS 8 - Definition of "material"
• Amendments to IAS 39, IFRS 7 and IFRS 9 - Interest rate benchmark reform - Phase 1
• Amendments to IFRS 3 - Business combinations - Definition of a business
• Amendment of references to the Conceptual Framework in IFRS standards

These new amendments have no material impact on the half-year financial statements.

The Group did not apply any optional standard, amendment or interpretation as at 30 June 2020.

3- Changes in consolidation scope

The Group purchased:

• the entire share capital of Papeteries du Coutal on 31 October 2019;
• a 60% equity stake in Fizzer with a call option on the rest of the share capital on 18 December 2019.

These two companies posted respective first half 2020 revenue of €1.5 million and €2.2 million.

Given the proximity of the acquisition dates to the 31 December 2019 closing date, both equity investments were carried as financial assets on the balance sheet. They were included in the Group consolidated financial statements from 1 January 2020.

The identifiable assets acquired and liabilities assumed were initially recognised at their acquisition date fair value. The main impact of the fair value recognition of these assets concerned Fizzer intangible assets, including its customer portfolio valued at €2.8 million. After completion of the valuation process, goodwill of €0.6 million and €4.2 million respectively was recognised in respect of these acquisitions.

The acquisition of a major stake in Fizzer is subject to a put option granted to minority shareholders, which may be exercised during Q1 2022, and a call option granted to the Group which may be exercised during Q2 2022. At 30 June 2020, the liability related to the minority interests put option was valued at the estimated option exercise price and is recorded under "Other non-current liabilities". Subsequent changes in the fair value of the liability will be posted to Group shareholders' equity.

The following table shows the provisional purchase price allocation for the two acquisitions:

13

	€000		Fizzer		Coutal		Total
	Price paid in 2019	3,545	1,400	4,945
	Earnout paid in 2020	1,699	305	2,004
	Acquisition cost			5,244			1,705			6,949
	Net book value	(302)	1,106	804
	Fair value net of deferred taxes	2,017	16	2,033
	Ownership interest	60%	100%
	Share of fair value of assets acquired and liabilities			1,029			1,122			2,151
	assumed
	Goodwill			4,215			583			4,798

4- Impact of COVID-19 pandemic

First half 2020 was marked by lockdown measures and a slowdown in Group business mainly affecting the processing division.

In order to make a more accurate estimate of the impact of the crisis, the activity report also presents the main income statement items at constant consolidation scope excluding the impact of subsidiaries acquired in 2019 and 2020.

The Group implemented appropriate health precautions and working arrangements in order to curb the spread of the COVID-19 virus. The Group made limited use of the assistance offered to businesses during lockdown, including furlough schemes.

Events related to the COVID-19 crisis did not prompt the Group to close any of its facilities. A certain level of operation was maintained thanks to the storage capacity of our logistics platforms.

In financial terms, the Group decided not to make use of the PGE state-guaranteed loan scheme offered by the French government, but took advantage of the opportunity to defer loan repayments totalling €10.9 million at 30 June 2020. Net debt was not impacted by these deferrals and currently stands at €150 million. New loans totalling €30 million were taken out during the first half but no drawdowns were made on the Group's lines of credit.

Credit risk remains broadly unchanged: the Group granted extended payment deadlines to customers where required. No material loss was recorded at 30 June 2020.

Amid a constantly changing environment, the Group is adapting its capacities, resources and offering to the market. Given the continuing effects of the pandemic at the start of the second half, coupled with further restrictions imposed by a number of governments, it is difficult to foresee the situation at the end of the year.

Under the particular circumstances surrounding the first half closing date, the Group has not identified any indications of impairment and has therefore not recognised any impairment losses on intangible assets. Likewise, the Group felt no need to record a special provision for risks and uncertainties related to the pandemic in respect of the Group's staff, assets, reputation or ability to meet its commitments.

Costs and support measures related to the impact of the health crisis have not been isolated but have been recorded in accordance with their nature.

14

2. Notes to the consolidated half-yearfinancial statements

2.1 Non-current assets 2.1.1 Intangible assets

					Concessions,
	At 30 June 2020 (€000)		Goodwill		licences,		Other		Total
			trademarks and
					similar rights
	Gross value b/fwd	37,383	46,728	6,724	90,835
	Purchases			555	440	995
	Sales			(585)			(585)
	Changes in consolidation scope	4,798	593	2,800	8,191
	Currency translation adjustments			222	20	242
	Transfers and other			142	666	808
	Gross value c/fwd		42,181		47,655		10,650		100,486
	Amortisation and write-downs b/fwd	0	34,192	5,338	39,530
	Sales			(585)			(585)
	Changes in consolidation scope			181			181
	Amortisation			1,329	738	2,067
	Write-downs
	Reversals
	Currency translation adjustments			216	19	235
	Transfers and other
	Amortisation and write-downs c/fwd		0		35,333		6,095		41,428
	Net book value b/fwd		37,383		12,536		1,386		51,305
	Net book value c/fwd		42,181		12,322		4,555		59,058

Trademarks

"Concessions, licences, trademarks and similar rights" includes trademarks totalling €7,367,000. No impairment was recorded in the first half 2020 financial statements.

Goodwill

Goodwill mainly pertains to digital sector businesses and the Eurowrap group acquired in 2019. Goodwill attached to the companies consolidated in first half 2020 is presented under "Changes in consolidation scope". The segment information shows the breakdown of goodwill by business and geographic segment.

Situation at 30 June 2020

The COVID-19 health and economic crisis, while not constituting an indication of impairment as such, had a material impact on the Group's processing business during Q2 2020:

• Decline in revenue
• Adaptation of production facilities to new health situation
• Limited use of furlough schemes

Despite the challenging circumstances, the Group remains confident in its ability to generate value. Accordingly and in view of the leeway afforded by the impairment tests conducted at 31 December 2019, the Group considers that the loss of business in the second quarter does not undermine the cash flow

15

forecasts used to formulate the CGU business plans at 31/12/2019 and therefore does not call for full impairment testing at 30 June 2020.

However, it seemed appropriate to conduct a simulation on the basis of a degraded scenario for one of the processing CGUs for which the 31/12/2019 testing left limited leeway, in order to corroborate the stance adopted. This simulation basically consisted in (i) revising 2020 financial data in line with the CGU's first half performance, which was impacted strongly by seasonal factors, (ii) reviewing the forward-looking data used for the 31 December 2019 tests, allowing for the additional year lapsed and applying a prudential discount, and (iii) adjusting the discount rate at 30 June 2020.

The results of the simulation led to the same conclusion as at 31 December 2019, thereby corroborating the Group's analysis regarding the lack of indication of impairment at 30 June 2020.

2.1.2 Property, plant and equipment

No changes in useful life leading to a material change in the accounting estimates were identified during the year.

IFRS 16 - Leases

The Exacompta Clairefontaine Group has decided to apply the simplified retrospective approach. The option to measure the right-of-use asset at the value of the lease liability shown on the balance sheet immediately before the date of first-time application was applied for all leases.

Likewise, low-value asset leases were excluded from IFRS 16 restatement.

As it is not possible to determine the interest rates implicit in the leases, the Group uses its incremental borrowing rate to measure the lease liability. It is established by reference to the interest rates of loans, whether taken out or not, that have similar maturities and payment profiles. In particular, it is established based on 7-10 year maturities applicable to real estate leases, which represent almost 90% of Group leases in terms of right-of-use asset value.

The Group is currently reviewing the decision of the IFRS Interpretations Committee of 26 November 2019 but does not foresee any material impact.

Lease categories at 30/06/2020

	€000		Real estate		Industrial		Other		Total
			equipment
	Right-of-use assets	38,136	2,414	3,717	44,267
	Depreciation	9,504	835	1,731	12,070
	Net amount		28,632		1,579		1,986		32,197

Lease liabilities are carried under liabilities on the balance sheet and are presented in Note 2.6.

In the first half 2020 income statement, the depreciation charge on right-of-use assets amounts to €5,434,000 and lease interest payments amount to €61,000.

Leases are aggregated in the tables of changes in property, plant and equipment.

16

	At 30 June 2020 (€000)		Land and		Plant and				Advances and
				Other PP&E		PP&E in		Total
	Incl. IFRS 16 right-of-use assets		buildings		equipment
						progress
	Gross value b/fwd	288,507	533,544	55,501	11,726	889,278
	Purchases	787	2,889	1,464	9,196	14,336
	Sales	(3,207)	(2,846)	(481)			(6,534)
	Changes in consolidation scope	607	2,007	361			2,975
	Currency translation adjustments	797	(10)			8	795
	Transfers and other	2,678	5,104	887	(9,192)	(523)
	Gross value c/fwd		290,169		540,688		57,732		11,738		900,327
	Depreciation and write-downs b/fwd	167,463	389,943	41,703	159	599,268
	Sales	(3,080)	(2,520)	(467)			(6,067)
	Changes in consolidation scope	465	1,783	224			2,472
	Depreciation	7,315	10,890	2,314			20,519
	Write-downs	119	19					138
	Reversals
	Currency translation adjustments	871	45	13			928
	Transfers and other	(1,067)	1,373	(20)			286
	Depreciation and write-downs c/fwd		172,086		401,533		43,767		159		617,545
	Net book value b/fwd		121,044		143,601		13,798		11,567		290,010
	Net book value c/fwd		118,083		139,155		13,965		11,579		282,782

2.1.3 Financial assets

	At 30 June 2020 (€000)		Unconsolidated		Loans		Other receivables		Total
		equity interests
	Gross value b/fwd	34,112	960	1,943	37,015
	Purchases			5	401	406
	Sales	(6,163)					(6,163)
	Changes in consolidation scope	(5,250)			62	(5,188)
	Currency translation adjustments	543			2	545
	Transfers and other	2	(20)	(4)	(22)
	Gross value c/fwd		23,244		945		2,404		26,593
	Write-downs b/fwd	27,216	33	2	27,251
	Purchases/sales
	Changes in consolidation scope
	Write-downs	85					85
	Reversals	(6,162)					(6,162)
	Currency translation adjustments	517					517
	Transfers and other
	Write-downs c/fwd		21,656		33		2		21,691
	Net book value b/fwd		6,896		927		1,941		9,764
	Net book value c/fwd		1,588		912		2,402		4,902

17

Unconsolidated equity interests and other long-term investments are stated at cost if there is no reliable fair value.

Intercompany receivables, loans and other financial assets are valued at amortised cost. The book value is equal to the fair value.

Papeteries du Coutal and Fizzer are consolidated in the first half 2020 financial statements. Other receivables mainly comprise deposits and guarantees totalling €1,591,000.

2.1.4 Table of maturities of other financial assets

At 30 June 2020 (€000)	< 1 year	1-5 years	> 5 years	Total
Loans	77	193	675	945
Other financial assets	180	4	2,220	2,404
Financial assets and receivables	257	197	2,895	3,349

2.2 Current assets

2.2.1 Inventories by type

	At 30 June 2020 (€000)		Raw materials		Work-in-progress		Semi-finished and		Total
				finished goods
	Gross value b/fwd	87,862	22,163	115,718	225,743
	Change	3,300	231	28,378	31,909
	Changes in consolidation scope	292	31	280	603
	Gross value c/fwd		91,454		22,425		144,376		258,255
	Write-downs b/fwd	10,537	1,404	6,461	18,402
	Additions	8,150	829	2,611	11,590
	Reversals	(8,690)	(1,133)	(2,995)	(12,818)
	Changes in consolidation scope
	Currency translation adjustments and other	(2)			(4)	(6)
	Write-downs c/fwd		9,995		1,100		6,073		17,168
	Net book value b/fwd		77,325		20,759		109,257		207,341
	Net book value c/fwd		81,459		21,325		138,303		241,087

2.2.2 Write-downof other current assets

									Changes in
	€000		Write-downs		Additions		Reversals		consolidation		Write-downs
		b/fwd				scope and other		c/fwd
									differences
	Trade receivables	2,246	730	(492)	7	2,491
	Other receivables	241							241
	Total		2,487		730		(492)		7		2,732

18

Maturities of trade and other receivables

€000	< 1 year	1-5 years	> 5 years	Total
Trade and similar receivables	144,515	1,246		145,761
Taxes and social security contributions receivable	13,303			13,303
Other receivables	1,878			1,878
	159,696	1,246		160,942
Impairment				(2,732)
Financial assets				158,210
Prepaid expenses				4,322
Reported trade and other receivables				162,532

2.2.3 Cash and cash equivalents

€000	30/06/2020	31/12/2019	Change
Cash at bank	69,721	116,875	(47,154)
Cash equivalents	27,945	62,375	(34,430)
Total	97,666	179,250	(81,584)

Financial assets held for trading (marketable securities) are assets valued at fair value through profit or loss. The book value of €27,945,000 equals the market value at 30 June 2020. The book value is equal to the fair value.

2.3 Shareholders' equity

The parent company's share capital consists of 1,131,480 shares with a par value of 4 euros each, totalling €4,525,920, and did not change during the period. A double voting right is granted to each fully paid-up share which has been registered for at least two years in the name of the same shareholder.

The Group has not implemented any specific capital management policy. ETABLISSEMENTS CHARLES NUSSE holds 80.46% of the share capital.

2.4 Deferred taxes

The principal sources of deferred taxes are trademarks, regulated provisions, public subsidies, internal profits on inventories and provisions.

Change in deferred taxes

		Newly
€000	31/12/2019	consolidated	30/06/2020	Change
		companies
Deferred tax assets	922	23	987	65
Deferred tax liabilities	25,985	784	25,915	(70)
Net deferred tax	25,063	761	24,928	(135)

19

Breakdown of tax charge

€000	H1 2020	H1 2019
Current tax	(315)	(1,588)
Deferred taxes	933	927
Tax income/(charge)	618	(661)

2.5 Provisions

	€000		Provisions		Changes in						Provisions		Other		Provisions
			consolidatio		Additions		Reversals
		b/fwd					not used		changes		c/fwd
				n scope
	Provisions for pensions	25,350	82		1,501	(1,118)	(312)	39	25,542
	and similar obligations
	Non-current provisions		25,350		82			1,501		(1,118)		(312)		39		25,542
	Provisions for contingent	3,116				1,163	(206)			26	4,099
	liabilities
	Other provisions for	267				96	(12)					351
	charges
	Current provisions		3,383					1,259		(218)				26		4,450

At 30 June 2020, a €1 million contingency provision was recorded in relation to restructuring, not related to COVID-19.

Provisions for pensions and similar obligations consist mainly of provisions for retirement indemnities and are calculated at each balance sheet date.

They are valued (including social security contributions) according to the following main parameters:

• probability of retirement, staff turnover and mortality;
• projected salary increases;
• discounting the resulting liability at 0.67%.

The amounts paid to insurance organisations are deducted from provisions.

Net change in the provision for pensions and similar obligations

	€000	H1 2020	2019
	Liability b/fwd	25,350	23,457
	Cost of services rendered	1,152	2,659
	Financial expense	192	467
	Changes for the period	(1,148)	(1,584)
	 o/w new recruits	19	688
	 o/w departures during the period	(1,167)	(2,272)
	Liability excluding actuarial gains and losses	25,546	24,999
	Actuarial gains and losses under comprehensive	(4)	351
	income
	Liability c/fwd	25,542	25,350

The recorded liability includes €20,007,000 of obligations under the plan applicable to French companies and €5,535,000 under plans applicable to foreign companies.

20

2.6 Bank loans and borrowings

Statement of liquidity risk

€000	< 1 year	1-5 years	> 5 years	Total
Loans from financial institutions	34,279	107,717	36,237	178,233
Lease liabilities	8,208	20,668	3,434	32,310
Other borrowings	68	4,509		4,577
Bank loans and overdrafts	6,134			6,134
Subtotal	48,689	132,894	39,671	221,254
Shareholder loan accounts (credit balance)	2,001		25,000	27,001
Accrued interest	168			168
Total	50,858	132,894	64,671	248,423
Estimated interest to maturity				3,647

Medium and long-term financing excluding IFRS 16 lease liabilities consists of loans negotiated at fixed rates.

The liability related to the Fizzer minority interests put option was valued at the estimated option exercise price and recognised under "Other borrowings" in an amount of €4,500,000.

The fair value of borrowings is equal to the book value.

Change in borrowings

					Non-cash items
	€000
	31/12/2019	Cash flow	Changes in			New leases	Foreign	30/06/2020
				consolidation			exchange
				scope				losses
	Bank loans and overdrafts	34,430	(28,416)	120		-	-	6,134
	Loans from financial institutions	157,986	19,992	180		-	75	178,233
	Lease liabilities	36,843	(5,548)	-		1,045	(30)	32,310
	Total bank borrowings	229,259	(13,972)	300			1,045	45	216,677
	Shareholder loans	29,500	(2,499)	-		-	-	27,001
	Other payables	188	(111)	4,500		-	-	4,577
	Total other borrowings	29,688	(2,610)	4,500			-	-	31,578
	Accrued interest	38							168
	Total borrowings	258,985	(16,582)	4,800			1,045	45	248,423

2.7 Issuance & financial instruments programmes

Commercial paper

Short-term needs are financed by commercial paper issued by Exacompta Clairefontaine. A fixed rate determined at the moment of issue is paid on the commercial paper, which has a maximum term of 365 days.

At the interim balance sheet date, no commercial paper had been issued out of a maximum authorised outstanding amount of €125 million.

21

Lines of credit

Lines of credit are in place with several banks for a total amount of €135 million, with maturities not exceeding five years. Lines of credit are indexed to Euribor and the average commitment fee charged is 0.22%. Drawdowns are charged on the basis of the amount and the maturity date of each line of credit.

The term of drawdowns ranges from ten days to twelve months. No amounts were drawn as at 30 June 2020.

Related covenants are not relevant to the half-year financial statements, as the associated ratios are calculated on the basis of the annual financial statements.

Financial instruments

The Group may use options contracts to hedge forecast transactions, in particular for purchases of raw materials in US dollars which constitute its main exposure to currency risk. The Group implemented no currency hedging arrangements during first half 2020. Other transactions performed to hedge exchange rate risks are non-material.

2.8 Other current liabilities

€000	30/06/2020	31/12/2019
Advances and down payments received	2,349	1,736
Taxes and social security contributions payable	45,808	34,745
Fixed asset payables	2,477	3,892
Other liabilities	17,925	16,575
Deferred income	1,260	1,385
Total	69,819	58,333

2.9 Fair value of financial instruments Accounting classes and fair value

The table below shows the fair value of financial assets and liabilities as well as their book value as recorded in the statement of financial position.

					Assets at		Measured at		Loans and		Total book
	€000		Note		acquisition					Fair value
				FVTPL		receivables		value
					cost
	Unconsolidated equity interests	2.1.3	1,588					1,588	1,588
	Loans	2.1.3					912	912	825
	Other receivables	2.1.3					2,402	2,402	2,402
	Cash and cash equivalents		Assets			97,666			97,666	97,666
	Trade and intercompany receivables	2.2.2					143,270	143,270	143,270
	Total assets				1,588		97,666		146,584		245,838		245,751

22

€000

Loans from financial institutions

Lease liabilities

Other borrowings

Bank loans and overdrafts

Shareholder loan accounts (credit balance)

Amounts payable on fixed assets

Trade payables

Total liabilities

			Fair value of		Other		Total book
	Note			financial			Fair value
		derivatives			value
				liabilities
2.6
		178,233	178,233	178,233
2.6			32,310	32,310	32,310
2.6			4,577	4,577	4,577
2.6			6,134	6,134	6,134
2.6			27,001	27,001	27,001
2.8			2,477	2,477	2,477
	Liabiliti			72,337	72,337	72,337
	es
			-		323,069		323,069		323,069

Ranking of fair values

The table below shows the breakdown of financial instruments recognised at fair value based on their valuation method. The levels are defined as follows:

• Level 1: fair value measured using (unadjusted) prices quoted on active markets for identical assets and liabilities.
• Level 2: fair value measured using observable data, other than the quoted prices included in level 1, for the asset or liability, either directly (prices) or indirectly (derived from prices).
• Level 3: fair value measured using data not based on observable market data.

€000

Note

Level 1

Level 2

Level 3

Assets
Cash and cash equivalents	Assets	97,666	-	-
Liabilities	-	-	-	-

2.10 Financial income and expenses

	€000	30/06/2020	30/06/2019
	Equity interests and income from other financial assets	-	2
	Income from other receivables and marketable	211	346
	securities
	Other financial income	231	32
	Reversal of provisions and write-downs	84	-
	Foreign exchange losses	1,134	852
	Total financial income	1,660	1,232
	Increase in provisions and write-downs	85	21
	Interest and financial expenses	689	540
	Foreign exchange losses	2,021	746
	Total financial expenses	2,795	1,307

23

2.11 Off-balance sheet commitments

• Greenhouse gas emission allowances

The quantities allocated for 2020 amount to 62,160 tonnes, while first half CO2 emissions totalled 45,136 tonnes.

There are no more allowances due for phase 3, which ends in 2020.

The number of allowances due for phase 4 covering the 2021-2030 period is not yet known.

• Sureties and guarantees

Exacompta Clairefontaine jointly and severally guarantees payment to Exeltium of all liabilities in respect of purchases of blocks of electricity contracted by Papeteries de Clairefontaine.

2.12 Related parties

Group companies benefit from the leadership provided by Ets Charles Nusse and pay a fee equal to 0.6% of the added value for the previous year.

Manufacturing, logistics and office facilities are leased to certain Group companies on arm's length terms. These leases have been adjusted following the application of IFRS 16.

Transactions carried out by the Group with Etablissements Charles Nusse.

€000	30/06/2020	30/06/2019
(6 months)	(6 months)
Balance sheet
Current account balances:
Interest-bearing debt	25,000	25,000
Short-term portion of interest-bearing debt	2,000	8,000
Income statement
Financial expenses	75	137
Fees	721	645
Leases excluding expenses	3,487	3,403

3. Segment information

As in the financial statements, segment information is presented for the prevailing consolidation scope at each balance sheet date.

In the processing division, the H1 2019 consolidation scope did not include Eurowrap, Biella and their subsidiaries. Papeteries du Coutal and Fizzer were consolidated for the first time in the first half 2020 financial statements.

Correspondence with the consolidated balance sheet:

• "Other assets allocated" includes inventories and advances;
• "Unallocated assets" consists of tax receivable and deferred tax assets.

24

• Segment information by business - 30/06/2020 (6 months)

	€000		Paper		Processing	Inter-segment		Total
			transactions
	Segment income statement
	Revenue	130,464		248,473			(65,422)		313,515
	Depreciation/amortisation (net of	6,177		10,407					16,584
	reversals)
	Write-downs and provisions	(132)		319					187
	Operating income/(loss) (excl. goodwill			9,896			(12,484)			(425)			(3,013)
	impairment)
	Goodwill impairment
	Segment assets
	Net PP&E and intangible assets	113,693		185,966					299,659
	o/w capex	5,378		8,907					14,285
	Goodwill				42,181					42,181
	Trade receivables	42,130		132,098			(30,958)		143,270
	Other receivables	2,774		16,564			(76)		19,262
	Balance sheet total	44,904		148,662			(31,034)		162,532
	Other assets allocated	75,304		171,976			(3,562)		243,718
	Unallocated assets										4,355
	Total assets			233,901			548,785			(34,596)			752,445
	Segment liabilities
	Current provisions	834		3,616					4,450
	Trade payables	25,595		77,719			(30,977)		72,337
	Other payables	18,198		51,680			(59)		69,819
	Unallocated liabilities										40
	Total liabilities			44,627			133,015			(31,036)			146,646

• Segment information by geographic area - 30/06/2020 (6 months)

	€000	France	Europe	Outside Europe	Total
	Revenue	167,944		131,950			13,621		313,515
	Net PP&E and intangible assets	244,749		49,075			5,835		299,659
	o/w capex	12,171		2,014			100		14,285
	Goodwill	31,015		11,166					42,181
	Trade receivables	115,122		26,212			1,936		143,270
	Other receivables	12,932		4,018			2,312		19,262
	Balance sheet total	128,054		30,230			4,248		162,532
	Other assets allocated	206,316		30,322			7,080		243,718
	Unallocated assets								4,355
	Total assets	610,134		120,793			17,163		752,445

25

• Segment information by business - 30/06/2019 (6 months)

	€000		Paper		Processing	Inter-segment		Total
			transactions
	Segment income statement
	Revenue	149,588		226,587			(68,298)		307,877
	Depreciation/amortisation (net of	5,896		12,813					18,709
	reversals)
	Write-downs and provisions	(1,951)		(213)					(2,164)
	Operating income/(loss) (excl. goodwill			7,225			(3,147)			(123)			3,955
	impairment)
	Goodwill impairment
	Segment assets
	Net PP&E and intangible assets	111,629		153,743					265,372
	o/w capex	6,850		9,914					16,764
	Goodwill				26,924					26,924
	Trade receivables	50,036		132,115			(32,759)		149,392
	Other receivables	3,164		13,577			(137)		16,604
	Balance sheet total	53,200		145,692			(32,896)		165,996
	Other assets allocated	70,661		140,587			(3,315)		207,933
	Unallocated assets										2,689
	Total assets			235,490			466,946			(36,211)			668,914
	Segment liabilities
	Current provisions	581		1,072					1,653
	Trade payables	25,430		76,372			(32,768)		69,034
	Other payables	19,100		47,768			(134)		66,734
	Unallocated liabilities										153
	Total liabilities			45,111			125,212			(32,902)			137,574

• Segment information by geographic area - 30/06/2019 (6 months)

	€000	France	Europe	Outside Europe	Total
	Revenue	189,473		102,555			15,849		307,877
	Net PP&E and intangible assets	245,682		13,063			6,627		265,372
	o/w capex	14,858		1,128			778		16,764
	Goodwill	26,924							26,924
	Trade receivables	129,698		16,689			3,005		149,392
	Other receivables	13,826		646			2,132		16,604
	Balance sheet total	143,524		17,335			5,137		165,996
	Other assets allocated	195,054		5,849			7,030		207,933
	Unallocated assets								2,689
	Total assets	611,184		36,247			18,794		668,914

26

4. Consolidated entities

All companies are fully consolidated and wholly owned except for Fizzer, in which the Group holds a 60% equity stake.

Name	Address
EXACOMPTA CLAIREFONTAINE	88480 ETIVAL CLAIREFONTAINE
A.B.L.	132 Quai de Jemmapes - 75010 PARIS
A.F.A.	132 Quai de Jemmapes - 75010 PARIS
CARTOREL	384 Rue des Chênes Verts - 79410 ECHIRE
CFR Ile Napoléon	RD 52 - 68490 OTTMARSHEIM
PAPETERIES DE CLAIREFONTAINE	19 Rue de l'Abbaye - 88480 ETIVAL CLAIREFONTAINE
CLAIREFONTAINE RHODIA	RD 52 - 68490 OTTMARSHEIM
CLAIRCELL	ZI - Rue de Chartres - 28160 BROU
COGIR	10 Rue Beauregard - 37110 CHATEAU-RENAULT
REGISTRES LE DAUPHIN	27 Rue George Sand - 38500 VOIRON
MADLY	6 Rue Henri Becquerel - 69740 GENAS
EVERBAL	2 Route d'Avaux - 02190 EVERGNICOURT
EXACOMPTA	138-140 Quai de Jemmapes - 75010 PARIS
FACIMPRIM	15 Rue des Ecluses Saint Martin - 75010 PARIS
LALO	138 Quai de Jemmapes - 75010 PARIS
LAVIGNE	139-175 Rue Jean Jacques Rousseau - 92130 ISSY-LES-MOULINEAUX
PAPETERIE DE MANDEURE	14 Rue de la Papeterie - 25350 MANDEURE
MANUCLASS	ZI d'Etriché - 49500 SEGRE-EN-ANJOU-BLEU
CLAIRCELL INGENIERIE	ZI - Rue de Chartres - 28160 BROU
EDITIONS QUO VADIS	14 Rue du Nouveau Bêle - 44470 CARQUEFOU
RAYNARD	6 Rue de la Peltière - 35130 LA GUERCHE DE BRETAGNE
RAINEX	Lieudit Saint-Mathieu - ZI - 78550 HOUDAN
ROLFAX	ZI Route de Montdidier - 60120 BRETEUIL
PAPETERIES SILL	Rue du Moulin - 62570 WIZERNES
PHOTOWEB	1 Rue des Platanes - 38120 SAINT-EGREVE
INVADERS CORP	144 Quai de Jemmapes -75010 PARIS
PAPETERIES DU COUTAL	ZI du Coutal - 24120 TERRASSON-LAVILLEDIEU
FIZZER	15 Rue Edouard Herriot - 14160 DIVES-SUR-MER
BRAUSE PRODUKTION	51149 KÖLN - (DE)
EXACLAIR GmbH (Germany)	51149 KÖLN - (DE)
RODECO	51149 KÖLN - (DE)
MAKANE BOUSKOURA	Parc industriel de Bouskoura, lot n°4 - 20180 BOUSKOURA - (MA)
CLAIR MOROCCO	Parc industriel de Bouskoura, lot n°4 - 20180 BOUSKOURA - (MA)

27

PUBLIDAY MULTIDIA	Parc industriel de Bouskoura, lot n°4 - 20180 BOUSKOURA - (MA)
ERNST STADELMANN	Bahnhofstrasse 8 - 4070 EFERDING - (AT)
EXACLAIR (Spain)	08110 MONTCADA I REIXAC - (ES)
EXACLAIR (Belgium)	Boulevard Paepsem, 18D - 1070 ANDERLECHT - (BE)
EXACLAIR Inc. (USA)	143 West 29th Street - NEW YORK - (USA)
EXACLAIR Ltd (UK)	Oldmedow Road - KING'S LYNN, Norfolk PE30 4LW - (UK)
QUO VADIS International Ltd	1055 Rue Begin - Ville Saint Laurent - QUEBEC H4R 1V8 - (CA)
EXACLAIR Italia Srl	Via Soperga 36 - 20127 MILANO - (IT)
QUO VADIS Japan Co Ltd	Sangenjaya Combox 4F, 1-32-3 Kamjuma Setagaya-Ku, TOKYO - (JP)
QUO VADIS Editions Inc.	120 Elmview Avenue - HAMBURG, NY 14075-3770 - (USA)
SCHUT PAPIER (Netherlands)	Kabeljauw 2, 6866 HEELSUM - (NL)
BIELLA SCHWEIZ (Switzerland)	Erlenstrasse 44, 2555 BRÜGG - (CH)
FALKEN (Germany)	Am Bahnhof 5, 03185 PEITZ - (DE)
DELMET PROD (Romania)	Industriei 3, 070000 BUFTEA - (RO)
AE4 2012 HOLDING (Sweden)	Hamilton Advokatbyrå, Box 715, 101 33 STOCKHOLM - (SE)
EUROWRAP A/S (Denmark)	Odinsvej 30, 4100 RINGSTED - (DK)
EURO WRAP Ltd (UK)	Unit 2 Pikelaw Place, West Pimbo Industrial Estate, SKELMERSDALE WN8 9PP - (GB)

28

Exacompta Clairefontaine S.A.

Certification

of the half-year financial report

I hereby certify that, to the best of my knowledge, the summary consolidated financial statements for the half year ended have been prepared in accordance with applicable accounting standards and present a true and fair view of the assets and liabilities, financial position and earnings of the company and all the companies included in the consolidation. I also certify that this Half-year Activity Report presents a true and fair view of the main events occurring during the first six months of the year, their impact on the financial statements and the main related party transactions and that it includes a description of the main risks and uncertainties affecting the remaining six months of the year.

Jean Marie Nusse

Executive Vice President

29

Exacompta Clairefontaine S.A.

Statutory auditors' report on the half-

year financial report

30

ADVOLIS	BATT AUDIT
Statutory Auditor	Statutory Auditor
Member of the Paris Institute of Statutory Auditors	Member of the Nancy Institute of Statutory
Auditors
38 Avenue de l'Opéra	58 Boulevard d'Austrasie
75002 PARIS	54000 NANCY

Statutory auditors' report

on the half-year financial report

Period from 1 January to 30 June 2020

EXACOMPTA CLAIREFONTAINE

1. French limited company (société anonyme) 88480 ETIVAL CLAIREFONTAINE

31

STATUTORY AUDITORS' REPORT

ON THE FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2020

EXACOMPTA CLAIREFONTAINE

1. French limited company (société anonyme) 88480 ETIVAL CLAIREFONTAINE

To the Shareholders,

In accordance with our engagement by your Shareholders' General Meeting, and in application of Article L. 451-1-2 III of the French Monetary and Financial Code, we have:

• conducted a limited review of the attached summary consolidated financial statements of EXACOMPTA CLAIREFONTAINE for the period from 1 January to 30 June 2020; and
• verified the information contained in the half-year activity report.

These summary consolidated half-year financial statements were prepared under the responsibility of the Board of Directors on 17 September 2020 on the basis of the information available at that date, amid changing circumstances related to the COVID-19 crisis that rendered it difficult to estimate the consequences and outlook for the future. It is our responsibility, based on our limited review, to express an opinion on those statements.

Opinion on the financial statements

We performed our limited review in accordance with professional standards applicable in France. A limited review mainly involves the conducting of interviews with the senior executives responsible for accounting and financial matters and the implementation of analytical procedures. The work is of limited scope compared to the work required for an audit performed in accordance with auditing standards applicable in France. Accordingly, a limited review provides only a moderate degree of assurance, less than that provided by an audit, that the financial statements, taken as a whole, are free from material misstatements.

On the basis of our limited review, we did not identify any material misstatements that cause us to question the compliance of the summary consolidated half-year financial statements with IFRS standard IAS 34 - Interim financial reporting, as adopted by the European Union.

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Specific verifications

We have also verified the information provided in the half-year activity report prepared on 17 September 2020 commenting on the summary consolidated half-year financial statements on which we performed our limited review.

We have no comments to make about the accuracy of said activity report or its consistency with the summary consolidated half-year financial statements.

Executed in Paris and Nancy, 29 September 2020

The Statutory Auditors,

ADVOLIS

BATT AUDIT

Patrick Iweins

Hugues de Noray

Pascal François

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