information release relating to paragraph 4.1 of the consolidated accounts included in the 2023 annual financial report

ABC arbitrage – Information release relating to paragraph 4.1 of the consolidated accounts included in the 2023 annual financial report

In accordance with Article 17 of the MAR regulation on the notion of inside information and although the gross financial impact for the first half of 2024 is estimated at only €230,000, ABC arbitrage announces that Quartys Limited (a wholly-owned subsidiary) received, on August 30, 2024, a letter refusing reimbursement of withholding taxes from the Swiss Federal Tax Administration (“AFC”).

• Reminder of the facts – As explained in our annual financial report 2023page 60, paragraph 4.1, Quartys Limited is subject to an audit on its requests for reimbursement of withholding tax (also called Withholding Tax – “STT”) sent to the Swiss Federal Tax Administration (“FTA”) for the years 2016 to 2019 and by extension up to and including 2023. In view of the risks regarding the recovery period for these STTs and the recent increase in rates, the Group, in accordance with IFRS 13, had decided to update the receivable as at 31 December, generating a negative impact on the income statement for the 2023 financial year for an amount of €1.35 million (directly included in the line “Net gains on financial instruments measured at fair value through profit or loss” – see also Presentation of 2023 results (in March 2024)page 13 and 14).

• AFC Mail – The AFC has just formally transmitted its decision to the company Quartys Limited by letter received on August 30, 2024. While the AFC formally recognizes that Quartys Limited is indeed the legal owner of the shares for which the refund of the withholding tax was requested, it refuses as it stands its refund for a total of 7.4 MCHF (i.e. approximately €7.9 million at the current CHF/EUR exchange rate), amounts slightly lower than the amounts indicated when the 2023 accounts were published.

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• Next steps – The Group confirms that it has acted in accordance with the rules of the relevant tax administrations. Having taken note of the letter received from the AFC, the Group confirms the validity of the refund request made by Quartys Limited and is confident in the outcome of this dispute. In order to compare this position with an external opinion, as had already been done on this subject for the publication of the 2023 accounts, the Group consulted a renowned Swiss tax law firm which confirms that this letter does not change its analysis and that the chances of success are more likely than not, in accordance with the terminology required by international standards (IFRIC 23 standard).

In accordance with the explanations provided in the 2023 financial report, the complete appeal process could take several years. To this end, the receivable was discounted over a period of 5 years in the 2023 accounts, generating a negative impact of €1.35 million for the same financial year. The Group has planned to update these amounts for the publication of the accounts for the first half of 2024, adding an additional negative impact of €0.23 million to that of the 2023 financial year, for a total of €1.58 million in impairment of the receivable in the Group’s accounts.

The various press releases can be consulted on the company’s website at the following link abc-arbitragein the page Shareholderssection Publications.

The next communication is scheduled for September 24 at 7 a.m. for the announcement of the results for the first half of 2024.

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