1. Objective and Scope

1.1. Objective of this Operation

The aim of major maintenance work is to verify that the asset is being kept in good condition without modifying its life.

The maintenance restoration work performed during planned shutdowns with a period greater than one year must be capitalized when the total cost is above 500 K€, with the option to capitalize amounts between 200 K€ and 500 K€ according to the GBU needs.

When the amounts of IFRS shutdowns are registered in asset books, it is necessary to write off the previous ones. Shutdowns are identified in the asset register by a specific asset class in SAP.

1.2. Scope

SU MAC team extracts before the 15th of each quarterly closing month the list of shutdowns (based on asset class) capitalized. The extractions must be shared with controllers in order to understand which assets should be retired.

The team checks for each case that a divestment was booked concerning the previous shutdown. If it is not the case, SU MAC I&D Key User will take corrective actions.

1.3. Follow up & deadlines

Timeline (Execution & Follow-up)

• March : Execution Q1
• April : Follow up Q1 with I&D Key User in copy
• June : Execution Q2
• July : Follow up Q2 with I&D Key User in copy
• September : Execution Q3
• October : Follow up Q3 with I&D Key User in copy
• December : Execution Q4
• January : Follow up Q4 with I&D Key User in copy

2. Tasks description

2.1. Extraction

(performed by I&D contacts)

2.2. Update folders

(performed by I&D contacts)

2.3. Create a Gsheet for your cy and analyze your data

 (performed by assignment)

2.4. Ticket creation sharing the Gsheet with controllers and I&D Key Users in copy

 (performed by assignment)

Standard message:

“Dear XX,

We are performing the internal control FXA.01.02 - Divestment for each maintenance shutdown.

According to CAPEX procedure and IAS16, maintenance restoration work performed during planned shutdowns with a period greater than one year must be capitalized when the total cost is above 500 K€, with the option to capitalize amounts between 200 K€ and 500 K€ according to the GBU needs.

When the amounts of IFRS shutdowns are registered in asset books, it is necessary to write off former asset values or equivalent asset values of prior shutdowns if any.

According to the process, we kindly ask you to review this file Gsheet (link) and if there are assets to retire, please create a ticket with the request.

If you have any doubts, please let me know. Thank you and best regards”

2.5. Update monitoring file

 (performed by assignment)

2.6. Follow up - one month later

 (performed by assignment)

3. SAP Execution

3.1. PF2

Transaction code : AR01

Asset Class :

• • Z*G0000

  • Z GX00

  • ZFRGXTAD

Variant : /MAJOR REPAIR

When?

• Before the 15th of the months: March, June, September, December

• Create a Case Number by company code

3.2. WP2

Transaction code : AR01

Asset Class : AC215201

Variant : /I.D MAJOR R

When?

• Before the 15th of the months: March, June, September, December

• Create a Case Number by company code

3.2. Steps

1. Full extractions to be performed by I&D contacts.

2. Extractions will be available in the folders (pick your own company):

3. Validate information in the extraction:

• • Similar description in different years;

  • Similar description in the same location;

  • Similar description with the same cost center.

 Despite having identified the assets to be written off, we must send the full report to controllers.