Read the Registration Document - Guerbet

• Liquidity riskIn 2012, Guerbet obtained new credit lines, supplementing those already in place, to secure resources tofinance growth, development projects and capital expenditures over the next five years.The loans, as the credit lines, provide for compliance with certain financial ratios. Any breach of these ratiosmust result in negotiations between Guerbet and its banking partners.If the negotiations do not succeed, the loans may become immediately repayable and the credit linescancelled.Short-term liquid assets of subsidiaries are centralised by the parent company through a mechanism forautomatically transferring these liquid assets adopted by most subsidiaries.The company has performed a specific review of its liquidity risk and, on that basis, considers that it hasresources to honour its future payment obligations.• Risks related to financial investmentsThe Group, in connection with its industrial pharmaceutical activity is not led to invest in short-termsecurities. However, it may have recourse to open-ended collective investment vehicles (OEICs),undertakings for collective investments in transferable securities (UCITS) and interest-bearing accounts.The Group's policy consists in investing in risk-free vehicles readily convertible into cash with top-tierfinancial counterparties .• Customer counterparty riskTrade receivables are subject to strict management and to date the Group has not incurred anyincidents of default by public sector customers related to the sovereign debt crisis.c) Other risks• Litigation risksGuerbet, in the course of its normal activities, is a party in legal proceedings and disputes.To the best of the Company's knowledge, there are no exceptional items or litigation proceedings that couldhave a material adverse effect on its business and earnings.Among litigations in progress, it is noted that the minority shareholder of Medex, 60% held by Guerbet, indisagreement with respect to the purchase price for its shares by Guerbet, has initiated legal proceedings inconsequence. This litigation has been properly recognised in the accounts and is referred to in the notes tothe consolidated financial statements.• Risk of counterfeitingCases of counterfeit contrast products are very unlikely. Nevertheless, a procedure describing the conductto be adopted when occurrence of a counterfeit is suspected is in place making it possible to notify therelevant authorities to take action (attachment, recalls, search for the potential source).Furthermore, Guerbet has implemented in France Data Matrix marking in compliance with applicable lawsto improve traceability and reduce risks of counterfeiting.• Country risksGuerbet may conduct commercial operations in geographical areas subject to unstable geopoliticalconditions. The nature of the risk incurred is related mainly to receivables collection.54