Derichebourg // 2020-2021 Universal Registration Document

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Financial and accounting information Consolidated financial statements at September 30, 2021 Accounting policies, rules and methods

Tangible assets 2.3.7 Tangible assets are recognized at their acquisition or production cost, reduced by the cumulative depreciation and any potential impairment provisions. Depreciation charges are normally applied on a straight line basis over the useful life of the asset; nevertheless, accelerated depreciation may be used where it appears more appropriate for the conditions in which the equipment is used. The useful lives generally applied are as follows:

To calculate diluted earnings per share, the average number of shares outstanding is adjusted to take into account the dilutive effect of equity capital instruments issued by the Group that are likely to increase the number of shares outstanding, such as options to subscribe for or purchase shares. 2.3.4 Intangible assets that are identifiable or separately controlled by the Group are recognized as assets on the balance sheet. They mainly include computer software and are amortized on a straight line basis over their useful life, which is generally between twelve months and five years, depending on their significance. Intangible assets acquired are recognized on the balance sheet at their acquisition cost. 2.3.5 Goodwill represents the difference recognized, on the date a company enters into the consolidation scope, between the acquisition cost of its shares, and the Group’s share of the fair value on the acquisition date of the assets, liabilities and contingent liabilities attributable to the Company acquired on the date of purchase of the shares. Positive goodwill is recognized as assets on the balance sheet under the heading “Goodwill”. Negative goodwill is recognized directly in the income statement in the year of acquisition under the item “Other non-recurring income and expenses”. Goodwill is not amortized. Intangible assets Goodwill Impairment of non-current assets other than financial non-current assets Goodwill, tangible and intangible assets are subjected to impairment testing in certain circumstances: for non-current assets whose useful life is indefinite (as in the case of goodwill), impairment testing is carried out at least once per year, and any time there is an indicator of impairment; for other non-current assets, testing is only carried out when there is an indicator of impairment. Assets subjected to impairment tests are grouped into cash generating units (CGUs) which are groupings of similar assets whose utilization generates identifiable cash flows. When the recoverable amount of a CGU is less than its net carrying amount, an impairment provision is recognized against operating income. The recoverable amount of the CGU is the higher of the fair value less the costs to sell and the value in use. The value in use is determined by discounting the future cash flows likely to arise from an asset or a CGU. These future cash flows are estimated over a period of five years. Beyond that period, cash flows are extrapolated by applying a growth rate to infinity. The CGUs defined by the Group relate to the following businesses: Environmental Services; Business Services. These impairment tests are conducted annually at September 30. 2.3.6

Buildings

10 to 30 years 3 to 10 years 5 to 10 years 4 to 10 years

Equipment and technical installation

Airport equipment

Other tangible assets

Maintenance and repair costs are charged to income, with the exception of those incurred to increase productivity or prolong the useful life of an asset. 2.3.8 Investment grants are treated as deferred income. They are brought into income over the estimated useful life of the asset concerned. 2.3.9 The assumptions and estimates made to determine the value of lease rights of use and the related liabilities are primarily based on the calculation of discount rates and lease durations. The term of real estate leases corresponds to the non-cancelable period, to which may be added lease renewal options, which are deemed reasonably certain to be exercised by the Group. The assumption used for the duration of type 3/6/9 French commercial leases is three years for the Multiservices division and nine years for the Environmental Services division. These useful lives correspond to the best estimate of the useful life of the lease. The discount rate used for the measurement of the right-of-use asset and the lease liability is determined according to the residual term. The main equipment leases correspond to the rental of construction site vehicles, waste collection dumpsters and cleaning equipment. The Group has made use of the exemptions permitted by the IFRS 16 standard and thus excluded small construction equipment, parking spaces and short-term vehicle rentals from the scope. The right of use of the asset and its liability have been discounted to take into account the following situations: the review of the rental period; any change related to the assessment of whether the exercise of an option is reasonably certain (or not); review of the rates or indices on which rents are based; rent adjustments. The discount rate used for the measurement of the right-of-use asset and the lease liability is determined according to the residual term: Investment grants Rights of use

Residual maturity less than 10 years: 1.5%; Residual maturity of 10 years or more: 3.0%.

DERICHEBOURG 2020/2021 Universal Registration Document 146