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

Equity interests in associates and joint ventures 2.3.10 The Group’s equity investments accounted for using the equity method are initially recognized at acquisition cost including any goodwill arising, where applicable. Subsequently, their carrying amount is increased or decreased to take into account the Group’s share of profits or losses made after the acquisition date. When the losses are greater than the value of the Group’s net investment in the entity, they are recognized only if the Group has a contractual commitment to recapitalize the entity or has made payments on its behalf. If there is any indication of impairment, the recoverable amount of the investments consolidated using the equity method is tested in accordance with the methods described in the note on impairment of non-current assets, other than financial assets. Other non-current financial assets 2.3.11 This category includes receivables related to equity investments, loans and receivables and assets available for sale (mainly investment securities). In accordance with IFRS 9 “Financial Instruments”, equity interests in non-consolidated companies are considered by their nature to be assets available for sale and as such are recognized at their fair value. Where the shares are listed, the fair value is the price quoted on the stock market. If the fair value cannot be determined reliably, the shares are recognized at cost price. Changes in fair value are recognized directly in shareholders’ equity in an account created for this purpose. Where there is an objective indication of impairment, an irreversible provision for impairment is recognized in the income statement. This provision may be reversed only when the relevant shares are sold. Loans are recognized at amortized cost. An impairment provision may be recognized if there is an objective indication of such impairment. The amount corresponding to the difference between the net carrying amount and the recoverable amount is recognized in the income statement. It may be reversed if the recoverable amount increases subsequently. Inventory and work-in-progress 2.3.12 Inventories of raw materials and goods purchased for resale are recognized using the weighted average cost method. The work-in-progress and finished goods of Environmental Services are valued at cost price, including the cost of materials and labor and other costs directly related to production. At each closing date, inventories are valued at the lower of cost or net realizable value.

Cash and cash equivalents 2.3.14 Cash includes demand deposits and current accounts but excludes bank overdrafts which are included in financial liabilities. Cash equivalents include investments held with a view to meeting short term cash commitments. Securities include cash deposits, money-market mutual funds and negotiable debt securities which can be realized or sold at any time. They are valued at their market value. Any change in the fair value of these assets is recognized in the income statement. To be considered as a cash equivalent, they must be easily convertible and subject to only negligible risk of loss in capital. Treasury shares 2.3.15 Company shares held by the Group are recognized as a deduction from shareholders’ equity at their acquisition cost. Any profits or losses related to the purchase, sale, issue or cancelation of treasury shares are recognized directly in shareholders’ equity without impacting the income statement. Pension commitments and other employee 2.3.16 benefits Pension commitment The Group applies revised IAS 19. Commitments arising from defined benefit pension plans for both active and retired employees are indicated on the balance sheet. They are determined according to the projected unit credit method based on annual evaluations. The actuarial assumptions used to determine these commitments vary in accordance with the economic conditions of the country in which the plan is in effect. For externally managed and funded defined benefit plans (pension funds or insurance contracts), the fair value surplus or deficit in relation to the present value of the obligations is recognized as a balance sheet asset or liability. Surplus assets are only recognized on the balance sheet if they represent a future economic benefit for the Group. The past service cost represents benefits granted either when the business adopts a new defined benefit plan or when it modifies the level of benefits from an existing plan. Once new benefit rights are vested following the adoption of a new plan, the past service cost is immediately recognized in the income statement. Conversely, when the adoption of a new plan gives rise to the vesting of rights subsequent to its implementation date, the past service cost is recognized as an expense, on a straight line basis, over the average period left to run until the corresponding rights are fully vested. Actuarial gains and losses result mainly from the effects of changes to the actuarial assumptions and adjustments related to experience (differences between the actuarial assumptions used and the reality observed). They are recognized in other comprehensive income. Expenses recognized over the fiscal year include additional rights vested for an additional year of service, changes to existing rights at opening due to financial discounting, the expected return on plan assets, past service costs and the effect of any curtailments or settlements. The portion relating to additional rights is recognized under personnel expenses and the financial cost of net liabilities is recognized in the income statement.

Trade receivables and other operating 2.3.13 receivables

Trade receivables and other operating receivables are recognized at nominal value, discounted when necessary, and adjusted for any impairment considering any potential risk of non-payment. Provisions for impairment are determined on a case-by-case basis. A specific impairment provision is made for doubtful receivables.

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