Derichebourg // 2020-2021 Universal Registration Document

5

Financial and accounting information Consolidated financial statements at September 30, 2021 Notes

impact on enterprise value the long-term growth rate of the businesses. This was estimated at 1% for all businesses. This was calculated based on the following factors: Environmental Services: the continued growth in the share of steel ● production from the electric steel mills (in which almost all of the inputs are scrap) in the countries to which the Group delivers its scrap, as well as the comparative advantage of this sector compared to the traditional blast furnace sector in terms of CO 2 emissions, Business Services: to perform the impairment test on the Business ● Services CGU, the business plan used expects revenue growth of around 2% per year and 1% in the final year, driven by the Cleaning businesses. In addition, a recovery assumption of 3% in 2022-2023 and 2023-2024 in outsourced aeronautical services which does not, however, bring the level of activity back to pre-crisis levels. The enterprise values thus determined for the CGUs of the two segments are higher than their net carrying value.

The discount rate used is the weighted average cost of capital (WACC). The value in use of the cash generating units (CGUs) determined by business segment is calculated by discounting the forecast operating cash flows at the rates mentioned above. These cash flows are after tax (operating profit + amortization and depreciation – tax – change in working capital requirement – operating investments) and are based on a five-year business plan. These impairment tests are conducted annually at September 30. The key assumptions to which the impairment tests of Environmental Services and Business Services are sensitive are the following: the discount rate, calculated by breaking down the Weighted Average Cost of Capital: this rate is 9.5% for Environmental Services and 8.75% for Business Services; Ebitda for the final year of the explicit forecast. This Ebitda has been determined on the basis of business plans;

Difference between the recoverable amount and the net carrying value

Margin of maneuver Discount rate +0.5% Growth rate -0.5% Final-year Ebitda -5%

In millions of euros

Environmental Services

645 152

(78) (23)

(59) (18)

(69) (19)

Business Services

These stress tests did not result in the recognition of any impairment losses on goodwill.

4.2

Tangible assets and rights of use

4.2.1

Tangible assets

Change in consolidation scope (1)

Foreign exchange differences

Other changes (2)

09-30-20

Increases

Decreases

09-30-21

In millions of euros

Land

240.7 366.5 674.0 200.1

1.5

(0.3) (2.6)

0.3 4.4

0.6 0.5 2.1 1.2

242.9 387.0 674.0 208.6

Buildings

18.2 25.2 13.3 12.6

Ind. plants, machinery & equipment

(24.0) (11.2)

0.4 5.8

(3.7) (0.4) (5.7) (0.1) (5.2)

Other tangible assets

Tangible assets under construction

23.5

(0.5)

30.0

Advances and deposits Total gross value

0.1

0.3

0.3

1,504.9

71.0

(38.6)

6.2

4.4

1,542.8

Land

(44.2)

(4.9)

0.1 2.2

(0.2) (0.2) (1.9) (0.7)

(49.2)

Buildings

(212.3) (581.2) (169.6)

(15.3) (30.9) (11.9)

0.2

(225.3) (590.9) (176.4)

Ind. plants, machinery & equipment

23.5 10.3

(0.3) (5.6)

Other tangible assets Total amortization & depreciation

1.1

(1,007.3)

(62.9)

36.1 (2.5)

(5.9)

1.3

(2.9)

(1,041.7)

Total net value

497.7

8.1

0.3

(3.9)

1.5

501.1

See note 3 – Changes in consolidation scope. (1) The Group refinanced technical installations acquired during the previous fiscal year through sale and leaseback contracts for an amount of €1.1 million, presented (2) in other changes. The amount (€3.9 million) corresponds to reclassifications to the “Rights of use” item.

DERICHEBOURG 2020/2021 Universal Registration Document 153