Derichebourg // 2020-2021 Universal Registration Document

5

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

The following table shows the sensitivity of profit before tax, before and after hedging, to a reasonable change in the US dollar exchange rate, all other variables being constant.

09-30-21

09-30-20

Before hedging After hedging

Before hedging After hedging

In millions of euros

+5%

(0.2)

(0.2)

(0.1)

(0.1)

CAD

-5%

0.2

0.2

0.1

0.1 0.3

+5% -5% +5% -5%

(1.9)

(0.1)

(0.5)

USD

2.1

0.1

0.5

(0.4)

(2.1)

(0.3)

(0.6)

0.2

Total

2.3

0.3

0.6

(0.2)

Credit or counterparty risk 4.12.5 Financial transactions ( i.e . loans, hedges on currencies, interest rates and raw materials) are carried out with leading financial institutions for the purpose of reducing risk. To reduce counterparty risk on domestic, export and foreign trade receivables, Environmental Services and Business Services systematically apply for credit insurance to cover 95% of this risk on these receivables, excluding taxes. The credit insurer may however sometimes refuse coverage based on its assessment of a customer’s solvency.

Exposure to customer risk is regularly compared to the credit insurer’s authorized limits. For several years now, the Group has implemented a very strict policy of monitoring customer outstandings and systematically issuing routine reminders for overdue outstandings. The Business Services business has a very large portfolio of customers that represents all sectors of the French economy. Its credit risk is therefore proportionate to the risk that the French economy itself will fail, and without the risk that the default of any single customer could threaten the Group’s survival.

Aging of accounts receivable (gross values excluding doubtful receivables)

Total outstanding 09-30-21

Not due

<1 month

<4 months

>4 months

In millions of euros

Environmental Services

256.7 138.1

171.3

43.5 10.5

38.2 19.1

3.7

Business Services

97.3

11.2

Holding companies

1.7

1.2

0.0

0.5

Total

396.5

269.8

54.0

57.3

15.4

Despite the turbulent environment, the Group has not yet observed any significant increase in payment delays and customer credit risk is €1.9 million. The Group considers that its other loans do not constitute a substantial risk, except for certain receivables more than four months overdue.

risk practice is to only enter into a contract to sell when a purchase has been made. Three specialist companies, aluminum refiner Refinal, and non-ferrous metals traders Inorec and Coframétal, may make buy or sell commitments before finding a counterparty for the transaction. They may hedge these transactions on the London Metal Exchange (other Group companies may also hedge transactions on the LME, but this is exceptional). The Group may therefore have to sell its inventories of processed metal goods to its customers for less than the initial purchase price if the market price for these goods declines between the time of purchase and the time of sale. The volatility of the prices of different metals may create exceptional “price effects” which the Group endeavors to limit by holding low levels of stock.

Raw materials risk 4.12.6

In the normal course of its business, the Group enters into few forward contracts to buy or sell ferrous or non-ferrous metals, and these contracts generally do not require a firm price commitment beyond one month. Depending on whether metal prices rise or fall, the Group may have to purchase or sell at a price less favorable than when the contract was entered into to honor a contract. However, the Group’s

DERICHEBOURG 2020/2021 Universal Registration Document 166