DERICHEBOURG - Universal registration document 2019-2020

4

Financial statements Consolidated financial statements for the year ended September 30, 2020, in compliance with IFRS Accounting policies, rules and methods

Real estate leases The Group has identified those of its real estate leases that meet the criteria defining a lease under IFRS 16. The term of real estate leases corresponds to the non-cancellableperiod, to which may be added lease renewal options, which are deemed reasonably certain to be exercisedby the Group.With regard to the issue of French commercial leases under IFRS 16, the Group has taken into account recent changes and positions in standards, in particular those relating to enforceable lengthsof contracts.The assumptionused for the durationof type 3/6/9 Frenchcommercialleases is three years for the Multiservicesdivisionand 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 measurementof the right-of-useasset and the lease liabilityis determinedaccording tothe residualterm: Equipment leases The Group has analyzed all of its equipment leases in order to determine those that fall under the scope of IFRS 16. Following this work, the main leases identifiedwere leases for site vehicles,household waste dumpstersand cleaningequipment.The Group has made use of the exemptions permitted by the standard and thus excluded small constructionequipment, parking spaces and short-termvehicle rentals from the scope. The right of use of the asset and its liabilitymust be discountedto take into account the followingsituations: the reviewof the rental period; ● any change related to the assessmentof whether the exercise of an ● option is reasonablycertain (or not); reviewof the rates or indices on which rents are based; ● rent adjustments. ● The estimatedimpact ofthe applicationof IFRS 16 asof October 1,2019: Residualmaturity less than 10 years: 1.5% ● Residualmaturityof 10 years or more: 3.0% ●

The reconciliation between the off-balance sheet commitments for future minimum lease payments under operating leases at September 30,2019 and the lease liability recognizedunder IFRS 16 at October 1,2019 is as follows:

10-01-19

In millions of euros

Off-balance sheet operating lease commitments as lessee at 09-30-19 Contracts not accounted for under IFRS 16 exemptions Differences in the durations used and discounting effect Contracts signed prior to closing for an asset available after October 1, 2019

46.0 (9.2) 29.0 (0.2) (0.5) 65.1

Others

Rental liabilities under IFRS 16 at 10-01-19

The main impacts related to the applicationof IFRS 16are as follows:

09-30-20

In millions of euros

Rights of use Total assets

54.3 54.3 38.9 38.9 14.7 14.7 53.6

Non-current financial debt Non-current liabilities

Current financial debt Current liabilities

Total liabilities

At September 30,2020, the impacts of the application of IFRS 16 on the incomestatementare as follows:

09-30-20

In millions of euros

External charges

20.9 (0.1)

First application IFRS 16

Other operating expenses

Depreciation

(20.4)

In millions of euros

Recurring operating profit (loss)

0.4 0.4

Property, plant and equipment (formerly IAS 17)

(133.5)

Operating profit (loss)

Rights of use (ex-IAS 17)

133.5 65.1 65.1 45.9 19.2 65.1

Net financial expenses

(1.1) (0.7)

Rights of use under operating leases

Profit (loss) before tax

Total assets

Non-current financial debt

Current financial debt

Total liabilities

amendmentsto IFRS 9, IAS 39 and IFRS 7 “BenchmarkInterest Rate p Reforms”; amendmentsto IAS 1 and IAS 8 “Definitionsof Material”. p amendmentsto referencesto the conceptualframeworkin IFRS. p

Standardsand interpretations published but 2.1.2 not yet effective The Group has undertaken no early application of standards or interpretations that were not mandatory as of October 1, 2019 (the

applicationdates are those recognizedby EFRAG): amendmentsto IFRS 3“BusinessCombinations”; p

DERICHEBOURG p 2019/2020 Universal Registration Document 143