DERICHEBOURG - Universal registration document 2019-2020

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

income tax and assessment of deferred tax assets (see note 4.23 – p Income tax); potentialimpairmentof goodwilland intangibleassets (see note 4.1 – p Intangibleassetsand goodwill). 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 lengths of contracts. The assumptionused for the duration of type 3/6/9 French commercial leases is three years for the Multiservicesdivision and nine years for the EnvironmentalServices division. The useful lives selected correspondto the best estimateof the useful life of the lease. Non-controlling Interests 2.2.3 Non-controlling interests are presented separately from the Group’s shareholderequity on the balancesheet. When the share of the non-controllinginterests in the losses of a fully consolidated Group company is more than their share in equity, the excess, and any further losses applicable to the non-controlling interests, are allocated against the majority interests, unless the minorityshareholdershave a bindingobligationto cover these losses. Translation of the financiasltatements of foreign 2.2.4 companiesand firms In most cases, the functional currency of the Group’s foreign companies and firms is the same as their local currency. The financial statementsof foreign companiesprepared in a currency different from that of the Group consolidated financial statements are translated in accordancewith the “closing rate” method. Their balance sheets are translated at the exchange rates applicable on the closing date and their income statements are translated at the average rate for the period. The resulting translation differences are recognized as translation differences in consolidated reserves. Goodwill relating to foreign companies is considered as being part of the acquired assets and liabilities and, as such, is translated at the rate of exchange in effect on the closingdate. A loan to a foreign subsidiary, the settlement of which is neither planned nor probable in the foreseeablefuture, constitutespart of the Group’s net investment in this foreign subsidiary. Translation adjustments arising from a monetary item that forms part of a net investmentare recordeddirectly in other comprehensiveincome under currency translation reserves and recognized in income on disposal of the net investment. Transactions denominateidn foreign currencies 2.2.5 Transactions denominated in foreign currencies are converted into euros at the exchange rate in effect on the transaction date. At year-end, trade receivable and payable accounts denominated in a foreign currency are converted into euros at the year-end exchange rate. The resulting gains and losses are recognized in the income statementfor the year.

Accounting policies 2.2 Consolidation methods 2.2.1

In accordancewith the provisionsof IFRS 10, companiesover which the Group directly or indirectly exercises control are fully consolidated.The Groupexercisescontrolwhen it controls the entity and has an exposure or right to this entity’s variable returns, while also having the capacity to act on these returns. In accordancewith IFRS 11, joint arrangementsare classified into two categories,joint venturesand joint operations,accordingto the type of rights and obligationsheld by each of the parties. A joint venture is a joint arrangementwhereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.Joint control involves the contractuallyagreed sharing of control of the entity, which only exists in cases where decisions concerningthe relevant activities require the unanimousconsent of the parties sharingcontrol. An associate is a company over which the Group exercises significant influence.Significantinfluenceexists when the Grouphas the power to participate in decisions regarding the entity’s financial and operational policiesbut does not control or jointly control these policies. The results, assets and liabilities of equity interests in associated companies or joint ventures are included in the Group’s consolidated financial statements,accordingto the equitymethod. Use of estimates 2.2.2 To prepare the Group’s consolidated financial statements, its managementmust make judgments and estimates that could have a significanteffect on some of the assets, liabilities, income and expense items presented in these statements and in the notes thereto. The Group regularlyrevises its judgmentsand estimateson the basis of past experience and other factors it deems relevant based on economic conditions. Given the uncertainty that underlies these judgments and estimates,actual businessactivity could requirea significantadjustment to the amountsrecognizedfor a given period. Judgments In preparing the financial statements for the period ending September 30, 2020, there were no particular situations for which managementwas called upon to exercisespecific judgment. Estimates Key estimates regarding future events and other major sources of uncertaintyat the reportingdate are: assessmentof the recoverabilityof trade receivables (see note 4.7 – p Trade receivables, other receivables and current financial assets), exposureto credit risk, as well as the risk profile; provisions for risks and for employee benefits (see note 4.13 – p Non-currentprovisionsand provisionsfor commitmentsto employees, and note 4.14– Current provisions);

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