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 Notes

The valuationmethod used to determine the recoverableamount of these cash-generatingunits is the value in use. The data and the assumptions used for the impairmenttests of the assets includedin the cash generatingunits (CGUs) are as follows:

Discount rate 2019/2020 (1)

Growth rate to infinity 2019/2020

Discount rate 2018/2019 (1)

Growth rate to infinity 2018/2019

Valuation method

In millions of euros

Discounted cash flow and terminal value Discounted cash flow and terminal value

CGU – Environmental Services

9.50%

1.00%

9.00%

1.00%

CGU – Business Services

8.75%

1.00%

8.00%

1.00%

The discount rate used is the weighted average cost of capital (WACC). (1)

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 mentionedabove. These cash flows are after tax (operating profit + amortization and depreciation – tax – change in workingcapital requirement– operatinginvestments)and are based on a five-yearbusinessplan. These impairmenttests are conductedannuallyat September 30. The key assumptions to which the impairment tests of Environmental Servicesand BusinessServicesare sensitiveare the following: the discount rate, calculated by breaking down the Weighted p AverageCost of Capital: this rate is 9.5%for EnvironmentalServices and 8.75%for BusinessServices; Ebitda for the final year of the explicit forecast. This Ebitda has been p determinedon the basis of businessplans; impact on enterprise value the long-term growth rate of the p businesses. This was estimated at 1% for all businesses. This was calculatedbased on the followingfactors:

EnvironmentalServices: demand for recycling in developedcountries ● and growth in demandin emergingcountries, Business Services: to perform the impairment test on the Business ● Services CGU, the business plan used expects revenue growth of around2%per year and 1% in the final year, drivenby the Cleaning businesses.In addition,a recoveryassumptionof 10% in 2022-2023 and 20% in 2023-2024 in outsourced aeronautical services and temporary work for the aeronautics and aviation sector has been made, which does not, however, bring the level of activity back to pre-crisis levels. Modest growth in the ratio of Ebitda to revenue is also anticipatedover the period, reaching 5% during the final year. This growth will stem primarily from projected business developments, without any major modifications to the division’s structure. The Ebitda margin during the final year is close to that of other major players in the industry. The enterprise values thus determined for the CGUs of the two segmentsare higher than their book value.

Impact on enterprisevalue

Environmental Services

Business Services

Discount rate +0.5%

Discount rate -0.5%

% Change in Ebitda

Discount rate +0.5%

Discount rate -0.5%

% Change in Ebitda

In millions of euros

Impact on enterprise value

(61)

69

(18)

20

Change in EBITDA for the final year where value in use = recoverable amount

(31%)

(28%)

Environmental Services Business Services Growth rate +0.5% Growth rate -0.5% Growth rate +0.5% Growth rate -0.5%

In millions of euros

Impact on enterprise value

(43)

48

(13)

15

These stress tests did not result in the recognitionof any impairmentlosses on goodwill.

DERICHEBOURG p 2019/2020 Universal Registration Document 153