DERICHEBOURG - Universal registration document 2019-2020

4

Financial statements Consolidated financial statements for the year ended September 30, 2020, in compliance with IFRS Notes

Commitments 4.26 Details of commitments given 4.26.1 Breakdownof off-balancesheet commitments

Bonds

Guarantees

09-30-20

09-30-19

In millions of euros

Rent

0.7

0.1

0.8

0.9

Financial Institutions - Market (1) Environmental commitments

25.7

27.7

53.5 10.1 14.2

44.6

1.4

8.7

4.2

Temporary work (2) Tax commitments

14.2

12.9

0.6

0.5 4.1

1.1 4.1

1.1 0.4

Others Total

42.6

41.2

83.8

64.1

Bonds given in accordance with the requirements of certain markets. (1) Bonds given by the parent company to the financial institution issuing the guarantee required by law for the Temporary Work business. (2)

Details of commitments received 4.26.2 Confirmedlines of credit not used as of September 30,2020: p

of Cassation overturned the grounds of the decision of the Mons Appeal Court and referredthe case back to the Liège Appeal Court. No conclusionshave been drawn in the financial statements, pending the decisionof the Liège Appeal Court. France 4.27.3 In June 2018, several subsidiaries in the householdwaste collection p business were jointly ordered by the lower court to pay €3.7 million to entities in the Veolia Group, after a judgment by the Paris CommercialCourt in proceedingsrelating to the terms of personnel transfer in 2014 after the Veolia Group took over householdwaste collection in the 11 th and 19 th districts of Paris from the subsidiary Polyurbaine. The Group had appealed against this judgment. The appeal judgment of March 2020was favorable to the Group. The amount of €3.7 millionpaid to Veolia in 2018 was repaid during the year, recorded in non-recurring profit. Veolia has appealed to the Court of Cassation. The Groupis oftensubjectto Urssaf(Frenchsocial securitybody)audits p on its servicesactivities.The subsidiaryDerichebourgAtis Aéronautique wasauditedin fiscalyear2017-2018.Followingthisaudit,the subsidiary madea provisionin the amountof €1.5 millioncorrespondingto a likely adjustment.It is contestingan unfundedamount of €3.2 millionfor meal allowancesthat were not subjected to social security charges, becauseit considersthis adjustment tobe unfounded. Derichebourg SA and the subsidiary AFM Recyclage (as the final p operator) entered into an agreement with a public-private partnership representing the local authority in 2012, which was renewed in 2018 and 2019. Under this agreement, they would release land, transfer it to the public-privatepartnershipand transfer their business to a nearby site. Conventionally, the financial obligation for decontaminationwas limited to decontaminationfor industrial, non-sensitive use, on the basis of preliminary studies showinga low decontaminationcost. On the basis of more in-depth surveys, an estimatewas made of the cost of this decontamination, and its total cost calls into question whether or not the process is cost-effective.Discussionshave begun with stakeholdersin order to see whether it is possible to find a solution that is acceptable to everyone.Should this not be the case, AFM Recyclagewould seek to continueits activityat the site.

bilateral line – Germany:€7.4 million; ● bilateral line – Belgium:€12.5 million; ● bilateral line – UnitedStates: $7 million; ● bilateral line – Portugal:€4 million; ● revolvingloan (syndicatedloan): €100 million. ● Retention bonds: €1.8 million p

Significant litigation 4.27 Italy 4.27.1

In November 2013, the director (deputy director) of the Italian subsidiary of the Multiservices business (AEP Multiservizi) was remanded in custody, as part of an investigation into procedures for awarding public contracts in Campania. Given the block on the Company’s operations likely to be caused by his incapacity, his appointmentas deputy director was revoked. He has since been freed and the post-judgment measures of constraint lifted. Although the company itself was not the subject of legal action, the Group decided to anticipate the consequences of this company’s situation and recorded a non-recurring provision of €4 million in its financial statements for the fiscal year ended September 30, 2016. This subsidiary was sold during the past fiscal year, without any particular guaranteegiven by the Group. A tax audit was conducted on the Belgian subsidiary Derichebourg Belgiumrelating to the identificationof suppliersof metals and ferrous scraps for the years 2006 to 2010. In November 2017, the Mons Appeal Court considered that the Company had not adhered to the law concerning identificationof the VAT of suppliers and rejected the deductionof purchase invoices deemed non-compliant.This led to the paymentof tax increaseson a temporarybasis, for €6 million,recorded as an expense during the 2017 fiscal year. The company has appealed to the Court of Cassation.On September 17,2020, the Belgian Court Belgium 4.27.2

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