DERICHEBOURG - Universal registration document 2019-2020

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Financial statements Parent company financial statements at September 30, 2020 Accounting policies and methods

Accounting policies and methods 2.

Accounting rules and methods 2.1 The financial statementshave been preparedin accordancewith French accountingstandardsas defined in the: FrenchCommercialCode; p ANC regulation 2014-03 (dated June 5, 2014 and relating to the p revisedFrenchGeneralChart of Accounts). The financial statements were approved during the meeting of the Board of Directorson December 3,2020. General accountingpolicies have been applied in accordancewith the prudenceprinciple, in line with certainbasic assumptions: continuityof operations, ● consistencyof accountingpolicies fromone fiscal year to the next, ● independenceof fiscal years, ● and in accordancewith general rules for preparing and setting out ● annual financial statements. The historical cost method has been used for measuring items recognizedin the financial statements. The accountingmethodwas not changed during the fiscal year ended September 30,2020. 2.2 Goodwill is recognizedat the acquisitioncost. It is subjectedto an annual impairmenttest, where necessary,whether or not there is an indicationof an impairment. When the acquisition value is higher than the current value, the Companyrecords an impairment.The current value is the higher of the market value or the value in use. The value in use corresponds to the discountedvalue of cash flows expectedfrom the use of assets. Goodwill impairmentsare never reversed. The transpositionof the Europeandirective and the implementationof the new goodwill impairment rules, in accordance with the methods specified in regulations2015-06and 2015-07of the ANC have had no impact on the annual financial statements. Start-up costs are fully amortizedover the fiscal year in which they are recognized. Computer software is amortized over a period of 12 months to five years dependingon how crucial the softwareis to the business. Intangible assets

Property, plant and equipment 2.3 The assets are recognized at their acquisition cost. Depreciation is calculatedon a straight line basis, over the estimateduseful life of the property. However, in the case of companiesabsorbedthroughoutthe fiscal year which did not apply these rules, no correctionto the initial depreciation plans has beenmade.

The main depreciationperiodsused are: buildingsand fittings:10 to 30 years (1) ; p technical installations:4 to 10 years; p transportequipmentand operations:3 to 5 years; p other fixed assets: 4 to 10 years. p

Financial assets 2.4 Investment securities and other long-term investments are recognized at acquisition cost, with any directly related costs recognized as expenses. Investmentsecurities are recorded in the balance sheet if their value in use is less than the net carryingamount. Value in use is mainly determinedbased on estimated and discounted forecastedcash flows for the subsidiary,less net interest expense.

2.5 N/A.

Inventory

Receivables 2.6 Trade and other operatingreceivablesare recognizedat nominal value, discounted when necessary, and adjusted for any impairment considering any potential risk of non-payment. Provisions for impairmentare determinedon a case-by-casebasis. A specific impairmentprovisionis made for doubtful receivables. Receivables and payables denominated in foreign currencies Receivables and payables denominated in foreign currencies are recognized at year-end according to the usual accounting policies; a provisionis made for unhedgedunrealizedlosses. 2.7

NB: this is increased to50 years for investment properties. (1)

DERICHEBOURG p 2019/2020 Universal Registration Document 193