DERICHEBOURG - Universal registration document 2019-2020

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

which takes into account compensation, years of service, life expectancy, employee turnover rate and actuarial assumptions. The calculationtakes into account the followingassumptions: departureprocedureand age: voluntarydepartureat 62 years of age p for non-executivesand at 62 for executives; mortalitytable: TGM05/TGF05; p

Loan issue costs 2.8 Loan issue costs are spread over the term of the loan. The remaining balanceat the end of the year is presentedunder prepaidexpenses.

Marketable securities 2.9 These are recognized at acquisition cost. At year-end, a provision is made if the historicalvalue is less than the carryingamount.

employeeturnover:based on Groupdata; p discountrate (inflationincluded):0.6%; p career profile: 2%; p social charge rates: 45%. p

Provisions for liabilities andcharges 2.10 Provisionsare recognizedwhen: the Company is bound by a legal or implicit obligation arising from p past events; it is probable that an outflow of resources, without at least p equivalentconsideration,will be requiredto settle the obligation; and the amountof the provisioncan be reliablyestimated. p No provision is made for contingent liabilities for which a reliable estimate cannot be made. Where necessary, a descriptionof the risks incurred is inserted in the notes relating to the provisions for liabilities and charges. Service awards 2.10.1 A service award bonus is given to employees after 20, 30, 35 and 40 years of service. The provision for service awards is determined based on a discounted calculation taking into account assumptions about the probability of employees remaining with the Company, as well as a 0.6% discount rate (inflation included). The provision for serviceawards totals €2 thousand.

The estimated discounted commitment for retirement payments to Company employees totals €136 thousand. No provision has been made for retirement payments; this is an off-balance sheet commitment.

Employee profit-sharing 2.13 N/A.

Tax consolidation 2.14 The Grouphas opted for the tax consolidationsystem.

The scope of application includes French companies in which DerichebourgSA’s direct or indirect holding is at least 95% (head of the tax consolidationgroup). Each company calculates and pays its tax to the head of the tax consolidation group as if there was no tax consolidation. The Derichebourg Group’s tax savings amount to €2.4 million. Financial instruments 2.15 Derichebourg uses financial instruments to manage its exposure to interest-raterisks, mainly swaps and caps. The total amount of instrumentsintendedto cover variable-ratedebt is as follows: debt in thousandsof euros: 170,000(0 of which is deferred); p debt in thousandsof dollars: 0. p Identity of theparent company 2.16 CFER is the parent company. It held 41.25%of DerichebourgSA as at September 30,2020. The ultimateparent companyis DBG Financesbased in Belgium.

Environmental aspects 2.10.2 N/A.

Regulatedprovisions 2.11 The regulatedprovisionsincludedin the balancesheet are:

accelerated depreciation corresponding to the difference between p depreciation for tax purposes and depreciation for impairment calculatedusing the straight line method; the considerationfor regulated provisions is entered in the income p statementunder exceptionalincomeand expenses. Pension and other post-employment 2.12 benefits Retirementcommitmentsare calculatedusing the projectedunit credit method and service is pro-rated.The estimate is based on a calculation

DERICHEBOURG p 2019/2020 Universal Registration Document 194