DERICHEBOURG - Universal registration document 2018-2019

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Financial statements Consolidated financial statements for the year ended September 30, 2019, in compliance with IFRS Accounting policies, rules and methods

IFRS 16 "Leases", applicable to fiscal years beginning on or after January 1, 2019 The Derichebourg Group decided to apply IFRS 16 using the simplified retrospective method as of October 1, 2019. It will thus restate all of its leases covered by this standard on the basis that the right-of-use asset is equal to the amount of the lease liability, adjusted for the amount of prepaid rental payments and advantages received from lessors. As a reminder, the exemptions set out in the standard are the following: leases of less than 12 months; p leases of low-value assets; p Having laid down the framework of its IFRS 16 project in 2018, the Group continued its work in 2019 with the listing of its lease agreements, followed by their gathering together. To assess the impacts of the leases and for their operational follow-up, the Group opted for an IT solution allowing: centralization of lease data; p continuation of initial conditions; p addition of lease lifecycle events; p generation of the statement of asset depreciation and statement of p accounting depreciation of the liability. The estimated impact of the application of IFRS 16 as of October 1, 2019 on the Group's balance sheet and income statement is as follows: recognition of a right-of-use asset ranging between €65 and €80 p million; recognition of a lease liability ranging between €65 and €80 million; p an increase in Ebitda of between €23 and €26 million; p an increase in net financial expenses ranging between €1 and €1.5 p million. Real estate leases The Group has identified those of its real estate leases that meet the criteria defining a lease under IFRS 16. The term of real estate leases corresponds to the non-cancellable period, to which may be added lease renewal options, the exercise of which by the Group is deemed reasonably certain. The position taken in respect of French commercial leases of the 3/6/9 type, is to consider them to have a 3-year lease term in the Multiservices division, and a 9-year term in the Environmental Services division. The discount rate used for the measurement of the right-of-use asset and the lease liability is determined according to the geographic region and residual term. Equipment leases The Group has analyzed all of its equipment leases in order to determine those that fall under the scope of IFRS 16. Following this work, the main leases identified correspond to leases of vehicles, site equipment, household waste dumpsters and cleaning equipment. The potential impact of other standards will be measured over the course of the next fiscal year.

Accounting policies 2.2 Consolidation methods 2.2.1

In accordance with the provisions of IFRS 10, companies over which the Group directly or indirectly exercises control are fully consolidated. The Group exercises control when 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 accordance with IFRS 11, joint arrangements are classified into two categories, joint ventures and joint operations, according to the type of rights and obligations held by each of the parties. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control involves the contractually agreed sharing of control of the entity, which only exists in cases where decisions concerning the relevant activities require the unanimous consent of the parties sharing control. An associate is a company over which the Group exercises significant influence. Significant influence exists when the Group has the power to participate in decisions regarding the entity’s financial and operational policies but 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, according to the equity method. Use of estimates 2.2.2 To prepare the Group’s consolidated financial statements, its management must make judgments and estimates that could have a significant effect on some of the assets, liabilities, income and expense items presented in these statements and in the notes thereto. The Group regularly revises its judgments and estimates on 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 business activity could require a significant adjustment to the amounts recognized for a given period. Judgments In preparing the financial statements for the period ending September 30, 2019, there were no particular situations for which management was called upon to exercise specific judgment. Estimates Key estimates regarding future events and other major sources of uncertainty at the reporting date are: assessment of the recoverability of trade receivables (see note 4.7 – p Trade receivables, other receivables and current financial assets), exposure to credit risk, as well as the risk profile; provisions for risks and for employee benefits (see note 4.13 – p Non-current provisions and provisions for commitments to employees, and note 4.14 – Current provisions);

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