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

water agencies, local councils, waterways, associations, etc.) in order to: check that the Group’s business activities are conducted in p accordance with current legislation and regulations (operating licenses), as poorly managed recycling activities can cause pollution; learn about regulatory changes; p ensure that facilities are supervised and releases to the environment p are monitored and controlled; train and inform colleagues about best practice. p Likewise, operations are often conducted on land with an industrial past, whose history is not always available. Where necessary, soil surveys are conducted in application of regulatory changes. To the Group’s knowledge, no pollution hazards have been revealed for which a provision has not been made or for which a solution has not been found. the syndicated loan agreement signed on March 31, 2014 and its p five riders (the third rider extending the contract until March 31, 2022); the non-recourse factoring agreement signed on January 1, 2015, p renewed twice in April 2016 and November 2018; finance leases; p other borrowings and bilateral lines. p These debts are valued and recognized at amortized cost using the effective interest rate method. According to this method, the cost of the debt includes issuance costs, originally deducted from the nominal value of the debt as a liability. Also in this method, interest expenses are recognized on an actuarial basis. In the event that the terms of a loan agreement are modified, if the cash flows discounted at the initial effective interest rate under the new terms, including any fees paid and negotiation costs, exceed the discounted value of the flows anticipated under the agreement by more than 10%, the issuance costs and negotiation fees are recognized as expenses. Financial debt with a term of less than one year is recorded under Current financial debt. Fair value of derivative assets and liabilities 2.3.19 (IAS 32-IFRS 9) The Group uses derivatives to hedge its exposure to market risks (interest rates, exchange rates and raw material prices). According to IFRS 9, all derivatives must be recognized on the balance sheet at their “fair value”. If derivatives do not meet the criteria for hedge accounting, fluctuations in their fair value are recognized in the income statement. Derivatives may be considered hedging instruments in three situations: hedging of fair value; p Financial debt (current and non-current) 2.3.18 Financial debt includes:

Current provisions 2.3.17.2 Current provisions represent provisions directly related to the operating cycle of each business line, whatever the term required for their reversal. The provisions for other current risks are mainly provisions for late-delivery penalties, provisions for individual redundancies and other risks arising from business operations. Non-current provisions 2.3.17.3 Non-current provisions represent provisions not directly related to the operating cycle and whose term is generally greater than one year. They are mostly provisions for litigation. Non-current provisions for a term of less than one year are recognized on the balance sheet under current provisions. Provisions for environmental risks 2.3.17.4 Provisions for environmental risks are established whenever there is a legal or contractual requirement to restore an operating site, or whenever the Company is deemed liable for a quantifiable environmental risk. These provisions are measured on a site-by-site basis by estimating the cost of the work (see section 1.5.2.1). Business Services By its very nature, Business Services has a very low environmental impact. Environmental issues are managed by the Quality, Safety and Environment (QSE) Department and form an integral part of each entity’s general policies. QSE contacts within the various entities are responsible for implementing environmental initiatives and have the role of: ensuring compliance with regulations; p responding to client demands such as external evaluation p questionnaires required by some of our major clients (such as Ecovadis and Carbon Disclosure Project assessments). External audits are also conducted by clients; drawing up CSR diagnostics and implementing action plans. These p impacts are taken into consideration within the context of the global Corporate Social Responsibility initiative defined as a result of a diagnosis conducted using the approach described by the French Federation of Cleaning Companies (FEP). Environmental Services Due to the very nature of its Environmental Services operations, which involve recycling metals, the Derichebourg Group is helping to preserve the planet’s natural resources (iron ore, copper, bauxite, etc.). Recycling metals saves a significant amount of energy compared with the primary production of such metals, with up to 94.8% for aluminum and 16.5% for steel (source: Report on the economical benefit of recycling, Bureau of international recycling). In this way, the Group is helping to reduce greenhouse gas emissions, as detailed in section 1.6 of Chapter 1 of this Universal Registration Document. For almost ten years, each regional subsidiary has had an Environmental Officer (reporting to the Environmental Services director), who liaises with the relevant authorities (DREAL, prefectures,

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