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 Notes

Net financial position 4.11.2

09-30-19

09-30-18

In millions of euros

Financial debt

409.5 284.6 124.9

240.7 145.6 95.1

Cash and cash equivalents

Total net debt

€112 million in medium-term borrowings, of which €102.3 million p had been drawn down; a loan agreement with the European Investment Bank for p €130 million; leasing contracts, repayable in installments and at a fixed rate of p interest. The amount outstanding as at September 30, 2019 was €121.5 million. bilateral credit lines, whether confirmed or not, totaling p €109.4 million, which are not used since the Group’s net cash position is €277.6 million at September 30, 2019. Financial ratios The syndicated loan agreement requires the Group to maintain the following financial ratios: the annual leverage ratio, being the ratio of (a) consolidated net p financial debt to (b) consolidated Ebitda, on each calculation date and over a rolling 12-month period ending on each calculation date, must be less than 3.00. At September 30, 2019, the leverage ratio was 0.65; the debt service coverage ratio, i.e. the ratio of (a) consolidated cash p flow before debt service to (b) net financial expenses on each calculation date and over a rolling 12-month period ending on each calculation date considered, must be greater than 5. At September 30, 2019, the coverage ratio stood at 19.64. The Group was in compliance with its financial covenants on September 30, 2019. Given the liquidity margin of €497 million at September 30, 2019, and based on business and investment forecasts, the Group estimates that it has sufficient financial lines to meet its payments over the 12 months from September 30, 2019.

Liquidity risk 4.11.3 The Group uses a cash-flow management tool. This tool keeps track of the maturity of financial investments and financial assets (e.g., accounts receivable) and the estimated future cash flow from operations. At September 30, 2019, the Group’s main sources of funding were: a €232.5 million syndicated loan agreement signed in March 2014, p with an authorized outstanding amount of €131.8 million. It includes a five-year loan for €31.8 million, repayable in equal annual installments (outstanding amount authorized and drawn of €31.8 million as at September 30, 2019), and a five-year usable revolving loan in the sum of €100 million, repayable at maturity. The next installment for the repayment loan is due on March 31, 2020 and amounts to €10.6 million. At September 30, 2019, there was no drawdown being made under the revolving loan; a non-recourse factoring agreement went into effect on January 1, p 2015. Its initial two-year term was renewed twice, in April 2016 and November 2018, extending the maturity to the end of December 2021 and its limit to €300 million (subject to receivables available). The factoring purchases non-recourse receivables for up to the approved amounts issued by the credit insurers, and with recourse beyond that amount. The total receivables that may be derecognized by the Group is thus dependent on the total receivables available and the credit insurers’ authorized limits. Any downward variation in one of these amounts may lead to an increase in the net debt recognized by the Group; The amount drawn down from this line as at September 30, 2019 is €231.1 million, for a contribution to net debt of €16 million;

DERICHEBOURG p 2018/2019 Universal Registration Document 148