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

scraps for the years 2006 to 2010. In November 2017, the Court of Appeal considered that the Company had not adhered to the law concerning identification of the VAT of suppliers and rejected the deduction of purchase invoices deemed non-compliant. This resulted in the provisional payment of tax increases amounting to €6 million, recognized under expenses during fiscal 2017. The Company has appealed to the Court of Cassation. France 4.27.3 In June 2018, several subsidiaries in the household waste collection p business were jointly ordered by the lower court to pay €3.7 million to entities in the Veolia Group, after a judgment by the Paris Commercial Court in proceedings relating to the terms of personnel transfer in 2014 after the Veolia Group took over household waste collection in the 11 th and 19 th  arrondissements of Paris from the subsidiary Polyurbaine. The Group has appealed this judgment. The sums paid were recognized under expenses during the previous fiscal year. The Group is often subject to Urssaf (French social security body) p audits on its services activities. The subsidiary Derichebourg Atis Aéronautique was audited in fiscal year 2017/2018. Following this audit, the subsidiary made a provision in the amount of €1.5 million corresponding to a likely adjustment. It is contesting an unfunded amount of €3.2 million for meal allowances that were not subjected to social security charges, because it considers this adjustment to be unfounded. In 2012, Derichebourg SA and the subsidiary AFM Recyclage (as the p final operator) entered into an agreement with the local authority, which was renewed in 2018. Under this agreement, they would release land, transfer it to the local authority and transfer their activity to a nearby site. Conventionally, the financial obligation for decontamination was limited to decontamination for non-sensitive, industrial uses. After the end of the fiscal year, an estimate was made of the cost of this decontamination and its total cost calls into question the economics of the operation. Discussions have begun with stakeholders in order to see whether it is possible to find a solution that is acceptable to everyone. Should this not be the case, AFM Recyclage would seek to continue its activity at the site.

Finance leases 4.26.3.2 The minimum future lease payments that will be made on finance leases were as follows at September 30, 2019:

Future minimum payments – Finance leases

09-30-19

09-30-18

In millions of euros

<1 year

(29.1) (78.7) (17.2)

(27.5) (55.8)

>1 year and <5 years

>5 years

(7.5)

Total

(124.9)

(90.8)

09-30-19

09-30-18

In millions of euros

Lease payments expensed in the period

(28.1) (28.1)

(30.9) (30.9)

Total

Significant litigation 4.27 Italy 4.27.1

In November 2013, the director (managing director) of the Italian subsidiary of the Multiservices business (AEP Multiservizi) was remanded in custody, as part of an investigation into procedures for awarding public contracts in Campania. Given the block on the Company's operations likely to be caused by his incapacity, his appointment as managing director was revoked. He has since been freed and the post-judgment measures of constraint lifted. Although the company itself was not the subject of legal action, the Group decided to anticipate the consequences of this company’s situation and recorded a non-recurring provision of €4 million in its financial statements for the fiscal year ended September 30, 2016. The company’s activity is continuing, although the volume of business is reduced.

Belgium 4.27.2

A tax audit was conducted on the Belgian subsidiary Derichebourg Belgium relating to the identification of suppliers of metals and ferrous

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