DERICHEBOURG - Universal registration document 2018-2019

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Financial statements Parent company financial statements as at September 30, 2019 Accounting policies and methods

Accounting policies and methods 2.

Accounting rules and methods 2.1 The financial statements have been prepared in accordance with French accounting standards as defined in the: French Commercial Code; p ANC regulation 2014-03 (dated June 5, 2014 and relating to the p revised French General Chart of Accounts); The financial statements were approved during the meeting of the Board of Directors on December 4, 2019. General accounting policies have been applied in accordance with the prudence principle, in line with certain basic assumptions: continuity of operations, ● consistency of accounting policies from one fiscal year to the next, ● independence of fiscal years, ● and in accordance with general rules for preparing and setting out ● annual financial statements. The historical cost method has been used for measuring items recognized in the financial statements. The accounting method was not changed during the fiscal year ended September 30, 2019. 2.2 Goodwill is recognized at the acquisition cost. It is subjected to an annual impairment test, where necessary, whether or not there is an indication of an impairment. When the acquisition value is higher than the current value, the Company records an impairment. The current value is the higher of the market value or the value in use. The value in use corresponds to the discounted value of cash flows expected from the use of assets. Goodwill impairments are never reversed. The transposition of the new European directive and the implementation of the new goodwill impairment rules, in accordance with the methods specified in regulations 2015-06 and 2015-07 of the ANC have had no impact on the annual financial statements. Start-up costs are fully amortized over the fiscal year in which they are recognized. Computer software is amortized over a period of 12 months to five years depending on how crucial the software is to the business. Intangible assets

Property, plant and equipment 2.3 The assets are recognized at their acquisition cost. Depreciation is calculated on a straight line basis, over the estimated useful life of the property. However, in the case of companies absorbed throughout the fiscal year which did not apply these rules, no correction to the initial depreciation plans has been made. The main depreciation periods used are: buildings and fittings: 10 to 30 years (1) ; p (1) NB: this is increased to 50 years for investment properties. p technical installations: 4 to 10 years; p transport equipment and operations: 3 to 5 years; p other fixed assets: 4 to 10 years. p 2.4 Investment securities and other long-term investments are recognized at acquisition cost, with any directly related costs recognized as expenses. Investment securities are recorded in the balance sheet if their value in use is less than the net carrying amount. Value in use is mainly determined based on estimated and discounted forecasted cash flows for the subsidiary, less net interest expense. Financial assets Receivables 2.6 Trade and other operating receivables are recognized at nominal value, discounted when necessary, and adjusted for any impairment considering any potential risk of non-payment. Provisions for impairment are determined on a case-by-case basis. A specific impairment provision is made for doubtful receivables. Receivables and payables denominated in foreign currencies Receivables and payables denominated in foreign currencies are recognized at year-end according to the usual accounting policies; a provision is made for unhedged unrealized losses. 2.7 Inventory 2.5 N/A.

NB: this is increased to 50 years for investment properties. (1)

DERICHEBOURG p 2018/2019 Universal Registration Document 178