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

mortality table: TGM 05/TGF 05; p employee turnover: based on Group data; p discount rate (inflation included): 0.5%; p career profile: 2%; p social charge rates: 45%. p

Marketable securities 2.8 These are recognized at acquisition cost. At year-end, a provision is made if the historical value is less than the carrying amount.

Provisions for liabilities and charges 2.9 Provisions are recognized for the best estimate of the amount of resources required to extinguish said obligation (legal or implicit). No provision is made for contingent liabilities for which a reliable estimate cannot be made. Where necessary, a description of the risks incurred is inserted in the notes relating to the provisions for liabilities and charges. Service awards 2.9.1 A service award bonus is given to employees after 20, 30, 35 and 40 years of service. The provision for service awards is determined based on a discounted calculation taking into account assumptions about the probability of employees remaining with the Company, as well as a 1.5% discount rate (inflation included). The provision for service awards totals €1 thousand.

The estimated discounted commitment for retirement payments to Company employees totals €130 thousand. No provision has been made for retirement payments; this is an off-balance sheet commitment.

Employee profit-sharing 2.12 N/A.

Tax consolidation 2.13 The Group has opted for the tax consolidation system.

The scope of application includes French companies in which Derichebourg SA’s direct or indirect holding is at least 95% (head of the tax consolidation group). Each company calculates and pays its tax to the head of the tax consolidation group as if there was no tax consolidation. The Derichebourg Group’s tax savings amount to €0.6 million. Financial instruments 2.14 Derichebourg uses financial instruments to manage its exposure to interest-rate risks, mainly swaps and caps. The total amount of instruments intended to cover variable-rate debt is as follows: debt in thousands of euros: 50,000 (0 of which is deferred); p debt in thousands of dollars: 0. p Identity of the parent company 2.15 CFER is the parent company. It held 41.25% of Derichebourg SA as at September 30, 2019. The ultimate parent company is DBG Finances based in Belgium.

Environmental aspects 2.9.2 N/A.

Regulated provisions 2.10 The regulated provisions included in the balance sheet are:

the difference between depreciation for tax purposes and p depreciation for impairment calculated using the straight line method; the consideration for regulated provisions is entered in the income p statement under exceptional income and expenses. Pension and other post-employment 2.11 benefits Retirement commitments are calculated using the projected unit credit method and service is pro-rated. The estimate is based on a calculation which takes into account compensation, years of service, life expectancy, employee turnover rate and actuarial assumptions. The calculation takes into account the following assumptions: departure procedure and age: voluntary departure at 62 years of age p for non-executives and at 62 for executives;

DERICHEBOURG p 2018/2019 Universal Registration Document 179