Derichebourg // 2020-2021 Universal Registration Document

5

Financial and accounting information Comments on the fiscal year

Cash flows 5.1.6.1 In addition to the information presented above, the statement of cash flow is presented in section 5.3.3. Further information on the conditions of the Group’s lines of financing can be found in section 4.11 of the notes to the consolidated financial statements. Borrowing conditions and financing structure 5.1.6.2 The financing structure and borrowing conditions are detailed in section 4.11 to the consolidated financial statements. At September 30, 2021, the Group was compliant with its various financial covenants and had almost €1 billion in undrawn credit lines (excluding undrawn factoring lines, and including non-confirmed lines and the use of cash flow included in the balance sheet). Restrictions on the use of capital 5.1.6.3 Restrictions on the use of capital are shown in detail in section 4.11 of the notes to the consolidated financial statements. Investments 5.1.7 Objectives pursued 5.1.7.1 For many years, the Group has had a policy of regular investment, the objectives of which, by sector, are as follows: Environmental Services continued expansion of regional coverage; better control of sourcing (material flow) by developing a fleet of collection vehicles and reception centers as well as the energy efficiency of this fleet; maintaining the high quality of production equipment and standardizing assets; development of plants in urban areas and, in a wider sense, compliance with environmental requirements; control, where possible, of the land assets of the sites at which the Group operates; vertical integration by setting up specific sorting lines in order to keep added value within the Group through more advanced sorting, and to gradually reduce sterile volumes sent to landfill.

Business Services Development and rationalization of the branch network;

Purchase of the materials required for the start-up of contracts won. Under the Environmental Services activity, investments can generally be spread over time, given the general condition and number of tools available to the Group. Therefore, the main determinant of the investment budget is the available Ebitda. The delay of several months between the commitment of investment orders and their actual completion, due to the delivery times of suppliers, should also be taken into account. The Group has set itself the target of not investing (on a multi-year basis) more than 50% of its recurring Ebitda.

80%

160

74%

145

3

70%

140

59%

16

127

124

2

56%

60%

120

57% 52%

4

14

21

11

107

51%

2

101

2

50%

100

18

11

18

6 12

40%

80

30

33%

71

2

64

2

14 11

30%

60

13

105

92

91

20%

40

81

21

64

44

10%

20

28

0%

0

2015 2016 2017 2018 2019 2020 2021

Recyling

Multiservices

Public sector services

Holding

CAPEX/ Recurring EBITDA

Main investments 5.1.7.2 The table below shows the main investments made (recognized in asset accounts, independent of the financing mode, use of equity or leasing):

2021

2020

2019

In millions of euros

Investments in land or infrastructures

19 54 28 10

25 49 12

13 77 36

Production equipment

Handling and transportation equipment

Others

0

0

Environmental Services subtotal

111

87

126

DERICHEBOURG 2020/2021 Universal Registration Document 134