Derichebourg // 2020-2021 Universal Registration Document

1

Presentation of the Group and its activities Environmental Services business

It should be noted that these graphs, and especially those for copper and nickel, imperfectly reflect the change in the Group’s sale prices, which are based on the LME prices, but which also take into account a discount for the secondary metal. This discount changes according to market conditions. Business portfolio 1.2.1.2 The Group’s Recycling business is present in eight countries, with a predominant share of its business conducted physically in France. The table below breaks down the distribution of purchases by country (ferrous scrap metal and non-ferrous metals).

€2,500

$3,000

$2,810

€2,000

$2,620

$2,430

€1,500

$2,240

$2,050

€1,000

$1,860

$1,670

Italy 1%

Mexico

€500

$1,480

2%

Benelux

$1,290

5%

€0

$1,100

U.S.A. 7% Germany 9% Spain 13%

oct.

oct.

oct.

apr.

apr.

feb.

feb.

apr.

feb.

dec.

dec.

dec.

june

june

june

aug.

aug.

aug.

France 61%

2019

2020

2021

Price: Aluminium LME Settlement Price: Aluminium Metal Bulletin Euro

$10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 $19,000 $20,000

€19,100

The Group operates in 200 recycling centers, of which 162 are in France. This business employs about 3,000 employees. In this activity, the features that distinguish the Group from its competitors are: the density of geographical coverage; the vertical integration made possible by this coverage: the Group’s vast network, which allows it to cost-effectively install secondary processing lines (flotation, aluminum refinery, stainless steel waste mixture preparation, preparation of primary aluminum for extruders), which are supplied with flows from various sites, without the need for significant purchases outside the Group; the management of operations with a long-term perspective, which is reflected in particular by a low-inventory policy: 15 days of activity for ferrous scrap metal, 15 to 25 days for non-ferrous metals. In a period when prices are rising, the Group benefits less from recovery than some of its competitors who hold more inventory. It generally weathers lower-price periods better than its competitors, which may put it in a position as a consolidating actor at the bottom of the cycle.

€18,100

€17,100

€16,100

€15,100

€14,100

€13,100

€12,100

€11,100

€10,100

$8,000 $9,000

€9,100

oct.

oct.

oct.

apr.

apr.

feb.

feb.

apr.

feb.

dec.

dec.

dec.

june

june

june

aug.

aug.

aug.

2019

2020

2021

Price: Nickel LME Settlement Price: Nickel Euro

DERICHEBOURG 2020/2021 Universal Registration Document 19