Derichebourg // 2020-2021 Universal Registration Document

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Presentation of the Group and its activities Environmental Services business

The ferrous scrap metal segment 1.2.1.2.1 The Group processed 3.96 million metric tons of ferrous scrap metal during the year, an increase of 25.5% compared to the previous fiscal year. In France, the Group has the largest network in the sector (162 sites). Since transportation accounts for a large part of incoming waste costs, this proximity to waste production sites is strategic. Derichebourg Environnement prepares ferrous scrap metal, using 28 shredders and 70 shear balers to produce materials that comply with high-quality standards: elimination of impurities, compliance with specifications and calibration of batches. The recovered products are destined primarily for electric steel mills, foundries and converters in the long steel industry. Once prepared and sorted, volumes are sold to domestic steelmakers, or major exporters (about 10% of volumes) if the Group is close to port areas. The table below shows the main destination areas of the Group’s ferrous scrap metals.

Non-ferrous metals (NFM) 1.2.1.2.2 The breakdown of revenue by metal is as follows:

0%

100%

9% 4% 4%

1%

6% 8% 4%

80%

12%

13%

35%

60%

21%

40%

6% 9%

20%

38%

30%

0%

Volume

Value

Aluminum Others Inox

Zinc Bronze

Copper Lead Brass

Netherlands 1% Others 1%

Portugal 4% Mexico 2%

Luxembourg 6%

Compared to its competitors, the Group processes a larger relative volume of non-ferrous metals. Having a strong market share in non-ferrous metals is one of the Group’s historic features. This is due to the diversity of processed flows: traditional purchasing, sorting and preparation activity for all non-ferrous metals; Derichebourg Environnement has equipped its main shredders with an induction separator and has two flotation units in Europe for the separation of aluminum from other heavy metals (copper, brass, etc.). Dense aluminum (twitch) is made into ingots in the Group’s three refineries (Lille, Prémery and Albalate del Arzobispo). These ingots (mostly AS9U3 quality) are sold to automotive parts foundries. The Group’s various aluminum refineries produce 93,200 metric tons of secondary aluminum ingots; recycling of lead-acid batteries and production of lead ingots, reused by the automotive industry: 24,600 metric tons of ingots produced per year in the lead refinery of Albalate del Arzobispo, which is increasing its production capacity; the Inorec subsidiary prepares mixes of the various metals used in the composition of stainless steels, in accordance with customer specifications, so that they can be directly blasted; the Group prepares copper granulate from copper cables (about 7,000 metric tons per year).

Italy 7% USA 7%

France 31%

Germany 8% Belgium 8% Turkey 8%

Spain 16%

NB: The impact of the acquisition of Derichebourg España over nine months (2020). The Group is trying to keep its inventory low (about 15 days of activity) in order to limit its exposure to changes in ferrous scrap metal prices. The Group does not operate any steel mills. The Group’s shredding business generates shredding residues (a mixture of foam, plastic, glass, wood, etc.) that cannot be marketed as such. The Group is conducting several development actions to constantly improve recovery rates (energy or material) and limit volumes sent to landfill, which amounted to approximately 151,000 metric tons in 2021 (France scope).

DERICHEBOURG 2020/2021 Universal Registration Document 20