DERICHEBOURG - Universal registration document 2018-2019

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CSR report (serving as statement of extra-financial performance) Overview of businesses and business model

The table below shows the main destination areas of the Group’s ferrous scrap metals.

in addition, Derichebourg Environnement has equipped its main p shredders with an induction separator and has two flotation units in Europe for the separation of aluminum from other heavy metals (copper, bronze, etc.). Dense aluminum (twitch) is made into ingots at the Refinal Industries Lille site. These ingots (AS9U3 quality) are sold mainly to automotive parts foundries. The Group’s refinery produces 66,000 tons of secondary aluminum ingots. The Group has invested in a second refinery (rotary kiln) in Prémery (Nièvre), which will eventually produce 15,000 tons of ingots per year (11,000 tons in 2019); the Inorec subsidiary prepares mixes of the various metals used in p 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 p 3,000 t/year). During the 2018/2019 fiscal year, the Group processed 535,100 tons of non-ferrous metals, a slight decrease compared to the previous year (-1%). The table below breaks down the sales of non-ferrous metals (including stainless steel waste) by country of destination:

Turkey 4% Mexico 4%

Others 2%

Luxembourg 8%

France 41%

USA 8% Italy 8%

Germany 8% Spain 8%

Belgium 9%

The Group is trying to keep its inventories 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 165,000 tons in 2019 (France scope).

USA 7%

Netherlands 5%

Others 8%

France 27%

Spain 10%

Non-ferrous metals (NFM) 1.1.1.1.3.2 The breakdown of revenue by metal is as follows:

Italy 13%

Germany 10%

Belgium 20%

100%

3%

5% 4% 6% 8%

8% 8% 4%

80%

The portion of non-ferrous metal volumes exported to China is less than 5%. Services provided 1.1.1.1.3.3 The Group also provides services (around €109 million/year) in the following areas: Equipment (WEEE) In the context of the implementation of the directive on Extended Producer Responsibility, France has chosen to entrust the collection and processing of goods marketed in 15 segments to collective schemes. Since the creation of these segments, the Derichebourg Group has positioned itself with collective schemes that handle WEEE, mainly for processing activities. The Group processes 192,000 t/year of WEEE at 11 sites. The Group is present on three out of five WEEE streams: other non-cooling large household appliances (washing machines, p dishwashers, stove tops); Treatment of Waste Electrical and Electronic 1.1.1.1.3.3.1

11%

28%

60%

15%

17%

13%

40%

2%

20%

33%

34%

0%

Value

Volume

Aluminium NFM from shredder Inox

Zinc Brass

Copper Lead Various

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 p non-ferrous metals;

DERICHEBOURG p 2018/2019 Universal Registration Document 21