DERICHEBOURG - Universal registration document 2019-2020

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Group management report Earnings from businesses and financial position

Revenue is down comparedto the previous fiscal year, as the expenses re-invoiced to the subsidiaries (mainly strategic assistance and brand royalty agreements)decrease less than the operatingexpenses, so that the operatingincome (down €2.4 million)is €500 thousandlower than the previous fiscal year. The net financial income was €18.8 millionhigher than last year. It is explained by the amount of dividends received from the subsidiaries: Derichebourg Environnement (€38 million, higher than the previous

year), DerichebourgMultiservicesHolding (€10.5 million),Derichebourg Immobilier SCI (€2.1 million),and by financial expenses being slightly higher than last year. The non-recurringgain (loss) is negligible. Corporate income tax, calculated as part of the tax consolidation system, representsan expenseof €2.2 million. Net profit (loss) was significantlypositiveat €41.5 million.

In accordancewith Article L. 441-6-1of the FrenchCommercialCode, the paymentschedulefor Derichebourg’strade payables is shownbelow:

Due

Not yet due

Total

In millions of euros

Non-Group suppliers Intra-Group suppliers

0.1 0.1 0.2 1.5

0.1 0.1 0.2 1.5

Total

0.0

Outstanding invoices

Total suppliers and related accounts Derichebourg SA

0.0

1.7

1.7

The holding company does not have significant receivables relating to third parties outside the Group (see schedule of receivables and payables presented in section 3.4of the notes to the parent company financial statements). Furthermore: none of the expenses referred to in Article 39-4 of the GTC were p incurredover the fiscal year; the Companydid not incur any researchand developmentcosts. The p Group’s research and developmentactivities are detailed in 1.1.1.4 and 1.6.1.2; the following investmentswere made and thresholdscrossed during p the courseof the fiscal year: upwards:none, ● downwards: Prosimetal (recognition of liquidation): 50% and ● 33.33%thresholds,Reyfra (intra-groupreclassification):50% and 33.33%thresholds. Events occurring after year-end 3.2.5.1 On October 31, 2020, a second lockdown (less strict than the first), started, for an initial duration of one month. As of the date of the Board of directors' meeting, the impact of the second lockdown on economicactivity in general and on that of the Group is relativelysmall. information ontrends During this unprecedentedyear, the Group benefitedfrom the diversity of its businesses and the different economic cycles to which they are exposed, which made it possible to diversify risks and to limit the impact of the extremely brutal economic crisis that occurred in the spring, with the help, of course, of the measures implementedby the public authorities. Significantchanges in thetrading position, 3.2.5.2 Outlook 3.2.5

EnvironmentalServices business While hopes of resolving the health crisis, particularly through vaccination, are being fulfilled in the fiscal year that has just begun, and provided that the geopolitical situation remains under control (Turkey, USA, etc.), the Group predicts a positive outlook for the comingfiscal year: reasonably sustained demand for scrap metal from European ● customers,with slightly strongerdemandin Turkey; non-ferrous metal prices rising sharply, indicating rising demand ● or fears of shortages (e.g. call from the Chinese market from January 1,2021 for copper shot); further consolidationof DerichebourgEspaña (formerlyLyrsa). ● Moreover, the current temporary situation does not call into question the long-term trends in the steel market in which steel from electric steel mills and non-ferrous metals from the recycling industry are set to becomeincreasinglyimportant: much lower CO 2 emissions than primary production, equivalent ● to a ratio of 1: 2.3; lower energy consumptionper ton produced; ● locally availableresourcesand preservationof local jobs. ● firstly, the revaluationof the cleaningbusiness in the context of the p health crisis, and secondly a reduction in footfall to commercial premises in whichnot all occupantshave returnedto work in person; growth in the Cleaningbusinessrevenue in the IberianPeninsula; p decline in temporary work in some sectors (specializeddistribution) p with stronggrowth in others (logistics); Over the first six months of the fiscal year, the Aeronauticsbusiness p (outsourcedservicesand temporarywork) should remainat least at a pace comparableto that experiencedin the second half of the 2020 fiscal year. Therefore there should not be any major fluctuations in the division's revenue. Multiservices business The Multiservicesbusiness is facing conflictingtrends:

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