DERICHEBOURG - Universal registration document 2019-2020

3

Group management report Earnings from businesses and financial position

Financing andchanges inindebtedness 3.2.6 On March 19, 2020, the Group signed a new syndicated loan to finance the Group's general needs, including the refinancing of the acquisitionof the Lyrsa Group. The loan was made available to Derichebourg SA, the borrower, on March 31, 2020. The balance of the previous syndicated loan was repaid on the same date (refinancing loan of €31.8 million and undrawnRCF of €100 million). The new syndicated loan includes a €240 million Refinancing Loan (drawn) and a €100 million Revolving Credit Facility (currently undrawn). The term of the loan is 5 years, with an option to extend it twice a year, subject to the agreementof the lenders. The Group's financialdebt over the year changedas follows:

Profit forecasts 3.2.5.3 After the first two months of activity, the Group expects the recurring EBITDA published for the 2020/2021fiscal year to increase from 15% to 20% compared to the published recurring EBITDA for 2020, which should result in a 30%-45% increase in recurring operating profit. It also expects the amount of tangible investments to be less than 50% of published recurring EBITDA. This forecast is based on the following assumptions:

no worseningof the health situation; p absenceof a major geopoliticalcrisis; p

no additionalhindranceto trade flows of recycledrawmaterials. p The forecast has been developedand prepared on a comparablebasis with the historical financial information, and in accordance with the Issuer'saccountingmethods.

In €M

-100 -50 0 50 100 150 200 250 300 350 400

341.1

8.8

65.1

191.7

124.9

27.5

17.5

58.1

4.8

96.8 12.3

-27.3

-180.9

Others

Dividends

Investments

Acquisitions

Change in WCR

Recurring EBITDA

Net debt Sept19

Net debt Sept20

Net financial expenses

Corporate income taxes

New rights of use IFRS 16

First-time adoption of IFRS 16

Sub-total of net debt Sept20

The recurring Ebitda achieved by the Group during the fiscal year has alreadybeen detailedin the previoussections. Concerning investments, it should be noted that they include a “non-recurring” amount of €14 million related to the acquisition of two real estate complexes in the Paris region in which the Group operates shredders. Restated for this acquisition and the impact of IFRS 16 on Ebitda, the reinvestment rate is 54%, which is consistent with the Group's long-standingpractices (50% to 60%). It should be noted that since the Covid-19 crisis, the Group has reduced its investments. The main industrial investmentmade during the fiscal year concerned the copper cable shot-blasting line at the Saint-Marcel (71) site, amountingto €9.5 million.Productionhas reachedcruisingspeed since September 2020. The improvementin working capital requirementsis mainly due to the decreasein DerichebourgEspaña's inventoriessince the acquisition.

The dividendwas paid on February 11,2020, followingthe decisionof the shareholders’meetingof January 31,2020. External growth includes mainly the enterprise value linked to the acquisition of the Lyrsa Group and secondarily that of Immedia Services. The impacts of the entry into force of IFRS 16 are detailed in section 3.1.3. The Grouphas a healthy financial structure. Its leverage ratio (net financial debt to pro forma recurring Ebitda for acquisitions) is 1.84 (contractual commitment:less than or equal to 3) and its gearingratio (net debt to shareholders'equity) is 0.65. The Group has ample leeway to implementits investmentprojects, and a robust financial liquidityposition.

DERICHEBOURG p 2019/2020 Universal Registration Document 103