DERICHEBOURG - Universal registration document 2019-2020

3

Group management report Earnings from businesses and financial position

At September 30, 2020, the Group was compliant with its various financial covenants and had almost €621 million in undrawn credit lines (excluding undrawn factoring lines, and including non-confirmed lines and the use of cash flow includedin the balancesheet). 3.2.6.3 Restrictionson the use of capital are shown in detail in section 4.11of the notes to the consolidatedfinancial statements. Restrictions on theuse of capital

Cash flow 3.2.6.1 In addition to the informationpresentedabove, the statement of cash flow is presented in section 4.1.3. Further information on the conditions of the Group’s lines of financing can be found in section 4.11of the notes to the consolidatedfinancial statements. 3.2.6.2 The financing structure and borrowing conditions are detailed in section 4.11to the consolidatedfinancial statements. Borrowing conditionsand financing structure

Investments 3.2.7

Objectives pursued 3.2.7.1 For many years, the Grouphas had a policy of regular investment,the objectivesof which, by sector, are as follows:

EnvironmentalServices continuedexpansionof regional coverage; p

BusinessServices developmentand rationalizationof the branchnetwork; p

better control of sourcing (material flow) by developing a fleet of p collection vehicles and reception centers as well as the energy efficiencyof this fleet; maintaining the high quality of production equipment and p standardizingassets; development of plants in urban areas and, in a wider sense, p compliancewith environmentalrequirements; control, where possible, of the land assets of the sites at which the p Groupoperates; vertical integration by setting up specific sorting lines in order to p keep added value within the Group throughmore advancedsorting, and to graduallyreduce sterile volumessent to landfill.

purchaseof the materialsrequiredfor the start-upof contractswon. p Under the EnvironmentalServices activity, investmentscan generallybe spread over time, given the general condition and number of tools available to the Group. Therefore, the main determinant of the investmentbudget is the available Ebitda. The delay of several months between the commitment of investment orders and their actual completion,due to the delivery times of suppliers, should also be taken into account. As a general rule, the Group strives to maintain its investment effort withina budget representing45 to 60%of its recurringEbitda.

160

80

74%

145

3

140

70

59%

16

124

56%

120

60

57% 52%

4

21

11

107

51%

2

101

2

100

50

11

18

6 12

80

40

30

71

2

64

2

14 11

60

30

13

105

91

40

20

81

21

64

44

20

10

28

0

0

2015 2016 2017 2018 2019 2020

Recycling

Multiservices

Services to municipalities

Holding

CAPEX/Recurring Ebitda

DERICHEBOURG p 2019/2020 Universal Registration Document 105