DERICHEBOURG - Universal registration document 2019-2020

1

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

The table below summarizes the price changes in shredded ferrous scrapmetal (E40) in recent years:

The non-ferrous metalsrecycling market (NFM) 1.1.1.1.2 The actors in both ferrous and non-ferrous scrap metal recycling are often the same. The volumes of non-ferrous metals processed by collectors are much lower (often one-tenth of the volume) than for ferrous scrap metals. Conversely, unit prices are much higher, as are unit margins. The table below summarizes global production of major non-ferrous metals, as well as the share of productionfrom recycling. The tonnage collected in France by NFM operators is 1.91 million metric tons (2019 figures)with an equivalentvalue of €2.7 billion. For the French market (67% of tonnage collected by the Group) the breakdownof non-ferrousmetals collectedis as follows: aluminumand aluminumcables: 23%; p

€350

€300

€250

€200

lead and batteries:10%; p stainlessand alloys: 16%; p copper excludingcables and motors:9%; p copper cables: 9%; p brass alloys: 4%; p zinc: 4%; p other: 25%. p Source: Federec,key recyclingfigures 2019.

€150

€100

oct.

oct.

oct.

oct.

feb.

apr.

feb.

apr.

feb.

apr.

feb.

apr.

dec.

dec.

dec.

dec.

june

june

june

june

aug.

aug.

aug.

aug.

2017

2018

2019

2020

E40 ex 33 (shredding product)

NFM are found primarily in buildings, packaging, automobiles and industrialequipment.User industriesare essentiallyfoundries,refineries and other heavy industries. Recycling of end-of-life products will become increasingly essential since it is the only source of secondary non-ferrous metal, whereas primary resources are shrinking. Several other factors also favor the development of non-ferrous metal recycling. First, the production of primary ore is nonexistent in many areas of the world. Recycled products are thus the only “surface mine” available and are also a renewable source; in all cases, the reutilization of recovered products leads to savings in rawmaterials.

Source:Derichebourg. Waste supply p

End-of-life consumer goods (around 80%, including industrial demolition)and productionwaste from steel processing(around 20%) provide ferrous scrap metal purchaserswith their supplies. The level of general economicactivity therefore influencesthe availabilityof ferrous scrapmetal. For the DerichebourgGroup, the breakdownof site inflows by type of supplier is as follows:

Public 2%

Eco-centers 2% Traders 4%

Non-profit 2%

Others 2%

Waste collectors

5%

Demolition

5%

Scrap dealers 38%

WEE/collective schemes 5%

ELV/Garages 9%

Registry of movable property/peddlers 11%

Industry 16%

Source:Derichebourg. Note: All of Derichebourg España's purchases for 2020 have been madewith scrap dealers.

DERICHEBOURG p 2019/2020 Universal Registration Document 18