DERICHEBOURG - Universal registration document 2019-2020

1

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

In addition, the production of secondary, recycled products is much cheaper than manufacturingprimary products from ore. Investments required are, on average, three to four times lower than for refining ore. Energy savings compared to the production of primary metal are about 60% to 80% for copper and 90% to 98% for aluminum – a clear-cut competitive advantage in a context of soaring energy costs and increasinglysevere restrictionson greenhousegas emissions. Even so, production cost savings are partially offset by the costs of collection and by environmental restrictions in industrialized nations. These limitations are less restrictive in emerging countries, which increasingly use this type of production and import recuperated products. The recovering of end-of-life products alone accounts for approximately 35% of global non-ferrous metal production (source: Bureau of InternationalRecycling). The global demand for non-ferrous metals correlates strongly with changes in the global industrial productionindex. A major shift occurred in 2018, with China’s decision to publish very strict specifications for impurity levels in 19 classes of products (including non-ferrous metals) in order to import them into China. These maximum rates are in practice very difficult to achieve, and the volume of Chinese imports has decreased significantlysince the spring of 2018. Consequently, the volumes previously consumed by China have shifted to other markets, resulting in downwardpressure on the prices of various non-ferrous metals. The charts opposite summarize the price changesfor variousmetals. It is expected that by January 1, 2021, China will remove the highest grades of non-ferrousmetals (especially copper granulate) from waste status and once again accept importsof these products.

€2,400

$1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 $2,400

€2,200

€2,000

€1,800

€1,600

€1,400

€1,200

oct.

oct.

oct.

oct.

feb.

apr.

feb.

apr.

feb.

apr.

feb.

apr.

dec.

dec.

dec.

dec.

june

june

june

june

aug.

aug.

aug.

aug.

sept.

sept.

sept.

sept.

2017

2018

2019

2020

Price : Aluminium LME Settlement Price : Aluminium Metal Bulletin €

$18,000

€17,100

$17,000

€16,100

$16,000

€15,100

$15,000

€14,100

€7,000

$7,400

$14,000

€13,100

$13,000

€12,100

€6,500

$6,900

$12,000

€11,100

€6,000

$11,000

€10,100

$6,400

$10,000

€9,100

€5,500

$5,900

$9,000

€8,100

$8,000

€7,100

€5,000

$5,400

oct. 19

oct. 18

oct. 17

oct. 16

2020 feb. 20

feb. 19

feb. 18

feb. 17

apr. 20

apr. 19

apr. 18

apr. 17

dec. 19

dec. 18

dec. 17

dec. 17

june 20

june 19

june 18

june 17

aug. 20

aug. 19

aug. 18

aug. 17

€4,500

$4,900

2017

2018

2019

Price : Nickel LME Settlement Price : Nickel Euro

€4,000

$4,400

It should be noted that these graphs, and especially those for copper and nickel, imperfectly reflect the change in the Group's sale prices, which are based on the LME prices, but which also take into account a discount for the secondary metal. This discount changes according to market conditions. For the specific case of stainless steel (which containson average7% to 8% of nickel, comprisingthe main value of stainless steel), the discount grew in line with the growth in nickel prices, cancellingthe effect of the increase.

oct. 19

oct. 18

oct. 17

oct. 16

2020 feb. 20

feb. 19

feb. 18

feb. 17

apr. 20

apr. 19

apr. 18

apr. 17

dec. 19

dec. 18

dec. 17

dec. 17

june 20

june 19

june 18

june 17

aug. 20

aug. 19

aug. 18

aug. 17

2017

2018

2019

Price : Copper LME Settlement Price : Copper Euro

DERICHEBOURG p 2019/2020 Universal Registration Document 19