DERICHEBOURG - Universal registration document 2019-2020

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

In France, the Group estimates that it has a 16% to 17% share of the ferrous scrap metal collection market, and about 23% (Derichebourg estimate based on 2018 data from Federec) of the processingmarket (the differencebetween the two figures can be explained in particular by the tonnages purchased from waste collectors who do not have industrial facilities). The second-largestactor with a national presence is the Ecore Group, whose share of the ferrous scrap metal processing market is around 15%-20%(sourceDerichebourg). Boone Comenor (Suez EnvironnementGroup) is very active in tenders for the removalof waste fromautomobilefactories. In each region, the Group also competes with a large number of regionalplayers that have a few sites. Once prepared and sorted, volumes are sold to domestic steelmakers, or major exporters(about 10%of volumes) if the Group is close to port areas. The table below shows the main destination areas of the Group’s ferrous scrapmetals.

Business portfolio 1.1.1.1.3 The Group’s Recycling business is present in seven countries, with a predominant share of its business conducted physically in France. The table below breaks down the distribution of purchases by country (ferrous scrapmetal and non-ferrousmetals).

Italy 2%

Mexico

3%

Germany

6%

Belgium 6% USA 9% Spain 11%

France 65%

The Group operates in 200 recycling centers, of which 162 are in France. This businessemploysabout 3,000 employees. In this activity, the features that distinguish the Group from its competitorsare: the densityof geographicalcoverage; p the vertical integrationmade possible by this coverage: the Group’s p vast network, which allows it to cost-effectively install secondary processing lines (flotation, aluminum refinery, stainless steel waste mixture preparation, preparation of primary aluminum for extruders),which are suppliedwith flows from various sites, without the need for significantpurchasesoutside the Group; the managementof operationswith a long-termperspective,which p is reflected in particularby a low-inventorypolicy: 15 days of activity for ferrous scrap metal, 15 to 25 days for non-ferrousmetals. In a period when prices are rising, the Group benefits less from recovery than some of its competitorswho hold more inventory. It generally weathers lower-priceperiods better than its competitors,which may put it in a position as a consolidating actor at the bottom of the cycle. 1.1.1.1.3.1 The Group processed3.16 millionmetric tons of ferrous metals during the year, down 8.3%by volume from the previousyear. In France, the Group has the largest network in the sector (162 sites). Since transportationaccounts for a large part of incomingwaste costs, this proximityto waste productionsites is strategic. Derichebourg Environnement prepares ferrous scrap metal, using 28 shredders and 67 shear balers to produce materials that comply with high-qualitystandards: eliminationof impurities, compliancewith specifications and calibration of batches. The recovered products are destinedprimarilyfor electric steel mills, foundriesand convertersin the long steel industry. Ferrous metals

Portugal 2% Netherlands 1%

Mexico 4% Others 3% Turkey 3%

USA 7%

France 33%

Luxembourg 7%

Germany 8%

Belgium 8% Italy 9% NB: The impact of the acquisition of Derichebourg España over nine months. The Group is trying to keep its inventories low (about 15 days of activity) in order to limit its exposure to changes in ferrous scrap metal prices. The Groupdoes not operateany steel mills. The Group’s shredding business generates shredding residues (a mixture of foam, plastic, glass, wood, etc.) that cannot be marketedas such. The Group is conducting several development actions to constantly improve recovery rates (energy or material) and limit volumes sent to landfill, which amounted to approximately 133,700 tonsin 2020 (Francescope).

Spain 16%

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