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

Property, plantand equipment, significant non-currentassets 1.1.1.3 The Group’s EnvironmentalServices is a heavy consumerof equipment:shredders,shears, inductors,collectionand sortingmachines,as well as their related infrastructures,namely land, concreteslabs, and electricitysupplies. The Group’sstrategy is to be the owner or economicbeneficiaryof all long-termassets that it uses frequently.

The table belowdetails the main familiesof assets and equipmentused in the Recyclingbusiness:

Family

Number and comments

Land

465 hectares owned and operated

Shredders

28 shredders in use

Shears

67 shears in use

Stationary cranes

64 stationary cranes, almost all electric

Trucks

490 trucks, with a policy for renewal to meet the latest environmental standards

The table belowbreaks down the carryingamountof these assets:

09-30-20

09-30-19

In millions of euros

Gross value

1,412

1,398

Accumulated depreciation

(934)

(932)

Net value

478

467

NB: The above figures also include the value of assets belonging to Holding companies, who own the land used by Environmental Services.

Wherever possible, the Derichebourg Group prefers to purchase the land on which it operates its Environmental Services provision. The Group owns, via Derichebourg Immobilier and its subsidiaries and via Derichebourg España, over 465 hectares of land used by the EnvironmentalServices business. In view of its long-standingownership of certain land, there may be unrealized capital gains between their value and their historical cost. During the transition to IFRS standards, the market value of land at January 1, 2004 was consideredto be the cost in certain cases. A variance (net of deferred taxes) of €41 million was recognized in shareholders’ equity and in property, plant and equipment. Research and developmentbusiness 1.1.1.4 EnvironmentalServices is continuingits efforts to increase its returns on the processing of end-of-life consumer goods. One of the aims is to succeed in recoveringall or part of the shreddingresidues either in the formof materialsor energy. The objectiveis to reduce the volumessent to landfill by 20%by 2022 (for equal volume treatedby shredders). Durablebusinesseshave been developedto deal with used tires, certain types of plastic and part of the shredding residues, which are turned into alternativefuels. Derichebourg Environnement now produces 31,000 tons per year of alternativefuels for cementplants.

Multiservices business 1.1.2 Multiservices markets 1.1.2.1 Multiservices includes many businesses that have two points in common: the desire of customers to outsource certain functions in order to p concentrateon their core business; the servicesprovidedare labor-intensive. p In this division, the Group is presentmainly in France (85%of revenue), Portugal,Spain, and Germany. Business portfolio 1.1.2.2 DerichebourgMultiservices is a key player in outsourcing services for industrial and service sector companies, as well as for public services and local authorities. A world leader in local services, DerichebourgMultiservices offers its customers four complementarysolutions : services: flexible offers that guarantee the proper functioning of p buildings,facilitiesand occupantwell-being; industry: “tailor-made”expertise in global industrial subcontracting p to benefit customerproduction; urban area: a set of services dedicated to cities and urban p infrastructurefor a higher-qualityliving environment; HR & Temporary Sourcing: solutions to provide resources to p customers and strengthentheir skills while overcomingthe inherent constraints.

DERICHEBOURG p 2019/2020 Universal Registration Document 23