DERICHEBOURG - Universal registration document 2019-2020

3

Group management report Earnings from businesses and financial position

2020

2019

Change

In millions of euros

Environmental Services

1,627.4

1,846.7

(11.9%)

Multiservices

836.2

857.6

(2.5%)

Holding companies

0.4

0.8

(43.7%) (8.9%)

Total Group revenue

2,464.1

2,705.0

Cost of restructuring initiated in the various French recycling p subsidiaries following the very sharp drop in volumes during the lockdownperiod (€1.6 million) Revaluation of monitoring costs for the next 30 years of the CRS p discharge(Italy) (€2.3 million) In the Multiservicesbusiness Major restructuringcosts of €5.6 millionin subsidiariesrelated to the p aeronauticscycle, including: €3.6 million in severance costs for the 163 employees who ● refusedthe CollectivePerformanceAgreement(CPA); €0.9 million for a redundancy plan at DerichebourgAeronautics ● RecruitmentFrance; €0.9 million for a redundancy plan at DerichebourgAtis Iberica; ● and €0.2 millionof restructuringcosts in the Germansubsidiary. ● Negativeresults for the disposalof subsidiaries: p loss of €0.2 million following the sale of the Temporary ● AeronauticalWork business in the UnitedKingdom; loss of €1.5 millionfollowingthe sale of the Turkishsubsidiary. ● In the Holding companiesbusiness Restructuringcosts of €0.2 millionincurreddue to the lockdown ● Operatingprofit The Group's operating profit (loss) was down €41.3 million on the previousperiod, representingan unfavorabledifferenceof 42.4%. Pre-tax profit(loss) After taking into account €12.3 million in financial expenses (an increase of €2.6 million compared to the previous fiscal year), and other financial expenses of €2.3 million, the Group's pre-tax profit came to €41.5 million, down by €45.5 million compared to the previousfiscal year. Consolidated net income(loss) After taking into account a corporate income tax charge of €19.5 million, resulting in an apparent tax rate of 47%, the consolidated net income is €22.4 millionmost of which goes to the shareholdersof the consolidatingentity (€21.3 million).

RecurringEbitda Recurring Ebitda is €180.9 million, an apparent limited drop of €10.4 millioncomparedto last year. RecurringEbitda for this fiscal year is calculatedby taking into account a cancellationof rental and leasing charges that were not consideredas financial leases under IAS 17 and which give rise to the recognitionof a right of use under IFRS 16, the amortization of which is shown under recurring Ebitda, i.e. a €20.9 millionimprovementin Ebitda compared to what it would have beenwithoutapplicationof this standard. The decline was driven by lower volumes in Environmental Services (particularlyduring the French 55-day lockdownperiod) and to a lesser extent unit margins on ferrous metals, despite an improvement in the profitabilityof the servicesbusiness. The pro forma recurring Ebitda including the annual Ebitda of the acquisitionsmade during the year is €185.9 million. Recurringoperatingprofit After taking into accounta depreciationof €118.9 millionover the year (including €20.4 millionrelated to the difference between IAS 17 and IFRS 16), compared with a depreciation of €88.5 million last year, recurring operating profit (loss) came to €62.4 million, down 39.5% comparedwith last year. The items that explain the transition from recurring operating income to operatingincomeare as follows: In the Environmental Servicesbusiness Positive result of €7.7 million from the change in consolidation p methodfor the SpanishsubsidiaryReyfra (fromequitymethodto full consolidation) following the acquisition of the 50% not previously held as part of the Lyrsa acquisition Loss of €2.3 million following the sale of the Italian subsidiary AEP p Multiserviziin December 2019 Loss of €2.8 million following the sale of 51% of Derichebourg p Aqua (and its subsidiary Derichebourg Aqua Océan Indien) in the context of the strategic partnership with Saur, entered into on August 6,2020 Profit of €3.7 million following the victory on appeal in the p proceedings initiated by Veolia relating to the 2014 transfer of personnelon householdwaste collectioncontracts in Paris (11 th , 18 th and 19 th districts) Cost of restructuring initiated at Lyrsa after the acquisition p (€1.2 million)

DERICHEBOURG p 2019/2020 Universal Registration Document 95