DERICHEBOURG - Universal registration document 2019-2020

3

Group management report Earnings from businesses and financial position

The Group'sRecyclingbusinesshad a start to the year markedby lower volumes and prices, both sequentially and compared to the previous year. At the end of February 2020, excluding the contribution of volumes contributed by Derichebourg España (formerly Lyrsa), the decline in volumes processed in the Ferrous Metals business was approximately8%. This decline was consistent with the development of steel production in the countries to which the Group delivers its ferrous scrapmetals.

For non-ferrous metals, activity was more or less flat, with a limited declineof 1%at the end of February. Volumesprocessedfor both ferrous scrap and non-ferrousmetals were very low during the period March 2020 - May 2020. The March-May periodwas stronglyaffectedby the strict lockdownin several countries, and particularlyFrance and Spain, the two main countries in which the Groupoperates.

As soon as the lockdownwas lifted, business picked up again, and by the end of the fiscal year, at comparablescope, output was comparable to input at the beginningof the fiscal year for ferrous scrapmetal and non-ferrousmetals, as illustratedin the two tables below:

In thousand tons

In thousand tons

400

100

350

80

300

250

60

200

40

150

100

20

50

0

0

oct-19

oct-19

jan-20

jan-20

feb-20

feb-20

july-20

july-20

dec-19

dec-19

nov-19

nov-19

aug-20

aug-20

sept-20

sept-20

may-20

may-20

april-20

april-20

june-20

june-20

march-20

march-20

Ferrous metals excluding Lyrsa Lyrsa ferrous metals

NFM excluding Lyrsa NFM Lyrsa

Derichebourg España (formerly Lyrsa) contributed the following volumesfor the 9-monthperiod:

It should be noted that Derichebourg España temporarily halted its low-marginscrap trading activity, which consisted in placing suppliers' metric tons with steelmakers,without passing through its own yards, because of a drop in the credit insurers' approvals for one customer in particular.

ferrous scrapmetal: 323 thousandmetric tons; ● non-ferrousmetals: 125 thousandmetric tons. ●

DERICHEBOURG p 2019/2020 Universal Registration Document 97