DERICHEBOURG - Universal registration document 2019-2020

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Group management report Earnings from businesses and financial position

Services Revenues from Services fell by 19%, mainly due to changes in the scope of consolidation (disposal of operations in Morocco and Italy during the previousyear). Conversely, revenue for Public Sector Services in France grew by 16%, thanks to the full-year contributionof contractswon last year (primarily householdwaste collections in the 10 th and 18 th districts of Paris), and to new contracts won during the fiscal year (Levallois-Perret, La Garenne Colombes and Coeur de Nacre in particular). Derichebourg Environnement'sstrategy of positioningitself only on contracts that do

not only value price, but which also take into account service quality through local supervisionand technologicalinnovation,is paying off. A significant contract with annual revenue of €10 million is set to begin on April 1, 2021 (Caen-laMer). The net income (revenue for Services + sales margin) from WEEE services is increasing. The post-lockdownperiod has lent itself to the recoveryof the large householdappliancessector. DerichebourgEspaña'scontributionto services revenue is €5 million.

RecurringEbitda For EnvironmentalServices, recurringEbitda amountedto €142.2 million,down 12.3%comparedto the previous fiscal year. It includes €8.8 million of cancellationof rental and leasingexpensesin applicationof IFRS 16.

In €M

180

162.1

160

142.2

8.8

14.8

7.1

140

1.5

-1.6

5.7

120

13.8 2.7

-31.8

-10.0

-6.5

100

-24.4

80

60

40

20

0

Others

Fall in Energy *

Lyrsa nine-month EBITDA contribution

Impact of IFRS 16

Disposal of Italy and

NFM volume effect *

Fall in Maintenance *

Morocco Collection

Partial self-insurance of accident insurance risk *

EBITDA improvement for French local governments

ferrous metals MU effect *

Decrease in personnel costs *

ferrous metals volume effect *

Recurring EBITDA 2019 ENV Sces

Recurring EBITDA 2020 ENV Sces

* Scopeprior to theacquisition of Derichebourg España (formLeyrrlsya).

Negative impact on net income:Fall of approximately€60 million Recyclingsales marginwas negativelyimpactedby: a volume effect on ferrous scrap metal (-€32 million) processed at p recycling centers, at constant scope, with an 18% drop in volumes. Approximately 50% of this decrease is attributable to the period from mid-March to mid-May 2020, which coincided with the lockdownperiod; a unit margin effect on ferrous scrap metal (-€6.5 million), all of p whichwas recorded in the first half of the year, as the sharp drop in prices at the beginning of the first half of the year made it impossible to pass on the full impact of the drop in sales prices to purchases;

a volume effect on non-ferrousmetals (-€24.4 million),mainly due p to the lockdown. Volumes at constant scope are down 20%. It shouldbe noted that the negativeunit margineffect recordedin the first half (-€8 million)was fully recoveredin the secondhalf, and that over the full year, unit margins on non-ferrous metals taken as a whole were stable. The rise in copper and aluminum prices (Metal Bulletin index) at the very end of the year explains this recovery.

DERICHEBOURG p 2019/2020 Universal Registration Document 98