DERICHEBOURG - Universal registration document 2019-2020

3

Group management report Earnings from businesses and financial position

WEEE processing services increased over the fiscal year mainly due to an increase in volumes processed (improved collection by WEEE/collective schemes, and an increase in household appliance replacements). Overall, the negative net income effect was around €60 million. Reducedfees have offset nearly half of this amount. Cost reduction ofover €20 million A reduction in costs of over €20 million limited the impact of the decline in sales marginon results. The main areas of reductioninclude: personnel expenses (including travel expenses), down by p €13.8 million.This €13.8 milliondecreasebreaks down as follows:

Positive contribution from Lyrsaof €15 million over 9 months Lyrsa's contribution to recurring Ebitda over nine months was €14.5 million, despite three very difficult months (April to June). This positiveperformancecan be explainedby: reductionsin inventory; p good performanceon non-ferrousmetals (copper in particular); p a reductionin operatingcosts. p The lead refining business experienced supply difficulties during the pandemic, which led to the shutdown of the refinery for almost a month last summer. Improved contribution ofPublic Sector Services in France In the previous fiscal year, the Italian and Moroccansubsidiaries,which have since been sold, contributed€10 millionto recurringEbitda. This year again, the contribution of the French public sector services subsidiaries improved by €7.1 million.As explained above, the division is reapingthe benefitsof its selectiveapproachto the market (contracts with high technical ratings) and its efficientoperationalorganization. Recurringoperatingprofit (loss) Depreciation and amortization charges on fixed assets increased by €15.7 million, including €8.5 million for amortization of rights of use (IFRS 16), and the balance due to the increase in investments during the previousfiscal year. Recurring operating profit for the Environmental Services business amountedto €52.5 million,down €35.7 million,i.e. (-40.5%). The reconciling items from recurring operating profit to operating incomeare explainedin section 3.2.1.

furloughand equivalentschemes:€3.5 million, ● variablecompensationcomponents:€4 million, ● others: €6.3 million; ●

the decrease in energy-relatedcosts (-€2.7 million)and maintenance p costs (-€5.7 million) is directly linked to the drop in volumes processed; the €1.5 million decrease in the insurance item is mainly due to a p drop in the operatingdamagesand losses premium, in return for the Companytaking on a greater share of the risk, in a context in which insurers are withdrawingfrom the environmentalsector due to the risk of fire. Therewere no significantlosses during the year.

The Multiservices business 3.2.3

2020 12 months

2019 12 months

Change

Change %

In millions of euros

Revenue

836.2

857.6

(21.4)

(2.5%) 33.2%

Recurring Ebitda

44.0

33.0

11.0

in % of revenue

5.3% 18.1 2.2% (5.6) (0.2) (1.5) 10.9

3.8% 21.3 2.5%

Recurring operating profit (loss)

(3.2)

(15.1%)

in % of revenue

Nuclear engineering business contracts Restructuring of the Aeronautics division

(5.0)

Result on disposal Temporary aeronautics staffing UK

Result on disposal Cleaning Turkey

Operating Profit (loss)

16.4

(5.5)

(33.7%)

DERICHEBOURG p 2019/2020 Universal Registration Document 99