DERICHEBOURG - Universal registration document 2018-2019

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CSR report (serving as statement of extra-financial performance) Overview of businesses and business model

The share of steel from electric mills in other countries is detailed in the following graph:

In million tons

900

China

800

700

600

500

Production from recycling

400

300

200

Other

Japan

100

India

USA

Russia

South Korea

Germany

Brazil

Taïwan

Turkey

Ukraine

Mexico

Italy

Iran

France

Spain

Vietnam

Canada

Poland

0

9.3%

6.8%

89.5%

80.3%

55.8%

68.4%

76.3%

55.0%

66.6%

69.2%

51.2%

46.6%

32.9%

44.8%

31.2%

39.0%

30.8%

30.0%

24.2%

21.0%

Country in which the Group delivered ferrous scrap metals in 2018

Source: Worldsteel Association.

Steel and ferrous scrap metal trade flows p The ferrous scrap metal market is also sensitive to international steel and ferrous scrap metal trade flows. The intensity of Chinese steel exports significantly influences the European steel market and consequently its need for ferrous scrap metal. Starting in mid-2016, China has sharply reduced its steel exports to Europe due to its strong domestic demand, which has allowed European and Turkish steelmakers to improve their production and

sales in their local market. The Group's European customers, and indirectly the Group, benefited from this situation from mid-2016 to end-2018. Since then, exports of Turkish steel to Europe have increased sharply, because of the weak Turkish domestic market (-30% in apparent steel consumption whilst production only decreased by 10%) as a result of the economic crisis affecting the country. These exports compete with European steelmakers, and, therefore, the Group's main

customers by volume.

DERICHEBOURG p 2018/2019 Universal Registration Document 16