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

Waste supply p End-of-life consumer goods (around 80%, including industrial demolition) and production waste from steel processing (around 20%) provide ferrous scrap metal purchasers with their supplies. The level of general economic activity therefore influences the availability of ferrous scrap metal. For the Derichebourg Group, the breakdown of site inflows by type of supplier is as follows:

In million tonnes

70

63

60

50

40

Public 2%

Demolition Traders 1% Eco-centers 2%

30

29

30

Non-profit 1%

19

20

12

Others 2%

10

6

5%

WEEE/collective schemes

0

5%

Aluminium

Stainless steel

Copper

Scrap dealers 30%

Waste collectors 5%

Production from recycling Primary production

ELV/ Garages 10%

Sources: World Aluminium, Centre d’Expertise sur l’Aluminium, Bureau of International Recycling (Environmental Benefit of Recycling report, 2016), International Stainless Steel Forum.

Private peolple/peddlers 15%

Industry 22%

The tonnage collected in France by NFM operators is 1.97 million tons (2018 figures) with an equivalent value of €3 billion. For the French market (82% of tonnage collected by the Group) the breakdown of non-ferrous metals collected is as follows: aluminum and aluminum cables: 23%; p

Source: Derichebourg.

The non-ferrous metals recycling market 1.1.1.1.2 The actors in both ferrous and non-ferrous scrap metal recycling are often the same. The volumes of non-ferrous metals processed by collectors are much lower (often one-tenth of the volume) than for ferrous scrap metals. Conversely, unit prices are much higher, as are unit margins. The table below summarizes global production of major non-ferrous metals, as well as the share of production from recycling.

lead and batteries: 10%; p stainless and alloys: 16%; p copper excluding cables and motors: 9%; p copper cables: 9%; p brass alloys: 4%; p zinc: 4%; p other: 25%. p Source: Federec, key recycling figures 2018.

DERICHEBOURG p 2018/2019 Universal Registration Document 18