DERICHEBOURG - Universal registration document 2018-2019

1

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

their related infrastructures, namely land, concrete slabs, and electricity supplies.

Property, plant and equipment, significant 1.1.1.3 non-current assets The Group’s Environmental Services is a heavy consumer of equipment: shredders, shears, inductors, collection and sorting machines, as well as

The Group’s strategy is to be the owner or economic beneficiary of all long-term assets that it uses frequently. The table below details the main families of assets and equipment used in the Recycling business:

Family

Number and comments

Land

400 hectares owned and operated

Shredders

28 shredders in use

Shears

64 shears in use

Stationary cranes

64 stationary cranes, almost all electric

Trucks

570 trucks, with a policy for renewal to meet the latest environmental standards

The table below breaks down the carrying amount of these assets:

09-30-19

09-30-18

In millions of euros

Gross value

1,398

1,466

Accumulated depreciation

(932)

(1,012)

Net value

467

453

NB: The above figures also include the value of assets belonging to Holding companies, who own the land used by Environmental Services.

Wherever possible, the Derichebourg Group prefers to purchase the land on which it operates its Environmental Services provision. The Group owns, via Derichebourg Immobilier and its subsidiaries, over 4,000,000 m 2 of land used by the Environmental Services business. In view of its long-standing ownership of certain land, there may be unrealized capital gains between their value and their historical cost. During the transition to IFRS standards, the market value of land at January 1, 2004 was considered to be the cost in certain cases. A variance (net of deferred taxes) of €41 million was recognized in shareholders’ equity and in property, plant and equipment. In the Recycling business, the value of the assets declared to insurance companies is approximately €1,000 million. Research and development business 1.1.1.4 Environmental Services is continuing its efforts to increase its returns on the processing of end-of-life consumer goods. One of the aims is to succeed in recovering all or part of the shredding residues either in the form of materials or energy. The objective is to reduce the volumes sent to landfill by 20% by 2022 (for equal volume treated by shredders). Durable businesses have been developed to deal with used tires, certain types of plastic and part of the shredding residues, which are turned into alternative fuels. Derichebourg Environnement now produces 31,000 tons per year of alternative fuels for cement plants.

Multiservices business 1.1.2 Multiservices markets 1.1.2.1 Multiservices includes many businesses that have two points in common: the desire of customers to outsource certain functions in order to p concentrate on their core business; the services provided are labor-intensive. p In this division, the Group is present mainly in France (89% of revenue), Portugal, Spain, and Germany. Business portfolio 1.1.2.2. Derichebourg Multiservices is a key player in outsourcing services for industrial and service sector companies, as well as for public services and local authorities. A world leader in local services, Derichebourg Multiservices offers its customers four complementary solutions: services: flexible offers that guarantee the proper functioning of p buildings, facilities and occupant well-being; industry: “tailor-made” expertise in global industrial subcontracting p to benefit customer production; urban area: a set of services dedicated to cities and urban p infrastructure for a higher-quality living environment; HR & Temporary Sourcing: solutions to provide resources to p customers and strengthen their skills while overcoming the inherent constraints.

DERICHEBOURG p 2018/2019 Universal Registration Document 23