DERICHEBOURG - Universal registration document 2018-2019

3

Group management report Earnings from businesses and financial position

2019

2018

Change

In millions of euros

Environmental Services

1,846.7

2,116.4

(12.7%)

Multiservices

857.6

802.5

6.9%

Holding companies

0.8

0.8

(4.8%) (7.4%)

Total Group revenue

2,705.0

2,919.7

€1.2 million in respect of a loss on the sale of the companies Plastic p Recycling and Hydrovide.

Recurring Ebitda Recurring Ebitda stood at €191.2 million, down by €11 million compared to the previous fiscal year. This reduction was mainly due to the reduction in the Ebitda of the Environmental Services business. The ratio of Ebitda to revenue was 7.1%, up by 20 basis points compared to the previous fiscal year, thanks to the preservation of unit margins in a context of lower prices. Non-recurring items In 2019, non-current items amounted to €(5.6) million and were mainly related to the financial impact of technical and organizational problems in the nuclear engineering subsidiary, which was sold on October 1, 2019. During the previous fiscal year, this amounted to €(22) million and comprised: €9.5 million paid to Rotamfer to end all litigation associated with an p acquisition project initiated in 2007 and abandoned in 2009, due to non-fulfillment of the conditions precedent from the Group’s point of view, and to the Group’s wrongful conduct according to the seller. A transaction put an end to ten years of dispute and several litigation proceedings, the outcome of which was uncertain; €0.6 million in additional expenses in respect of a transaction p opposing the Italian subsidiary CRS to a former lessor. The transaction amounted to €1.6 million; €7 million in respect of the expected loss in the sale of Italian p subsidiaries San Germano and CMT (household waste collection and waste treatment); €3.7 million in respect of a first-instance ruling by the Commercial p Court of Paris under the terms of a judgment in proceedings opposing the Veolia Group to Poly-Environnement subsidiaries (household waste collection) and concerning staff transfer conditions in 2014. The Group has appealed this judgment;

Operating profit (loss) After taking into account €88.5 million in depreciation (an increase of €4.4 million year-on-year), operating profit was €97.5 million, up €1.2 million (1.3%) compared to the previous fiscal year. Profit (loss) before tax After deducting €9.7 million in financial expenses (down €2.0 million compared to the previous year), and €0.7 million in other net financial expenses, pre-tax profit amounted to €87.0 million, an improvement of €3.6 million, i.e. 4.4%. Results of discontinued activities The item Net income from discontinued or held-for-sale operations included, during the previous fiscal year, the impact of €3.4 million resulting from the dispute with regarding the Servisair liability guarantee compared with the amount provisioned. Consolidated net profit After taking into account corporate income tax of €30.5 million, a sharp increase compared with last year relating primarily to the replacement of the CICE (tax credit) by reductions in employers' contributions (taxable profit), consolidated net profit amounted to €58.9 million, down 18.8% compared to the previous year. Earnings attributable to the shareholders of the consolidating entity amounted to €55.6 million. Earnings per share Earnings per share were €0.35 compared to €0.43 last year.

DERICHEBOURG p 2018/2019 Universal Registration Document 91