DERICHEBOURG - Universal registration document 2018-2019

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Group management report Earnings from businesses and financial position

Services for customers in the Aerial and Aeronautical industry increased by 6.6%, while non-specialized temp services increased by 5.5%, following a negative start to the year reflecting the reduction in services to the Distribution sector due to demonstrations. Recurring Ebitda was almost unchanged at €5.7 million, or 3.7% of revenue. Urban Area Solutions Urban Area Solutions (maintenance of urban furniture) represented 6% of total revenue over the period, or €52 million. This revenue was up 18%. This increase was attributable to the development of public lighting services and the winning of new customers in the signage and associated services sector. The Ebitda of this sector remained at 0, reflecting a lack of volume in the signage business. For the reasons given above, the recurring operating profit of the Multiservices division stood at €21.3 million, compared with €22.1 million in the previous year. Excluding the negative contribution of the Nuclear Engineering company, the one-time impact in December 2018 due to the lack of CICE and no reduction in employer contributions for companies practicing pay lag, and the loss made on a contract that ended in July 2019, recurring Ebitda would have been improved by €6.4 million. Pro forma Ebitda reflecting these impacts was 4.6%.

Industry Solutions Industry Solutions (dedicated to the aeronautical industry and, for the last time this fiscal year, to the Nuclear Engineering sector) represented 16.7% of the total revenue of the Multiservices business. The revenue of Industry Solutions amounted to €143 million. It was down 2% on a comparable basis, but a distinction should be made between the growth in Aeronautical Services (+6.6%) and the very sharp reduction in Nuclear sector activities (down by around 90%). Derichebourg Services & Ingénierie nucléaire was sold on October 1, 2019. Recurring Ebitda for Industry Solutions amounted to €7.7 million, up €2.0 million compared to last year. This was due to the improvement in the positive contribution from the Aeronautical businesses to recurring Ebitda (€11.5 million, i.e. 8% of revenue, up by €3.9 million) and the negative contribution of the Nuclear Engineering business to recurring Ebitda of €(3.7) million (compared to €(1.9) million last year). In the context of the sale of this company, a non-recurring expense of €(5) million was also recognized. During the fiscal year, Derichebourg Atis Aéronautique notably supported the development of its main customer in Canada and established a base in China.

HR Sourcing Solutions

HR Sourcing Solutions (temporary work) represented 17.8% of total revenue for the period, or €153 million. Revenue was up by 5.8%.

Holding Companies 3.2.4

2019

2018

Change %

In millions of euros

Revenue

0.8

0.8

-

Recurring Ebitda

(3.9)

(4.2)

N/A

in % of revenue

N/A

N/A

Recurring operating profit (loss)

(6.4)

(6.7)

N/A

in % of revenue

N/A

N/A

Gain/loss on disposal of subsidiaries

(1.2) (9.5) (7.0)

Italy – balance from dispute with Rotamfer

Italy – impact of the sale of household waste collection and waste treatment businesses

Operating profit (loss)

(6.4)

(24.4)

73.8%

Recurring Ebitda and recurring operating profit (loss) changed little compared to the previous fiscal year. These are headquarters costs that are not rebilled to operating activities.

(Derichebourg Environnement and Derichebourg Multiservices Holding). It also holds the securities of Derichebourg Immobilier, the direct or indirect owner of the Group’s real estate assets. In addition, it acts as the Group’s central corporate treasury and holds the syndicated loan agreements and most of the medium-term loans. Derichebourg SA is also the parent company of the French tax consolidation Group.

Derichebourg SA

The main role of Derichebourg SA – the Group’s parent company – is to act as a holding company for the Group’s parent-holding companies

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