DERICHEBOURG - Universal registration document 2018-2019

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Group management report Earnings from businesses and financial position

targets are very rare. Spain will become the Group's second largest country in terms of revenue and assets. In the shorter term, the recycling activity for the first two months of the 2019/2020 fiscal year was relatively stable in terms of volumes. The prices of the different products processed by the Group have risen slightly in relation to the low recorded in October. The expansionary monetary policies implemented by central banks p and the budgetary policies announced by states could promote a recovery in sectors such as construction and infrastructures, which are consumers of the products processed by the Group's customers. A trade agreement between the United States and China, and/or an p easing of the criteria for the acceptance of solid waste in China, would certainly be likely to lead to an increase in commodity prices, as well as volumes exported. Multiservices business The Multiservices business should continue its growth during fiscal year 2019/2020, both in terms of revenue and profitability, notably due to the full-year impact of acquisitions carried out last year. These include, in particular, the acquisition of Grupo Net – Silnet in Spain in the cleaning business, Immedia Services in temporary recruitment and 10 companies or businesses acquired in France in the cleaning business.

Significant changes in the trading position, 3.2.5.2 information on trends Environmental Services business The geopolitical crises of recent months, which have affected the recycling business, do not call into question long-term trends in the steel market, in which steel from electrical mills and non-ferrous metals from the recycling stream are likely to play a growing role: Much lower CO 2 emissions than primary production, equivalent p to a ratio of 1:2.3; Lower energy consumption per tonne produced; p Locally available resources and preservation of local jobs. p The Group, whose strategy forms part of a long-term vision for this market, has adapted its business model to withstand economic fluctuations effectively, as fiscal year 2018/2019 has just demonstrated: Low inventory levels to avoid exposure to price fluctuations, and the p search for satisfactory unit margins; Dense coverage across France, ensuring the cost effectiveness of p specialized sorting lines, and vertical integration that generates added value. The acquisition of Lyrsa, the leading player in metal waste recycling in Spain, which is due to close very shortly, fits into this long-term vision of acquiring positions of a critical size in strategic markets where

Profit forecasts 3.2.5.3 The Group does not quantify the profit forecast.

The Group’s net financial debt 3.2.6

Opening debt at 09-30-18

95.1

Property, plant and equipment and intangible capital investments

144.3

Recurring Ebitda

(191.2)

Non-recurring items with a counterpart entry in cash and cash equivalents

4.5

Acquisitions

17.0 (8.0)

Disposals of companies Financial expenses paid

9.7

Taxes paid

20.7 (0.9)

Change in working capital requirement

Impact of IFRS 5

1.1

Other

(7.0) 85.6 22.4 16.9

Subtotal before shareholder flows

Dividends paid

Buyback of own shares

Closing debt at 09-30-19

124.9

The Group has a healthy financial structure. Its leverage ratio (net debt to recurring Ebitda) is 0.65 and its gearing ratio (net debt to equity) is 0.24.

The Group has ample leeway to implement its investment projects, and a robust financial liquidity position.

DERICHEBOURG p 2018/2019 Universal Registration Document 97