DERICHEBOURG - Universal registration document 2018-2019

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Group management report Earnings from businesses and financial position

Cash flow 3.2.6.1 The cash flow table is included in 4.1.3. Further information on the conditions of the Group’s lines of financing can be found in note 4.11 of the notes to the consolidated financial statements. Financing structure and borrowing conditions 3.2.6.2 The financing structure and borrowing conditions are detailed in note 4.11 to the consolidated financial statements. At September 30, 2019, the Group was compliant with its various financial covenants and had almost €497 million in undrawn credit lines (excluding undrawn factoring lines, and including non-confirmed lines and the use of cashflow included in the balance sheet). Restrictions on the use of capital 3.2.6.3 Restrictions on the use of capital are shown in detail in note 4.11 of the notes to the consolidated financial statements. Investments 3.2.7 Objectives 3.2.7.1 For many years, the Group has had a policy of regular investment, the objectives of which, by sector, are as follows:

Environmental Services continued expansion of regional coverage; p

better control of sourcing (material flow) by developing a fleet of p collection vehicles and reception centers as well as the energy efficiency of this fleet; maintaining the high quality of production equipment and p standardizing assets; development of plants in urban areas and, in a wider sense, p compliance with environmental requirements; control, where possible, of the land assets of the sites at which the p Group operates; vertical integration by setting up specific sorting lines in order to p keep added value within the Group through more advanced sorting, and to gradually reduce sterile volumes sent to landfill. Business Services development and rationalization of the branch network; p purchase of the materials required for the start-up of contracts won. p Main investments 3.2.7.2. The table below shows the main investments made (recognized in asset accounts, independent of the financing mode, use of own shares or leasing):

2019

2018

2017

In millions of euros

Investments in land or infrastructures

13 77 36

21 67 20

19 37 38

Production equipment

Handling and transportation equipment

Other

0

0

0

Environmental Services subtotal

126

108

94

Cleaning

10

6 5

7 4

Other Multiservices investments Multiservices subtotal Holding companies subtotal

6

16

11

11

3

4

2

Total property, plant and equipment and intangible investments

145

123

107

The year’s investments can be broken down as follows: property acquisition: €5 million; p construction and repair of shredders: €14 million; p acquisition of handling equipment: €15 million; p acquisition of trucks: €14 million; p acquisition and repair of shears: €8 million; p

other: €30 million; p Environmental Services total: €126 million.

For Multiservices, investments are mainly related to work equipment (single-disc machines and cleaning machinery) and the renewal of vehicles. Investments in progress 3.2.7.3 Engaged investment orders for which invoices had not yet been received, totaled €32 million. The Group has also committed to acquiring the Lyrsa Group (see 3.1.4).

WEEE lines: €6 million; p site fittings: €14 million; p household refuse collection dumpsters and related equipment: p €20 million;

DERICHEBOURG p 2018/2019 Universal Registration Document 99