Document OJD0GpNQg5r3MLVLGDX4XxdrK

FILE NAME Cape Asbestos CAPE DATE 2017 DOC CAPE190 DOCUMENT DESCRIPTION Annual Report - Altrad completion of public tender of Cape Legal - Tibbs Case Exhibit 88 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMON PLEAS - CASE#203C ~_ P401759 BEGININGS ARE ALWAYS HUMBLE Whether in the heart of the desert or in a French village you start off with very little almost nothing So little that what you are confronted with Brutal imediately is raw adversity Learning to refuse it to overcome or even to contradict it is the first hard lesson the one that gives future development its direction its momentum But beginnings only go on for so long The moment comes when they fade away When after taking the measure of adversity you think of asserting yourself when the horizon opens up before you When having wandered for a long time you leave the desert for the city and its human mosaic when you leave your region to discover other lands It is a new beginning a delicate period a new phase of learning knowledge and people And above all through the experience of diversity the certainty that as much as skills matter everyone must work together with respect for each other With growth comes expansion and the multiplication of ties and stakes comes the day when this community of interest and efforts this collaboration of men and women committed to a common goal strives to take shape When in certain way the work initially sketched out and then shaped over the years reaches maturity when to continue to move forward you need to grow to rise up to move from an informal arrangement to the stature of a group This multiplicity needs to be organised this diversity of men women work To give it the strength to meet ever greater challenges To find an organization that is flexible enough for everyone to find their place their advantage so that everyone can contribute BECAUSE IN THE END IF THIS EDIFICE EXISTS IF IT HAS MANAGED TO CONSOLIDATTOE RISE IS BECAUSE IT WAS MADE BY MEN FOR MEN IN THE SERVICE OF MEN MOHED ALTRAD ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELCTRONICALY ELCTRONICALY ELECTRONICALY LES COMMENCEMENTS ELCTRONICALY ELECTRONICALY ELECTRONICALY ELCTRONICALY FILED SONT TOUJOURS HUMBLES FILED FILED FILED -2023 -2023 Que ce soit au c urdu c^'sertou dans un village fran^aison -2023 -2023 commence avec peu presque rien Si peu que ce ^ quoi l'on se confronte imm^'diatementc'est l'adversit^'brute Brutale parfois Apprendre ^ la refuser ^ la surmonter voire ^ la contreoire telle est 18 la premi^redure le^oncelle qui connera au d^'veloppementfutur 1:13 sa direction sa dynamique PM PM Mais les commencements ont leur temps Vient le moment o^,,ils RICHLAND s'effacent RICHLAND RICHLAND RICHLAND RICHLAND la Quand apr^savoir pris mesure de l'adversit^'on pense s'affirmer RICHLAND RICHLAND lorsque devant soi l'horizon s'^'largit Quand apr^savoir longuement err^'on quitte le d^'sertpour la sa cit^'sa mosa^flquehumaine lorsque COMMON COMMON l'on sort de sa r^'gionpour d^'couvrird'autres contr^'es COM ON COM ON C'est un nouveau d^'partune p^'rioded^'licateune nouvelle phase COMMON d'apprentissage des savoirs et des hommes Et surtout ^ travers COMMON PLEAS l'exp^'riencede la diversit^'la certitude qu'autant que les comp^'tences PLEAS PLEAS importe la collaboration de tous dans le respect de chacun PLEAS PLEAS Avec la croissance l'extension la multiplication des liens et des enjeux CASE se pr^'sentele jour o^,,cette communaut^'d'int^'r^"test d'efforts CASE CASE cette collaboration d'hommes et de femmes engag^'sdans un but #2023CP401759 2023CP40 1759 commun exige de prendre forme 2023CP401759 2023CP40 1759 Quand d'une certaine mani^rel' uvreesquiss^'e^ l'origine puis 2023CP401759 2023CP401759 fa^orn^'efa^orn^'e au fil des ans acc^de^ maturit^'lorsqu'il faut pour 2023CP40 1759 2023CP401759 continuer d'avancer de cro^fitrede se dresser passer d'un ensemble 203CP401759 2023CP40 1759 informel ^ la stature d'un groupe 2023CP401759 2023CP401759 Il convient a ors d'organiser cette multipicit^'multipicit^'cette d versit^'d'hommes de femmes de travail Pour lui donner la force de relever des d^'fis toujours plus importants De trouver une organisation assez souple pour que chacun y trouve sa place son avantage pour que chacun y apporte sa contribution CAR FINALEMENT SI CET ^ DIFICEEXISTE S'IL A PU SE CONSOLIDER S'^ LEVERC'EST PARCE QU'IL A ^ T^FAIT PAR DES HOMMES POUR DES HOMMES AU SERVICE DES HOMMES MOHED ALIRAD ELCTRONIAY # NEWS 06 STEP AHEAD FILED -President's -President's message 08 - Le mot du Pr^'sident09 - 2023 12 KEY FINANCIALS -Key -Key financials IFRS 12 Oct - Les chiffres cl^'sIFRS 12 -Key -Key financials Proforma 14 - Les chiffres cl^'sProforma 14 18 18 ABOUT ALTRAD 1:13 - 2017 highlihts 19 - Les points forts 2017 19 PM - at - Altrac a glance 20 RICHLAND - Altrad at a glance 22 24 VALUES & STRATEGY - Values 24 RICHLAND - Les valeurs 24 - # FUNDAMENTALS - Moving ahead 30 - En route vers l'avenir 30 we COMN - Strategy 33 - La strat^'gie33 36 KEY EVENTS 2017 104 RISK MANAGEMENT How manage risk 106 - Le contr^ledes risques 110 -Key events 2017 40 Internal audit 112 PLEAS - Les faits marquants de l'exercice 2017 41 - L'audit interne 113 - Information technology 114 - 52 MANAGEMENT APPROACH - L'informatique 115 - Group management 53 - Le management 54 - Management control 118 - Le contr^lede gestion 120 - Fintance 124 - Finance 125 # 203CP41759 EXPLORE 56 LIFE CYCLE EXTENSION 126 CORPORATE GOVERNANCE - Governance 128 ~ La gouvernance 131 + Share ownership 132 - Actionnariat et le capital social 132 - Services to industry and construction 58 - Consolioateo accounts 133 - Les services ^ l'industrie et ^ la construction 59 - Les comptes consolid^'s133 68 BUILDING IS OUR LIFE - Scaffolding hire & sale 71 - Vente et location d'^'chafaudages71 - Equipment for construction and local authorities 72 - Mat^'rielpour la construction et les collectivit^'s75 76 SUPPORT FUNCTIONS - Production purchasing sourcing from Asia & logistics 77 - La production les achats le sourcing Asie la logistique 78 84 INNOVATION INSIDE - Innovation in products and services 88 L'innovation produits et services 91 - Strategic ano managerial innovation 92 - L'innovation strat^'giqueet manag^'riale93 96 CORPORATE & SOCIAL RESPONSABILITY - Safety 97 - S^'curit^9'7 ~ Human resources 98 - Ressources humaines 101 - Business ethics 102 - L'^'thique102 06 EDITORIAL STEP AHEAD PRESIDENT'S MESSAGE BECOMING THE WORLD LEADER IN ITS BUSINESSES PROVIDING THE BEST PRODUCTS AND SERVICES TO ITS CLIENTS PRESERVING A HIGH RETURN ON INVESTED CAPITAL GUARANTEEING THE RECURRENCE OF ITS REVENUES AND PROFITS THROUGH WORLDWIDE PRESENCE CAPITAUX CAPITUX NVESTIS REVNUS RECJR PROHLS PAR UNE PR^ SENCEDANS LE MONDE ENTIER 08 EDITORIAL ubscribing to a process of sustainable development has been the group's strategy for many years The acquisition of Hertel in 2015 one of the world leaders in services to industry followed by that of Prezioso in 2016 a major playeirn corrosive treatments in parti- cular offshore responded to this vision directed at growth opportunities abroad They have allowed the group to make a substantial qualitative and quantitative leap marking a decidedly exponential the shift in dynamics of in to industry sector TURNOVER OF 3<.4 BILLION MORE THAN 39,000 EMPLOYEES AROUND 1,700 SITES WORLWIDE The successful completion in September 2017 of the public tender offer for the Cape Group one of the leading providers of industrial services to the energy sector aa remarkable endorsement of the group's capacity to assert itself as a key player in its markets This major strategic reinforcement with Cape in 2016 counting 16,000 employees working in 23 countries with a turnover of 863.5 million will significantly add to a broad and diversified range of services resolutely oriented toward the major industrial clients With a turnover exceeding b<illion and a workforce of 39,000 people the worldwide is true gaignainiingng global leadership Its resilience will be enhanced by recurrence maintenance activities offering better visibility of revenues and geographic positions reducing its to exposure market risks cyclical fluctuations and economic uncertainties BECOMING THE WORLD LEADER IN ITS BUSINESSES PROVIDING THE BEST PRODUCTS AND SERVICES TO ITS CLIENTS ... HAS BEEN THE GROUP'S STRATEGY FOR shifts These major in scale over very short period of time were achieved while preserving the Group's sales historical perimeter hiring and of scaffolding and equipment for construction and local authorities whose performance has also strengthened Combining sustained growth in market share a continuous search for operational efficiency and cost reduction the Group reported total conso- lidated revenues of more than 2<.16 billion at August 31 2017 excluding any impact from Cape a 15 EBITDA and a contained debt in strict compliance with bank covenants To foster its development cash generation remains more than ever an absolute imperative a vital the Beyond performance reflected in EBITDA the Group's ability is to ensure its optimum conversion to free cash flow will have to improve the heart of the excellence expected of our subsidiaries managers will have to pay par- ticular attention to this requirement It is the sole guarantee of our sustainable financial health our ability to repay debts to related our development and essence of our ambition to to continue grow indeed while This is the challenge for the Group its strategy has always been that of sustained external and internal growth its development as illustrated by the recent major acquisitions has never been achieved on such a scale and in such a short period of time This unprecedented level of growth is a significant challenge as companies operate in an environment characterized by volatility uncertainty and complexity and are faced with the paradox of their survival growth necessarily involves growth the very effects of which threaten survival In other words the major challenge is to limit any adverse effects on the fundamentals of the group arising from rapid and significant growth MANY YEARS MOHED ALTRAD sense of collective action loss of vision and values increased organizational complexity dispersion of effort and resources 09 ELCTRONIAY EDITORIAL FILED CHIFFRE D'AFFAIRES inscrire dans une logique de d^'veloppement FILED p^'rennetelle a ^'t^'depuis plusieurs ann^'es - strat^'giedu groupe 3,4 MILLIARDS < 2023 L'acquisition d'Hertel en 2015 un des leaders Oct mondiaux des services ^ l'industrie puis celle de PLUS DE 000 Prezioso en 2016 acteur majeur des traitements 18 anticorrosion notamment Offshore r^'pondaient^ EMPLOY^ S cette vision ax^'esur les opportunit^'sde croissance Elles ont au 1:13 ^ l'international permis groupe de r^'a- liser un saut qualitatif et quantitatif consid^'rable ENVIRON PM donnant ^ la dynamique de consolidation dans le - 1700 IMPLANTATIONS secteur des services ^ l'industrie un tour r^'solument exponentiel ^ TRAVERS LE MONDE RICHLAND Le succ^sen septembre 2017 de l'offre publique d'achat sur le groupe Cape un des leaders de la fourniture de services ^ l'industrie intervenant dans - le secteur de l'^'nergievient conforter de mani^re ^'clatantela capacit^'du groupe ^ s'affirmer comme un acteur incontournable ses march^'sCe ren- sur forcement strat^'giquemajeur Cape comptait ^ COM N 16000 employ^'sen 2016 op^'rantsur 23 pays pour durable de notre aptitude ^ rembourser les dettes li^'es^ notre d^'veloppementet la condition sine qua non de notre ambition de continuer grandir : un chiffre d'affaires de 863,5 millions permet- une tra d'enrichir tr^ssignificativement une offre de PLEAS services large et diversifi^'er^'solumentorient^'e Car le d^'fidu groupe est bien l^ si sa strat^'gie a toujours ^'t^'celle d'une croissance externe et interne soutenues jamais son d^'veloppement te qu'illustr^'par ses acquisitions majeures r^'centes - vers les grands donneurs d'ordre industriels Avec ne s'est fait ^ une telle ^'chelleet dans un tel laps un chiffre d'affaires de plus de 3,4 milliards e<t de temps Cette ampleur de croissance in^'gal^'e un effectif de 39000 personnes ^ travers le monde constitue un challenge de les entreprises taille car le groupe conquiert un vrai leadership mondial ^'voluentdans un environnement caract^'ris^'par Sa r^'siliences'en trouvera accrue par des activit^'s la volatilit^'l'incertitude et la complexit^'et sont de maintenance ^ forte r^'currenceoffrant une meilleure visibilit^'sur ses revenus et des positions confront^'esau paradoxe de la croissance : leur geographiques r^'duisantson exposition aux risques 203CP41759 demarch^'et auxal^'ascycliquesetcanjoncturels Ces grands sauts dans d'^'chelleun temps tr^scourt DEVENIR LE 203CP401759 se sont r^'alis^'stout en pr^'servantle p^'rim^tre historique du groupe secteurs de la location de la vente d'^'chafaudageset des ^'quipementspour la construction et les collectivit^'sterritoriales dont la performance s'est ^'galementrenforc^'e LEADER MONDIAL SUR SES M^ TIERS Combinant une croissance soutenue de ses parts de march^'une recherche continue d'efficience op^'rationnelleet de r^'ductiondes co^tsle groupe affiche au 31 ao^tau terme de san exercice 2017 un chiffre d'affaires global consolid^'de plus de FOURNIR LES MEILLEURS PRODUITS ET SERVICES 2,16 milliards h<ors toute incidence de Cape un EBITDA de 15 % et un endettement contenu dans ^ SES CLIENTS ... le strict respect des covenants bancaires TELLE Pour nourrir son d^'veloppementla g^'n^'ration ^ T^DEPUIS DE NOMBREUSES ANN^ ES de cash reste plus que jamais un imp^'ratifincon tournable une exigence vitale del^ de la performance op^'rationnelletraduite par l'EBITDA du ^ la capacigrtoup^e 'en assurer une conversion optimum en free flow reste un objectif prioritaire Au coeur de attendue de l'excellence nos filiales les managers devront y veiller particuli^re- ment Elle est le seul garant de notre sant^'financi^re LA STRAT^ GIE DU GROUPE MOHED ALIRAD 10 EDITORIAL Aware of the imperative need for agility efficiency and flexibility the Group has set effectively up an organization that is able to evolve according to the structural hurdles the complexity of its environment and the need to stay in touch with its markets This managerial philosophy inspired byahumanist corporate culture and strong values must give greater priority than ever to the modalities of agile operation driven by light holding structure respect for the principles of decentralization and autonomy of the subsidiries favoring an entrepreneurial spirit and a matrix management structure that is constantly reconfigurable the service of this philosophy the efforts undertaken within the holding company to effectively support the subsidiaries activities must be maintained and the key information resulting from the monitoring and control functions embodied in the reports and budgets must be exploited in and close consultation synergy with the managers of these subsidiaries to Thanks its achievements creative and responsive change management financial solidity cultural the diversity and humanist values Group can legi- timately meet the challenges of growth face any and optimize its virtues in the long term in pitfallsa dynamic progress In this it will preserve way a business model geared safety to customer service quality of its services the expertise of its staff and openness to the world Fully engaged in mastering major reconciliations over the last two years while seeking synergies from its global geographical footprint the Group must continue to demonstrate its ability to manage its major balances keep its distance from the red zone and allow room for manoeuvre so that growth is matched with sustainable success I would like to emphasize in this context the decisive nature of the support of our financial partners and by our shareholders and the strength given us their unfailing commitment at our side To live to anticipate the need to survive To grow in this sense a source of freedom and allows us promise to cross the gain line With the of a destiny within the reach of men and women of heart and intelligence engaged in an extraordinary adventure TO LIVE IS TO ANTICIPATE THE NEED TO SURVIVE ... WITH THE PROMISE OF A DESTINY WITHIN THE REACH OF MEN AND WOMEN OF HEART AND INTELLIGENCE ENGAGED IN AN EXTRAORDINARY ADVENTURE MOHED ALTRAD 11 ELCTRONIAY EDITORIAL FILED survie passe n^'cessairementpar la croissance dont dans les reportings et les budgets soient exploit^'es FILED les effets menacent cette survie m^"me en ^'troiteconcertation et synergie avec les mana- - termes 2023 En d'autres l'enjeu majeur est bien de limiter les effets n^'fastestenant avant tout ^ des facteurs gers de ces filiales Fort ses acquis d'un management du changement internes que pourrait induire une rapide et cr^'atifr^'actifde sa solidit^'financi^rede sa diver- sur croissance et Oct significative les fondamentaux du groupe dilution sit^'culturelle de ses valeurs humanistes le groupe 18 du sens de l'action collective perte de la vision et peut l^'gitimementrelever les d^'fisde croissance 1:13 des valeurs augmentation de la complexit^'organi- sationnelle dispersion des efforts et des ressources affronter ses ^'cueilset optimiser durablement ses vertus dans une dynamique de progr^s Et pr^'server PM ainsi son business model tendu vers le service client Conscient de la n^'cessit^i'mp^'rieused'agilit^'d'effi- la qualit^'de ses prestations et la s^'curit^l''expertise - cacit^'et de souplesse le groupe a effectivement de ses personnels et l'ouverture sur le monde mis en place une organisation ^'volutiveen fonction des caps structurels ^ passer de la complexit^'de Pleinement engag^'dans la maitrise des rapproche- son environnement et de la n^'cessit^d'e rester en ments majeurs op^'r^'cses deux derni^resann^'eset contact avec ses march^'s dans la recherche des synergies d^'coulantde son RICHLAND g^'ographiquemondiale le groupe doit - empreinte Cette philosophic manag^'rialeinspir^'epar une continuer ^ d^'montrersa capacit^'^ g^'rerses grands culture humaniste de l'entreprise et des valeurs ^'quilibres^ rester ^ distance de la zone rouge et fortes doit privil^'gierjamajaimasis les modalit^'s que ^ d^'gagerles marges de manoeuvres permettant d'un fonctionnement agile fond^'sur une holding de faire rimer croissance et succ^sdurable COM N animatrice et de contr^lel^'g^rele respect des principes de d^'centralisationet d'autonomie des Je tiens ^ souligner dans ce contexte le caract^re filiales favorisant une struc- d^'terminantdu soutien de nos partenaires financiers l'esprit entrepreneurial ture de management matricielle et reconfigurable et de nos actionnaires et la force que nous donne PLEAS en permanence leur engagement sans faille ^ nos c^t^'s - Au de serviccetete philosophie il est essentiel que les efforts entrepris au sein de la holding pour Vivre c'est anticiper le besoin de survivre Croitre est en ce sens source de libert^'et permet de franchir accompagner efficacement l'action des filiales la ligne d'avantage Avec la promesse d'un destin 203CP41759 soient et que poursuivislesinformationscl^'sissues des fonctions de suivi et de contr^lequi s'incarnent ^ la port^'ed'hommes de c uret d'intelligence engag^'sdans une aventure hors du commun 203CP401759 VIVRE C'EST ANTICIPER LE BESOIN DE SURVIVRE ... AVEC LA PROMESSE D'UN DESTIN ^ LA PORT^ ED'HOMMES DE C UR ET D'INTELLIGENCE ENGAG^ SDANS UNE AVENTURE HORS DU COMMUN MOHED ALIRAD PRESIDENT'S MESSAGE LE MOT DU PR^ SIDENT KEY FINANCIALS LES CHIFFRES CL^ SIFRS TURNOVER CHIFFRDE'AFFAIRES in M<illion / en Millions < 2158 2017 EBITDA EBITDA in M<illion / en Millions < 213 2015 NET PROFIT RESULTAT NET in Million / en Millions < 138 ALTRAT difernt EQUITY FONDS PROPRES in M<illion / en Millions < 1 Including others funds from shareholders / Y compris autres fonds actionaires CASH + TR^ SORERIE difernt 640640640 2017 in <Million / en Millions < - 2017 COMN PLEAS - NET DEBT ENDETTEMENT NET in M<illion / en Millions d'E 203CP41759203CP401759 CASH CONVERSION CONVERSION EN CASH FREE CASH FLOW2 EBITDA 2 After /tax Apr^simp^t NET EBITDA RATIO 2017 RATIO ENDETTEMENT NET 2015 EBITDA KEY FINANCIALS LES CHIFFRES CL^ SProforma With Cape 12 month's activity / Avec Cape 12 mois d'activit^' TURNOVER CHIFRE CHIFFRDE'AFFAIRES in M<illion / en Millions < 3405 2017 Proforma EBITDA EBITDA in M<illion / en Millions < 426 2017 Proforma 229 2015 NET PROFIT RESULTAT NET in Million / en Millions < ALTRAT difernt EQUITY FONDS PROPRES in M<illion / en Millions < 1 Including others funds from shareholders / Y compris autres fonds actionaires CASH + TR^ SORERIE difernt 640640 2017 in <Million / en Millions < - 2017 COMN PLEAS PLEAS - NET DEBT ENDETTEMENT NET in <Million / en Millions < 203CP41759 901 203CP401759 CASH CONVERSION CONVERSION EN CASH FREE CASH EBITDA 2 After /tax Apr^simp^t NET EBITDA RATIO RATIO ENDETTEMENT NET EBITDA ABOUT ALTRAD 2017 HIGHLIGHTS OVER LAST YEAR THE ALTRAD GROUP HAS MAINTAINED ITS OVERALL OPERATIONAL PERFORMANCE LEVEL AND ITS KEY FINANCIAL INDICATORS WHILE KEEPING ON DEVELOPING ITS REGIONAL FOOTPRINT SUPPORTING ITS CUSTOMER BASE AU COURS DE L'EXERCICE ^ COUL^LE GROUPE ALTRAD A PU MAINTENIR SA PERFORMANCE OP^ RATIONNELLEGLOBALE ET SES PRINCIPAUX INDICATEURS FINANCIERS TOUT EN CONTINUANT ^ D^ VELOPPERSA PR^ SENCER^ GIONALEAUPR^ SDE SES CLIENTS 7} im in| g CONTINENTAL EUROPE q q 4 q a im q q 10 812 employees FILED FILED FILED FILED 2023 2023 UNITED KINGDOM 18 925 aq E 9142 employees RICHI RICHI RICHI in 4 g PACIFIC q g E E 636 g 4 7 q 3855 employees |say Ps a | q 203CP41759 MIDDLE EAST & CASPIAN 284 203CP401759 10177 employees 3099 employees AFRICA 1683 employees 20 ALIRAD AT A GLANCE ith the acquisition of the Hertel Prezioso and Cape groups respectively in 2015 2016 and 2017 the Altrad Group has entered a new phase of evolution Today has become a world leader in services to industry This strategic evolution consti- tutes the third stage of a history that began in 1985 with the founding of the group by Mohed Altrad Originally specialized in manufacturing construction equipment Altrad then migrated ren- tal upscaling in the process After consolidating the French market Altrad became the European leader in the rental of building and construction equipment To achieve this Altrad evolved its business model by becoming an equipment hirer before becoming a manufacturer With the third major strategic move in its history Altrad has become first and foremost a service has retained its manufacturing company that This strength and rental availability specificity allows it to provide its major clients with high added services and recognized availability while enhancing and creating added value in its business Continually focused on performance and profita- bility constantly to striving offer better service to its customers the Altrad Group has always been a market consolidator This dynamic is the product of clear strategic choices that have not changed since the start of the group's activity on the one hand presence in several markets with different cycles on the other hand presence in markets that are not those of its competitors These two combined characteristics have allowed Altrad to overcome the economic cycles inherent in its business better than its competitors which in turn enabled it to take over a large of The numbtheem r Altrad Group has thus become European leadinetrhe manufacture sale and rental of scaffolding props and shoring which it installs and dismantles as well as in lightweight construction equipment But it is now also a major global player in surface treatment in the nuclear and oil sectors as well as in insulation and painting work on these installations The company retains its core business scaffolding props and shoring and its own identity while transforming itself considerably Because the Group is attached to its history And because the manufacturing activities have maintained strong profitability This situation has made Altrad Group the only integrated group in its market with pros- integration competiors pects for horizontal of and the broadening of its offer of extensive services while carrying out vertical integration if necessary TURNOVER PROFORMA BY REGION 9<25m Kingdom 636 m Pacific 223 m 137m 137m REVENUE BY ACTIVITY 82 Services 18 Equipment The group has grown through internal and external growth for more than 30 years reaching 3<.4 billion in sales and 4<25 million in EBITDA 12 as of August 31 2016 integrating Cape as proforma Its rental stock in scaffolding props and shoring is unmatched estimated at more than 515,000 tons and 1<.2 billion in replacement value Headquartered in Montpellier France the Group employs 39,000 people and is present throughout the world in more than 100 countries in Europe Asia Africa the Middle East and Australia Mohed Altrad founder of the Group holds 77.78 of the shares the Public Investment Bank BPI 10.87 and financial shareholders 11.35 All shareholders the of the company are established shareholder in France The structure has remained stable over the last seven years 21 ELCTRONIAY SERVICES EQUIPMENT FILED - Recurring service and technical offer to Design manufacture sale and rental of structures 2023 industry new projects and maintenance to extend the life of existing assets for construction industry and public authorities Manufacturing sales and rental The Altrad Group offers solutions for access surface - Scaffolding Oct treatment insulation maintenance of mechanical -Formwork -Formwork props and shoring 18 systems painting and coatings Equipment for events stages stands etc. 1:13 _ Instalation dismantling and of - Concrete mixers wheelbarrows and compaction machines PM Access solutions ropes mobile platforms lifts etc. - Equipment for public authorities play structures -Insulation -Insulation for children purpose sports structures - -Anti corrosion protection stands etc. Engineering installation and maintenance of RICHLAND mechanical systems of and watertight structures REVENUE BY MARKET - Shoring - Specialized services coating testing - inspections etc. Construction Construction MAIN CLIENTS OIL & GAS MAJOR COMPANIES CHEMICAL Oil & gas Process COMN Power generation PLEAS - INDUSTRY LARGE REVENUE BY REGION GROUPS IN POWER GENERATION CONSTRUCTION GROUPS ENGINEERING 36 Continental 203CP41759 ii S'f, 27 United Kingdom 18 Pacific % Middle East & Caspian PROCUREMENT & CONSTRUCTION COMPANIES EPC EQUIPMENT GOODS % Asia % Africa SERVICES ORDER BOOK BY REGION RETAILERS LOCAL AUTHORITIES 45 % Continental Erode 25 United Kingdom 11 Africa 10 Middle East & Caspian % Asia % Pacific 22 ALTRAD AT A GLANCE A vec l'acquisition des groupes Hertel Prezioso et Cape respectivement en 2015 2016 et 2017 parce que les activit^'sde fabrication ont su garder une rentabilit^'solide Cette situation permet au Ale groupe Altrad est entr^'dans une nouvelle groupe Altrad d'^"trele scul groupe int^'gr^'sur phase de son ^'volutionIl est devenu aujourd'hui son march^'avec des perspectives d'int^'gration un leader mondial des services ^ l'industrie Cette horizontale de concurrents et d'^'largissementde ^'volutionstrat^'giqueconstitue le troisi^metemps son offre de services tr^simportantes et dans le d'une histoire initi^'een 1985 avec la du fondation m^"metemps des ^ capacit^'s faire de l'int^'gration groupe par Mohed Altrad Initialement sp^'cialis^' verticale si n^'cessaire dans la fabrication d'^'quipementspour la construc- tion Altrad a migr^'dans un deuxi^me la tout en changeatntempd's^'vecrhselle location d'^'quipements D'abord consolidateur du march^'fran^aisAltrad est devenu le leader europ^'endans le domaine de la location de mat^'rielspour le b^timentet la construction Pour y arriver Altrad a fait ^'voluer son mod^le^'conomiqueen devenant en premier lieu un de loueur mat^'rielavant d'^"treun fabricant Avec le troisi^megrand mouvement strat^'gique Le groupe s'est d^'velopp^p'ar croissance interne et externe depuis plus de 30 ans pour atteindre en proforma int^'grantCape un chiffre d'affaires de 3,4 milliards e<t pr^sde 425 M d'EBITDA 12 au 31 ao^t2017. Son parc locatif en ^'chafaudage ^'taiset ^'taiementssans ^'quivalentest estim^'^ plus de 515000 tonnes et atteint 1,2 milliard en valeur de remplacement Le groupe dont le si^gesocial est situ^' Mont- de son histoire Altrad est devenu avant tout une pellier France emploie 39 000 personnes et est soci^'t^d'e services qui a gard^'de ses pr^'c^'dents pr^'sentpartout dans le monde dans plus d'une m^'tiersla force de la fabrication et la disponibilit^' centaine de pays en Europe en Asie en Afrique loueur Cette sp^'cificit^p'ermet de fournir ^ ses grands clients des services ^ haute valeur ajout^'e avec une disponibilit^'reconnue Et d'ajouter toujours plus de valeur ajout^'eet de cr^'ationde valeur ^ son activit^' au Moyen ainsi qu'en Australie Mohed Altrad fondateur du Groupe d^'tient 77,78 des parts la Banque publique d'investissement BPI 10,87 et des actionnaires financiers 11,35 L'ensemble des actionnaires de la soci^'t^' Continuellement tourn^'vers la performance et la sont ^'tablisen France La structure actionnariale rentabilit^' uvrantconstamment ^ offrir un meilleur est rest^'estable au cours des sept derni^resann^'es service ses clients le Groupe Altrad a toujours ^'t^' le consolidateur de son march^'Cette dynamique a ^'t^p'ermise par des choix strat^'giquesclairs qui REVENUS PAR ACTIVIT^ S n'ont pas chang^'depuis le d^'butde l'activit^'du groupe : d'une part une pr^'senceassum^'esur plusieurs march^'spr^'sentantdes cycles diff^'rents; 82 Services d'autre part une pr^'sencesur des march^'squi ne sont pas ceux de ses concurrents Combin^'es 18 Equipements ces deux caract^'ristiquesont permis ^ Altrad de surmonter les cycles ^'conomiquesinh^'rents^ ses activit^'s mieux que ses concurrents ce qui lui a permis d'en racheter un grand nombre Le Groupe Altrad est ainsi non seulement num^'roun euro- p^'endans la fabrication la vente et la location des des ^'tais des dont ^'chafaudages ^'talemnts et , il assure le montage le d^'montageainsi que des ^'quipementsl^'gerspour la construction Mais c'est d^'sormaisun acteur mondial majeur du traitement de surface dans les secteurs nucl^'aireset p^'troliers ainsi que des travaux d'isolation et de peinture sur les installations CA PROFORMA PAR ZONE G^ OGRAPHIQUE 1.<201m 1.201m Europe continentale 925 Royaume 636 Pacifique L'entreprise a conserv^'son c urde m^'tierles ^'chafaudages^'taiset ^'taiementset son identit^' propre tout en se transformant consid^'rablement Parce que le groupe est attach^'^ son histoire Et 284 Moyen & Mer Caspienne 223 m Asie 137 m Afrique ELCTRONICALY 23 ELCTRONIAY SERVICES ^ QUIPEMENTS FILED Offre r^'currentel'industrie services et multi- Conception fabrication vente et location de - techniques nouveaux projets et maintenance pour allonger la dur^'ede vie des actifs existants structures ^ destination du BTP de l'industrie et des collectivit^'s 2023 Le Groupe Altrad offre des solutions d'acc^sde - Fabrication vente et location ; Oct traitement de surface d'isolation de maintenance ^ chafaudages; 18 de syst^mesm^'caniquesde peinture rev^"tements -Coffrages -Coffrages ^'taiset ^'taiements; et 1:13 Montage et d^'montaged'^'chafaudages; -Equipement -Equipement pour de l'^'v^nementielsc^nes tribunes etc. ; - cordages plateformes mobiles Solutions d'acc^s - B^'tonni^rebsrouettes et engins de compactage ; PM ascenseurs etc. ; Isolation ; - ^ quipementpour les collectivit^'sstructures - RICHLAND Protection anticorrosion : Ing^'nierieinstallation et maintenance de sys- ludiques pour enfants structures sportives polyvalentes gradins etc. t^mesm^'caniques; -Installation -Installation de coffrages et de structures ^'tanches ; REVENUS PAR MARCH^ S ^ taiement; - - Services sp^'cialis^'senrobage stress ins- pections etc. PRINCIPAUX CLIENTS : et COM N 45 Construction 26 P^'trolegaz 18 Industrie de process INDUSTRIE P^ TROLI^ RE- GAZI^ REMAJORS % Energie PLEAS - ET P^ TROLI^ REREVENUS PAR ZONE G^ OGRAPHIQUE INDUSTRIE CHIMIQUE GRANDS GROUPES PRODUCTEURS D'^ NERGIEGRANDS GROUPES CONSTRUCTION ET G^ NIECIVIL ING^ NIERIEGRANDS 203CP41759 36continentale 27 Royaume Y) 18 Pacifique CYT & APP 203CP401759 % Orient Caspierne % Asie % Afrique PROJETS EPC DISTRIBUTEURS DE CARNET DE COMMANDES SERVICES PAR ZONE G^ OGRAPHIQUE MAT^ RIELD'^ QUIPEMENT COLLECTIVIT^ S 45 % Europe continentale LOCALES O 10 Orient Mer Caspienne 7 % Asie % Pacifique Rotterdam Pretoria Paris VALUES BY DEFINING AND CHOOSING THE VALUES IT UNDERTAKES TO INCARNATE AND DEFEND A GROUP SIGNIFIES THE RESPONSIBILITY TO WHICH EACH OF ITS MEMBERS COMMITS IN RELATION TO OTHERS 27 NEWS CopenhagueELCTRONIAY FILED - 2023 Oct 18 Since its inception the Altrad Group has 1:13 PM wagered on the human element its strength faults passion doubts richness plurality - generosity and empathy Sometimes perceived as tough subject to the demands RICHLAND of competition the corporate world can also choose a more respectful incarnation of Man It is this challenge that the Altrad Group tries to meet on daily basis with the five high - a valeurs yet and ses : generous values acting as its helm and compass courage humility respect l'humilit^' le courage solidarity and conviviality COM N The more the Group has evolved the greater respect the need to define clarify and communicate its PLEAS main values le la solidarit^' et la convivialit^' Values mold organizational culture - and shape strategy As integral parts of the vision values have Provence 203CP41759 apivotalfunctionguidingthedecisionand what drawing a line between is important and what is not between what is right and what is not Corporate values are principles that guide the organization's culture as well as the priorities 203CP401759 and actions of its members They become increasingly fundamental components of strategic planning in that they guide and drive the intention momentum and direction of the organization's leadership In this perspective the choice of clear realistic original and specific values incarnation of the organization is particularly necessary Abu Dhabi Middlesbrough They accompany change while supporting the more sustainable aspects of the organization Values provide visibility in a competitive market Communicating Comunicating effectively and about the values it embodies provides an opportunity for any company to increase its visibility by clarifying its identity By articulating and explaining the values that drive it the Altrad Group states what it deems to be important beyond its strictly financial and economic objectives It indicates its place in wider community the ideals it defends its positions on certain social issues and how it envisages helping to defend these Values are a compass and a showcase for the Group both for its members current and future as well as for all its stakeholders and public opinion as a whole Values are a compass and a showcase for the Group both for its members current and future as well as for all its Les valeurs d'entreprise constituen constiuen constituen des qui princigpuiedesnt a culture de organisation autant autant que les priorit^'s de actions ses membres Elles deviennent des composants de plus en pas pas fondamentaux de a planification strategique en ce qu'elles orientent orientent pilotent intention l'^'lan et la direction du leadership de l'organisation Dans cette optique le choix de valeurs caires caires r^'alistes originales et specifiques de ncarnation l'organisation se erev^particulierenient atile Elles accompagnent e changenrent tou en soutenant soutenant les aspectaspsects plus p^'rennies de organisation Les valeurs conferent une certaine visibilit^' dans un marche concurrentiel Communiquer efficacement et de maniere adequate sur les valeurs qu'e le incarne ottre une opportunit^'^ toute entreprise d'accroitre sa visibilit^' en rendant plus l's'ale son identit^' En enen^ant et expliquant les valeurs qui l'animent le Groupe Altrad dit ce qui est important pour lui de ^ de ses objectifs strictement financiers et economiques indique sa place dans une communaut^' plus large les ideaux qu'il defend les positions certains sujets comenet de contribuer ^ leur defense stakeholders andpublic opinion Les valeurs sont une bousso e et une vitrine pour le Groutanpt peour ses membres actuels et ^ venir que pour l'ensemble l'ensemble de ses parties prenantes et l'opinion publique as a whole MOLD ALIRAD Florensac 30 ELCTRONIAY MOVING AHEAD WHEN I ACQUIRED MY FIRST COMPANY IN FLORENSAC IN 1985 I HAD NO PLANS IN MIND TO BUILD IT INTO A GROUP OF AN INTERNATIONAL DIMENSION I WANTED ABOVE ALL TO TURN THE COMPANY AROUND AND ALLOW IT TO DEVELOP It was an adventure that attracted me a challenge that I wanted to take up for myself and for all those who depended on me in the factory Over the years Florensac was joined by other facilities My approach in these circumstances remained the same What had been done for the first site the risk that had been taken the first time could be applied to other facilities Very quickly however one thing became clear it was not just a matter of accumulating The acquisitions had to be coherent The new facilities not only had to be part of the same sphere of activity they had to be complementary and work together The first sketches of the work had emerged The momentum and the course of action were established acquisition stabilization synergy growth The first stones were laid Foundation stones to be built upon for the future The work has been achieved With its share of adversity and questioning it is the result of successive aggregations - a work that has been created block by block . It has involved opening up to international relations in Europe and elsewhere but also a constant effort in terms of Internal organization to consolidate this diversity In this way the sketch acquired substance the work took form to become the Group as we know it today However as the Group grew its character asserted itself It gradually imposed its own logic and organization It no longer concerned a few companions but thousands of people It relied less and less on the will of one person and was increasingly founded ona firm and dynamic constitution The moment arrived when I what had put all my energy into took on its own autonomy When exactly at what stage did the image change I cannot answer that It was an imperceptible process I think C'^'taitune aventure Trondheim Luanda 32 Malabo Today in any case a step has been taken me The Group seems to to be solid enough to hold its own This is a surprising observation which I make not without a private sense of satisfaction I have sacrificed a lot for more than 30 years I and what see testifies that my efforts were not in vain Fatima It's true that nothing can be taken for granted Being autonomous is by no means a guarantee of sustainability for the Group or for anyone especially if this autonomy is the result of daily efforts But knowing it has acquired this maturity gives me confidence for the future The Group seems to me to be solid enough to hold its own Creation with the takeover of Mefran 1985 Start of production of equipment for local authorities 1987 Takeover of the workshops at Denis ASD manufacturer of concrete mixers 1989 Development of business activities on french territory 1990 Development of business activities in Europe 1997 Development of the service activity with the takeover of Balliauw 2006 Belgium France the Netherlands Development on focuses the hire and services business in Europe 2011 Acquisition of the Hertel Group 2015 Acquisition of the Prezioso Group 2016 Rayong Rayong Rayong Acquisition of the Cape Group 2017 Stockholm Walvis Bay ELECTRONICALY ELECTRONICALY STRATEGY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELCTRONICALY IN THE WAKE OF THE 2009 CRISIS THE GROUP REINFORCED BY THE RESILIENCE IT HAD DEMONSTRATED REDEFINED ELCTRONICALY AND REFINED ITS STRATEGY IT HAS SINCE APPLIED IT CONSISTENTLY IN FOUR VALUE CREATING AREAS ELCTRONICALY ELCTRONICALY ELECTRONICALY GLOBAL DEVELOPMENT ELECTRONICALY ELECTRONICALY stronger economic Take advantage of areas with growth such as emerging countries FILED FILED Reduce exposure to country risk and economic conditions FILED FILED Accompany our global customers oil & gas petrochemicals chemicals 2023 2023 GROWTH IN INDUSTRIAL SERVICES 2023 2023 Benefit from existing opportunities in a very large market over 1<00 billion to create a large global Group Oct Oct Develop in recurring activities thanks to long maintenance contracts 18 Increase the return on capital invested by developing a service offer less intensive than the services related to scaffolding 1:13 Offer global solutions to our customers PM PM INNOVATION RICHLAND Use innovation to differentiate at all levels and create competitive advantages RICHLAND RICHLAND Innovation in product and services offerings RICHLAND RICHLAND Innovation in process RICHLAND RICHLAND Innovation in strategy and business model COMMON OPTIMIZE WITH PROGRESS UNITS COMMON COM ON Increase Group competitiveness and reduce costs COMMON COMMON to Increase the conversion of EBITDA to Free Cash Flow in order generate room COMMON for man uvrefor internal and external growth PLEAS PLEAS PLEAS Business and marketing synergies brand PLEAS PLEAS EXTERNAL GROWTH INCLUDING THE MAJOR ACQUISITIONS IN 2015 HERTEL 2016 PREZIOSO AND 2017 CAPE OF HAVE BEEN IMPORTANT DRIVERS IN THE IMPLEMENTATION THIS STRATEGY CASE CASE CASE CASE # 2023CP40 1759 2023CP40 1759 2023CP401759 2023CP40 1759 2023CP401759 D^ VELOPPEMENTMONDIAL 2023CP401759 2023CP40 1759 2023CP40 1759 203CP401759 2023CP40 1759 2023CP40 1759 2023CP401759 CROISSANCE DANS LES SERVICES ^ L'INDUSTRIE INNOVATION OPTIMISATION GR^ CEAUX PROGRESS UNITS LA CROISSANCE EXTERNE ET NOTAMMENT LES ACQUISITIONS MAJEURES R^ ALIS^ EESN 2015 HERTEL 2016 PREZIOSO ET 2017 CAPE ONT ^ T^DES VECTEURS IMPORTANTS DANS LA MISE EN UVREDE CETTE STRAT^ GIE TURNOVER 3<.4 BILLION 39,000 EMPLOYEES A WORLDWIDE AND ACT IN MORE THAN 100 COU RICHLAND RICHLAND RICHLAND RICHLAND COMMON COMMON COMMON COMMON COMMON COMMON PLEAS PLEAS PLEAS PLEAS CASE CASE 203CP401759 2023CP401759 2023CP401759 203CP401759 2023CP401759 203CP401759 203CP401759 2023CP401759 2023CP401759 2023CP401759 CHIFFRE CHIFFRE D'AFAIRES D'AFFAIRES DC 39.000 39.000 SALARIES SALARIES DANS PLUS DE 100 KEY EVENTS 2017 KEV EVENTS 201 THE ACQUISITION OF CAPE A MAJOR STRATEGIC REINFORCEMENT THE CONTINUED INTEGRATIONS OF HERTEL AND PREZIOSO AND THE BRANDING OF THE GROUP ARE THE HIGHLIGHTS OF THE PAST YEAR RENFOCMT L'ACQUISITION DE CAPE UN RENFORCEMENT STRAT^ GIQUEMAJEUR LA POURSUITE DES INTEGRATIONS D'HERTEL ET DE PREZIOSO ET LE RE BRANDING DU GROUPE SONT LES FAITS MARQUANTS DE L'ANN^ E^ COUL^ E 40 ACQUISITION OF CAPE A MAJOR STRATEGIC REINFORCEMENT JULY 7 THE ALTRAD GROUP ANNOUNCED A PUBLIC TENDER OFFER FOR THE CAPE GROUP ONE OF THE WORLD'S LEADING PROVIDERS OF SERVICES TO INDUSTRY PRIMARILY IN THE ENERGY SECTOR he Board of Directors of Cape unanimously recommended this offer In view of the complementarity of the Cape and Altrad groups this operation should enable After obtaining the authorization of the merger control authorities of the United Kingdom the offer became unconditional and was closed on 8 September 2017. Today Altrad holds 100 of Cape Cape in 2016 had 16,000 employees operating in 23 countries for a turnover of 863.5m Following the successful acquisition with the Hertel Group in June 2015 and the Prezioso Group in May 2016 this acquisition represents and exceptional opportunity in line with the Group's strategy to become a world leader in services to industry -The creation of a multi disciplinary player in services to industry leader in its main markets in the world -Stronger -Stronger presence in regions with high growth potential notably in Pacific and the Middle A better balance between the different geogra- phical areas 66 of sales generated in Europe including United Kingdom 20 in Pacific and 14 in other regions reduc -The creation of homogeneous and balanced whole with a reduced level of risk - An expanded customer portfolio - Presence in most economic sectors to reduce exposure to the volatility of certain cycles A MULTI DISCIPLINARY PLAYER IN SERVICES -Deployment of a wide and diversified range of resolutely services focused on our main industrial customers greatly strengthening the area of expertise of both groups The Group also benefits from its own industrial capacities TO INDUSTRY LEADER IN ITS MAIN MARKETS IN THE WORLD MOHED ALTRAD Achieving synergies - Rationalisation of operational costs - Development of group services - Shared use of equipment reducing the need for capital Creation of a global leader and of -Proforma revenues adjusted EBITDA more than bil<lion and 4<00 million respectively - Approximately 39,000 people worldwide - A financial position capable of supporting future external growth and other strategic investments the level of indebtedness remaining very moderate at Group scale In summary this acquisition will combine the respective strengths of the Altrad and Cape groups to create a global competitive whole that is better able to meet the expectations of our customers MARKET INSIDE 41 ELCTRONIAY FILED FILED ACQUISITION DE CAPE UN RENFORCEMENT STRAT^ GIQUEMAJEUR -203 -20 3 LE GROUPE ALTRAD A ANNONC^ LE 7 JUILLET LE D^ P^ DT'UNE OFFRE PUBLIQUE D'ACHAT Oct SUR LE GROUPE CAPE UN DES LEADERS MONDIAUX DANS LA FOURNITURE DE SERVICES ^ L'INDUSTRIE INTERVENANT PRINCIPALEMENT DANS LE SECTEUR DE L'^ NERGIE 18 ette offre a ^'t^'recommand^'e^ l'unanimit^' UNE PR^ SENCE 1:13 par le conseil d'administration de Cape Apr^s ( obtention de l'autorisation des autorit^'sde RENFORC^ E PM contr^ledes concentrations du Royaume l'offre - est devenue inconditionnelle et a ^'t^c'l^tur^'ele DANS LES R^ GIONS 8 septembre 2017. ^ aujourd'hui Altrad d^'tient 100 de Cape RICHLAND ^ RICHLAND Cape compte en 2016 16000 employ^'sop^'rant FORT POTENTIEL sur 23 pays pour un chiffre d'affaires de 863,5 - m DE CROISSANCE Suite aux rapprochements r^'ussisavec les groupes Hertel en juin 2015 ct Prezioso en mai 2016 cette PACIFIQUE ET acquisition repr^'senteune opportunit^'exception- COM N nelle en ligne avec la strat^'giedu groupe dont LE ORIENT l'objectif est de devenir leader mondial dans les services ^ l'industrie PLEAS LOUIS HUETZ Au vu de la compl^'mentarit^d'es groupes Cape - et Altrad cette op^'rationdevrait permettre : - la cr^'ationd'un acteur multi disciplinaire dans La r^'alisationde synergies : les services ^ l'industrie leader principaux sur ses march^'sdans le monde : - Une pr^'sencerenforc^'edans les r^'gions^ fort potentiel de croissance notamment l'Asie Pacifique et le Moyen ; 203CP41759 - Un meilleur^'quilibreentre lesdiff^'rentes - La rationalisation des co^tsop^'rationnels; - Le d^'veloppementdes services intra groupe ; - Une utilisation partag^'edes ^'quipements r^'duisantle besoin en capital -La cr^'ationd'un leader mondial : 203CP401759 zones g^'ographiques: 66 du CA g^'n^'re^n' Europe y compris Royaume 20 en Asie- . Un chiffre d'affaires proforma et un EBITDA ajust^'respectivement de plus de 3 milliards < Pacifique et 14 dans les autres r^'gions et 400 millions < - effectif d'environ 000 personnes ^ travers La constitution d'un ensemble homog^neet ^'quilibr^a'vec un niveau de risques r^'duit: - Un portefeuille client ^'largi; - Une pr^'sencedans la plupart des secteurs ^'conomiques permettant de r^'duirel'exposition le ; monde - Une situation financi^recapable de supporter les futures croissances externes et autres investis- sements strat^'giquesle niveau d'endettement restant tr^smod^'r^^'l'^'chelledu groupe la volatilit^'de certains cycles En r^'sum^c'ette acquisition permettra d'associer les Le d^'ploiementd'une gamme de services large et diversifi^'er^'solumenttourn^'evers nos principaux clients industriels renfor^ant points forts respectifs des groupes Altrad et Cape afin de cr^'erun ensemble global comp^'titifplus ^ m^"mede satisfaire les attentes de nos clients consid^'rablementles zones d'expertise des deux groupes Le Groupe b^'n^'fici^e'galement de capacit^'sindustrielles propres MARKET INSIDE PRESENTATION OF CAPE Cape was founded in 1893 as an importer and of manufacturer insulation materials The company experienced rapid growth for over 50 years in the United Kingdom and overseas REVENUE BY REGION In the 1950s the group diversified in service activities in the UK then the Middle East and Asia Access solutions were incorporated in the service offering in the 1970's The Group's service offer is now wide and diversified mainly for the energy and oil & gas sectors - Access systems -Insulation -Insulation Refractory linings - Storage - Mechanical services - Environmental services -Maintenance -Maintenance of heat exchangers ECONOMIC SECTORS Cape achieved in 2016 a turnover of 863.5 and an of EBITDA 73 It has 16,000 employees The Group is present in the United Kingdom 43 of turnover the Middle East 22 Asia and Pacific 35 The Group's turnover is composed of 61 maintenance work and 39 projects The Group's customers are from the oil & gas sector 63 energy 11 process industries 14 mining % and other sectors % Cape set up a compensation fund in 2006 for its employees who were exposed to asbestos until the complete cessation of this activity in the beginning of 1980's This fund is administered independently TYPE OF BUSINESS 63 oil gas 14 Process % Energy % Mining % Others 61 Maintenance services -39 Construction services STRUCTURE OF THE OPERATION THE ACQUISITION OF CAPE PLC SHARES WAS CARRIED OUT THROUGH THE INTERMEDIARY HOLDING COMPANY ALTRAD UK A WHOLLY OWNED SUBSIDIARY OF AIA AND FINANCED BY AIA THROUGH A CURRENT ACCOUNT ALTRAD UK PROCEEDED TO REFINANCE CAPE'S DEBT THE ACQUISITION OF CAPE SHARES WAS FINANCED BY AN ACQUISITION DEBT ARRANGED BY BNP PARIBAS SA REVENUE BY REGION ASIE ET PACIFIQUE 302 MOYEN 190 ACTIVIT^ PAR ZONE G^ OGRAPHIQUE ELCTRONIAY PR^ SENTATIONDE CAPE FILED - 2023 Fond^'en 1893 Cape ^'tait^ l'origine un fabricant et un importateur de produits isolants Il a connu R^ PARTITIONG^ OGRAPHIQUEDE L'ACTIVIT^ Oct une forte croissance durant plus de 50 ans au Royaume et ^ l'^'tranger Dans les ann^'es50 le groupe s'est diversifi^'dans 18 les activit^'sde services au Royaume puis au 1:13 Moyen et en Asie Les solutions d'acc^sont 70 302 m PM ^'t^i'nt^'gr^'e^s l'offre de services dans les ann^'es - L'offre de service du groupe est aujourd'hui vastc et diversifi^'eprincipalement destin^'eaux secteurs RICHLAND de l'^'nergiedu p^'troleet du gaz : Syst^mesd'acc^s; Isolation ; Rev^"tementsr^'fractaires; - Stockage ; Services m^'caniques; Services environnementaux ; Maintenance d'^'changeursde chaleur LES SECTEURS D'ACTIVIT^ COMN Cape a r^'alis^e' n 2016 un chiffre d'affaires de 863,5 et un EBITDA de 73 Il compte 16000 employ^'s PLEAS 63 % P^'troleet gaz 14% industries de transformation - Le groupe est pr^'sentau Royaume 43 du chiffre d'affaires au Moyen 22 en Asie et Pacifique 35 11% Energie Energie 203CP41759 Le chiffre d'affaires du groupe est compos^'pour 61 de travaux de maintenance et pour 39 de projets % Autres 203CP401759 Les clients du groupe proviennent des secteurs du p^'troleet du gaz 63 de l'^'nergie% des LES TYPE D'ACTIVIT^ S transfotrramnsafotrmiatoionn 14 des industries de secteurs mini^res% et des autres d'activit^'% Cape a mis en place en 2006 un fonds d'indemnisation au b^'n^'ficdee ses employ^'squi ont ^'t^e'xpos^'s^ l'amiante jusqu'^ l'arr^"tcomplet de cette activit^' au d^'butdes ann^'es80. Ce fonds est administr^' de mani^reind^'pendante 61 Service maintenance 39 Service construction STRUCTURE DE L'OP^ RATION L'ACQUISITION DES TITRES CAPE PLC ET LE REMBOURSEMENT DE SA DETTE ONT ^ T^R^ ALIS^ S DE PAR LA HOLDING INTERM^ DIAIREALTRAD UK FILIALE ^ 100 D'ALTRAD INVESTMENT AUTHO- RITY CETTE OPERATION A ^ T^FINANC^ EPAR UNE DETTE D'ACQUISITION ARRANG^ EPAR BNP PARIBAS SA ET PAR UN COMPTE COURANT ALIMENT^ AVEC LA TR^ SORERIEDU GROUPE ALTRAD 46 ONGOING INTEGRATION OF HERTEL & PREZIOSO ONGOING INTEGRATION OF HERTEL As announced in the 2015 and 2016 annual reports the integration of Hertel has continued in accor- dance with our charter Direct exchanges were also set up between Altrad entities and Hertel entities regarding commercial and operational issues through the participation of Hertel managers in group seminars and Progress Units The Altrad and Hertel holding companies were merged The operational organisation of Hertel in geographical areas was maintained United Kingdom Germany Belgium Netherlands Caspian Middle East Asia and Australia After about twenty seven months presence in the Group the results are very positive the profitability of the entities has recovered strongly and despite a market team produced interesting business results Operational reconciliations with other entities of the Altrad Group have been undertaken Benelux United Kingdom Asia and are expected to generate additional synergies in the coming years The group's strategy objectives and procedures were explained in each area and if necessary adapted to local specificities in conjunction with the management teams The red zone procedures that is to say operational decisions requiring prior authorization have been implemented The budgetary procedure essential in our group was conducted in depth It was accompanied by operational audits to provide the Altrad Group more insight into the organization of each entity and avenues were identified to improve performance THE CENTRAL BUSINESS DEVELOPMENT FUNCTION WHICH EXISTED AT PREZIOSO HAS BEEN INTEGRATION OF PREZIOSO After an initial phase of mutual recognition the integration of the Prezioso Group really began in September 2017 with the operational merger of the Altrad and Prezioso holding companies into a single command centre spread over two sites Montpellier and Vienne The Central Business Development function which existed at Prezioso has been shared across the Services perimeter Back office functions purchasing IT accounting treasury HR management control are in the process of being regrouped with their counterparts in the Altrad holding company The Prezioso regions France Africa Norway will now be managed autonomously following the model of the operational subsidiaries of the Altrad Group The Group's strategy objectives and procedures have been explained Red zone procedures f.e. operational decisions requiring prior authorization have been put in place Group The budgetary process essential in our was carried out in depth SHARED ACROSS THE SERVICES accompanied by operational audits that enable the Altrad Group to better understand the organization of each entity and to identify ways to improve performance PERIMETER LOUIS HUETZ Prezioso a profitable and dynamic group will continue and accelerate its growth in the years to come MARKET INSIDE 47 ELCTRONIAY FILED FILED POURSUITE DES INT^ GRATIONSD'HERTEL & PREZIOSO - 2023 POURSUITE DE L'INT^ GRATIOND'HERTEL LA FONCTION BUSINESS Oct Comme annonc^'dans les rapports annuels 2015 DEVELOPMENT CENTRAL et 2016 l'int^'grationd'Hertel s'est poursuivie 18 conform^'ment^ notre charte QUI EXISTAIT CHEZ PREZIOSO 1:13 Les holdings Altrad et Hertel ont ^'t^f'usionn^'es PM L'organisation op^'rationnelled'Hertel en zones - A ^ T^MUTUALIS^ E g^'ographiquesa ^'t^'maintenue : Royaume SUR L'ENSEMBLE Allemagne Belgique Pays Caspienne Moyen- Orient Asie Australie RICHLAND Des rapprochements op^'rationnelsavec d'autres DU P^ RIM^ TRE RICHLAND du entit^'sGroupe Altrad ont ^'t^e'ntrepris Benelux - Royaume Asic et devraient g^'n^'redres syner- SERVICES gies additionnelles dans les ann^'esqui viennent COM N strat^'giedu groupe ses objectifs et ses proc^'dures ont ^'t^e'xpliqu^'esdans chaque zone et au besoin adapt^'esavec les ^'quipesde management aux LOUIS HUETZ HUETZ sp^'cificit^'lsocales Les proc^'duresde zone rouge PLEAS c'est les d^'cisionsop^'rationnellesrequ^'rant La fonction Business Development Central qui exis- une autorisation pr^'alableont ^'t^m'ises en place tait chez Prezioso a ^'t^m'utualis^'esur l'ensemble - La proc^'durebudg^'taireessentielle dans notre du p^'rim^trSeervices groupe a ^'t^m'en^'een profondeur Les fonctions de back office achats informatique acompagn^'e op^'rationels d'audits qui ^'t^' ont permis au Groupe Altrad de mieux comprendre l'organisation de chaque entit^'et qui ont identific des pistes d'am^'liorationde performance 203CP41759 Les^'changesdirects entre les entit^'sAltrad et comptabilit^' tr^'sorerieRH contr^lede gestion sont en voie de regroupement avec leurs homologues de la holding Altrad Les r^'gionsPrezioso France Afrique Norv^geseront d^'sormaisg^'r^'edse mani^reautonome suivant le les entit^'sHertel sur les sujets commerciaux et desfiliales 203CP401759 op^'rationnelsont ^'galement^'t^'mis en place ^ mod^le op^'rationnellesdu Groupe Altrad travers la participation des managers Hertel aux s^'minairesgroupe et aux Progress Units La strat^'giedu groupe ses objectifs et ses proc^'dures ont ^'t^e'xpliqu^'esLes proc^'duresde zone rouge Apr^senviron vingt sept mois de pr^'sencedans le groupe les r^'sultatsobtenus sont tr^spositifs la rentabilit^'des entit^'ss'est fortement redress^'e et malgr^' un contexte de march^'parfois difficile c'est les d^'cisionsop^'rationnellesrequ^'rant une autorisation pr^'alableont ^'t^m'ises en place La proc^'durebudg^'taireessentielle dans notre groupe a ^'t^m'en^'een profondeur la mobilisation des ^'quipesa produit des r^'sultats commerciaux int^'ressants INT^ GRATIONDE PREZIOSO Elle est accompagn^'ed'audits op^'rationnelsqui permettent au Groupe Altrad de mieux comprendre l'organisation de chaque entit^'et des d'identifier pistes d'am^'liorationde performance Apr^sune premi^rephase de prise de connaissance r^'ciproquel'int^'grationdu Groupe Prezioso a commenc^'v^'ritablementen septembre 2017 avec la fusion op^'rationnelledes holdings Altrad et Prezioso en un centre de commandement unique r^'partisur deux sites Montpellier et Vienne Prezioso groupe rentable et dynamique continuera et acc^'l^rersaa croissance dans les ann^'es^ venir MARKET INSIDE 50 NEW LOGO AND RE BRANDING IN ORDER TO IMPROVE THE VISIBILITY OF THE ALTRAD BRAND AND TO ALLOW ALL ITS SUBSIDIARIES PRODUCTS AND SERVICES TO BENEFIT FROM ITS REPUTATION A REBRANDING PLAN WAS DRAWN UP AT THE BEGINNING OF THE LAST FINANCIAL YEAR A REBRANDING PLAN HAS For each company in the Group the choice of its logo brand as variation of the new with the name of the company and elements to identify its offer of services displayed next to the logo BEEN DEFINED TO IMPROVE After validation of the brands by the holding implementation of rebranding was carried out in all media including websites THE VISIBILITY OF THE ALTRAD BRAND ALAIN DANET NEW BRANDING DEPLOYMENT IMPLEMENTATION OF THE PLAN IS UNDERWAY IN ALL THE GROUP ENTITIES IT SHOULD BE NOTED THAT WITH REGARD TO THE GROUP'S SERVICE COMPANIES WHICH OFFER IDENTICAL SERVICES TO COMMON CUSTOMERS IT WAS DECIDED THAT A SINGLE WEBSITE BE CREATED 51 ELCTRONIAY FILED NOUVEAU LOGO ET RE BRANDING FILED - 2023 AFIN D'AM^ LIORERLA VISIBILIT^ DE LA MARQUE ALTRAD ET DE FAIRE PROFITER L'ENSEMBLE Oct DES FILIALES PRODUITS ET SERVICES DU GROUPE DE SA NOTORI^ T^UN PLAN DE REBRANDING A ^ T^D^ FINIAU D^ BUTDU DERNIER EXERCICE 18 UN PLAN DE 1:13 Pour chaque soci^'t^d'u groupe choix de sa marque en tant que d^'clinaisondu nouveau logo faisant appara^fitreaux c^t^'dsu logo le nom de la soci^'t^' BRANDING PM et des ^'l^'mentpsermettant d'identifier son offre - de services A ^ T^D^ FINIAFIN D'AM^ LIORER RICHLAND Apr^svalidation des marques par la holding le rebranding a ^'t^m'is en uvresur l'ensemble des y supports compris sites internet - LA VISIBILIT^ MAIN COM N IDENTITY + SECONDARY DE LA MARQUE ALTRAD PLEAS INFORMATION ALAIN DANET - CROATIA WHELBAROWS WHEELBARROWS MIXERS WHE LBAR OWS WHEELBARROWS COL ECTIVIT^ SPOSE FOURNITURERUSZTOWANIA SZALUNKI ALTRAD LES RRUUSSZZTTOWOAWNIAANIA HOFMANINGER CONSTRUCTION EQUIPMENTEQUIPMENT MIDLANDS MIDLCAONNDSTRCAAFCOTLDOINRG ALTRAD ECHAFAUDAGES IB^RICA MAQUINARIA EQUIPAMIEQNUTIOPAMIENTO ECHAFAUDAGES ECHAFAUDAGES 203CP41759MEFRAN 203CP401759 PLETAC | D^ PLOIEMENTNOUVEAU BRANDING LA MISE EN UVREDU PLAN EST EN COURS SUR L'ENSEMBLE DES ENTIT^ SENTIT^ S DU GROUPE IL EST QUI NOTER QUE CONCERNANT LES SOCI^ T^ DSE SERVICES DU PR^ SEPRN^ TSEENTNENTTUNE OFFRE DE SERVICES IDENTIQUE ^ DES CLIENTS COMMUNS IL A ^ T^D^ CID^DE R^ ALISERUN SITE INTERNET UNIQUE 52 MANAGEMENT MANAGEMENT APPROACH GROUP MANAGEMENT ~~ SINCE ITS INCEPTION THE ALTRAD GROUP HAS BASED ITS SUCCESS AND DEVELOPMENT ON AN ORIGINAL AND UNIQUE CONCEPTION OF MANAGEMENT DEEPLY ROOTED IN STRONG VALUES AND AN INTERNATIONAL ENTREPRENEURIAL CULTURE DEPUIS SA CR^ ATIONLE GROUPE ALTRAD A FOND^ SA R^ USSITLLI SON DEVELOPPEMENT SUR UNE CONCEPTION ORIGINALE ET SINGULI^ REDU MANAGEMENT MANGEMNT PROFOND^ MENPROTFND^MET ANCR^ E SUR DES VALEURS FORTES ET UNE CULTURE INTERNATIONALE ET ENTREPRENEURIALE ENTRPUIAL ENTREPRENEURIALE 53 ELCTRONIAY NEWS THE VALUES FILED FILED PRESIDENT HELD BY THE This management style focused on the need for - operational efficiency aims at SHARED EMPLOYEES 2023 AND - Involving the subsidiary managers fully -Developing a relationship of solidarity and BY ALL Oct responsibility between the managers and the holding company of the Group ARE ESSENTIALLY BASED 18 Enhancing skills a culture of change and conti- nuous improvement ON A HUMANISTIC 1:13 -Promoting -Promoting responsiveness through short deci- PM sion channels VIEW OF THE BUSINESS - The values held by the President and shared by all esentialy humanistic are based on a LOUIS HUETZ view of the business and on human qualities such as trust a priori freedom and passion and loyalty RICHLAND respect for cultural differences perceived as an asset monthly performance report is used to the - monitor results of the actions undertaken in each division These values are a reality in the life the Group and of its daily management through its matrix organiza- tion the autonomy and freedom of action given to COM N subsidiaries coordination and control embodied by In the coming year the Cape teams will be integrated into the approach by joining the progress units of the Services division as did the Hertel and the holding company in charge of overall cohesion Prezioso teams PLEAS the strategic vision and growth synergies organization The Group's business model based on this matrix organization The matrix effectively and the limited number of hierarchical - the Group's management principles and focuses on three main areas the levels incorporates simple management rules that revolve around a green zone and a red zone -The managers division subidary repsntig of markets and products -The holding company providing functio- nal support in steering control and funding A lightweight structure 30 people where com- munication is direct and simple without any real 203CP41759 notion of hierarchical levels The green zone corresponds to the area of free- dom of each subsidiary and illustrates the essential subsidiarity principle of and It represents over 90 of the decisions taken by the subsidiary managers The Progress Units PU working groups dedicated 203CP401759 continuous the performance the improvement of ofthe different Group activities and composed of The red zone combines the rules and procedures required for the cohesion of the Group and its smooth functioning subsidiary managers and members of the holding company These PU which may be permanent or temporary provide opportunities for reflection and the exchange of good practices but are also environment In changing economic that is uncer- tain and unstable this managerial organization based on flexibility allows constant real management tool for structuring projects for responsible implentg implementing action optimise to change and fosters customer satisfaction and cost and progress competitiveness productivity business synergies harmonizing practices rationalizing sales and industrial policies Following the acquisition of Hertel and Prezioso organisation we have the of the Progress Units which are now grouped by type of activity -Services activities productivity business development information technology safety - Equipment activities industrial planning productivity scaffolding development in France Plettac scaffolding development BBB coordination local authorities coordination This adaptive scalable and integrative structure meets the need for operational effectiveness in the Group the desire to promote a sense of initiative and responsibility and to create favourable conditions for the development of the men and women in the business It allows the Group to face the ongoing challenge of external growth and sustainable development 54 L'ORGANISATION MATRICIELLE Ce mode de management ax^'sur une exigence : d'efficacit^'op^'rationnellea pour objectif D'impliquer fortement les dirigeants de filiales ; D'instaurer un rapport solidaire et responsable entre ces dirigeants et la holding animatrice du Groupe ; valoriser les comp^'tencesla culture chanDe ;du gement et de l'am^'liorationcontinue De favoriser la r^'activit^'gr^ce^ des circuits d^'cisionnelscourts PERMET DE METTRE EN UVRE EFFICACEMENT LES PRINCIPES DIRECTEURS DU MANAGEMENT DU GROUPE LOUIS HUETZ Les valeurs port^'espar Pr^'sidentet partag^'espar l'ensemble des collaborateurs reposent essentiellement sur une conception humaniste de l'entreprise et sur des qualit^'shumaines telles que la loyaut^'la confiance priori la libert^'et passion le respect des diff^'rencesculturelles per^uescomme une richesse Activit^'sServices : productivit^'business deve- lopment technologies de l'information ; safety : Activit^ Equipement planification industrielle productivit^'d^'veloppement^'chafaudage France d^'veloppement^'chafaudagesPlettac coordination BBB coordination collectivit^'s Ces valeurs sont une r^'alit^d'ans la vie du Groupe Un reporting mensuel de performance permet et dans sa gestion quotidienne ^ travers son de suivre le r^'sultatdes actions entreprises pour organisation matricielle l'autonomie et la libert^' chacun des deux p^'rim^tres d'action donn^'esaux filiales la coordination et le contr^leincarn^'spar la holding en charge de la coh^'siond'ensemble de la vision strat^'giqueet qui vient Pour l'ann^'eles ^'quipesCape adh^reront ^ la d^'marcheen venant s'int^'greraux progress des synergies de croissance branche Services units de la ainsi que l'ont fait les ^'quipesHertel et Prezioso L'organisation matricielle permet de mettre en couvre efficacement les principes directeurs du Le mod^le^'conomiquedu Groupe fond^'sur management du Groupe et s'articule autour de cette organisation matricielle et le nombre r^'duit trais p^les: de niveaux hi^'rarchiquesint^gredans le fonc- Les directeurs de filiales repr^'sentantles divisions tionnement au jour le jour des r^glessimples de autour d'une des march^'set produits ; management qui s'articulent zone La holding animatrice regroupant de mani^re verte et d'une zone rouge transverse les fonctions support de pilotage de contr^leet de financement Structure l^'g^r3e0 La zone verte correspond ^ l'espace de libert^'de personnes o^,,la communication est directe et chaque filiale et illustre le principe essentiel de simple sans v^'ritablenotion de niveaux hi^'rar- subsidiarit^'et d'autonomie Elle de repr^'senteplus chiques : 90 des d^'cisionsprises par les dirigedeafniltiasle Les Progress Units PU groupes de travail d^'di^'s l'am^'liorationcontinue de la performance des du diff^'rentesactivit^'sGroupe et compos^'esdes responsables des filiales et de la holding Ces PU La zone rouge rassemble les r^gleset proc^'dures n^'cessaires^ la coh^'siondu Groupe et ^ son fonc- tionnement harmonieux qui peuvent ^"trepermanentes ou temporaires sont la fois des lieux de r^'flexionet d'^'changes de bonnes pratiques mais aussi un outil v^'ritable de management de projets structurants en charge Dans un environnement ^'conomiquemouvant incertain et instable cette organisation manag^'riale bas^'esur la souplesse et la flexibilit^'permet une de la mise en uvredes actions d'optimisation et adaptation constante au changement et favorise la de progr^scomp^'titivit^p'roductivit^'synergies satisfaction des clients et l'optimisation des co^ts m^'tiersharmonisation des pratiques rationalisa- tion des politiques commerciales industrielles Cette structure adaptative ^'volutiveet int^'grative Ces PU sont anim^'espar des directeurs r^'pond^ l'exigence d'efficacit^'op^'rationnelle qui ont un pouvoir hierarchique comparable ^ du Groupe et au souci de promouvoir le sens celui des chefs d'entreprise des initiatives et des responsabilit^'set de cr^'er les conditions favorables ^ l'^'panouissementdes Suite ^ l'acquisition d'Hertel et de Prezioso nous avons enti^rementrevu l'organisation des Progress Units qui sont par d^'sormaisregroup^'es activit^' hommes au sein de l'entreprise Elle au permet Groupe de relever le d^'fipermanent de la croissance externe et du d^'veloppementdurable THE THREE DIMENSIONAL MATRIX ORGANISATION OF THE GROUP Services Progress Unit Managers Responsables ces cellules ce progr^'s Services Pr^'sident Directeur g^'n^'ral Services Holding Responsables des cellules de progr^s ^ quipement Services companies Soci^'t^'sServices S^'curit^' Direction commerciale Contr^lede gestion & Audit Finance & Comptabilit^' * ' Ressources humaines Direction industrielle Syst^mesd'information Juridique &Fiscalit^' Achats bon Sourcing Asie ^quipemnt Soci^'t^'^s quipement WE EXTENDED THE LIFE OF YOUR INVESTMENTS WITH THE ACQUISITION OF HERTEL IN 2015 OF PREZIOSO IN 2016 AND OF CAPE IN 2017 THE GROUP NOW OFFERS A COMPLETE RANGE OF SERVICES COVERING MOST OF THE EUROPEAN TERRITORY WHILE ENSURING A SIGNIFICANT PRESENCE IN AFRICA ASIA AUSTRALIA AND THE MIDDLE EAST 58 The covered by Group includes range of services -Scaffolding instalation the dismantling -Scaffolding and -Alternative -Alternative access solutions rope access selfelevating platforms -Insulation -Insulation installation - corrosion protection - Prefabrication installation and maintenance of piping systems - Specialised services testing inspection main- tenance engineering The Group essentially operates in maintenance activities on existing industrial sites which ensures high recurrence It also participates in the construction of new sites such as Gorgon Ichthys and Wheatstone Australia LNG Shah Deniz Azerbaijan gas Optara Belgium refinery and TDI Germany polymers These projects are among the largest in the world 1472 Services sites 1472 implantations Services With Cape / Avec Cape Norway 63 Germany 59 Azerbaijan 15 The Netherlands 114 United Kingdom 336 Belgium 229 The Group works for the energy sectors nuclear conventional renewable oil & gas offshore and onshore the process industries chemicals pharmaceuticals steel shipbuilding civil engineering and construction In Europe the Group is present on the main markets - United Kingdom and Ireland Cape Hertel NSG Trad Co MTD Germany Hertel - Belgium / Netherlands Hertel Altrad Balliauw France Arnholdt Poujaud Comi Service Prezioso Linjebygg -Spain -Spain Rodisola -Norway -Norway Prezioso Linjebygg France 286 &t The Group is also present in -The -The Middle East Cape Hertel Prezioso Linjebygg -Southeast -Southeast Asia Thailand Singapore China Cape Hertel - Azerbaidjan Cape Hertel Australia Cape Hertel -Africa -Africa Angola Congo Nigeria South Africa Prezioso Linjebygg Geographical coverage and service provision effectively allow the Group to respond to international tenders which are increasingly popular with industrial customers The integration of scaffolding manufacturing operations within the group provides high investment capacity in quality equipment at the best price Algeria 1 Nigeria 9 YH, Congo24 Angola 20 Jordan 2 Qatar 28 Kuwait 9 LIFE CYCLE EXTENSION Saudi Arabia 55 Oman 18 Bahrain 24 United Arab Emirates 51 59 ELCTRONIAY EXPLORE FILED La gamme de services du groupe comprend : FILED et des -203 d^'montage ^'chafaudages d^'montage ; -20 3 Des solutions d'acc^salternatives cordistes nacelles ^'l^'vatrice; s China 9 Oct L'installation d'isolants ; La protection corrosion ; La pr^'fabricationl'installation et la maintenance 18 de syst^mesm^'caniques; Des services sp^'cialis^'stesting inspection 1:13 PM ing^'nieriede maintenance - Le groupe intervient principalement sur des acti- vit^'sde maintenance de sites industriels existants RICHLAND ce qui assure une grande r^'currence^ l'activit^' Il participe ^'galement^ la construction de nou- veaux sites tels que Gorgon Ichthys Wheatstone - Australic LNG Shah Deniz Azerbaidjan gaz Optara Belgique raffinerie TDI Allemagne polym^res Ces projets sont parmi les plus impor- tants au monde COMN Le groupe travaille pour les secteurs de l'^'nergie nucl^'aireconventionnel renouvelable du p^'troleet du gaz naturel off shore et on shore PLEAS des industries de process chimie pharmacie - aci^'riesde la construction navale du g^'nie civil et du b^timent Thailand 20 Philippines 1 Malaysia 3 Indonesia 7 Singapore 29 Australia 37 203CP41759 En Europe le groupe est pr^'sentsur les principaux march^'s: -Royaume -Royaume et Irlande : Cape Hertel NSG Trad Co MTD -Allemagne -Allemagne : Hertel ; - BelgiPqauyes : Hertel Altrad Balliauw -Alemagn ; 203CP401759 France : Arnholdt Poujaud Comi Service Prezioso Linjebygg ; - Espagne : Rodisola ; : Norv^ge Prezioso ; Linjebygg Le groupe est ^'galementpr^'sent: Au Moyen Cape Hertel Prezioso Linjebygg : En Asie du Sud Est Thailande Singapour Chine : Cape Hertel ; En Azerbaidjan : Cape Hertel ; En Australie : Cape Hertel ; En Afrique Angola Congo Nig^'riaAfrique du Sud : Prezioso Linjcbygg La couverture g^'ographiqueet l'offre de services permettent de r^'pondreefficacement aux appels d'offre internationaux de plus en plus pris^'spar la client^leindustrielle L'int^'grationau sein du groupe avec les activit^'sde fabrication d'^'chafaudages assure une capacit^'d'investissement importante dans des de ^'quipemqeuanlitt^'sau meilleur prix LIFE CYCLE EXTENSION 60 EXPLORE PERFORMANCE OF THE FISCAL YEAR BY GEOGRAPHICAL ZONE OVERALL THE GROUP'S SERVICES BUSINESS HAS EXPERIENCED A VERY SOLID YEAR 2016/2017 DOWN BY ONLY % COMPARED TO 2015/2016 AT CONSTANT SCOPE I.E. INCLUDING HERTEL AND PREZIOSO FOR THE 12 MONTHS PERIOD BUT EXCLUDING CAPE THESE RESULTS ARE DUE TO THE COMMERCIAL DYNAMISM OF GROUP COMPANIES IN MOST GEOGRAPHIC AREAS THAT HAS LARGELY OFFSET THE COMPLETION OR SLOWDOWN OF SOME MAJOR PROJECTS GORGON SHAH DENIZ OPTARA TDI GIRASSOL THUS EXCLUDING THE IMPACT OF THESE 5 PROJECTS ORGANIC GROWTH IN THE ACTIVITY WAS 5.5 61 EXPLORE ELCTRONIAY PERFORMANCE DE L'ANN^ EPAR ZONE G^ OGRAPHIQUE FILED - 2023 DANS L'ENSEMBLE L'ACTIVIT^ DE SERVICES DU GROUPE A CONNU UNE ANN^ E2016/2017 TR^ SSOLIDE EN RETRAIT DE SEULMENT % PAR RAPPORT ^ 2015/2016 2015/2016 2015/2016 ^ P^ RIM^ TRCEONSTANT C'ESTDIRE Y COMPRIS HERTELET SEULEMENT Oct PREZIOSO SUR 12 MOIS MAIS HORS CAPE CES R^ SULTATSSONT DUS AU DYNAMISME COMMERCIAL DES SOCI^ T^ S DU GROUPE DANS LA PLUPART DES ZONES GEOGRAPHIQUES QUI PERMIS DE COMPENSER EN GRANDE PARTIE 18 1:13 L'ARR^ T OU LE RALENTISSEMENT DE L'ACTIVIT^ SUR LES GRANDS PROJETS GORGON SHAH DENIZ OPTARA IDI GIRASSOL AINSI HORS EFFET DE CES 5 PROJETS LA CROISSANCE ORGANIQUE DE L'ACTIVIT^ RESSORT ^ + 5,5 PM United Kingdom Trad Scaffolding UK mainly present in London in the building sector experienced further growth in activity - MTD UK which works mainly for clients in the social hou- operational sing sector hasimplentd and commercial reorganization affecting its activity - NSG continued its growth momentum - Hertel experienced stable activity compared to the previous financial year EXTENSION Royaume - Trad Scaffolding Royaume principalement pr^'sente^ Londres dans le secteur du b^timenta connu une nouvelle progression de son activit^' - MTD Royaume qui travaille principalement pour des clients du secteur du logement social a mis en uvre une r^'organisationop^'rationnelleet commerciale et son activit^'en a ^'t^a'ffect^'e NSG a poursuivi sa dynamique de croissance - Hertel a connu une activit^'stable par rapport ^ l'exercice pr^'c^'dent 62 62 EXPLORE Germany - Hertel Germany experienced a significant drop in activity compared to 2015/2016 due to the completion of the TDI project for BASF in Ludwigshafen which had continued to generate a significant volume of business the previous year However there too the commercial dynamism of the teams has partially offset the end of this project and achievements are well above the budget France - All the companies involved in hire assembly and services associated with the Altrad Group industry operate mainly for international clients on maintenance for contracltarsge industrial sites nuclear power plants refineries petro- chemical They operate in a market where volumes are constant due to the low number of new sites and pressure on prices is strong - Poujaud and Comi Service in France experienced a drop in activity compared to the previous year In the case of Poujaud the decline was accompanied by a sharp deterioration in which led plan - In contrast Prezioso Linjebygg experienced a positive increase in activity in France - For Altrad Arnholdt the year was marked by the completion of the Bordeaux railway station project a great success for the company This success should enable it to position itself well for future railway station renovations and civil engineering projects Spain - Rodisola stabilised its activity and profitability It has a strong market position in the petrochemical sector in Catalonia Taragonna Belgium - Netherlands - In the Benelux countries the group strengthened its undisputed leadership position in the scaffolding and industrial insulation markets - Altrad Balliauw continued its strong growth momentum driven by new business success However its subsidiary Profix insulation has not been able to reach its targets - Hertel Belgium experienced a slackening in activity but managed to increase profitability thanks to better mana- gement - Hertel Netherlands experienced a stable level of activity but profitability deteriorated A rationalization plan has been implemented to achieve profitability levels in line with Group standards -The -The streamlining of operations in this region is underway and is expected to further improve profitability and return on invested capital Norway - In Norway Prezioso Linjebygg enjoyed a year of very strong business growth thanks to contracts won from its main the customer Statoil However profitability of this subsidiary remains insufficient Caspian - the Caspian region Azerbaijan Hertel activity is concentrated on one project Shah Deniz II for BP The project which was a great success for the Group was completed during the year causing a sharp drop in sales compared to the previous year Further developments are expected in this country going forward Middle East In the Middle East streamlining continued in the various Hertel subsidiaries - Saudi Arabia Qatar Bahrain Oman and Abu Dhabi - joint venture in Saudi Arabia is being The supended whereas in Abu Dhabi the Group is acquiring the shares of its partner - The overall volume of activity is down slightly but profitability indicators are improving - Prezioso Linjebygg is present in Abu Dhabi through a subsidiary that is also being reorganized Asia - In Asia Singapore Thailand China Group companies have streamlined their business to improve profitability and their ability to generate cash The volume of activity is down over the year but there are many market opportunities both in maintenance and in the construction of new units Africa - In Angola Prezioso Linjebygg recorded a sharp decline from 2015/2016 due to completion of the Girassol project the However leadership company retains a strong position in the country - Congo experienced a slight decline in business compared to last year - In the other countries of West Africa the Group works primarily on projects Performance was below expectations especially in Nigeria Australia - Business in Australia mainly concerns the Gorgon gas terminal project The volume of activity on this project fell sharply this year compared to the previous year but was well beyond the budget thanks to the additional markets obtained on this site LIFE CYCLE EXTENSION ELCTRONIAY TAILOR SOLUTIONS BASED ON TRIPLE EXPERTISE THE CAPACITY TO UNDERSTAND THE OBJECTIVES AND CHALLENGES RELATED TO THE INTEGRITY OF OUR CLIENTS ASSETS THE ABILITY TO DEVELOP ENGINEERING SOLUTIONS AND OUR EXPERTISE COMBINED WITH OUR EXPERIENCE IN CARRYING OUT THE WORK FILED LIFE CYCLE EXTENSION EXPERTISE : DES SOLUTIONS SUR MESURE REPOSANT SUR UNE TRIPLE EXPERTISE LA CAPACIT^ ^ COMPRENDRE LES OBJECTIFS OBJECTIFS ET LES ENJEUX LI^ S^ L'INT^ GRIT^DES ACTIFS DE NOS CLIENTS LA CAPACIT^ ^ LABORERDES SOLUTIONS D'EX^CUTION D'ING^ NIERIEET NOTRE EXPERTISE JUMEL^ E^ NOTRE EXP^ RIENCEEN MATI^ RED'EX^ CUTIOND'EX^ CUTION DE TRAVAUX 65 EXPLORE ELCTRONIAY FILED - 2023 Allemagne Norv^ge Oct - Hertel Allemagne connait une baisse importante de son activit^'par rapport ^ 2015/2016 2015/2016 en raison de l'ach^vement En Norv^gePreziosa Linjebygg a connu une ann^'ede tr^s forte croissance d'activit^'gr^ceaux contrats gagn^'schez du projet TDI pour BASF ^ Ludwigshafen qui avait encore son principal dient Statoil Toutefois la rentabilit^'de cette 18 g^'n^'ru^n' volume d'activit^'significatif l'exercice pass^' filiale est encore insuffisante sur 1:13 Cependant l^ aussi le dynamisme commercial des ^'quipes de compenser partiellement PM a permis la fin de ce projet et Caspienne les r^'alisationssont largement au dessus du budget - En zone Caspienne Azerbaidjan l'activit^'d'Hertel est - concentr^'esur un projet Shah Deniz II pour BP Ce projet France un grand succ^spour le groupe s'est achev^'au cours de en RICHLAND - Toutes les soci^'t^'dse location montage et services associ^'s l'exercice d'o^,,un chiffre d'affaires forte baisse par rapport ^ l'industrie du Groupe Altrad op^rentprincipalement pour ^ l'exercice pr^'c^'denDte nouveaux d^'veloppementssont des clients internationaux dans le cadre de contrats de attendus sur ce pays dans les prochaines ann^'es maintenance de grands sites industriels centrales nucl^'aires - raffineries p^'trochimieElles ^'voluentdans un march^' Moyen o^,,les volumes sont constants en raison du faible nombre - Au Moyen la rationalisation des diff^'rentesfiliales du COM N de nouveaux sites et o^,,la pression sur les prix est forte Poujaud et Comi Service en France ont connu une baisse d'activit^'par rapport ^ l'exercice pr^'c^'dentConcernant p^'rim^trHeertel Arabie Saoudite Qatar Bahrein Oman Abu Dhabi s'est poursuivic La joint venture en Arabic Saoudite est en cours de fermeture tandis que sur Abu Dhabi Poujaud cette baisse s'est accompagn^'ed'une forte d^'gra- le groupe acquiert les parts de son partenaire PLEAS dation de sa rentabilit^'qui a conduit ^ la mise en place d'un plan de r^'organisation - Le volume d'activit^'global est en l^'g^rebaisse mais les indicateurs de profitabilit^'sont en progr^'s - - ^ l'inverse Prezioso Linjebygg a connu France une belle - Prezioso Linjebygg est pr^'sent^ Abu Dhabi au travers d'une progression d'activit^' filiale ^'galementen cours de r^'organisation Pour Altrad Arnholdt l'exercice a ^'t^m'arqu^'par l'ach^ve- ment du chantier de la gare de Bordeaux un grand succ^s Asie pour la soci^'t^'Cette r^'ussitedevrait lui permettre de se - En Asic Singapour Tha^fllandeChine les soci^'t^'dsu groupe positionner au mieux sur les futures r^'novationsde gares ont rationalis^'leur activit^'afin d'am^'liorerleur profitabi- 203CP41759 etchantiersdeg^'niecivil Espagne - Altrad Rodisola a stabilis^'son activit^'et sa rentabilit^'Sa position de march^'dans le secteur de la p^'trochimieen lit^'et leur capacit^'^ g^'n^'redre la tr^'sorerie Le volume d'activit^'est en baisse sur l'exercice mais les opportunit^'s de march^'sont nombreuses tant en maintenance que sur des projets de construction de nouvelles unit^'s Catalogne Taragonne est forte Afrique - En Angola Prezioso Linjebygg a enregistr^'une ann^'een Belgique - Pays fort recul par rapport ^ 2015/2016 en raison de la fin du - Au Benelux le groupe a renforc^'sa position de leader projet Girassol Toutefois la soci^'t^'garde un leadership tr^s incontest^'dans les march^'sde l'^'chafaudageet de l'iso- important dans le pays lation industrielle - Le Congo a connu un niveau d'activit^'^'galementen l^'ger - Altrad Balliauw a poursuivi sa dynamique de croissance recul par rapport l'an pass^' exceptionnelle port^'epar de nouveaux succ^scommerciaux ~ Sur les autres pays d'Afrique de l'Ouest le groupe travaille En revanche sa filiale d'isolation Profix n'a toujours pas ^'t^' essentiellement sur des projets La performance a ^'t^e'n en mesure d'atteindre ses objectifs de^^des attentes notamment sur le Nig^'ria Hertel Belgique a vu son activit^'se tasser mais a su aug- menter sa rentabilit^'gr^ce^ une meilleure gestion Australie Hertel Pays a connu un niveau d'activit^'stable mais sa - L'activit^'en Australie est essentiellement compos^'edu rentabilit^'s'est ; d^'t^'rior^u'ne plan de rationalisation a ^ de ^'t^m'is en uvrepour arriver des niveaux profitabilit^' conformes aux standards du groupe projet de terminal gazier Gorgon Le volume sur d'activit^' ce projet a ^'t^e'n forte baisse cette ann^'epar rapport ^ l'ann^'epr^'c^'dentmeais bien del^ du budget en raison Une rationalisation des op^'rationsdans cette r^'gionavec la mutualisation des fonctions de back office et des parcs des march^'scompl^'mentairesobtenus sur ce site de mat^'rielest en cours et devrait permettre d'am^'liorer encare la rentabilit^'et le sur retour capitaux investis 66 EXPLORE PROSPECTS PERSPECTIVES THE GROUP'S SERVICE BUSINESS IS DIRECTED AT THE SECTORS OF CONSTRUCTION ENERGY PROCESS INDUSTRIES CHEMICAL PETROCHEMICAL PHARMACEUTICAL AND OIL & GAS BOTH ONSHORE AND OFFSHORE IN THE LAST SECTOR IN ADDITION TO MAINTENANCE ACTIVITIES THE GROUP WORKS ON PROJECTS NEW FACILITIES EXTENSIONS MAJOR RENOVATIONS Oil prices experienced a sharp decline in 2015 leading our clients to reduce their maintenance expenses and to delay the start of projects Prices have since stabilized Thus the volume ofactivity of the Group the sector should also be stable for the coming year In subsequent years everything will depend on future changes in crude oil prices and the launch of certain large projects notably LNG The energy sectors including nuclear construction and process industries are not affected and should continue their development bolstered in emerging countries by the construction of new sites and in developed countries by the growing need to renovate existing sites e.g. extensive overhaul of nuclear power in France as well as some major projects Hinkley Point in the United Kingdom To face these new challenges and make the most of its leadership geographical coverage and business lines the Group has as planned set up an organization dedicated to Business Development for the Services division It will be in charge of key account management major projects and marketing tools services division website The acquisition of Cape the strengthens Group's positioning in key geographic segments and will have a major impact on the development of the services business Safety which is also coordinated at Group level remains our primary concern and that of our customers as demonstrated by our Beyond Zero programme LES ACTIVIT^ SDE SERVICES DU GROUPE S'ADRESSENT AUX SECTEURS DE LA CONSTRUCTION DE L'^ NERGIEDES INDUS- TRIES DE PROCESS CHIMIE P^ TROCHIMIE PHARMACIE ET DU P^ TROLEET DU GAZ ON SHORE ET OFF SHORE SUR CE DER NIER SEGMENT OUTRE SES ACTIVIT^ SDE MAINTENANCE LE GROUPE TRAVAILLE SUR DES PROJETS NOUVELLES INSTALLATIONS EXTENSIONS R^ NOVATIONSLOURDES ) Le prix du p^'trolea connu une baisse tr^s forte en 2015 conduisant nos clients ^ r^'duire leurs d^'pensesde maintenance et ^ diff^'rerle lancement des projets Les prix se sont stabilis^'sdepuis De ce fait le volume d'activit^'du groupe dans le secteur devrait ^'galement^"tre stable l'exercice prochain Pour les exercices suivants tout d^'pendrade l'^'volutionfuture des prix du brut et du lancement de certains grands projets LNG notamment Les secteurs de l'^'nergienotamment nucl^'aire de construction et des industries de process ne sont pas impact^'set devraient continuer leur d^'veloppementport^'dans les pays ^'mergents par construction de nouveaux sites et dans les pays d^'velopp^'psar les besoins croissants en r^'novationdes sites existants par exemple le grand car^'nagedu nucl^'aireen France ainsi que par quelques projets d'envergure Hinkley point au Royaume Afin de faire face ^ ces nouveaux d^'fiset de au tirer mieux parti de sa position de leader ainsi que de sa couverture g^'ographiqueet m^'tiers le groupe s'est comme pr^'vudot^'d'une organisation d^'di^'aeu Business Development de la branche Services en charge notamment du suivi des grands clients Key account management des grands projets et des outils marketing site internet de la branche services L'acquisition de Cape vient renforcer le positionnement du Groupe sur des secteurs g^'ographiques cl^'set aura un impact majeur sur le d^'veloppementde l'activit^'services La s^'curit^S' afety elle aussi coordonn^'eau niveau du groupe demeure notre premi^re pr^'occupationet celle de noBsecyloinendts atteste notre programme ainsi qu'en Zero LIFE CYCLE EXTENSION 67 ELCTRONIAY EXPLORE FILED FILED -203 -203 Oct 18 SERVICES ORDER BOOK 1:13 PM - ORDER BOOK AT THE END OF AUGUST 2017 COVERS 53 OF THE VOLUME OF FORECAST ACTIVITY IN THE RICHLAND COMING YEAR A) - SS COMN PLEAS } - 2.842 53 1.282 08/2017 In M<illion En Millions c'e Nf Cay, Utter 203CP41759 Securedturnover<1year Chiffre c'affaires s^'curis^<' 1 an 203CP401759 CARNET DE COMMANDES SERVICES FIN LE CARNET DE COMMANDES AO^ T20 / COUVRE 53 DU VOLUME D'ACTIVIT^ PR^ VISIONNELDE L'EXER- CICE ^ VENIR FE CYCLE CYCLE EXTENSION LIFE CYCLE EXTENSION THE EQUIPMENT DIVISION THE EQUIPMENT DIVISION CONSISTS OF FOUR MAIN FAMILIES THESE INCLUDE THE HIRE & SALE OF SCAFFOLDING THE SALE OF EQUIPMENT FOR CONSTRUCTION PRODUCTION AND FINALLY THE SALE OF EQUIPMENT FOR LOCAL AUTHORITIES ELECTRONICALY ELECTRONICALY ELECTRONICALY 69 ELECTRONICALY ELECTRONICALY ELECTRONICALY EXPLORE ELCTRONICALY ELCTRONICALY ELECTRONICALY ELCTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY FILED FILED FILED FILED 2023 2023 2023 2023 Oct Oct 18 1:13 PM PM RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND COMMON COMMON COM ON COMMON COMMON COMMON PLEAS PLEAS PLEAS PLEAS PLEAS CASE CASE CASE # 2023CP40 1759 2023CP40 1759 2023CP401759 2023CP40 1759 2023CP401759 2023CP401759 2023CP40 1759 2023CP40 1759 203CP401759 2023CP40 1759 2023CP40 1759 2023CP401759 BULDING SOUR LIFF 71 ELCTRONIAY EXPLORE FILED FILED - 2023 Oct SCAFFOLDING HIRE & SALE VENTE ET LOCATION D'^ CHAHAUDAGES 18 1:13 The year was marked by a sharp increase in the price of the raw materials widely used in the Group L'exercice ^'coul^a' ^'t^'marqu^'par une hausse brutale des mati^respremi^reslargement utilis^'es Zinc steel and aluminium rose to very high levels dans le Groupe Le zinc l'acier et l'aluminium sant PM +/- 20 increase and measures had to be taken mont^'s^ des niveaux de tr^shaut +/- +/- 20 prix - quickly to pass these increases on to all customers de hausse ce qui a conduit ^ devoir r^'percuterces However our competitors did not follow suit as hausses dans l'urgence ^ l'ensemble des clients to RICHLAND quickly making the task more complicated in Cependant la concurrence n'a pas r^'agiaussi rapi- the field The Sales Managers had to explain the dement ce qui a rendu la t^cheplus compliqu^'e situation clearly and use their persuasive powers sur le terrain Les Directions Commerciales ont d^ avoid losing market share Overall this endeavour faire preuve de p^'dagogieet de persuasion pour - was successful ne pas perdre de parts de march^'Globalement cette entreprise a ^'t^u'ne r^'ussite COM N The United Kingdom market has been marked by significant changes over the past 12 months with large fluctuations in the British Pound and Le march^'britannique a ^'t^'marqu^'par des changements significatifs sur ces 12 derniers mois a significant increase in the cost of raw materials avec de large fluctuation de la Livre Sterling et PLEAS The market remains very competitive with the emergence of new independent players but une augmentation sensible du co^tsdes mati^res premi^resLe march^'toujours tr^scomp^'titifavec - growth on the Sales side was beyond expectations l'^'mergencede nouveaux acteurs ind^'pendants This came at the expense of the Hire side slightly a vu la partic Ventes cro^fitredel^ des attentes penalizing the margin This phenomenon is partly au d^'trimentde la Location p^'nalisantl^'g^rement accounted for by the increase in funding at very la marge La multiplication de financement ^ taux 203CP41759 lowinterestrates tr^sbas explique en partie ce ph^'nom^ne The erratic situation in orders this year is partly explained by Brexit and the surprise legislative elections that have affected contractor's orders La prise de commande erratique de cette ann^'e s'explique en partie par le Brexit et les ^'lections l^'gislativessurprises qui ont impact^'le planning However overall business in the UK slightly under l'activit^' 203CP401759 expectations des donneurs d'ordres Cependant globalc au Royaume affiche un l^'gerrecul par rapport ^ l'objectif In Germany good momentum was seen with sales performance at + 10 compared to last year The En Allemagne une bonne dynamique a ^'t^c'onsta- same was true in France for the pure scaffolding t^'eavec une performance commerciale de 10 activity Altrad Plettac Mefran and also for the par rapport ^ l'ann^'epass^'eIl en est de m^"meen Formwork and Shoring business which is expe- France pour l'activit^'pure d'^'chafaudageAltrad riencing a significant increase in turnover Plettac Mefran et aussi pour l'activit^'Coffrage et Etaiement qui connait une augmentation signifi- cative de son chiffre d'affaires 72 EXPLORE RONICALY FILED - 2023 Oct EQUIPMENT FOR CONSTRUCTION AND LOCAL AUTHORITIES 18 1:13 EQUIPMENT FOR CONSTRUCTION LOCAL AUTHORITIES DIVISION PM - All subsidiaries in this division did better than last Mefran Collectivit^'sshowed another strong perfor- year Admittedly the price effect contributed to mance this year This subsidiary has given impetus this result since gross prices were revalued by to RICHLAND between 6 and % depending on the products to the evolution of its business model by focusing more on offering services local authorities More RICHLAND over a period of six months than a third of turnover is now generated by the supply and assembly of playgrounds street furni- For the year 2016/2017 there was a particular focus ture and sports grounds It is therefore set on two German subsidiaries Atika and Lescha in to continue in this direction for the next few years order improve profitability The main customers tothese entities are DIYs for which garden products of a COM N are supplied from China Without being spectacu- The reorientation of Mefran Collectivit^'sshould leave little more room for the Telemarketing lar the recovery is track turnover is increasing and Mail Order activities They market standard on profit is at the expected level and more rigorous products and therefore the cost of distribution management measures particularly in relation to must be minimal Competition is ranging PLEAS stock have improved profitability margins are reduced and thus volume has to be - achieved by minimising structural charges This is Next year these good provisions will have to be a recurrent exercise which remains topical confirmed with the objective of achieving an EBI- TDA level of 10 within two years In the United Finally Samia Devianne the last activity in the of Kingdom the performance the Belle subsidiary was remarkable it significantly improved its turno- though branch is still in slight difficulty even the latest measures to reconsider strategy are begin- ver compared to its target This was also the case ning to bear fruit However progress is expected in Poland for the Altrad Poland subsidiary which in the next fiscal year after two difficult years is returning to growth In Central Europe the positions are stable with market shares above 70 In France Altrad Saint- Denis showed a strong performance which after a change of management showed an increase in turnover margin and profit indicators Another to milestone has yet to be reached in order meet the standards expected in the Group for these activities i.e. +/- EBITDA In Italy positions were maintained in a that tight while market stil in Spain and Portugal recovery the markets is of active as is also the case in Romania The Equipe- ment division grew by % both over the year and in relation to the previous year IN FRANCE ALTRAD SAINT SHOWED A STRONG PERFORMANCE CHRISTIAN BOUCHENOIRE 74 EXPLORE 75 EXPLORE MAT^ RIELPOUR LA CONSTRUCTION ET LES COLLECTIVIT^ S MAT^ RIELPOUR LA CONSTRUCTION En Italie les positions sont maintenues dans un march^'toujours tendu alors qu'en Espagne et au Toutes les filiales de cette branche font mieux que l'exercice pr^'c^'denCtertes l'effet prix a contri- Portugal la reprise des march^'sest active ce qui est aussi le cas pour les activit^'sen Roumanie bu^'^ ce r^'sultatpuisque les tarifs bruts ont ^'t^' r^'^'valu^'esntre 6 et % selon les produits et ce pendant un semestre La branche Equipement progresse de % tant sur l'ann^'eque par rapport ^ l'an pass^' Pour l'ann^'e2016/2017 un focus particulier sur MAT^ RIELPOUR LES COLLECTIVIT^ S deux filiales allemandes Atika et Lescha a ^'t^' men^'afin d'am^'liorerla rentabilit^'Ces entit^'s ont pour principaux clients les DIY pour lesquels les produits << garden sont approvisionn^'sdepuis la Chine Sans ^"trespectaculaire le redressement est en bonne voie le chiffre d'affaires est en progression le profit est au niveau de l'attendu et les mesures de gestion plus rigoureuses en particulier pour les stocks auront permis d'am^'liorerla rentabilit^'L'ann^'eprochaine ces bonnes dispositions devront ^"treconfirm^'esavec l'objectif d'atteindre un niveau d'EBITDA ^ 10 sous deux ans Mefran Collectivit^'saffiche cette ann^'eencore une belle performance Cette filiale a su trouver du dynamisme dans l'^'volutionde son mod^le^'co- nomique en s'orientant davantage vers des offres de services aupr^sdes Collectivit^'sPlus d'un tiers du chiffre d'affaires est d^'sormaisr^'alis^'par des op^'rationsde fourniture et montage d'aires de jeux de mobilier urbain de terrains multisports Il est donc pr^'vude continuer dans ce sens pour les prochaines ann^'es Cette r^'orientationde Mefran Collectivit^'sdevrait laisser un peu plus d'espace aux activit^'sde T^'l^'marketing et Vente par correspondance Celles commercialisent des produits standards et de fait le co^tde la distribution doit ^'treminime La concurrence est large les marges r^'duiteset par cons^'quentil convient de r^'aliserdu volume en limitant au mieux les charges de structure C'est un exercice r^'currentet toujours d'actualit^' Au Royaume la performance de la filiale Belle est remarquable elle am^'lioresignificativement son Chiffre d'affaires par rapport ^ son objectif ce qui est aussi le cas en Pologne pour la filiale Altrad Poland laquelle apr^sdeux ann^'esdifficiles retrouve le chemin de la croissance En Europe centrale les positions sont stables avec des parts de march^'qui sont dessus de 70 Enfin Samia Devianne derni^reactivit^'de la branche est encore en l^'g^rdeifficult^'m^"mesi les derni^resmesures visant ^ reconsid^'rerla strat^'gic commencent ^ porter leurs fruits Cependant les progr^ssont attendus pour le prochain exercice ALTRAD POLAND APR^ SDEUX ANN^ ES DIFFICILES RETROUVE En France Altrad Denis affiche une belle performance qui apr^sun changement de mana- gement fait ressortir des indicateurs de chiffres d'affaires de marge et de profit en progression Encore une ^'tape^ franchir pour atteindre les standards attendus dans le Groupe pour ces activit^'s soit +/- d'EBITDA LE CHEMIN DE LA CROISSANCE HUGUES MENAGER ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMN PLEAS -a - 20 3CF4 DING SOUR LIFF 76 EXPLORE FUNCTIONS FUNCTIONS PRODUCTION PURCHASING SOURCING FROM ASIA & LOGISTICS o N CONTINUING IN 2016 THE GROUP'S PURCHASING DEPARTMENT PURSUED ITS EFFORTS TO TRANSFORM ITS ORGANIZATION IN COOPERATION WITH THE NEWLY INTEGRATED COUNTRY ENTITIES OF THE HERTEL AND LINJEBYGG GROUPS DANS CONTIUE 2016 EFFORTS DE MJIALON DE SON ORGAN.SATION PAYS DES GROUPES NOUVELLEMENT ACHATS DANS COOP^ RATION GROUPE COP^RATION POURSUIVI AVEC POURSUIVI SES ENTIT^S ENTIT^ S 77 EXPLORE ELCTRONIAY FILED - PRODUCTION 2023 Oct Continued growth in service sales and rental acti- vities has led to an increased internal demand for scaffolding All of the group's plants exceeded their THE ALTRAD MOSTOSTAL SITE 18 2017 sales budget by producing a total of nearly 65,000 tons of scaffolding IN SIEDLCE POLAND 1:13 < HAS INVESTED With a budget of 5.6 million in 2017 the Group IN THIRD P-M is continuing its industrial investments to bolster RICHLAND SCAFFOLDING DECK its production capacity modernize its equipment and develop new products LINE The Altrad Mostostal site in Siedlce Poland has TO MEET THE GROUP'S invested in a third scaffolding decks line to meet - the group's growing demand GROWING DEMAND COM N This line will be operational from September 2017 and will increase the plant's production capacity to 1.2 million units per year allowing it to cover YOUSSEF FARES the entire group's demand for the next fiscal year In terms of restructuring the transfer of prop PLEAS production to the Altrad Mostostal factory was The Altrad Plett Production site in Gro^ r^/schen successfully completed in 2016/2017 Its main chal- Germany has increased its production capacity lenge is to produce galvanized technical props at - shorter for reinforced standards and ledgers in 2017 and market will increase its production capacity for facade more competitive prices in times which are the conditions required to conquer shares scaffolding systems in the coming year In 2018 With the development of Norms the needs of the Lightweight project will be carried out at this plant which aims to the customer scaffolding offer that is lighter but just as strong as a conventional scaffolding 203CP41759 <TheMonitoring & DeckboardsScaffoldingstructure>> Group's 203CP401759 project managed by the holding company the European market will be better met PURCHASING Continuing in 2016 the Group's purchasing department pursued its efforts to transform its organization in cooperation with the newly integrated country aims to analyse the group's forecasted needs and entities of the Hertel and Linjebygg groups scaffolding production capacity in to order define an industrial and logistical organisation to better meet the expectations of the Group's subsidiaries and their customers total of external procurement now amounts to <1 billion including all activities industry and services The predominant share is represented by labour temporary and freelance The activity of the plants in the Concrete mixers work subcontracting and production and Wheelbarrows division remained stable Fac- service provision which account for around 40 tory productivity is improving and the monthly monitoring of the hourly rate set up by the holding The year 2016/2017 was particularly marked by company has validated this trend For example the sharp fluctuations in raw material prices Compa- Altrad Denis site in France launched several red to the previous year our steel purchase prices continuous improvement projects in 2016/2017 implementation implentaio such the of visual in the workshops optimisation of the paint line increased by 16 galvanising by 10 and aluminium by % reorganization of the wheelbarrow assembly cell according to Lean practices pass However the Group was able to on to product sales prices these increases Some sites are still capacity as in the case of the Croatian company Limex andthinking is under way to integrate new production UNE 3"LIGNE DE PRODUCTION DE c PLANCHERS D'^ CHAFAUDAGES > POUR FAIRE FACE a LA DEMANDE CROISSANTE demande DU GROUPE VOLSSI VOLSSIVOLSI CARLS 197 MANUFACTURING SITES 197 SITES DE PRODUCTION Continental FTTII United FTTII Middle East & FTTII Africa FTTII FTTII 80 EXPLORE The Progress Unit program was continued in The current overhaul of our Purchasing organization production segments in France Travel and will enable us to better understand the Group's IT as well as in ongoing direct purchases such as strengths both in terms of subsidiary benchmarking temporary work in France and insulation materials at the boundaries of Europe The Group's scope and the levers inherent in the supplier market seotnl}| ofconsolidation allows itto bear more weight in certain markets while remaining vigilant about the risk of supplier default The France and Europe teams were engaged SOURCING FROM ASIA Altrad Asia is the first historical presence of Altrad in Asia After eleven years of existence this structure has established itself an essential tool in the Altrad cooperative and motivated in their participation in the various working groups This has led to a Group's Purchasing -Sourcing policy tacit profitable and efficient federation Its two offices located in Hong Kong and Suzhou Levers such as innovation and partnership have been put in place to achieve lasting effects For example technological input and redesign to cost have been the subject of consultations as have laboratory and in situ tests to identify structural Shanghai's suburbs employ about 20 people Their daily actions on supplier identification negotiation administration and logistics purchasing quality help to secure and optimize the supply of products and components from Asia to all Group subsidiaries cost reductions Digitalisation is also at the heart of Purchasing thinking aimed at simplifying processes in order to guarantee autonomy speed flexibility and time saving The purchasing teams remain mobilized on a daily basis both from a contractual point of view and in terms of business options regarding the adequacy of supplier payment terms and to conditions meet our WCR commitments More generally relating to the reduction of stocks and work in progress in particular by improving flow rates The highlight of this year for Altrad Asia was its integration into the new Asia Services Progress Unit This working group brings together all the Asian subsidiaries Hertel Singapore Thailand and China and toaims speed upthe regional integration process of the Services division It is within this framework that Altrad Asia has naturally taken charge of the Purchasing and Supply issues of all these new sub- sidiaries Given the Group's current transformation master it was essential for Altrad Asia to subsidiaries the specific of needs these to grow in the coming years Nete hatd aresset remain a permanent concern In terms of fluctuations in raw material prices the 2016/2017 fiscal year was more difficult than the previous our to one We had to redouble effortscontain market increases The foreign exchange market on the other hand was ALTRAD ASIA WAS more stableand than in previousyears less challenging INTEGRATED INTO THE NEW ASIA SERVICES PROGRESS UNIT Altrad Asia remains a very efficient integration tool to years for new subsidiaries due transversal nature The objectives for the coming years are clear to create value by consolidating exchanges with the Group's relations with historical subsidiaries while developing the new subsidiaries of the Services division FARID AUMAR SOURCING FROM ASIA ALTRAD ASIA IS THE FIRST HISTORICAL PRESENCE OF ALTRAD IN ASIA AFTER ELEVEN YEARS OF EXISTENCE THIS STRUCTURE HAS ESTABLISHED ITSELF AS AN ESSENTIAL TOOL IN THE ALTRAD GROUP'S PURCHASING SOURCING POLICY 82 EXPLORE Le programme de Progress a ^'t^'poursuivi sur des segments France hors production voyages et moyens de communication ainsi que sur des achats directs en cours comme le travail temporaire en France et les mat^'riauxd'isolation aux bornes de l'Europe Le p^'rim^trgeroupe permet peser du de mieux sur certains march^'stout en restant vigilants sur le risque de d^'faillancefournisseur Ses deux bureaux localis^'s^ Hong Kong et ^ Suzhou grande banlieue de Shanghai occupent une vingtaine de collaborateurs Leurs actions quotidiennes sur l'identification de fournisseurs la n^'gociationl'administration l'administration des Achats la Qualit^' et la Logistique contribuent ^ s^'curiseret optimiser l'approvisionnement de toutes les du filiales Groupe en produits et composants en provenance d'Asie Les ^'quipesFrance et Europe ont ^'t^'impliqu^'es coop^'ratriceset motiv^'esdans leurs participations diff^'rentsgroupes aux de travail Cela a permis une f^'d^'ratiotnacite profitable et performante Les leviers comme l'innovation et le partenariat apportant des effets durables ont ^'t^m'is en uvre Par exemple l'apport technologique le redesign to cost ont fait l'objet de concertations ainsi que des essais laboratoire et in situ permettant de mettre en ^'videncedes r^'ductionsstructurelles de couts La digitalisation est aussi au c urdes r^'flexions Achats visant la simplification des processus afin de garantir autonomic rapidit^'flexibilit^'et gain de temps Les ^'quipesachats restent mobilis^'esau quotidien tant d'un point de vue contractuel que dans les options prises par affaire sur l'ad^'quationdes conditions de r^glement fournisseurs ^ la tenue de nos engagements de BFR Plus g^'n^'ralemendtes dispositions relatives ^ la r^'ductiondes stocks et des cours notamment par une am^'liorationdes cadencements des flux restent une pr^'occupation permanente Le fait marquant cette ann^'epour Altrad Asia a ^'t^s'on int^'gration^ la nouvelle Progress Unit Asia Services Ce groupe de travail regroupe toutes les filiales Asiatiques Hertel Singapour Thailande et Chine et a pour objectif d'acc^'l^'relre processus d'int^'grationr^'gionalede la branche Services C'est dans ce cadre qu'Altrad Asia a naturellement pris en charge les probl^'matiquesAchats et Approvisionnement de toutes ces nouvelles filiales Compte de la mutation actuelle du groupe il ^'taitprimordial pour Altrad Asia de ma^fitriserles de ces sp^'cificit^'dses besoins filiales services Besoins qui sont vou^'s^ cro^fitredans les ann^'es^ venir En termes de fluctuations des prix mati^resl'exercice a 2016/2017 ^'t^p'lus d^'licatque le pr^'c^'denItl a fallu redoubler d'efforts pour contenir les hausses que le march^'a impos^'esLe march^'des devises a en revanche ^'t^p'lus stable et moins d^'favorable que les ann^'espr^'c^'dentes De par sa transversalit^'Altrad Asia reste un outil tr^s d'int^'grationefficace pour les nouvelles filiales Les objectifs des exercices ^ venir sont clairs de cr^'er la valeur en consolidant les ^'changesavec les filiales historiques du groupe tout en d^'veloppantrela- tions avec les nouvelles filiales de la branche Services La refonte de notre organisation Achats qui s'op^re va permettre une meilleure mise en perspective des atouts du Groupe ^ la fois sur le benchmark de nos filiales et sur les leviers inh^'rentsau march^' fournisseurs LE SOURCING ASIE Altrad Asia est la premi^reimplantation historique d'Altrad en Asie Apr^sonze ann^'esd'existence cette structure s'est impos^'ecomme un outil incontournable de la politique Sourcing du Groupe Altrad LA LOGISTIQUE L'exercice 2017 a ^'t^c' omme pr^'vuune ann^'ede consolidation des outils de gestion au service de la comp^'titivit^d'es filiales Le reporting transport bas^'sur un nombre limit^'d'indicateurs cl^'sa permis de challenger les filiales tout au long de l'ann^'epermettant supl^'mentaire une ^'conomie supl^'mentair ^ celle valid^'ependant les sessions budg^'taireset une am^'liorationde performance par rapport ^ l'exercice pr^'c^'dent LE SOURCING EN ASIE DE PAR SA TRANSVERSALIT^ ALTRAD ASIA RESTE UN OUTIL D'INT^ GRATIONTR^ SEFFICACE DU POUR LES NOUVELLES FILIALES LES OBJECTIFS OBJECTIFS DES EXERCICES ^ VENIR SONT CLAIRS CREER DE LA VALEUR EN CONSOLIDANT LES ^ CHANGES AVEC LES FILIALES HISTORIQUES HISTORIQUES DU GROUPE TOUT D^ VELOPPAND^VELOPTANT LES RELATIONS AVEC LES NOUVELLES FILIALES DE BRANCHE SERVICES 83 EXPLORE ELCTRONIAY LOGISTICS FILED Les analyses quantitatives et qualitatives des - stocks de production et de vente ^'tendues^ The 2017 financial year was as planned a year 2023 of consolidating management tools to enhance ont filiales subsidiary competitiveness Oct Transport reporting based on a limited number 80 % du total du Groupe avec une p^'riodicit^' quadrimestrielle orient^'les dans leurs choix d'optimisation des approvisionnements ainsi que de r^'ductiondes produits sans ou ^ of key indicators made it to possible challenge faibles rotations 18 1:13 subsidiaries throughout the year allowing overall savings in addition to those validated during Les autres axes de travail privil^'gi^'es n 2017 : PM the budget sessions and an improvement in Altrad Logistique commissionnaire de transport performance compared to the previous year transform^'een centre de couts afin de laisser la - Quantitative and qualitative analyses of pro- dans performance les filiales a r^'pondu^ leurs RICHLAND duction and sales inventories extended to 80 of the Group's total every four months have guided the subsidiaries in their choice of besoins en leur faisant b^'n^'ficiedre potentiels transports suppl^'mentairestout en qualifiant un niveau tarifaire concurrentiel entre les prix optimizing supplies and reducing products with locaux et le sourcing d'Altrad Logistique Enfin RICHLAND little or no turnover la gestion centralis^'edes flux internationaux par - une cellule unique a all^'g^l'es charges adminis- The other priority areas of work in 2017 dans les Altrad Logistics a freight forwarder trans- formed into a cost centre order to keep in COM N up performance in the subsidiaries has met tratives filiales gestion des affr^tements suivi et facturation des prestations La gestion des appels d'offre quadrimestriels des imports chinois vers l'Europe en collaboration their needs by allowing them to benefit from avec Altrad Asia a permis en plus d'une approche additional transport potential while defining a competitive tariff level between local prices and ^'conomiqueperformante de limiter l'inflation des prix due ^ l'acc^'l^'ratiodne la concentration PLEAS Altrad Logistics sourcing the centraclenitrzaleizded des op^'rateursmaritimes - management of international flows as a single unit reduced the administrative burden in the of charters CASE monitoring and invoicing of services -Management -Management of the monthly tenders for to Chinese imports Europe in collaboration with Altrad Asia in addition to being an efficient economic approach has helped to curb price inflation due to the accelerated concentration of maritime operators L'EXERCICE 2017 A ^ T^UNE ANN^ E DE CONSOLIDATION DES OUTILS DE GESTION AU SERVICE DE LA COMP^ TITIVIT^ DES FILIALES LAURENT LARGUIER 84 EXPLORE INNOVATION INSIDE INNOVATION IN PRODUCTS AND SERVICES THESE PRODUCT TECHNOLOGICAL AND SERVICE INNOVATIONS ALTHOUGH FUNDAMENTAL CANNOT ALONE EXPLAIN THE SUCCESS OF THE ALTRAD GROUP THIS IS LARGELY DUE TO STRATEGIC AND MANAGERIAL INNOVATION LES INNOVATIONS PRODUITS TECHNOLOGIQUES ET DE SERVICES QUOIQUE FONDAMENTALES NE PEUVENT PAS EXPLIQUER ^ ELLES SEULES LE SUCC^ SDU GROUPE ALTRAD ~ ELUIEST D^ EN GRANDE PARTIE ^ L'INNOVATION STRAT^ GIQUEET ^ L'INNOVATION MANAGERIALE m iu m ce} 9 yD fe} Z 8 By 2 i x q = iui =) nN Ss np wo 9 8 Ec) o a3 E ES fa} x= = > Zz a Q fe} z z 3 2 ms} 2 m > nw oO 88 EXPLORE INNOVATION IN PRODUCTS AND SERVICES he Altrad Group pursues an active policy of innovation to achieve the following results - Differentiate from the competition other than on prices -Opening -Opening up new market segments to meet unmet needs Improve competitiveness and efficiency Guarantee the safety of its employees and customers - Keep ahead of cost production The Altrad Group operates in an environment equipment- -services to industry construction equipment- where technological developments are slow Moreover the Group is now more than 80 oriented Product innovation certainly exists and helps to create factors of differentiation from the competi- tion Recent projects include the motor wheelbar- row of the Fort subsidiary in the Netherlands as well as a much lighter but equally strong range of scaffolding that the Plettac subsidiary in Germany is working on Advanced technologies are also integrated into the service offering notably through house developed simulation software In the critical environment in which the Group operates height access solutions industrial sites etc. safety is an obsession and a constant focus of progress and innovation The products are constantly adapted training of the teams is reviewed and operational organisations are redefined to reach our objective Zero accident PRODUCT INNOVATIONS The Altrad Group invests in the development and tuning of high added products It relies on project teams within the Progress Units made up of method engineers and sales and marketing specialists Their work consists of developing products meet applications market segments or characteristics not covered by existing products as well as modifying existing products to improve performance lower costs and meet evolving standards SERVICE INNOVATIONS Innovation in the service professions can take several forms and Studies site preparation this an important step especially for complex sites because a poor study intervention plans can lead to poor pricing resulting either in an estimation of the means to be implemented which could lead in turn to not making an attractive offer and losing the project or an estimation with the risk of reducing the profitability of a site There have been many developments in this field in recent years with the creation of increasingly sophisticated 3D tools in This will computer many design offices continue to be an important axis of innovation in the equipmnt used have two main objectives the reinforcement of operator safety and the optimization of assembly and dismantling times management tools Innovation in systems have been set up to ensure for example time monitoring of equipment parks or even mon^>- toring of margins achieved by site in order to better manage the activity However these product technological and service innovations although fundamental cannot alone explain the success of the Altrad Group This is largely due to strategic and managerial innovation INNOVATION INSIDE RIC-HLAND COMMON COMN PLEA 91 ELCTRONIAY EXPLORE FILED L'INNOVATION PRODUITS ET SERVICES FILED - 2023 e Groupe Altrad m^neune politique active en INNOVATIONS SERVICES Oct termes d'innovation lui permettant de parvenir aux r^'sultatssuivants : L'innovation dans les m^'tiersdu service peut se Se diff^'rencierpar rapport ^ la concurrence traduire sous plusieurs formes : 18 autrement que sur les prix ; de 1:13 - Ouvrir nouveaux segments de march^'r^'pon- Les ^'tudeset la pr^'parationdes chantiers : c'est une ^'tapeimportante notamment pour les PM dant ^ des besoins non satisfaits ; chantiers complexes car une ^'tudeimprecise Am^'liorersa comp^'titivit^e't son efficacit^'; plans d'intervention peut amener ^ un chiffrage - Garantir la s^'curit^d'e ses employ^'set clients ; erron^'Avec pour cons^'quencessoit une sur- Conserver un coup d'avance sur les productions ^'valuationdes moyens rendant l'offre moins RICHLAND cost Le Groupe Altrad ^'voluedans un environnement comp^'titivesoit une ^'valuationet le risque de diminuer la rentabilit^'^ la fin du contrat Dans ce domaine il y a eu de nombreuses ^'vo- services ^ l'industrie ^'quipementspour la lutions ces derni^resann^'esavec le d^'veloppe- - construction o^,,les ^'volutionstechnologiques ment dans beaucoup de bureaux d'^'tudesdu COM N sont lentes De plus le groupe est aujourd'hui ^ plus de 80 tourn^'vers les services L'innovation produits existe certes et permet de Groupe d'outils informatiques en 3D de plus en plus sophistiqu^'sCela restera un axe important en mati^red'innovation cr^'erdes facteurs de diff^'renciationpar rapport ^ utilis^'s la concurrence Parmi les projets r^'centson pout PLEAS citer la brouette ^ moteur de la filiale Fort aux L'innovation dans les mat^'riels : les ^'volutions ont deux objectifs principaux le renforcement de la s^'curit^'des op^'rateurset l'optimisation - Pays ainsi qu'une gamme d'^'chafaudages des temps de montage et de d^'montage beaucoup plus l^'g^rmeais tout aussi r^'sistantesur laquelle travaille la filiale Plettac en Allemagne L'innovation dans les outils de gestion : certains syst^mesmis en place permettent d'assurer par 203CP41759 Lestechnologiesavanc^'essontaussi int^'gr^'e^s l'offre de services notamment ^ travers des logiciels experts de simulation d^'velopp^'esn interne Dans l'environnement critique dans lequel ^'volue le Groupe solutions d'acc^'sen hauteur sites indus- exemple un suivi des parcs de mat^'rielsen temps r^'elou encore un suivi des marges r^'alis^'epsar chantier afin de mieux piloter l'activit^' Cependant ces innovations produits technologiques triels la s^'curit^e'st une obsession et un axe de et de services quoique fondamentales ne peuvent progr^set d'innovation permanent Les produits pas expliquer ^ elles seules le succ^sdu Groupe 203CP401759 sont en permanence adapt^'sles formations des Altrad Celui est d^en grande partie ^ l'inno- ^'quipesrevues les organisations op^'rationnelles vation strat^'giqueet ^ l'inovat l'innovation manag^'riale red^'finiespour arriver ^ notre objectif Z^'roaccident INNOVATIONS PRODUITS LE GROUPE S'APPUIE Le Groupe Altrad investit dans le d^'veloppement et la mise au point de produits ^ forte d^'veloppementajout^cIl s'appuie sur des ^'quipescomprenant constitu^'es au sein des Progress Units comprenant des ing^'nieurs m^'thodeset des sp^'cialistescommerciaux et marketing Leur travail consiste ^ d^'velopperdes produits pour r^'pondre^ des applications segments de march^' ou caract^'ristiquesnon couvertes par les produits existants ainsi qu'^ modifier les produits existants pour am^'liorerles performances baisser les co^ts r^'pondre^ des ^'volutionsde normes SUR DES ^ QUIPESPROJET CONSTITU^ ESAU SEIN DE PROGRESS UNITS POUR DEVELOPPER DES PRODUITS ^ FORTE VALEUR AJOUT^ E LAURENT LARGUIER INNOVATION INSIDE INITIALLY A SCAFFOLDING MANUFACTURER THE GROUP HAS CONTINUED TO ADVANCE ITS BUSINESS MODEL MOHED ALTRAD STRATEGIC AND MANAGERIAL INNOVATION STRATEGIC INNOVATION CHANGING OUR BUSINESS MODELS Initially a scaffolding manufacturer the Group has continued to advance its business model by developing -Value -Value proposition for the customer how to best satisfy their needs - profit formula the means to be profitable and pay for capital invested -Key -Key processes and how to optimize them -Key -Key resources In this way the Group has integrated equipment rental activities corresponding to a customer need limiting investments and offering a favourable profit formula This integration became possible once the key resources for this type of activity heavy capital were available Likewise the Group has developed into a service to provider industry now by far its primary activity This sector is attractive because it focuses on a small number of multinational groups with significant barriers to entry and a global market We found that with our large fleet of equipment we had a key resource for success Given the size of the players established in this field our development came about mainly through acquisitions Today we are expanding our range of services for new skills major industrial sites integrating inspection inspection maintenance testing corrosion enginee- ring etc. in order to meet customer demand for integrated solutions Thus in a difficult and competitive market the group is always looking for the position most in line with market demand and the organization most likely to succeed in this position a a \\ \ we ELCTRONIAY L'INNOVATIONSTRAT^ GIQUEETMANAGERIALE FILED FILED L'INNOVATION STRAT^ GIQUE - FAIRE ^ VOLUERNOS BUSINESS MODELS 2023 Au d^'partfabricant d'^'chafaudagesle groupe n'a eu de cesse que de faire progresser son business Oct model en faisant ^'voluer: 18 -La -La proposition de valeur pour le client : comment 1:13 satisfaire au mieux ses besoins ; La formule de profit : comment ^"treen mesure d'^"trerentable et de r^'mun^'relres capitaux PM investis ; - Les processus cl^'et comment les ; optimiser -Les -Les ressources cl^' RICHLAND Ainsi le groupe a int^'gr^d'es activit^'sde location de mat^'rielcorrespondant ^ un besoin client limi- - ter les investissements et offrant une formule de profit favorable Cette int^'grationa ^'t^p'ossible ^ COM N partir du moment o^,,les ressources cl^'pour ce type d'activit^'capitaux abondants ont ^'t^d'isponibles De m^"mele groupe s'est d^'velopp^v'ers les ser- PLEAS vices ^ l'industric d^'sormaisde loin sa premi^re activit^'Ce secteur est attractif car concentr^'sur un petit nombre de groupes multinationaux avec - des ^ barri^res l'entr^'eimportantes et un march^' mondial Nous avons constat^'qu'avec notre parc de mat^'rielimportant nous disposions d'une res- source cl^'pour y r^'ussirL'importance des acteurs 203CP41759 install^'sdans ce domaine nous a conduits ^ r^'aliser d^'veloppement par Aujourd'hui nous ^'largissonsnotre gamme de pres- tations de services ^ l'attention des sites industriels 203CP401759 importants en int^'grantde nouvelles comp^'tences testing inspection anti corrosion ing^'nieriede maintenance afin de r^'pondre^ la demande des clients pour des solutions int^'gr^'es Ainsi dans un march^'difficile et concurrentiel le groupe est toujours ^ la recherche du positionnement le plus en phase avec la demande du march^' et de l'organisation la plus ^ m^"mede ce r^'ussir positionnement AU D^ PARTFABRICANT D'^ CHAFAUDAGES LE GROUPE N'A EU DE CESSE QUE DE FAIRE PROGRESSER SON BUSINESS MODEL MOHED ALIRAD 94 EXPLORE MANAGERIAL INNOVATION OPTIMIZING THE EXECUTION OF OUR STRATEGY Since its creation the Altrad Group has sought to set up the management structures best suited to implementing its strategy based on the latest research work in this field but also by trying to define its own original and innovative path This is how the Group's Management Charter was born This page book shared with all the Group's managers is constantly being adapted and a new version is proposed every three or four years Group has for many years been implementing a << red green zone >> model that defines the decision rights and area of responsibility of operational managers which is very broad in accordance with the principle of subsidiarity This vast green zone requires imagination creativity the and abiliabitliyty of managers to identify weak signals of market transformation to go off the beaten track and thus to be innovative The red zone and the green zone may evolve over time but manner vis always in a clear and transparent the various stakeholders Among the key concepts introduced in this charter and which make for our we can cite Progress Units or how to promote horizontal These hierarchical and transversal in particular structures do not function like a project team or traditional structure They are a forum for sharing The principle of subsidiarity or how to shorten decision channels The Altrad Group has opted for a light central structure holding com- pany with competencies essentially located in the operating entities This allows for agility and speed of reaction and avoids bureaucracy The principle of subsidiarity defines that a task must be the responsibility of the operational entity except in cases - very limited in - number where it can be better carried out by the central structure because of its competences strategy acquisitions etc. or because of the benefits aof possible pooling purchases etc. best practices benchmarking creating synergies between subsidiaries and joint progress initiatives and naturally stimulate the spirit of innovation They evolve over time embracing business logic equipment services functional logic purchasing IT etc. innovative nature is also due to the Their to fact that in addition being places of reflection and sharing they can become tools for steering and managing transformation or Valuing cultural differences how to benefit from the richness of each individual This is one of the founding concepts of the Altrad Group We are not just talking about cultures in the most general The red zone and green zone or how to clarify the responsibilities of each One of the key success factors for an organization recognized as such in the latest management research e g Gary L. sense but about everything that constitutes an individual country of origin religion education position in the company age etc. Diversity as a wealth factor Neilson Karla L. Martin and Elisabeth Powers << The Secrets to Successful Strategy Execution Harvard Business Review 2015 is clarity in the distribution of decision rights The Altrad We must not forget that innovation is first and foremost a mind before being a matter of structure or organisation How then can this mind- set be injected into the organization We have chosen the path of dialogue debate collegiality VALUING CULTURAL DIFFERENCES and exchanges outside any hierarchy so that everyone can freely express their ideas and positions This creates an environment conducive to agility and innovation IS ONE OF THE FOUNDING CONCEPTS OF THE ALTRAD Our management seminars which leave a large part to discussions on cutting issues such as courage excellence collective intelligence or innovation are a privileged moment in this sense which our partners can share GROUP MOHED ALTRAD INNOVATION INSIDE 95 ELCTRONIAY EXPLORE FILED MANAGERIALE LA VALORISATION L'INNOVATION FILED STRAT^GIE - OPTIMISER L'EX^ CUTION L'EX^ CUTION DE NOTRE STRAT^ GIE D^ssa cr^'ationle Groupe Altrad a cherch^'^ DES DIFF^ RENCES 2023 mettre en place les structures de management les CULTURELLES Oct mieux ^ m^"mede mettre en ceuvre sa strat^'gie en s'appuyant sur les derniers de travaux recherche 18 r^'alis^'sdans ce domaine mais aussi en tentant EST UN DES CONCEPTS 1:13 de d^'finirsa propre voie originale et innovante FONDATEURS PM C'est ainsi qu'est n^'ela Charte de Management du Groupe Cet ouvrage d'environ 200 pages partag^' - avec tous les managers du groupe fait l'objet d'un travail d'adaptation constant et une nouvelle DU GROUPE ALTRAD cl^' danscette RICHLAND version est propos^'etous les trois ou quatre ans Parmi les concepts introduits charte et MOHED ALTRAD qui font notre sp^'cificit^o'n peut citer notamment : Elles sont un lieu d'^'changequi favorise le partage - Le principe de subsidiarit^'ou comment raccourcir des meilleures pratiques benchmarking la mise en les circuits de d^'cision: Le Groupe Altrad a opt^' les pour une structure centrale holding l^'g^reles comp^'tences^'tantde ce fait essentiellement COM N localis^'esdans les entit^'sop^'rationnellesCeci place de synergies entre filiales et les d^'marches communes de progr^set stimulent naturellement l'esprit d'innovation Elles ^'voluentau cours du temps embrassant des logiques m^'tiers^'quipe- permet l'agilit^'et la vitesse de r^'actionet ^'vite ment services fonctionnelles achat ... Leur la bureaucratie Le principe de subsidiarit^'d^'finit caract^reinnovant tient ^'galementau fait qu'en qu'une t^chedoit ^"trede la responsabilit^'de l'entit^' plus d'^"tredes lieux de r^'flexionet de partage PLEAS op^'rationnellesauf dans cas tr^slimit^'son elles peuvent devenir des outils de pilotage et de - nombre o^,,elle peut ^"tremieux r^'alis^'epar la management de la transformation structure centrale en raison de ses comp^'tences strat^'gicacquisitions ou des b^'n^'ficeds'une La valorisation des diff^'rencesculturelles ou com- de facteurs 203CP41759 ^'ventuellemutualisationachats zone rouge et la zone verte ou comment clarifier les responsabilit^'schacun : Un des cl^'de succ^sd'une organisation reconnu comme tel dans ment profiter de la richesse de chaque individu : C'est un des concepts fondateurs du Groupe Altrad On ne parle ici pas uniquement de au cultures sens le plus g^'n^'ralmais de tout ce qui constitue un individu pays d'origine religion ^'tudesfanction les derniers travaux de recherche en management dans l'entreprise ^geLa diversit^'comme fac- par ex Gary L. Neilson Karla L.Martin et Elisabeth teur de richesse 203CP401759 Powers R^'ussirl'ex^'cutionde sa strat^'gic Harvard Business Review 2015 est la clart^'dans la Nous n'oublions pas qu'avant d'^"treune affaire de r^'partitiondes droits de d^'cisionLe Groupe Altrad structures ou d'organisation l'innovation est avant a mis en place depuis de nombreuses ann^'esun mod^lezone rouge / zone verte qui d^'finitles droits de d^'cisionet la zone de responsabilit^'des tout un ^'tatd'esprit mindset Comment alors insuffler cet ^'tatd'esprit dans l'organisation ? Nous avons choisi la voie du dialogue du d^'batde la managers op^'rationnelstr^s^'tendueen vertu coll^'gialit^d'es ^'changeshors de toute hi^'rarchie du principe de subsidiarit^'Cette zone verte tr^s afin que chacun puisse librement exprimer ses ^'tenduesollicite l'imagination la cr^'ativit^e't donc id^'eset ses positions C'est ainsi que se cr^'eun l'aptitude des managers ^ identifier les signaux sortir faibles de transformation du march^'^ des sentiers battus et donc ^ ^"treinnovants La zone environement ^ favorable l'agilit^'et l'inovation Nos s^'minairesde management qui laissent une rouge et la zone verte peuvent ^'voluerau cours large part ^ des d^'batssur des sujets transversaux du temps mais toujours de mani^reclaire et trans- parente vis des diff^'rentesparties prenantes tels que le courage l'excellence l'intelligence collective ou justement l'innovation est un moment Les Progress Units ou comment favoriser les ^'changes horizontaux : Ces structures non hi^'rarchiques et transversales ne fonctionnent ni comme une privil^'gi^'en ce sens que peuvent partager nos partenaires ^'quipeprojet ni comme une structure classique INNOVATION INSIDE 96 EXPLORE L C"ORPORATE & SOCIAL RESPONSABILITY HEALTH SAFETY AND ENVIRONMENT HSE HUMAN RESOURCES & BUSINESS ETHICS ued aALT ates Fe, fe ELECTRONICALY ELECTRONICALY ELECTRONICALY 97 ELECTRONICALY ELECTRONICALY ELECTRONICALY EXPLORE ELCTRONICALY ELCTRONICALY ELCTRONICALY ELCTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY FILED FILED FILED SAFETY S^ CURIT^ FILED Everyone within Altrad has a shared responsibility Tous les membres d'Altrad ont une responsabi- 2023 2023 the health safety and wellbeing of themselves lit^' partag^'econcernant la sant^'la s^'curit^'et 22002233 and those around them Our ambition is to foster le bien m^"meset de leur entourage Oct a culture of safety leadership in order to prevent Notre ambition est de favoriser une culture de Oct incidents throughout our global pre- leadership en mati^rede s^'curit^a'fin de pr^'venir 18 venting related injuries and achieving the very les incidents dans l'ensemble de nos activit^'s: highest safety We standards will seek to minimise pr^'venirles accidents du travail et atteindre les 1:13 our impact on the environment in all our operations plus hauts standards de s^'curit^N'ous cherchons PM impact Altrad is committed to providing a working environ- ^ minimiser notre sur l'environnement dans PM ment that is safe and environmentally friendly with toutes nos op^'rationsAltrad s'engage ^ offrir un all of our employees and partners being required environnement de travail s^ret responsable RICHLAND RICHLAND to demonstrate exemplary behaviour in the field o^,,tous ses collaborateurs et partenaires doivent RICHLAND of HSE Our objective is to exceed legal require- faire preuve d'un comportement exemplaire dans RICHLAND RICHLAND ments in order to achieve and sustain worldwide le domaine de la s^'curit^'Notre objectif est de RICHLAND excellence in HSE performance and reducing our d^'passerles exigences l^'galesafin d'atteindre et RICHLAND impact on the environment de maintenir un niveau d'excellence en mati^rede COMMON performance HSE et de r^'duirenotre impact sur COMMON Our mission is to move beyond targets towards l'environnement COM ON creating a genuine safety culture a deep sense of COMMON COMMON awareness and a commitment to prevent work- Notre mission est d'aller del^ des objectifs on COMMON related injuries The past year has seen us launch cr^'antune v^'ritableculture de la s^'curit^'une PLEAS PLEAS our new safety brand Beyond Zero and our forte sensibilisation et un engagement ^ pr^'venir PLEAS centre of excellence les accidents du travail Au cours de la derni^re PLEAS PLEAS ann^'enous avons lanc^'notre nouvelle marque Our leadership teams are ever mindful that a strong de s^'curit^'Beyond Zero del^ de z^'roet CASE CASE safety performance must never allow us to become notre centre d'excellence CASE complacent Our journey Beyond Zero requires to CASE # maintain constant vigilance at all times and to be Nos ^'quipesdirigeantes sont toujours conscientes 2023CP40 1759 2023CP40 1759 fervent in our pursuit of continuous improvement du fait qu'une solide performance en mati^rede 2023CP401759 doit jamais 2023CP401759 Our centre of excellence was established in August s^'curit^n'e nous permettre de rel^cher 2023CP401759 2017 in order to further our objective of improving notre vigilance Notre objectif Beyond Zero exige 2023CP401759 2023CP40 1759 This will the safety standards in our operations be que nous maintenions une vigilance constante en 2023CP40 1759 animating the Health and Safety Progress Unit tout temps et que nous soyons toujours ^ l'aff^t 203CP401759 2023CP40 1759 identifying and sharing best practice establishing de toute am^'liorationcontinue Notre centre 2023CP40 1759 2023CP401759 reporting mechanisms creating training material d'excellence a ^'t^'^'tablien ao^t2017 afin de and carrying out site audits each designed poursuivre notre objectif d'am^'liorerles normes to promote and improve our working practices communication and culture de s^'curit^d'ans nos op^'rationsIl s'agira d'animer la progress unit en sant^'et s^'curit^'d'identifier for We measure our incident frequency our industrial services unit using OSHA's internationally recognized Total Recordable Incident Frequency TRIF In the financial year ending 31 August 2017 our TRIF 0.22 this is among the strongest safety was Whilst record in the industry we are not complacent and continue to invest in our safety culture which are fundamental to ensuring our safety and protecting the value of our brand et de partager les meilleures pratiques de mettre en place des m^'canismesde reporting de cr^'erdu mat^'rielde formation et d'effectuer des audits sur les sites tous con^uspour promouvoir et am^'liorer nos pratiques de travail notre communication et notre culture EVERYONE WITHIN ALTRAD Our subsidiaries continue their journey Beyond Zero Their strong safety performance is recognized through achieving the highest industry standards OHSAS and ISO among many others and multiple highly acclaimed client safety awards HAS A SHARED RESPONSIBILITY FOR THE HEALTH SAFETY AND WELLBEING OF THEMSELVES AND THOSE AROUND THEM MOHED ALTRAD 98 EXPLORE HUMAN RESOURCES Nous mesurons la fr^'quencede nos incidents pour This year has seen another transformative event with notre branche de services industriels en utilisant la the announcement of the acquisition of Cape plc fr^'quencetotale des incidents enregistrables TRIF The total headcount of the Group will be around Oct de l'OSHA reconnue internationalement Au cours 39,000 employees working in over 100 countries de l'exercice se terminant le 31 ao^t2017 notre The integration of such numbers of employees 18 TRIF ^'taitde 0,22 Bien que cela figure parmi les valuing their cultural differences whilst ensuring meilleurs r^'sultatsde notre secteur d'activit^'en they become aligned to the Group's vision and 1:13 mati^rede s^'curit^L'e groupe ne rel^chepas ses philosophy is vital to our continued success PM efforts et continue d'investir dans la culture de PM our s^'curit^' Our people are strongest assets in recognition of which the Human Resources policy is geared RICHLAND RICHLAND Nos filiales poursuivent leur objectif Beyond Zero towards RICHLAND Leur solide performance en mati^rede s^'curit^' - respect for cultural differences and local spe- RICHLAND RICHLAND est reconnue par le respect des normes les plus cificities RICHLAND ^'lev^'edse l'industric OHSAS et ISO entre autres -continual enriching of the Group's culture RICHLAND et par l'obtention de nombreux prix de s^'curit^' through open and transparent social dialogue COMMON tr^sappr^'ci^'dses clients appreciation of individual commitment and COMMON strengthening of the sense of belonging in COM ON an environment where there is little hierarchy COM ON COMMON -development -development of motivation through a business COMMON project to unite all the staff around common PLEAS PLEAS values PLEAS PLEAS PLEAS We adhere to a participatory philosophy in which CASE management is actively encouraged to share the Group strategy so that everyone can appropriate CASE it and fully contribute to its implementation CASE # 2023CP40 175 2023CP40 175 Effective implementation of a Human Resources 2023CP40175 2023CP40 175 strategy requires participation at every level of the 2023CP40175 organisation Each subsidiary has its own Human 2023CP40175 2023CP40 175 Resources capacity with autonomy to adapt and 2023CP40 175 to a react local conditions This provides responsive 203CP40175 and tailored Human Resources structure WE ADHERE TO A PARTICIPATORY PHILOSOPHY IN WHICH MANAGEMENT IS ACTIVELY ENCOURAGED TO SHARE THE GROUP STRATEGY LOUIS HUETZ Whilst being mindful of the cultural diversity within the Group and the autonomy required by the subsidiaries the Human Resources department in turn is responsible for contributing to building the social culture of the Group developing mobility and internal promotion favoured by the international operations of the Group ensuring compliance with budgetary procedures and reporting and more generally to managerial efficiency The role includes guiding company managers on priority topics such as the remuneration policy harmonization of and of pay increases implementation variable remuneration systems fixed and vocational training policy geared to safety quality and job enrichment 101 ELCTRONIAY EXPLORE FILED dialogue to promote negotiation individual FILED - motivation and the various forms of employee 2023 participation and expression promoting innovations in management of Oct working time and living conditions Clear and effective communication will underpin our 18 ability integrate our global employee community to 1:13 and efforts continue to be made to improve our methods of communication We strive to create a solid foundation of cohesion shared values solida- PM - rity and conviviality between the representatives of the various subsidiaries and the holding company RICHLAND In order to facilitate this foundation and open exchanges four key events are organised throughout the year in addition to regular weekly contact and Tout en ^'tantsoucieuse de la diversit^'culturelle Progress Unit meetings the Group committees in au sein du Groupe et de l'autonomic requise par - March and July the budgetary sessions from May les filiales la Direction des Ressources Humaines to June the sales in seminar August and the annual pour sa part est charg^'ede : Group seminar in December RESSOURCES HUMAINES Contribuer la construction de la culture sociale ^ du Groupe la COM N D^'veloppermobilit^'et la promotion interne favoris^'espar les activit^'s internationales du Cette ann^'ea vu un autre ^'v^'nementtransfor- mateur avec l'annonce de l'acquisition de Cape Groupe Assurer le respect des proc^'duresbudg^'taires PLEAS Plc L'effectif total du Groupe s'^'l^vera^ environ et du reporting et plus g^'n^'ralemendte l'effi- - 39000 collaborateurs r^'partisdans plus de 100 pays cacit^'manag^'riale L'int^'grationde ces effectifs la valorisation de leurs diff^'rencesculturelles et l'alignement sur la vision Ce r^lecomprend l'orientation des chefs d'entre- 203CP41759 etla philosophieduGroupesontindispensables ^ notre r^'ussite Nos collaborateurs sont nos atouts les plus forts et la politique de Ressources Humaines s'oriente vers prise sur des sujets prioritaires tels que : La politique de r^'mun^'ratio:nl'harmonisation des augmentations salariales et la mise en place de syst^mesde r^'mun^'ratiofnixe et variable Une politique de formation professionnelle ax^'c Le respect des diff^'rencesculturelles et des sur la s^'curit^'la qualit^'et l'enrichissement sp^'cificit^'slocales professionnel 203CP401759 L'enrichissement continu de la du culture Groupe Le dialogue pour promouvoir la n^'gociationla dialogue social ^ travers un ouvert et transparent L'appr^'ciationde l'engagement individuel et motivation individuelle et les diff^'rentesformes de participation et d'expression des salari^'s le renforcement du sentiment d'appartenance -Promouvoir -Promouvoir les innovations dans la gestion du dans un environnement peu hi^'rarchis^' temps de travail et des conditions de vic Le d^'veloppementde la motivation ^ travers un projet d'entreprise pour f^'d^'rerl'ensemble du personnel autour de valeurs communes Une communication claire et efficace renforcera notre capacit^'^ int^'grernotre communaut^'mon- diale d'employ^'set les efforts se poursuivent pour Nous adh^'rons^ une philosophie participative dans am^'liorernos m^'thodesde communication Nous Jaquelle le management est activement encourag^' nous effor^onsde cr^'erune base solide de coh^'sion ^ partager la strat^'giedu Groupe afin que chacun de valeurs partag^'esde solidarit^'et de convivialit^' puisse et s'approprier contribuer pleinement sa mise en uvre entre les repr^'sentantsdes diff^'rentesfiliales et la soci^'t^'halding Afin de faciliter cette fondation et les ^'changesouverts quatre ^'v^'nementcsl^'s La mise en uvreefficace d'une strat^'giede res- sont organis^'stout au long de l'ann^'een plus sources humaines n^'cessiteune participation ^ tous des rencontres hebdomadaires r^'guli^reset des les niveaux de l'organisation Chaque filiale dispose r^'unionsde cellules de progr^s: les comit^'sdu de sa propre capacit^'Ressources Humaines avec une autonomie d'adaptation et de r^'actionaux en Groupe mars et juillet les sessions budg^'taires de mai ^ juin le s^'minairecommercial en ao^t conditions locales Ceci permet une structure de Ressources Humaines r^'activeet adapt^'e et le s^'minaireannuel du Groupeen d^'cembre 102 EXPLORE BUSINESS ETHICS Integrity is an essential condition for conducting business not only because national and internatio- nal regulations have heightened the risk and the negative of illegal or illicit behaviour but also because integrity helps to ensure the sustainability and stability of the Group's financial health Our clients likewise face the same obliga- tions and expect the Group to conduct itself with the highest integrity The Altrad Group defines itself by subscribing to the values of honesty and fair competition values that will go hand in hand with its success The Altrad Group endeavours to act in accordance with the strictest ethical standards Our new Code of Conduct reflects the Altrad Group's commitment to integrity and is designed to help employees and partners of the Group understand the risks involved with illegal or illicit behaviour identify the circumstances that could lead to such behaviour and determine the way these situations shall be geographical handled In countries and regions where the ofrisk corruption is high we supplement our Code of Conduct with specific guidelines in to better respect order help employees and our obligations our values The Group Ethics Committee has been set up and is responsible for ensuring application of this Code Furthermore the Group's General Counsel has assumed the role of Group CompliOfaficnercaend will be assisted in his work by local Ethics Officers who will undergo the necessary training and audits Our commitment to acting with integrity compliant with ethical and legal standards to applies senior management as well as our dedicated operational workforce We a operate tolerance to compliance approach THE ALTRAD GROUP L'^ THIQUE L'int^'grit^e'st une condition essentielle ^ la conduite professionnelle non seulement parce que les r^'glementationsnationales et internationales ont accentu^'le risque et les cons^'quencesn^'gatives des comportements ill^'gauxou illicites mais aussi parce que l'int^'grit^'contribue assurer la p^'rennit^e't la stabilit^'de la sant^'financi^redu Groupe De m^"menos clients sont confront^'saux m^"mesobligations et attendent du Groupe qu'il se conduise avec la plus grande int^'grit^' Le Groupe Altrad adh^reaux valeurs d'honn^"tet^' et de concurrence loyale valeurs qui vont de pair avec son succ^s Le Groupe Altrad s'efforce d'agir dans le respect des ^'thiquesles plus strictes Notre nouveau Code de Conduite refl^tel'engagement d'int^'grit^' du Groupe Altrad et vise ^ aider les collaborateurs et partenaires du Groupe ^ comprendre les risques li^'s aux comportements ill^'gauxou illicites ^ identifier les circonstances qui pourraient conduire ^ de tels comportements et ^ d^'terminerla mani^redont ces situations seront trait^'esDans les pays ou r^'gionsg^'ographiques o^,,le risque de corruption est ^'lev^n'ous compl^'tonsnotre Code de conduite par des lignes directrices sp^'cifiquesafin d'aider nos collaborateurs ^ mieux respecter nos valeurs et nos obligations Le Comit^'d'Ethique Groupe a ^'t^'mis en place et est charg^'de veiller ^ l'application du pr^'sent Par Code ailleurs le Directeur Juridique du Groupe a assum^'la fonction d'Agent de Conformit^'Groupe et sera assist^'dans son travail par des responsables Ethique locaux qui suivront les formations et les audits n^'cessaires DEFINES ITSELF BY SUBSCRIBING TO THE VALUES OF HONESTY AND FAIR COMPETITION VALUES THAT WILL GO HAND IN HAND Notre engagement ^ agir avec int^'grit^c'onform^'ment normes ^'thiqueset juridiques s'applique ^ la Direction du Groupe ainsi qu'aux op^'rationnels Notre approche est celle de la tol^'rancez^'ro^ l'^'gardde la conformit^' WITH ITS SUCCESS RAN OREN 104 FUNDAMENTALS ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND RISK COMN MANAGE- PLEAS - 203CP4175 MENT 203CP401750 INTERNAL AUDITING INFORMATION TECHNOLOGY MANAGEMENT CONTROL & FINANCE THE PRIMARY PURPOSE OF THE CENTRAL LA VOCATION PREMI^ REDES FONCTIONS FONCTIONS AND = FUNCTIONS IS TO ENSURE MANAGEMENT CENTRALES EST D'ASSURER LE PILOTAGE ET CONTROL OF RISKS LA MA^ TRISEDES RISQUES 106 FUNDAMENTALS HOW WE MANAGE RISK A. POLITICAL AND ECONOMIC ENVIRONMENT We operate around the world and are therefore exposed to adverse situations that present a potential risk to our assets and operations Thus a drop in oil prices affecting the capital and investments of our customers is a major risk The devaluation of certain currencies and exchange controls also presents a risk particularly on the African continent The Group is also exposed to political instability in certain geographical areas Mitigation The Group's diversified activities strongly reduce exposure to a particular sector or location - Quarterly review of the investment strategy at a group committee meeting to ensure that the impacoftthse economic environment are taken into account - Monthly review of the financial performance of our operations This makes it possible to anticipate any deviation vs. the expected performance and to take appropriate corrective action Weekly review of trapped situations and rapid reaction creation of consortium hedging of blocked cash via government bonds indexed to hard currency etc. C. HEALTH SAFETY AND ENVIRONMENT HSE The group may suffer commercial damage and its reputation would be affected in the event of a safety incident involving our employees or subcontractors Mitigation The Group has set up a risk prevention plan to train staff in safety and ensure compliance with health and safety rules -This prevention policy is a top priority Launch of the safety campaign Beyond Zero a culture ofGroTheuGrpoup has adopted a prevention policy D. COMPETITION The loss of key customers and therefore market share could have a negative impact on the Group's performance The scaffolding concrete mixer and wheelbarrow markets face fierce global competition Mitigation - Consolidation in the services sector with the acquisition of Cape following the Hertel and Prezioso acquisitions strengthens our leadership position in our markets -We also leader in the sector of production of scaffolding concrete mixers and wheelbarrows B. CUSTOMER CONCENTRATION The loss of a major customer could have an impact on the Group's performance The top 10 Group customers account for 27 of turnover 31 in 2016 with the risk of a strong concentration on a given market E. RAW MATERIALS The Group's operations require the acquisition of raw materials such as steel zinc or aluminium Fluctuations in the prices of these metals can have a negative impact on the margins of production and trading subsidiaries Mitigation Customer relations aare priority from the site supervisor to the President The Group's revenues are derived from a wide variety of services through different markets in different geographical areas This the guarantees robustness and reliability of the different flows Customer purchasing decisions are decentralized considerably reducing the risk of loss or reduction of market share Long contracts particularly annual maintenance represent a large share of revenues and give significant recurrence to the activity Mitigation - Centralized purchasing within a specialised unit -Systematic competition -Systematic policy of producers and retailers to - Contractual negotiation in order obtain price revision clauses from customers -Targeted hedging policy via centrally managed forward purchases by specialised buyers RISK MANAGE- MENT 107 FUNDAMENTALS ELCTRONIAY FILED - 2023 IT SYSTEM AND CYBER SECURITY I. LIQUIDITY The risk Oct risk involves cyber risks obligations in terms of data liquidity related to the Group's overall debt is company Subsidiaries and network protection IT back provision and centralized within the holding 18 the management of system obsolescence contract their short and medium financing with Mitigation 1:13 the parent company and are either in cash pooling or are subject to advances or repayments of cash PM -The Group is certified << Cyber Essentials for our entire data center via current accounts - -All the equipment is patched and operates with Mitigation the latest security updates virus and In order to ensure financial capacity both URL filter sufficient - Data servers are duplicated data is replicated on to develop its business and to finance its working a different site capital the Group has contracted diversified RICHLAND financing and extendedthe maturityofits debt notably by contracting bonds redeemable in - G. INTEREST AND EXCHANGE RATES fine and by negotiating maturities of more than The risk includes both interest rate risk and foreign 5 years with its pool of banks The Group also COM N exchange risk foreign currency translation risk excluding euro Mitigation has confirmed credit lines through syndicated credit agreements The Group maintains a free cash position of around 4<00 million its and PLEAS -The -The Group's policy is to limit the impact of interest rate fluctuations on financial expenses to J. EXTERNAL GROWTH maintain a majority share of fixed financial Since its creation in 1985 the Group has implemented - debt over the medium term by setting up hedging a development strategy through external growth contracts Subsidiaries have little exposure to currency has acquired more than a hundred The companies last three acquisitions Hertel Prezioso and Cape risk Cash In and Cash Out flows are in the same have been large operations currency or have natural currency hedging These acquisitions lead to significant investments 203CP41759 Significantflowsthatare not included in the above cases are covered by forward purchases or sales if applicable With regard to the conversion of part of our debt into GBP the setting up of a Currency Swap is for the Group with a view to expected profitability the once companies integrated are the into Group's scope of consolidation Mitigation being studied -The Group maintains moderate debt ratios less than 2.5 < EBIDTA proforma H. CREDIT The Group's credit risk varies by geographic region and business segment This risk is particularly high in trading activities due of to the large number customers as well as in emerging based economies -The -The group has developed internally and drawing on external skills it has expertise in the execution of acquisitions operations In line with the continuity of operations already achieved the Group has developed an integration that enables to generate synergies and rapidly reach its objectives terms of free cash Mitigation The Group regularly ensures that hedges against a new customer are set up before any account is recivables monitred opened customer are and and reminders are issued before the invoice expires flow generation while respecting the cultures of the acquired companies and without hindering their ability to develop in the future All the Group's managers are aware of the risks with growth and the sales force is involved in the event of slippage and orders are limited in the event of an unhedged risk RISK MANAGE- MENT 108 ELCTRONIAY FUNDAMENTALS FIT RISK HEATMAP POLITICAL AND ECONOMIC ENVIRONMENT CUSTOMER CONCENTRATION HEALTH SAFETY AND ENVIRONMENT HSE C COMPETITION RAW MATERIALS IT SYSTEM AND CYBER SECURITY INTEREST AND EXCHANGE RATES CREDIT I LIQUIDITY EXTERNAL GROWTH + ImpactImpact / Increasig Increasing Increasing likelyhood / Propacilit^'du risque ENVIRONNEMENT POLITIQUE ET ^ CONOMIQUE CONCENTRATION CLIENTS SANT^ S^ CURIT^ET ENVIRONNEMENT HSE C CONCURRENCE MATI^ RESPREMI^ RES IT SYSTEM ET CYBER S^ CURIT^ TAUX ET CHANGE CR^ DIT I LIQUIDIT^ CROISSANCE EXTERNE 110 FUNDAMENTALS LE CONTR^ LEDES RISQUES A. ENVIRONNEMENT POLITIQUE C. SANT^ S^ CURIT^ET ENVIRONNEMENT HSE ET ^ CONOMIQUE Nous op^'ronsdans le monde entier et sommes donc expos^'s^ des situations d^'favorables Le groupe pourrait subir et sa r^'putationse trouver affect^'e de s^'curit^' des dommages commerciaux en d'incident nos employ^'sou traitants un risque potentiel sur nos actifs et nos op^'rations Ainsi la d^'teriorationdu prix du baril affectant les capitaux et investissements de nos clients est un risque devises certaines significatif La d^'valuationde ainsi le contr^le des changes repr^'sentent que africain un risque notamment sur le continent Le groupe est ^'galementexpos^'^ l'instabilit^' politique dans certaines zones g^'ographiques Att^'nuation - Le groupe a mis en place un plan de pr^'vention des risques visant ^ former le personnel en mati^rede s^'curit^e't ^ veiller au respect des r^glesd'hygi^neet s^'curit^C'ette politique de pr^'ventionest une priorit^'absoluc Lancement de la campagne s^'curit^'Beyond Z^'roa culture of safety Le groupe a fait de la Att^'nuation politique de pr^'ventionsa priorit^' -Les activit^'sdiversifi^'esdu groupe r^'duisent fortement l'exposition ^ un secteur donn^'ou ^ une localisation particuli^re Revue trimestrielle ^ l'occasion de comit^'groupe de strat^'gicd'investissement afin de s'assurer que les impacts ^li^'sl'environnement ^'conomique sont pris en compte Revue mensuelle de la performance financi^rc D. CONCURRENCE pourrait march^' de clients de La perte cl^'et donc de parts impacter la profitabilit^' groupe Les march^'s^'chafaudagesbetonni^reset brouettes sont soumis ^ une concurrence mondiale f^'roce de nos op^'rationsCela permet une anticipation de toute d^'viationvs la performance attendue mesures et la prise de correctives apropri^'es situations - Revue des de tr^'sorei devise locale et r^'actionrapide pour les d^'boucler Att^'nuation consolidation La dans le des secteur services avec l'acquisition de Cape faisant suite ^ celles d'Hertel et de Prezioso conforte notre position de leader sur nos march^'s B. CONCENTRATION CLIENTS La perte d'un client pr^'pond^'ranptourrait impacter la performance du Groupe Le top 10 des clients du groupe repr^'sente27 du chiffre d'affaires 31 en 2016 le risque ^'tant d'avoir une concentration forte sur un march^'donn^' Att^'nuation -La -La relation client est une priorit^'du superviseur sur site au Pr^'sident - Le chiffre du d'affaires groupe est issu d'une large vari^'t^d'e services ^ travers diff^'rentsmarch^'s sur diff^'renteszones g^'ographiquesCeci garantit la robustesse et la fiabilit^'des diff^'rentsflux -Les d^'cisionsd'achats chez nos clients sont d^'centralis^'esr^'duisantsignificativement le risque de perte ou de r^'ductionde part de march^' Les contrats long terme maintenance pluri annuelle notamment repr^'sententune part importante du chiffre d'affaires et donnent une r^'currence Nprooduusctiosnommes ^'galementleader dseur le secteur et de brouettes E. MATI^ RESPREMI^ RES Dans le cadre de son exploitation les activit^'sdu groupe n^'cessitentl'achat de mati^respremi^res telles que l'acier le zinc ou l'aluminium La fluctuation des cours de ces m^'tauxpeut impacter n^'gativementles marges des filiales de production et de n^'goce Att^'nuation Achats centralis^'sau sein d'une cellule sp^'cialis^'e Politique de mise en concurrence syst^'matique des producteurs et revendeurs N^'gociationcontractuelle afin d'obtenir des clauses de r^'visionde prix de la part des clients Politique de couverture cibl^'evia des achats ^ terme pilot^'sen central par des acheteurs sp^'cialis^'s significative ^ l'activit^' 111 FUNDAMENTALS ELCTRONIAY FILED - F. IT SYSTEM ET CYBER S^ CURIT^ 1. LIQUIDIT^ 2023 Le risque IT comporte des cyber risques les obligations Le risque de liquidit^'li^'^ la dette globale du groupe Oct en terme de protection des donn^'eset r^'seauxles est centralis^'au sein de la holding de t^"teLes filiales 18 consid^'rationsde sauvegardes informatiques et la contractent leur financement court et moyen terme 1:13 gestion de l'obsolescence des syst^mes aupr^sde la soci^'t^m'^reet sont soit en cash pooling soit font l'objet d'avances ou de remboursements de Att^'nuation tr^'sorerievia des comptes courants PM Le groupe est certifi^'Cyber Essentials sur - l'ensemble de notre data center Att^'nuation -L'ensemble des ^'quipementssont patch^'set Afin d'assurer une capacit^'financi^resuffisante de RICHLAND fonctionnent avec les derni^resactualisations tant pour d^'velopperson activit^'que pour financer s^'curit^a'vec anti virus et filtre URL son fonds de roulement le Groupe a contract^' -Les -Les serveurs donn^'essont dupliqu^'sles donn^'es des financements diversifi^'set a rallong^'la r^'pliqu^'essur deux sites distincts maturit^'de sa dette en contractant notamment - des emprunts obligataires remboursables in COM N G. TAUX ET CHANGE Le risque comprend la variation de taux d'int^'r^"ts ainsi que les risques de change risque de conversion fine et en n^'gociantdes ^'ch^'ance^s plus de 5 ans avec son pool bancaire Le Groupe dispose ^'galementde lignes de cr^'ditconfirm^'esv^>ales contrats de cr^'ditsyndiqu^'sLe groupe maintient des devises hors euros une position de cash disponible de l'ordre de PLEAS Att^'nuation 400 millions < -La -La politique du groupe est de limiter l'impact des - variations de taux d'int^'r^"tssur ses frais financiers J. CROISSANCE EXTERNE et de sur maintenir un horizon ^ moyen terme une Depuis sa cr^'ationen 1985 le groupe a mis en place part majoritaire de la dette financi^re^ taux fixe une strat^'giede d^'veloppementpar croissance externe Ces des 203CP41759 parla miseenplacedecontratdecouverture - Les filiales sont peu expos^'esau risque de change En effet les flux de Cash In et Cash Out sont dans la m^"medevise ou en couverture naturelle Les flux signifactifs n'entrant pas dans les cas cit^'ssont Il ainsi proc^'d^^'l'acquisition de plus d'une centaine de soci^'t^'Lses 3 derni^resacquisitions Hertel Prezioso et Cape ont ^'t^d'es op^'rationsde grande envergure induisent investisements pour le groupe dans la perspective d'une rentabilit^' couverts par des achats ou vente ^ terme le cas ^'cheant attendue une fois les soci^'t^'isntegr^'esau p^'rim^tre 203CP401759 En ce qui concerne la conversion d'une partie de notre dette en GBP pour refl^'terla part importante du groupe du Royaume dans notre activit^'approche ALM Att^'nuation la mise en place d'un SWAP de devises est ^ l'^'tude Le groupe maintient des ratios d'endettement mod^'r^'isnf^'rieurs^ 2,5 < EBITDA Proforma H. CR^ DIT Le risque cr^'ditrencontr^'par le groupe est variable par zone g^'ographiqueet par activit^'Ce risque est particuli^rement^'lev^d'ans les activit^'sde n^'goce en raison de la mulitude de clients ainsi que dans les ^'conomies^'mergentesbas^'essur le p^'trole -Le groupe a d^'velopp^e'n interne et avec le concours de comp^'tencesexternes une expertise dans l'ex^'cutiondes op^'rationsd'acquisitions Dans la continuit^'des op^'rationsd^'j^r^'alis^'else d^'velop^' groupe a une permettant de des synergsyineregises et d'atteindre rapidement les objectifs fix^'sen mati^rede g^'n^'ration Att^'nuation -Le -Le s'assure r^'guli^remenqtue des couvertures vis d'un nouveau client sont prises avant toute ouverture de compte que les encours clients sont suivis et relanc^'savant ^'ch^'ancdee la facture de free cash flow dans le respect des cultures des entreprises acquises et sans ob^'rerleur capacit^'de d^'veloppementfutur L'ensemble des managers du groupe est sensibilis^' aux risques li^'s^ la croissance et d'impliquer la force commerciale en cas de d^'rapageset de limiter les commandes en cas de risque non couvert 112 FUNDAMENTALS INTERNAL AUDITING In recent years the Group has experienced significant changes both in terms of core business and geographical target areas In this context internal auditing remains a key issue in the interests of safety and performance The internal control division has been accordingly and is currently being resized with the addition of new dedicated resources in response to the current growth of the Group Efforts to improve the reliability of scaffolding stock management to ensure better knowledge of the available assets and guarantee their safeguard continued this year These audits have allowed us to share best practices and tighten the control of material flow and existing equipment while opti- mobilisation mising the of the stock For certain entities in which the control environment was deemed insufficient action plans were initiated In addition with a view to better control of the risks associated with our new business activities and given the considerable changes in the Group's scope of consolidation group processes are being generalized to all the entities Symbolized in the Group Charter by the red zone these common procedures are above all rules of common sense that are simple and few in number Their application to the Group's new activities and their necessary homogenization have been verified and implemented in particular with regard to investment procedures recruitment control of expenditure sytematization of dual signatures and spending authorizations extension and deployment abroad of the validation of treasury operations by secure electronic banking signature With the dual objective of preserving flexibility on a daily basis while ensuring regular control and above all strong reactivity when needed THE AUDIT IS NOT AN ADDITIONAL CONTROL BUT IS The Altrad Group's internal audit approach is part of the overall performance drive The audit is not an additional control but is intended to be opera- tional and a source of proposals The department's action is always in line with the Group's strategy and in a context of rapid and sustained growth sets itself the primary goal of helping to control the risks associated with growth and the relevance of management methods INTENDED TO BE OPERATIONAL AND A SOURCE OF PROPOSALS ISABELLE GARCIA 113 FUNDAMENTALS ELCTRONIAY L'AUDIT INTERNE FILED - 2023 Le Groupe a connu ces derni^resann^'estant dans comme finalit^'premi^rede contribuer ^ la ma^fitrise Oct ses m^'tiersque dans ses zones d'intervention g^'o- graphiques une ^'volutionconsid^'rable Dans ce des risques li^'s ^ la croissance et ^ la pertinence des m^'thodesde management contexte l'audit interne reste un enjeu au majeur 18 regard des de imp^'ratifss^'curit^e't de performance 1:13 PM Le renforcement du p^lede contr^leinterne et son redimensionnement en cours avec de nouvelles - ressources d^'di^'edsoivent r^'pondre^ cette pr^'- occupation face ^ la croissance actuelle du groupe RICHLAND Les actions de fiabilisation de la gestion du parc ^'chafaudagedestin^'es^ assurer une meilleure connaissance des actifs et ^ garantir leur sauve- - garde ont ^'t^p'oursuivies cette ann^'eCes audits ont permis de partager les bonnes pratiques et de certaines COM N renforcer le contr^ledes flux de mat^'rielset des existants tout en permettant une optimisation de la mobilisation du parc Pour entit^'sdans lesquelles l'environnement de contr^lea ^'t^j'ug^' insuffisant des plans d'actions ont ^'t^e'ngag^'s PLEAS - Par ailleurs dans l'optique d'une ma^fitriseaccrue des risques li^'s ^ nos nouveaux m^'tierset eu ^'gard^ l'^'volutionconsid^'rabledu p^'rim^trdeu groupe la g^'n^'ralisatiodnes proc^'duresgroupe ^ l'ensemble 203CP41759 des nouvelles entit^'ss'est poursuivie Symbolis^'es dans la charte du Groupe par la zone rouge ces proc^'durescommunes se veulent avant tout des r^glesde bon sens simples et peu nombreuses Leur application aux nouvelles activit^'sdu groupe et leur n^'cessairehomog^'n^'isatioonnt ^'t^v'^'ri- 203CP401759 fices et mises en uvrenotamment en ce qui concerne les proc^'duresd'investissement de L'AUDIT recrutement de contr^ledes engagements de d^'pensesystematisation des doubles signatures et des autorisations de d^'pensesextension et N'EST PAS d^'ploiement^ l'international de la validation des op^'rationsde tr^'soreriepar signature bancaire UN CONTR^ LE ^'lectroniques^'curis^'e Avec le double objectif de pr^'serverla souplesse au quotidien tout en assurant un contr^ler^'gulier et surtout une r^'activit^f'orte en cas de besoin DE PLUS MAIS SE VEUT La d'audit d^'marche interne dans le Groupe Altrad s'inscrit dans le cadre de la recherche d'une perfor- mance globale L'audit n'est pas un contr^lede plus OP^ RATIONNEL ET FORCE mais se veut op^'rationnelet force de propositions L'action du service s'inscrit toujours dans le prolongement de la strat^'giedu Groupe et dans un contexte de croissance rapide et soutenue sc fixc DE PROPOSITIONS ISABELLE GARCIA 114 FUNDAMENTALS INFORMATION TECHNOLOGY THE GROUP HAS BEEN BUILDING TOWARDS A SECURE RESILIENT NETWORK WHICH WILL OFFER INDUSTRY CLASS PERFORMANCE TO ALL ASSOCIATED BUSINESSES THIS HAS ALREADY BEEN IMPLEMENTED IN MANY OF THE SUBSIDIARIES AND CONTINUES TO BE THE FOCUS FOR INFRASTRUCTURE DEPLOYMENT IT is managed by a central team based in Middleborough UK with representatives based locally aplication to support desktop repair and local support The Group has been focusing in 2017 on three main topics Connectivity Connectivity is the cornerstone of the infrastructure with secure links between sites strategically located servers and the utilization of a mix between hosted cloud based and on site services with a view to ensure the end user can access their software requirements from any device in any location whilst adhering to login and security protocols With the development of cloud based services and our commitment to utilize Office365 as our base platform the logical and more effective option in many cases is to move to lower costing high speed internet connections these are often cheaper than existing connectivity and provide better service to the end user Each site and business is reviewed we are looking to use the best available connectivity and also install hardware allowing us to support the site whilst connecting it to the Group wide area network CONNECTIVITY IS THE CORNERSTONE Platforming It is important that all the business units take available the them and maintain a steady investment rather than becoming locked into their software environment which produces legacy systems and invariably increases the cost to own and maintain such systems Standardization across the Group should be sought to reduce the number of vendors and systems we need to maintain It is advisable to use the latest versions of Windows desktop and server editions which can be supported and patched against any security threats Utilising Office365 will ensure that the sharing of information with valued partners as well as other within the Group remains seamless Group IT already have the infrastructure in place to provide services that are needed to host legacy systems and data storage this is not infinite and consideration is taken into the best use of our available resources Moving data and services to a cloud based environment is often more cost effective that hosting and managing infrastructure in house but this is not always practical for every business or site so testing and proof of concept along with Group ICT should be completed before making this decision Data Security Data is a valuable commodity and as such should be protected against theft misuse or loss OF THE INFRASTRUCTURE WITH SECURE LINKS BETWEEN SITES OLIVIER TICHIT It is imperative that data is secured and stored safe location on the company's infrastructure with access only granted to those that require it Data plan ensures should be included with a backup that the data backup moved and stored in a separate location to the original data to ensure compliance a responsible person data should sign daily signify for the to that the backup has completed 115 FUNDAMENTALS ELCTRONIAY FILED L'INFORMATIQUE - R^ SILIENT 2023 LE GROUPE S'EST ENGAG^ DANS LA MISE EN PLACE D'UN R^ SEAUS^ CURIS^ET QUI OFFRIRA DES PERFORMANCES DE CLASSE INDUSTRIELLE ^ L'ENSEMBLE DES M^ TIERS Oct ASSOCI^ S D^ J^D^ PLOY^DANS DE NOMBREUSES FILIALES CET OBJECTIF OBJECTIF RESTE AU C UR DU D^ PLOIEMENTDES INFRASTRUCTURES 18 1:13 L'informatique est g^'r^'pear une ^'quipecentrale LA CONNECTIVIT^ EST bas^'e^ Middleborough au Royaume avec PM des repr^'sentantsbas^'slocalement pour prendre - en charge la r^'parationde postes de travail et le LA PIERRE ANGULAIRE support d'applications locales En 2017 le groupe L'INFRASTRUCTURE RICHLAND s'est concentr^'sur trois th^mesprincipaux DE AVEC DES LIENS Connectivit^' La connectivit^'est la pierre angulaire de l'infras- - tructure avec des liens s^'curis^'esntre les sites S^ CURIS^ S des serveurs strat^'giquementsitu^'set l'utilisation d'un mix entre les services h^'berg^'bsas^'ssur le ENTRE LES SITES COM N Cloud et des services en ligne afin de s'assurer que l'utilisateur final peut acc^'der^ ses besoins en PLEAS logiciels partir de n'importe quel p^'riph^'rique OLIVIER TICHIT ^ n'importe quel endroit tout en respectant les protocoles de connexion et de s^'curit^' les menaces de s^'curit^'L'utilisation d'Office365 - permettra de s'assurer que le partage d'informa Avec le d^'veloppementdes services bas^'ssur le tions avec des partenaires externes et au sein du Cloud et notre engagement ^ utiliser Office365 Groupe reste transparent comme plateforme de base l'option la plus logique service 203CP41759 etla plus rentabledans de nombreuxcasestde passer ^ des connexions Internet haut d^'bitd'un co^tmoins ^'lev^'souvent moins chers que la connectivit^'existante et qui fournissent un meil- leur ^ l'utilisateur final Le service informatique du Groupe a d^'j^mis en place l'infrastructure pour fournir les services n^'cessaires^ l'h^'bergementdes syst^meset du stockage des donn^'es Le transfert de donn^'eset de services vers un 203CP401759 Chaque site et chaque activit^'est analys^'enous cherchons ^ utiliser la meilleure connectivit^'dis- environnement cloud est souvent plus rentable que ponible et installons ^'galementdu mat^'rielpermettant de supporter le site tout en connectant au r^'seau^ l'^'chelle du Groupe l'h^'bergementet la gestion de l'infrastructure en interne Cette solution est donc privil^'gi^'qeuand cela est possible Plateforme est important que toutes les unit^'sop^'rationnelles tirent parti de la technologic ^ leur disposition et maintiennent un investissement stable plut^tque de se retrouver enferm^'esdans leur environnement logiciel qui produit des syst^mespropri^'taireset augmente toujours les co^tsde propri^'t^e't de maintenance de ces syst^mesLa standardisation au sein du Groupe devrait ^"trerecherch^'epour r^'duirele nombre de fournisseurs et de syst^mes que nous devons maintenir Il est conseill^'d'utiliser les derni^resversions des ^'ditionsWindows de bureau et de serveur qui peuvent ^"treprises en charge et corrig^'escontre Donn^'esS^'curit^' Les donn^'essont un bien pr^'cieuxet doivent ^"tre prot^'g^'ecsontre le vol la mauvaise utilisation ou la porte Il est imp^'ratifque les donn^'essoient s^'curis^'eest stock^'esdans un endroit s^rdans l'infrastructure de l'entreprise l'acc^'sn'^'tantaccord^'qu'^ ceux qui en ont besoin Les donn^'esdoivent ^"treassoci^'es un plan de sauvegarde qui garantit que la sauvegarde des donn^'esest transf^'r^'eet stock^'edans un endroit s^'par^d'es donn^'esd'origine Afin de garantir la conformit^'une personne responsable des donn^'esdoit signer chaque jour pour signifier que la sauvegarde est correctement r^'alis^'e ATIVONYULS GATId - E202 190 8b Eb Wd - ONVI-HY NOWD 1d SVS - ETOCHASV na] a o 118 FUNDAMENTALS MANAGEMENT CONTROL IN A CONTEXT OF GROWTH IN THE NUMBER OF SUBSIDIARIES AND NEW GEOGRAPHIES THE MANAGEMENT TEAMS HAVE WORKED TO IMPROVE THE RELIABILITY AND FREQUENCY OF FINANCIAL AND OPERATIONAL INFORMATION After being expanded to support the Group's growth the Management Control team remained at the heart of a real change management process in order to increase operational and financial steering The year proved to be a demanding one for local finance teams with the implementation of new or renovated dashboards In addition the demand for stronger adherence to the monthly reporting deadlines was translated into practice Thus the common analytical framework has been reinforced Nevertheless it remains flexible and adjustable with a view to rapidly integrating the follow of future acquisitions The Group has shifted from a quarterly & Mana- gement information structure to the monthly reporting and dissemination of information Although it took almost six months to guarantee the satisfactory reliability of results the monthly reporting the of results in PU encountered no major difficulties Nevertheless this involved considerable organisational efforts The subsidiaries have been a significant driver of of change the nature new at Group level Unlike the previous integration of THE GROUP HAS SHIFTED FROM A QUARTERLY & MANAGEMENT INFORMATION STRUCTURE TO THE MONTHLY REPORTING AND DISSEMINATION OF INFORMATION the Hertel group the Prezioso integration began with the support of the Prezioso central teams in to order ultimately promote greater autonomy on the part of the regions of this group in line with the image of all the companies This was accompanied by of revamping the monthly reporting of the various business lines through the deployment of the Business Report Pack BRP The latter has been adapted to the specificities of the Services and Equipment companies In Services the Group now benefits from better commercial follow- up both upstream Sales funnel and the exhaustive follow of Order intake and downstream through the Order Backlog In addition there is now better consolidation of the monitoring of main contract margins at the level of each subsidiary In addi- tion the follow of all scaffolding stocks in the two PUs has been revised As well as the monthly distributed reports to all stakeholders one of Management Control's new roles is to encourage the exchange of dormant stocks between different companies thus redu- cing the need to resort to scaffolding rental from third party suppliers The operational aim is also to reduce unnecessary CAPEX commitments and thus optimize the Group's cash position In conjunction with the Treasury team which has deployed a Cash Management Report CMR that goes beyond the WCR to incorporate the Free Cash Flow report the Management Control Department helped to redesign the traditional monthly activity reports submitted by the subsidiaries In addition to the informal weekly exchanges the objective was to retain the direct comments made by the managers on their activity every month Each subsidiary now structures its information flow through Scorecards These are based on around fifteen key performance indicators covering three areas sales and operating performance & profitability and the achievement of Free Cash Flow generation objectives through analysis of the cash flow statement LUDOVIC LOPEZ This new Scorecard tool now enables Holding reviews to be held in each operational department every month in order to analyse and accelerate 119 ELCTRONIAY FUNDAMENTALS FILED the progress each subsidiary's own action plans FILED of THE OBJECTIVE FOR It must now become a permanent feature of the -203 Group's strategy in order to guarantee greater interactivity with its subsidiaries feedback and THE NEXT FISCAL YEAR -203 thus optimal outreach IS TO MAINTAIN A STABLE Oct After this important structuring of the Manage- 18 SET OF INDICATORS AND ment Control system the objective for the next fiscal year is to maintain a stable set of indicators 1:13 DASHBOARDS WHILE PM and dashboards while continuing to promote their continuous improvement In addition the - Controlling function will be expected to become CONTINUING TO PROMOTE more involved as a support and relay for the Treasury teams on the overall achievement of the Group's RICHLAND cash objectives Finally another major development THEIR CONTINUOUS RICHLAND project in PU Services over the next fiscal year will be IMPROVEMENT carried out on the follow of major projects over - their entire life cycle from sales to the end of the warranty period It will also aim to strengthen COM N cash optimization in large projects coupled with the optimization of productivity cost control and therefore margins LUDOVIC LOPEZ PLEAS - 203CP41759203CP401759 120 FUNDAMENTALS LE CONTR^ LEDE GESTION DANS UN CONTEXTE DE CROISSANCE DU NOMBRE DE FILIALES ET DE G^ OGRAPHIESNOU- VELLES LES ^ QUIPESGESTION ONT UVR^^ UNE PLUS GRANDE FIABILISATION ET FR^ QUENCE DE L'INFORMATION OP^ RATIONNELLE Apr^savoir ^'t^^''toff^'peour accompagner cette croissance du Groupe l'^'quipeContr^lede gestion r^'elleconduite est rest^'eau c urd'une gement afin d'accro^fitrele pilotage du chanet financier L'ann^'es'est en effet r^'v^'l^e'xeigeante pour les ^'quipesfinanci^reslocales en raison de la mise en place de tableaux de bord nouveaux ou r^'nov^'Esn outre la demande d'un respect plus fort des butoir de reporting chaque mois s'est traduite dans la pratique Ainsi le commun canevas d'analyse est d^'sormaisrenforc^'N^'anmoinsil demeure souple et modulable dans la perspective de pouvoir int^'grerrapidement le suivi de futures acquisitions a d'une information Gestion LeGroupe bascul^' & structur^'epar quadrimestre vers une diffusion mensuelle de l'information Si elle a dur^'pr^s de six mois pour garantir une fiabilit^'des r^'sul- tats satisfaisante la mensualisation des r^'sultats Gestion de la PU Equipement n'a pas rencontr^'de difficult^'majeure N^'anmoinscela a impliqu^'des efforts d'organisation importants Les filiales ont ^'t^'significativement moteur du en comprenant la nature des nouveaux enjeux au niveau Groupe ^ l'inverse de la pr^'c^'dentient^'gration du groupe Hertel l'integration de Prezioso a d'abord ^'t^i'niti^'eavec le support des ^'quipes pour favoriser centrales Prezioso ^ terme une plus grande autonomie de la part des r^'gionsde ce groupe ^ l'image de l'ensemble des soci^'t^'s Ceci est all^'de pair avec une refonte du repor- ting mensuel des diff^'rentsm^'tiersau travers du d^'ploiementdu Business Report Pack BRP Cc dernier a pu ^"tred^'clin^e'n fonction des sp^'cificit^'sdes soci^'t^'dse Services et d'Equipement Sur la partie Services le Groupe b^'n^'ficie^ pr^'sent d'un meilleur suivi commercial ^ la fois en amont Sales funnel ainsi que le suivi exhaustif de la Prise 121 FUNDAMENTALS ELCTRONIAY BASCUL^ des d'actions FILED LE GROUPE A d'acc^'l^'relr'avancement plans propres ^ Il doit d^'sormais durable- - chaque filiale s'inscrire ment afin de garantir une plus grande interactivit^' 2023 D'UNE INFORMATION & avec les filiales feedbacks respectifs et donc une animation optimale GESTION STRUCTUR^ E Oct Apr^scette importante structuration du pilotage 18 PAR QUADRIMESTRE Gestion l'objectif sur le prochain exercice est de maintenir une stabilit^'des indicateurs et tableaux 1:13 VERS UNE DIFFUSION PM de bord tout en continuant de promouvoir leur am^'liorationPar ailleurs la fonction Controlling - aura vocation ^ davantage sup- MENSUELLE DE s'impliquer comme port et relais des ^'quipesTr^'soreriesur l'atteinte L'INFORMATION RICHLAND globale des objectifs Cash du Groupe Enfin un autre projet de d^'veloppementde la PU Services sur le prochain exercice sera fait sur le suivi des LUDOVIC LOPEZ grands projets sur l'ensemble de leur cycle de vie - allant de l'avant jusqu'^ la fin de la p^'riode de garantie Cela visera aussi ^ renforcer l'optimi- commandes COM N de commandes et en aval au travers du carnet de sign^'es^ produire Order Backlog ^ cela s'ajoute une meilleure consolidation du suivi sation du cash sur les grands projets coupl^'e^ l'optimisation de la productivit^'la ma^fitrisedes co^tset donc des marges des marges des principaux contrats au niveau de Par ailleurs le suivi de l'ensemble des chaque filiale PLEAS stocks d'^'chafaudageles deux PU a ^'t^r'efondu sur - L'OBJECTIF DU del^ du reporting Scaffolding monitoring dif- fus^'chaque mois ^ l'ensemble des acteurs un des r^lesdu Controlling est d^'sormaisde favoriser les ^'changesde stocks dormants entre les diff^'rentes CONTR^ LEDE GESTION 203CP41759 soci^'t^'est donc de r^'duirele recours ^ des loca- tions d'^'chafaudager^'alis^'esavec des fournisseurs Tiers La finalit^'op^'rationnelleest ^'galementde r^'duireles engagements CAPEX superflus et donc d'optimiser la tr^'soreriedu Groupe SUR LE PROCHAIN EXERCICE EST DE STABILIT^ MAINTENIR UNE 203CP401759 En liaison avec le Service Tr^'soreriequi a d^'ploy^' de son c^t^u'n Cash Management Report CMR d^'passantle suivi BFR etint^'grantcelui du Free Cash Flow le Service Contr^lede Gestion a particip^'la refonte des traditionnels rapports d'activit^'mensuel DES INDICATEURS ET TABLEAUX DE BORD transmis par les filiales S'ajoutant aux ^'changes hebdomadaires informels l'objectif ^'taitde conserver les commentaires directs du chef d'entreprise sur TOUT EN CONTINUANT son activit^'chaque mois Chaque filiale structure d^'sormaissa remont^'ed'information au travers de DE PROMOUVOIR Scorecards Celles s'articulent sur une quinzaine d'indicateurs cl^'sde performance de autour trois axes majeurs : performance commerciale et op^'rationnelle rentabilit^'& atteinte des objectifs de g^'n^'ratiodne Free Cash Flow via l'analyse du Tableau de Flux de Tr^'sorerie LEUR AM^ LUDOVIC LOPEZ LIORATION permet Ce nouvel outil Scorecard d^'sormaistenue de revues Holding au niveau de chaque direction op^'rationnellechaque mois afin d'analyser et ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMN PLEAS - CASE#203q 124 FUNDAMENTALS FINANCE diversifying After diversifying financing maturity of debt and strengthening its financial structure the Group once again called on its ban- king partners to secure the financing of a new acquisition the Cape Group From the outset of negotiations a reflection on financial resources was conducted to meet the Group's additional needs Prior to introducing the new financing arrange- ments the business plan was updated to validate the due dates and with the ratios agreed with the financial partners Thus the banking pool was asked to set up a new syndicated credit facility totalling 4<00 million over seven years awith repayment of 1<00 million in the third year 40 million in the fourth and fifth years 70 million in the sixth year and 1<50 million on maturity The contract was signed in July 2017 with a bank and was then syndicated with the historical banking pool and 2 new financial partners These new resources made it possible to secure the acquisition of the Cape target as soon as the takeover bid was announced In addition the Group has chosen to harmonize process with the of a tool to validate cash transactions by secure elec- tronic banking signature The tool was deployed in France last year and during the year the work focused mainly on the international part With regard to the Hertel Group's operational takeover actions to improve working capital requirements continued So the positive cash was integrated into the pooling of Altrad Investment Authority With respect to Preziosio actions were engaged to the anticipate financing of working capital requirement while improving its level in to order start refunding the current account made available at the time of the acquisition that had been used to repay all the credit lines Also particular attention was paid to the position in Angolan currency THE GROUP ONCE AGAIN The historical scope is always the subject of parti- cular attention as much on the level of stocks as on payment terms for customers and suppliers CALLED ON ITS BANKING PARTNERS TO SECURE THE FINANCING OF The Group's rapid development called for an adjustment to financial reporting The models have been redesigned to best respond to the analysis of subsidiary and consolidated performance In addition organization within the Holding team and communication with entities on cash generation and control still need to be improved NEW ACQUISITION THE CAPE GROUP ISABELLE GARCIA At the end of 2017 net debt amounted to 4<58 million comprising 1< .012 billion of financial debt and 554 million of free cash flow The leverage net financial EBITDA and gearing ratios net financial equity are respected 125 ELCTRONIAY FUNDAMENTALS FILED FILED FINANCE - 2023 Apr^savoir diversifi^'ses financements allong^' LE GROUPE A ^ NOUVEAU la maturit^'moyenne de sa dette et renforc^'sa Oct structure financi^rele Groupe a ^ nouveau fait FAIT APPEL ^ SES appel ^ ses partenaires bancaires pour s^'curiser 18 le financement d'une nouvelle acquisition le PARTENAIRES BANCAIRES 1:13 Groupe Cape PM D^spremi^resn^'gociationsune r^'flexionsur les - POUR S^ CURISER ressources financi^resa ^'t^m'en^'epour r^'pondre ACQUISITION RICHLAND aux besoins compl^'mentairesdu Groupe LE FINANCEMENT D'UNE Pr^'alablement^ la mise en place du nouveau financement le business plan a ^'t^a'ctualis^'afin NOUVELLE de valider les hypoth^sesde remboursement des - ^'ch^'anceest le respect des ratios convenus avec les partenaires financiers LE GROUPE CAPE COM N Ainsi le pool bancaire a ^'t^s'ollicit^'pour la mise en place d'un nouveau cr^'ditsyndiqu^'d'un mon- ISABELLE GARCIA tant total de 400 millions s<ur une dur^'ede sept ans avec un remboursement de 100 millions < la troisi^meann^'e40 millions l<a quatri^meet PLEAS - cinqui^meann^'e70 millions l<a sixi^meann^'e et 150 millions <in fine Le contrat a ^'t^s'ign^'en juillet 2017 avec une banque et a ensuite fait l'objet d'une syndication avec le pool bancaire historique 203CP41759 ainsi que deux nouveaux partenaires financiers Ces ressources nouvelles ont permis de s^'curiser l'acquisition de la cible Cape d^sl'annonce de l'OPA Par ailleurs le Groupe a fait le choix d'harmoniser son process de r^glementavec la mise en place 203CP401759 d'un outil permettant de valider les op^'rations Le p^'rim^trheistorique fait toujours l'objet d'unc de tr^'soreriepar signature bancaire ^'lectronique attention particuli^retant sur le niveau de stocks s^'curis^'Le'outil avait ^'t^d'^'ploy^e'n France l'ann^'e que sur les d^'laisclients et fournisseurs pass^'eet au cours de l'exercice les travaux ont ^'t^' ax^'sprincipalement sur la partie internationale Le rapide d^'veloppementdu Groupe a n^'cessit^' Concernant la reprise op^'rationnelledu Groupe Hertel les actions engag^'espour l'am^'liorationdu unc adaptation du reporting finance Les mod^les r^'pondre ont ^'t^r'efondus pour au mieux ^ l'ana- lyse de la performance par filiales et consolid^'e besoin en fonds de roulement ont continu~ Ainsi Egalement l'organisation au sein de l'^'quipe la tr^'soreriedisponible exc^'dentairea ^'t^i'nt^'gr^'c Holding et la communication avec les entit^'ssur dans le cash pooling d'Altrad Investment Authority Pour ce qui concerne Prezioso les actions pour anticiper le financement du besoin en fonds de la g^'n^'ratioent la ma^fitrisedu cash doivent encore faire l'objet d'une fluidit^'am^'lior^'e roulement tout en am^'liorantson niveau ont ^'t^' ^ cl^turede l'exercice 2017 l'endettement net men^'esafin de commencer ^ rembourser le compte courant mis ^ disposition lors de l'acquisition qui s'^'l^v^e 458 millions s<e r^'partissant1,012 milliard d<e dette financi^reet en 554 millions d<e avait ^'t^e'mploy^'pour rembourser la totalit^'des lignes de Cr^'dit^ galementunc attention particuli^rea ^'t^p'ort^'esur le niveau de tr^'soreriede la devise angolaisc tr^'soreriedisponible Les ratios de leverage Dette financi^renette / EBITDA et de gearing Dette financi^renette / Fonds propres sont respect^'s 126 FUNDAMENTALS CORPORATE GOVERNANCE CP401759 CP401759 GOVERNANCE & SHARE OWNERSHIP EVIDENCE ALSO SHOWS THAT THE PRESENCE OF DIRECTORS WITH RECOGNIZED QUALITIES ATTRACTS INVESTORS AND ENCOURAGES THE RAISING OF CAPITAL PARTICULARLY FOR FINANCING GROWTH LES FAITS D^ MONTRENTPAR AILLEURS QUE LA PR^ SENCED'ADMINISTRATEURS AUX QUALIT^ S ET RECONNUES ATTIRE ATTIRE LES INVESTISSEURS INVESTISSEURS FAVORISE LA COLLECTE DE CAPITAUX DESTINES EN PARII CULIER AU FINANCEMENT DE LA CROISSANCE 128 FUNDAMENTALS GOVERNANCE For many years the Altrad Group has been strongly committed to the principles of good corporate governance which a remain priority in the development and management of its activities has opted for a governance structure that complies with the rules of the AMF Autorit^'des March^'sFinanciers even though the parent company is not listed and is based on the code recommendations of the MEDEF French Association of Private Mouvement des Entreprises de France This system of governance is based on a solid financial information risk management ethical rules a system of internal control which reinforces the power of control and independence of the directors in relation to the Chairman and ensures clarity vis shareholders The Board Directors relis number of independent directors who act as a counterweight and guarantee the objectivity of the deliberations In accordance with the provisions of cor- porate governance they hold no other positions within the Group and have no contractual commitments outside their term of office as directors Thanks to their skills and experience these indepndent independent directors contribute significantly to the quality of strategic choices through their opinions their ability to distance themselves and their own business practice are particularly useful when making investment decisions restructuring taking over a company etc. Evidence also shows that the presence of directors with recognized qualities attracts investors and encourages the raising of capital for particulfainranlciyng growth Group also obserovbseerrvesrs The Altrad undfeorr attend Board meetings the same conditions and with the same level of information as directors However they do not have voting rights The Board of Directors deliberations has focused in particular on strategic issues such as - Free cash flow generation and cash -Restructuring -Restructuring measures planned as part of the integration of Hertel and Prezioso Adaptation of reporting tools to the new scope of consolidation -Analysis of external growth oppor- tunities and the monitoring of their this , and more particularly year the strategic acquisition of the Cape group and the complex process of the public takeover bid which has been the subject of very precise attention and corresponding authorisations Development financing and the terms of the new structured credit facility in connection with the acquisition of Cape - Evolution of the medium presrvation business plan and the presrvation of profitabilty profitablity for the Group The strengthening of the Group's mana- gementresources within the AIA holding company with the approval of the Board of Directors has proved to be decisive with regard to the development of international activities the major acquisitions carried out over the last two years and the deployment of Group management principles and procedures within Hertel and Prezioso In addition to the normative framework the governance of the Altrad Group within its Board of Directors is designed to act as partnership and a faithful reflection of the requirements of its shareholders preserving the necessary balance between entrepreneurship and risk management Typical of entrepreneurial capitalism the was ope- original shareholding structure ned up to leading institutional investors who joined the foundofetrhe company at just over 22 of the capital This demanding governance reinforced and validated by the strategic choices made and the results obtained is together with the business model a powerful asset for the Group and has been acclaimed by the economic and financial world It attracts prestigious investors and leading bank partners to support the Group's growth and renew its financing and more generally strengthens the Group's image in the financial community and to the able respond effectively major requirements of management both in terms of anticipation and responsiveness to changes in the environment and in terms of controlling balanced development and sustainable performance THIS DEMANDING GOVERNANCE IS TOGETHER WITH THE BUSINESS MODEL A POWERFUL ASSET FOR THE GROUP JEAN DELRIEU BOARD OF DIRECTORS 5 SHAREHOLDER REPRESENTATIVES 7 INDEPENDANT DIRECTORS 1 EXECUTIVE DIRECTOR 2 OBSERVERS 6 SESSIONS DURING THE FINANCIAL YEAR 2016/2017 AVERAGE RATE OF PARTICIPATION 92 131 ELCTRONIAY FUNDAMENTALS FILED LA GOUVERNANCE FILED - Depuis de nombreuses ann^'esle Groupe les m^"mesconditions et avec le m^"me regard du d^'veloppementdes activit^'s 2023 Oct Altrad est fortement attach^'aux principes d'une bonne gouvernance d'entreprise niveau d'information que les adminis- trateurs Toutefois i's ne disposent pas ^ l'international des rapprochements majeurs op^'r^'cses deux derni^resann^'es restent prioritaires dans le d^'velop- de voix d^'lib^'ratives et du d^'ploiementau sein d'Hertel et 18 1:13 pernent et le pilotage de ses activit^'s a opt^'pour une structure de gouvernance Le Conseil d'administration d'administration s'appuie aussi sur des comit^ssp^'cialis^'sFinance & Prezioso des principes et proc^'duresde gestion groupe PM respectant les r^gles de l'AMF l'AMF Autorit^' Strat^'gieRessources Humaines Audit des March^'sFinanciers alors m^"me Progress Unit dont les travaux se sont del^ du cadre normatif la gouver- que la soci^'t^'m^ren'est pas cot^'eet d^'roul^'esn amont dans le cadre de nance du Groupe Altrad enuvur vree s'inspirant des recommandations du r^'unions^'largiesaux autres membres sein de son Conseil d'administration d'administration RICHLAND Code MEDEF Association Fran^aise du Conseil se veut partenariale et le reflet fid^le des Entreprises Mouvement des Les r^'flexionsdu Conseil d'administra des exigences de ses actionnaires pr^'- Entreprises de France tion ont notamment port^'sur des sujets servatrice du n^'cessaire^'quilibreentre Ce syst^mede gouvernance repose sur strat^'giquestels que d'entreprise et ma^fitrisedes risques - des fondements solides transparence La generation de free cash flow et Typique du capitalisme entrepreneurial de l'information firar c^regestion des ouvert risques r^glesd'^'thiqueun syst^mede contr^leinterne qui renforcent le de ^ COM N pouvoir de contr^leet l'ind^'pendance l'optimisation du cash management l'actionnariat d'origine s'est ^ des Les actions de restructuration pr^'vues investisseurs institutionnels de premier dans le cadre l'int^'grationd'Hertel et de Prezioso ; plan qui ont rejoint le fondateur hauteur d'un peu plus de 22 du capital des administrateurs par rapport au L'adaptation des outils de reporting ; PLEAS Pr^'sidentet assurent la clart^'vis des actionnaires au nouveau perim^tre L'analyse des opportunit^'sde croissance Cette gouvernance exigeante confort^'e et valid^'epar les choix strat^'giques Le Conseil d'administration sur s'appuie externe et le suivi de leur r^'alisation op^'r^'est les r^'sultatsobtenus est avec - un nombre significatif d'administrateurs et plus particuli^rementcette ann^'e le business model un puissant atout ind^'pendantsqui constituent un contre- et pouvoir garantissent des l'objectivit^' l'acquisition strat^'giquedu groupe Cape et le processus complexe de le pour le Groupe pl^'biscit^p' ar monde ^'conomiqueet financier Elle suscite aucune autre fonction ; 203CP41759 d^'lib^'rationCsonform^'mentauxtextes relatifs au gouvernement d'entreprise ils n'exercent au sein du Groupe et n'ont aucun engagement contractuel en dehors de leur mandat l'offre publique d'achat qui a fait l'attrait d'investisseurs prestigieux et de l'objet d'une attention tres pr^'ciseet partenaires banquiers de premier plan des autorisations correspondantes pour accompagner le Groupe dans sa le financement du d^'veloppement croissance et renouveler ses financements et les modalit^'sdu nouveau cr^'dit et globalement renforce l'image du d'administrateur le 203CP401759 Forts de leurs comp^'tenceset de leur structur^'cadrcadere de l'acquisition de Cape Groupe dans la communaut^'financi^re v^'cuces administrateurs independants l'^'volutiondu Business Plan ^ moyen- Cr^'atricede valeur la gouvernance du contribuent significativement la qualit^' des choix strat^'giquespar leurs ;avis leur capacite de distanciation et leur long terme et la pr^'servationd'une rentabilit^'durable pour le Groupe groupe est de nature ^ r^'pondreeffi- cacement aux exigences majeures du management , tant en ce qui concerne pratique du monde des affaires sont Le renforcement des ressources de l'anticipation et la r^'activit^a'ux ^'volu- particuli^rementutiles lors des d^'cisions d'investissement de restructuration de reprise d'entreprise etc. Les faits par d^'montrent ailleurs que la presence d'administrateurs aux qualit^'s management du Groupe au sein de la holding AIA avec l'aval du Conseil d'admi- nistration , s'est av^'r^d'^'terminantau tions de l'environnement qu'en ce qui concerne la maitrise d'un d^'veloppement et ^'quilibr^d''une performance durable CETTE GOUVERNANCE EXIGEANTE EST reconnues attire les investisseurs et favorise la collecte de capitaux desti- AVEC LE BUSINESS MODEL UN PUISSANT n^'sen particulier au financement de la croissance Le Groupe Altrad a ^'galementcr^'^d'es postes d'observateurs qui assistent aux r^'unionsdu Conseil d'administration dans ATOUT POUR LE GROUPE JEAN DELRIEU CONSEIL D'AMINSTRAION D'ADMINISTRATION D'ADMINISTRATION 5 ADMINISTRATEURASDMINISTRATEURS REPR^ SENTANT DES ACTIONNAIRES # ADMINISTRATEURS INDEPENDANTS 1 ADMINISTRATEUR SALARIE 2 OBSERVATEURS 6 S^ ANCESAU COURS DE L'EXERCICE 2016/2017 IAUX MOYEN DE PARTICIPATION PARTICIPATION 132 FUNDAMENTALS SHARE OWNERSHIP SHARE CAPITAL LE CAPITAL SOCIAL As of August 31 2017 the share capital of Altrad Group's parent company the Altrad Investment Authority amounted to 3<37,593,500 and consisted of 3,375,935 fully paid shares with a par value of 100 The company has its registered office in Florensac 34510 - 16 Avenue de la Gardie - France All shares are ordinary voting rights and are not pledged The company's 13 shareholders are based in France Share ownership remained relatively stable Arkea Capital Investissement sold its participation that is 2.41 to Tikehau Capital in september 2017 The existing shareholders agreement has not been amended and is still valid today Au 31 ao^t2017 le capital de la soci^'t^'m^re du Groupe Altrad d^'nomm^'Aeltrad Investment Authority s'^'l^ve^ 337593500 et est compos^' de 3375935 actions int^'gralementlib^'r^'edsont la valeur nominale est de 100 La soci^'t^a' son si^gesocial ^ Florensac 34510 16 Avenue de la Gardie - France Toutes les actions ont un droit de vote ordinaire et ne font l'objet d'aucun nantissement Les 13 actionnaires de la soci^'t^s'ont ^'tablisen France L'actionnariat est rest^'relativement stable Arkea Capital Investissement a c^'d^s'a participation soit 2,41 ^ Tikehau Capital en septembre 2017 Le pacte d'actionnaire existant n'a pas ^'t^m'odifi^' et reste toujours d'actualit^' SECURITIES GIVING ACCESS TO CAPITAL LES TRES DONNANT ACC^ SAU CAPUAL In order to strengthen its equity capital and also secure financing for the Group's Altrad Investment Authority issued bonds for a total amount of 140 million with a maturity of eight years ses Pour le nouvel exercice afin de renforcer capitaux propres et ^'galement s^'curiserle financement du d^'veloppementdu Groupe la soci^'t^A'ltrad Invest- ment Authority a emis des emprunts obligataires pour un montant total de 140 millions a<vec une maturit^'de huit ans CAPITAL DISTRIBUTION LA REPARTITION DU CAPITAL Altrad participations d'Investisemnt Banque Publique d'Investisemnt 2 Financial shareholders Actionnaires financiers Other shareholders Autres actionnaires Total 1 Mr Altrad 100 2 French /State ^ tatfran^ais CAPITAL DISTRIBUTION LA R^ PARTITIONDU CAPITAL In Mil ion En Millions ' of Numbseharres Nombre d'action's 625 634 366 987 383 296 8 375 77,78 Altrad participations 11,35 Financial shareholders Actionnaires financiers financiers OQ 10,87 Banque Publique d'Investissement French State CM-CIC Investissement 7,25 BNP Paribas Developpement 1,69 Tikehau Capital 2,41 133 ELCTRONIAY FUNDAMENTALS FILED FILED 2023 Oct 18 1:13 PM - RICH- LAND COMN 203CP41759PLEAS CONSOLIDATECONSOLDIDATED - ACCOUNTS 203CP401759 134 FUNDAMENTALS CONSOLIDATED PROFIT AND LOSS ACCOUNT R^ SULTAT COMPTE DE In Million 255 CONSOLID^ Revenue from current activities Produits des activit^'scourantes Cost of raw materials and merchandises Co^tdes mati^respremi^reset marchandises consomm^'es Personnel costs Charges de personnel General expenses Frais g^'n^'rauext administratifs Depreciations and amortizations Provisions et amortissements Current operating profit R^'sultat courant EBITDA EBITDA Proforma 31 August 2017 alot alot 2017 August 31 2017 31 2017 Net amount Montado Montado Montado 31 August 2016 405,23 -606,65 -1 800,72 -572,11 -104,32 321,41 425,73 2 160,30 -483,61 -869,06 -482,27 -84,13 241,23 325,36 2 158,13 -527,04 -938,21 -400,74 -81,05 211,09 292,14 Other revenues and expenses Autres produits et charges op^'rationnelsnon courants Restructuring and underactivity costs Charges de restructuration et de activit^' Operating profit R^'sultatop^'rationnel Cost of net financial debt Co^tde l'endettement financier net Other financial product & charges Autres charges et produits financiers Profit before taxes R^'sultatavant imp^t -105,19 -10,09 206,13 -35,18 -21,43 149,52 -9,60 -10,09 221,53 -26,77 -19,18 175,58 -23,89 -7,82 179,37 -23,22 -9,80 146,36 Taxes Charge d'imp^t Profit on operating activities R^'sultatnet des activit^'sordinaires poursuivies de l'exercice -39,62 -36,71 -19,75 109,90 138,87 126,61 Share of results of associates Quote part des r^'sultatsdes Soci^'t^'Msise en Equivalence Gain from discontinued operation R^'sultatsdes activit^'sabandonn^'es Net Profit R^'sultatnet -0,06 0,29 110,13 -0,31 -0,00 138,56 -0,02 0,29 126,88 Group net profit R^'sultatnet part du Groupe Minority interest Part des minoritaires 111,05 137,62 127,09 -0,93 0,94 -0,21 * With Cape 12 month's business unaudited Aver Cape 12 mois d'activit^'or or acit^' ELECTRONICALY ELECTRONICALY ELECTRONICALY 135 ELECTRONICALY ELECTRONICALY ELECTRONICALY FUNDAMENTALS ELCTRONICALY ELCTRONICALY ELECTRONICALY ELCTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY FILED FILED FILED FILED -2023 -2023 -2023 -2023 Oct Oct 18 1:13 PM PM CONSOLIDATED CASH FLOW STATEMENT TABLEAU DES FLUX DE TR^ SORERIECONSOLID^ In Million M Net Profit R^'sultatnet cash adjustments Produits et charges non d^'caiss^'s Working capital adjustments Variation du besoin en fonds de roulement Net cash flow from operating activities Flux net de tr^'sorerieg^'n^'rp^a'r l'activit^' Capex movements Acquisition Cession d'immobilisations Acquisition and disposal of subsidiaries net of cash disposed of Tr^'sorerienette sur acquisition et cession de filiales Net cash flow from investing activities Flux net de tr^'sorerieli^'aux investissements Bond funds from shareholders Fonds obligataires re^usdes actionnaires ORA & OBSA Dividends paid to shareholders Dividendes vers^'saux actionnaires Change in loans Encaissements et remboursements d'emprunts Other financing activities Autres variation de financement Net cash flow used in financing activities Flux net de tr^'sorerieli^'aux financements Net effect of currency in cash Incidences des variations de taux de change sur la tr^'sorerie Proforma 31 August 2017 31t2017 31t2017 110,11 202,90 45,83 358,85 -82,68 -262,63 -345,31 RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND Net amount Montants Montants Nets Net amount COMMON Montents Montents rets COMMON August COMON 31 2017 31 August 2016 COMMON 81 2017 31 2016 COMMON COMMON 137,62 127,09 PLEAS PLEAS 104,49 64,81 78,77 PLEAS PLEAS PLEAS 36,70 306,92 -76,07 0,74 -75,34 242,56 CASE CASE CASE # -80,13 2023CP401759 2023CP40 1759 2023CP401759 2023CP40 1759 -449,31 2023CP401759 2023CP401759 2023CP40 1759 -529,43 2023CP401759 203CP401759 2023CP40 1759 2023CP40 1759 40,00 2023CP401759 -8,10 462,29 -25,59 468,60 -16,61 Net increase in cash and cash equivalent Variation de tr^'sorerie Cash and cash equivalent start of period Tr^'sorerie^ l'ouverture Cash and cash equivalent end of period Tr^'sorerie^ la cl^ture 165,12 314,00 479,12 Key figures available on Retrouvez les chiffres cl^'sou Groupe Groupe sur www.altrad.com 136 FUNDAMENTALS CONSOLIDATED BALANCE SHEET ASSETS BILAN CONSOLID^ ACTIF In Million FM FM avy < NON CURRENT ASSETS ACTIFS NON COURANTS Goodwill Ecarts d'acquisition Intangible Assets Immobilisations incorporelles Tangible Assets Immobilisations corporelles LTR Actifs financiers et autres actifs non courants DTA Actifs d'imp^tsdiff^'r^'s Total non current assets Total actifs non courants Proforma 31 August 2017 31-012917 Net amount to 31 August 2017 17017 Net amount Montarb ty August 31 2016 1. 12016 1 289,91 88,24 418,39 17,05 72,63 1 886,21 845,95 71,23 333,19 6,19 30,68 1 287,23 851,11 75,96 356,83 5,75 32,07 321,73 CURRENT ASSETS ACTIFS COURANTS Stocks net Stocks Trade receivable Cr^'ancesclients Current tax Imp^tscourants Other receivable Autres actifs courants Cash and cash equivalent Tr^'sorerieet ^'quivalentsde tr^'sorerie Total current assets Total actifs courants 159,82 642,56 15,23 197,19 551,24 1 566,04 131,96 516,46 21,80 77,13 479,43 1 226,78 Assets to be sold Actifs destin^'s^ ^"trec^'d^'s -2,43 0,08 1,63 Total assets Total actif Key figures available on Retrouvez les iffres d^'s www.altrad.com 3 449,82 2 530,66 550,14 * With Cape 12 month's business unaudited Avec Cape 12 mois d'activit^' non audit^ audit^ 137 ELCTRONIAY FUNDAMENTALS FILED FILED - 2023 Oct 18 1:13 PM - CONSOLIDATED BALANCE SHEET LIABILITIES BILAN CONSOLID^ PASSIF In Million FM C Total Equity Total capitaux propres Others funds from shareholders Autres fonds actionnaires Debt LT Dettes financi^resnon courantes Reserve for risks and social engagement LT Provisions et avantages sociaux non courants Other non current liabilities Autres passifs non courants Deffered Taxes Passif d'imp^tdiff^'r^' Total non current liabilities Total passif non courant Financial debt ST Dettes financi^rescourantes Reserve for risks and social engagement ST Provisions et avantages sociaux courants Trades payables Fournisseurs et comptes rattach^'s Others current liabilities Autres passifs courants Total current liabilities Total passif courant RICHLAND Proforma Net amount ma RICHLAND - Net amount Montalb Montalb August COM N 31 August 2017 12917 31 August 2017 17317 31 2016 11 2016 547,07 547,07 446,92 93,22 93,22 91,11 PLEAS - 1 387,41 947,41 994,21 308,68 71,28 86,02 203CP41759 60,45 18,36 1 868,13 42,34 17,61 1 171,86 79,82 18,10 1 269,26 64,77 64,77 63,24 203CP401759 54,74 36,61 53,60 445,24 403,52 397,02 469,87 306,83 320,11 1 034,62 811,73 833,97 Total Equity & Liabilities Total capitaux propres & passif 3 449,82 2 530,66 550,14 Altrad Investment Authority Soci^'t^p'ar Actions Simplifi^'e- Au capital de 337 592 500 < HQ Si^geSocial : 16 Avenue de la Gardie - 510 Florensac - France - RCS B^ ZIERSB 529 222 879 Auditors Les commissaires aux comptes Ernst & Young Audit 1025 Rue Henri Becquerel - CS 39520 - 34961 Montpellier - cedex 2 - France : : Grant Thornton Cit^'Internationale - 44 Quai Charles de Gaulle - CS 60095-69463 6095-69463 60095-69463 Lyon - cedex 06 - France ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELCTRONICALY ELCTRONICALY ELCTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY ELECTRONICALY FILED FILED FILED FILED 2023 2023 2023 2023 Oct Oct 18 1:13 PM PM RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND COMMON COMMON COM ON COMMON COMMON COMMON PLEAS PLEAS PLEAS PLEAS PLEAS CASE CASE CASE CASE # 2023CP40 1759 2023CP40 1759 2023CP40 1759 2023CP40 1759 2023CP401759 2023CP401759 2023CP40 1759 2023CP40 1759 203CP401759 2023CP40 1759 2023CP40 1759 2023CP40 1759 SprangPhotos Hampartzoumian Couverture labal R Sprang C. Maquillage A production JC Modeles Laura Tsello Demi Fatima Sabine Sarita Hampartzoumian Toumaire Altiad Bakker Altrad NSG Altrad Altrad Trad Cape Moreira DR mod^les Prezioso D supakit xmentoys mmx Phototh^Phot^quesquesDeathtoStock Toumaire Cr^'ation www.homework ELECTRONICAL Y ELECTRONICALY ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RIC-HLAND COMON PLEAS - 203CP41759203CP401759 ALTRAD 16 Avenue de la Gardie - 34510 Florensac - France T^'l+33 0 67 94 52 52 - Fax +33 0 67 77 08 48 - mail : admin@altrad.com www.altrad.com