Document jgGqQ8O7gg560E62jJJDVE3rk

FILE NAME Cape Asbestos CAPE DATE 2022 DOC CAPE191 DOCUMENT DESCRIPTION Annual Report - Altrad Legal - Tibbs Case Exhibit 89 Build a sustainable world Our raison d'^"treAltrad has since its foundation been built on a set of core values FILED consisting of humility courage respect conviviality and solidarity Today these values RICHLAND translate into an aspiration to build a sustainable world Concerned about the term interests of future generations Altrad relies on all its stakeholders and thanks to the commitment of its personnel its expertise and its capacity to innovate strives to make a positive contribution to the world In doing so Altrad accompanies its customers " in their energy transition goals " Altrad has since its foundation been built on a set of core values consisting of humility courage respect conviviality and solidarity Today these values translate into a mission or raison d'^"trethat defines our corporate culture informs our decision making and serves as the overarching theme of this year's Annual Report Looking ahead after a successful year where the Group's agility financial discipline and entrepreneurialism have delivered impressive performance once again the global energy transition provides compelling opportunities to achieve our aspiration by enhancing our offering and providing Build a sustainable world Presioent greater value and support to our clients as they implement their own transition strategies At the same time we continue to build on the strong foundations laid in recent years to continually improve our sustainability performance and provide a safe inclusive and healthy environment for our people to thrive The journey of Altrad continues to be characterised by limitless ambition to deliver term growth as we support our people customers and all stakeholders in our shared goal to build a better and more " sustainable world ELCTRONIAY Welcomestatement Presidnt's President's Statement FILED - Overview 2023 About Altrad Oct 18 Our operations Industrial 1:13 - Our operations Equipment & Products PM Our geographic markets - RICHLAND Financial overview - Strategic review Joint CEO strategic review A Mission Business COMN PLEAS Expancing Altrad's service offering Altrad's value proposition - Altrad on Altrad 203CP41759 Operational review Joint CEO operations review Specialising in excellence Safely at Altrad Regional performance review 203CP401759 Project case studies Sustainability review ESG - Governance - Risk management - Ethics Sporting partnerships Managing our business Performance Ladies gentlemen dear colleagues dear friends It is with pleasure that I introduce this year's Annual Report for the following another impressive year Altrad Group in which we have demonstrated tremendous resilience discipline and effort to deliver robust operational and financial performance once again Despite many of the headwinds faced in 2021 having abated there have remained challenges for the Group to overcome Navigating these challenges has allowed a period of reflection even as we continue to build upon our strategic objectives and achieve further organic and inorganic growth How can we as a Group of 56,000 people better embody the mission or raison d'^"treof Altrad The Group has since its foundation been built on a set of core values consisting of humility courage respect conviviality and solidarity Today these values translate into an aspiration to build sustainable world with Concerned the term interests of future generations Altrad Group relies on all its stakeholders thanks commitment of its personnel its expertise and and the to its capacity to innovate strives make a positive contribution to the world President's statement Mohed Altrao President & Founder With the lingering effects of Covid receding into the view mirror at least from a public health perspective the global economy is now facing the secondary impacts of the pandemic and the associated policy responses from governments around the world most notably through continued supply chain disruption and elevated inflation becoming entrenched almost everywhere At the same time the tragic conflict playing out in Ukraine only exacerbates these problems and will continue to do so for the foreseeable future While these challenges are likely to persist the Group's resilience and consistently prudent fiscal discipline allow us to identify opportunities for growth even in challenging markets enabling the Groutpo mitigate the impacts on the and business maintain gross margins With this in mind I am pleased to report that this disciplined to approach has allowed the Group maintain its approach to value- chalenging environment accretive acquisitions even in a macro It is a real source of pride for me personally and the Group as a whole that we have been able to successfully integrate around 20,000 new employees into the One Altrad family as a result of deals struck or completed during the period and we look forward to supporting our new colleagues going forward Our continued success in this regard is a key component in achieving our goal to be an employer of choice as we seek to attract and retain the best talent Similarly our dedication to prudent financial management has allowed the Group to secure a significant credit facility of 2,4 through a privately organised club deal with our banks providing optionality and flexibility both of which are critical in supporting continued confidence our growth and the of our banking partners in the business in the management team and the Group's strategy We are grateful for their ongoing support we look back on the achievements of the past 12 months we have once again had the opportunity to consider the Group's raison d'^"trethe core principles that drive the outstanding people who represent the Group today and support our aspiration to create a better and more sustainable world We to continue place high importance on continuously improving the Group's ESG profile in line with our imposed standards and those of our broader stakeholders and outline our progress in a dedicated section later in the Annual Report with more detail to be provided in our maiden standalone Sustainability Report ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMN Our raison d'^"tre PLEAS - Build a sustainable 203CP41759 " world 203CP401759 We realise the importance of supporting our clients across all sectors and product lines in their efforts to adapt their businesses to the forthcoming Net Zero world ELCTRONIAY At the same time we realise the importance of supporting our clients across all sectors and product lines in their efforts to adapt their businesses to the forthcoming Net Zero world The Group's ability to broaden its offering and its commitment to customer engagement ensures we ability to innovate have the our products and services to support these objectives opening FILED new opportunities the continued growth of the Altrad Group - of familiar 2023 Many you reading this statement will already be with the Group's and my own long association with Montpellier Herault Rugby Club so it was with great joy that we witnessed Oct the club secure its first Top 14 French in late The league title June commitment determination and dedicated pursuit of excellence 18 1:13 embodied by the team resonate strongly with the Group's high- performance culture and along with the excitement that sport PM is uniquely able to engender provides a wonderful platform to enhance the Altrad brand - Similarly we remain the proud sponsor of the French national team who celebrated an outstanding victory in the Six Nations RICHLAND earlier this year and our sponsorship agreement with New Zealand's Teams in Black including the All Blacks Black Ferns Maori All Blacks and youth teams came into full effect in 2022 - These sponsorships are a great source of pride for the Group and further underline Altrad's association with the pursuit of determinations colaboration COM N through and hard work Beyond the value to the Group's brand our close associations with these world leading sporting institutions provides us with an opportunity to engage meaningfully with communities PLEAS through education and training programmes inspiring the next adopt generations to the founding values of the Group - In closing I would like to thank our Board for their guidancouer management team for their execution our employees for their dedication our clients for their recognition of our services and 203CP41759 all our stakeholders who have supported the Group throughout the year We have faced remarkable adversity in recent years and as a Group we have emerged stronger by sticking to our principles and working hard for each other Crises teach us the importance 203CP401759 of courage endurance and solidarity and we will continue to succeed by embodying these qualities in our efforts to build a better world Together Moheo Altrad President & Founder ELCTAONIY FLED - 202 Oct 18 1:13 PM - RICH- LAND COMN PLEAS - 7C5ASE#2039P461 Overview About Altrad Values and segments Altrad is a world leader in the provision of industrial services generating added value solutions principally for the Oil & Gas Energy Power Generation Process Environment and Construction The sectors Group is also a recognised leadinetrhe manufacturing and distribution of equipment dedicated to the Construction and Building market Altrad's multidisciplinary services range from engineering and technical to services maintenance access solutions and specialised services for industry leaders Headquartered in France the Group employs around 56,000 people and is still led by its Founder and President Mohed Altrad Altrad which developed through organic growth has also integrated dozens of companies with singular histories that were duly recognised in their fields of activity and territories of intervention Throughout the years Altrad has always ensured their integration while their respecticulnturgal and organisational differences The Altrad culture which has emerged over the years is based on solid and shared values of professionalism and commitment but the Group has also developed a profound culture of accountability to ensure and enhance its sustainability and competitiveness Altrad has created a balance between economic performance development and fulfilment of people respfeorctthe environment and social and civic commitment Values Altrad has since its foundation been built on a set of core values consisting of humility courage respect conviviality and solidarity Today these values translate into an aspiration to build a sustainable world Concerned about the term interests of future generations Altrad relies on all its stakeholders and thanks to the commitment of its personnel its expertise and its capacity to innovate to strives make a positive contribution to the world In doing so Altrad accompanies its customers in achieving their energy transition goals In defining and choosing the values that it proposes to embody and defend a group puts forward the responsibility to which each of its members engages both for themself and above all in relation to others Tis Industrial services Altrad Services is a leading international provider of a range of multidisciplinary technical and engineering services We assist our customers in extending the life and optimising the operating cost of their most critical assets The strength of our offer lies in deploying complementary solutions with projects that wesupport throughout their lifecycle We systematically ensure that each process is implemented productively according to a defined schedule Solutions M aintenance engineering I nspection A ccess * Insulation S urface treatment Passive fire protection Mechanical works and projects PLEAS - 203CP41759 Equipment & Products supply 203CP401759 Every day our teams manufacture and the best products and equipment to suit the requirements of the construction and building industry and the public sector We create value with our product enathabt elnabele us to fulfil the individual requirements of each customer Solutions Scaffolding systems Building & construction products Street furniture & products for public authorities * Scaffold hiring F inancing E ngineering & designs R esearch & development 13 Overview Our operations Industrial services their We help our clients to optimise the profitability of industrial assets Altrad delivers innovative solutions to demanding market sectors and fields Through the entire asset lifecycle from the build phase all the way to extension of life and decommissioning projects our teams ensure that our clients facilities are safe reliable and efficient We deliver customised solutions with one integrated package based on a threefold approach O ur ability to understand our client's asset integrity objectives and issues O ur capacity to prepare engineering solutions A nd our expertise and experience in providing works execution solutions Lifecycle extension Our people and products are on hand to accompany our clients as they seek to extend the life cycle of their assets Such extension could be economically to derive more value from existing assets might involve to different uses In the or their conversion our increasingly regulated environment we also suppoclrientts obligations to comply with efficiency safety environmental or other requirements / ao Oil & Gas OffshoFrLNeG Altrad has been providing a wide range of essential services to the offshore Oil & Gas industry Our deep experience in working on our customers value critical assets in some of the most challenging and remote locations on the planet ensures we are a vendor of choice for international oil majors national oil Oil companies independent & Gas producers and oilfield services companies operating in the offshore environment PLEAS - 203CP41759203CP401759 Oil & Gas Onsho/rLNeG Altrad offers a wide range of critical services to the Oil & Gas onshore industry and to the petrochemical sector We have taken part in a number of projects always providing practical and reliable solutions maximising maintenance capable of build or programmes Altrad has been the single most active industrial services business in its markets with regard to construction of LNG terminals worldwide 15 Overview Nuclear/ Power Generation Altrad provides a wide range of industrial services and solutions in support of the construction and maintenance of value critical nuclear power generation assets In addition we provide services in support of other technologies in the power generation segment conventional fossil but also research laboratories storage laboratories submarines etc. Process Industry A type industry sophisticated processes in which raw materials undergo a specific chemical and physical transformation This type of activity comes with major demands and Altrad has great experience in working in these specific process environments The most significant fields in which our teams have been involved over the years are linked to the pharmaceutical food chemical biochemical and mechanical processes Ma Naval construction and others Since 1970 Altrad has been involved in the marine sector working with both the French Navy and civil naval industry Services delivered through contracts with the French Navy and Naval Group include corrosion protection stripping and application of paint on Aircraft Carriers Nuclear Submarines and other naval vessels In the civil naval industry the trust of our customers has enabled us to date to work on more than 200 ships on which we have delivered more than 2 million mof insulation 90,000 ofm floor coverings and installed 8,300 cabins PLEAS - 203CP41759203CP401759 Renewable Energy Not only does Altrad contribute to the construction and " maintenance of conventional power and electricity generation sites the Group is also investing directly into the energy transition sector by supporting the latest technologies We are therefore notably involved in sites such as hydroelectric power stations and wind farms both for their construction and maintenance Overview Our operations Equipment & products Over the years we have moved on from a service provider approach to a partnership approach and developed our teams capacities to integrate customer requirements Since its creation Altrad has been committed to a quality approach and the a continuous improvement process involving design teams production department and customers Innovation is present in every area of the Group's activity Altrad thus evolves on the basis of experience feedback an excellent capacity to reinvent itself and constant & efforts Our production capacity aims to provide customers with optimal service we identify the factors affecting costs and potential savings opportunities and make suggestions to counter the rising costs of raw materials Ta Scaffolding systems Through its specialised subsidiaries the Altrad Group designs manufactures and provides high quality innovative scaffolding systems oriented towards technically safe solutions to suit the needs of its customers A significant proportion of our access equipment is utilised by industrial service provider companies It is suitable for work on engineering structures and historic monuments as well as shipyards oil refineries petrochemical installations and nuclear power plants Our range also includes scaffolding for the building and construction industry and public works It is suitable for masonry timber framing and stone cutting projects Our most loyal customers therefore include developers craftsmen as well as distributors rental and installation companies and event agencies Our scaffolding is conform to the strictest health & safety and quality rules it complies with all norms and decrees applicable in the countries in which it is manufactured and distributed We have a wide range of equipment including fa^adeand scafolding as ociated directional lifting platforms all accessories PLEAS - 203CP41759 Building & construction products 203CP401759 The Altrad Group is a leader in the sector of products for the building and construction industry top manufacturer of concrete mixers and wheelbarrows it also designs manufactures and distributes props and shorings formwork equipment compaction equipment cutting tools pumps and concreting tools The originality of the Altrad Group's construction product offering lies in its quality and innovative nature as well as in its diversity and the ability to adapt to customer requirements Our teams are committed to the design and continuous improvement of our products They also rationalise our production processes to ensure reliability via tests carried out on test benches thereby improving productivity at the same time The fruits of these efforts can then be shared with our customers We have products for all uses and all requirements Our offer is mainly aimed at major construction and public works companies small and medium sized businesses craftsmen and DIY customers equipment Overview Street furniture & products for public authorities The Altrad Group proposes a very large choice of street furniture for the public sector contributing to a community approach in the interests of the general public Our teams select and propose suitable elements for all types of public authorities to equip and furnish their public areas with a constant concern for optimal value for money The Altrad Group carefully selects its furniture range for indoor and outdoor use based on quality and resistance criteria to ensure compliance with all mandatory standards applicable to public authorities Scaffold hiring Through its different entities the Altrad Group is developing a substantial scaffolding rental business for both industrial and construction sectors including the renovation of historic monuments Our main asset in this field is our proximity to customers with unrivalled territorial presence and multiple locations notably throughout Europe where we can respond to all types of demands from the simplest to the most complex shipyards aeronautical sites heavy industry events etc. We have several hundred thousand tonnes of equipment enabling us to fulfil our customers requirements quickly reliably and in compliance with the strictest safety standards The Altrad Group performs continuous maintenance to ensure that the rented equipment has been properly inspected conform to customer requirements 20 Financing Altrad proposes attractive solutions to enable customers to use and acquire new or second scaffolding with three financial offers Leasing the our Altrad delivers equipment acquired by financial partner which charges monthly rent in instalments defined according to customer requirements Financial leasing This works in the same way as leasing contract without purchase option the equipment must be returned after thethe rental period Rental Depending on customer requirements in terms of equipment type and rental duration Altrad can propose a contract guaranteeing a reliable flexible solution Engineering & Design The Altrad Group has a number of design offices whose teams of specialist engineers and technicians work on calculations the design of specific and sometimes complex structures and project management If necessary we can provide technical for assistance the works phase Our customers can benefit from the technical expertise of our design offices with which our sales team collaborate very early on in the project to ensure that customer requirements are fully so that suitable solutions can be proposed In all cases our customers are advised by a single identified correspondent who ensures follow and provides technical assistance and guidance in choosing the most effective solutions Using the most recent digital tools we provide our customers with quality support including for example the preparation of detailed precise quotations and scafolding ac es ible 3D previews of at the preliminary project stage via smartphone or virtual reality headsets D The Group also invests significantly in the field of research and development & Our product in ovation teams improve and develop innovations that are tested in actual conditions of use in compliance with the strictest quality and safety standards To design these innovative products our teams use the most professional advanced tools available in our field enabling the realisation of increasingly effective solutions at highly competitive prices We thus provide our customers with our extensive work site expertise and the unlimited capacities of our equipment ranges However the & department also works on experience feedback and the partnershibupilstwith our customers enabling the development of products that are perfectly adapted to user requirements Listening to our customers is a key part of this approach It has notably enabled us to focus on a highly digitised consulting offer proposing equipment management tools 3D design etc. 21 Overview Our geographic markets Altrad footprint Geographic revenues 3<,840 Employees 31 August 52,303 ack % revenue 28 % United Kingdom fs a is ce 43 % Continental Europe 22 ELCTRONICALY ELCTRONICALY ELCTRONIAY Altrad has expanded its international footprint to become a market leader in its countries of operation and capitalise on a diverse range of opportunities in its chosen markets and sectors FILED - 2023 Regional Breakdown 2022 Oct 18 1:13 Continental Europe PM 16,403 employees - 1<,639 RICHLAND United Kingdom - 9,413 employees 1<,073 COMN PLEAS Middle East & Caspian 18,487 employees 545 203CP41759 Pacific 1,674employees 2< 81 203CP401759 Africa 1< 39 2,985 employees Asia 1<20m 3,040 employees United States of America 4< 3 301 employees 23 Overview ELCTRONIAY 2022 highlights Keyfinancialdata2022 FILED -203 Financial 3,840 < -203 m Revenue Oct The Group achieved an excellent financial and operational performance in 2022 exceeding our objectives The year was marked by major acquisitions enabling the Group to in geographical providenew services to new new areas During the period the Group agreed in May 2022 a 2.4 billion refinancing to package refinance existing debt facilities as well as provide finance for future acquisitions and additional working capitaThle economies and markets the wherAlte rad Group operates have experienced a dynamic recovery which the group has taken advantage of to offer innovative solutions to its customers with a focus on cost discipline which has allowed to gain market share the Girnotuphe and increase its activity Turnover period increased by more than 42 % to 3.8 billion The Group has been able to increase activity while maintaining high margins thanks to 18 5< 25 1:13 EBITDA PM PHLAND - 1< 38 income COMN its ongoing cost control strategy across all functions The 1<,377 m efforts made during Covid have borne fruit helping to deliver EBITDA of 478 representing growth of 25 % during the PLEAS period The Services business which represents 74 of Group Equity - turnover achieved a very satisfactory performance benefiting from the resumption of projects that had been delayed by the pandemic The Equipment business representing 26 1< ,422 of revenue experienced strong growth with the reopening and normalisation of economic activity contributing to strong for demand our products from both professional clients and private individuals The Group's order book as at August 31 2022 stood at 4billion compared to billion in 2021 thanks to winning new important contracts the renewal 6<39 debt 203CP41759 203CP401759 of existing contracts and the contribution of companies acquired during the period The Group's balance sheet remains healthy with a cash position of 1,422 million and a net debt of million The net financial EBITDA ratio than 1 which leaves the group significant leeway to pursue further transformative acquisitions Turnover by segment 74 Services 26 Equipment ] Services order book 4<,034 08/2022 3,349 Secured turnover < 1 year 25 Overview Financial summary IFRS key figures PROFORMA includes companies acquired during the 2022 financial year extrapolated over 12 months of activity - unaucited RMD Valmec Cides Muehlhan Endel FRP Sparrows EBITDA In million 525 592 360 478'540 478'540 FROFORMA 415 _ 2020 2021 2022 * Excluding IFRS 16 Turnover In million 4,422 PROFORMA 3,840 3,840 2022 2,697 2,697 2,697 2,589 2,589 2020 Net profit In <million 21 178 PROFORMA 20 170 138 138 138 19 2020 2021 2022 2022 2020 ROI ratio Ret er or FRITDATA NON CURRENT CURRENT NET ASSETS + WORKING CAPITALE Excluding IFRS 16 * 2021 cata take into account tre impact of the new rule IFRS 16 Leases effective September , 2020 26 ELCTRONICALY ELCTRONICALY ELCTRONIAY FILED - Net debt 2023 In million In mi<llion Oct 501 424 639 18 1,377 997 1,187 1:13 394 321 474 PM - 2020 2021 2022 RICHLAND 2020 2021 2022 * Excluding IFRS 16 - COMN PLEAS Cash conversion FREE FLOWY21FRITA Atte tax Net cash In million - 53.30 31 43 1,422 203CP41759 1,159 1,126 2023 2021 2022 203CP401759 0.88 PROFORMA 0.99 0.84 0.27 1.10 0.39 2020 2021 2020 Net debt * EBITDA ratio * * IFRS 16 Excluding * Net debt / Equity ratio ' Excluding IFRS 16 27 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM- RICH- LAND COMN PLEAS - CASE#203P41759 Strategic review ELCTRONIAY OurRaisond'^"treDefinesUs The Altrad Group has established its vision and purpose to ensure FILED the business is underpinned by a strong set of core values that define Altrad's raison d'^"treOur core values today translate into an aspiration to build a sustainable world striving to create an FILED - inclusive and diverse work environment and to make a positive our 2023 contribution through activities to create a meaningful legacy As each year passes our resolve only strengthens We cannot Oct thrive in a world which does not thrive We expand elsewhere within this report on the commitments 18 objectives that define raison d'^"trebut I emphasise and KPIs this that our overall vision and purpose fundamentally depend on the 1:13 need to secure a resilient performance and sustainable financial As raison d'^"treis not some holistic initiative within such Altrad's PM our broader ESG agenda but rather a guiding that helps - principle leadership ultimately execute the business growth strategy and ultimately informs our decision making on all aspects from financial discipline a RICHLAND to personnel development and A In parallel our ESG agenda is developing at pace and we have made significant advancements through this year including the - appointment of a focused team to progress this agenda through the Group and its subsidiary businesses We have clearly defined COM N Our core values today translate into an aspiration to build a sustainable PLEAS world striving to create an inclusive - A Mission and diverse work environment and 203CP41759 Business Ran Oren Group CEO to make a positive contribution through our activities to create " a meaningful legacy 203CP401759 commitments and targets relating to our people our Governance our environmental objectives and our philanthropic contribution to society We look forward to sharing our progress towards these goals on an annual basis with our wider stakeholders commencing with our inaugural Sustainability Report scheduled for release early in 2023 Another Year of Growth create our success allow us to our mission Our people on anotahnedr year deliver am pleasedto report of impressive growth for the Group which has welcomed around 20,000 employees in 12 months We continue to emerge stronger from the impact of the pandemic over the last couple of years to deliver steady organic and inorganic growth The Group's performance is that much more impressive given Altrad continued to navigate ongoing challenges of Covid through the winter months which impacted productivity in certain markets as well as connected challenges associated with raw material and supply chain fluctuations The Group has also seen the impact of global inflation begin to creep in and have set in motion plans to manage the impact and maintain gross margin Our people create our success and allow us to deliver our mission Strategic review the most defining milestone this fiscal year has been Perhaps of Altrad's high levels of activity in the M market as the Group has announced closed and integrated numerous transactions but ELCTRONIAY that supportourstrategicgrowth objectivesand will delivera change in predominantly recurring forward revenue our exciting growth journey The exit enhances the private way ownership of the business in no impacts the Group's financial its disclosure of to transparent Growing Brand Awareness all driver FILED As mentioned earlier in this section another key highlight has been an internal review and evolution of the Group's raison and sustainability performance on behalf of stakeholders Brand awareness remains a key strategic for Altrad and through its recent association with New Zealand's Teams in d'^"trewhich guides all aspects of our business decision making Black the Western Force its ongoing association with France and - and underpins our ability to achieve the term goals of O20c2t3 Altrad and its broader stakeholders Continued Strategic Expansion Despite the volatile market conditions Altrad continued to execute its proven growth strategy unabated The crux of this strategy Montpellier and the sponsorship of the women's Rugby World Cup 2021 the Group maintains a unique differentiator that supports its term strategic growth objectives in all markets belief is the that the Group must continue to grow to diversify Since undertaking a transformational acquisition drive between 18 Solid Financial Performance and to deliver The Group achieved all of these elements through 2015-2017 and rebranding the standing acquired brands Overall revenue and cash flow exceeded targets both relative to asa of choice to balnce 1:13 the historic performance of the Group and on proforma basis PM including companies acquired during the period rapid external expansion capitalising on its strong balance sheet and global status consolidator deliver number of complemntary and value under the one Altrad umbrella the Group has made significant strides in establishing Altrad as a recognisable global brand Our continued efforts to ensure the Altrad brand is visible around During Group over 12 months of activity the financial year the signed or closed 11 deals which the world and with Operational client - intimacy and positive environmental and social impact is supporting performance reflects clear evidence of strengthening The financial markets through the fiscal year as well as the impact of the acquisitions closed and integrated through FY21 - giving insight RICHLAND into the even more material impact of those closed out in FY22 will add a combined 1,8 billion of diversified predominantly recurring and continue strategic expansion of Altrad's geographic footprint and specialist service offering Most importantly we welcome a very talented and diverse workforce the growth of the business Our customer base in increasingly aware of the broad service offering within the Group and that is driving organic growth which will significantly strengthen our business as our subsidiary businesses cross services to our chip - Working capital was a key focus for the Group impacted by a clients across different markets and sectors small number of delayed payments from significant customers as well as marked Q4 slowdown in Equipment division which put pressure on the cash flow Offsetting this was the Group's focused to ability manage cash flows and demonstrate solidarity around our common annual objectives whereby certain countries or business units pulled all the levers they could to overdeliver very - resulting in what is overall a satisfactory performance The ability of the Group to meet the free cashflow targets for the The acquisitions will also add to the order backlog which stood at billion at the year period an increase of 38 % since YE'21 a figure that does not reflect the full impact of the announced and yet to be completed transactions These acquisitions are a mix of smaller acquisitions tailored to that specific market needs or larger acquisitions will fuel major complementarities in services and strategic synergies For example the targeted acquisition of parts of Muehlhan provides North Despite COM N The platform provided by Altrad's sponsorship activities not only support brand awareness but also the positive internal impact - driving learning ambition performance and excellence in our culture which we seek to share with and learn from elite sports the volatile market conditions teams They also provide enormous scope for external impact through community engagement and positive socioeconomic Altrad continued growth PLEAS impact - both critical aspects of our broader ESG agenda to execute its proven strategy - year despite certain pressures in individual markets and sectors reflects the diverse nature of our business activities and client base - all of which exemplifies the effectiveness of the strategy to deliver consistent resilience through diversification As referred to in the introduction and elaborated upon elsewhere in the report the Group required a strong focus on cost control and the ability to react quickly to market movements in order to address and offset the creep of inflation within our business Raw material prices were very volatile through the first half of Sea positioning as activity ramps up and the addition of SNKP in Senegal provides exposure to African & development projects such as Greater Tortue The acquisition of Endel enhances Altrad's specialist offering for the Nuclear sector in France complementedbythe acquisition of Doosan Babcock which is strong in UK Nuclear sector Together these position Altrad at the forefront of Nuclear in core markets of France and UK both set for term expansion and central to energy security They also position Altrad as an exporter to Controlling what we can planning for what we can't Altrad's outlook based on what we have built and what we are unabated The crux of this strategy is the belief that the Group must able to control strong are however too aware that the We all economic outlook is uncertain with global inflation and the crisis providing uncertainties to our term outlook continue to grow to diversify and to deliver energy Despite being a global business Altrad's ability to adapt to market 203CP41759 conditions is unique and we remain vigilant with our approach 2022 with the onset of the war in Ukraine The Group especially new nuclear markets such as the UAE in collaboration with our to outlook ensuring we have the financial stability flexibility our Equipment division had to react quickly to pass through existing business Adyard and understanding of the possible scenarios to be able to take the costs and maintain our margins and this will remain a continuous focus given the ongoing volatility in the market caused by high commodity and energy prices and challenges within the supply chain A major corporate development during the period was securing a significant privately organised club deal with banks for a 2,4bn facility This enabled the to Group refinance existing indebtedness engineering The acquisition of Sparrows Group a specialist provider of operations and services in the Offshore Energy Renewables and Industrials sectors enhances Altrad's and Sparrows portfolio of services and will fuel organic growth through mutual selling Importantly it also expands Altrad's presence and exposure in the growth renewables service market through Sparrows renowned subsidiary SE decisive actions when required Our priority is to ensure we execute Altrad's strategy with focus and continue to progress down our growth path As such the ongoing focus will be on protecting and growing the cash flow from our expanding group benefitting from the synergies and operating efficiencies of the recent acquisitions in to order grow revenue and maintain EBITDA margins into a streamlined facility on terms that provides the liquidity for recent and future acquisition activity in addition to supporting our working capital requirements Reflecting the Group's unwavering commitment to financial Alpha - fulfilling a key strategic objective to better position the to Group capitalise on the global energy transition where clean secure and affordable energy requirements are expected to drive significant investment and opportunity Altrad also remains active and opportunistic in the M market - and is uniquely positioned to leverage its acquisitive track record and material liquidity should we come across compelling opportunities The uncertain outlook and market headwinds stability the refinancing provides optionality and flexibility both critical in supporting our growth through uncertain markets The addition of around 20,000 new employees through these combined deals enables the Group to continue its strong focus intersing intersg partneship may provide oportunities for new integration with a strong business like Altrad and and demonstrates the confidence of our banking partners in the business in the management team in our M strategy and in our future agree a The Group has also been able to signifcant transaction for the successful exit of three of its - Banque Publique d'Investisemnt BNP Paribas Devlopment and Credit Mutuel Equity Theseinstuions Altrad through its major growth phase since 2011 and have been on knowledge share with an emphasis on innovation and safety and The Group's proven track record for acquisition integration transformation as through the major of Hertel Prezioso and Cape provide a template for the smooth integration of these recent acquisitions and the is alreaalrdeaydy realising the benefit of synergies new opportunities and a growing order book resulting from the acquisitions that have been already In summary it has been another impressive year of focused strategic growth for the Group and I'd like to commend my fellow leadership and Board for their vision and execution the expanding Altrad family for their dedication and excellence our financial parftor tnheier sruppsort and faith in the business and our clients for their trust and alignment important and reliable partners to the Group during the past decade I would like to thank them for their support through 33 Strategic review Expanding Altrad's service offering Targeted Approach to Deliver Inorganic Growth In 2022 the Group has once again delivered on its strategy of targeted acquisitions to generate inorganic growth supporting further diversification into specialist sectors and growth markets as we align with the evolving needs of our diverse global customer base Over the last decade this strategy has been integral to Altrad's success and demonstrates the Group's desire to be the consolidator and employer of choice as we continue the journey to build a better world Today Altrad is a global leader in the provision of services and equipment across a wide range of sectors including oil and gas construction nuclear and petrochemicals electrical energy generation In 2022 we have closed the acquisitions of Sparrows Group and Doosan Babcock Limited the UK complimenting and deepening the across Group's offering engineering inspection operations and maintenance services to the offshore energy renewables and industrial sectors across a broad international footprint this year Similarly acquisition the Group also completed busines Oil in Denmark and in the UK adding scale and capability to Altrad's offshore business and the expanding Group's reach into Denmark 2022 also marked the completion ofAltrad's acquisition of Endel in France having entered into a contract with the Engie Group in August 2021. Endel's know in mechanical engine ring network in France and its strategic positioning across the entire value chain enable it to offer unique services to its customers providing a major step in strengthening and diversifying the Group's industrial offer in engineering and mechanical services In to addition adding breadth and depth to Altrad's offering and diverse new revenue streams in both our Services and Equipment divisions these acquisitions have seen the Group welcome around 20,000 new employees to the one Altrad family Our track record of successfully integrating new members to the team built up over many years means the Group is already seeing the benefits of increased synergies and knowledge sharing providing opportunities for further growth moving forward Thanks to our unwavering focus on fiscal discipline and operational excellence we continue to enjoy the support of our banking partners for which we are grateful Consequently the Group retains the certainty and flexibility needed to support recent and future acquisition activity as we look ahead to 2023 and beyond Completed and Announced Acquisitions H Sparrows Group July '22 - United Kingdom Sparrows Group is a global provider of engineering inspection operations and maintec services to the offshore energy renewables and industrial sectors Sparrows Transaction includes wind energy business Alpha and enhances Altrad's service portfolio and further diversifies its presence across multiple sectors particularly in the growth renewables market Extensive international footprint across the Americas UK and Europe Africa Middle East Caspian India Asia Pacific and Australia and Altrad's global reach 2,000 new team members welcomed into the Altrad Group providing opportunities for knowledge and skills transfer Combined offering solutions for Altrad's clients 1,930 employees ELCTRONIAY FILED - 2023 Oct 18 1:13 sparrows PM Founded 1946 - Working across the asset life cycle we RICHLAND design manufacture rent sell operate maintain inspect certify refurbish upgrade remove and replace equipment as well as develop and train people - Specialists in mechanical hydraulic electrical structural reliability and COM N automation and control engineering delivering a broad range of structured and bespoke solutions to the industrial offshore energy and renewables markets PLEAS - 203CP41759203CP401759 34 35 Strategic review Doosan Babcock Limited June '22 - United Kingdom 2022 Altrad In June of Doosan Babcock Limited the UK based provider of project design and construction plant maintenance and asset integrity assessment to the global oil and gas petrochemical nuclear and renewables industry C omplimentary capabilities and extensive resources provide scale to deliver improved outcomes for the Group's customers A dds valuable engineering skills to the broader Group 4 ,000 new team members welcomed into the Altrad Group providing opportunities for knowledge andskills transfer 4,000 employees 333 Reveral FRP Products Co Pte Ltd May '22 - Singapore FRP Products Co. Pte Ltd provides comprehensive solutions in the field of industrial protective coatings and lining applications delivering house and niche end solutions in construction maintenace asset and integrity services to the Petrochemical Pharmaceutical oil and gas energy water infrastructure and resources sectors Supports the Group's strategy to grow in the Pacific region through an expanded service offering and physical footprint with operations and clients across Singapore Expands and enhances Altrad's service offering with complimentary services Opportunity to cross products and services from Altrad's portfolio Founded 1881 Doosan Babcock Doosan Babcock provides products and asset support services to the nuclear thermal energy oil & gas and petrochemical sectors Using specialist teams the company is able support safe through- to the life management our dients plants of and design smart energy products and solutions to deliver a range of asset optimisation repair and maintenance services to help acreate greener future a SGD 25.546 Revere ENDEL April 22 - France Endel is a leading French company with expertise and know in mechanical engineering and metallurgy with unrivalled capabilities in many sectors including the nuclear The industry Group's strong network in France and its strategic positioning across the entire value chain enable it to offer unique services to its customers After commencing negotiations for the acquisition with Engie Group in August 2021 Altrad was pleased to confirm the effective acquisition of Endel on April 1st 2022 Highly complementary areas of expertise provide scale to deliver enhanced value for customers and employees Strengtheannds diversifies Altrad's industrial engineering mechanical offer in and services Endel's activities generated revenues of approximately 550 million in 2020 in energy and industrial services Altrad will continue to invest in Endel's success in the enlarged structure to develop skills of the teams the Group's in France and its international activities 4,772 employees Muehlhan's Oil & Gas Businesses ELCTRONIAY January22 and DenmarktheUnitedKingdom Muehlhan has experience providing 20+ years such as surface insulation FILED services treatment scaffolding passive protection inspection fire -203 welding and mechanical for the oil and gas industry -203 S upports repositioning of the Group's the offshore business by adding scale and Oct capability especially in the North Sea as activity increases 18 1:13 * Enhances relationships with several strategic clients through an enhanced offering Extends PM the Group's geographic footprint into Denmark - new 7 50 team members welcomed into the Altrad Group providing opportunities for RICHLAND knowledgeand skillstransfer - COMN * 310 employees PLEAS - DKK 203CP41759Reventat 203CP401759 36 37 Strategic review Altrad's value proposition A sustainable model to support a sustainable world Business model Altrad is a world leader in the provision of services to the industry From the engineering stage to work execution we propose high added value solutions mainly in the following sectors Oil & Gas Energy Power generation Processes Environment and Construction Altrad is also a leader in the manufacture of equipment for the building and construction industry Our ambition is to build and be a lasting group We have therefore moved away from the pure construction focus of our initial activities and developed our business model to focus on diversification of activity geography sectors and clients to build a resilient international business with recurring revenue streams and secure long term backlogs We want to be the world number 1 in all of our activities Every day we do our best to show our customers how the development of our products services and solutions portfolio our geographic presence and our daily performance help to improve our response to their requirements while applying an operational excellence approach We are a solid group primarily because we have managed to generate diversified and recurring revenues This forms the reliable foundation that we wanted for our continued development in to order satisfy our customers shareholders and investors and to reassure our employees This was made possible by three factors - international presence particularly in key markets including Europe Australia Middle East Africa and Asia a balanced sales mix spread over different business sectors - in terms of services the deliberate choice to position ourselves with a significant portion of our turnover generated by recurring maintenance contracts providing us with the resilience required to maintain the stability of our activities in the medium and long term Furthermore we are consolidating our disciplinary leading position in services for the industry by developing synergies between our various subsidiaries including manufacture those that equipment and materials results in cost savings and organic This joint actions between our subsidiaries creating growth through maximum value for our customers Over the next few years we want to continue to implement this strategy strengthening our business development approach a way for us to enhance the bonds with our customers and to continue to develop high added value solutions in collaboration with these customers in order to anticipate their future needs We their service are which is perfectly illustrated by our rebranding operation involving full integration of all our subsidiaries and " the One Altrad slogan A tried and tested growth model Identify -We -We carefully consider both large transformative acquisitions as well as strategic bolt based on selective criteria Acquire -Our -Our teams have significant financial legal and commercial experience to enable fluid and effective acquisition processes Integrate -We -We enhance the specialist and complementary nature of newly acquired services to protect margins and better integrate with clients requirements and operations Optimise - We carefully review our businesses to ensure opportunities and synergies are identified to optimise margins and cashflow and that investments are made to deliver enhanced returns Powered by our global capabilities Anc a unique culture ELCTRONIAY FILED - 2023 Oct 18 1:13 Creating responsible value PM - RICHLAND Financial strength -We -We apply a conservative approach to leverage retaining investment capital Cost discipline -We -We are continually focused on driving synergies and savings across Resilent growth -Continued -Continued profitability financial security and reinvestment for more bolt and or larger the business Its in our DNA Strong order book providing - and more significant acquisitions earnings visibility Diversification Empowered talent -Strong -Strong balance sheet to fund future growth COMN One Altrad -We -We have a balanced sales mix across various sectors in both developed and emerging markets to provide protection against downturns or volatility in each vertical PLEAS We have a dedicated and focused workforce enabling us to drive -Connected -Connected culture and united behaviours of our 56,000 employees - innovations upskill our people -Our -Our values and the ingenuity of our and share knowledge and experience people drives solutions and opportunity - Empowered and motivated employees or geographic market Entrepreneurial Agility -Our -Our Entreprenurial DNA ensures we have the firepower of a large 203CP41759 Operatingefficiencies -We -We actively promote the selling of products and services to enhance Client intimacy Our multidisciplinary offer supports our competitve edge and the longevity organisation combined with the speed margins and drive organic growth of our customer relationships and agility of a small company giving us -Our shop proposition 203CP401759 the best of both worlds creates synergies allowing competitive pricing to increase the size of customer mandates Specialist services - Our specialist service offering is underpinned by innovation proprietary systems and best in class delivery Operational excellence -We -We demand a class safety focused aproach to ensure the being of our people whilst meeting the standards expected of clients Sustainable impact -Increasingly -Increasingly focused on managing our impacts and cre ating positive economic outcomes Aligning our culture and ambitions with other leading brands through sponsorships -Giving -Giving back to our communities through community initiatives 39 Strategic review on Altrad / 4 Altrad In Conversation with Mohed of Altrad Group the Founder and President Over the past few years the Group has undergone another wave of rapid expansion by entrepreneurial spirit and unique acquisitive DNA that has defined the Group's spectacular rise to become a world leaderin the provision of industrial services and equipment for the construction industry We've asked Mohed Altrad the inspiration and driving force behind this growth story to reflect on the progress of the business the broader strategic objectives the macro backdrop and what drives the man behind the eponymous group Our goal is to have a positive social impact through our activities and a big aspect is through our employment of such a large global work force and our commitment to diversity i inclusion and development business Mr Altrad in 1985 you bought struggling scaffolding for one French franc which came with 200 employees and . subsidiary Today the Groupis a global leader with over 120 businessesin 50 countries employing about 56,000 staff around the world How do you reflect on the Group's growth journey am extremely proud of what we have collectively achieved and it has been a monumental journey Our success has surpassed what we thought achievable at the time of our launch however we have the same entrepreneurial drive and optimism that delivered that first acquisition nearly 40 years ago and we apply the same strategy in terms of identifying opportunititheast diversify our offering add to value our stakeholders and stabilise the company to support employment and positive socioeconomic impact There have been so many defining moments the however acceleration and diversification of our growth in the last decade through the wave of acquisitions between 2015-17 and again in the last two years has created the global leader the Group is today 40 ELCTRONIAY FILED - Is there a limit to your growth and what is the end game 2023 Oct Our growth is limited only by our own limits As long as we continue to believe we can achieve more as long as we remain steadfast in our perseverance despite the adversities we will 18 inevitably as long as face achiweeve thenthere 1:13 limit to what we can trust one another is no The Group is not moving towards an game but rather we are on a journey of continuous improvement on which we never lose focus on where we came PM - from what defines us and the positive impact we can make along the way Where do you see the Group in 5 years from now RICHLAND- If you had asked this 5 years ago I would not have been able predict me For I to where we would be today this reason prefer not to for the COM N to try to predict the future What I can predict though is that we will continue strive highest performance in safety living by our values delivering client service financial performance sustainability rewards and recognition innovation growth if we can look after all these elements then the rest will look after itself am very optimistic about the journey which is yet to come PLEAS - How much focus do you place on the financial stability of the Group Cost discipline is always a core focus for the Group and financial 203CP41759 stability isabsolutely paramount to its success It is importanthte Group retains a strong balance sheet with the ample liquidity to support its growth strategy and be in a position to move on compelling A opportunities as well as to protect us from unforeseen bumps along our journey The refinancing undertaken this year supported this cause and demonstrated the support the Group has within the financing community It also provides the Group with the flexibility to maintain financial strength through uncertain markets and adapt accordingly to changing market conditions in terms of working capital and unforeseen circumstances such as experienced through the pandemic What motivates you most with regards to the Group My biggest motivation is seeing people grow and the positive socioeconomic impact we have as a Group Our Group directly supports tens ofthouofsfamailiens tdhrosugh employment and that responsibility motivates me and the leadership team every single day As the Group grows we are able to assess how we can have a genuine positive impact in all that we do in terms of social and environmental impact 41 Strategic review ELCTRONIA Howdoyouconsiderthetheme ofsuccession I have the same passion and drive for the business as did back in 1985 and love working alongside my colleagues every day So while we do of course have plans in place regarding succession we do not anticipate these to be activated for many years to come I am very fortunate to have an exceptional Board and executive management team around me and the success of the Group is a collective effort The depth of talent within the Group is exceptional and many of our leadership have been on this journey with me for many years and even decades As such I have full confidence that the Group will continue its growth journey long after I am no longer involved How is the Group building a sustainable future and what do What do you see as your key responsibility as President you want that legacy to be and Founder aof empthatlempo loysyaros und 56,000 people This has been a major focus for the Group in recent years and The wellbeing and safety of our employees is paramount especially we expand on these elements in detail within ESG section of given the nature of what we do As such we place training and this report development in extremely high regard We also strive to be a The Group is involved in critical infrastructure projects across good corporate citizen and ensure our core values of respect Energy and Construction that are literally helping to build a solidarity courage humility and conviviality apply throughout sustainable future for the planet We support our blue chip the Group Our goal is to have a positive social impact through clients across our sectors and markets to enable the delivery of our activities and a big aspect is through our employment of such a large global work force and our commitment to diversity these projects and closely align ourselves with the sustainability objectives of all our stakeholders inclusion and development My passion is also to leave this We are also increasingly focused on the Group's own environmental PLEAS business in a better place than I found it and I work hard every impact to assess how it can be improved over time We have PLEAS day with my staff to ensure we continuously improve and create set clear environmental targets and commit to disclosing our PLEAS a lasting sustainable business PLEAS progress towards these targets along the journey In terms of CASE legacy I would want people to recognise our commitment to our values and reflect that we always tried to have a positive CASE How have the seismic social changes of the pandemic of impact We are also involved in some very high profile projects CASE the living impacted your approach to the business and its personnel that are of critical importance to local and global economies # 202301 of The pandemic had a huge impact on our business and I am so the recognition that Altrad is a trusted service provider the 202301 immensely proud of how our Company and employees navigated highest quality would be a great legacy the challenges over the course of the last two years The key priority for us was the safety of our employees which was of utmost importance given the fact that most of our staff were not Why do you think values are so critical to a business success able to work from home as our activities were deemed essential services Sadly we lost colleagues during the pandemic and that clearly impacted the morale of the Altrad family but the way in which our staff continued their activities with dedication and professionalism fills me with pride The cost of living crisis impacts the whole world and the Group's business performance is impacted bythe inflationary pressures that are underpinning that crisis Our focus is to navigate these challenges in the same way in which we did so through the pandemic with a belief that we will emerge stronger when we emerge on the other side Altrad's values are the bedrock of everything we do and define who we are as a business Our values give us focus and help us ambitions alignment achieve our long through with our stakeholders The theme of this report is our raison d'^"treand that purpose is defined by our values The Group could achieve success beyond its wildest ambitions but if that success was not supported by meaningful values and developing better people and communities then it would be completely worthless What are your key objectives with regard to Altrad Rugby - and how can it drive the growth of the business Altrad's values are the bedrock of everything we do and define define who we are as a business Our values give us focus and help us achieve our long ambitions through " alignment alignment with our stakeholders Ouralignment with rugby gives us the to platform enhance Altrad's brand recognition which supports the growth of the business Altrad was not a particularly well known brand in many of the markets we operate in until recently and rugby has played a big factor in putting us on the map Seeing our name and logo on the front of the All Blacks shirt one of the most iconic sporting teams in history drives brand awareness in new markets which in turn drives business growth opportunities Altrad Rugby also has an immensely important role to play in our ESG agenda in terms of providing a global platform for community engagement and in our internal communications programmes ya 42 43 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - Le a RICHLAND - COMN PLEAS - CASE#203P41759 Operational review ELCTRONIAY resilientperformance It has been a very satisfying year for the Group with steady performance across al business units and markets despite market volatility and operational challenges caused by supply chain issues growing inflationary pressures and continued impact of Covid through the winter months FILED -203 The resilient performance across the Group as a whole reflects -20 3 the effectiveness of the strategy to diversify the service offering and geographic footprint as we benefit from selling opportunities and a deeper recognition within our markets of Oct specialist services our enhanced 18 The during the or period only serve to build this proven strategy and enhance on 1:13 our service offering even further to affirm Altrad's position as a consolidator of choice and a global leader specialising in excellence PM and securing its position as a key player in the energy transition - RICHLAND OurCulture of Excellence As referenced in my fellow CEO's Statement there has been a strong focus on our raison d'^"treand corporate culture - through the year The Group's cultural desire for excellence and COM N a determination to continually evolve and challenge ourselves and one another is a core factor in our success The collective PLEAS Client intimacy a remains critical aspect of our activities as we closely - align with our broad client base to Specialisinign understand their requirements and Jan Vanderstraeten excellence Group CEO deliver services and solutions that support their operational and strategic " 203CP41759 objectives Jan Vanderstracten 203CP401759 strength and knowledge within the Group which is enriched with each new acquisition and the talented people that come with those deals enables the Group to focus on its commitment to find solutions and deliver time after time building our employee loyalty customer recognition and brand awareness Over focused the lastfewyears the Group has hard on developing its culture and ensuring the high standards of excellence innovation safety and reliability are ingrained throughout the entire Our of and safety organisation high standards excelence focused are negotiable and the Group's efforts have on the training and development of our talented employees to ensure these standards are upheld on all of our sites around the world Our safety record continues to trend in a positive direction and remains an absolute priority in all we do given the hazardous nature of a lot of our work and the high expectations of our client base Client intimacy remains a critical aspect of our activities as we closely align with our broad client base to understand their requirements and deliver services and solutions that support their operational and strategic objectives The Group's expanded service offering further engrains Altrad with our client base by being able to offer a broader suite of services in more regions that ever before The Group's cultural desire for excellence and a determination to continually evolve and challenge ourselves and one another is 46 a core factor in our success Operational review Equipment This enhanced offering ensures we can serve as a stop shop delivering complex and complementary solutions to the highest industry standards whilst providing dients with operating and commercial efficiencies In that regard the recent acquisitions all add new innovations and enhance our already talented global team with the addition of new insights and techniques that can be through the encouragement of to open the door to new opportunities sharing People of course remain the Group's most valuable asset and represent our passion our professionalism our client relationships our specialist skills and our diversification With a rapidly growing headcount the retention and development of personnel we have in parallel with the ability to attract new talent is core to our future success This is particularly relevant in the context of a growing shortage of available talent as well as a growing pipeline of opportunities for the Group in areas that require specialist skills primarily within the anticipated energy transition boom Altrad is fully committed to being an employer of choice providing its personnel with training development and support required the to fulfil their own ambitions which in turn will enablGroeup the to do the same The point around internal support is critical in light of the recent global turmoil caused by the pandemic and fragile economic outlook On the human side it is important that the Group recognises the impact these events have had on whether visible everyone or not and factors this into the mindset of how we manage our global workforce provide them with a secure environment conduct our business with our clients and deliver positive impact to our wider stakeholders Addressing inflation and supply chain issues its strong from the previous year benefitting from the addition of the Actavo Hire and Sales acquisition which completed in August 2021 and the Group has continued to enhance its product offering and evolve its distribution channels The Equipment division is an essential part of the Group's diversification strategy delivering high % margin profitability with 26 of Group revenue delivering 43 of Group EBITDA The Group's strategic Investment into its online sales platform has transformed Equipment division and resulted in a rapid the increaonslinee This new sales channel delivering benefits in sales to customers and the Group alike has huge growth potential and will continue to be a focus for the Group In 2022 four new shops were created in France Portugal Spain and Netherlands and four further shops are expected to open in 2023. With all the online shops we have now in more than 10 countries we have been able to increase the quality level of data which helps with search engine optimisation and allows the Group to tailor the sales strategy to where we see the highest product demand and sales opportunities Altrad's culture of excellence and continuous improvement ensures developing the team is new new tools processes and packaging with a view to achieving operating efficiencies as well as reducing the environmental impact of our activities A prime example of this is investment in solar panels at numerous manufacturing sites as we seek to reduce the carbon footprint of these activities while also becoming more energy sufficient and benefitting from the savings that come with that approach Such initiatives will be particularly important in this coming year as we prepare for the impact of inflation and more uncertain economic outlook for Equipment sales Services Overview Group's The broader division benefitted of services markets and clients to deliver a robust performance through the year that met with internal expectation The impact of global inflation remains a key focus for all companies as they seek to mitigate the rising cost of raw materials and maintain margins The strengthening of prices through the first half of 2022 has resulted in an increase in volatility predominately in material and logistics costs with major suppliers indicating this trend may continue in the term Altrad is by no means immune to the impact of inflation to its business and is working closely with its suppliers and customers to achieve a way mitigate these costs and offset the impact to stuopport the business To this our dedicated procurement teams seek to establish strong supplier relationships and balance out the short and longer supply requirements at different price levels It is this market agility and cost discipline that defines the Group's financial stability and its ability to navigate market headwinds of this kind transition a opportunity The energy increasingly represents major for the Group given our applicable skills and the sheer scale of investment industry required over the coming decades to enable nations to achieve their net zero targets Altrad is closely aligned with its major clients and supporting them on their own sustainability journeys wherever possible Our expectation is that our geographic footprint and growing specialism across critical suptphatosupprorttthe global energy transition such as hydrogen nuclear and LNG leaves the Group particularly well placed to benefit from the wave of investment being channelled into the wider sector The addition of Alpha through the acquisition of Sparrows sector expands Altrad's exposure to the renewables and enhances the ability to make further inroads through Alpha's existing clients and network The Oil and Gas sector remains the Group's most prominent in terms of revenue The sector is benefitting from an improving outlook and more positive sentiment buoyed by the rapid strengthening of commodityprices through the first half of 2022 as a result of years of underinvestment combined with a supply crunch exacerbated by the war in Ukraine Our responsibility in this sector is to support our customers as they build new plants or extend the life of their assets in both cases using the latest environmental to minimise impact of their activities 48 Altrad's work activities on existing contracts are forecasted to increase to address the backlog of integrity critical work which to ELCTRONIAY wasdeferreddue theimpactoftheCovidpandemicClients in the are considering higher levels of capital investment sector in the medium term supported by confidence in FILED pricing outlook and a desire to expand production to meet Targeting New Opportunities The M activity announced and completed through the period domestic and international demand given a renewed global consolidates Altrad's position as a market leader and continues - focus on energy security an impressive track record of acquisitive growth With 2023 the strengthening energy prices we are seeing an increase Altrad's acquisitive growth fuels its organic by providing growth Oct in tendering activity for maintenance works While the growth new and specialist services that can be through products cross of the tendering pipeline does not immediately translate to the expanded Group and we are already seeing considerable 18 higher activity levels it does provide clear signals that there traction of this theme 1:13 will be materially more opportunities for the Group to pursue in the medium term The acquisitions provide exposure to opportunities in new markets and sectors For example the addition of SNKP in Senegal PM To support this the strategic expansion of services in regions strengthens Group's presence and network in Africa a market - the that are seeing strong market drivers such is the case with the in which we see considerable near growth opportunities African continent the Group is ensuring it is well positioned to within the Oil and Gas sectors With the recent acquisition of RICHLAND capitalise on these positive market tailwinds Summarising the Group's exposure to other sectors and market drivers petrochemicals remains buoyant across the sector as Valmec we will be targeting hydrogen projects upstream and downstream mechanical services to extend Altrad's current offerings in these areas refiners are boosted by higher fuel prices and several clients are A big focus through this fiscal year was the smooth integration - considering capital investments to boost domestic supply and year support their European export markets The chemical sector is facing considerable challenges from COM N increased energy costs and raw material costs and whilst our of the numerous acquisitions from the prior and this focus will continue with the more recent deals Given the number of by the Group there is now a mature process in place which is adaptable for all integrations as we activities remain steady given we support critical maintenance seek where appropriate to oversee branding consistency and PLEAS activities some of our clients are starting to reduce production so we are closely monitoring developments to ensure we can achieve operating synergies Our personnel remain the key asset within the Group and the adapt to market conditions accordingly - bedrock of our success The addition of around 20,000 new Our activities in the nuclear market remain strong wherein we support the entire nuclear sector from nuclear power generation to nuclear decommissioning to the nuclear new build programme in France the UAE and obviously the UK employees associated with the transactions in the year enhances and diversifies our talent and network We welcome each and every employee to the Altrad family and look forward to engraining them with our corporate culture and benefitting from their fresh insights and skills 203CP41759 Our activities across the sector are forecast to grow in particular on the Hinkley Point C new build nuclear project in Somerset England for EDF The UK government has recently signalled its desire to develop more new build nuclear capacity which represents further opportunity The market dynamics in France Summary - Building upon strong strategic foundations In summary it been a strong year operationally and the Group also support Altrad's activities in nuclear as the nuclear assets has adapted and navigated the challenges faced with agility and need to increase uptime in to order address the country's energy needs Here Altrad's services strengthened through the acquisition decisiveness It is our adaptability that enables Altrad's consistent delivery and given the uncertain outlook we will once again be of Endel will be utilised to achieve that objective leveraging the flexibility of our strategy and entrepreneurialism of our culture On the human side it is important that the Group recognises the impact these events have had on everyone whether visible or not and factors this into the mindset of how we manage our global workforce provide them with a secure environment conduct our business with our clients and The strategic building blocks put in place through acquisitive growth in the past few years provide a strong platform from which the Group can continue to deliver its objectives of operational excellence innovative solutions and client satisfaction Despite the uncertain economic outlook the Group remains focused on its growth plan and sees numerous supportive market tailwinds in the markets and sectors in which we operate I'm so proud of the Altrad family and the way in which they entire have worked so through what has been another year diligently of challenges in this new normal to deliver a very satisfactory performance I'd like to welcome all the new companies and their staff into the Altrad family and we look forward to achieving together the mutual benefits of the enlarged Group deliver positive impact to our wider " stakeholders 49 Operational review Safety at Altrad Altrad's to commitment health and safety characterised by the Group's mantra of Beyond Zero is born out of our overarching goal of building a more sustainable world therefore ensuring the health safety and wellbeing of our staff in all business units and subsidiaries across our global operations is of paramount importance to the Group's leadership Our clients employees and the communities in which we operate expect and deserve nothing less In order to deliver on our goals and meet these expectations the Group has fostered a culture of behaviours and standards within leadership which is underpined alignment by the close of remuneration with achieving Health Safety Environment Quality and Wellbeing HSEQW KPIs Following on from the success of the Altrad Leadership Safety Tours last year we have been pleased to see over 1400 leadership engagements this year demonstrating the commitment of the Group's regional leadership and contributing further to the wide adoption of the Group's safety ethos and best practices In 2022 the Group moved into the second year of its dedicated year Health Safety Environment Quality and Wellbeing HSEQW strategy which was launched in FY2021 with the establishment centralised of nine and annual focus areas as set out in the table opposite Having continued to employ the close analysis of regional and Group level trends that allowed senior management to develop robust action plantso meet the Group's goals in 2021 the Group's HSEQW team have this year moved to a more proactive stance by focussing on planning verification and training to establish clear improvement plans and enhance competencies across all sectors of the business In terms of performance once again in 2022 we saw a significant increase in hours worked with more than 115 million hours recorded across our workforce compared to just over 90 million in 2021 a significant achievement and evidence of the Altrad's success at integrating new members of the workforce as we welcome new companies into the Group At the same time we are pleased to note a material improvement in the Total Recordable Injury Frequency Rate TRIFR for the fourth consecutive year exceeding our internal benchmark yet again and demonstrating the effectiveness of the structured approach to HSEQW management The implementation of the Group's HSEQW strategy has added to the performance improvements across the Group and validates the journey of continuous improvement that is at the heart of our approach Risk planning at Working height l tga Line of fire 4 1 i) A significant outcome of this process has been the evolution of the Group's Golden Rules into a set of Altrad Saving Actions promoting a positive safety culture through enhanced awareness of safe working practices and an unwavering belief that all related injuries and ill health are preventable These Saving Actions are expected to be observed by all Altrad people and subcontractors from senior leadership to frontline workers and are subject to continuous assessment to ensure successful execution and effective risk management Vehicles & Traffic Ww Simultaneous operations Lifting Tools & Equipment Hot work Verification Learn more about Altrad's Saving Actions here ELCTRONIAY FILED - 2023 Oct 18 Altrad Group is nothing without its people customers and stakeholders so 1:13 ensuring their safety and wellbeing has always been a key priority for us In PM order to meet the expectations we set for ourselves in our drive to build a - better world as well as those of our clients and employees we strive to RICHLAND continually evaluate and improve companywide initiatives that promote best practices In this way we ensure that the Group remains a vendor consolidator - and employer of choice in the markets where we operate Wayne MacDonald Group HSEQ Director COMN PLEAS - HISTOW Standards FY2021 HSCOW Stancards FY2022 Leadership & Commitment Incident management Risk management 203CP41759 Planning&Procedures Organisation & People Training & Competence Performance monitoring Communication & Consultation Audit & Assurance 203CP401759 -72 % last 5 years TRIFR Actual 0.97 2016-2017 | 0.47 2017-2018 | 0.47 2018-2019 0.33 2019-2020 0.27 2020-2021 0.24 2021-2022 51 Operational review Regional performance review Market conditions and outlook across the regions United Kingdom services The United Kingdom and Ireland region continued to perform well with increased reliance on domestic production of oil gas and renewables meaning demaAlntrad d's services has risen short for In the term this is caused by the geopolitical circumstances in Ukraine and Russia and the global energy mix In the medium- long term this trend is forecasted to continue due to the energy transition supporting new forms of renewable energy generation These market tailwinds are providing an area of opportunity and challenge consequently the Group remains confident in the for outlofoutukre projects and mainteCnlieantsnwcithein the oil and gas sector are expected to increase their capital investments to deal with the inflated reliance on and demand for their products and this paired with the backlog of critical maintenance work caused by the Covid pandemic supports the positive outlook for the Group's sector activities in this region The UK nuclear market dynamics remain strong as Altrad's services continue to provide support in all three core areas energy production decommissioning and new build nuclear projects The UK's petrochemical sector has been subject to certain inflationary pressures which have impacted raw material costs However carried by high fuel prices refining remains buoyant across the sector and the outlook for 2023 remains positive Middle East The market dynamic in the Middle East remains strong High oil prices have led to an upswing in the investment by clients in large scale development projects that are scheduled to take place over the next few years in Saudi Arabia Qatar and UAE The Group therefore anticipates increasing its activity off the back of this trend The work that Altrad has begun in Saudi Arabia is likely to reach peak activity in 2024-25 providing a positive outlook for the coming years Our major market in the region is conducting essential maintenance and shutdowns A large volume of these shutdowns has caused Qatar and UAE to perform well in this sector last year In 2023 this is expected to slow down slightly however it is anticipated that there will be a rebound with a projected increase in shutdowns in 2024 Altrad's growth strategy in the Middle East is to continually seek opportunities to organise the region most efficiently in order make the business more agile and cost effective This had led to efficiencies integration further and improvements acquisitions in the region in theintegraion of new Looking forward the Group's focus will shift to diversifying the types of service delivered into new markets - becoming a bigger player in servicing and given Altrad's expertise and capability in this area this represents a bright prospect for the future for Altrad in the region ELCTRONIAY FILED Africa - Altrad has performed well in Africa once again in 2022 and this 2023 momentum is expected to continue in the years to come based Oct on the market drivers and the Group's positioning in the market Asia Pacific This success is a result of Altrad's ability to diversify its portfolio Performance in the Asia Pacific region has varied from country 18 of products and services through selling with the use of to country but the outlook for 2023 remains positive Altrad 1:13 various newly acquired Altrad subsidiaries further underlining the success of the Group's acquisitive growth strategy in China has been challenged by the cancellation of modular fabrication projects as an indirect result of Russian sanctions but PM performance has been in line with expectations in the current There has been a lot of interest from Nigerian Oil and Gas fiscal year - operators to use equipment from the wider Altrad Group specifically desanding equipment from Altrad in the UK One With the easing of Covid restrictions Altrad in Thailand and RICHLAND such example wasa project using desanding equipment byShell Nigeria on Bonga FPSO which commenced in June 2022 On similar note the acquisition of RMD Kwikform last year Singapore is seeing increasing momentum and opportunities in what have been tight and competitive markets supporting a positive outlook going forward - has enabled Altrad Nigeria to expand their focus to Equipment In Australia Altrad has been successful securing various contracts sales as well as Service sales to support the transition to a less carbon reliant economy With The Group has also been successful in extending the services of Altrad Prezioso who prior to its integration into the Group COM N lacked specific capabilities in Heat Tracing HT services Through collaboration with Altrad Belgium the Group has been able to opportunities provide this service for its clients and are hopeful of securing PLEAS a contract in the tendering on the EACOP Project for TOTAL the acquisition of Valmec 2021 the Group is continuing turnkey projects providing hydrogen facilities with services that include construction small scale EPC project development support design facility construction operations and maintenance support Altrad is anticipating large development resulting from Australia's commitment to green energy given the Energies in Tanzania country's vision to leverage its wind sun land infrastructure - and skills to become a world renewable hydrogen supplier this offer The use of strategy in Africa has enabled Altrad to new services and secure contracts that were previously unattainable Operations in oil and gas continue due to strong gas prices with work primarily focused on maximising the utilisation of assets therefore delivering growth active and pipeline rather than servicing and shutdowns as clients seek to enhance 203CP41759 of projects and delivering greater value to the Group's clients production on downstream LNG spot priced contracts Continental Europe Europe is in a time of fast paced changes and policy This reform Looking 203CP401759 changing dynamic has mostly been driven by the energy transition forward the Group's focus diversifying types will shift the as countries across the continent implement strategies to achieve zero but has also been accelerated by the geopolitical turmoil to in Ukraine and Russia of service delivered into new markets Consequently Altrad is witnessing growing investments in renewables to reduce the reliance on hydrocarbon energy This requires significant to changes industrial sites and networks to meet the EU's Green Deal of Net Zero in 2050 with new - becoming a bigger player in renewables servicing and projects and ongoing maintenance required Governments are now commencing investment programs to address these requirements while simultaneously providing an economic boost through associated spending Altrad is well situated to capitalise on this dynamic as it provides the prospect of securing contracts to support these new projects and maintenance requirements Combining this with Altrad's multidisciplined portfolio of services and expertise the Group expects to be a service provider of choice across the continent In line with this the Group has secured a large contract servicing Olefines chemical plant in Antwerp Belgium which is critical to Europe's energy market given Altrad's growing expertise and capability in this area this represents a bright prospect " for the future for Altrad 53 Operational review Project case studies Building a sustainable world Project Case Studies Supporting Australia's energy transition with a growing specialisation in hydrogen Along with many of the world's developed economies Australia is making an effort to reduce its carbon footprint with an overarching target of reaching net zero by 2050 and an interim goal to reduce emissions by 43 by 2030. One of the ways in which these targets can be achieved is via the use of Hydrogen Governments like Australia are recognising the potential in electrolysing hydrogen for energy generation to smooth out fluctuations in supply by increasing the efficiency in short term refuelling Hydrogen has an important role to play within the energy transition and requires specialised novel technologies and services Altrad is committed to building a sustainable future by utilising its expertisteo support the global goals of sustainability and innovation within the energy transition The recent acquisition and integration of Valmec provides the Group with a leading player in the utilization of Hydrogen ELCTRONIAY FILED - 2023 Oct 18 Project Case Studies 1:13 risking energy transition technologies PM Valmec recently completed Australia's largest - new hydrogen electrolysis plant in Tonsley Adelaide The project achieves 1.25MW RICHLAND by blending green hydrogen into local gas distribution benefiting 700 residents nearby The use of such plants and projects is only expected to grow with several in the planning - stages and studies are ongoing to assess how COM N blending higher ratios of hydrogen more than % into natural gas pipelines could increase energy output and efficiency Valmec has also been awarded the contract to operate and maintain the Hazer Commercial Demonstration project near Woodman Point PLEAS Western Australia A pioneering plantation - being the first scale demonstration of The Hazer Process a novel method to produce low emissions hydrogen and graphite from a renewable form of methane This success 203CP41759 signifiesthepotentialtobuildonAltradand Valmec's hydrogen capabilities Valmec has also been successful in attaining the contract for the flagship project of Kwinana 203CP401759 Energy Transformation Hub KETH where they will be responsible for the Front Engineering and Design FEED The project comprises of 800kg green hydrogen and 10 tonnes LNG facility providing a globally unique low risk asset allowing for companies to risk energy transition technologies and strategies before the next wave of investments targeting Zero Operational review Essential infrastructure projects Project Case Studies Essential European Oil Infrastructure Maintenance Energies Olefins site in Antwerp one of Europe's largest and most productive refinery sites was entrusted to Altrad for an essential turnaround service to maintain sustainable operations The site's aim is to meet the growing demand and address new market trends Olefins is a critical hub servicing Europe's oil markets processing 338,000 barrels of oil per day as well as hosting a petrochemical plant and a facility that produces polymers with a capacity of 1.1 million tons of ethylene per year Such essential infrastructure projects must be delivered by a trustworthy highquality contractor PARTNER OF THE W Teamwork Planning Safety Proudly Presented To Altrad Congratulations From the TotalEr NO ELCTRONIAY FILED - 2023 Oct 18 Project Case Studies 1:13 Erecting 90,000 cubic metres of scaffolding at fully operational facility PM - Never before has the dismantling and assembly of very specifically Foamglas insulation been thetrust our in RICHLAND awarded to a single contractor therefore highlighting clients AltrAlatrdad to be responsible for essential large projects A turnaround process is an occasion where large production facilities go through this COM N scheduled shutdowns which are organised at regular intervals In doing several parts of the installation are decommissioned to carry out the most important maintenance PLEAS tasks to ensure all elements of production are working efficiently and to guarantee reliability - A crucial factor in this operation time scale as it was essential that the work delivered is the agreed to minimise loss within timeline in production Altrad's experienced team therefore had to work under extreme time pressures whilst also keeping safety a priority This involved the installation of large 203CP41759 scaffolding and insulation work assembling the 90,000 cubic metres of scaffolding material 203CP401759 that was required for the project The ability ofAltrad to safely this complex project deliver overcoming the challenges of such a large volume of scaffolding with heights up to 70m erected in a relatively small surface in areas that were difficult to access - all while the plant was fully operational - demonstrates asa of for Altrad's status partcnhoiece r major infrastructure projects of this kind 57 Operational review Trusted with the world's most iconic monuments Project Case Studies Giving Eiffel Tower a for make Olympics 2024 The Eiffel tower is undoubtedly one of the most recognisable monuments in the world and will serve as an iconic back drop the 2024 Olympic Games In preparation for the Olympics the yearold tower has been placed in the expert hands of Altrad Group's painting and rope access operators to provide it with an attractive refurbishment its French roots Altrad is With achievment proud of this and is honoured to be contracted to work on such an important piece of French cultural history TW 7 2 we A gh ry aw ELCTRONIAY FILED FILED - 2023 Oct Project Case Studies project A services Altrad's diverse showcasing 18 1:13 specialist PM - The project which spanned from November 2021 to June 2022 was a large campaign RICHLAND that required a reinforced sanitary protocol for the blasting process as well as extremely thorough safety procedures to protect the operators the public and the environment To ensure environmental stewardship Altrad recycle COM N used a powerful suction system to collect and the abrasive particles Showcasing the diverse specialism within the Group the Altrad Prezioso Linjebygg teams were involved in shot blasting and PLEAS repainting and the Altrad Arnholdt subsidiary was involved in scaffoslcadffiolndigng and - the containment caissons The scaffolding involved a complex month campaign utilizing our exceptional human and material resources 203CP41759 deploying up to 35 scaffolders to erect this 450 scaffolding project For the first time the tower was stripped of all its previous 19 layers of paint using shot blasting The tower was then subsequently 203CP401759 repainted over a surface area of 4,800 m2 covering the most exposed and deteriorated areas in order for the monument to be in great condition ahead of the world's largest sporting event 59 Operational review selling across the expanded Group Project Case Studies Combining knowledge and expertise to enhance service offering This year Altrad secured a multimillion year deal with the option of an additional 2 years to support the fabric maintenance of TotalEnergies offshore assets in the North Sea Denmark The facility is located in the field and its development and maintenance meets a dual objective to maintain a state art facility offering heightened safety for its teams and to revitalise its production and export capacity which should ensure gas provision for the Danish population for the decades to come 60 ELCTRONIAY FILED - 2023 Oct 18 Project Case Studies 1:13 Delivering a more efficient client experience PM project Altrad will provide a critical - For thisto ensure of service the safety and reliability the asset We will be combining our management RICHLAND team with the newly acquired the Altrad Group Muehlhan This to combine the resources facilities and the experience of the wider Altrad organisation - with the local knowledge and know of COM N Muehlhan in Denmark - spreading Altrad's span of connectivity to regions and markets we previously had no exposure to Our support will cover a range of fabric maintenance services including project management planning and ordination PLEAS scaffolding rope access protective coatings - and insulation services This will provide the for client with a central contractor all their necessary maintenance and development 203CP41759 needsdeliveringoperatingefficienciesand an enhanced client in the experience process 203CP401759 61 Operational review Supporting the energy transition Project Case Studies Diversifying Middle Eastern Energy In their efforts to diversify their energy mix the energy transition and supportglobal the United Arab Emirates have been developing a domestic nuclear energy programme of which the first step is the Barakah nuclear power plant As the first such plant of its kind in the Middle East and North African region Altrad Endel and its subsidiaries are set to contribute the technical know they have built working on EDF nuclear power plants in France in the maintenance of the Barakah plant Situated in Abu Dhabi the plant is to be comprised of 4 1400 pressurised water reactors which are designed to improve the operation safety maintenance and affordability of nuclear reactors With this when all four reactors are active it is expected to supply 25 of the UAE's energy needs at a quarter of the cost of gas therefore reducing the dependency on oil and gas 62 ELCTRONIAY FILED - 2023 Oct 18 Project Case Studies 1:13 Strategic Coordination of Subsidiaries PM In the last year Altrad Endel have supported - its subsidiary CERAP Pr^'ventionin setting up N^...samin the UAE to secure three contracts RICHLAND whichwill see 120skilled members of Altrad's work force active on the Barakah plant The initial contract won by CERAP Pr^'vention was the outsourcing of general maintenance on the plant the second ensured that Altrad COM N were a key player responsible for the smooth running of the unit outage where a shutdown occurs to deliver essential maintenance inspection or cleaning to the ensure facility PLEAS is running safely and efficiently Altrad Endel were awarded a third contract - for the steam generator jetting service an operathatt iconosisnts of spraying pressure water onto the sludge that accumulates on the steam generator tube sheet A crucial 203CP41759 service requiredtopreparefortheunit outage program Barakah provides the opportunity for Altrad to position in itself the of heartthe Middle East and to coordinate its expertise of maintenance services in the new developing nuclear power 203CP401759 to sector deliver new value to our customers ELCTRONIAY FILED - 2023 Oct 18 1:13 PM- RICH- LAND COMN PLEAS - CASE#203P41759 sA aaq&og5 2Pot 2Ez =gwu oOs22 of Altrad asaison d ^'tre. Sustainability review ESG ESG ESG Pascal Gauzere CSR Our commitments Environmental Altrad's Social and forms an integral part of its raison d'^"tre ESG The ambitions of Altrad as announced in this Report are delivered through our focus on four core commitments With these commitments forming the foundations of our raison d'^"tre we remain extremely mindful that our ability to deliver our ambitions require us to secure a resilient and sustainable financial performance Through a strong set of management principles clearly articulated financial discipline and an understanding of our business risks and opportunities Altrad can make long term commitments and a lasting positive impact on its communities and the environment The commitments of Altrad together with their associated objectives are to Grow our People Protect our Environment ensure Strong and engage in Philanthropy Each of our commitments is supported by objectives and their associated KPIs which are reviewed regularly 66 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMN Grow our People The development of our staff in safe and healthy environment PLEAS is fundamental to the development of our business and our communities Objectives - E nsure we deliver industry leading targets for training and actively encourage employment within the local communities throughout our international operations 203CP41759 Provide career development opportunities to all our staff P romote a multicultural organisation which respects all backgrounds and beliefs Ensure gender diversity a through to strategy increase gender representation 203CP401759 Prevent all related accidents through our dedicated Beyond Zero safety strategy CONVIVIALITY cee 67 Sustainability review Protect our Environment We have only one planet and must play and active and responsible role in preserving its riches Objectives A chieve net zero by 2050 Deliver reliable service innovation and partnerships to our customers to help them achieve their own energy transition objectives T arget zero consumption of single use plastics C ontinuously pursue initiatives including the training of our staff to reduce the impacts our business and staff have on in ovation the through recycling partnerships Strong Governance Our governance process must ensure that we operate a robust business which meets the highest standards expected of an international organisation Objectives Implement and maintain the highest international standards of ethical behaviour Prevent all forms of modern slavery A ssess key business risks and implement associated actions to mitigate risks Maintain a balanced and independent Board to ensure the accountability of the executive team 68 ELCTRONIAY FILED - 2023 Oct 18 1:13 1:13 PM - RICH- LAND COMN Meaningful Philanthropy Commit time and to money carry out philanthropic activities PLEAS which support our corporate goals aligned to certain of the United Nations Sustainable Development Goals SDG 2 No Poverty 3 Good Health and being 4 Quality Education - 5 Gender Equality 7 Affordable and Clean Energy and 13 Climate Action Objectives 203CP41759 Contribute a minimum of % ofAltrad's net resultannually towards SDG objectives E nable employees to dedicate their time towards the SDG objectives C ontribute through sport notably rugby to the provision of 203CP401759 opportunity to all age groups grassroots rugby community development educational initiatives work opportunities CHARTE UTILISATION --- Bam SUTKISATION ... 28 28 69 Sustainability review Governance at Altrad Although the parent company is not publicly listed Altrad Group's commitment to the principles of good governance to guarantee economic performance exemplary administration and management trust and transparency has led it to adopt a governance framework that respects the core principles of the Autorit^'des March^'sFinanciers French financial markets authority The foundations of this governance system are of transparfeinnancciyal information prudent financial and risk management strong ethical principles clear independence relation of directors in to the President and to with accurate and timely information to ensure they have the greatest possible visibility This form of governance as formalised in the Group's a Governance Charter is characterised by high level of information disclosure and independence enabling Altrad Group to make informed strategic decisions and helping to ensure financial discipline and the balanced development of its activities responsibilities The General are divided Mr between Mr Ran Oren and Jan Vanderstraeten as Chief Executive Officers of the Group The former holds corporate responsibility and the latter holds operational responsibility 5 independent directors sit on the Board of Directors to guarantee the objectivity of the discussions Drawing on their experience they contribute to the relevance of strategic decisions particularly those relating to investment restructuring or business takeovers 6 directors representing the shareholders also sit on the Board of Directors which is also characterised by the presence ofobservers and an who overseer attend meetings and take part in deliberations without voting rights metings with 7 Board an of this year rate of 91.7 directors 6 directors representing shareholders 5 independent directors 1 employee directors 3 observers 1 overseer 7 meetings during the 2021/2022 2021/2022 financial year with a participation rate of 91.7 Richard Alcock Mohed Altrad President & Founder Maurice Delrieu Advisor to the Pres dent Pierre Denis Sean Fitzpatrick Isabelle Garcia Group CFO Alain Juillet Fabien Litot Lega manager a >, i Antoine Onfray Ran Oren Group CEO Christian Parente Jan Vanderstraeten Group CFO 70 Capital distribution As at 31 August 2022 Altrad shareholdings ) Banque Publique d'Investissement 2 Financial shareholders Altrad managers Other shareholders Total M. Altrac 100 2 Free State ELCTRONIAY In <million Number of shares % FILED - 2,625,635 77.28 2023 366,987 10.80 383,296 11.28 21,129 0.62 Oct 777 0.02 18 3,397,824 100.00 1:13 PM - structure Shareholder 1.31 ) RICHLAND 77.45% MohedAltrad 11.31 % Financial shareholders 7.22 CM CIC Investissement SRC Developpement 1.93 Arkea Capital - 1.68 BNP Paribas Developpement 0.48 Tikehau Capital COMN PLEAS - 0.42 % Altrad managers 10.82 % Banque Publique d'Investissement J 203CP417 9 September wholly In 2022 Altrad Participations through its of d'Investiemnt subsidiary its financial shareholders Banque Publique owned CM those increasing its ownership from 77.28 to 97.60 Represntaives acquired shares held by a significant portion SCR and BNP Paribas Developpement resigned from the Board institutions acompanied transformational a These financial Altrad throughout a period of growth over period exceeding 10 years During this time the Group raised its turnover from around 400 milions to today's pro forma 4,422 millions and has developed into a major diversified global industrial services partner and become a key player in the markets it serves of to our financial for Mohed Altrad and the board directors would like to express their most sincere appreciation their long and unequivocal support of the Altrad Group partners New shareholder structure As at 30 September 2022 97.60 % Mohed Altrad ] 2.40 % Others 71 Sustainability review Risk management Ran Oren Group CEO ESG and business process risks Altrad Group's risk mapping was carried out in 2022 through the coordination of all Altrad's subsidiaries The risk mapping was initiated through the identification of key risks into two categories first ESG and second Business Processes These risks were incorporated in a detailed questionnaire enabling our businesses to rate the risks by reference to likelihood i.e. how likely the risk is and the impact i.e. to what extent the risk can cause damage Each business also identified mitigating risk factors to subsequently rate the risks residual These results were analysed and tabulated into risk heatmaps which the leadership team use to define priority areas for the Group The key risks identified through this bottom up approach were Altrad recognises that the breadth and scale of risks in an international group with such diverse operations and international footprint requires a mixture of approach from top down to bottom up to ensure the risk appetite of the Group weighed against its strategic and long objectives is set at an appropriate level For ESG risks Health and safety This topic addressed in the HSEQW section of this Report Human resource management As a people business it is important we retain our ability to attract train and retain our workforce of around 56,000 talented individuals Although in already place employe and happiness will be a key focus area for 2023 and beyond For Business Process risks T endering & negotiations In the competitive and mature environment in which we operate it is important to weigh the risks and rewards of conducting our activities Our objective is to be a reliable of provider and services to products our clients which we must do on the basis that each party obtains the rewards of the relationship C ontract comitment Our to client needs is second to none and we must make sure we manage our contracts in a transparent and effective way to avoid contract losses or the erosion of client relationships Innovation As our markets clients and competitors evolve it is essential that we continue to innovate our products services and offering in order to surpass client expectations and gain additional market shares Credit risks Given the volatility of recent years and current impact of inflation client credit risk becomes an increasingly visible threat which must be managed through the appropriate means An abbreviated version of our bottom ESG and Business Process risk mapping is contained below with more detailed to analysis be provided in Altrad's inaugural Sustainability Report early in 2023 72 EFLCITRLONEIDAY Natural disasters FILED Data confidentially Waste management - competition practices Accidental pollution 2023 Conflict of interest Carbon impact Oct 18 Bribery Gradual pollution 1:13 Growth Physical risks PM - Third party Law and regulations Psychosocial risks RICHLAND Catastrophy - Diversity Modern /slaveCrhiyld labour Road accidents Biological risks Chemical risks COMN Human right violations Terrorism PLEAS Human resources management Education - Management issues 203CP41759 Tenderprocess Incorrect specification Market conditions Process Negotiation issues 203CP401759 Failure to comply Contracts management Information management Tax risk Business risk Claims Innovation Loss of assets Assets managements Loss of data Credit risk Fraud Clients DefaulDefault t of payments 73 Sustainability review Importantly Altrad recognises that the breadth and scale of risks in an international group with such diverse operations and international footprint requires a mixture of approach from top down to bottom up At the Group level the risk governance framework is set by its Executive committee and is supported by the Group's internal audit function controlling function legal and compliance as well as the Grouptreasuteraym Its objective is to ensure the risk appetite of the Group weighed against its strategic and term objectives is set at an appropriate level Altrad has also conducted a similar assessment of its modern slavery risks The overall risk is considered low through mitigating actions taken in the higher risk territories Our internal audit team also conducts modern slavery assessments and interviews with staff to support the wider governance process around preventing all forms of modern slavery Risk assigned within the and risk reduction and assurance structures are implemented where management consider further action is required to manage the risks The table below identifies key risks faced by the Group alongside the risk mitigation and assurance actions Type of risk Description Risk recuction and assurance Competition -Intense -Intense competition in both Equipment and Services markets becoming more acute during economic downturns -Reduction -Reduction of margins Loss of contracts and market share Strategic focus on long term recurring contracts Evolve disciplinary service offering innovate products in order to differentiate Strong cost control to pass savings to customers Corporate social res- ponsibility Growing importance of CSR in client tenders and in financial markets -Reputational -Reputational damage -Strong -Strong emphasis on the Group's raison d'^"tre building a sustainable world -Ongoing -Ongoing development of CSR strategy and importance of good corporate citizenship Credit Counterparty credit risk related to commercial activities particularly in emerging economies or during economic downturns Credit checks carried out as part of customer onboarding - Monitoring of customer credit ratings -Strong -Strong monitoring of aged debtors with proactive debtor management Customer dependency -Reliance -Reliance on low customer numbers with impact of the loss of key clients - Strategy of customer diversification across countries markets and services Key account management programmes to maintain strength and depth of relationship -Long -Long relationships with many term contracts -Positioning -Positioning as Tier 1 suppliers to key customers Risk of bribery corruption competitive and unethical conduct -Full -Full review of Group's Business Integrity & Ethics framework - Risk mapping training and audit of compliance Ethics Risk of modern slavery in our workforce and supply chain processes and culture Targeted modern slavery and bribery Criminal and financial penalties and corruption audits reputational damage - KPIs set in annual performance reviews Type of risk External growth Health safety ELCTRONIAY Description Risk reduction and assurance -The Group's strategic growth plans The Group maintains net EBITDA ratios below 1.2 The Group has developed expertise in the acquisition require sustained profitability and maintenance of debt ratios Paradox of growth with growth of entities through - rapid generation of synergies to achieve objectives FILED and the release of cash flow while respecting the cultures -203 being a necessity but carrying of the acquired companies -203 integration and operational risks - aligning Group managers to the success of integrations and the sustainable development of the Group Oct -Safety -Safety teams in all business units with a dedicated 18 Harm or injury our workforce to Group to audit coach train and ensure HSEQ function Risk to reputation and commercial a strong safety culture in the Group 1:13 risk in the event of accident PM Civil or criminal risks to directors Environmental policies and audits to minimise impact on environment through activities - Risks of fraud - Cyber essentials certification RICHLAND Information systems and cybersecurity -Regulatory -Regulatory obligations in terms of data and network protection -Obsolescence -Obsolescence of Patch used on IT equipment Use of the latest antivirus and URL filters systems Establishment of appropriate procedures - -Back -Back solutions for validation of payments Interest and exchange rates -Foreign exchange and interest rate risks The COM N foreign exchange risk is limited with most income in same currency as subsidiary cash flow requirements The majority of financial debt is at a fixed rate or in stable markets with reduced risk of material fluctuations PLEAS - Payments in dollar or euro are requested and are prioritised in countries where the currency is not readily convertible or subject to significant depreciation risk Liquidity - The Group's global debt is centralised within the holding -Ability -Ability to fund all debt repayment company which negotiates financing with the subsidiaries 203CP41759 obligations - Necessity to finance the operating cycles of the Group -Ensuring -Ensuring liquidity is maintained in the medium and short term -Debt -Debt instruments managed carefully to ensure a spread of maturities with regular reviews of debt structures -Conservative -Conservatie treasury policy available cash in the holding company and not in the order of 500 million euros in subsidiary entities -Strong -Strong focus on cash pooling and repatriation 203CP401759 of cash to the holding company Pandemics - Economic impact reducing demand for services and products Quarantine impacts productivity and availability of workforce -Health and safety of our workforce Monitoring of key financial indicators and being able to respond to market conditions - Negotiations with clients on cost of idle time forward planning for mobilisation requirements Maintain health and safety culture follow sanitary guidelines including quarantine work from home where appropriate Political and economic environment Variations in commodity pricing impacting demand and customer spend -Currency -Currency fluctuations Acts of /state political / instability war / legislative and regulatory risk - Strategy of diversification of customer base sector and geography Strategic focus on mandatory recurring maintenance spend less dependent on price variations -Contracts -Contracts concluded mainly in local currencies and dollars against local costs -Regular -Regular reviews of political risks and alert during periods of instability or war Raw materials price Strong fluctuations in raw material prices including steel aluminium and zinc Management of forward purchases by a specialized team Dedicated procurement function to optimise purchasing - Ensure product pricing adjusts according to fluctuations 75 Ethics Altrad is committed to maintaining a strong ethical culture which dictates the way we do business and the Group has RICHLAND an obligation to maintain the highest standards in supporting human rights fighting discriminatory labour and social 203CP41759 practices improving environmental protection203CP401759 expanding the use of environmentally friendly technologies and advocating II against corruption in all its forms Sustainability review ELCTRONIAY FILED FILED - 2023 Oct Through the Group's association 18 with rugby is courage humility 1:13 respect among others that we PM - wish to emphasise encouraging RICHLAND the cultivation ofpositive feelings that inspire us to grow that unite us that bring us together on the journey - to creating a better world Inherent in this ambition is the desire COMN necessity even of providing opportunities for everyone regardless PLEAS Sporting of background age gender race or religion to enhance the sense Partnerships ofinclusion as well as mental and physical wellbeing across the societies 203CP41759 where theGroupisprivileged to operate . We see this reflected 203CP401759 in the solidarity sacrifice and resilience of all the teams we are proud to sponsor from the New Zealand Black Ferns and the Minis & Juniors at Henley Rugby Club to the first XV of Montpellier Herault and the French national team Through sport we can 78 create a lasting legacy Sustainability review An important component of Altrad's commitment to building a better world and to central d'^"treensuring have a positive impact on society around us Our long association with rugby is at the centre of this ambition where the values of hard work respect solidarity humility and courage reflect those of the Group and inspire us to create an inclusive and high- performance culture . From the President down through the rest of the Group there exists a shared belief in the power of rugby from the local level to the international level to inspire and bring people together to create a shared legacy Altrad Group is proud to be associated with world leading Rugby institutions including being the Official Partner to the French Rugby Team FFR and a Major Global Partner to New Zealand Rugby with the Altrad logo present on the famous jerseys of both teams The Group is also indelibly linked with Montpellier not just because of being founded in the town in 1985 but as the major and of sponsor Herault Rugby Club Altrad's story is in part one of success through hard work and a dedication and it was great source of pride to see these qualities reflected on the pitch this year as France's first XV secured the MHR were to lift Grand Slam in the Six Nations and able the Shield of Brennus and celebrate the first domestic title in its history These victories are a fitting and deserved reward for years of hard work sacrifice and great resilience values which sit at the heart of the Group Altrad's sponsorships of the teams mentioned above along with our sponsorship of Western Force in Australia and many semi- professional or amateur teams provide a platform to promote the Altrad brand across the world but more importantly to work in tandem with the great people at these organisations to promote the positive influence of rugby in the community in terms of health and diversity comradery ambition and our round vision of excellence Most pleasingly these associations also allow Group to support not just the first XV but also women's youth and amateur teams reflecting our strong desire to promote the values of equality inclusion and diversity through rugbtyo our employees customers and the communities around the globe where we operate Together with our partners we can deliver a lasting legacy that creates a positive influence on health wellbeing and community engagement Beyond the sponsorship of such illustrious sporting institutions we are especially proud of the positive impact delivered through the Group and its partners charity initiatives Altrad Group has been supporting Altrad Mostostal business in Poland as they the continue work with local young people teaching them positive to life lessons through the benefits of rugby The scheme promotes sport as an opportunity to grant equal opportunities for the development of every child using rugby as vehicle enhance their life skills and broaden their horizons to the wider world including learning French The children mostly from less advantaged backgrounds have learned the importance of discipline and hard work and felt the rewards The association of the Altrad brand with Montpellier H^'rault Rugby Club and National Rugby teams of both France and New Zealand is one that brings added pride to the programme for the children involved meaning they feel part of something much bigger and contributes to supporting their community This is the essence of what we mean when we say that Altrad shares these same values and seeks to build a better world together standing side by side on this journey The power of rugby to connect people and inspire communities cannot be understated 1 hak 7 GRAND CHELEM 2022 FRANCE Moheo Altrad Presicent & Founcer 80 Managing our business Performance Key figures available on altrad.com PROFORMA includes companies extrapolated over 12 months the 2022 financial year RMD Valmec Cices Muenean Endel FRP Sparrows Consolidated profit and loss account In m<illion R evenue from current activities C ost of raw materials and merchandises P ersonnel costs O ther external expenses Depreciations and amortizations S hare of results of associates Current operating profit EBITDA including IFRS 16 O ther revenues and expenses R estructuring and underactivity costs Operating profit C ost of net financial debt O ther financial products & charges Profit before taxes T axes Net profit Group net profit M inority interests Net amount 31 August 2022 4,422.0 -984.5 -1,947.9 -895.5 -216.2 1.2 379.1 592.7 3,840.2 -826.6 -1,702.0 -788.3 -206.1 0.4 317.6 524.9 -39.7 -14.7 -14.7 312.2 263.3 -48.3 -47.6 -24.1 -14.6 239.7 201.1 Consolidated cash flow statement EE In million Net profit cash adjustments W orking capital adjustments Net income taxes paid Net cash flow from operating activities 276.5 C apex movements 415.3 A cquisition and disposal of subsidiaries net of cash disposed of -17.4 Net cash flow from investing activities -14.9 244.1 Dividends paid to shareholders C hange in loans O ther financing activities Net cash flow used in financing activities Net effect of currency in cash -53.8 -60.9 186.0 175.2 Net increase in cash and cash equivalents C ash and cash equivalents start of period Cash and cash equivalents end of period 177.6 138.3 8.4 8.3 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - Net amount 31 August 2022 RICHLAND 146.6 376.8 - 51.7 COMN -45.0 530.0 PLEAS -162.7 -97.9 - -268.8 -55.0 203CP41759-431.5 -152.9 -30.6 -30.5 241.5 -158.8 203CP401759 -52.0 -41.1 158.9 -230.4 39.4 296.8 1,081.4 1,378.2 -30.0 1,111.4 1,081.4 84 85 Managing our business Consolidated balance sheet assets In m<illion Non current assets G oodwill I ntangible assets Tangible assets R ight of use assets current financial assets and other current assets Deferred tax assets Total non current assets Current assets Inventories T rade receivables Current taxes O ther receivables C ash restricted cash and cash equivalents Total current assets A ssets held for sale Total assets 86 Net amount 31 August 2022 1,780.7 77.8 557.6 197.8 38.1 88.3 2,740.3 ee Consolidated balance sheet liabilities In million Total equity O thers funds from shareholders Financial debt LT Lease liabilities current Reserve for risks and social engagement LT O ther non current liabilities Deferred tax liabilities Total non current liabilities 264.8 1,143.6 9.3 194.3 1,435.1 3,047.1 105.3 1,132.4 2,078.9 0.1 5,787.4 4,135.2 Financial debt ST Lease liabilities current Reserve for risks and social engagement ST T rades payables O thers current liabilities Total current liabilities Total & equity liabilities Altrad Investment Authority Simplified joint stock company - With a capital of 3<39,782,400 Head ofice 16 Avenue de la Gardie - 34510 Florensac - France Administrative headquarters 150 rue Le P^'rugin- 34000 Montpellier - France RCS B^ ZIERSB 529 222 879 Auditors Ernst & Young Audit : Immeuble Le -Blasco 966 Avenue Raymond Dugrand CS 66014-34060 6014-34060 66014-34060 Montpellier - France Grant Thornton : - 44 Cit^'Internationale Quai de Charles Gaulle CS 60095-69463 6095-69463 60095-69463 Lyon - cedex 06 - France EFLCITRLONEIDAY FILED - 2023 Oct 18 1:13 PM - Net amount 31 August 2022 RICHLAND 1,181.2 - 195.5 COM N 1,740.0 143.9 PLEAS 384.5 81.0 - 37.5 2,582.4 203CP41759135.6 54.6 126.3 203CP401759 951.2 591.5 756.1 424.1 2,023.8 1,558.4 5,787.4 4,135.2 87 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RICH- LAND COMN PLEAS - 203CP41759203CP401759 Disdaimer the photographs used in this report were taken in and conditions force the time of their production Some photographs used in this report have been retouched Pictures L. Carte A. Dimou Midi Libre Hayden- R. Grisoni R. Sprang Ta^flebA. Van Pelt - AAPllhttorrtaaoddlCSSoifreeagberrrvvaiirccieeesssTGheeattitlyand- Black Ferns T. Hayden- Corporation Services AltradSpAPardreyrzaoirwodssoGArloturapd ArWnehsotledrtn Force- Babcok Altrad Emirates EndelAltrad Creation PPrleotdacuMcetfrsan Altrad - - Altrad Black Images Collectivit^'s - Nuclear Energy Mostostal Altrad Altrad Benelux - FFR - Altrad MHR - - BabcoBcabckock Altrad Saint Denis UK Ireland and Nordics - DR ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - RIC-HLAND COMON PLEAS PLEAS - 203CP41759 ALTRAD ALTRAD 150 rue Le - P^'rugin 34000 Montpellier - France Tel +33 0 07 84 12 01-igarcia@altrad.com 01-igarcia@altrad.com www.altrad.com