2019 CONTENTS

INTRODUCTION 03 10

INTERVIEW WITH 06 Frédéric Gardès

PART 1 10 Strategy

PART 2 22 Solutions

PART 3 40 Contributions 22 and results

GOVERNANCE 54

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40

Document completed in February 2020 Introduction — Profile

World leader in the construction and maintenance of infrastructure

MISSION VISION Promoting Global expertise infrastructure united by solutions for a strong brand sustainable mobility

THREE MAIN BUSINESS SEGMENTS

Roads: construction and maintenance of roads and highways, airport runways, city streets, urban development, reserved-lane public transport (tramways, bus ), ports, industrial sites, logistic platforms, shopping centers, parking areas, road safety equipment, marking, signaling, leisure facilities, environmental development, civil engineering, building, deconstruction, etc.

Construction materials: production, distribution, sale and recycling of aggregates, emulsions, asphalt mixes, ready-mix concrete, bitumen.

Railways: design and engineering of large complex projects, construction, renewal, maintenance of railway networks (high-speed lines, traditional track, tramways, subways).

Colas also operates in the Water & Energy transport sector.

Colas 2019 — 3 Introduction — Colas around the world

PROFILE Colas on five continents in 2019 57,000 €13.7B

employees (as of December 31) in revenue average workforce over the year: 59,900 employees OF WHICH outside of

OF WHICH MORE THAN IN OVER 52% 23,000 50 employees trained in first aid countries

recycler in the world

projects of revenue from of revenue from materials production materials production is covered by an has a community environmental impact dialogue structure management tool 3,000 800 (certification and/or checklist) production and profit centers material recycling units

4 — Colas 2019 North America Europe 7,700 employees (excluding (on December 31, 2019) France) Average workforce over the year: 10,500 France 10,000 Rest of the World employees 26% (on December 31, 2019) employees of revenue 31,000 8,300 employees Average workforce (on December 31, 2019) UNITED STATES CANADA (on December 31, 2019) over the year: Average workforce Alaska Alberta 10,500 over the year: 7,700 Arkansas British Columbia Average workforce California Manitoba over the year: Colorado New Brunswick 31,200 18% 8% Florida Northwest Territories of revenue of revenue Nova Scotia Illinois Nunavut 48% EUROPE AFRICA, ASIA, OCEANIA Missouri Ontario of revenue (EXCLUDING MIDDLE EAST, Australia Nebraska Quebec FRANCE) INDIAN OCEAN Cambodia New York Saskatchewan MAINLAND Algeria China Ohio Yukon FRANCE Benin India Pennsylvania Croatia Côte d’Ivoire Indonesia South Carolina FRENCH OVERSEAS Egypt Malaysia South Dakota DEPARTMENTS Gabon New Caledonia Virginia AND REGIONS Greenland Kenya Singapore Wyoming French Guiana Madagascar South Korea Guadeloupe Iceland Mauritius Thailand Martinique Ireland Morocco Vietnam Mayotte Isle of Man Oman Reunion Qatar SOUTH AMERICA Senegal Chile South Africa Peru Togo Venezuela Slovakia Tunisia Slovenia United Arab Emirates

Colas 2019 — 5 Interview — Frédéric Gardès

INTERVIEW WITH Frédéric Gardès Chief Executive Officer of Colas

What is your take on business After 2018, which was a record Can you tell us more about Colas and profitability at Colas in 2019? year for acquisitions, have you innovations in 2019? forged on with Colas’ targeted F.G. Overall, 2019 was a good international development policy? F.G. We signed an agreement year. with Sidewalk Labs, a subsidiary of F.G. Our external growth was lower Alphabet (Google’s parent company), We posted €13.7 billion in revenue, a than in 2018, which will remain as an to experiment our Flowell dynamic 5% increase at constant scope and exceptional year in the history of Colas. luminous signaling solution as part exchange rates compared to 2018. of the Quayside project in Toronto. Business was driven by growth in 2019 was marked by our first footsteps Designed to provide modular urban Roads in Mainland France and in into the road business in Latin America, spaces and to reinforce user safety, Railways, which offset the impact of with the acquisition of Asfalcura in Flowell is an innovation that offers the sale of Smac. Chile. We also created Colvias in Peru, multiple concrete applications, and a company specialized in mining people like that. Its future will be bright! Our profitability improved, with current infrastructures. Remember that we have operating profit totaling €433 million, been operating in South America for a Another highlight of the year was the up €60 million from 2018. Current while now through our subsidiary Colas market launch of the Wattway Pack, operating margin increased by 0.4 Rail, for example on the Santiago metro. a small-format Wattway solution points to 3.2%, mainly because of good that provides energy autonomy to performance for Roads in Mainland We also made several acquisitions roadside equipment. It is especially France, better profitability in North in Europe, including eleven asphalt interesting for remote areas that are America, especially in the United plants from Skanska in Poland, which not hooked up to the electricity grid. States, and a return to breakeven at now gives us a nationwide network in The product was presented at Salon Colas Rail. that country. des Maires in Paris and aroused great enthusiasm. But we still have significant potential Our international units are slowly but for improvement, especially as far as surely continuing to progress within With regard to Mobility by Colas profitability is concerned. the Group. Today, their business solutions, the ANAIS digital service accounts for 52% of total revenue. has attracted the attention of many As a whole, the transformation projects communities in France to help provide we have launched should progressively I’d like to say a word about the sale of preventive road asset management. produce results. Smac’s waterproofing activity that We have already signed a contract was finalized in May 2019. Thistrans- with the Eure-et-Loir département. action is part of our strategy to refo- ANAIS also won a Road Safety cus on core businesses at Colas: roads, Innovation Award from the French building materials and railways. Road Safety Delegation.

6 — Colas 2019 “We have significant potential for improvement. The transformation projects we have launched should progressively produce results.”

Beyond expanding its range of What is your vision of the road adaptation for autonomous vehicles, offerings, Colas continues to pave of the future? including the installation of integrated the way forward with its digital sensors in and around roadways. transformation. I would particularly F.G. Road infrastructure as we know like to highlight the work accomplished it today still has a bright future ahead The second facet of the road of the by our BIMbyCo teams, who have of it. Drones aren’t going to be flying future involves a mode of contracting also tackled CIM, for City Information around everywhere anytime soon. that is different from today’s approach. Modeling, a city or community-wide I believe in long-term contracts, with application of BIM. In 2019, Colas More seriously, the road of the future more global responsibility and more received a Silver BIM for its project has two facets. engineering. Colas was a trailblazer to redesign a roundabout near the in this area when we signed the Marseille Airport in France. Another The first facet is technological, with Portsmouth PFI in the UK in 2004. In my example of the Group’s digital new innovations to be designed and view, this type of contract represents breakthrough is the roll-out of a developed. Research should pay the future. The company is entrusted Knowledge Management platform for particular attention to the “carbon sink” with a network, in part or in whole, then employees, called ColasShare. possibilities that are inherent to roads. In upgrades and maintains it, guarantees fact, to make sure that life on the planet is a certain level of service over a defined even possible in several generations, we period, provides funding and hands over

don’t just need to reduce CO2 emissions; the network at the end of the contract, we also need to capture them. Roads and all of this with performance-based, can provide answers to this problem. not resource-based, obligations. A shift Of course, there are also innovations in this direction would allow us to use involving infrastructure design and some of our good ideas.

…

Colas 2019 — 7 Interview — Frédéric Gardès

“The Colas brand must now embody our shared culture, be stronger and more visible, so that our local profit centers can benefit from the power of our image as a renowned global group.”

…

You have expressed your desire First, we need to let people know In 2019, we began to overhaul our to implement a strong Corporate more about it, by communicating sustainable development approach. Social Responsibility policy better about our actions in CSR. In particular, we launched a broad at Colas. What is your ambition consultation across all our stakeholders in this field? Then, we must provide a stronger through several participatory structure to our approach, by setting a platforms. F.G. Since Colas was founded, a clear course at the Group level and for great number of smaller-scale CSR each geography, with the commitment 2020 will be the year we roll out a initiatives have been rolled out in to consistent actions, the formalization new CSR policy with measurable profit centers and production sites of targets to be achieved and the commitments. across our entire network worldwide. choice of performance indicators These actions are the very core of our allowing us to measure progress. Carbon strategy, biodiversity, DNA and are highly appreciated by circular economy, value chain, local communities. Lastly, we need to speed things up responsible management of job sites and get much more done. and production sites, human rights, So Colas is already doing a lot in the managerial practices… all of these field to promote corporate social CSR issues are essential to preserve issues, along with ethics and safety, responsibility. But we have to go life on the planet and to ensure social are the cornerstones of our social further, much further. harmony. As a leader, Colas has an responsibility policy. important role to play.

8 — Colas 2019 You want to strengthen What is your outlook we are deploying, particularly in our the Colas brand. What do you for 2020? industrial sectors. expect to gain from that? F.G. The business outlook is The year 2020 will be a pivotal one F.G. Colas operates in many re- quite good. for all our programs and progress gions around the world as a group, actions. On January 1, we launched but not as a brand. For example, today, Our order backlog at the end of a new organization, which should the Group is present in North America December 2019 stood at €9.2 bil- make it possible to foster stronger through companies that all operate lion, up 9% compared to the end of cross-disciplinary bridges and agility under their own names, without the December 2018. It enjoyed sharp across the Group. Colas brand appearing. growth, +21% in the international units and French overseas, boosted Beyond that, I am optimistic for the However, across our geographies, by medium-term contracts such as future. Whatever the evolution of we all share the same fundamentals: the P3 for the Cayenne Bus Rapid the markets in which we operate, local roots and close-knit ties Transit network and the CP6 frame- continuing transformations at Colas to communities, excellence and work contract for Network Rail in the will enable us to anticipate and re- expertise, humanity, etc. United Kingdom, for example. spond to the new challenges facing the world of today and tomorrow. The Colas brand must now embody In France, business should be im- our shared culture, be stronger and pacted by municipal elections while, more visible, so that our local profit in other regions, it should remain centers can benefit from the power of stable. our image as a renowned global group. Profitability should continue to im- Work on the brand was launched prove gradually, thanks to the nu- in 2019, including an update of our merous transformation projects we brand platform, which will be rolled have launched and thanks to the out groupwide from 2020. operational excellence initiatives

“Since Colas was founded, a great number of smaller-scale CSR initiatives have been rolled out in profit centers and production sites across our entire network worldwide. Today, we are laying out a stronger structure to our approach at a Group level and for each geography, with measurable commitments.”

Colas 2019 — 9

STRATEGY01

In a world that is undergoing profound demographic and geographic upheaval, mobility needs are constantly growing, while new constraints and requirements emerge. Backed by a business model proven by 90 years of success in the service of transport infrastructure, Colas is transforming and continues to grow, via four strategic axes.

Left: Extending # PUBLIC the tramway in Birmingham, TRANSPORT United Kingdom. Expanding the tramway network to accompany the city as it grows. Colas 2019 — 11 Part 1 — Strategy

MEGATRENDS

Mobility needs are constantly growing and changing

TRANSITION GROWING POPULATION TO A SERVICE URBANIZATION GROWTH ECONOMY Every week in the world, The world’s population urban populations grow Customers are increasingly will grow by 3.5 billion by 1.5 million. By 2050, 70% demanding turnkey solutions by 2100 to reach of the world’s population will live combining physical products 11 billion. in urban areas. and quality services.

STRONGER ENVIRONMENTAL DIGITAL REQUIREMENTS AND BOOM CONSTRAINTS The rise of digital technologies Issues related to climate change, is affecting all economic sectors energy transition and resource use by transforming business models, are reflected in terms organizations and production tools. of carbon footprint and circular economy.

12 — Colas 2019 COLAS’ BUSINESS MODEL

The power of a global group, the close-knit ties of a local business

ETHICS KEHOLDE AND STA RS SOCIAL FRUGALITY PROGRESS enance of aint transp nd m ort n a inf tio ra c str tru uc s tu on r C e

A DECENTRALIZED VERTICAL ORGANIZATION INTEGRATION The 800 Colas construction units form a network that is coordinated at Colas has an international network a regional level. They comprise sustainable of 3,000 production and recycling sites local teams adapted to local specificities for construction materials (aggregates, and to the completion of small bitumen emulsions, asphalt mixes, etc.) maintenance and development projects and bitumen terminals, which give (+70,000 each year). In addition, the Group upstream control over Colas Projects works alongside the value chain. the subsidiaries in the design and construction of major projects.

ENVIRONMENTAL CIRCULAR PROTECTION ECONOMY

CAPACITY FOR INNOVATION GLOBAL The Colas Campus for Science EXPERTISE and Techniques designs and develops products, techniques and solutions The 57,000 men and women that meet the challenges of of Colas are united by shared history the energy transition and new uses. and shared values. Their skills Mobility by Colas is developing and expertise are renowned worldwide a digital offering for and united by a strong brand. new uses and services for customers and users.

D e ty s li ig i n ob a m nd le ro b llo ina ut usta of solutions for s

SAFETY GLOBAL COST STAKEHOLDERS OPTIMIZATION

Colas 2019 — 13 Part 1 — Strategy

AGGREGATES: Promoting Colas among the top 10 our industrial global producers 449 3.0 Bt activities quarries, gravel pits, of authorized in operation reserves, (Colas share) i.e., 31 years of sales Controlling Colas’ two key resources: 97 Mt (Colas share) of aggregates aggregates and bitumen. sold Colas share (excluding recycled 1.5 Bt materials) of potential reserves (Colas share) 10% of recycled 70 materials compared protected species to the quantity hosted in Group of aggregates quarries produced

Figures for 2019

FOCUS 1

Vertical integration is a historical Colas is committed to performing cornerstone of the Group’s strategy. these industrial activities responsibly, particularly in terms of safety and BITUMEN: Over the years, Colas has built environmental protection (saving Colas, a major player strong positions in aggregates by resources - thanks in particular in the market developing its portfolio of quarries, to recycling -, biodiversity, limiting particularly in France, Europe, nuisances, etc.). North America and the Middle East. # Colas’ aggregate production, 1 2.5 Mt buyer of bitumen sold to third Bitumen, the starting point of bitumen storage and distribution in the world parties in the Group’s history*, is also a key activities are essential both to better Southeast Asia, Australia, resource for Colas’ businesses. control the availability and quality 5 Mt Canada Today, Colas is a major player in the of the Group’s supplies and to hone purchased per year bitumen storage and distribution its competitive edge. business in Southeast Asia, Australia, Present throughout and, since 2018, in Canada. the value chain • 1 bitumen production plant in Malaysia Vertically integrated upstream from • 69 bitumen storage terminals around the world the construction business, Colas’ • 8 bitumen tankers, 2 river barges aggregates and bitumen activities *Colas was created in 1929 to operate the Cold and 200 80-tonne railroad cars for transport are also carried out for customers Asphalt bitumen emulsion patent for road • 151 emulsion plants surfacing. Many bituminous products have been • 526 asphalt plants outside the Group. invented and patented since then. 16% of reclaimed asphalt pavement (RAP) to reuse bitumen

Figures for 2019

14 — Colas 2019 Above: Rouans Quarry in western France.

Left: Bitumen depot in Kwinana, Australia.

Colas 2019 — 15 Part 1 — Strategy

MAJOR PROJECTS: Enriching Colas expertise

Dedicated to managing major our range of projects (complex and/or large projects), Colas Projects provides expertise in studies and projects offers to support Group subsidiaries.

Relying on our expertise and Contracts secured in 2019 innovation to continually expand • Construction of tracks on the proving Colas’ offering to boost sustainable ground at the BMW Future Mobility mobility. Development Center in Sokolov, Czech Republic • Partnership contract (P3) for the design, construction, maintenance and financing of the Bus Rapid Transit Network in Cayenne, French Guiana • Widening of Highway A10 in Touraine, France

FOCUS 2

Enriching Colas’ range of offers As it works hand in hand with the mainly concerns major projects laboratories in the Group’s subsidiaries, and innovative mobility solutions. the Colas Campus for Science NEW OFFERS: and Techniques is a one-of-a-kind innovative mobility To meet the growing demand resource for research on infrastructure solutions of its public and private clients in techniques, with a focus on CSR issues. the field of complex projects, such as public-private partnerships (P3), Innovating also means anticipating 1 concessions, multi-year maintenance the Group’s future business segments, Smart Roads: contracts, and major road, airport designing and offering innovative Create new functions and railway contracts, relies on its services focused on customers’ and for infrastructure dedicated structure, Colas Projects. users’ expectations for sustainable The unit combines the Group’s resources mobility. Mobility by Colas is an 2 and expertise needed to study and activator of mobility services based Roads as a Service: perform this type of project in the on digital technologies and the use Anticipate infrastructure best possible conditions, with the road of data for communities and users. maintenance needs and railway subsidiaries concerned. Colas Projects also gives the Group Three categories of new business 3 the opportunity to capitalize on its segments and services stand out as Smart Mobility: experience, attract and train talent and, the cornerstones of Colas’ enriched Develop a new customer approach ultimately, improve risk management. offering: Smart Roads, Roads as a based on services to the users Service and Smart Mobility. Colas is also continuing to innovate to expand its range of products, techniques and solutions for sustainable mobility. Its innovative drive is aimed at providing safe, sustainable, connected and shared roads.

16 — Colas 2019 Left: P3 project for Bus Rapid Transit of Cayenne, in French Guiana.

WATTWAY: Photovoltaic road surface. FLOWELL: Luminous dynamic signaling. In 2019: In 2019: ANAIS: Digital tool for recommending - Market launch for Wattway Pack, an autonomous - First trial site for a crosswalk in infrastructure maintenance, based on energy solution for roadside equipment Mandelieu-la-Napoule, France capturing and analyzing data. (charging stations for electric bikes and - Demonstrator set up on the site of Transpolis, In 2019: scooters, connected urban furniture, CCTV a city laboratory dedicated to urban mobility - Road Safety Innovation Award, surveillance cameras, variable message signs, etc.) inaugurated in the Ain département in France from the French Road Safety Delegation - Solution chosen for a CCTV surveillance - Signing of an agreement with Sidewalk Labs, - Solution chosen by the Eure-et-Loir camera near Montpellier a subsidiary of Alphabet, to test Flowell as part département in France - Solar Impulse Label of the Quayside project in Toronto, Canada

1 2

MOOV’HUB: Mobility services platform. QIEVO: Digital tool designed to In 2019: optimize travel flows around urban Intelligent shared parking solution construction sites. rolled out under the name of Park’In In 2019: Saclay by the Paris-Saclay public Solution rolled out under the name development department for its urban REGULY by SPL Lyon Part-Dieu campus in France

3

Colas 2019 — 17 Part 1 — Strategy

SOUTH AMERICA: Continuing our launching targeted development a road business • Acquisition of Asfalcura in Chile: The company, specialized in road internationally construction, and in particular in asphalt mix production and paving, operates across Chile and also owns a 33% stake in Oil Malal, a company specializing in Establishing local leadership positions the import, processing and distribution in our current locations and expanding of bituminous products. This acquisition into new countries. is part of Colas’ development strategy in South America. The Group already operates in Chile through Colas Rail and Dust-A-Side.

• Creation of Colvias in Peru: The subsidiary specializes in mining infrastructure works for international mining operators and in medium and long-term road maintenance contracts.

FOCUS 3

Colas pursues its international More than half of Colas’ revenue is expansion through external growth generated outside of France, for the in targeted countries, which show most part in low risk countries, i.e., EUROPE: sustainable growth prospects and mainly in Europe, North America, new acquisitions moderate risk in political, legal, Australia. ethical, social, and human rights • Road assets of Skanska in Poland: issues. In the years to come, Colas has This acquisition involves 11 asphalt plants, significant development potential 130 construction machines and around 20 application teams operating around Colas’ goal is to establish and in targeted OECD countries. the country’s 11 biggest cities. Present develop local leadership positions, for more than twenty years in the western both by strengthening current Over the past 30 years, Colas has part of Poland, Colas can now extend its positions across the country, footholds and by continuing to grown about half by external growth becoming a leader in Poland’s road expand into new countries. and half by organic growth. As infrastructure sector. a result, Colas has historically • Street Sweep in Ireland: The Group also aims to benefit demonstrated a strong ability to Street Sweep is the leader in the Irish from a country mix favorable to integrate companies of all sizes planing market and a major player in road the distribution of risks. in its core businesses. sweeping. The acquisition expands Colas’ range of solutions and services in Ireland.

In 2019, Colas continued to expand • Nordurbik in Iceland: around the world by developing The acquisition of this asphalt and road works specialist in the a road business in South America north completes Colas’ coverage and making new acquisitions across of the country. Europe.

18 — Colas 2019 Left: Access road to the Quellaveco mining site in Peru.

Above: Route RN1 near Skaftafell and the Jökulsárlón glacier in Iceland.

Left: Highway A2 in Poland.

Colas 2019 — 19 Part 1 — Strategy

DIGITAL TOOLS Accelerating developed in 2019

• At the service of materials our digital activities and jobsites

• RPA (Robotic Process Automation): transformation Automation of simple, repetitive tasks according to predefined scenarios. In 2019, eight use cases Improving the quality of the Group’s were automated. • Mobile E-Dispatch: Mobile application services and its competitive edge, and that allows site managers to view offering new services. and specify the resources allocated by dispatcher to sites on a day-to-day basis.

• Serving collective intelligence

• MyColas: Digital portal that organizes and simplifies employee access to existing tools and allows new HR uses online. • ColasShare: Sharing platform allowing employees to pool their professional experience and expertise (knowledge management).

FOCUS 4

Driven by new technologies and possible to increase cross-disciplinary Big Data, the digital transformation is bridges, to better share know-how profoundly changing Colas’ activities and operational expertise, and to build BIM: and the way the company does up a wealth of global data. collaborative projects business. Digital technologies play an From BIM… First and foremost, the increasingly important role in the (Building Information Modeling) transformations concern processes organization of Colas. Historically, BIM provides a collaborative digital model that and tools: from the use of tablets, Colas is a “multi-local” group of profit helps the companies, customers and other stakeholders involved in a project to share smartphones and drones on centers with strong decision-making information throughout the project’s lifetime, construction sites and production autonomy to best serve their local optimizing not only the design and preparation sites to the development of BIM on customers. Today and tomorrow, phases, but the actual construction, maintenance and even deconstruction as well. complex projects (roads, railways, with the networking of its profit buildings, sub-soil, etc.) and CIM centers, the Group shares its • Silver BIM 2019: Awarded in the on an increasingly large scale (a experiences, expertise and data “Infrastructure” category for the upgrading of the Les Lavandes roundabout, near neighborhood, a town, a community). on a global scale. the Marseille Provence Airport in France.

Digital technologies are also paving • HoloBIM innovation (BIM Hologram): Technology used on the , France and the way to new business opportunities Hanoi, Vietnam metro projects performed by and new activities, as demonstrated Colas Rail. This innovative and original method by Mobility by Colas’ innovative allows teams to quickly check the structure and interact with objects in the model. For a mobility solutions (see pages 16-17). standard station, the control time was divided by 10, going from thirty hours to three hours. Lastly, with the rise of digital HoloBIM is a winner in the “Technical Engineering” category of the 2019 Real Estate technologies, Colas has a major lever Digital Transformation Awards. to strengthen its global foothold and enhance collective intelligence. The use of digital technologies makes it

20 — Colas 2019 Left: Use of tablets, smartphones and drones on construction sites and production sites.

… to CIM (City Information Modeling) The BIMbyCo team has expanded its skill scope to include CIM. Colas can now offer new uses and services to stakeholders in a community by using a CIM digital twin.

• In 2019, signature of a partnership with the Greater Paris Île-de-France Smart Region for the co-development of CIM uses.

Above: Upgrading project for the Les Lavandes roundabout near the Marseille Provence airport in France, which won a silver BIM award.

Colas 2019 — 21 22 — Colas 2019 SOLUTIONS02

Across the globe, in every country in which it operates, Colas provides sustainable infrastructure solutions designed to meet the needs of customers, users and all its stakeholders, by integrating environmental and social challenges: road safety, traffic flow, environmental protection, pavement preservation, cost control, etc.

Opposite: Repaving Route 908 in the Meuse #RECYCLING region of France. 75% of planed materials were recycled or reused on site. Colas 2019 — 23 Part 2 — Solutions

> UNITED STATES

Upgrading a 20-km section of Haines Highway in southeast Alaska

#SAFETY Upgrading infrastructure to current safety standards by: - widening traffic lanes and shoulders, - softening curves.

#BIODIVERSITY “We complied with strict environmental standards on this project, in particular to preserve the fish habitat in the Chillkat River, near the road.”

Steve Stichler, Haines Highway Project Manager

24 — Colas 2019 > FRANCE

Renovation and #RECYCLING upgrading of runway 3 — Installation of a recycling at Paris-Orly airport plant on site. — 200,000 tonnes of materials from the old runway 3 recycled on site and reused in the new infrastructure. — 13,000 truck journeys avoided, which would have been necessary for the removal and supply of materials.

“The project is unique: this is the first time that an airport runway has been deconstructed and rebuilt using 2/3 of the original materials.”

Thierry de Séverac, Engineering and Development Manager, ADP group

Colas 2019 — 25 Part 2 — Solutions

> VIETNAM

Construction of the 12-km long light rail metro line in Hanoi, connecting the historic center with the western end of the city

#DIGITAL INNOVATION HoloBIM technology, an alternative digital building information modelling system, embeds virtual elements (holograms) in a real environment using a dedicated headset. The method allows teams to monitor the completion of the work quickly and to interact with the objects in the model. This innovation, developed by a start-up supported by Colas Rail, has been tested on two projects around the world: metro line 3 from Hanoi and line B of the Rennes metro in France.

#PUBLIC TRANSPORT “The new metro will revolutionize how we get around. For many residents of Hanoi, taking the metro will be a first.”

Hoang Van Due, Construction Manager, section 8

26 — Colas 2019 >

CANADA #TRAFFIC FLOW #SAFETY Widening - Improved traffic conditions on of lanes on an this very busy route. 8-km section of - Reinforced user safety. Highway 404, northeast of Toronto, Ontario >

FRANCE

Engineering, construction and commissioning of a new natural gas station in Loretto, Corsica

#ENVIRONMENT After benefitting from a landscape study and a nature-focused design, these units will blend in more harmoniously with the environment.

Colas 2019 — 27 Part 2 — Solutions

> GABON #SAFETY #TRAFFIC FLOW Rehabilitation of roads - Rehabilitation & creation and networks, over a total of drainage systems (culverts, gutters, manholes, etc.). length of 86 km, in several - Partial or total repaving. districts of Libreville

28 — Colas 2019 > UNITED KINGDOM #PUBLIC TRANSPORT Construction of a new section This project is part of the drive to upgrade the tramway network in of the Birmingham tramway, England’s second largest city. between Grand Central Station and Centenary Square

Colas 2019 — 29 Part 2 — Solutions

> CANADA

Road marking in British Colombia, as part of a five-year contract

#SAFETY Because the road network is particularly exposed to bad weather, thermoplastic road marking is used to ensure better resistance over time.

30 — Colas 2019 >

FRANCE #BIODIVERSITY The project allows users Redevelopment to access the beach without damaging the of Pampelonne natural flora. Several Beach, a site protected plant species recognized as grow here, including the African tamarisk, the “remarkable forget-me-not and the natural space” purple spurge. under the French Coastline Law, including access works, sanitation and environmental safety of the dune

> FRANCE

Qualitative development for a shopping center in Cesson, near Paris

#SAFETY The construction of crosswalks in colored concrete contributes to improving the safety of users on site.

Colas 2019 — 31 Part 2 — Solutions

> THAILAND

Widening and strengthening of a 30-km section of Highway 206, near Phimai

#RECYCLING 25,000 tonnes of reclaimed asphalt pavement (RAP) from the old roadway have been recycled and 20% reused in the new infrastructure.

32 — Colas 2019 > MOROCCO #TRAFFIC FLOW #SAFETY Widening of two sections, Transforming Route RN1 for a total length of into an expressway meets several targets: 69 km, of the Route - improve traffic flow, RN 1 between Tiznit - reinforce security, - facilitate the transport and Laâyoune of goods on the pan- African route connecting Morocco to Senegal.

Colas 2019 — 33 Part 2 — Solutions

#SOCIAL INTEGRATION 7% of the hours worked devoted to social inclusion.

“Beyond what the project brings to the local economy, > FRANCE we make sure Extension of the port of Calais, that it also has including platforms, quays, a positive impact on the social networks and repaving of the ring environment. Local road connecting the port area expectations in to Highway A16 terms of inclusion are very strong.”

Arnaud Grevoz, Port of Calais 2015 Project Manager

34 — Colas 2019 >

NEW CALEDONIA #PUBLIC Building TRANSPORT a Bus Rapid This efficient, environmentally- Transit network friendly public transport in Noumea service offers an alternative to a “cars-only” mode, and responds to social needs by facilitating access to employment, education, health and culture for all the inhabitants of the island. >

HUNGARY #TRAFFIC Construction of a FLUIDITY #SAFETY new 24-km section This project should of Motorway M30 allow users to enjoy connecting Miskolc improved traffic flow and safety. It includes in north-eastern the construction of: Hungary and Košice - 21 structures, - 2 interchanges, in Slovakia - 2 rest areas.

Colas 2019 — 35 Part 2 — Solutions

Innovative solutions 3

Colas uses its long-standing expertise and breakthrough innovations to transform technological developments in the road into tangible benefits for customers, users and communities.

1. FLOWELL 3. QIEVO DYNAMIC LUMINOUS ROAD REGULATING TRAFFIC FLOW MARKING SERVING SAFETY AROUND URBAN CONSTRUCTION SITES Colas, in collaboration with CEA Tech, Mobility by Colas has developed QIEVO, imagined Flowell, a solution comprising a digital service designed to optimize panels with LEDs encapsulated in a mobility flow around construction sites in 5 multilayer substrate and connected dense urban areas. The solution offers a to an electrical network. This solution, centralized system for regulating logistics currently in the development phase, to limit nuisance (noise pollution, traffic has been designed to provide dynamic problems, etc.) and foster the acceptability road marking to reinforce road safety of the construction work. and modulate uses, making the road a shared space. 4. ANAIS PREVENTIVE ROAD ASSET 2. WATTWAY MANAGEMENT AUTONOMOUS POWER ANAIS is a system for collecting and FOR ROADSIDE EQUIPMENT analyzing data relating to the behavior In 2019, Colas began marketing the first of vehicles on the road, making it possible ever application of Wattway photovoltaic to identify alert zones on the network road surfacing, called Wattway Pack. and send maintenance recommendations This solution locally produces, supplies to network managers to help ensure and stores renewable power to make preventive road asset management. 5 roadside equipment energy autonomous. It is particularly suitable for off-grid areas and when the connection to the network is too costly. 5. MOOV’HUB INTELLIGENT PARKING In line with the principles of MaaS (Mobility as a Service), Moov’Hub is an integrated digital solution for mobility and parking services. Designed as a mobility services platform, it pools and simplifies access to mobility solutions for towns and cities, using a cross-community approach.

36 — Colas 2019 2

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Colas 2019 — 37 Part 2 — Solutions

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FLOWELL FIRST TRIAL IN REAL CONDITIONS Since March 2019, Colas has been experimenting with Flowell dynamic luminous marking on crosswalks in Mandelieu-la-Napoule, France. For this first real-life trial, 46 panels composed of LEDs were installed to test different scenarios aimed at making urban mobility safer and smoother, over a two-year period.

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ANAIS FIRST CONTRACT SIGNED Almost 7,500 km of roads run through the Eure-et-Loir département in France. The construction and maintenance of this network is managed by the department council. To deliver a better response to the traffic and safety needs of users, Colas and the Eure-et-Loir département signed a contract in 2019 to provide the community with the digital solution ANAIS.

38 — Colas 2019 >

QIEVO AN OPERATIONAL TOOL The QIEVO solution, operating under the name of REGULY, was chosen to regulate the flow of construction trucks across the Lyon Part-Dieu train station district, where around fifty major projects are scheduled until 2022. Traffic regulation areas have been set up on the outskirts of the city (see photo).

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WATTWAY FIRST WATTWAY PACK INSTALLED In Châteauneuf-le-Rouge, France, a 3-panel Wattway pack provides autonomous power to light a crosswalk. Wattway has been trialed on some forty test sections around the world, and feedback has confirmed the interest of the local autonomous energy solution that provides sustainable, competitively-priced power for equipment far from the power grid.

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MOOV’HUB INTELLIGENT PARKING WEB-APPLICATION Launched in 2019, the Park’In Saclay web application simplifies parking, boosts attractiveness and fosters development at the Paris-Saclay plateau, near Paris. The EPA Paris-Saclay is thus positioning itself as a leader in the roll out of the first innovative shared service combining mobility and digital technology.

Colas 2019 — 39

CONTRIBUTIONS AND03 RESULTS

As part of its mission, strategy and solutions, Colas creates value for all its stakeholders, be they customers, employees, suppliers, partners, local authorities, governments, NGOs, shareholders, investors, users, local residents, citizens, etc. In 2019, as part of an overhaul of its CSR* policy, Colas consulted its stakeholders via collaborative platforms.

*Corporate Social Responsibility

#SAFETY Left: Bike path in #ENERGY Saclay, near Paris. Lumicol is a glow-in-the-dark surfacing that soaks up energy when exposed to sunlight and subsequently radiates visible light in the dark, thus creating luminous marking. Colas 2019 — 41 Part 3 — Contributions and results

• THEME VALEUR 1 03 Ethics

As a subsidiary of the Bouygues IN 2019 2019 FIGURES Group, Colas’ ethical rules are set - Distribution of a repository of Colas 4,400 out in the Bouygues Group’s Code compliance procedures. employees trained with of Ethics and compliance programs the e-learning serious game (competition, conflicts of interest, - Launch of a communication campaign Fair Play in 2018 and 2019 for all Group employees worldwide. anti-corruption, financialinforma- 4,000 tion and stock market transactions, - Campaign to renew the commitments of executives, managers and members employees followed embargoes and restrictions on ex- the Applied ethics in the Procurement sector to comply and compliance training ports). These rules are also included with and promote the Group’s Code of in Colas subsidiaries’ ethics charters Ethics and Compliance programs. 800 and codes. - Ongoing expansion of training drive, managers trained in in particular with the “Ethics and applied ethical and responsible leadership since 2016 compliance” modules, the e-learning The actions undertaken by Colas to pre- serious game “Fair Play”, a program on vent corruption and promote ethical prac- Ethical and responsible leadership. tices include prevention through training,

alerting with a whistleblowing procedure - New dedicated software to map and whistleblower protection, and sanc- corruption and influence peddling tions in the event of non-compliance (dis- risks. missal, etc.).

Relations with suppliers are governed by a - Expanding the human rights risk code of ethics adapted to the Procurement mapping process. segment and including Corporate Social Responsibility. - New actions in favor of personal data In addition to a Committee on Ethics and protection (GDPR). Corporate Patronage and a Legal and Com- pliance Department, Colas relies on a net- work of Compliance Officers in the regions.

42 — Colas 2019 THEME 2 Safety

Along with Ethics, Safety is < an integral part of Colas. INNOVATIVE DYNAMIC Its goal is zero accidents. SIGNALING Flowell solution

The dynamic and Protecting employees at work and on modular Flowell marking on the road is a major focus of Colas’ human the ground improves road resources policy. The approach is based safety. on four cornerstones: respecting the rules; training and informing, designing construc- tion sites and processes safely; verifying action plans. Colas is equally involved in promoting road safety, with training in calm driving and onboard telematics in vehicles. The Group’s safety actions are also reflect- ed in road safety charters and competitions. IN 2019 2019 FIGURES

Similarly, Colas also contributes to the pre- - Launch of the One Safety approach 6.19 vention and avoidance of accidents for with DuPont Sustainable Solutions in a frequency rate (FR) infrastructure users and local residents pilot subsidiary in France. for workplace accidents around construction sites and production (best FR ever obtained sites, by performing maintenance and road - Continued roll out in Canada of the Goal by the Group)

marking and signaling, and by proposing Zero safety program, already in place in < vs 6.67 in 2018 technical solutions for ultra-skid resistant the United States, in association with mixes, colored mixes to differentiate lanes Caterpillar Safety Services. 0.057 dedicated to bicycles, buses, pedestrians, frequency rate of accidents Flowell, an innovative, dynamic modular - Continuation of virtual training to raise involving Group vehicles luminous signaling solution, and ANAIS, a awareness of the risk of accidents on (a 45% decrease service designed to anticipate maintenance jobsites, and in particular the risk of being in fifteen years)

needs for road assets. crushed. < vs 0,057 in 2018

The target to reduce accidents is shared by - Continued collaboration with Volvo 40% all Group subsidiaries, benefitting not only CE on a research project aimed at employees are trained employees, but their families as well, along optimizing safety around construction

in first aid with all road users. The same is true for first equipment (device based on artificial < vs 35% in 2018 aid training provided to Colas employees. intelligence).

- Continued deployment of the dynamic +1,900 modular luminous signaling solution new employees Flowell on trial sites to ensure safety at trained during crosswalks by enhancing their visibility “Safety Culture” days and that of pedestrians. in mainland France

Colas 2019 — 43 Part 3 — Contributions and results

THEME 3 Employment

Everywhere Colas operates, The cornerstones of Colas’ recruitment 2019 FIGURES policy are: it creates jobs locally that can - partnerships with engineering schools, not be relocated. In addition technical colleges, and other training to direct jobs, subsidiaries courses in public works, to foster relations with students, and to offer internships, also contribute indirectly work-study contracts and apprenticeships to employment through opportunities, then hiring; - actions in favor of the employer brand. local purchases. 57,000 IN 2019 employees worldwide as of December 31

- Colas sponsored the ESTP graduation < vs 58,000 in 2018 ceremony in France. 22,457 - Continued improvement of the appli- employees recruited around cant experience from online applica- the world*

tions to the monitoring of the pool of < vs 22,310 in 2018 candidates. * This number includes seasonal employees in international units (United States, Canada, Asia). - Continuation of the three major employee advocacy programs on an international scale, aimed at encour- 2,600 aging employees to disseminate the interns employer brand and job offers on pro- welcomed in France

fessional social networks. < vs 2,600 in 2018

- Continuation of the communication campaign, My Job Story, as part of the drive to strengthen the employer brand: employees are invited to share anecdotes from the site in videos shot locally and then posted on social networks. <

GRADUATE PROGRAMS A “Tour de France” for young graduates

The participants on the “Tour de France” graduate programs are young graduates with Masters degrees and higher, who are following a sixteen- month integration course across different Colas units around France.

44 — Colas 2019 THEME 4 Diversity

Colas endeavors to reflect 2. DISABILITY 2019 FIGURES The aim of the Colas disability approach the plurality of civil society is to recruit workers with disabilities, to throughout its human resources. make employees aware of this issue and to develop the use of protected adapted suppliers in collaboration with Procurement Colas’ diversity approach includes departments. four paths for progress: gender diversity, disability, social inclusion, and seniors. IN 2019 Compliance with the principle of non-dis- - Renewal of “Handi-Alternate Work crimination is regularly reaffirmed both at Study”, in partnership with Cap’emploi Group level and at a local level, by signing and Agefiph Île-de-France, in France. 10.8% agreements and charters, as well as with - Launching a communication campaign of women in the workforce speaking events and training sessions to change the way people perceive (21.4% with manager dedicated to the fight againstdiscrimi- disabilities. or employee status,

2.8% with worker status) nation. < vs 10.8% in 2018 3. SOCIAL INSERTION IN 2019 Colas conducts various actions to promote 10.4% - Deployment of an e-learning module the integration of people who have difficulty of women managers

“Living diversity together” for managers to access employment or to return to work. < vs 11.6% in 2018 to make them aware of the risks of For example: discrimination. - partnership agreements are signed locally 850 with GEIQs (employer groups for insertion and qualification) in mainland France; employees have joined the in-house gender 1. GENDER DIVERSITY - subsidiaries have participated in the diversity social network, The diversity policy at Colas aims to at- Hope project (Accommodation, orientation dedicated to fighting tract and recruit more female talent, to towards employment), developed by the sexism (nearly 60% build loyalty and to foster their careers by French Ministry of Labor, in partnership of members are men)

favoring equal treatment and promotion with the FNTP, Afpa, GEIQ and Pôle < vs 800 in 2018 between men and women, for example emploi, to respond to specific difficulties with actions to accompany women. encountered by refugees upon their arrival €1.8M in France; in Revenue with protected - in the United Kingdom, Colas Ltd. sector companies that IN 2019 works with agencies specializing in the employ the disabled - Renewal of the support programs reintegration of specific profiles; in France

put in place for female employees; - Colas Canada subsidiaries are rolling out < vs €1.7M in 2018 “Leadership for Women” training and initiatives to integrate First Nations people one-year mentoring. into their teams; - Launch of a communication campaign - in the United States, Colas Inc. has a against ordinary sexism. dedicated hotline to combat discrimination.

Colas 2019 — 45 Part 3 — Contributions and results

THEME 5 Health

In the field of health, Colas IN 2019 2019 FIGURES implements specific actions - Roll out of ExoPush on construction 20% and measures in favor of its sites, mainly in France and other of warm mix and mastic employees, in particular to European countries. asphalt in the Group’s total reduce: asphalt mix and mastic asphalt production, thereby - In June, across the Group world- reducing employee exposure wide, Safety Week 2019 dedicated to to bitumen fumes

- musculoskeletal disorders, through noise-related health risks took place. < vs 22% in 2018 preventive training or with the supply of The film made for this event won the ExoPush exoskeletons that help relieve the Golden Award at the Fimbacte Festi- 64% work of asphalt laydown teams; val, in the “Sustainable communication finishers (construction category”. machinery) equipped - exposure to noise from construction sites with bitumen fume

and workshops (mandatory wearing of extraction devices <

hearing protection), to ultraviolet light < vs 58% in 2018 (mandatory use of long sleeves and long pants), to bitumen fumes (use of warm PREVENTING NOISE RISKS Awareness week 56% asphalt instead of traditional hot mixes and planers equipped with of equipment with fume extraction devices),

Noise is hazardous above 80 dB (A). dust extraction devices to dust (use of appropriate equipment and It has harmful effects on the body, and < vs 50% in 2018 spraying, use of personal protective hearing loss is irreversible. The 2019 edition equipment) and to chlorinated solvents of Safety Week focused on the dangers of noise and the importance of wearing hearing 74% (alternatives); protection, mandatory on each Group work chlorinated solvents site (quarry, job site, plant). closed circuit

- diseases such as AIDS or malaria in used in < southern countries where Colas has a long- vs 80% in 2018 Noise-induced hearing loss can be permanent. Preserve and standing presence, e.g., Madagascar or protect your hearing. SAFETY WEEK 2019 West Africa, through health policies that 375,000 cover not only the employees but also their tonnes of noise reducing Without protection, families and villagers. your hearing will be lost forever. asphalt mix produced

< vs 394,000 tonnes in 2018 Colas is also working to reduce noise pollution related to road traffic, which can longrine.com (05/19) - Photos credits: Fotolia, Istock Fotolia, (05/19) - Photos credits: longrine.com ■ affect the health of users and residents who live near infrastructure, by designing and offering its customers noise-reducing asphalt mixes, which can cut up to 9 dB vehicle rolling noise. Hearing loss isolates you. Forever. longrine.com (05/19) - Photos credits: Fotolia, Istock Fotolia, (05/19) - Photos credits: longrine.com ■

Noise-induced hearing loss can be permanent. Preserve and protect your hearing.

SAFETY WEEK 2019

46 — Colas 2019 THEME 6 Quality of life at work and social dialogue

Colas aims to promote the quality IN 2019 2019 FIGURES

of life and well-being at work for - Colas was awarded the “Top Em- its employees, in particular by ployers 2019” certificate,for its good ensuring good work/life balance, practices in human resources and management. offering appropriate remuneration and social benefits, and creating - Continued implementation of the quality of life at work agreement the necessary conditions for signed on December 1, 2017, for all sub- dialogue. sidiaries in mainland France, opening up new ways of organizing work for em- ployees (telework, occasional remote 77% work) and also offering them services of the companies to better reconcile professional life and with more than personal and family life (tutoring, social 300 Colas Group employees around the world have platform of home services, support for

a staff representation body caregiver employees, etc.). < vs 80% in 2018

- Roll out of the My Colas employee portal in mainland France, allowing 84% greater interaction and proximity with participation in the last employees, thanks in particular to professional elections in France access to new HR services.

< vs 82% in 2018 - Conclusion of two agreements at Colas group level in mainland France, aimed at strengthening employees’ awareness of safety by revising one of the performance criteria taken into account in determining bonuses, the other designed to promoting harmo- nization and profit-sharing within subsidiaries. <

QUALITY OF LIFE AND WELL-BEING AT WORK A collaborative music video

On the occasion of Colas’ 90th anniversary, employees around the world took part in the production of a music video representing diversity, complicity and the pride of working at Colas, a true reflection of the reality in the field.

Colas 2019 — 47 Part 3 — Contributions and results

THEME 7 Fostering career paths through training and mobility

Colas’ goal is to develop 2018 FIGURES*

employees’ skills and promote *Training figures pertain to 2018, as 2019 figures are mobility, to reinforce their know- not available on printing. how, to provide them with the opportunity to have greater 37,608 responsibilities and increase their employees benefited from training actions employability, and to improve the in the year

Group’s economic performance < vs 34,300 in 2017 while anticipating changing needs 99% in the business segments. < of Group companies(1) have a formal training plan (1) Outside of France in companies

KNOWLEDGE MANAGEMENT with over 300 employees In terms of training, Colas has an The ColasShare sharing platform < 99% in 2017 ambitious investment policy, which aims Launched in 2019, ColasShare is a sharing to support the development of skills for platform, organized into business communities 115,000 all employees, regardless of their status, and available in the 15 languages spoken function or geographical location. The within the Group. training days main areas of training are related to safety Objective: allow employees to pool their provided and prevention, technical fundamentals, professional experience and expertise. < 117,000 in 2017 managerial skills and digital transformation. The Group’s training offer is gathered in IN 2019 3.7% programs such as the Colas Campus and of the payroll dedicated the five cycles of Colas University dedicated - Launch of the ColasShare knowledge to training in France

to managers. For junior managers, a special management platform, translated into < 3.9% in 2017 onboarding path has been designed. 15 Colas languages, to foster better sharing of expertise. 49.6% The mobility approach is part of talent hours of training dedicated development and career management - Continued work on studying key jobs,

to prevention and security policy. The principles and support systems intended to allow the development of < vs 48.6% in 2017 are set out in a mobility charter, internal an enriched job reference system, in or- vacancies are posted on a job exchange, der to better build career paths. and career reviews and career committees are regularly organized to better anticipate - Continuation of a “Career Review” career paths. program to collect the aspirations of employees, offer positions and thus better anticipate career paths.

- Creation of a promotion platform for “Tour de France” offers for beginner executives in mainland France.

48 — Colas 2019 •THEME VAL 8 EUR 04 Managing production sites and dialogue with local residents

Colas manages a large number of Colas also strives to contribute to the 2019 FIGURES biodi- construction materials production preservation and development of versity, through two types of action, ac- 89% sites (aggregates, ready-mix companied by a pedagogical component of economic revenue of concrete, asphalt mixes, bitumen, for the public: on the one hand, Colas materials production activities emulsions, etc.) around the world. a ctively participates in scientific research have an environmental and development and innovation in biodi- impact management tool In order to reduce the fears of versity; on the other hand, in each quarry (environmental certification

and/or Colas checklist) nuisances related to their activities or gravel pit, a remarkable animal or plant < vs 84% in 2018 species is to be hosted or a beehive is (dust, pollution, traffic, noise) installed in partnership with local experts. and the risks of impact on the 44% environment and health, Colas The second path concerns dialogue with of the economic revenue of local residents, including elected officials materials production activities

implements action plans that take have a local dialogue structure and administrations. It translates into a < vs 47% in 2018 two different paths, thus facilitating structured system of listening and consul- the societal acceptance of its sites. tation in the framework of open house 52% days, information meetings, etc., in order to advance mutual understanding. of the economic revenue of aggregate production activities deploy actions in favor of The first path is ensuring professional The problem can also concern the con- biodiversity

management of these sites, which aims at struction sites that Colas undertakes < vs 51% in 2018 improving environmental performance and around the world. QIEVO digital platform controlling impacts. In the context of envi- helps decongest areas of construction 70 ronmental certification (ISO 14001 or 6S, sites and their surroundings, and increase protected species hosted on for example) or a checklist system, each their acceptability by residents and users. the Group’s extraction sites

production site must implement improve- In addition, Colas occasionally carries out < vs 70 in 2018 ment actions, in particular with regard to restoration or protection of ecosystems in prevention, reduction or elimination of the framework of classic worksites, inte- 50 pollution, beyond simple administrative grating a component of ecological engi-

sites with beehives compliance constraints. When they are no neering, as during the restoration of the < vs 50 in 2018 longer operated, or as they progress, all confluence of the Doubs and the Loue Colas quarry and gravel pit sites are rede- Rivers in France in 2018-2019. veloped and relandscaped. 32,200 children and 1,100 teachers have benefited, over the last ten years, from an education and awareness program for the protection of biodiversity in Madagascar, thanks to the support provided by Colas to a private lemur reserve and a botanical park

< vs 32,000 in 2018

Colas 2019 — 49 Part 3 — Contributions and results

•THEME VAL 9 EUR 03 Circular economy and recycling of materials

Colas is one of the world’s FOCUS 2019 FIGURES top five recyclers, in all business Colas Île-de-France Normandie, a leading Top 5 player in the circular economy segments combined. Colas is one of the world’s top five For over thirty years, Colas Île-de-France Nor- recyclers, across all sectors As a major producer and user of building mandie has been integrating the challenges of materials, Colas recycles construction/ de- responsible waste and rubble management from 800 construction rubble and waste from other all types of construction sites as well as recovery recycling facilities industries (slag, glass, porcelain, etc.) to and reuse. around the world use as aggregates, asphalt mixes, etc. Colas thus contributes to limiting the ope- The subsidiary has developed a network of some ning of new quarries, the disposal of forty facilities (recycling platforms, sorting plat- 9.2M construction rubble and the transport of forms for professionals, inert waste storage fa- tonnes of recycled materials materials. By sourcing materials closer to cilities), which enables it to offer its customers produced, i.e., the equivalent of 10% of the total production of its sites, Colas also saves energy. its own sorting and recycling channels for waste quarries and gravel pits at Colas and cut soil that can not be recovered. (avoidance of 47 average quarries)

Colas’ approach is therefore part of the < vs 9M tonnes in 2018 broader issue of circular economies (cut- Premys, the deconstruction subsidiary of Co- ting construction costs, saving materials, las Île-de-France Normandie with locations 16% transport and fossil fuel). throughout mainland France, is a major player in this sector. For many years, it has recycled of reclaimed asphalt pavement (RAP) to reuse structural waste from buildings made up mainly the bitumen, equivalent of concrete and has also been working to opti- to the bitumen production 1 2 mize the reuse or recovery of second-line waste of a medium-sized refinery

composed of elements derived from cleaning < vs 15% in 2018 and in particular selective removal (ferrous and non-ferrous metals, IT floors, parquet floors, 7.4M wooden beams, false ceilings, furniture, etc.), so m2 of in place recycled that these become a source of raw material or

pavement equipment. < 3.3M m2 in 2018

In 2019, Colas Île-de-France Normandie recy- cled more than 1.6 million tonnes of materials, including 290,000 tonnes of reclaimed asphalt 4 3 pavement from the deconstruction of old roads. > The completion of the extraordinary project CIRCULAR ECONOMY involving the complete repair of runway 3 at Towards local autonomy in materials and zero waste Paris-Orly airport with the recycling of 300,000 tonnes of materials, including 200,000 tonnes 1. Recovery of rubble, deconstruction materials reused in the new runway, illustrates the subsid- and industrial waste. iary’s know-how in the circular economy. 2. Treatment of materials and waste. 3. Production of aggregates and asphalt mixes. 4. Construction and repair of pavement with recycled materials.

50 — Colas 2019 •THEME VAL 10EUR 04 Energy and Greenhouse Gas

Colas aims to reduce its energy TECHNICAL AND DIGITAL 2019 FIGURES SOLUTIONS consumption and improve energy 20% efficiency, as well as reduce its - Warm asphalt mix: by lowering the warm mix in the Group’s total temperature by several tens of degrees, asphalt mix and mastic asphalt carbon footprint by cutting CO2

these products can save 10% to 30% en- production emissions related to its activities. < ergy. vs 22% in 2018 - In place pavement recycling: the sav- Actions are thus initiated in a number of ings in materials and the reduction of directions: transport mean that greenhouse gas 28% emissions are reduced. of vehicles and machines equipped with consumption First, Colas relies on energy management - The recovery of reclaimed asphalt

monitoring systems and monitoring tools, particularly for asphalt pavement (RAP) for the production of < vs 25% in 2018 plant burners, equips its vehicles and ma- asphalt mixes. chines with on-board consumption monitor- - Products from the Vegeroute® range, ing systems, invests in more energy-efficient in which the petroleum components are 10.5Mt equipment, and raises awareness in employ- replaced by plant-based raw materials, of material transported ees who drive vehicles and operate machines which is a carbon sink and makes it by rail or waterway, by training them in eco-driving. possible to lower the application or equivalent to 351,000 trucks

of 30 tonnes each manufacturing temperatures. < vs 8.5M tonnes in 2018 In addition, Colas favors short circuits thanks - The use of the SEVE® eco-comparator, to its dense geographic coverage. shared by the entire profession in France and approved for use on public bids, to 113,000

When possible, Colas promotes alternatives enable customers to select eco-alterna- tonnes of CO2 equivalent to road transport (rail freight, river transport) tive solutions. of avoided greenhouse gas emissions by recycling and minimizes its dependence on fossil fuels - Wattway photovoltaic road surfacing, recovered bitumen in favor of renewable energies (wind, solar, which allows for the production of clean, from demolition materials

hydraulic). local, renewable energy for multiple uses: and pavement milling <

charging vehicles, powering information vs 111,000 TEQCO2 in 2018 Colas also offers its customerstechnical and signs, street lights, powering buildings, digital solutions that emit less CO . resale and local networks. In 2019, Colas 2 483,000 launched the energy autonomy solution, tonnes of CO2 equivalent Wattway Pack, for roadside equipment of greenhouse gas emissions not connected to the grid. avoided thanks to actions - Moov’Hub digital solution to better taken in the Group

regulate mobility flows in an urban to reduce them <

environment. vs 340,000 TEQCO2 in 2018 40 Wattway trial sites in France and abroad since 2016

< vs 30 in 2018

Colas 2019 — 51 Part 3 — Contributions and results

THEME 11 Financial data

REVENUE BREAKDOWN CURRENT In billions of euros OF REVENUE BY OPERATING PROFIT BUSINESS SEGMENT In millions of euros In percentage

433 13.2 13.7 373 48% 49%

2018 2019

NET PROFIT ATTRIBUTABLE 72% TO THE GROUP 52% 51% Roads In millions of euros 2018 2019 18% 261 Building Mainland France and French overseas materials 227 departments and regions. International, including 8% French overseas territories. Railways 2% Other activities

2018 2019

Revenue: Current operating profit: Net profit attributable to the Group: Consolidated revenue for 2019 amounted to Current operating income in 2019 amounted After non-current operating expenses of €13.7 billion, up 4% compared to 2018 (+5% to €433 million compared to €373 million in €28 million, related to the ongoing decom- at constant scope and exchange rates). 2018, an increase of €60 million. This increase missioning of the Dunkirk refinery site and Headway in mainland France’s road activity is essentially due to continued good perfor- streamlining costs, compared to €31 million and in Colas Rail’s railway business helped mance for the road segment in mainland in 2018 related to the dismantling of this offset the impact of the sale of Smac’swater- France, improved profitability in NorthAmeri- site and the exceptional purchasing power proofing business. Activity was up 2% in ca, especially in the United States, as well as bonus in France, a net cost of financial debt France (+9% at constant scope) and up 5% in the return to the breakeven point at Colas Rail. at €33 million, up by €2 million, income tax the international units (+1% at constant scope The current operating profit margin was 3.2% expense of €141 million, up €45 million, a and exchange rates). With 52% of the total in 2019 compared to 2.8% in 2018, i.e. +0.4 share of income from joint ventures and revenue, the international units continue to points. associates amounting to €43 million, up grow. €15 million due to the improvement in Tipco Asphalt’s contribution, net profit attribu- table to the Group totaled €261 million in

52 — Colas 2019 SHAREHOLDERS’ EQUITY, NET DEBT SHAREHOLDER DIVIDEND PER In millions of euros BASE SHARE as of December 31, 2019 In euros Dividend paid out in a given year for results for previous year 2,797 2,909

6.40(1) 5.55

Shareholders’ equity Net debt -367 -475

2018 2019 2018 2019 2019 2020

(1) If approved by the Annual General NET CASH FLOW, NET CAPITAL EXPENDITURE, Shareholders’ Meeting of April 22, 2020 FREE CASH FLOW AFTER WCR In millions of euros 96.6% 2.6% YIELD Bouygues Public PER SHARE In percentage 780 Net cash flow 0.8% Dividend paid out in a given year/ Net capital 698 FCPE Colas share price at previous year end expenditure Free cash flow 4.5(1) after WCR 4.0

321 341 288

46 2019 2020

(1) If approved by the Annual General 2018 2019 2018 2019 2018 2019 Shareholders’ Meeting of April 22, 2020.

2019 compared to €227 million in 2018, up Net cash flow, net capital expenditure, paid in 2020 for the 2019 fiscal year will €34 million compared to 2018. free cash flow (after working capital amount to €6.40 (i.e. a distributed amount requirements): of €209 million(1), equal to 80% of the net Shareholders’ equity, net debt: In 2019, net cash flow amounted to profit attributable to the Group, compared Shareholders’ equity amounted to €780 million, up €82 million compared to to the dividend paid in 2019 [€5.55 per €2.9 billion as of December 31, 2019 com- 2018 (€698 million). Net capital expendi- share]). pared to €2.8 billion as of December 31, ture totaled €321 million, compared to (1) Based on 32,654,499 shares as of December 31, 2019. 2018. Net debt at the end of December €288 million in 2018. As a result, free cash

2019 was €367 million against net debt of flow after working capital requirements Yield per share: €475 million at the end of December 2018, improved by €295 million, to €341 million in Based on the price as of December 31, 2019, a €108-million net debt decrease. 2019. the Colas share offers a yield of 4.5%(1), up 0.5 points from 2019. Dividend per share: (1) Subject to approval by the Annual General Shareholders’ If approved by the Annual General Sharehol- Meeting of April 22, 2020. ders’ Meeting of April 22, 2020, the dividend

Colas 2019 — 53 Governance — Chief Executive Officer, Board of Directors, Strategic Committee, Executive Committee

GOVERNANCE

CHIEF EXECUTIVE OFFICER as of December 31, 2019

Frédéric Gardès

BOARD OF DIRECTORS as of December 31, 2019

DIRECTORS

Olivier Roussat Chairman of the Board of Directors

Olivier Bouygues Société Bouygues Martine Gavelle (2) Director Permanent Director representative: Colette Lewiner (2) Philippe Marien(1) Arnauld Van Eeckhout (3) Director Director Catherine Ronge (2) Director

(1) As of February 18, 2020, the permanent representative of the Bouygues Group is Pascal Grangé. (2) Independent director. (3) Arnauld Van Eeckhout, previously Non-Voting Director of Colas SA, was co-opted on October 1, 2019 as Director, subject to approval by the Annual General Shareholders’ Meeting on April 22, 2020.

STATUTORY AUDITORS

Mazars PricewaterhouseCoopers Audit Thierry Colin Statutory Auditor Statutory Auditor Substitute

54 — Colas 2019 2 9 12 6 13 7 3

15 11 5 1 10 4 8 14

STRATEGIC COMMITTEE as of January 1, 2020

Frédéric Gardès 1 Éric Haentjens 2 Thierry Méline 3 Philippe Tournier 4 Chief Executive Officer General Secretary General Manager Human Resources France & Indian Ocean Manager

EXECUTIVE COMMITTEE as of January 1, 2020

Frédéric Gardès 1 Chief Executive Officer

Benoît Chauvin 5 Christophe Da-Poïan 6 Louis Gabanna 7 Francis Grass 8 Business Deputy General General Manager General Manager Development Manager Bitumen EMEA, Railways, Manager Equipment & Materials Water & Energy Delphine Lombard 10 Transport Éric Haentjens 2 Thierry Le Roch’ 9 Corporate General Secretary General Manager Communication Thierry Méline 3 USA & Brand Manager General Manager Fabrice Monnaert 11 France & Indian Deputy General Jacques Pastor 12 Emmanuel Rollin 13 Ocean Manager General Manager Group General Major Projects Asia/Pacific Counsel & Chief Frédéric Roussel 14 Compliance Officer General Manager Bernard Sala 15 Philippe Tournier 4 Canada Deputy General Human Resources Manager Manager Sustainability & Innovation

Colas 2019 — 55 Colas, 1 rue du Colonel Pierre Avia, 75730 Paris Cedex - France. Tel.: +33 1 47 61 75 00. Fax: +33 1 47 61 76 00. www.colas.com. Colas, a French Société Anonyme with share capital of 48,981,748.50 euros. RCS Paris 552 025 314. Photos credits: Sébastien Arbour (p. 30), Nagy Balsz (p. 35), Sylvain Barthélemy (p. 31), Éric Beaudenon / Capa Pictures (p. 28), Joachim Bertrand (p. 21), François Bouriaud (p. 39), Pascal Calmettes (p. 38), Chump (p. 25), Hervé Fabre (p. 38, 39, 43), Factory Santelli (p. 41, 46), Arnaud Février (p. 34), Julien Gazeau (cover), Graphix Images (p. 19), Daryl Hathcoat / Blue Iris Photography (p. 24), Maher Hayfa (p. 32), France Keyser (p. 26), Manuel Lagos Cid (p. 25), Julien Lutt / Capa Pictures (p. 7, 55), Photothèque Colas (p. 2, 15, 17, 19, 21, 22, 27, 31, 33, 35, 39, 44, 47), Richard Weston (p. 2, 10, 29), Laurent Zylberman / Graphix Images (p. 2, 40). Design and production: (ref.: RACO019). This document is printed by a printer with the French label “Imprim’Vert” on a FSC-certified paper from sustainably managed forests.

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Colas Group