Colas 2011

COLA_1202350_PORTFOLIO_GB_couv.indd 1 19/03/12 17:46 Through the artistic eye of Antoine Poupel, Colas pays tribute to its 66,000 talents working around the world on all fi ve continents.

COLA_1202350_PORTFOLIO_GB_couv.indd 1 19/03/12 17:46 1 PROFILE 2 INTERVIEW WITH THE CHAIRMAN 6 COLAS AROUND THE WORLD 8 CONSOLIDATED KEY FIGURES 10 COLAS SHARE 12 SIMPLIFIED FINANCIAL STATEMENTS 15 BUSINESS REPORT 42 THE YEAR IN REVIEW 78 COLAS GROUP MANAGEMENT

Leader in the construction and maintenance of transport infrastructure

Backed by a workforce of 66,000 people operating out of Colas is also involved in specialized complementary lines 800 autonomous work centers and 1,400 production sites of business, which means that the Group can propose a located in some 50 countries on 5 continents, Colas is a wide range of products and services to its clients, both leader in the fi eld of construction and maintenance of public and private: manufacturing and installation of safety transport infrastructures, urban development and recrea- equipment, road marking, signing and traffi c control/ tional facilities. In 2011, with 112,000 projects worldwide, the access management systems; production and application Group posted consolidated revenue at 12.4 billion euros. of waterproofi ng products, siding, roofi ng and installation Roads represent nearly 80% of the Group’s business, of photovoltaic panels and membranes; laying of pipes for including the construction and maintenance of roads and the transport of fl uids; civil engineering; building (new highways, airfi eld runways and aprons, ports, industrial construction, rehabilitation, deconstruction); design and sites, logistics platforms, urban networks, reserved-lane engineering of large-scale complex railway projects, con- public transport systems, bike paths, sports facilities, and struction, renewal and maintenance of railways for con- more. In addition, Colas does business in activities ventional lines, high-speed trains, tramways, subways, upstream from the construction sector involving the pro- including electrifi cation and signaling, railway freight duction and recycling of materials (aggregates, emulsions transport; services and concessions. and binders, asphalt concrete, ready-mix concrete) that it Safety, quality, ethics, environmental protection, innova- uses internally or sells to third parties, thanks to its dense tion, diversity, training, rigor, fi nancial strength: these are international network of quarries, gravel pits, emulsion the keys that allow Colas to pursue long-term profi table plants, asphalt plants, concrete plants. The Group oper- growth in the framework of responsible development. ates in the production, storage, transformation and distri- Colas is paving the way forward, serving people, freedom, bution of bitumen as well, backed by two refi ning units and higher standards of living and enhanced economic devel- a network of depots. opment.

Colas Group 1

COLA_1202350_PORTFOLIO_GB.indd 1 16/03/12 10:21 Interview with HERVÉ LE BOUC Chairman and CEO of Colas

In a sluggish economic environment, In such a sluggish economic and fi nancial Colas recorded solid business in 2011, environment, how do you explain the fact that Colas posted 6.4% growth in revenue compared to last year? with revenue at 12.4 billion euros, up 6.4% First, it must be said that the majority of our companies against 2010. The Group share of net benefi ted from favorable weather conditions last year, profi t was also up 50% at 336 million except for North America. Our teams were able to work euros. Colas has thus proved its ability all year long. to react and to adapt after its slightly The increase in revenue can also be explained by rising construction costs, meaning raw materials, energy and disappointing performance in 2010. bitumen, and by external growth, which brought in an additional 250 million euros. But most importantly, all of the Group’s businesses are expanding, except for the Pipes and Building sectors. A major drive was undertaken from a commercial stand- point to target and select bids and to broaden our cus- tomer base, enabling the Group to secure a great number of contracts throughout the year. Our companies have thus proved that their businesses are well anchored in their local markets and that Colas’ business model based on vertical integration is still as relevant as ever, espe- cially in North America. Lastly, certain markets are growth oriented, for example Railways, Waterproofi ng, Canada and Australia.

2 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 2 16/03/12 10:21 “In 2011, Colas got back on the road forward.”

So disparities remain amongst the geographic zones? We undertook a number of actions to help adapt, The year was once more witness to geographic contrasts improve and transform, especially in central Europe of in terms of revenue trends. course, but also throughout the Group’s network, in order to boost productivity. This is how we managed to Central Europe saw its fi gures slump even further, a drop cut our losses in central Europe by 78 million euros. that was in line with forecasts, due to shrinking public investment in the region, our strategy to focus on profi t- Operating income is up 49%. Unlike 2010 when 52 million ability instead of volume and our decision to cancel the euros in non-current expenses had to be recognized, no Highway A2 contract in Romania, on which the Group expenses of this nature aff ected the year. had run into too many contractual issues. The Group share of net profi t amounted to 336 million In the French overseas departments, business is down euros in 2011, a 50% increase, which means that our net slightly. profi t margin now totals 2.7% of revenue. 2011 was a lackluster year for Africa and the Indian Ocean. Remember that these fi gures were recorded in markets in which prices and volumes were, globally speaking, Northern Europe was up slightly. rather sluggish, so we can say that our goal for 2011 has North America performed well, despite a tougher eco- been reached, even if there is still room for progress. nomic environment in the United States and particularly harsh weather up to the month of July. Complex contracts like PPPs, concessions, MACs, etc. Business was also good in mainland France. Conven- are the latest trend. Are they an important part of tional road business was down slightly, but the market your strategy? Do you think this type of contract will remained buoyant thanks to a large number of public become increasingly popular? transport and urban development projects. In 2011, we secured some very interesting contracts, both In Asia and Australia, our business is growing at a fast in France and around the world. pace. In France, we won the concession project for High- way A63 and work was launched last September. We Last year, you said that your number one target for also secured the public-private partnership agreement Colas in 2011 was to improve profi tability. Did you for the Vichy bypass, along with the PPP for public reach your goal? lighting and street networks in Le Plessis-Robinson, The Group’s sharp improvement in profi tability is defi nitely near Paris, and the long-term high-energy performance the highlight of 2011. public lighting and traffi c light contract for the City Colas recorded good operating income fi gures with of Paris. current operating income up 28% at 466 million euros. Elsewhere around the world, Colas Rail is slated to per- A performance like that is a nice reward for all of our form a design-build contract for the entire transport sys- determined eff orts. We carefully, resolutely implemented tem on an extension of the light metro in Kuala Lumpur, a strategy that focuses on profi t margins instead of volume. Malaysia. In Great Britain, a new long-term railway track

Colas Group 3

COLA_1202350_PORTFOLIO_GB.indd 3 16/03/12 10:21 maintenance contract was won for the southwest region, and reducing bitumen fume exposition on our jobsites. in addition to a series of long-term road maintenance Our target is to speed up the replacement of conventional contracts currently underway. hot mix by warm mix. Successes like these clearly refl ect Colas’ technical, com- mercial, legal and fi nancial expertise in complex con- Bitumen is a raw material that is essential to your tracts. These complex contracts are an integral part of business. In the wake of a series of refi nery closures, the Group’s strategy, because they are complementary are you worried about supply issues in France to more conventional service-oriented businesses, and and around the world? this will help better satisfy our customers’ needs. In the last few years, we had anticipated these shutdowns The way in which these markets will evolve depends on and have studied a number of solutions to secure our whether or not decision-makers decide to focus on out- supply in France and around the world. sourcing infrastructure management, and on whether or not investors and bankers can fi nance the deals. We have built up a vast network of bitumen depots and storage terminals, for example in Blaye, France, and notably in North America. Since 2007, we have been At Colas, responsible development is also a key point operating, via our Thai subsidiary, a bitumen refi nery in in your corporate strategy. How much headway was Kemaman, Malaysia, and, in mid-2010, we acquired the made in 2011? Société de la Raffi nerie de Dunkerque (SRD), in France, Responsible development plays a major role in Colas’ which helps secure supply for our road subsidiaries in strategy, hinging around three key focal points that France and in northern Europe. describe the Group’s driving forces: Entrepreneurial, Pio- The recent refi nery closures are proof if needed that neering and Innovative, Responsible. The 66,000 people Colas’ bitumen strategy is accurate. who work at Colas must develop responsibly, from a human, environmental and societal viewpoint, a prerequi- site that lies at the very heart of our strategies and our What is the outlook for Colas in 2012? Are you afraid, actions. It gives meaning to what we do and helps us per- in particular, that some of your customers may have form better. a hard time fi nancing their projects and that this could impact the Group’s activity? Our responsible development policy focuses on the dynam- ics of continual improvement. This is how we have made Our work-on-hand at the end of December 2011 totaled steady progress over the last fi fteen years in safety in the 6.5 billion euros, 5% higher than at the end of December workplace and on the road. The pause in progress recorded 2010. The high level of work-on-hand allows the Group to in 2011 must not cloud our overall good performance. On move smoothly into the beginning of the new year. the contrary, it should encourage us to try even harder, More good news: a consortium including Colas Rail and which is the message I sent on to all our managers. Colas Midi-Méditerranée has been selected as preferred As for the environment, we are quite pleased to see a 20% bidder for a twenty-fi ve-year PPP contract for the Nîmes- increase in the use of reclaimed asphalt pavement or RAP, Montpellier railway bypass. Financial closing should be which helps save both materials and energy. Warm mix ensured during the fi rst half-year. production has doubled, which has a threefold set of Market trends for Colas’ business do remain diffi cult to advantages: saving energy, reducing greenhouse gases forecast.

4 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 4 16/03/12 10:21 France has a number of major projects in the making or Most of all, I am a true believer in our strong-willed policy being launched. Local authorities also have many plans focusing on margins instead of volume that we will involving public transport infrastructure, meaning tram- continue to roll out in 2012. I also believe in our ability ways or reserved-lane bus networks, as well as urban to continue to expand, while remaining selective in our development, road and railway maintenance, as conven- choices. tional contracts or as PPPs. Nonetheless, these projects Moreover, Colas enjoys a number of strong suits, in par- will only be fi nalized if decision-makers are able to ticular a broad geographic spread of its operating units, fi nance them. a business model based on vertical integration, a solid Colas companies in North America should continue to fi nancial situation, and the technical, legal, and fi nancial enjoy upbeat business trends in Canada and should ben- skills it needs to be competitive on all types of markets. efi t from a recovery – albeit slight – of the US economy. Backed by its 66,000 Talents who work on all fi ve conti- In northern Europe, outlook for business remains stable. nents, Colas will continue to pave the way forward, Forecasts are more uncertain in central Europe, but boosted by the medium and long-term vision and I would like to remind you that our sole target in this zone strate gy that have made the Group so successful. is to reach the breakeven point. In Africa and the Indian Ocean zone, business should be stable or slightly growth-oriented. Asia and Australia will continue to operate in a dynamic environment. As for the Group’s specialized lines of business, the mar- kets for Safety and signaling and Waterproofi ng should be similar to what we observed in 2011. For the Pipeline sector, we will have to wait until 2013. Last but not least, outlook for Railways is bright, both in France and else- where around the world.

What kind of mood are you in as 2012 gets off to a start: concerned or confi dent? When faced with an uncertain economic and fi nancial environment, you have to be both concerned and confi - dent. You have to remain cautious, and at the fi rst sign of danger, react. As such, I have complete confi dence in the agility of the Colas workforce. In 2011, our people showed us just how well they could adapt and react. Colas companies and profi t centers, for a vast majority, are now all in good working order, and have improved their competitive edge.

Colas Group 5

COLA_1202350_PORTFOLIO_GB.indd 5 16/03/12 10:21 Colas AROUND THE WORLD

NORTH AMERICA

Canada EUROPE Alberta British Columbia Austria NORTH AMERICA Northwest Territories Belgium Quebec Croatia 19% Saskatchewan Czech Republic Yukon Denmark France United States Great Britain Alabama Greenland Alaska Hungary Arkansas Iceland California FRENCH OVERSEAS Ireland Colorado Isle of Man DEPARTMENTS Florida Monaco Georgia 3% Netherlands Illinois Poland Kansas Romania Kentucky Slovakia Maine Slovenia Maryland Switzerland Michigan Missouri FRENCH Nebraska OVERSEAS Nevada DEPARTMENTS New Jersey New Mexico Caribbean and AFRICA, INDIAN OCEAN, New York French Guiana ASIA, OCEANIA, NEAR North Carolina French Guiana AND MIDDLE EAST Ohio Guadeloupe Oklahoma Martinique North Africa Pennsylvania Morocco Indian Ocean South Carolina Mayotte West and Central Africa South Dakota Reunion Island Benin Tennessee Gabon Texas SOUTH Ivory Coast Virginia AMERICA Togo West Virginia Wyoming Venezuela Egypt

6 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 6 16/03/12 10:21 EUROPE (EXCLUDING FRANCE) 15% MAINLAND FRANCE 55%

AFRICA, INDIAN OCEAN, ASIA, OCEANIA, NEAR AND MIDDLE EAST Near and Middle East 8% Oman Saudi Arabia Turkey

Indian Ocean, East Africa, southern Africa, Pacifi c Rim Asia, Australia Comores Australia Djibouti Cambodia Kenya China Madagascar India Mauritius Indonesia Namibia Malaysia New Caledonia South Korea South Africa Thailand Zambia Vietnam

Revenue per geographic zone is expressed in percentage of total revenue.

Colas Group 7

COLA_1202350_PORTFOLIO_GB.indd 7 16/03/12 10:21 Consolidated KEY FIGURES

12.8 12.4 11.7 11.6 11.7

53% 56% 54% 54% 55% REVENUE The Group’s consolidated revenue totaled 12.4 billion euros, up 6.4% from 2010 (+5.1% with an unchanged scope of business and comparable exchange rates), 47% 44% 46% 46% 45% despite a sluggish economic and fi nancial environ- ment. Business was boosted by good weather, except for North America during the fi rst half-year. 2007 2008 2009 2010 2011 In billions of euros Mainland France International and French overseas departments and territories

682 638 541 466 CURRENT OPERATING INCOME 365 Current operating income totaled 466 million euros, up 28% against 2010 thanks to a strong-willed strategic drive to favor profi t margin over volume, and to streamlining and improvement actions notably in central Europe but also throughout the Group worldwide. In addition, Colas continued to focus on targeted growth. Current operating profi t margins amounted to 3.8% of revenue, up 0.7%. 2007 2008 2009 2010 2011

In millions of euros

BREAKDOWN OF BUSINESS BY SECTOR

Road works Sales of materials(1) Civil engineering, Pipes and mains 62% Waterproofi ng 3% Railways 3% Safety and signaling 5% 16% Building 5% 6% (1) Including sales of refi ned oil products.

8 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 8 16/03/12 10:21 474 490

387 336 NET PROFIT (GROUP SHARE) 224 In 2011, there were no non-current expenses, unlike 2010 when 52 million euros were posted. The Group share of net profi t totaled 466 million euros, a sharp 49% increase over 2010. The Group share of consoli- dated net profi t rose to 336 million euros, up 50% against the end of December 2010. Profi tability is now at 2.7% of revenue. 2007 2008 2009 2010 2011

In millions of euros

347

NET CASH POSITION/NET DEBT The Group’s positive net cash position at the end of 117 December 2011 totaled 28 million euros, compared to net debt of 57 million at the end of December 2010, i.e., an 85-million euro improvement over the pre- 28 vious year thanks to a drive to manage cash, despite shorter supplier payment deadlines in France that (6) (57) have boosted working capital requirements.

2007 2008 2009 2011 In millions of euros 2010

1,184 1,099 1,066 965 CASH FLOW FROM OPERATIONS/ 915 NET INVESTMENTS/FREE CASH FLOW 814 The Group focused its cautious investment policy on 658 industrial units and on reinforcing its market share in the materials sector via external growth. Net invest- 484 500 496 426 ments were reined in at 496 million euros, including 368 327 100 million euros earmarked for external investment. 264 225 This strategy enabled the Group to generate free cash fl ow at 327 million euros. (1) Free cash fl ow = cash fl ow from operations less all net fi nancial debt, taxes and net investments. 2007 2008 2009 2010 2011

In millions of euros Cash fl ow from operations Net investments Free cash fl ow(1)

Colas Group 9

COLA_1202350_PORTFOLIO_GB.indd 9 16/03/12 10:21 Colas SHARE

2.5% 0.9%

SHAREHOLDER BASE ON DECEMBER 31, 2011

Bouygues 96.6% Public Colas Employee Savings Plan

SHARE PRICE In euros

400 375 350 325 300 275 250 225 200 175 150 125 100 75 50 25 0

January 2006 January 2007 January 2008 January 2009 January 2010 January 2011 January 2012

Quotation: Euronext Paris France Compartment A, continuous market, non SRD. ISIN Code FR000121634. Identification codes: Reuters COLP.PA, Bloomberg RE.FP.

KEY FIGURES FOR COLAS SHARES

In euros 2007 2008 2009 2010 2011 Highest 363.99 309.50 198.78 194.00 169.00 Lowest 225.60 121.15 124.45 128.25 98.50 Price on December 31 309.50 142.00 174.49 144.94 103.00 Market capitalization as of December 31 (in billions of euros) 10.06 4.82 5.69 4.73 3.36 Average daily transactions (in number of shares) 911 1,460 689 948 861

10 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 10 16/03/12 10:21 14.56 15.06 8.50 8.75 7.26 (1) 11.86 6.75 10.28 6.30

6.86

2007 2008 2009 2010 2011 2008 2009 2010 2011 2012 In euros per share In euros per share (1) If approved by the Annual General Shareholders’ Meeting on April 17, 2012.

NET PROFIT PER SHARE DIVIDEND PER SHARE (GROUP SHARE) Paid out in a given year in respect of the previous year’s results In the wake of fi scal 2010 and its accumulation of unfavorable current and non-current events, the If approved by the Annual General Shareholders’ action plans implemented by the Group enabled a Meeting on April 17, 2012, the dividend distributed in notable improvement in profi tability in 2011. 2012 for fi scal 2011 amounts to 7.26 euros, up 15% against the dividend distributed in 2011 for fi scal 2010, for a total of 237 million euros.

7.05(1) 6.16

4.35 SHAREHOLDER’S INFORMATION 3.87 Calendar 2.75 Interim results: August 28, 2012 Annual Shareholders’ Meeting: April 17, 2012 Payment of dividend: May 2, 2012 Information sources Annual Report 2008 2009 2010 2011 2012 Web site: http://www.colas.com

In percentage To contact Colas (1) If approved by the Annual General Shareholders’ Meeting on April 17, 2012. Shareholders and Investors Relations Tel.: (33)1 47 61 76 73 YIELD PER SHARE E-mail: fi [email protected] Dividend paid out in a given year/year-end share price of previous year Share services As an issuing company, Colas provides share Colas’ yield per share for 2012 totals 7.05%, if the services and fi nancial services. dividend is approved by the Annual General Share- holders’ Meeting on April 17, 2012.

Colas Group 11

COLA_1202350_PORTFOLIO_GB.indd 11 16/03/12 10:21 Simplifi ed FINANCIAL STATEMENTS

Consolidated income statement

in millions of euros 2011 2010 Revenue 12,412 11,661 Profi t from operations (current) 466 365 Extraordinary items –(52) Profi t from operations 466 313 Interest income (expense) (24) (30) Other fi nance income (expense) 3 (7) Provision for income taxes (163) (122) Income from associates 59 69 Profi t for the year 341 223 Of which: minority interest 5 (1) Of which: equity holders of the parent 336 224

Consolidated cash fl ow statement

in millions of euros 2011 2010 Cash from operations before tax 915 814 Income tax paid (96) (171) Changes in current assets and liabilities (41) (109) Cash fl ows from operating activities (a) 778 534 Operating capital expenditures (net) (393) (452) Acquisitions and disposals of subsidiaries (45) (3) Other investing activities 7 (2) Cash fl ows from investing activities (b) (431) (457) Change in equity (3) 2 Dividends paid (209) (224) Net variation from borrowings 20 (19) Interest income (expense) and miscellaneous (24) (30) Cash fl ows from fi nancing activities (c) (216) (271) Exchange diff erences and other (d) (1) 13 Net change in cash and cash equivalents (a+b+c+d) 130 (181) Net cash at the beginning of the year 202 383 Net cash and cash equivalent at end of the year 332 202

12 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 12 16/03/12 10:21 Consolidated balance sheet

in millions of euros 2011 2010 Property, plant and equipment 2,524 2,438 Intangible assets 90 87 Goodwill 450 445 Investments in associates 437 422 Other fi nancial assets 225 174 Deferred tax assets 155 138 Non-current assets 3,881 3,704 Inventories and receivables 3,910 3,548 Cash and fi nancial instruments 464 424 Net current assets 4,374 3,972 Total assets 8,255 7,676

Capital and reserves 2,494 2,345 Minority interests 34 30 Equity 2,528 2,375 Long-term debt 242 200 Provisions 750 750 Deferred tax liabilities 110 95 Non-current liabilities 1,102 1,045 Trade and other payables 4,431 3,975 Current portion of long-term debt 48 50 Bank overdrafts and fi nancial instruments 146 231 Current liabilities 4,625 4,256 Total equity and liabilities 8,255 7,676

Colas Group 13

COLA_1202350_PORTFOLIO_GB.indd 13 16/03/12 10:21 BOARD OF DIRECTORS as of April 17, 2012(1)

Hervé Le Bouc Chairman and Chief Executive Offi cer

Christian Balmes Director

François Bertière Director

Olivier Bouygues Director

Louis Gabanna Director

Thierry Genestar Director

Jean-François Guillemin Director

Jacques Leost Director

Colette Lewiner Director AUDITORS Philippe Marien Permanent Representative KPMG SA of Bouygues SA Statutory Auditor

Thierry Montouché Mazars Director Statutory Auditor

Jean-Claude Tostivin François Caubrière Director Substitute

Gilles Zancanaro Thierry Colin Director Substitute

(1) If approved by the Annual General Shareholders’ Meeting on April 17, 2012.

14 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 14 16/03/12 10:21 15 2011 16 BUSINESS 25 TECHNIQUES, RESEARCH AND DEVELOPMENT 28 RESPONSIBLE DEVELOPMENT 40 STRATEGY 40 STRENGTHS 41 OUTLOOK

Business Report

2011

In 2011, against a global backdrop that has never- Noteworthy disparities exist in revenue trends theless remained dominated by the economic and throughout the geographic zones where the Group fi nancial crisis, Colas was able to post solid busi- operates. Business in mainland France, North ness fi gures, with revenue at the end of December America and Asia/Australia enjoyed growth and 2011 totaling 12.4 billion euros, up 6.4% over 2010 northern Europe is up slightly (excluding sales of (+5.1% with unchanged exchanged rates and scope refi ned products). Africa, the Indian Ocean and of business). The Group share of net profi t increased North Africa have dropped off somewhat, along a steep 50% at 336 million euros, compared to the with the French overseas departments. Central end of December 2010 (224 million euros). Current Europe has slumped sharply, as expected. operating income is up 28% at 466 million euros (365 million euros at the end of December 2010), Compared to last year, the breakdown of revenue thanks to a strong-willed strategy that has focused remains unchanged. Sales in France, including the on profi t margin over volume, to streamlining and French overseas departments, account for 58% of improvement actions in central Europe in particular total revenue at 7.2 billion euros. Outside of France, as well as throughout the Group’s network, and to including French overseas territories, revenue ongoing targeted acquisitions. As there were no amounted to 5.2 billion euros, i.e., 42% of total reve- non-current expenses in 2011, operating income nue. When combined, Europe (including France) was up 49% at 466 million euros against 313 million with 9.1 billion euros, and North America with 2.4 bil- euros at the end of December 2010. Favorable lion euros account for 11.5 billion euros, i.e., 92% of weather in mainland France also boosted the total revenue. Group’s business fi gures in 2011.

Colas Group 15

COLA_1202350_PORTFOLIO_GB.indd 15 16/03/12 10:21 The Group kept tight control over investments. reserved-lane public transport, industrial and com- After deduction of asset sales, the net total of mercial facilities, roads and main networks for real- investments was 496 million euros, only slightly estate projects including individual homes and under the 500 million euros invested in 2010. apartments buildings, urban development projects External growth investments (shares and assets) (pedestrian zones, city squares), recreational ameni- amounted to 100 million euros (63 million in 2010). ties (sports facilities, automobile circuits, bike paths) Net investments in tangible and intangible assets and environmental protection (retention ponds, mostly involving the renewal of plant and equip- landscaping, windpower parks). This activity ment, totaled 401 million euros, compared to includes small-scale civil engineering and drainage 437 million euros in 2010. work often linked to road construction and mainte- Free cash fl ow (cash fl ow from operations less net nance projects. The business is also backed by an fi nancial debt, taxes and net investments) totaled upstream network that produces aggregates and 327 million euros (225 million in 2010). materials mainly designed for road works (asphalt mixes, binders, emulsions, ready-mix concrete), The Group continued to focus on controlling cash products that are used by the Group or sold to third fl ow. Despite even shorter supplier payment dead- parties. lines in France that have led to an increase in work- ing capital requirements, the net cash position at In mainland France, Colas operates in the Roads the end of December 2011 amounted to 28 million sector via a network of 16 regional subsidiaries euros, compared to consolidated net debt of located throughout the country. 57 million euros at the end of December 2010, i.e., an improvement of 85 million euros during the fi s- SPECIALIZED ACTIVITIES cal year. (28% of total revenue in Mainland France) As of December 31, 2011, Colas’ fi nancial situation is • The Building sector comprises conventional con- solid, with a Group share of shareholders’ equity struction business located exclusively in the Greater prior to dividend distribution of 2,494 million euros, Paris Area, along with demolition and deconstruc- compared to 2,345 million euros at the end of 2010, tion of old buildings both in and around Paris and and an 84% coverage ratio of non-current assets by throughout the country, often coupled with material shareholders’ equity and non-current provisions, recycling activities. identical to that of the end of 2010. • The Road Safety and Signaling sector includes the manufacture, installation and maintenance of safety equipment (guardrails, traffi c directing sys- tems), road marking (production of road paints and application of road markings), signs, lights and Business traffi c/access management systems (traffi c lights, equipment for toll booths, parking lots, access con- France trol). Aximum and its subsidiaries operate in these markets. Revenue in France (mainland France plus overseas The Pipes and mains sector encompasses the departments) amounted to 7.2 billion euros against • installation and maintenance of large and small 6.7 billion euros in 2010, i.e., a 8.0% increase. diameter pipes for the transport of fl uids (oil, natural gas, water), including the construction of compres- sor stations, along with dry networks (electricity, Mainland France heating, telecommunications), small-scale civil engi- neering projects and industrial services. Spac and its Revenue in mainland France amounted to 6.8 billion subsidiaries operate in these markets. euros, up 8.7% over 2010 (7.1% with an unchanged scope of business). • The Waterproofi ng sector includes: – the production and sales of waterproofi ng mem- The Group’s activities include: branes including photovoltaic membranes in France ROADS and elsewhere around the world, skydomes and (72% of total revenue in mainland France) fume/smoke removal systems, installation and main- tenance of servocontrols; This highly-diverse Roads sector includes a variety – the waterproofi ng of roadways and sidewalks of projects – both big and small – backed by a full (mastic asphalt) and buildings, cladding and roof- range of businesses, expertise and know-how. It ing (offi ces, industrial sites, auditoriums, museums) covers some 60,000 projects each year involving including complex work on highly architectural the construction and maintenance of transport projects: aluminum and steel cladding and roofi ng, infrastructure: highways, national roads, city streets, metal frameworks, photovoltaic roofi ng. airports, seaports, platforms for railways and Smac and its subsidiaries operate in these markets.

16 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 16 16/03/12 10:21 • The Railway sector comprises the design and Roads engineering of complex, large-scale projects, the In 2011, despite major disparities in investments by construction, renewal and maintenance of railway local authorities (urban areas vs rural zones, small track (conventional and high-speed lines, tram- towns vs big cities), the road market was relatively ways, subways), for both fi xed installation and stable in volume compared to 2010, boosted by infrastructure with the laying and maintenance of works involving a great number of reserved-lane track, electrifi cation (substations, catenary sys- public transport projects. The Group’s 16 regional tems), signaling and safety systems, special work road construction subsidiaries recorded road sales (bridge cranes, sidings, tunnels), the manufacture of 4.9 billion euros, up 9% against 2010 (of which of cross ties, as well as a railway freight business nearly 5% is due to rising construction costs, in par- (notably transport of aggregates for Group com- ticular energy, bitumen and other raw materials). panies as well as goods for private customers). Excellent weather conditions helped further Colas Rail and its subsidiaries operate in these mar- enhance business fi gures all year long. Several kets. major projects were won (concession for Highway • Production and sales of oil refi nery products A63 in southwest France, PPP for Vichy bypass, The Société de la Raffi nerie de Dunkerque (SRD), PPP for roads and street lights in Le Plessis-Robin- acquired in 2010, manufactures a range of oil-based son). Prices pushed down by tough competition products for Colas (60%) and Total (40%) as part seem to have bottomed out in 2011. The Group’s of a processing contract that runs up to the end of companies and profi t centers continued to adapt, 2012. The products, including bitumen, oils, waxes, to rationalize and to streamline in order to improve parrafi n and special fuels, are sold by SRD to Colas competitiveness and to make for a better fi t with and Total, who then in turn sell them. A specialized current local and regional market conditions. The bitumen division is in charge of selling the bitumen market for Group’s techniques, products and pro- manufactured by SRD (processing contract) to cesses designed to enhance responsible develop- the Group’s road subsidiaries. It also sells other ment has made headway from 7% in 2010 to 9% in products (oils, parrafi n, special fuels) to third-party 2011 for reclaimed asphalt pavement (RAP), whereas customers. warm mixes have remained stable at 4%. The pro- duction of aggregates is unchanged against 2010.

The Group’s competitors in the road construction industry and in other public works sectors remain Specialized activities Eurovia (Vinci group), Eiff age TP (Eiff age group), The Group’s specialized activity, most of which is NGE group, major regional companies such as performed by dedicated subsidiaries, recorded rev- Ramery, Charrier, and Pigeon, in addition to a very enue of 1.9 billion euros in 2011, up 8%. This increase tight network of roughly 1,600 small and medium- is mainly due to the full year consolidation of sized local companies. On the aggregate and refi ned products sales, against only six months in ready-mix concrete markets, competition comes 2010. Excluding the sales of refi ned products, the from cement manufacturing groups such as increase is 5%. Lafarge, Cemex and Ciments Français, along with a network of regional and local aggregate producers, ROAD SAFETY AND SIGNALING some of whom operate in the public works sector as well. The Group’s specialized road-related busi- Aximum and its subsidiairies recorded a 7% nesses contend with other specialized subsidiaries increase in revenue over 2010, boosted by the full of the French construction groups mentioned fi scal year consolidation of acquisition of Sagem- above, along with major international companies as com’s lights and signaling business acquired the well. There are also a number of small, medium and previous fi scal year. The market experienced a large specialized business units that operate on slight drop in volume and a rise in raw material regional, national and international markets, such prices (notably those used to manufacture road as: markings). A ten-year high energy performance – signing and signaling: Signature (Burelle and contract covering street lights and traffi c lights in Eurovia groups), Girod, Lacroix; the City of Paris was signed by Evesa, a consortium – railways: ETF (Eurovia), TSO (NGE), Alstom (TGS), in which Aximum holds a 15% stake. The agree- Eiff age Rail and a number of independent medium- ment, which covers assistance in contracting, oper- sized companies. ating and maintenance of 180,000 street lights and 1,700 intersections, comprises a commitment Colas is ranked fi rst in the road and railway sectors, to ensure energy savings of 30% over ten years. second in the waterproofi ng market, and third in the production of aggregates. Ranking has no sig- nifi cance in the other lines of business.

Business Report Colas Group 17

COLA_1202350_PORTFOLIO_GB.indd 17 16/03/12 10:21 Streamling in Aximum’s business involving the Construction and maintenance of highway net- design, manufacture and sales of electronic prod- works: A11: refurbishment of a 35-km section ucts has made headway. A consortium was formed between Thivars and Brou, using reclaimed asphalt by an investment fund (65%) and Aximum (35%) to pavement; A23: preventive maintenance between acquire sign manufacturing plant and equipment Sars-et-Rosières and Saint-Amand-les-Eaux, using belonging to the former company SES currently in reclaimed asphalt pavement; A29: lowering a liquidation. 1.2 km section in the Somme department to allow for the passage of the future Seine-Nord Europe PIPELINES canal and building a temporary section of highway; A36: refurbishment of roadway between Fontaine Spac and its subsidiaries: in 2011, sales were down and Burnhaupt, using reclaimed asphalt pavement 5%, due to a slump in the traditional pipeline busi- recycled in situ; A46: refurbishment of roadway in ness in mainland France. In Belgium, an 85-km long Saint-Priest; A48: widening and reinforcement of pipeline project with diffi cult contractual and finan- roadway on the Voreppe – Saint-Égrève section cial conditions was completed. The subsidiary con- with 30% reclaimed asphalt pavement; A71: refur- tinued to broaden its widespread range of skills bishment of roadway in Bourges. and expertise and complex projects are currently underway involving compression plants and gas Construction, maintenance and renovation of road storage units, such as the one in Hauterives. networks: construction of bypasses in Montluçon, Fleuré, Chanos-Curson using low temperature mix with 30% reclaimed asphalt pavement; refurbish- WATERPROOFING ment of pavement on Route RN 191 linking High- Despite a sluggish market during the last quarter ways A10 and A11; refurbishment of a section of and a sharp drop in the photovoltaic sector, Smac Route RD338 on the Les Hunaudières straight line, and its subsidiaries recorded an increase in revenue part of the 24 Hours of Le Mans race, using warm fi gures of 13%, thanks to a more buoyant construc- mix and skid-resistant surfacing with Colfl ex® tion market during the fi rst half-year and particularly binder; refurbishment of bypasses near La Rochelle, favorable weather especially at the beginning of the on Route RD28 between Soultz-sous-Forêts and year. Industrial business (waterproofi ng membranes Seltz, on Route RD928 in La Loupe using 50% RAP, and resins) also had a satisfactory year, with grow- on Route RD763 in Belleville-sur-Vie using 30% ing export sales, in spite of the negative impact of RAP, on Route RD934 between Chailly-en-Brie and rising raw material prices. Thanks to its strong, resil- La Ferté-Gaucher with 20% to 30% RAP; mainte- ient business network, Smac performed well. nance of road networks in the Landes regions using warm mix and in the Charentes region; maintenance RAILWAYS of city streets in Longué-Jumelles using Com- pomac®, an environmentally-friendly cold technique. With revenue for 2011 up by 6% compared to 2010, business at Colas Rail remained buoyant in a Airports–ports: reinforcement of aprons using ker- dynamic, albeit very competitive, market, boosted osene-resistant mixes at the Ajaccio airport; build- by the construction of new tramway lines in Tours, ing of a dock at the Port of Saint-Martin-de-Ré. Dijon, Besançon and Paris, along with renovation Urban development projects: redesigning the and maintenance of track with high output track eastern access route into Lyon by transforming a renewal units and closed-line contracts. The freight section of highway into a city boulevard; redesign- business continues to expand with the signature of ing the northern access route into Marseille and the a contract with a major French carmaker for auto main access route to Saint-Brieuc using in-place transport by rail. pavement retreatment, warm mixes, noise-reducing mixes, visually-appealing mixes; surfacing in a tun- Sales of refi ned oil products nel in Toulon; work on the access roads to the future Stadium of Lille, using 3E®+R warm mix with Sales of refi ned products recorded a full-year rev- RAP, Nanosoft® noise-reducing mix and Rugosoft® enue of 0.2 billion euros, against 0.14 billion euros in skid-resistant mix, including a total of 25,000 man- 2010 (only 6 months). hours for underpriviledged people trying to enter the job market; redesigning of downtown areas In all, 2011 was witness to nearly 84,000 projects in in the towns of Seclin and Château-Thierry using mainland France. Here are some noteworthy exam- Microville® HP noise-reducing mix, and at the Leclerc ples to demonstrate the broadly diverse nature of square in Poitiers. the Group’s businesses in France.

18 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 18 16/03/12 10:21 Public transport: construction of the Tours tram- Railways: turnkey upgrading on closed lines for ways including employees on job-access programs, two rail lines: Siorac-Sarlat (25 km of track voies) construction of the East line for the Dijon tramway, and Bergerac-Sauveboeuf (23 km of track) in Dor- continued work on tramways T1, T2, T3, T5, T6 in dogne; installation of 7.1 km of track on the Dijon and around Paris, including the hiring of employees tramway and 9 km of track on the T2 tramway in on job-access programs, using warm mix with RAP. Lyon. Logistics platforms, other facilities: construction Building, deconstruction/demolition: construction of an industrial zone in Neuves-Maisons; roads, net- and rehabilitation of Marcel-Sembat high school in works and parking lots for a commercial facility in Sotteville; demolition using “verinage” of a 140-meter Claira; construction of facilities and roads for a long low-income housing complex comprising shopping center in La Chapelle-Saint-Luc, includ- 315 apartments in Asnières-sur-Seine. ing retention ponds. Athletic and recreational facilities: construction of Concessions and PPPs a 17-km bike path along the banks of the Somme between Cappy and Amiens, using mix with trans- COFIROUTE: HIGHWAY CONCESSION lucent Vegeclair® binder; construction of a porous COMPANY FOR NORTHWEST FRANCE asphalt track at the Chantilly horse racetrack; refur- bishment of a track at the Vincennes horse race- Cofiroute, a highway concession company in which track. Colas holds a 16.67% stake, operates a 1,100-km interurban network in northwestern France and the Environment: earthworks, waterproofi ng, roads A86 Duplex tunnel near Paris. In 2011, the network and networks for an extension at the Grenay land- recorded a 0.8% increase in traffic, with passenger fi ll; construction of the Ecostep® water treatment vehicle traffic on the rise at +1.0% and HGV traffic plant that uses reed plant fi lters in Saint-Jean-de- down slightly by 0.4% compared to 2010. Improve- Marcel; roads, networks and landscaping at a pho- ments continued on the interurban network, with tovoltaic plant in Crucey-Villages for EDF; refection investments in the framework of the “Green High- and creation of a pipe network at the Salins-les- way Package” (treatment of waste water, noise- Bains spa. reducing mixes, noise barriers, improved parking Safety and signaling: renovation and upgrading of areas and design of eco-friendly areas to help pre- toll booth equipment at Veauchette on Highway serve biodiversity). A72; installation of noise barriers on Highway A31; driving of 30,000 steel piles for 2,500 steel frames ADELAC: CONCESSION FOR HIGHWAY A41 and 300,000 photovoltaic panels at the Toul solar NORTH center. Adelac, a concession company in which Colas holds Pipes, mains: construction of the Hauterives and a 6.9% share for a duration of fifty-five years, oper- Beynes natural gas storage units with an EPCC ates a 19.7-km stretch of Highway A41 between contract (Engineering, Procurement, Construction Saint-Julien-en-Genevois and Villy-le-Peloux on the and Commissioning); rehabilitation of urban heat- Annecy, France, to Geneva, Switzerland, link. Despite ing network between the Porte de Vincennes and a 14% increase in traffic compared to 2010 during the Porte de Bagnolet in Paris as part of the T3 its third year of operation, average traffic – at tramway project; construction of rear track for a 21,000 vehicles per day – is still under the initial gantry crane used to load/unload containers in the forecasts, due mainly to lower-than-expected HGV Grand Port of Marseille in Fos. traffic and to the impact of the economic crisis.

Waterproofi ng: refurbishment at night of plat- ATLANDES: CONCESSION FOR HIGHWAY A63 forms in the Paris metro on lines 1 and 13 using low IN SOUTHWEST FRANCE temperature mastic asphalt and special measures to protect employees and the environment (mate- Atlandes, a concession company in which Colas rials transported by remote controlled machines, holds a 15.57%, is in charge of fi nancing, designing, no smoke or fumes); cladding, roofi ng at Georges- widening from 4 to 6 lanes, operating and main- Frêche high school in Montpellier, with installation taining a 105-km section of Highway A63 between of 4,000 triangular Alucobond cases; supplying Salles and Saint-Geours-de-Maremne for a dura- 90,000 m2 of Coletanche® for a mining project in tion of fourty years. The concession was granted Toro Mucho, Chili. on January 23, 2011 and the transfer of existing

Business Report Colas Group 19

COLA_1202350_PORTFOLIO_GB.indd 19 16/03/12 10:21 State-owned infrastructure and State-employed manpower was eff ective on May 23, 2011. As stipu- French overseas lated in the concession contract, Atlandes paid out departments a 400-million euro entrance fee that corresponds Revenue posted for the French overseas depart- to the taking on of existing infrastructure. The work, ments amounted to 419 million euros, down 3% which should amount to some 500 million euros, from 2010. was awarded to a building consortium comprising Colas Sud-Ouest (the project manager) and Screg On Reunion Island, revenue was stable after two Sud-Ouest, two companies which hold a combined consecutive years of drops. Business for the build- 51% share. At the end of September, the work got ing sector enjoyed a slight upturn at the end of the off to a start, once the proper permits had been year, boosted by private investment, low-income secured. Tolls will begin to be collected in June housing construction programs and renovation 2013, after the initial construction and upgrading projects on public buildings (schools, etc.). The phase has ensured compliance with current stand- Road sector is still waiting for the launching of ards for highways and environmental protection. major projects. The materials business (aggregates, The entire section is slated for completion in June concrete block, beams) has steadied. Among the 2014. highlights of 2011, one can cite the construction of the new Saint-Benoît hospital and the Saint-André MARS: CONCESSION FOR THE REIMS water treatment plant. TRAMWAY AND BUS NETWORK In Mayotte, business was rocked by strikes that The Mars concession company, in which Colas holds paralyzed the island in October and November. The an 8.5% stake, completed the design, construction design-build Majicavo prison extension and reha- and fi nancing of the tramway for the City of Reims, bilitation project got off to a start and the con- France. As part of the concession, the company also struction of the Dzoumogné waste storage site is ensures the operation and management of the well underway. Warm mixes are now being used on entire public transport system in greater Reims for a the majority of surfacing projects. duration of thirty years. Mars has been operating the In the Caribbean (Martinique and Guadeloupe), the city’s bus network (roughly 160 buses) since 2008 market has remained fl at, although there was a and the tram network (11.2 km) since it was opened slight increase in public investment for road main- to the public in April 2011. tenance in Martinique and a second half-year launch of a number of roads and main networks EVESA: HIGH ENERGY PERFORMANCE projects in the framework of housing programs in CONTRACT FOR LIGHTING IN THE CITY Guadeloupe. A major water supply and conveyance OF PARIS project was completed for the Conseil Général in On July 1, 2011, Evesa, a company in which Aximum Guadeloupe. Streamlining plans are still ongoing. holds a 15% share, was awarded a ten-year high French Guiana recorded a drop in revenue in the energy performance contract for public lighting wake of the completion of major projects such as and traffi c lights in the City of Paris. The contract the Apatou – Saint-Laurent road or the link between involves assistance in project management and Saint-Georges and the Oyapock bridge. Teams operations for 180,000 street lights and 140,000 worked to extend aprons at the Rochambeau mili- traffi c lights, with a commitment to provide 30% tary airport. energy savings over a ten-year period.

20 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 20 16/03/12 10:21 International and French Europe overseas territories Revenue in Europe, excluding France, amounted to 1.9 billion euros, stable compared to 2010. Revenue from international subsidiaries and French overseas territories amounted to 5.2 billion euros, up Northern Europe recorded a slight increase in rev- nearly 4.3% compared to 2010 (3.3% with unchanged enue of 1% (+10% with sales of refi ned products), structures and comparable exchange rates). A with good business in Belgium and Switzerland off - breakdown by region shows that North America setting budget cuts in Ireland and Great Britain. accounts for 46% (45% in 2010), Europe (excluding In Great Britain, the economic backdrop was tough, France): 36% (37% in 2010), Africa/Indian Ocean/ in the wake of an austerity plan that led to a freeze Asia/Oceania/other countries: 18% (18% in 2010). in local investment. Nonetheless, revenue at the Business in the international and overseas territo- road subsidiary Colas Ltd remained high – albeit ries’ road construction activity is quite similar to slightly down from 2010 – due to a well-thought- the same sector in mainland France. Contracts are out range of business activities. These include long on the average larger in North America, central term MAC contracts (Managing Agent Contractor) Europe and the Indian Ocean. The Road business in for the management and maintenance of the British some countries may encompass civil engineering motorway and road network (four contracts cover- projects (engineering structures) required on com- ing Areas 14, 10, 7, 12, i.e. 3,500 km, including engi- prehensive road and highway projects. Road work neering structures), a strong industrial foothold is also supplemented by upstream industrial activi- and the development of airport runway mainte- ties (aggregates, asphalt mix, emulsion, ready-mix nance. The PFI for the upgrading and maintenance concrete). The amount of products sold to third of the city network in Portsmouth is still ongoing, parties can be higher than in France. Specialized much to the satisfaction of the customer and users. activities in the international divisions include pipes In Ireland, despite an extremely diffi cult economic and mains, civil engineering, railways, signs and environment due to austerity plans, revenue is signaling in Europe, building, civil engineering, comparable to 2010. signaling, and waterproofi ng in the Indian Ocean, road marking in Canada and in Alaska, waterproof- In Belgium, revenue in the road business has surged, ing in Quebec, civil engineering, railways, signaling, thanks to a good level of public investment ear- and waterproofi ng in Morocco, railways in Vene- marked for the upgrading of the road network that zuela, Egypt, etc. In Asia and Australia, Colas’ busi- had been seriously damaged by harsh winter ness mainly focuses on the production, storage, weather in 2009 and 2010. transformation and trade of oil products (bitumen In Switzerland, business fi gures remain high, prac- and emulsion), except for a recent foothold in the tically identical to the previous year, thanks to a railway market in Malaysia. number of road, highway and rail infrastructure In every country and every region (except for the projects (tramways, regional lines). United States and Canada where there is no nation- In Denmark, revenue is on the rise, boosted by gov- wide market per se), Colas is ranked among the ernment investments in road works and by good leaders in the road construction market. Group weather conditions. companies compete with both national companies and subsidiaries of major international groups (con- struction, cement-makers, materials producers). Revenue in central Europe has dropped 17% com- pared to 2010. The new slump (57% drop over a three-year period), is the fruit of shrinking public investment, mainly in Hungary, the Czech Republic and Slovakia. Poland, however, is benefi tting from the positive impact brought on by the Euro 2012 Soccer championship. In addition, a clear drive to prefer profi tability over volume amidst very tough competition has pushed prices down. The Colas companies are still endeav- oring to streamline to make for a better fi t with the market and with strategy. In Romania, Colas decided to cancel the Motorway A2 contract

Business Report Colas Group 21

COLA_1202350_PORTFOLIO_GB.indd 21 16/03/12 10:21 between Cernavoda and Constanta in the wake of now working on maintenance and network man- major contractual issues (in particular, a 15-km shift agement covering 480 km of roads, 84 bridges and in the original trace and delays in hand-over of engineering structures, and 19,000 streetlights. land) that prevented the work from being per- MAK: PPP for M6-M60 Motorway in Hungary formed as planned. The transfer of the subsidiary MAK, a concession company in which Colas holds a SCCF Iasi (road works and civil engineering), 30% stake, has been awarded a thirty-year PPP con- located in eastern Romania, was signed at the end tract to build and operate two new sections of High- of 2011 and should become eff ective as of the ways M6 (50 km) and M60 (30 km), for a total of beginning of 2012 once the free trade authorities 80 km in the southwest of Hungary. Launched at the have given their agreement. When the transfer has end of March 2010 for a duration of twenty-eight been completed, the Group will focus its business years, the operation and maintenance phase on the on industrial activities (quarries) and bitumen dis- two sections, performed by MAÜ, a dedicated com- tribution. In Croatia, Colas acquired the remaining pany in which Colas owns a 25% stake, continued to shareholders’ equity in its subsidiary Cesta Varaz- provide satisfactory service levels for the Hungarian din, and now wholly owns the company. government. Among the year’s most noteworthy projects, one can cite: the refurbishment of the main runway at Manchester Airport, the extension of the main run- way at London-Southend airport in Great Britain; North America the refurbishment of the Saint-Maurice road with Revenue totaled 2.4 billion euros, up 6.6% com- Nanosoft® noise-reducing mix and the construction pared to 2010 (8.5% with comparable exchange of a new tramway line in Geneva, Switzerland; the rates and identical scope of business). refurbishment of Highway E34 near Antwerp and the construction of the Hollain-Péronnes waste UNITED STATES water treatment plants in Belgium; the widening of a 12-km section of highway in the south of Jutland As stimulus packages drew to a close, creating a and the refurbishment of a 4-km section of high- more diffi cult economic environment, the Colas way using noise-reducing mix near Copenhagen, companies, which operate out of 29 states, enjoyed Denmark; the construction, reinforcement and wid- an increase in revenue compared to the previous ening of sections of Motorway M3 and M0 in Hun- year, due in part to the full-year consolidation of gary; the construction of a section of Motorway D3 Baker and Ballou, two companies acquired in 2010. in the Czech Republic; the construction of highway Harsh weather caused delays during the fi rst half bypasses to the east and west of Pozna´n, Poland. year, but this was off set during the second half year. The long-term federal infrastructure program Responsible development techniques are gaining called SAFETEA-LU was extended for an additional ground: projects involving plant-based binders year in 2010 and renewed in 2011 for the fi rst half were performed in Belgium, Switzerland and Great year of 2012. Colas companies rolled out plans Britain; noise-reducing mixes progressed sharply in aimed at improving their organization (exchange of Switzerland, Denmark and Poland; cold recycling is best practice) and continued to control operating making headway in Switzerland. costs. In addition, the subsidiaries pursued the pro- motion of cost-wise pavement maintenance tech- CONCESSIONS, PFI, PPP niques and aimed to diversify their businesses with Ensign: PFI for the city network in Portsmouth, a new focus on civil engineering and structures. Great Britain Furthermore, the companies moved on with their strategies targeting a better control of bitumen The fi rst ever public-private partnership involving supplies, backed by a network of depots and termi- the upgrading and maintenance of city networks nals along with greater diversifi cation of the cus- signed in 2004 for a duration of twenty-fi ve years, tomer base over the last three years. They also the Portsmouth PFI is a source of satisfaction for continued to reinforce their footholds in states in both the customer and users alike, as seen in inde- which they currently operate. Moreover, a division pendent opinion polls carried out by NHT (National was created, dedicated to the study of new types Highways & Transport Network). Two years after of bids, such as design-build contracts and public- the upgrading phase was completed, teams are private partnerships. These actions helped the companies perform well, bearing witness to their strength and resilience in 2011’s highly competitive market.

22 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 22 16/03/12 10:21 CANADA Elsewhere around the world Despite harsh weather during the fi rst half year, revenue at ColasCanada increased sharply, boosted MOROCCO by an ongoing program to upgrade infrastructure in Quebec, buoyant private investment in the West In an increasingly competitive, sluggish market, rev- (mining, energy in Alberta) and acquisitions in enue at the Group’s road companies is down slightly Quebec and British Columbia. Against a dynamic compared to 2010. Among the year’s most signifi - economic backdrop, 2011 was once again a good cant projects, one can cite the earthworks for the year for Colas companies in Canada, thanks to an Tangiers – Kenitra high speed train line including 3 extensive network of high-quality business units 5,200,000 m of cut and 1,000,000 tons of fi ll, and and a business model based on vertical integration the construction of the platform and other ancillary (bitumen storage; production of aggregates, asphalt work on a 9-km section of the Casablanca tramway. concrete, road marking paint; road works). IN WEST AFRICA

Among the highlights of 2011 for Colas North In Benin, where the market is very low and competi- America: tion from Chinese companies has strongly impacted – United States: widening of the roadway and con- prices, construction work continues on the 37-km struction of two engineering structures at the Blue section Djougou – Ouaké Route, with special focus Mountain interchange in Franklin county, Pennsyl- on good corporate citizenship and environmental vania; construction of a greenbelt from the univer- protection. sity campus to downtown Syracuse, New York; In Togo, sales have dropped off sharply; work on upgrading of a section of highway in Blytheville, the civil engineering project in the Port of Lomé is Arkansas; refurbishment of a section of Inter- nearing completion. state 90 in Sheridan, Wyoming; refurbishment of pavement on a 26-km section of Interstate 26 in In Gabon, business is still enjoying growth, notably Spartanburg County, South Carolina; construction with construction and renovation work on the city of a section of highway including six engineering streets of Libreville as part of the African National structures in Savannah, Georgia; application of Cup 2012, along with the extension of the main run- noise-reducing mix on sections of Routes 199 and way at the Port-Gentil Airport. 288 in Virginia; work on the Burbank airport in Cal- The Ivory Coast is currently awaiting major road ifornia; refection and extension of a runway at the infrastructure upgrading projects fi nanced by inter- Anchorage International Airport in Alaska; national funding. Work on refurbishing streets in – Canada: in Quebec, upgrading of Route 185 to Abidjan is currently underway. Highway 85 for the Trans-Canada Route in Temisc- ouata, the extension of Highway 73 in the Beauce INDIAN OCEAN AND SOUTHERN AFRICA region and of Highway 410 in Sherbrooke as part of preparations for the Canada Summer Games in In Mauritius, where the market remains buoyant, 2013; in Alberta, extension and refurbishment at the Group acquired 50% of the equity of Gamma the Fort McMurray Airport, construction of an Materials Ltd, specialized in the production and intermodal rail platform in Calgary, refurbishment sales of construction materials. The most notewor- of pavement on Highway 88; in British Columbia, thy projects that are currently underway or were supply of ready-mix concrete for the construction completed in 2011 include the construction of the of the Waneta dam; in Saskatchewan, widening of a Port-Louis highway bypass, a 16-km section of section of highway in North Battleford. highway between Terre Rouge and Verdun, the In the United States, warm mixes accounted for extension and refurbishment of a runway and the 32% of total asphalt mix production in 2011 (14% in construction of a new taxiway at the airport. 2010), ranking Colas companies as the leading In Djibouti, the Group’s business includes roads, users of this technique. Reclaimed Asphalt Pave- building and a variety of diversifi ed contracts includ- ment or RAP is also very widespread, amounting to ing drainage for the City of Djibouti using interna- 22% of total production (18% in 2010). In Canada, tional fi nancing and the construction of a parking special focus continues to be placed on warm zone on the Japanese military base. mixes and cold in-place recycling.

Business Report Colas Group 23

COLA_1202350_PORTFOLIO_GB.indd 23 16/03/12 10:21 In Madagascar, where lasting political unrest In Thailand, business was penalized by cuts in gov- remains strong, business has been streamlined to ernment spending and by very bad weather. In allow the Group to weather out the storm until new Malaysia, production at the Kemaman bitumen projects have been launched. Road works at the refi nery was hindered during the fi rst half year due Tamatave nickel site are still underway, a structure to raw material price issues. In India, an eighth crossing the Mahajamba is being erected and a emulsion plant was completed in Haldia. Hincol 30-storey offi ce building was completed in Anta- recorded business fi gures that are comparable to nanarivo. 2010 in a market impacted by a number of delays in projects. In Indonesia, the bitumen trading busi- In the Comoros Islands, political stability has paved ness enjoyed sharp growth despite a sluggish bitu- the way for the return of investors and international men market. A fi fth bitumen depot was opened in fi nancial backers. After eight years of absence, the Medan, in northeast Sumatra. The road construc- Group’s company began doing business again. tion business is buoyant and maintenance contract Some 43 km of road works are currently being per- for mining roads were renewed in Borneo. In Vietnam, formed on the archipelago’s three islands. the bitumen market is down due to an overall eco- In southern Africa, the market was boosted by rising nomic slowdown, and due to unfavorable weather raw material prices. Business was good throughout during the second half year. The Group’s bitumen the zone, in particular in South Africa, where mainte- trading business has hence slowed. nance work has replaced infrastructure projects for the 2010 World Soccer Cup, as well as in Zambia, Namibia and Kenya. INTERNATIONAL RAILWAY PROJECTS Colas Rail Ltd enjoyed buoyant business in Great ASIA AND OCEANIA Britain, with work on track renewal in the frame of In New Caledonia, the road business has been long-term MAC contracts and a new MAFA mainte- boosted by the dynamic economy in the North nance framework agreement for the southwest Province, with earthworks that are part of the con- region signed in 2011. Colas Rail Ltd has thus con- struction of the Koniambo nickel plant, along with fi rmed its position as market leader in long-term infrastructure work. The Group is currently building track renewal contracts. an industrial facility in Vavouto and a 4-storey gov- Elsewhere around the world, new contracts were ernment building in Noumea. secured in 2011, including a new line for the Los In Australia, Colas Australia and its subsidiaries Teques metro in Venezuela and a 17.7-km extension have enjoyed strong growth, operating in bitumen of the Kelana Jaya light metro in Kuala Lumpur, storage and trade along with the production and Malaysia. In Morocco, work is currently underway to sales of bituminous binders via a network of depots lay track on a 9-km section of the Casablanca tram- and plants located in Sydney, Brisbane, Perth and way, in addition to recurrent maintenance and Melbourne. upgrading work performed by the Group’s local rail company. Work continued on the construction of In Asia, Colas operates in eight countries with a phase 2 of the Cairo metro line 3 in Egypt. central line of business focused on the production, distribution and sales of bituminous products. All of the Group’s units recorded an improvement in business fi gures against 2010 despite a slumping bitumen market. Bitumen sales at Tipco were down (800,000 tons compared to 1,000,000 in 2010).

24 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 24 16/03/12 10:21 Techniques, Network organization Research and for techniques The Group boasts a tight-knit internal technical Development network that operates internationally. Every new company that joins the Group helps reinforce this valuable system, which works hand in hand with Research has been one of the driving forces of operational teams in the fi eld. Colas’ strategy for many years. As the leading private research center in the road Backed by a portfolio of more than 130 patents fi led industry, the Campus for Science and Techniques in France and around the world, with products used (CST) and its eight laboratories in Magny-les- throughout the Group worldwide, Colas is a pioneer Hameaux, near Paris, are at the heart of the Group’s in the development of new techniques able to adapt innovation program. Here, teams put their research to a wide range of infrastructure needs in ever- skills and expertise at the disposal of Group sub- changing national markets and diverse weather sidiaries, both in France and elsewhere around the conditions, from the sub-zero temperatures of world, on conventional projects, major projects or Alaska to tropical climates in Africa and Asia. more complex contracts such as tramways, PPPs, In 2011, the R&D budget was stable at 69 million PFIs, and concessions. Over 90 people work at the euros, with 60% in France (based on the defi nition CST, from engineers, technicians, physicists and provided by the OECD including research, experi- chemists to material experts and calibration spe- mental development, technical activities of labora- cialists. tories, IT). Nearly fi fty decentralized laboratories and one Colas’ research and development policy focuses on hundred engineering design offi ces – specialized in anticipating and responding to the needs of trans- roads, civil engineering, building, deconstruction port infrastructure customers (public and private), and more – work in liaison with the CST both inside users and neighboring residents, regarding quality, and outside of France. They contribute to the safety, environmental protection (in particular in Group’s overall research eff ort and off er tailor- the fi elds of energy savings, reduced greenhouse made technical support to local projects. gas emissions, decreased consumption of materi- Each unit has its own state-of-the-art laboratory als, noise reduction and greater awareness of visual and computer tools, which are constantly renewed appeal) and costs. The Group aims to improve to remain at the cutting edge of technological existing technologies, design new products and innovation and customer needs and requirements: off er a broader range of services. Its expanding material analysis equipment, sophisticated simula- technical skills and know-how are also refl ected in tion and risk measurement software, modern aus- its new lines of business and new off ers, e.g., its cultation apparatuses. Research teams can thus activity in the bitumen sector for the last several help meet customers’ needs and optimize bidding years and new contracts like PPPs in which mainte- by using alternative technical solutions. nance and improved service levels require accurate technical analysis of existing roads. Ongoing In all, the Colas technical network includes 2,000 improvements to know-how focus in particular in engineers and technicians hard at work in the the fi elds of mineral, organic and plant chemistry, Group’s laboratories (1,000 people) and engineer- design of road and rail infrastructure and applied ing design offi ces (1,000 people), roughly 45% of physics. whom work in France. In 2011, the Group’s research programs had to adapt, as was the case in previous years, to a rap- idly changing market, in particular in France in the wake of the French Grenelle Environmental Round- tables, in addition to reinforced standards for prod- ucts in Europe with the application of REACH legislation covering chemical substances. The French Government continued to support innovation in the road industry, a program that was relaunched in 2007.

Business Report Colas Group 25

COLA_1202350_PORTFOLIO_GB.indd 25 16/03/12 10:21 Reducing traffi c noise has long been a priority at Responsible Colas, and improvements continue to be made to development: noise-reducing surfacing techniques in this aim: lat- est generation of Nanosoft® and Rugosoft® noise- a key focus for R&D reducing mix developed by Colas, Microville® HP To save energy, reduce the consumption of materi- (fi rst project in 2011) and Picoville® at Screg and als and diminish carbon impact, teams at Colas Miniphone® S 0/4 at Sacer. The Group’s safety and R&D and technical divisions focus on the following signaling company, Aximum, also provides high issues for the road sector: performance noise barriers. • Lowering manufacturing temperatures to produce Lastly, improving the environment can also be a warm, semi-warm and cold mixes (3E® energy-effi - question of creating visually-appealing surround- cient asphalt mixes at Colas, Compomac® at Screg, ings: research and development teams focus on Ecofalt® at Sacer) and low temperature mastic asphalts highlighting the natural color of aggregates, with- (Neophalte® BT at Smac); out bitumen, thanks to translucent plant-based binders. Sacerlift®, a product designed to renovate • progressively replacing synthetic chemicals and and clean porous stone surfaces, won the 2011 Inno- petrochemical products with plant-based prod- vation Award at the Congress for French Mayors ucts, such as Vegeflux® fl uxing agent or Vegeclair® and Local Authorities. binder, the carbon negative range launched in 2010 and applied in 2011 notably on the visitors’ center at In the field of road safety and user information, in the Mont-Saint-Michel and on the Amiens Veloroute addition to designing highly skid resistant road bikepath; surfacing that drastically cuts braking times, teams also spotlight the creation of energy-autonomous • absorbing nitrogen compounds emitted by vehi- automatic tools to collect, process and display data, cles using innovative surfacing (Colclean®); as well as the design of new plant-based safety • recycling used materials, with in particular the marking processes that do not give off any volatile use of reclaimed asphalt pavement (RAP) from old organic compounds (e.g., Vegemark® water-based demolished roadways to manufacture new mixes road marking paint with plant-based binder (3E®+R mixes – certifi ed by the French Ministry of designed by Aximum). Ecology, Sustainable Development, Transports, Hous- Lastly, to contend with tighter local budgets, the ing, in-place recycling with Novacol® and Valorcol® Group has been focusing on developing cost-wise at Colas, Recycold® V at Screg); products and processes that provide equal or • decreasing the thickness of road courses (Col- improved performance, such as road maintenance grill® R surfacing combining a fi berglass grid and techniques using surface dressing or safety-enhancing asphalt mix, winner of the 2010 Sustainable Devel- long lasting high grip surfacing (Optigrip® designed opment Innovation Award, and applied on a project in 2011 by Sacer). for the Conseil General de l’Aude). These targets and research programs are in line with Teams from Colas played a major role, alongside the commitments made in France by the French specialists from USIRF, in designing an industry- national public works federation (FNTP) as part of a wide eco-comparing software tool SEVE®, which voluntary agreement signed on March 25, 2009. has enabled a number of contracts to be won with eco-friendly technical alternatives (reduced energy consumption and greenhouse gas emissions).

26 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 26 16/03/12 10:21 surface treatments. In Canada, focus continued to Using special products be set on developing warm mixes using additives and techniques around or foam bitumen. 2011 saw a sharp jump in the use of RAP, in particular with in place cold recycling. the world Colclair® light-colored binder was applied for the In 2011, a number of projects undertaken by interna- fi rst time in Quebec as was noise-reducing, skid- tional and French overseas units used the Group’s resistant Rugosoft®. Tests were performed to cer- special products and processes: tify water-based road marking paint, and heavy – in Belgium, Vegeclair® plant-based binder was duty skid resistant surfacing was developed in the used for two hot mix projects; west. A Central Laboratory was opened in Edmon- – in Switzerland, there was a surge in interest for ton, Alberta and Colas Solutions™ continued to the latest generation of noise-reducing mixes called deploy innovative marketing solutions; Nanosoft®, along with Valorcol® cold in-place recy- – in Martinique, Rodal® open-graded percolated cling and Vegeclair® plant-based binder; mix was applied and teams are now using road – in the United Kingdom, French-designed airfi eld base asphalt concrete with 25% RAP; asphalt concrete was used to reinforce and reno- – in French Guiana, the fi rst warm mixes with CWM® vate runways and a fi rst-ever project using French liquid additive were employed on a CNES project; standards to upgrade the main runway at the – in Benin and in Togo, contracts for work on piers Manchester Airport. Vegecol® binder was used in were won using technical alternatives; surface dressing applied as part of the work done – in Morocco, noise-reducing Nanosoft® mix was for the London Olympics in 2012; applied on a structure built for the Rabat tramway – in Denmark, Vegecol® mixes were employed for and Emulfi x® bitumen savings process was used; the fi rst time and noise-reducing mixes continued – in the Indian Ocean and Pacifi c Rim, warm mixes to develop; containing CWM® were involved in the majority of – in Poland, the fi rst Active Joint® project was com- asphalt projects in Mayotte, high modulus mixes and pleted and Rugosoft® noise-reducing mixes remained Betofl ex® modifi ed bitumen were highly successful popular; on the Mauritius Airport project; RAP techniques are – in North America (United States and Canada), being developed, along with warm mixes containing FiberMat, a crack-resistant technique continued to CWM®, including with modifi ed binders such as gain ground, Vegefl ux plant-based binder was Rufl ex® on Reunion Island; special concrete was employed, a North American eco-comparison tool developed by the Central Laboratory in Madagascar was designed in collaboration with the Campus for to build a new skyscraper, Tour 786, some 100 meters Science and Techniques in France. In the United high, in Antananarivo; Rufl ex® and Betofl ex® modi- States, Ecomat® warm mix enjoyed strong growth, fi ed binders were manufactured for the fi rst time with an overall tonnage multiplied by 10 compared and CWM® was used to haul mix over long distances to 2009, i.e., 32% of total asphalt mix production, in New Caledonia; and reclaimed asphalt pavement also progressed – in Asia, special bitumen was developed for air- (22% of total mix production). In June 2011, Colas port projects in Thailand, Cambodia and Vietnam; Solutions Technology Center (CSTC), was inaugu- microsurfacing was developed on heavy traffi c rated, off ering a dedicated development and train- sites; colored micro surfacing was applied in Khao ing center for pavement preservation techniques. A Yay national park and noise-reducing mixes were new prime coat called EcoPrime™ with no volatile applied in Thailand. Emulfi x® was used in two plants fl ux was launched, along with DustGrip™ dust in India; Novachip® mix and emulsion-based mix were reducer and Tuff Bond™ emulsion for high-perfor- applied in Vietnam; Aquaquick® mix was employed mance asphalt concrete. Teams continued to work in South Korea. hand in hand with the Group’s Campus for Science and Techniques in France regarding emulsions designed for recycling, micro-surfacing and other

Business Report Colas Group 27

COLA_1202350_PORTFOLIO_GB.indd 27 16/03/12 10:21 Responsible Development

Approach Colas has developed an approach to responsible development (see www.colas.com) based on the convic- tion that it can and must meet the needs and aspirations of its customers and society in a responsible manner. This approach takes into account the issues of contemporary society and its sometimes contra- dictory objectives: social cohesion, climate change, transportation needs, improving living conditions, etc. As a cornerstone of its responsible development approach, Colas has mapped out the interrelationships between its stakeholders:

Customers Human Communities Environment Suppliers Shareholders resources and their and inspection institutions bodies Customers Human resources Communities and their institutions Environment and inspection bodies Suppliers Shareholders

Strategic challenge Major impact Considerable impact Average risk Low risk Non-significant risk

Three main lessons emerge from this assessment: For each of these targets a policy of continuous pro- • our people in the fi eld play a key role in determin- gress has been established and is coordinated at ing how Colas is perceived; each level of the organization. For most of these tar- • environmental considerations are critical to this gets, global performance indicators and goals have image; been specifi ed. This approach seeks to foster a long- • customers are an important source of feedback at lasting culture of continuous improvement in the a local level as part of the ongoing dialogue between fi eld, throughout Colas’ 800 work centers and 1,400 Colas, communities and their institutions. material production sites. It was rated AA+ in 2010 by extra-fi nancial rating agency BMJ specialized in Based on the analysis of stakeholder interrelation- the rating of corporate sustainable development ships and risks as shown in the table above, Colas’ and social responsibility. This motivation is also approach to responsible development is under- refl ected in the wide variety of actions the Group’s pinned by three strategic targets and fi ve major operating units undertake in their own communities. targets. The vision of Colas’ business activities is thus The three strategic targets are critical for Colas to enriched and transformed by the collective appro- develop its business and thrive in the long term, priation of corporate social responsibility. and their achievement depends largely on Colas. They include: human resources development, social As far as the dialogue with non-contractual stake- acceptance of production sites, and ethics. Colas holders is concerned, few issues justify a global does not have as much leeway in meeting its other approach, whereas exchanges on a local level are fi ve targets, even though some, such as energy, numerous, with neighboring residents, local govern- may be considered every bit as important. These ments, schools, the social sector, etc. Colas has a major targets include: safety, corporate citizenship tightknit local network and maintains ongoing dia- in developing countries, energy and greenhouse logues with its stakeholders(1). On a global level, it is gases, recycling, and chemical hazards. still diffi cult to identify structuring, general issues

(1) See “Community acceptance of production sites” section.

28 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 28 16/03/12 10:21 that would justify the organization of dialogues with global, hence international, stakeholders. To date, the sole issue that Colas deems relevant on a global Under the aegis of the French Ministry of level involves bitumen fumes. Colas has played a “ Ecology, INERIS specializes in expertise and major role in communicating with customers, scien- research in the fi eld of risk prevention for tists, employees, government labor departments technology and industrial pollutions. As Pro- and workplace health bodies(1). To help foster refl ec- fessor Ortwin Renn from the University of tion, Colas participates in strategic committees and Stuttgart has said, certain risks can be called commissions gathering stakeholders from other ‘indirect’, meaning that the assessment an fi elds, such as CORE at the INERIS(2), COS at the individual will make of a given risk does not FRB(3) and the COS Environnement et Responsa- depend on his/her own experience – every- bilité Sociétale at Afnor(4) and continues to endeavor one has seen a fi re or a car wreck – but rather on the degree of trust that the individual has to give more meaning to its corporate patronage in the person who is explaining the risk to actions. him/her.

ORGANIZATION IMPLEMENTED TO MONITOR When dealing with risks, the fact that one SUSTAINABLE DEVELOPMENT PERFORMANCE trusts an expert is inseparable from scientifi c and technical expertise. This is why INERIS In 2011, the Group’s Environment Department took has recently reinforced its governance by on greater cross-functional responsibilities in the creating CORE, a scientifi c committee for the area of sustainable development, expanding its orientation of research and expertise. The dialogue with all other functional and operational committee members include elected offi cials, departments for the analysis and verifi cation of trade associations, NGOs, industrialists, aca- indicators and the drafting of detailed reports sent demics and government representatives, who to the chief operating offi cers of the 67 “head enti- gather together to help defi ne work pro- ties” (national head offi ces or subsidiaries), who are grams for INERIS. I truly appreciate Colas’ responsible for fi rst-level internal control. The Envi- commitment and diligence, and thanks to ronment Department also coordinates the renewal CORE, we at INERIS can share issues very far and updating of action plans in this area. More spe- upstream. cifi c objectives and more targeted types of feed- This relationship helps us ensure that we are back are agreed with some of the head entities. To in line with society’s expectations, thus favor- implement these action plans, chief operating ing a climate of trust and dialogue when we offi cers rely on the support of management per- present our results. The fact that Colas is sonnel within their entities responsible for areas involved in the committee is also an opportu- such as workplace safety, energy, environmental nity for elected offi cials and NGOs to better aff airs, quality, health, diversity and road safety, in understand – sometimes even to discover – accordance with Colas’ decentralized organiza- the viewpoints, questions and expectations of tional structure. The organizational challenge is to industries, and vice versa. This is the corner- ensure the balance between bottom-up contribu- stone of trust, indispensable in the fi eld of tions and top-down cohesiveness. In 2011, a project risks.” was established to examine the robustness, adapt- ability and renewal of formal quality management Vincent Lafl èche, Managing Director, INERIS(1) systems. (1) National Institute for industrial environment and Following the global roll-out in 2010 of a new risks, France. reporting tool designed to harmonize all non-fi nan- cial indicators used by 770 legal entities by means of precise defi nitions, 2011 saw a number of improvements in the use of this tool, which now(5): – takes into account the relevant minority interests; – has enhanced the reliability of quantitative infor- mation with a view to later certifi cation; – has introduced new indicators, whose reliability is still subject to verifi cation, including those examin- ing alternative means of transport and biodiversity.

(1) See “Chemical risks” and “Operational risks” sections. (2) Steering committee for research and expertise at the National Institute for industrial environment and risks, France. (3) Strategic steering committee at the French foundation for biodiversity research. (4) French standard organization. (5) Methodological guide to non-fi nancial reporting accessible via the Colas Web site.

Business Report Colas Group 29

COLA_1202350_PORTFOLIO_GB.indd 29 16/03/12 10:21 Three strategic targets

Renewal and development of human resources Colas must ensure the renewal of its organization across generations. Colas’ human capital and its enhance- ment are key to the Group’s development and its long-term viability. The main issues addressed in this area are recruitment, diversity, retention and training.

RECRUITMENT Recruitment in 2011 by geographic area

Zone Managers Workers Total Mainland France 1,217 1,671 2,888 International 886 1,937 2,823

incl. Europe 253 283 536

North America 309 1,171 1,480 Africa/Asia/Indian Ocean 324 483 807 Total 2,103 3,608 5,711

In 2011, Colas maintained an active recruitment policy: 5,700 people were hired (up from 4,500 in 2010), including nearly 3,000 in mainland France. The Group’s recruitment goals are advanced through media campaigns, ongoing contacts with educational institutions at all levels in the countries where Colas has operations, and follow-up tools currently being rolled out for the Group’s human resources information system(1). Staff joining Colas often come from the local area, by way of internships (a total of 2,136 in 2011, including 488 outside France, compared with 2,260 and 275, respectively, in 2010), work-study and appren- ticeship programs across all qualifi cation levels (559 in 2011 versus 380 in 2010), as well as temporary employment, which allows both the entity involved and the prospective hire to get to know and evaluate each other prior to the off er of an open-ended employment contract.

WORKFORCE Workforce by country in 2011 (rolling 12-month average)

Managers and engineers Offi ce staff and supervisors Workers Total

Country 2010 2011 % 2010 2011 % 2010 2011 % 2010 2011 %

Mainland France + overseas depts. and territories 5,740 5,689 –0.89 9,629 9,624 –0.05 22,998 22,579 –1.82 38,367 37,892 –1.24 Europe 961 949 –1.25 3,215 3,033 –5.66 8,478 7,728 –8.85 12,654 11,710 –7.46 (excl. France) Total Europe 6,701 6,638 –0.94 12,844 12,657 –1.46 31,476 30,307 –3.71 51,021 49,602 –2.78 North America 553 566 2.35 1,776 1,909 7.49 5,118 5,359 4.71 7,447 7,834 5.20 Africa/Asia 367 379 3.27 927 957 3.24 3,805 3,317 –12.83 5,099 4,653 –8.75 Indian Ocean 163 114 –30.06 552 437 –20.83 4,613 3,562 –22.78 5,328 4,113 –22.80 Total 7,784 7,697 –1.12 16,099 15,960 –0.86 45,012 42,545 –5.48 68,895 66,202 –3.91

The Group’s global workforce decreased by 3.9% in 2011. Eff orts to promote staff mobility and the syner- gies generated over the last several years, together with a number of major contract wins, have allowed for the eff ective adaptation of structures so as to avoid layoff s to the greatest extent possible. In France, a job protection plan is currently underway at Aximum in the Electronic products arm (in the wake of a transfer of some 37 jobs from one site to another, 7 employees accepted to follow their post and redeployments within the Group were proposed to the other remaining employees). In central Europe, ongoing reorganization eff orts resulted in 997 layoff s (131 in Croatia, 211 in Hungary, 30 in the Czech Repub- lic, 606 in Romania, 19 in Slovakia). In Romania, 80 employees were redeployed in the Group and the sale underway at year-end 2011 of the subsidiary SCCF Iasi to a local company included a guarantee that exist- ing staff would remain in their jobs. In Benin and in Togo, following a sharp drop in business, Colas has initiated employee support measures in connection with a layoff plan (aff ecting 42 employees) that exceed legal requirements.

(1) Known as SIRH in France.

30 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 30 16/03/12 10:21 DIVERSITY (10.2% in 2010), including 22.8% of supervisors and management staff (23.1% in 2010). On the basis of Diversity is a key priority for the Group’s continuing a study of women’s career paths at Colas subsidi- development. In 2011, the Group pursued and fur- aries in France, areas for improvement have been ther expanded its eff orts in this area under the identifi ed. At the same time, senior management action plan launched in 2010: brochures, mini- has placed a priority on eff ectively increasing the poster campaigns, appointment of diversity corre- presence of women across the Group, even in tra- spondents in the subsidiaries, special training ditionally male-dominated occupations, and initia- sessions for managers, etc. tives are taking shape focusing on the organization Social integration: in France, Colas continued its of work, equal treatment of men and women, and partnership with Epide(1) and also maintained its career advancement, among other areas. program off ering job opportunities to underprivi- Older employees: Colas subsidiaries in mainland leged young people in collaboration with local France have taken steps to promote the employ- organizations (for example, contracts for work on ment of older workers following an agreement tramway projects) in mainland France as well as concluded with employee representatives setting a the overseas departments. Across the Group’s minimum employment rate of 9% for employees international operations, many subsidiaries are aged 55 and over. stepping up their recruitment eff orts in black- spots for youth unemployment and in support of the integration of the long-term unemployed RETENTION (Australia, Belgium, Benin, Djibouti, United States, Both within and outside France, employees are paid Madagascar, Switzerland). more than the minimum wage. Remuneration is People with disabilities: following the memoran- supplemented by benefi ts, depending on local dum of understanding signed with Agefi ph(2) in laws relating to pensions, life insurance, health care 2009 setting a 3.5% target for the employment coverage, employee savings plans, etc. The Group’s (both direct and indirect) of people with disabilities remuneration policy is based on the recognition of to be achieved by early 2013, and once an initial individual eff orts and performance, with salary diagnostic/consulting phase has been completed packages comprised of a fi xed part and a variable resulting in the preparation of action plans by sub- part determined on the basis of annual performance sidiaries in mainland France, a two-year agreement reviews. Entities apply this policy independently, was signed in May 2011 with this same body. The making the necessary adaptations for their markets principal aims of this agreement are to promote and under centralized supervision. In France, profi t- awareness-raising initiatives, maintain disabled sharing agreements give employees a personal employees in their jobs, and integrate and expand stake in the success of Colas and the Group. Outside the use of contracts concluded with sheltered France, a policy intended to promote greater con- workshops. vergence of employee benefi t schemes continues to be applied within each major geographic region. Gender diversity To reinforce dialogue beyond the involvement of Breakdown of male and female employees in 2011 the employee representative bodies established in accordance with each country’s local labor laws Zone Management Workers Total (336 works councils in France and 20 central works Mainland France Men 81.2% 99.5% 91.7% councils), new human resources positions have Women 18.8% 0.5% 8.3% been created outside France and innovative initia- International Men 77.2% 93.9% 89.4% tives are being encouraged: employee satisfaction indicators, discussion forums on human resources Women 22.8% 6.1% 10.6% issues, etc.

In 2011, women represented 8.3% of the Group’s workforce in mainland France (8.1% in 2010), includ- ing 18.8% of supervisors and managers (18.7% in 2010). Outside of France, this fi gure rises to 10.6%

(1) Social integration agency under the aegis of the Ministries of Defense, Employment and Urban Aff airs. (2) Association for the management of a national fund to promote the employment of the disabled.

Business Report Colas Group 31

COLA_1202350_PORTFOLIO_GB.indd 31 16/03/12 10:21 Payroll costs and social security contributions Company savings plan (PEE) and retirement savings in 2011 (Mainland France) plan (Perco) in 2011 (France)

in thousands of euros 2010 2011 % 11/10 Bouygues Number of % of Total Average PEE subscribers work- aggregate individual Salaries and wages 2,186,864 2,242,963 2.57% force employee deposits (1) Social security charges 756,815 800,838 5.82% deposits (in euros) (in euros) Total payroll Managers 3,449 60.63% 9,899,824 2,870 expenses 2,943,679 3,043,801 3.40% Offi ce Employer contribution 24,417 23,669 –3.06% staff and to PEE supervisors 4,106 42.66% 7,189,285 1,751 Profi t sharing 10,984 15,256 38.89% Workers 5,156 22.84% 6,186,412 1,200 Total 12,711 33.55% 23,275,521 1,831 Incentive scheme 2,889 3,160 –

Total employer contribution, profi t sharing and incentive Colas Number of % of Total Average scheme 38,290 42,085 9.91% Monétaire subscribers work- aggregate individual force employee deposits deposits(1) (in euros) Total payroll costs and (in euros) other advantages 2,981,969 3,085,886 3.48% Managers 99 1.74% 93,812 948

Outside personnel 313,944 335,540 6.88% Offi ce staff and supervisors 124 1.29% 98,416 794 Workers 146 0.65% 110,382 756 Gross salaries per month in 2011 (France) in euros Total 369 0.97% 302,610 820

Number of employees

PERCO Number of % of Total Average 8,000 subscribers work- aggregate individual force employee deposits 7,000 deposits(1) (in euros) (in euros)

6,000 Managers 465 8.17% 853,966 1,836 Offi ce 246 2.56% 206,405 839 5,000 staff and supervisors 4,000 Workers 143 0.63% 99,481 696 Total 854 2.25% 1,159,852 1,358 3,000

2,000

1,000

0 1,300/ 1,400/ 1,600/ 1,800/ 2,000/2,200/2,500/3,000/3,500/4,000/ >5,000 1,400 1,600 1,800 2,000 2,200 2,500 3,000 3,500 4,000 5,000

(1) Employee deposits excluding matching contribution from employer. Comparison between average annual salaries paid by Colas and minimum annual legal salaries by country or geographic area in 2011

in euros Mainland Hungary Great Switzer- Morocco Madagascar United Canada(3) France(1) Britain land(2) States

Average annual Machine salary paid driver 24,996 8,178 31,641 73,485 7,464 849 42,584 32,991 (1) by Colas Foreman 33,465 13,050 44,608 96,240 12,737 2,202 48,906 39,365 Minimum annual legal salary per country 16,380 4,120 15,140 58,006 2,410 372 11,655 12,773

For international operations, an exchange rate at December 31 is applied. (1) Average annual salary for the fi xed portion. (2) The minimum salary is the salary for the construction sector. (3) The average minimum salary for provinces where Colas carries out business.

32 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 32 16/03/12 10:21 TRAINING, MOBILITY AND INTERNAL EXEMPLARY PRODUCTION SITES PROMOTION Each site must implement progress measures that Training actions and hours in 2011 go beyond mere compliance with administrative or regulatory requirements. Obtaining environmental Hours Actions certifi cation is the preferred approach (under ISO France 580,072 34,138 14001, for example). Progress measures are docu- International 493,156 73,320 mented and assessed by using a system of checklists Total 1,073,228 107,458 covering most of the Group’s activities in the pro- duction of construction materials worldwide, which The Group’s training budget again represented 4% of is part and parcel of the internal control of opera- the payroll in France (as in 2010) and 2.5% outside tions. Some 1,700 Colas production sites and plants France (identical in 2010). Training programs are around the world are able to assess their own pro- off ered to all staff members regardless of their level in gress each year by responding to a questionnaire the hierarchy (51% for skilled workers), including tem- consisting of more than 100 fact-based questions porary employees, and cover all subject areas: apart relating to matters such as the storage of chemicals from fundamental training, new program content is and liquids, risk prevention (water, air, waste, safety, constantly being developed to support current action noise), formal procedures, and dialogue with local plans relating to contractual management, safety stakeholders. The Group’s Environment Department (39%), individual interviews, ethics, diversity, the envi- consolidates and analyzes the responses to these ronment, etc. Exchanges are fostered between questionnaires, communicates the results, and pro- employees pursuing training together, thus strength- poses the appropriate action plans, thus stimulating ening Group culture: this signifi cant and growing continuous improvement by individual operating investment by Colas helps to instill a broad set of val- units and the Group’s performance as a whole. ues. The transfer of know-how begins during the As of December 31, 2011, in terms of revenue gener- employee induction process and continues through- ated, 80% of Colas’ activities worldwide in the pro- out an employee’s career with tutoring, mentoring duction of construction materials were covered by at (1) and PQCs (awarded to 79 employees in 2011; 61 in least one of these two tools (certifi cations or check- 2010). Furthermore, the 924 members of Colas’ Com- lists) and the aim is to rapidly increase the coverage pagnons de la Route guild play a key role by ensuring rate to 90%. that the core values and techniques that have built the Group’s reputation are disseminated in the fi eld. In each country, the construction materials produced (aggregates, binders, bitumen, mastic asphalt, Internal promotion and mobility are an integral part asphalt mixes, concrete, paints, etc.) meet all appli- of the Group’s managerial culture. Mobility is both cable standards or certifi cation requirements (MSDS(2), necessary for adaptation to market developments CE marking, and REACH(3) registration in the Euro- and a key aspect of career development at Colas, pean Union, etc.). Many production sites or plants opening up ever more diversifi ed opportunities for its are also working to obtain other voluntary certifi ca- employees. In order to support mobility eff orts, sen- tions, including those that may be obtained under ior management issued a direct questionnaire in 2011 eco-labeling schemes, for example. to encourage employees to consider these opportu- nities and increase the fl ow of information. Annual In 2011, a new program was launched to reinforce and performance reviews for individual employees are an underscore the contribution made by the Group’s essential priority, to shape career development and quarries and gravel pits to biodiversity: within its prepare the managers of tomorrow: their eff ective immediate area, each active site identifi es a pro- use is now one of the criteria for evaluating perfor- tected species and takes appropriate measures to mance of managers as much as results achieved in safeguard its habitat, entering into partnerships with the area of safety. scientists to build knowledge of the species, while ensuring that these actions are transparent to local residents. At sites where no such species may be Community acceptance identifi ed, bee hives are installed. To date, it is esti- of production sites mated that a quarter of the Group’s production sites already satisfy most of the criteria to be considered Colas operates a large number of sites producing as exemplary. construction materials, such as aggregates, ready- mix concrete, asphalt mixes, bitumen and emulsions. Public acceptance of these sites has become a more sensitive issue, particularly for local residents. Action plans are focusing on two imperatives.

(1) Professional qualifi cation certifi cates recognizing the acquisition of work experience. (2) Materials safety data sheets (mainly used in the OECD countries). (3) European Commission regulation on the registration of chemicals produced or used in the European Union.

Business Report Colas Group 33

COLA_1202350_PORTFOLIO_GB.indd 33 16/03/12 10:21 ONGOING DIALOGUE WITH NEIGHBORING plant deliveries by equipping them with a tamper- COMMUNITIES proof weight system. Another example is Colas’ participation in an auction exchange for pre-owned Maintaining an open dialogue with local communi- construction equipment, subject to the control of ties makes it possible to understand their expecta- Tracfi n(2) in order to avoid money laundering and tions, explain the reality and constraints of production illegal transactions sites, and promote mutual comprehension to pre- vent crisis situations. In 2011, 44% of revenue at Colas materials production sites had set up a formal proce- dure for communicating with their local community Five other (vs 46% in 2010 with a narrower scope). The objec- tive is to quickly exceed 50%. major targets As for Colas’ construction work, it has little direct impact on the environment: Safety – new construction projects account for less than Safety has been a top priority at Colas for many 20% of total works revenue. Their impact is assessed years. during the design phase and Colas’ role during con- struction is generally limited to complying with its PREVENTING WORKPLACE ACCIDENTS customers’ environmental requirements and propos- ing improvements when possible; Colas Group safety indicators(1) – the bulk of the Group’s projects average less Mainland Frequency Annual Security Fatal Fatal than 100,000 euros and involve the maintenance, French rate severity index work accidents replacement or modifi cation of existing road or rail subsidiaries rate accidents on work- systems. These projects require no additional land related journeys area and the land used has already been surfaced or otherwise prepared. Environmental requirements 2009 9.66 0.42 4.06 2 0 therefore mainly have to do with effl uent and solid 2010 9.97 0.48 4.79 1 2 waste, most of which is inert. 2011 11.23 0.49 5.50 2 4 In addition to its day-to-day eff orts to be a good

neighbor, Colas also deploys a variety of eco-friendly International Frequency Annual Security Fatal Fatal technologies, such as trenchless pipe replacement subsidiaries rate severity index work accidents and Nanosoft® and Rugosoft® noise-reducing pave- rate accidents on work- related ment, which is popular with neighboring residents journeys and drivers alike. Indeed, noise is considered to be the 2009 5.98 0.19 1.14 6 1 greatest environmental nuisance. Nearly 1 million m2 were applied in 2011. 2010 6.08 0.16 0.97 6 2 2011 6.17 0.23 1.42 6 0

(1) The diff erence in rates between the Group’s operations in France Ethics and elsewhere in the world is primarily the result of diff erences in Colas makes no compromises when it comes to regulatory defi nitions of work accidents in various countries. A much broader defi nition is used in France than in most other countries. ethical principles and integrity. Ethics are a corner- stone of the Group’s internal control system and Change in global frequency rate over the last 10 years violations are sanctioned. Employees who are exposed to corruption are regularly reminded of 20 France the need to scrupulously observe ethical rules and Europe (excluding France) training is systematically provided to top manag- Africa-Caribbean-Indian Ocean-Asia ers. Colas also complies with the Bouygues’ Ethics North America Code, which was fi rst released in 2006, is updated 15 annually and is systematically disseminated. An environment of transparent and fair competition best enables Colas to use its organization, technol- ogy and know-how most eff ectively and foster a 10 long-term partnership relationship with its custom- ers. Transparent dissemination of information is the cornerstone of career satisfaction and managerial effi ciency, since personal and corporate values 5 must be in harmony to sustain individual commit- ment and motivation. Colas has implemented many concrete actions, 0 often in collaboration with independent partners 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 such as l’AQP(1), to ensure traceability of asphalt

(1) Quality weighing association. (2) Information and action against money-laundering schemes.

34 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 34 16/03/12 10:21 Having successfully achieved the targets for 2010 Comparison of the change in number of accidents set fi ve years earlier, new targets have now been and the vehicle fl eet in France between 1997 and 2011 set for 2015: an accident frequency rate(1) for per- 1997 2003 2007 2011 Variation manent employees lower than 5 in France and 2011/1997 lower than 3 outside France, with a 50% reduction Number in the accident frequency rate for temporary staff ; of vehicles 13,746 20,588 25,380 27 247 +98% more than 300 accident-free entities in mainland Number of France; over 35% of the Group workforce world- accidents wide having received fi rst-aid training (with at least involving (1) two certifi ed fi rst responders at each work site). third parties 3,024 2,334 2,407 2 268 –25% Accident prevention at Colas is ensured through a Frequency 0.220 0.113 0.095 0.083 –62% variety of initiatives, supported in the fi eld on a (1) Accidents involving third parties deemed liable or not liable based on the principles of avoidability. day-to-day basis by specially appointed corre- spondents: risk assessment, employee awareness The accident frequency rate involving company campaigns making use of specifi c tools and soft- vehicles in France was nearly stable at 0.083 in ware, safety prizes, presentation of safety instruc- 2011 (0.082 in 2010) remaining at its lowest level tions, video analysis of workplace behavior, a unit since 1997, when this rate was 0.220. Accident fre- to monitor serious and fatal accidents, etc. In 2011, quency has thus decreased by 62% in fourteen despite eff orts by management and preventionists, years, even though the total vehicle and equip- safety indicators worsened by 5.50% in mainland ment fl eet increased by 98% over the same period. France and 1.42% elsewhere around the world, This proactive approach to accident prevention is compared to 4.79 and 0.97 in 2010. As a result, all gradually being extended to all countries where subsidiaries have been instructed to develop new Colas maintains operations. action plans. A number of entities have obtained safety certifi cation (OHSAS 18001, MASE, LO, etc.), accounting for 37% of the Group’s worldwide activ- HEALTH ities in revenue terms, as in 2010.

Change in the number of employees trained in fi rst aid People working in the asphalt paving industry “ should not be concerned about this new 2009 2010 2011 IARC(1) classifi cation. The two key animal France 11,225 11,441 11,865 studies on paving asphalt did not show any evidence of cancer risk, and the major IARC International 8,128 8,307 8,081 cancer study of people working in the paving Total 19,353 19,748 19,946 industry in Europe did not show any increased risk for cancer ; in conclusion, a possible haz- First-aid training is naturally benefi cial not just for ard(2) but no evidence of any risk.” those receiving this training, but for their colleagues, family members, friends, and society in general, Jim Melius(3), at the same time reinforcing awareness of safety DrPH, MD (occupational physician and issues. In 2011, 19,946 employees were certifi ed fi rst epidemiologist), expert in the fi eld of Occupational Safety and Health, has worked responders, representing 32% of the workforce (31% for the Laborers International Union in 2010). of North America

ROAD SAFETY (1) International Agency for Research on Cancer (World Health Organization). Colas has taken a highly proactive approach to pre- (2) Hazard is something inherent to the product ; risk results from exposure to the product. venting road accidents since 1997, when it signed (3) After working for the NIOSH, and in a number of the fi rst road safety charter in France. This charter National Academy of Sciences committees, Dr. Melius joined the LIUNA (affi liated to the AFL-CIO), and is has since been renewed three times and has been now an administrator. He is currently Chair of the supplemented by a European charter that has also Steering Committee for the World Trade Center been renewed. Over 500 road safety correspond- Medical Monitoring and Treatment Program. He also helped draw up the IARC’s bitumen monograph ents across the Group promote best practices for in October 2011. driving, provide tips for accident avoidance, help with the organization of work, etc. In 2010 and 2011, more than 33,000 handbooks on safe and fuel-effi - cient driving written for operators of construction equipment and truck drivers were distributed, while an energy effi ciency campaign provided an opportunity to remind drivers of the safety benefi ts of eco-driving practices.

(1) Number of workplace accidents resulting in a leave of absence × 1,000,000 / number of hours worked.

Business Report Colas Group 35

COLA_1202350_PORTFOLIO_GB.indd 35 16/03/12 10:21 Colas has a comprehensive approach to protecting Society: the Group is involved in patronage pro- health that encourages healthy living, including ini- grams to support education, supply water and/or tiatives like a back clinic at Colas Belgium and med- ensure its viability through construction projects, ical partnerships in the United States. Improvements and provides humanitarian relief when fi re, fl oods in the design of construction equipment and adap- or other catastrophes strike nearby communities. tations to suit the needs of older workers are certi- fi ed under Ergomat in France (currently being Human rights: Colas has a policy of using and show- rolled out to operations outside France). In France, ing respect for local labor and of treating local Colas takes an active part in the identifi cation of communities, contractors and suppliers ethically. In factors resulting in work-related discomfort for doing so, the Group’s employees actively promote each job position and ways to reduce their impact human rights in their professional dealings with the (noise and vibrations, improved ergonomics for rest of society. working postures). Measures to reduce dust and stress also continue to be applied. In France, a “toolbox” of resources to prevent substance abuse has been developed and distributed to aid in the fi ght against addictions. Random on-site drug and I am a local Papuan fi shery academy lecturer alcohol testing is carried out in countries where “ from APSOR (Sorong Fishery Academy, such tests are permitted. Indonesia) who has been able to experience something that I had even never dreamed of The Group’s policy for the prevention of chemical before: I am now conducting my dissertation (1) risks is dealt with elsewhere in this document. in Paul-Sabatier University, Toulouse, France.

My dissertation is about rainbow fi sh (Mel- Corporate citizenship actions anotaenia Mairasi), an almost extinct kind of in developing countries fi sh that was found in a massive Karst area in Papua, Indonesia, through an extensive expe- Infrastructures cannot be exported. They are built dition involving multi-disciplinary teams, on site using local human resources. These projects known as the Lengguru expedition. The expe- are highly exposed to the cost of transporting dition was initiated by IRD(1), involving other heavy materials and require very short lead-times, local and overseas institutions, including with just a few hours for concrete to set or to apply APSOR. asphalt. Colas has not established its international From 2007 until the last expedition in 2010, presence in order to relocate and cut costs, but ABS and Wasco(2) had extensively funded rather to fi nd new business development opportu- part of the research in biodiversity science nities and balance its exposure to country risk. expedition. It was also the fi rst step for me on Colas has been doing substantial business in the long journey that fi nally brought me to Morocco and Madagascar for over fi fty years and an international preservation mission for the has also established operations more recently in rainbow fi sh. such countries as South Africa, Benin, Djibouti, Togo I have a close relation with ABS and Wasco and Gabon. In addition to its construction projects, management and staff , and often speak with Colas contributes to the economic, social and cul- them of my studies and expeditions. Colas tural development and growth of these countries, through ABS and Wasco has allowed me while helping to protect their environments. to pursue my research; they truly show that they care about environmental sustainability, Social: Colas has a progressive policy in terms of especially in Indonesia.” pay, training, promotions and employee benefi ts, etc. Kadarusman Loba, (3) Health: the Group’s eff orts to promote health ben- Lecturer at Apsor

efi t not only employees but also their families and (1) Research and Development Institute in France. local communities. These eff orts include, for exam- (2) Colas companies in Indonesia. ple, medical check-ups, health-care centers and (3) Local institution that trains in fi shing techniques campaigns to prevent AIDS, the fi ght against in Papua, Indonesia. malaria and other diseases. Environment: priority is given to protecting biodiver- sity, combating deforestation and managing waste.

(1) See “Chemical risks” and “Operational risks” sections.

36 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 36 16/03/12 10:21 Energy and greenhouse gas Measuring instruments: in order to compute its energy effi ciency, Colas must measure its fossil fuel The overall business environment is and will continue consumption, since electrical consumption only to be aff ected by the need to reduce carbon emis- accounts for a small proportion of its energy foot- sions. Aware of the importance of this need, Colas print. While it is fairly straightforward to track the off ers a range of low-carbon-cost products and consumption of burners at its 580 mixing plants, it is technologies and prepares action plans to enhance much more complicated to accurately monitor the the energy effi ciency of its business activities. consumption of over 70,000 machines and vehicles across over 800 works centers and 1,400 produc- ENERGY CONSUMPTION AND EFFICIENCY tion sites. Colas has therefore fi tted 2,000 of its Overall assessment: Colas has completed the calcu- machines and vehicles with energy consumption lation of its consolidated global carbon footprint, meters and is talking to equipment suppliers to pursuant to part 3a of the ISO 14064 standard, develop new common standards and transmit and which includes internal and upstream emissions. The receive data in real time. 2011 fi gures have remained stable at 12 million tons Contribution of employees: Colas has encouraged of CO equivalent, in line with expectations. The seg- 2 its equipment operators and truck drivers to reduce mentation clearly shows that heavy materials are their fuel consumption by 20%, by adopting eco- the main contributor. It should be noted however driving habits and switching off engines when that this sort of global fi gure has a margin of uncer- equipment or vehicles are stationary. This campaign tainty of up to 20%, despite the quality of the assess- highlights the three advantages of eco-driving, ment work and the fact that the vertical integration which reduces costs, increases safety and helps of Colas operations facilitated access to much of the preserve the environment. Although emissions are upstream data. Still this calculation provides an still hard to quantify, everyone is clearly committed approximation that is necessary and useful in evalu- to this eff ort. ating the amounts of CO2 emissions the Colas Group avoided in 2011, i.e., 160,000 tons (vs 130,000 in Asphalt plants: the energy consumption of plant

2010) or 1.5% of its total emissions. It also makes it burners has increased by 3% (18,000 t of CO2 equiv- possible to break down the carbon footprint into its alent). These fi gures are however stationary when main components and thus prepare more eff ective calculated with an unchanged scope of business. action plans. Overall, people at Colas are now clearly committed to ensuring better energy effi ciency. At the begin- 4% 2% ning of 2012, a project team was formed to help 4% provide impetus to the energy saving program and to monitor its concrete results. 10% 63% ENERGY CONTENT OF CUSTOMER OFFERINGS Eco-friendly technical alternatives: to enable com- panies to compare eco-friendly alternatives using uniform criteria, Colas participated in an industry- wide project led by USIRF in France to develop 17% SEVE®, an eco-comparing tool that was made avail- able via an extranet in July 2010 and opened to customers at the end of 2011. In addition, the French Ministry of Environment has encouraged the initia- Goods and services* Fixed assets tive, signing a charter in March 2009. In 2011 the Energy Waste eco-alternatives that Colas was thus able to suc- cessfully recommend made it possible to avoid the Freight Transport and travel of personnel emission of 29,000 tons of CO2 (21,000 tons in 2010). Of the eco-alternatives proposed, 16% were For information, the heading “non-energy” is 0 for Colas. accepted, vs 28% in 2010. Outside of France, Colas began promoting a specially adapted version of * For Colas, this involves raw materials and construction materials (29% mixes, 21% concrete and 13% other) the software tool in the Indian Ocean zone. Indeed, SEVE® was designed to enable relatively simple translation and database adaptation to diff erent national requirements.

Business Report Colas Group 37

COLA_1202350_PORTFOLIO_GB.indd 37 16/03/12 10:21 Neophalte BT®, 3E® and 3E®+R warm mix, Ecomat®, ASPHALT MIXES etc. In 2011, the Group’s production of warm mixes Colas’ asphalt mix production included an average and mastic asphalts increased in one year’s time of 12% reclaimed asphalt pavement (RAP) vs 10% in from 6% of total Group production to over 12%. 2010. This represents the recycling of almost 5 mil- Subsidiaries have gone above and beyond their ini- lion tons of aggregates, some 230,000 tons of tial target of doubling production to 11% (consoli- bitumen – the equivalent output of a medium-sized dated level). The greatest proportions of these new refi nery, and the avoidance of 87,000 tons of CO products are produced by the American road com- 2 emissions. There are disparities in recycling perfor- panies (32%) and by Smac (100%). Warm products mance however, from 17% to 22% in Belgium, off er the dual advantage of 10 to 30% energy sav- Switzerland and the United States, and 9% in ings and 70% to 90% fumes reductions. A target of France (7.2% in 2010), a fi gure which refl ects strong over 50% in 2018 is imaginable. progress (target in France: 12% in 2012). Since it is Vegeroute® products replace petroleum-based estimated that if all available road demolition mate- components with plant-based material and make it rials were recycled, asphalt mixes could contain up possible to reduce manufacturing and application to 20 to 25% RAP, Colas is halfway to achieving the temperatures and even the amount of material theoretical maximum. required. This range includes a fl uxing agent (Vege- fl ux®), binders (V, Vegeclair®), a hot road-marking IN-PLACE RECYCLING product (Ostrea®), an emulsion (Neogreen®) and various mixes, such as Compomac V®. Since these This recycling technique continued to expand in products are carbon sinks, they ensure a positive 2011, accounting for over 8.6 million m2 of road con- struction, vs 7.8 million in 2010, mainly in North CO2 balance. America, the United Kingdom, West and Central Photovoltaic roofi ng: in 2011, buy-back prices for Africa. This success was made possible by such electricity production have slumped, and a total proven technologies as Valorcol®, Recycold®, etc. In power capacity of 8.8 MWc was installed (18.5 MWc all, the technique was used to recycle the equiva- in 2010). Smac is now focusing on developing lent of a 900-km section of two-lane road. products designed to reduce a building’s energy consumption, in particular with innovative facades. Chemical hazards Recycling Colas has focused its eff orts to reduce chemical hazards in the following priority areas. Recycling is a key focus for development since Colas is a major producer and user of materials. Although Solvents: the use of the following has been discontin- public works is one of the sectors which uses the ued: solvents in laboratories, solvent-based degreas- most heavy materials, the fact that a large propor- ing “fountains” in workshops, and toluene in road tion of these materials can be recycled means that paints. road-building is a major contributor to recycling. Pigments: paint pigments that contain heavy met- This is a key issue for Colas, as well as for its custom- als are no longer used and priority is being given to ers because they can benefi t from more cost-wise non-powder formulations. materials (economic interest is one of the three pil- lars of responsible development). Non-stick products: plant-based alternative prod- ucts are being used instead of fuel-oil. RECYCLING PLATFORMS Bitumen fumes: please see operational risk section in Risks. Colas is clearly committed to promoting the In 2011, production of recycled products grew 17%, use of warm mixes, which produce almost no fumes while that of Colas quarries and gravel pits only or smoke, and help save energy, too. The percentage increased 9%(1). Some 11 million tons of waste prod- of warm mix use has soared from 6% in 2010 to more ucts (dirt debris, asphalt and mastic asphalt, con- than 12% in 2011, thanks in particular to the United crete demolition rubble, foundry slag, clinker, etc.) States where warm mix now accounts for 30% of were recycled vs 9 million tons in 2010 and 8.7 mil- total asphalt mix production. The initiative has taken lion in 2009). This is the equivalent of 14% of Colas’ hold around the world: North America, South Korea, total production of aggregates (11% in 2010), or the West and central Europe, France (mainland France output of 32 quarries(2). The production of recycled and overseas departments), Gabon, Madagascar, materials is increasing faster than that of ‘new’ Morocco, Mauritius, etc. materials.

(1) Based on integral proportional consolidation, not on “Group share” volumes. (2) Based on average permanent production at Colas of more than 100,000 tons each year.

38 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 38 16/03/12 10:21 Resins: a reasearch project entitled Greencoat is road renewal and maintenance PFI for Portsmouth, being conducted in collaboration with several part- England, a high energy performance maintenance ners and with the support of the ANR(1) under the contract for street lights and traffi c lights for the aegis of sustainable development foundation Chem- City of Paris, four MAC maintenance contracts in SuD. the United Kingdom that cover a third of the national motorway system, fi ve similar CMA(5) con- Waste oils: the worldwide objective is to ensure the tracts in Canada (in Alberta and Red Deer County), disposal or recycling of used motor oils, which form and two MAC rail contracts in the UK. the bulk of Colas’ hazardous waste. The global waste oil recovery rate is currently 67% on a con- solidated basis (56% in 2010). The optimum ratio is Responsible purchasing estimated at approximately 80%, once stock eff ects Colas works with over 100,000 suppliers and sub- and equipment oil consumption are taken into contractors worldwide which can be classifi ed into account. six main groups: local subcontractors, local materi- als suppliers, global raw materials suppliers, national and international materials suppliers, national and Dialogue with international service providers and miscellaneous community institutions suppliers. Identifi cation work for each group defi nes the pos- In addition to addressing these strategic and major sible scope of action available and the strategic pri- challenges, Colas continues to closely monitor other orities for responsible purchasing: safety, quality, issues of social interest. monitoring the use of illegal immigrant workers, compliance with payment terms and conditions, Rail-road debate design and correct use of materials, etc. Colas is cur- rently trying out various supplier-rating systems, Colas holds signifi cant shares of both the road and even though rating all suppliers would be impossi- railroad construction markets in France, the UK and ble. A risk assessment is also underway in France to many other countries. This enables it to understand determine the types of purchases that should have the merits of both types of transportation from an priority. objective perspective. Colas also uses alternative transport modes, rail and water, for its own needs, As regards purchasing from developing countries, chalking up over one billion txkm in 2011. Since the issues relating to relocation is very marginal for there are relatively few cases where one mode of Colas due to the nature of the industries involved, transportation tends to replace another, Colas’ but its businesses in these countries respond to objective is to improve the environmental perfor- these challenges(6). mance of each mode, through a policy of techno- logical and methodological innovation aimed to create a balanced approach to transport. Community involvement and project support These actions are essentially local and are man- The total cost of public aged by Colas companies and their operating units. infrastructure They mainly involved sponsoring sports teams Colas advocates a more partner-oriented approach (50%) or cultural events (40%), for a total of 2.5 mil- that takes into account the total cost of infrastruc- lion euros, which has remained unchanged against ture and implements innovative public/private sec- 2010. Outside of France, the proportions vary with tor contracts, such as PPP(2), PFI(3), MAC(4) and 30% for sports, 20% for humanitarian programs, concessions. An infrastructure designed and built 15% for education, and 10% for cultural events, for for the long term, regularly maintained, optimizes an unchanged budget of 1.1 million euros. public investment and reduces the consumption Actions by the parent company in France include a of resources. The following contracts, at various skills-sharing patronage program to restore paths stages of completion or operation, are a good illus- in Versailles park, artistic patronage with the pur- tration of this approach: the Reims tramway and chase of paintings by the Colas Foundation, sup- Highways A41 and A63 in France, the M6-M60 port to the international dance company Akram Motorway in Hungary, the Vichy bypass, city streets Khan, and backing for the humanitarian eff orts of in Le Plessis-Robinson, street lighting in Libourne, “On the Road to School” with Good Planet for a total of 1.5 million euros.

(1) National research agency (France). (2) Public-private partnerships. (3) Private fi nance initiatives. (4) Managing Agent Contractors (UK). (5) Contract Maintenance Area (Canada). (6) See “Corporate citizenship actions in developing countries” section.

Business Report Colas Group 39

COLA_1202350_PORTFOLIO_GB.indd 39 16/03/12 10:21 Strategy Strengths

Colas’ strategy for profi table, long-term growth Colas' keys strengths are its: remains unchanged, aiming at meeting the modern network of over 800 works centers and 1,400 world’s need for mobility, urbanization and environ- • materials production sites in some 50 countries mental protection. The cornerstones of this strategy worldwide, some of which are over a century old; have been built upon a drive to support responsible development, via social, societal and environmental • core business of building and maintaining living protection issues, based on the following objectives: environments and transport infrastructures, and roads in particular, including all of their multiple strengthen and expand the network of opera- • aspects and components; tions in France and worldwide, to establish and develop sustainable leadership positions for our • a heritage of collective intelligence, values and traditional business activities in local markets, and passion built up over many years, shared by some spread risk through geographic diversifi cation; 66,000 employees, handed down from generation to generation and enhanced by a dynamic human optimize the integration of industrial processes • resources policy; to secure the procurement of aggregates, bitumen and other vital materials and resources, generate • innovative technologies developed by a vast inter- more added value, improve competitiveness and national technology network consisting of some control the quality of materials and products; 2,000 people who work closely with operating units through the Colas Science and Technology Campus expand our core business – Roads – to include • (CST), the premier private research and develop- closely related and complementary specialty activi- ment center in the road construction industry, and ties that will enhance our off ering to customers, some fi fty research laboratories and around a hun- develop synergies and enable us to penetrate future dred engineering offi ces; growth markets, such as the railway sector; integration of upstream production processes to increase participation in complex PPP, conces- • • ensure the procurement and quality of essential sion and systems management projects that lever- materials and supplies, such as aggregates, binders, age the full range of Colas expertise in engineering asphalt mixes, ready-mix concrete, bitumen, impervi- (specifi cations, design, construction and mainte- ous membranes and road safety equipment; nance) and project fi nancing; a decentralized network of over 800 work cent- enhance service to customers by conducting • • ers units and 1,400 materials production sites, with large projects that are consistent with the Group’s strong local roots and capable of responding rap- traditional activities; idly to market needs; develop an expanded and innovative off ering of • a full-service transport infrastructure off ering products and services capable of meeting sustain- • covering the range of large and small construction able development requirements. or maintenance projects, thanks to the Group’s extensive presence in local markets and its ability to leverage its global expertise and resources.

40 Colas Group Business Report

COLA_1202350_PORTFOLIO_GB.indd 40 16/03/12 10:21 Outlook

Colas has started out 2012 with improved competitiveness, as illus- trated by the increase in profi tability in 2011 despite relatively slug- gish markets.

Work-on-hand at the end of December 2011 totaled 6.5 billion euros, up 5% from the end of 2010 (4% in mainland France and 7% for the international and overseas units). The level of work-on- hand allows the Group to move smoothly into the beginning of the year. With the award of preferred bidder status to a consortium including Colas Rail and Colas Midi-Méditerranée on the Nîmes- Montpellier railway bypass PPP contract, 2012 has gotten off to a good start.

However, market trends for Colas’ businesses remain diffi cult to forecast. France is seeing a number of major projects in the making or being launched, and other projects are well underway involving public transport, urban development, maintenance on road and rail infrastructures, PPPs, and more. However, uncertainty still reigns as to their fi nalization, which will depend on the ability of local authorities to obtain fi nancing. Colas companies in North America, boosted by good fi gures in 2011, should continue to enjoy upbeat business trends in Canada and a resistant market in the United States, along with a recovery – albeit slight – of the US economy. In Europe, outlook for business remains stable in the west and more uncertain in central Europe, where the Group is still targeting fi gures close to the breakeven point, after a major decrease in losses for 2011 vs 2010. In Africa and in the Indian Ocean zone, business should be stable or slightly growth oriented. Asia and Australia will continue to operate in a dynamic environ- ment.

Against this backdrop, Colas is moving into the year with caution. The profi t margin over volume strategy implemented by Colas will remain unchanged. Backed by confi dence in its ability to adapt, Colas boasts a great number of strong suits – in particular a wide sweeping geographic spread and a solid fi nancial situation. On the basis of all available information, the initial revenue forecast for 2012 is 12.5 billion euros.

Business Report Colas Group 41

COLA_1202350_PORTFOLIO_GB.indd 41 16/03/12 10:21 The year IN REVIEW

42 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 42 16/03/12 10:21 FRANCE High quality urban development project in Plougasnou.

Colas Group 43

COLA_1202350_PORTFOLIO_GB.indd 43 16/03/12 10:21 BELGIUM CANADA Redesigning a pedestrian zone near Construction of Highway 73 from the Grand-Place in Brussels. Saint-Georges-de-Beauce to Quebec City.

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COLA_1202350_PORTFOLIO_GB.indd 44 16/03/12 10:21 Colas Group 45

COLA_1202350_PORTFOLIO_GB.indd 45 16/03/12 10:21 46 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 46 16/03/12 10:21 REUNION ISLAND Building roads in a development zone in Sainte-Anne.

Colas Group 47

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COLA_1202350_PORTFOLIO_GB.indd 48 16/03/12 10:21 HUNGARY Construction of Motorway M0 bypassing Budapest.

AUSTRALIA Supplying bitumen shipped from Asia to the Fremantle depot on the west coast.

Colas Group 49

COLA_1202350_PORTFOLIO_GB.indd 49 16/03/12 10:21 FRANCE Demolition of an apartment building using verinage technique in Asnières-sur-Seine.

FRANCE Building of a bike path in Arcachon.

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COLA_1202350_PORTFOLIO_GB.indd 50 16/03/12 10:21 Colas Group 51

COLA_1202350_PORTFOLIO_GB.indd 51 16/03/12 10:21 UNITED STATES FRANCE Emulsion plant in Perry, Refurbishing the Hunaudières straight line on the Georgia. 24 Hour Le Mans racetrack, using 3E® warm mix.

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COLA_1202350_PORTFOLIO_GB.indd 53 16/03/12 10:21 MADAGASCAR Construction of “Tour 786”, a skyscraper in Antananarivo.

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COLA_1202350_PORTFOLIO_GB.indd 54 16/03/12 10:21 Colas Group 55

COLA_1202350_PORTFOLIO_GB.indd 55 16/03/12 10:21 56 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 56 16/03/12 10:21 FRANCE Transporting aggregates by rail from the Hersbach quarry.

FRANCE Building the Tour Horizon skyscraper in Boulogne-Billancourt.

Colas Group 57

COLA_1202350_PORTFOLIO_GB.indd 57 16/03/12 10:21 MAURITIUS POLAND Extension and refurbishment of Widening of Avenue Bukowska a runway at the international airport to four lanes in Poznań, using for the A380 super jumbo jet. Rugosoft® noise-reducing asphalt.

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COLA_1202350_PORTFOLIO_GB.indd 58 16/03/12 10:21 Colas Group 59

COLA_1202350_PORTFOLIO_GB.indd 59 16/03/12 10:21 FRANCE Building infrastructure for the Angers tramway.

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COLA_1202350_PORTFOLIO_GB.indd 60 16/03/12 10:21 Colas Group 61

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COLA_1202350_PORTFOLIO_GB.indd 62 16/03/12 10:21 CROATIA Installing guardrails and applying road marking on the Istrie Highway. INDONESIA Refurbishing the access road to the Bontang mining site in Borneo.

Colas Group 63

COLA_1202350_PORTFOLIO_GB.indd 63 16/03/12 10:21 FRANCE Construction as part of an Engineering, Procurement, Construction and Commissioning (EPCC) contract of a natural gas compressor unit in Hauterives. FRANCE Renewing ballast on the high speed train line between Le Creusot and Saint-Émiland.

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COLA_1202350_PORTFOLIO_GB.indd 66 16/03/12 10:21 FRANCE Testing road marking products at the Campus for Science and Techniques in Magny-les-Hameaux.

MOROCCO Refurbishing a section of the Rabat-Kenitra Highway, using reclaimed asphalt pavement (RAP).

Colas Group 67

COLA_1202350_PORTFOLIO_GB.indd 67 16/03/12 10:21 DENMARK FRANCE Widening a section of Motorway M3 Redesigning the Carrefour des Cascades to six lanes near Copenhagen, using in the Bois de Boulogne, in Paris, noise-reducing mix. using mixes with plant-based binders.

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COLA_1202350_PORTFOLIO_GB.indd 69 16/03/12 10:21 FRANCE Refurbishing roadways in the tunnel under the Parc des Princes stadium in Paris.

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COLA_1202350_PORTFOLIO_GB.indd 70 16/03/12 10:21 Colas Group 71

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COLA_1202350_PORTFOLIO_GB.indd 72 16/03/12 10:21 GABON Building access roads to the Libreville stadium as part of the 2012 Africa Cup of Nations.

SWITZERLAND Construction of a bike path using light-colored asphalt mix in La Tour-de-Peilz.

Colas Group 73

COLA_1202350_PORTFOLIO_GB.indd 73 16/03/12 10:21 GREAT BRITAIN FRANCE Refurbishing the Clarence Esplanade in Redesigning the access roads to the new Portsmouth, as part of the road upgrading stadium in Lille, using 3E® + R warm mix with and maintenance PFI (Private Finance Initiative) reclaimed asphalt pavement and Nanosoft® signed in 2004 for a duration of 25 years. noise-reducing asphalt mix.

74 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 74 16/03/12 10:21 Colas Group 75

COLA_1202350_PORTFOLIO_GB.indd 75 16/03/12 10:21 FRANCE High quality urban development in downtown Poitiers.

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COLA_1202350_PORTFOLIO_GB.indd 76 16/03/12 10:21 Colas Group 77

COLA_1202350_PORTFOLIO_GB.indd 77 16/03/12 10:21 Colas Group MANAGEMENT

HERVÉ LE BOUC Chairman, CEO

Thierry MONTOUCHÉ Director, Secretary General

Philippe TOURNIER Human Resources Sophie BAUDOUX Chief Information Offi cer Jean-Yves BIGNON Risk and Insurance Michel BOLTZ Railways Audit Patrick GUÉNOLÉ Philippe BRISSONNEAU Deputy Managing Director, Equipment President, Colas Rail Alain CLOTTE Chief Legal Offi cer Jérôme DUSSERE Chief Bitumen Offi cer Samuel GUILLON Finance Henri MOLLERON Environment Gilles NICOLLE Accounting Philippe RAFFIN Techniques, Research and Development Sophie SADELER Corporate Communication

Lito ACHIMASTOS Marketing Pierre CALVIN Prospects and Institutional Relations Rémy DESMOULIN Concessions and Major Projects Jean LALO Procurement

Other activity Georges MATIS President of Société de la Raffi nerie de Dunkerque (SRD)

78 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 78 16/03/12 10:21 ROADS NORTH INTERNATIONAL FRANCE AMERICA (excluding the Americas)

Thierry GENESTAR Louis GABANNA Jacques LEOST Director, Director, Director, Managing Director, Roads France Managing Director, North America Managing Director, International Waterproofi ng (Smac) (excluding the Americas) Safety and signaling (Aximum) Pipelines (Spac)

Jean-Claude DUCAMP Laurent LE BOULC’H Deputy Managing Director, Deputy Managing Director Management and Administration Administration and Finances

Jean-Paul BROSSARD Georges AUSSEIL Christophe DA-POïAN Deputy Managing Director Deputy Managing Director, Deputy Managing Director, Indian Ocean, Caribbean, Philippe DECARNIN United States French Guiana, Middle East, Deputy Managing Director Jacques MICHEL southern Africa, Pacifi c Rim Deputy Managing Director, Canada Daniel DUCROIX Waterproofi ng Deputy Managing Director, central Europe Christian LAVEDRINE Deputy Managing Director, Thierry LE ROCH’ President, Smac Deputy Managing Director, North Africa, West Africa, central Africa, Near East Jacques PASTOR Deputy Managing Director, Asia, Australia Frédéric ROUSSEL Deputy Managing Director, Northern Europe, Safety and signaling (Aximum)

Colas Group 79

COLA_1202350_PORTFOLIO_GB.indd 79 16/03/12 10:21 Roads FRANCE

Thierry GENESTAR Director, Managing Director, Roads France Waterproofi ng (Smac)

Jean-Claude DUCAMP Deputy Managing Director, Management and Administration

Jean-Paul BROSSARD Deputy Managing Director Philippe DECARNIN Deputy Managing Director

Roads Martine BOURDON Joël HAMON President, Colas Nord-Picardie President, Screg Ouest Thierry CAUSSEMILLE Pascal MARIDET President, Colas Sud-Ouest President, Screg Nord-Picardie Bruno CHAMBON Thierry MÉLINE President, Screg Île-de-France – Normandie President, Colas Midi-Méditerranée Daniel DUPUY Christian RAIMONDI President, Colas Rhône-Alpes – Auvergne President, Sacer Atlantique Philippe DURAND Richard RUEDA President, Screg Sud-Ouest President, Sacer Sud-Est Philippe GUILMANT Bernard SALA President, Screg Sud-Est President, Colas Île-de-France – Normandie Christophe GUY Pascal TROUF President, Colas Est President, Sacer Paris-Nord-Est Patrice HALTEBOURG Jean VIDAL President, Screg Est President, Colas Centre-Ouest

Waterproofi ng Christian LAVEDRINE Deputy Managing Director, President, Smac

80 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 80 16/03/12 10:21 North AMERICA

Louis GABANNA Director, Managing Director, North America

Georges AUSSEIL Deputy Managing Director, President, Colas Inc. Jacques MICHEL Deputy Managing Director, Vice-President, Operations, ColasCanada Inc.

UNITED STATES CANADA Georges AUSSEIL Louis GABANNA Deputy Managing Director, President, ColasCanada Inc. President, Colas Inc. Jacques MICHEL Deputy Managing Director, Jean-Luc BEGASSE de DHAEM Vice-President, Operations, ColasCanada Inc. Vice-President and CFO, Colas Inc. James WEEKS Senior Vice-President, Colas Inc. Jean-Yves LLENAS Gordon CRAWLEY Vice-President and CFO, Vice-President, Colas Inc. ColasCanada Inc. Victor SERRI Normand BÉDARD Vice-President, Colas Inc. Vice-President, Operations, ColasCanada Inc. Jerry BUSHELMAN President, Simon Contractors Ken DAY President, Terus Construction Ltd Robert DOUCET President, Barrett Industries Doug ELLETT Corporation President, E Construction Ltd John KULKA Terry GALE President, HRI Inc. President, Standard General Inc. – Calgary Robert LAND President, Reeves Construction Chris GREENWOOD Company President, Standard General Inc. – Edmonton David MARTINEZ President, Sully-Miller Contracting Daniel PELNEAULT Company President, Sintra Inc. Ric NEUBERT Curtis PROSKO President, Delta Companies Inc. President, Canadian Road Builders Inc. Ben NORTHEY William TURNER President, Colaska Inc. President, Wapiti Gravel Suppliers Stuart PATTERSON President, Branscome Inc.

Colas Group 81

COLA_1202350_PORTFOLIO_GB.indd 81 16/03/12 10:21 International (excluding the Americas)

Jacques LEOST NORTHERN EUROPE Director, Frédéric ROUSSEL Managing Director, International Deputy Managing Director Northern Europe (excluding the Americas) Safety and signaling (Aximum) Safety and signaling (Aximum) Pipelines (Spac) Belgium Yvo DERDAELE, General Manager, Colas Belgium

Laurent LE BOULC’H Denmark Deputy Managing Director, Hans Oluf KROG, General Manager, Administration and Finances Colas Danmark

Iceland Christophe DA-POïAN Sigthor SIGURDSSON, Manager, M.H. Colas Deputy Managing Director, Indian Ocean, Caribbean, French Guiana, Ireland Middle East, southern Africa, Liam TALBOT, Chief Executive, Pacifi c Rim Colas Teoranta Daniel DUCROIX Isle of Man Deputy Managing Director, central Europe Stephen LOWE, Director Thierry LE ROCH’ Switzerland Jean BEAUVERD, President, Colas Suisse Deputy Managing Director North Africa, West Africa, central Africa, Near East United Kingdom Lee RUSHBROOKE, Chief Executive, Colas Ltd Jacques PASTOR Deputy Managing Director, Asia, Australia Safety and signaling Frédéric ROUSSEL Christophe MITRIDATI Deputy Managing Director, Northern Europe, President, Aximum Safety and signaling (Aximum)

Pipelines CENTRAL EUROPE Benoît CHAUVIN Daniel DUCROIX President, Spac Deputy Managing Director, central Europe

Austria Andreas WIRTH, Manager Croatia Sinisa KOSCAK, General Manager, Cesta Varazdin

Czech Republic and Slovakia Francis GRASS, General Area Manager, CZ and SK Ivo SIMEK, Manager, Czech Republic Serge CAVASINO, Manager, Slovakia Hungary István SOKORAI, General Manager, Colas Hungaria

Poland Marek LORECKI, Manager Romania Jean-Baptiste GUENET, Manager

82 Colas Group

COLA_1202350_PORTFOLIO_GB.indd 82 16/03/12 10:21 INDIAN OCEAN, CARIBBEAN NORTH AFRICA, WEST AFRICA, AND FRENCH GUIANA, MIDDLE EAST, CENTRAL AFRICA, NEAR EAST SOUTHERN AFRICA, PACIFIC RIM Thierry LE ROCH’ Christophe DA-POÏAN Deputy Managing Director Deputy Managing Director, North Africa, West Africa, central Africa, Near East Indian Ocean, Caribbean, French Guiana, Middle East, southern Africa, North Africa Pacifi c Rim Morocco Indian Ocean, Southern Africa Jean-Yves LE BORGNE, Manager Pierre MAJORAL West and Central Africa Regional Manager Didier CALBRY Madagascar Regional Manager Guillaume BASTIEN, Manager, Colas Madagascar Benin Mauritius Stéphane KNEBEL, Manager, Colas Benin Mario DALLA FAVERA, Manager, Colas Maurice Jean-Christophe DEUX, Manager, GML Gabon Stéphane MUTH, Manager, SRCG Mayotte Boris DUVERGER, Manager, Colas Mayotte Ivory Coast Philippe EPONON, Manager Reunion Island Frédéric GARDES, President, GTOI Togo Karim HAMDAN, Manager South Africa/Namibia/Zambia/Kenya Thierry MADELON, Manager, Colas South Africa Near East Caribbean and French Guiana Turkey Engin TATAROGLU, President, Enfalt Jérôme BELLEMIN Regional Manager Jean-Marie MAILLET Industries Manager ASIA, AUSTRALIA French Guiana Jacques PASTOR Éric CORDONNIER, Manager, SBEG and its subsidiaries Deputy Managing Director, Asia, Australia Guadeloupe Hugues de CHAMPS Nicolas GALBOIS, Manager, Colas Guadeloupe Manager, Thailand, China, India Martinique Christophe VOY Laurent BARSE, President, Colas Martinique Manager, Indonesia, Vietnam

Middle East Australia Daniel ATBIR Thierry DEFRENE Manager, Middle East General Manager, Colas Australia Group Djibouti Ian WILLIS, CEO, SAMI Brice CHEVALIER, Manager, Colas Djibouti India Oman Sanjay GROVER, CEO, Hincol Stéphane BRABAN, Manager Indonesia Victor SITORUS, VP, Director, Wasco Pacifi c Rim Ilham MARDANIS, VP Director, ABS New Caledonia South Korea Laurent DEMASLES, Manager, SCNC J. I. LEE, Representative Director, ISCO Thailand/China/Malaysia/Cambodia Chaiwat SRIVALWAT, Managing Director, Tasco Vietnam Le TAM, Deputy General Director, ADCo

Colas Group 83

COLA_1202350_PORTFOLIO_GB.indd 83 16/03/12 10:21 DESIGN AND PRODUCTION

PHOTOS Cover photo: Baloon Photo – Chairman’s portrait: Antoine Poupel (p.2) – Photos of “The year in review”: Sébastien Arbour (p.45), Joachim Bertrand (p.44-50-65-70), Jean-Dominique Billaud (p.60), Francis Bocquet (p.75), Marcel Boudan (p.64), Mahen Bujun (p.58), Pascal Calmettes (p.51), Jean-François Chapuis/Architect Ateliers Jean Nouvel (p.57) Walter Choroszewski (p.52), Cyrille Coussat (p.53), Morten Corneliussen (p.68), Hervé Douris (p.46), Dominique Giannelli (p.72-73), Pierre-François Grosjean (p.74), Marek Kaczmarczyk (p.59), Foto Kurti (p.61), Patrice Laurent (p.42), Alain Montaufier (p.76), Stigmate Photography (p.54), Balint Porneczi (p.48), Laurent Rothan (p.56), Philippe Stroppa (p.66), Une Terre d’images (p.69), Patrice Thébault (p.67), Bohdan Warchomij (p.49), Laurent Wargon (p.63).

This report including the booklet are printed on Condat silk certified PEFC, from a durable management policies of forests.

COLA_1202350_PORTFOLIO_GB.indd 84 16/03/12 10:21 COLA_1202350_PORTFOLIO_GB_couv.indd 2 19/03/12 17:46 7, place René-Clair 92653 Boulogne-Billancourt 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 RCS Nanterre 55202531402325

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