RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 1

Cre and

Ceg prov bus gen 3 b 26,0

As a Ceg syst infra

Pres Ceg at a and the

E A C In Te H Group M Activity Report 2006 RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 2

Creator of solutions and services

Cegelec is an international group providing technological services to businesses and local authorities, generating annual sales of approximately 3 billion euros and with 26,000 employees.

As a creator of solutions and services, Cegelec designs, installs and maintains systems and sub-systems for industry, , and the buiding sector.

Present in more than 30 countries , Cegelec supports its customers at all stages of their local, multi-site, and international projects in CONTENTS the following areas :

Energy, Electricity Automation, Instrumentation and 01— Chairman's message Control 2006 : A very promising transition year Information and Communication Technologies 05 — Highlights 09 — Human resources HVAC and Mechanical 11 — Cegelec and industry Maintenance and Services 14 — Cegelec and 17 — Cegelec and the service sector 19 — Cegelec and maintenance RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 3

\ \ \ \ DEM. REP. OF THE CONGO \ \ \ CEGELEC \ \ WORLDWIDE \ TUNISIA \ ASIA

LATIN AMERICA EUROPE

\ \ \ \ MEXICO \ \ \ \ \ \ \ \ \ LUXEMBURG \ THE \ \ \ RUSSIA \ SLOVAKIA \ \

CHAIRMAN

FINANCE, IT, HUMAN RESOURCES, LEGAL, RISK MANAGEMENT, SOURCING, COMMUNICATION

CFB CEB CGB CWB GSS FRANCE EUROPE GERMANY WORLD WIDE SYSTEMS & SERVICES

PARIS BELGIUM SOUTH MOROCCO ENERGY / INFRASTRUCTURE MID EAST THE NETHERLANDS NORTH ALGERIA OIL & GAS SOUTH-EAST SPAIN WEST BAHRAIN QATAR / OMAN CIGMA NORTH & EAST POLAND EAST BRAZIL WEST SWITZERLAND AUSTRIA MEXICO CNDT SOUTH-WEST SPACE INDONESIA SPECIALISED SINGAPORE ACTIVITIES RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 4

BUSINESS BREAKDOWN

SALES SALES SALES BY SECTOR BY BUSINESS UNIT BY DESTINATION COUNTRY

23.8% Industry 16.5% CEB 57% France 28.5% Infrastructure 19% GSS 31% Europe (outside France) 16.5% Service sector 45.3% CFB 12% Rest of the world S 31.2% Maintenance 11.2% CGB 8% CWB

EXECUTIVE COMMITTEE

PIERRE MASSON MICHEL CANTET CLAUDE DARMON PHILIPPE HANOUET CWB Business President CFB Business President Group Chairman Chief Financial Officer MICHEL DESSARTHE PASCAL QUINT XAVIER CHAUMONT CHRISTOPH SLABIK Human Resources Director General Counsel CEB Business President CGB Business President BERNARD LEMOINE GSS Business President RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 1

CEGELEC / GROUP ACTIVITY REPORT 2006

01 CHAIRMAN'S MESSAGE

2006: Claude DARMON , A highly promising Cegelec Group Chairman The 2006 results transition year also highlight the new drive n many respects, 2006 was a transition year for Cegelec. The of our company, organisation of a secondary LMBO in March with a new invest - partly due to I ment fund, LBO France, helped maintain our independence, which the improvement is viewed by our customers as a major strength. At the same time, this change in our economic of shareholder was accompanied by new strategic guidelines, especially with environment regard to external growth. as a whole, but also to a dynamic In 2006, we reaped the benefits of the action plans consistently applied in commercial recent years, whether in terms of specific sector plans or programmes con - approach and cerning the whole company. Particularly noteworthy examples include an the inroads to ambitious programme of improvement project management, CegelecPRO, the new markets gained effective foundation of our corporate culture, and several cost-cutting pro - grammes. by our teams.

Our results for 2006, however, also highlight the new drive of our company, partly due to the improvement in our economic environment as a whole, but also to a dynamic commercial approach and the inroads to new markets gained by our teams.

NINE-MONTH FINANCIAL YEAR

The year was atypical from a financial viewpoint, covering a 9-month fiscal year starting from the date of the company's acquisition by LBO France. Direct com - parisons with the results of prior financial years are therefore hard to make.

Over the 9 months of financial year 2006, by comparison with the same period of the preceding year, orders made a spectacular leap of 12% to 2.3 billion euros. The signature of several major contracts largely explains this exceptional growth, but the volume of recurring business also increased, all of which augurs favourably for the growth of our business in 2007. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 2

CEGELEC / GROUP ACTIVITY REPORT 2006

02 Cegelec won CHAIRMAN'S several major MESSAGE contracts in 2006, which show the growing role played by our Group in a number of sectors identified as of top priority, on the international level.

Sales, over this same 9-month period, stand at the same level, 2.3 billion euros, up 5%. Excluding Germany, where we continued our proactive policy of scal - ing down our operations, enabling our subsidiary to post a second consecutive year in the black, sales would post 7% growth.

EBIT, again over 9 months, stands at 92 million euros, representing 4.1% of sales. This performance confirms the validity of our policy of greater selectivity in the choice of projects. Free cash flow, for its part, amounts to 119 million euros, up 15 million euros over a comparable period.

NUMEROUS SUCCESSES IN OUR PRIORITY SECTORS CFB Cegelec won several major contracts in 2006, which show the growing role played by our Group in a number of sectors identified as of top priority, on the CEGELEC international level. FRANCE BUSINESS

In France, a buoyant economic In energy, mention should be made of the contracts for the construction of environment and good commercial electromechanical equipment for two new hydroelectric power stations in momentum allowed organic growth of about 5% to be posted in 2006 Morocco and for renovation of several control and monitoring systems for EDF by comparison with the preceding stations in France. period, irrespective of certain changes in the consolidation base (transfer of the Swiss operations Major electrical systems will also be produced by Cegelec, especially for the to CEB and the Transport centre future EPR plant of EDF in Flamanville, and for five gas compression stations for of competence to GSS). In industry in particular, the regular decline GDF in France; a household refuse incineration plant in western Germany; the in CFB’s sales in recent years was huge Riopol petroleum complex and the new ThyssenKrupp steel mill in Brazil. curbed. In the infrastructure area, CFB won “cross fertilisation” contracts with GSS in transport The contract signed with Sonatrach in Algeria, covering about twenty petro - and with CWB in Algeria. leum facilities, is a sign of recognition of Cegelec's expertise in the significantly Hospitals and hotels continue to play a major role in the service growing market for protection of sensitive premises and infrastructure. We can sector. Shipbuilding and Defence also mention, in France, the uranium enrichment plants Georges Besse I and II are also important sectors of activity for CFB. Maintenance, for its part, and the multinational headquarters of the rapid response force in Lille. is a business in its own right, in which Cegelec has specific The latter project provides a good illustration of the credibility acquired by expertise, and now represents 25% of CFB's sales. Through external Cegelec with the Armed Forces, in France but also abroad and with NATO. growth, CFB incorporated new Several contracts were signed in 2006, in particular for strategic transmission sys - expertise in electricity and mechanical maintenance in tems and modular shelters for command centres. the paper-milling sector. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 3

CEGELEC / GROUP ACTIVITY REPORT 2006

03

CEB CEGELEC EUROPE BUSINESS

CEB was formed in April 2006 to pool all the Group's European operations, with the exception of France and Germany where the volume of business justifies the existence of an independent organisation. Benelux (Belgium, Netherlands, Luxemburg) accounts for around 80% of CEB's sales. The other countries in which the entity has an active presence are Spain, Poland, and Switzerland, its In transport, our Group won many new orders in 2006 for the construction or presence being greatly reinforced in the latter country by the renovation of electrical infrastructure for urban transport networks, in Marseilles, acquisition of TSA Telecom in July Lyons and Rotterdam in particular, and for the modernisation or supply of new 2006. With the Belgian company traction equipment, in Eastern and Central Europe. Ensysta, acquired in September, CEB achieved extremely strong external growth, these two Our maintenance operations are progressing significantly, accounting for one- companies together accounting for full-year sales of more than third of our sales. In particular, Cegelec provides multi-technology maintenance 70 million euros. Note that in for the infrastructure of the Quai Branly museum in Paris, inaugurated in the sum - December 2006 the Group sold its mer of 2006. Our Group also significantly consolidated its position in postal UK operations to the management team, considering that, due to sorting centre maintenance in France. their nature, they would no longer enable it to achieve critical size in the UK market. MEETING CUSTOMER EXPECTATIONS CGB Cegelec meets the concerns of its customers, with particular regard to the sensi - CEGELEC tive issue of optimising energy costs faced by all sectors of activity, from industry GERMANY BUSINESS to services, including local authorities. At the same time, our Group continues to strengthen its expertise in sources, particularly in wind Driven by the strength of its exports and capital investment, the German power, biomass, and bioethanol. economy experienced significant growth in 2006: apart from 2.5% GDP growth, some segments, Cegelec adopts a proactive attitude to the new forms of partnership that are especially electricity distribution developing with local government bodies. In 2006, our Group signed one of the and production, post positive trends. In this context, CGB confirms its very first public-private partnership (PPP) contracts for public lighting in France; recovery, underway for two years in early 2007, Cegelec became an official member of the consortium set up for now, with respectable performance the construction and concession operation of a new express tramway line in Lyons. in all its operations (including the Austrian market and Cegelec's activities in aeronautics and space). The Group pursues an active policy of support for its customers in their inter - To profit fully from this momentum, in 2006 CGB launched a programme national expansion, in particular for Dow Chemical and Heineken in Spain, and for change called C 3, one Pernod Ricard in Cuba. component of which concerns the entity's growth. In 2007, CGB will continue to deploy Our policy of exchange of expertise and cross fertilisation enabled us, for example, throughout its organisation a to win the contract for renovation of the renowned Mamounia Hotel in Marrakech proactive marketing and commercial approach from focused for the air conditioning systems, a booming market in Morocco. centres of competence in buoyant market segments, a comprehensive cost optimisation programme designed to reinforce its competitiveness, and a policy of adaptation of expertise to meet market change. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 4

CEGELEC / GROUP ACTIVITY REPORT 2006

04 CHAIRMAN'S MESSAGE

GSS GLOBAL SYSTEMS & SERVICES

In a favourable economic environment, GSS confirmed the validity of the Group's cross-fertilisation of expertise model for winning several big projects, in particular in Algeria where Cegelec made a remarkable breakthrough. 2006 was in line with the objectives and saw a very marked improvement in the orders level at end of year. The year saw GSS make a strong EXTERNAL GROWTH MOMENTUM comeback in the nuclear power sector, with several major contracts. The Energy Division also won a large 2006 also saw new external growth momentum. Cegelec made three major contract for two new hydroelectric acquisitions, allowing sustainable development of the company and reinforcing power stations in Morocco and for additional wind-power facilities in our foundations. France. Without reaching the record levels of 2005, Cegelec did good business in the oil sector. Linked to GSS TSA Telecom in Switzerland consolidates our positions in telecommunications, during the year, Cegelec Transport especially radiocommunications. Ensysta in Belgium enables us to broaden our continued to be positioned as a major service offering to include the food processing and pharmaceutical industries. player in urban transport. In 2006, Cegelec also acquired the French Finally, the French maintenance division of Solystic positions us as a major player postal sorting centre maintenance in a business with high growth potential, automated material handling. business of Solystic, allowing GSS to establish a strong automated material handling department. This external growth policy will continue in 2007, always with the objectives of strengthening our market share and acquiring additional expertise to achieve coherent expansion of our service offering and generate major synergies within CWB the Group. CEGELEC WORLDWIDE BUSINESS This policy of strengthening our operations where we already have strong market positions or major expertise has led us to re-examine our sphere of action. CWB had a very good year in 2006, with 23% growth in new orders and Accordingly, in December 2006, we sold to the management team our UK ope - 14% sales growth. In Morocco, CWB rations, largely focused on motor repair. took advantage of its position as a leader to deploy a strategy of diversification in several sectors (rail, HVAC engineering). STRONG INVOLVEMENT Bahrain served as a base to expand Cegelec's operations in Qatar. In Brazil, OF MANAGERS AND STAFF where Cegelec has the position of leader in industrial maintenance, The organisation of a secondary LMBO was an opportunity to renew, and reinforce, business remained sustained thanks to the large potential of the domestic our policy of involvement of managers and all the employees through a stake in market, stimulated by food and the company's capital. The number of manager partners doubled and, with the agriculture, the oil sector and mining. In Mexico, Cegelec established creation of appropriate mutual funds, almost one in every three employees chose permanent relations with CFE and to invest in their company. several domestic and European industrial players. In Indonesia, the oil sector still accounts for more than half On behalf of all the members of the Executive Committee, I should like to thank of sales. In Algeria, Cegelec won several them for this sign of confidence in the Group's future. major infrastructure contracts. CWB continues to develop its regional influence from the countries in which it is established, such as Morocco, for example, with successes in Mauritania and Senegal. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 5

CEGELEC / GROUP ACTIVITY REPORT 2006

HIGHLIGHTS / 05 2006

January 2006 February 2006 April 2006

Brazil Spain Morocco

In the State of Sao Paulo, Brazil, Heineken awards Cegelec the Against strong international Cegelec wins a first global turnkey construction of the drying competition, Cegelec wins the contract maintenance contract in the system for its Seville project. for turnkey construction of the two pharmaceutical sector for a three-year Engineering, design, delivery, hydroelectric power stations of Tanafnit period with Novartis. installation, testing, and start-up (2 x 9 MW) and El Borj (2 x 13 MW). form part of the contract. Dem. Republic of the Spain Congo

With a view to the shutdown of a unit, Cegelec is in charge of the renovation Nuclenor entrusts Cegelec with of the high-voltage line (220 kV) maintenance of the electricity and connecting the Inga hydroelectric instrumentation part of its Garoña power station to the capital Kinshasa. nuclear power station, near Burgos. The line, 350 km long, involves 750 high-voltage pylons. The aim of the project is to increase the reliability of March 2006 this virtually unique incoming energy feeder in the capital. Russia

Part two of the Gazprom Astrakhan project is implemented with the Germany installation of 4 servers, 7 SCADA, a telephony network, 370 km of optical In the Bremen centre, Cegelec builds fibre and a security system. This project the electrical systems and all the employs 40 people in the Frankfurt systems relating to safety, access and Moscow plants. control and fire detection, for the new radio broadcasting building. Polynesia

New Caledonia In Papeete, start of multidisciplinary maintenance work on La Railleuse, a Cegelec is awarded the extension 400-tonne patrol boat. Similar project of the Anse Vata treatment plant management and overall engineering in Noumea, from 7,000 to 25,000 PE work has been previously carried out May 2006 (population equivalents), with the successfully on La Rieuse, La Boudeuse, obligation of keeping it in service and La Fougueuse. throughout the works (30-month Belgium period). These works will also allow treatment Spain GlaxoSmithKline entrusts Cegelec of bacteriological pollution with the HVAC engineering of its new by ultraviolet rays. Maintenance management of the Wavre unit dedicated to vaccine luggage transport system for the new production, and the clean utilities for terminal T4 of Madrid Barajas airport. a new building in which quality control is performed, the largest of its kind in Europe. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 6

CEGELEC / GROUP ACTIVITY REPORT 2006

China France Austria

06 Following the supply, in March, Groupe Flammarion, a major player in Cegelec is in charge of electrical of a SCADA system designed for the French publishing industry, awards systems for the building of the Jintan underground gas storage Faceo facility management for its new Rennweg Center in Vienna, system, Petrochina requests Cegelec head office in Paris. for SEB Immobilien. to perform additional work on the The scope of the contract covers all contracts for the Jining gas pipeline corporate services including mail (press and the West-East gas pipeline. and copyright registration services), France which is an extremely sensitive activity for a publisher that publishes about Already very active in urban June 2006 700 titles each year. transport for 17 French cities, Cegelec is awarded the biggest of the electrical contracts for the extension France of metro line 1 in Marseilles. This contract covers fixed equipment Inauguration in Paris of the Quai Branly and the power supply for museum (40,000 m²), for which traction systems. Cegelec executed all the work packages (electricity and HVAC) and now provides multiservice maintenance September 2006 (IT services, facility management with Faceo and technical maintenance). Belgium

Cegelec acquires the Belgian company Ensysta, to strengthen its position in production equipment for the food processing industry, pharmaceuticals and the fine chemicals sector. July 2006 Brazil

Switzerland ThyssenKrupp awards Cegelec and ABB a contract for the procurement, With the acquisition of the engineering, commissioning and Swiss company TSA Telecom, operational support for the electrical the Group becomes the leading systems of the rolling mills for its new systems integrator in French- steel mill in the State of Rio de Janeiro. speaking Switzerland in the areas of telecommunications, Germany radiocommunications, security and supervision and monitoring systems. Supply of reliable, flexible automation solutions, control and monitoring systems, and electric power supply Bulgaria for the waste incineration plants of Knapsack and Grossräschen, Cegelec signs a contract with the on behalf of Von Roll Inova. Czech company Inekon for the supply of 18 electrical equipment units designed to modernise the traction France vehicles for the tramways in the city of Sofia. Through close cooperation between its French and Belgian subsidiaries, Cegelec wins the HVAC engineering August 2006 (heating, ventilation, air conditioning and smoke control) and electricity work packages for Valenciennes Hospital France Morocco (72,000 m²), in the north of France. For AREA, Société des Autoroutes The famous La Mamounia luxury hotel Rhône-Alpes, Cegelec provides a in Marrakech is in the hands of Building Management System (BMS) Cegelec for renovation of the air and completely renovates all the conditioning, controlled mechanical equipment of the Epine tunnel, located ventilation, and smoke control systems. between Lyons and Chambéry, a nerve During the works, teams of French and centre for winter holiday traffic. Moroccan workers relay one another round-the-clock. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 7

CEGELEC / GROUP ACTIVITY REPORT 2006

Spain France

Navantia, the leader in the Spanish To the 160 or so health facilities 07 shipbuilding sector, awards Cegelec already benefiting from the multi- a contract for general maintenance of technology expertise of Cegelec all its establishments in southern Spain, is added the Nantes university teaching for a three-year period. hospital (36,000 m²) for renovation of its fire safety system. France Qatar In partnership with Suez and he Cegelec is responsible for Bouygues, Cegelec wins a major instrumentation and electrical systems contract for general electrical systems for the infrastructure that by autumn and physical protection of the new t 2007 will house more than 8000 Ras uranium enrichment plant, Georges Gas workers in Qatar. Besse 2, on Eurodif's Pierrelatte site for .

November 2006 Nigeria

France Since 1989, as a partner with Bilfinger & Berger in the Nigerian capital Abuja, Cegelec acquires the maintenance Cegelec is in charge of the installation Algeria division of Solystic, a company of transformers, the power supply specialised in overall management of cabinets for buildings, and especially nt Sonatrach, the leading hydrocarbon postal sorting equipment and video street lighting (500 km). production company in Algeria and coding systems. Africa, awards Cegelec a security management contract for about twenty of its gas production sites Bahrain in Algeria, applying its Cegelec Secure solution. Cegelec signs two contracts for new real estate complexes: , all the electrical systems for a vast October 2006 shopping and leisure centre and for l a tourist site called Lulu Island with w hotels, exhibition centres, villas, etc. ro. France

Cegelec wins one of the very first public-private partnership contracts in France: from design to management of the facilities required for public lighting of the town of Castelnau-le-Lez (3500 light spots). France A contract signed for a 15-year period. Cegelec delivers the third conditional portion (152 shelters) of a total Germany of 738 modular command centre shelters for the Army. After upgrading the ground lighting for two runways, the airport operating company Fraport renews France its confidence in Cegelec for the modernisation of the luggage sorting Delivery of the experimental chamber and check-in systems for terminal C, in Netherlands of the Laser Megajoule, a gigantic Frankfurt. aluminium sphere 10 m in diameter, Following the RandstadRail project, to the CEA-CESTA site near Bordeaux. tel the Dutch urban public transport This unique item represents a company RET awards Cegelec a technological prowess in sheet metal contract for renovation of the electric work, welding and geometrical power supply systems of the Erasmus measurement of a vacuum chamber. ms. metro line in Rotterdam. and r RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 8

CEGELEC / GROUP ACTIVITY REPORT 2006

December 2006 Germany 08 Near the Dutch border, in Emlichheim, Cegelec renews its agreements with the Mexico Cegelec wins a major contract for the CNES and Arianespace for the electrical systems and instrumentation operation and maintenance of the In the State of Chiapas, where of a new household waste incineration facilities (EPCU and ELA 3) of the the work is complicated by the jungle plant. Equipped with two furnaces and Guiana space centre until 2011. With environment, the leading Mexican having a production capacity of around 150 employees on the site electricity producer, CFE, awards 360,000 tonnes, this will be one of permanently, Cegelec is one of the Cegelec a turnkey contract for the largest of the type in Germany. leading private companies present at the electromechanical work involved the European Space Centre in Kourou. in transporting the energy produced by the Angostura hydroelectric power station.

France

Gaz de France, via its GRTgaz unit, selects the Litwin-Cegelec-Friedlander consortium for the turnkey construction of five new natural gas compression stations. This contract, of an unprecedented scale, provides for 60,000 hours of design engineering and work supervision, and 100,000 hours of erection work.

Singapore France

Cegelec is awarded an engineering The Foreign & Commonwealth and overall project management Office awards Faceo the facility contract for “Vendémiaire”, a management contract for the British surveillance frigate provided with a Embassy in Paris. This is the first time propelled platform and weapon that an FCO embassy adopts this type systems and equipment. of organisation. A special feature of this project is that it is performed in two locations: in Noumea and Singapore.

France

Construction for EDF of the general electrical systems for the future Indonesia third-generation nuclear power station (EPR) in Flamanville, in partnership Total E&P Indonesia places an order with Spie. for the provision of electricity distribution, telecom and monitoring and security systems for a complex Nigeria of 3 platforms for Tunu 11 South. Scarcely one year after the creation of an oil and gas industry job training France centre for Star Deep Water Nigeria, Belgium a fully-owned subsidiary of Chevron ABN-Amro, the No. 11 bank group Nigeria, the second phase of the For ExxonMobil, turnkey delivery in Europe, awards Faceo a facility project (installation of a simulator, of an electrical sub-station, to supply management contract for its Paris head on-site support, etc.) is signed. the high-voltage grid (150/36 Kvolt) office and eleven representative sales The first 95 graduates receive their connecting a cogeneration station, offices in the provinces. Cegelec/OPITO certificate. in Antwerp. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 9

CEGELEC / GROUP ACTIVITY REPORT 2006

the

h

u.

HUMAN RESOURCES Cegelec increased its recruitment resources in several countries in 2006. Cegelec University, an instrument for dissemination of a uniform corporate culture, played a very active role in integration and training. A new employee stock- ownership plan allows everyone to profit from the Group's expansion. h e pe

A policy egelec has a total workforce of some the system of voluntary international service in the com - 26,000 people in its subsidiaries, locat - pany (“VIE”), as it exists in France, represents a nurs - of excellence C ed in more than thirty countries around ery of talents that the Group gladly uses. the world. The company operates in a number of high- growth sectors in various markets (building, oil, etc.) for In line with the pride of being part of Cegelec, co- which jobs such as project management engi neers and option is now a key recruitment channel, being driven design office engineers, confirmed technicians and even by the employees, who have a direct knowledge of international project managers with the experience the company. The new programmes established in early needed to manage projects in sometimes hostile envi - 2007 are not only campaigns of stimulation, accompa- ronments, are in strong demand. Attracting and main - nied by gifts and financial compensation, but also means taining the loyalty of quality profiles was one of the of strengthening group spirit, as in France which makes priority missions of the Group in 2006. its 14,000 employees the “players in our expansion”.

IMPROVING OUTSIDE INTENSIFYING IN-HOUSE MOBILITY y RECRUITMENT PROCESSES Since 2002, a Charter lays down the rules for mobili - To improve the effectiveness of its recruitment, in 2006 ty, which include the confidentiality of applications and Cegelec overhauled its organisation in several countries the obligation of providing geographic mobility sup - to strengthen the recruitment function. port for employees. Job vacancies, in particular, are announced via the Intranet. In this way, for example, Cegelec also established closer links with a smaller num - in 2006 most of the middle management positions ber of high schools of engineering. In addition, for stu - for new projects in Algeria and Morocco were filled by dents attracted by Cegelec's highly international nature, in-house staff. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 10

CEGELEC / GROUP ACTIVITY REPORT 2006

10

EMPLOYEE STOCK OWNERSHIP Petrobras-Reduc in Brazil an award for the “Best com - In 2006, Cegelec continued a wide-ranging policy pany for Health, Safety, Environment”. Another exam - applying to all its employees to have them benefit from ple is in Germany, where the accident statistics have the fruits of the Group's growth; a similar campaign declined significantly and are well below the national had already been launched at the incorporation of the average. For the second year running, the PCK refin - com pany through an LMBO in 2001. Further to the ery there recognised Cegelec as the best company in savings plan established via mutual funds, an operation its category in the fields of quality, compliance with called ESOS ’06, more than one in every three employees deadlines, accidents, and safety. is now a shareholder of the Group, underlining their confidence in and attachment to the company. DISSEMINATING A UNIFORM Moreover, the number of managers with a direct CULTURE stake in the company's share capital has doubled by Good integration of employees is an essential concern. comparison with the first LMBO. Cegelec University accordingly again held several two- day integration seminars in 2006, mainly for young ORGANISE UPGRADING OF SKILLS recruits, while a specific programme was set up for BY TRAINING employees holding higher management positions, in The Group's main training instrument is Cegelec particular those coming from companies acquired by FORMATION University. In 2006, this organisation received more the Group in 2006. —The Cegelec University is a than 1300 people in its various training programmes: powerful vehicle for corporate culture and skills sharing. management of profit centres, project management, The various training programmes at Cegelec University site management, sales and marketing, sourcing, and help disseminate a common culture and promote the integration programmes. During the year, training exchange of good practices between the participants. courses in project management, in particular, were devel - In this sense, they fit in perfectly with the approach of oped to make better allowance for the various types of the CegelecPRO programme, on which they are based, projects within the company and the employees ' level a programme which has gone beyond its original objec - of experience. Training of site managers was also signif - tive of controlling margin drift to establish a continual icantly reinforced in 2006. During the year, Cegelec improvement approach, a real base for the Group's University also endeavoured to provide direct support for corporate culture. the teams set up for projects in progress, so that the peo - ple involved can use their skills together more efficiently. The “nursery course”, as practised actively in the Group in France, Belgium, Spain, and Morocco, for example, Apart from Cegelec University, training programmes is another way of effectively integrating new employ - were opened to develop in-house resources by helping ees. These integration programmes are not reserved for those employees who have the will and the skill to young engineers. Since 2006, integration seminars and take on greater responsibilities. management conventions for clerical staff, technicians, and supervisors are organised in France. SAFETY, A FACTOR OF EXCELLENCE In addition to the health and safety rules specific to each country or region that must be applied by all the sub - sidiaries, compliance with strict safety standards is essential in all the Group's businesses.

Its efforts can be measured in the oil sector in particular , where customers' expectations are extremely high. For example, in 2006 Cegelec was granted an award by Total for five accident-free years running on the Girassol oil platform off the shores of Angola, for which the Group provides maintenance, and it received from RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 11

CEGELEC / GROUP ACTIVITY REPORT 2006

11

INDUSTRY In 2006, Cegelec continued to expand in the oil sector and, in Algeria, it was awarded contracts for the security management of several sensitive sites by Sonatrach. The Group expanded its expertise by taking over the company Ensysta in order to increase its penetration of the food processing, pharmaceuticals, and fine chemicals sectors.

o expand its range of business services The acquisition of Ensysta also gives it privileged Cegelec invests in the food processing, pharmaceuticals access to China where the company has several major to profit more T and fine chemicals sectors, in September customers. Cegelec acquired the Belgian firm Ensysta, whose cus - from the recovery tomers include the biggest players in the sector (GSK, In 2006, in particular, Ensysta won a significant contract Janssen Pharmaceutica, Pfizer, Dupont de Nemours, for “clean utilities” systems in the Genzyme plant, one Vyncolit, Suiker Unie Centrale, Campina, InBev, etc.). In so of the world leaders in biotechnologies, located in Geel, doing, Cegelec enriches its expertise in production equip - Belgium. Ensysta supplied the industrial ingredients ment and automatic systems and places itself in a posi - branch (DMV) of Campina, one of the largest dairy tion to propose comprehensive services including energy product firms in Europe, with the software for several of solutions, electrical systems, and HVAC engineering. its production units in Veghel, located in the Netherlands. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 12

CEGELEC / GROUP ACTIVITY REPORT 2006

12

SECURITY MANAGEMENT OF won in November for security management of the INDUSTRIAL FACILITIES: A CEGELEC major work zone on the Charles de Gaulle aircraft car - SPECIALITY rier in Toulon. Security management of about twenty Sonatrach gas facilities in Algeria is one of the biggest contracts won Finally, several large organisations and industrial groups by Cegelec in 2006. This represents major recognition such as Areva and Airbus Industrie have called on of the expertise of Cegelec Secure and its Evolynx prod - Cegelec to standardise access control for their various uct, which is particularly suitable for handling multisite buildings, extremely sensitive management head offices applications in a demanding environment. This con - or strategic technical centres. The Cegelec Secure solu - tract also demonstrates the Group's ability to carry out tion has also been adopted for major service sector large-scale projects to tight deadlines, because this facilities such as BNP Paribas bank, Marseilles hospitals work has to be performed in only twelve months. or again the Tribunal de Grande instance (High Court) Among the other contracts for protection of sensitive of Bordeaux. Taking its security requirements ever fur - facilities should be mentioned the facilities of the ther, Cegelec adds to its role as integrator the role of Atomic Energy Commission (CEA) in Bordeaux and specifying authority for innovative solutions. Marcoule, or the uranium enrichment plants Georges Besse I and the future George Besse II for Eurodif THE OIL SECTOR, DRIVER OF (Areva) on the Tricastin site, where Cegelec also imple - INTERNATIONAL EXPANSION ments the general electrical systems, in partnership Cegelec's operations in the oil sector have expanded with Ineo and ETDE. Just as revealing of its accredita - to include all levels of the chain, from upstream (explo - tion with the French Ministry of Defence is the contract ration, offshore and onshore production) to down - stream (refining, petrochemicals and chemicals), and RIO POLIMEROS including product transport, storage and loading oper - —Cegelec performed the electrical work for ations. In China, the Group is building up its business the largest petrochemical complex in South America, RioPolimeros. with Petrochina by supplying, among other things, a SCADA system designed for the Jintan underground gas storage system, and through additional works for the Jining gas pipeline and the West-East gas pipeline. In Indonesia, where the oil sector still accounts for more than half of the sales of Cegelec, Total E&P has award - ed it a contract for execution of the electricity distri - bution, telecom and monitoring and security systems for three platforms for the Tunu gas deposit.

A feature of the year was also the order of five new compression stations for GRT Gaz, a subsidiary of Gaz de France, that Cegelec will deliver on a turnkey basis as part of a consortium led by Litwin. In Germany, Cegelec will supply the automatic control equipment for gasometers for the Gasag company in Berlin.

The firm was also awarded a contract to modernise the control and monitoring system for two GASCO plants in Abu Dhabi, and to automate the new set of gas production wells and the gas collection and transfer network in the region of Astrakhan in Russia, on behalf of Gazprom. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 13

CEGELEC / GROUP ACTIVITY REPORT 2006

TRAINING PROGRAMME OIL AND GAS IN NIGERIA 13

THYSSENKRUPP CEGELEC STILL WELL ESTABLISHED —Cegelec is in charge of the electrical systems for IN BRAZIL the new rolling mills being built by ThyssenKrupp in Brazil. In Brazil, Cegelec, which in 2006 completed the electri - At the end of January 2006, about cal systems work for Riopol, the largest petrochemical 90 Nigerian students of Chevron complex in South America, was awarded, in a consor - began a recognised full-time one- tium with ABB, the electrical systems contract for the year training programme leading to a diploma meeting the Cogent new ThyssenKrupp steel mill in the State of Rio de OPITO standards. A new session, Janeiro. Under this contract, the Group will perform organised with a third more engineering, procurement, erection and commissioning students, began in April 2007. and will provide operating support for the electrical sys - “The difficulty was to set up tems of the new rolling mills, designed to produce in only a few weeks a targeted programme on a scale never attai - 5million tonnes of steel per year. ned before in Nigeria” , explains Philippe Gastineau, Managing In New Caledonia, Cegelec won the contract for the Director Cegelec Oil & Gas Services. electrical systems of the concentrator for the Tiebaghi The group drew on its solid nickel mines. experience in the area of training, since each year it trains about 1,000 people in the oil sector SUPPORTING INDUSTRIAL throughout the world. The Cegelec FIRMS IN THEIR INTERNATIONAL instructors have been recruited EXPANSION from the four corners of the globe In Mexico, Cegelec has established permanent rela - (Nigeria, Romania, United Kingdom, France, etc.), thereby tionships with domestic industrial players (Luiz Min, allowing sharing of experience Pemex) and with European players (Saint-Gobain, and skills. Cegelec also took part Sanofi, Degrémont, Daimler-Chrysler), which it sup - in management of the training ports in their international expansion. By this same facilities. The students live on approach, thanks to synergies between its subsidiaries, a campus that not only offers classrooms provided with state-of- Cegelec has won significant orders in Spain for two the-art equipment, but also has its major Dutch customers, Dow Chemical and Heineken. own leisure infrastructure (tennis court, swimming pool, etc.). Another emblematic example of the support provided “Initially rather mistrustful, for the international expansion of its customers is the the students soon supported the programme enthusiastically, PSA Peugeot-Citroën plant in Trnava (Slovakia), for even making suggestions which Cegelec installed the electrical infrastructure, for improvements for the the fluid production and distribution infrastructure, and following sessions” , emphasised the fire detection-protection system. The plant came Philippe Gastineau. into operation in 2006. The Group also installed body- in-white lines there on behalf of the French companies PEUGEOT-CITROËN TMS and PCI. With the latter, Cegelec in 2006 won two —The new PSA plant in Trnava, Slovakia. other automation and contracts for PSA in Spain, on its Vigo and Madrid locations. In Germany, moreover, Cegelec was in charge of production line electrical systems for Audi and Daimler-Chrysler. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 14

CEGELEC / GROUP ACTIVITY REPORT 2006

14

INFRASTRUCTURE Consolidating its positions in its traditional fields, Cegelec also made three remarkable breakthroughs in 2006: strong comeback in nuclear power; broadening of its telecommunications offering, with the takeover of the company TSA Telecom; and the development of new expertise in the area of public-private partnerships.

egelec has been positioned for some Again in renewable energies, the Group has acquired years now in the construction of medi - special expertise in bio-refineries, based on its expert C um-power electric power stations, ther - knowledge of the industrial processes of the sugar mal or wind-power. For example, in 2006: against chain – with turnkey contracts in Germany, Poland and strong competition, the Group was awarded the con - Serbia. Cegelec was also awarded a contract for elec - tract for the electricity and mechanical work packages, trical systems for the biodiesel plants of Magdebourg, A market the control and monitoring system, the evacuation sta - in Germany, and Nogent-sur-Seine in France. tion and the secondary work for two driven by new hydroelectric power stations in the High Atlas, in NUCLEAR POWER: PICKUP new vigour Morocco. Cegelec also won a contract for construction IN CAPITAL EXPENDITURE of a new 5.4 MW hydropower unit as part of the Santa The year also saw Cegelec make a strong comeback Gertrudis power station in Mexico, on behalf of Pemex. in the nuclear power sector, with several major contracts. The Group was awarded a contract for In France, Cegelec maintains its positions in the con - renovation of part of the control and monitoring struction of wind-power farm infrastructure, with about systems for 34 units (900 MW series) on 9 of the ten facilities commissioned in 2006, and in biomass. 20 nuclear sites of EDF in France, in a consortium with RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 15

CEGELEC / GROUP ACTIVITY REPORT 2006

DS&S. This contract, for the next 15 years, confirms the position held by Cegelec in the small circle of major suppliers for the nuclear industry. 15

Under another high-profile contract, the French electricity supplier commissioned Cegelec, in a consortium with Spie, to provide general electrical systems for the Flamanville third-generation EPR power plant, where its proven ability to manage large projects played a decisive NUCLEAR POWER role. The project is noteworthy for its size, comprising —Cegelec is a member of the small circle of major no less than 1900 kilometres of cables, but also for contractors for the nuclear industry. the procedure adopted: a highly innovative installation software is used which goes directly to the modelling stage. Expertise with this tool is now an additional ELECTRICAL FACILITIES —The Epine Tunnel completely asset for Cegelec. renovated and secured.

In the area of power grids, Cegelec also received an order for a very-high-voltage line for Sonelgaz in Algeria. It is renovating the high-voltage line linking the Inga hydro - electric power station to Kinshasa, in the Democratic Republic of the Congo, and continues to deploy optical fibre networks on high-voltage pylons in Mexico. Under the “NordNed” project for electricity transport between Norway and the Netherlands, the Group has undertaken construction of the biggest electricity conversion station in the Netherlands.

MAJOR PLAYER IN THE AREA OF TRANSPORT Cegelec won the contract for the electric sub-stations In air transport, Cegelec was awarded contracts by the in Rotterdam for extension of the current metro line rapidly expanding Charleroi Brussels-South airport in and for the future Erasmus line, after completing for the Belgium, for air conditioning for its new terminal, and same customer the installation of all the electric sub- by Frankfurt airport for modernisation of the luggage stations for the high-speed tramway line linking sorting system for its Terminal C. Rotterdam, The Hague and Zoetermeer. Cegelec is also a specialist in electrical and safety facil - In France, the Group signed in Marseilles a contract for ities for motorway and rail tunnels. In Germany, the Ems electrical systems as part of the renovation and extension tunnel and the structure located on motorway A17, of metro line 1. In Lyons, it is taking part in the con - between Dresden and Prague, were equipped with struction and operation of the express tramway line Leslys ultra-modern safety systems. In France, Cegelec in 2006 WATER TREATMENT via the Rhône Express consortium. Cegelec is also a major completed stage two of renovation of the Epine tun - —In The Hague, after construction and red supplier of traction equipment and services for tramway nel and won the contract for renovation of the heavy renovation, two interlinked stations pert renovation, and for new rolling stock, with, among other current systems and air conditioning for the famous will be able to treat around 50 million litres of sewage per hour. gar things, the delivery of 18 traction systems to the urban Monaco tunnel. and transport company of Sofia, in Bulgaria. ec - ENVIRONMENT: CEGELEC'S ACTIVITIES rg, In the railway sector, Cegelec was one of the companies IN WATER AND WASTE SERVICES commissioned to install the catenary systems for the Several major orders were taken in Germany for new TGV-East high-speed train line in France. Given household refuse incineration plants. The Evikon plant that the commercial speed could be as high as 350 km/h, in Emlichheim, for which Cegelec is executing the specific constraints related to the mechanical tension of elec trical systems, will have the largest production ack the cables had to be taking into account by Cegelec capacity in the country. The Group was also awarded ajor personnel. In Morocco in particular, the company the automatic control systems, control and monitoring for continued to extend its cooperation with the Moroccan systems and electric power supply for the Knapsack ng Railway company (ONCF), which awarded it the and Grossräschen plants. In the Netherlands, Cegelec the construction of five sub-stations and the installation of was also awarded a contract for furnace renovation with 150 kilometres of catenary systems. for AVR, in Rotterdam. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 16

CEGELEC / GROUP ACTIVITY REPORT 2006

RANDSTADRAIL: AN INNOVATIVE PROCESS IN THE NETHERLANDS

In the water sector, Cegelec is taking part in projects TELECOMMUNICATIONS: A BROADER for the construction and renovation of treatment OFFERING WITH THE INCORPORATION plants, especially in the Netherlands. It also won the OF TSA TELECOM contract for extension of the largest treatment plant In the civil sector, Cegelec strengthened its offering of New Caledonia, in Noumea. These works will, in par - in telecommunications, radiocommunications and

“Fourteen sub-stations in 14 months, ticular, allow treatment of bacteriological pollution by security, supervision and monitoring systems with the quite an exploit!” ultraviolet rays. acquisition, in July, of the Swiss company TSA Telecom. According to David Langejan, TSA TELECOM Netherlands manager of site prepara - LOCAL GOVERNMENT BODIES: —With the acquisition of TSA Telecom, Cegelec tion, the 2006 delivery by Cegelec of THE POTENTIAL OF PPP becomes the leading systems integrator in the electrical systems for the French-speaking Switzerland. RandstadRail project, the rapid transit Sensitive to the growing concern of its customers for line linking Rotterdam, The Hague energy savings, Cegelec is a member of the European and Zoetermeer, was possible only Commission's “Greenlight” programme: during the because the sub-stations were delive - year the company won the overall management for the red in the form of shelters. Designed, installed public lighting base of Bessancourt in France, manufactured and tested in France, these containers were then delivered from equipment installation through to the purchase of “ready for use” to the Netherlands. energy, for the period 2006-2013. In the local govern - ment market, public-private partnerships (PPPs) represent This exploit was made possible “by a new form of cooperation for which Cegelec has acquired combining the skills of our teams in expertise in financial engineering and the setting up of the Netherlands and our Cegelec Transport centre of expertise in Lyons consortia. Accordingly, in 2006 the company won one (France)” , explains David Langejan. of the very first PPP contracts in France for operation and All the expertise of the two entities maintenance of the public lighting system in Castelnau- was deployed with a single goal: to le-Lez, near Montpellier. build in record time 14 sub-stations which could only have been delivered in two or three years with a more DEFENCE: A TRADITIONAL BUSINESS conventional operating procedure. WITH UNEXPECTED SPIN-OFFS “We used a genuine industrial pro - In the defence sector, Cegelec, in particular, supplied a duction process, with a “plug and third set of 158 high-availability, rapidly-deployable com - Already present in the Confederation for more than play” concept quite unusual for this mand centres to the French Army, and guard houses to 25 years, in so doing Cegelec has become the leading type of project. In this way, all the shelters were tested in-plant in their the Belgian Army. Cegelec was also awarded a contract systems integrator in French-speaking Switzerland final conditions of use, including tests for security management of the Lille Citadel, head - and has acquired additional skills enabling it to extend under load, with a test bench specially quarters of the NATO Rapid Response Force France. its service offering for all the Group's customers. This designed for the purpose,” is the case, in particular, for setting-up public and specifies Franck Lepoivre, Head of Cegelec was also awarded a contract for modernisation private radiocommunication networks, shared-resource Department in charge of the Urban Public Transport business in Cegelec of the Jupiter network, the telecommunications network digital networks based on Tetra and Tetrapol Transport. The objective was met : of the Strategic Command. technologies, wireless local loops (WLL) and tunnel and “commercial start-up of the line was underground links. in line with the customer's expecta - An unexpected spin-off of Cegelec's defence activity is tions, and in accordance with our light potable water production stations, which were ini - commitments” added Fabrice Vermot Desroches, Senior Project Manager at tially designed to meet the needs of the Armed Forces. Cegelec Transport. A further order Today, they increasingly interest governments and was awarded to Cegelec by RET, ope - humanitarian organisations to respond, at an econom - rator of the Rotterdam transport sys - ically viable cost, to the needs of displaced populations tems, for complete renovation of the and populations living in regions suffering from water electric power supply systems (8 sub- stations) for the Erasmus metro line. stress, far from any distribution network. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 17

CEGELEC / GROUP ACTIVITY REPORT 2006

17

R ON ing and the om.

SERVICE SECTOR In 2006, Cegelec was awarded a contract for the modernisation of more than ten or so hospitals in France. These are added to the new prestige complexes, hotels and shopping centres that the Group is to equip in Morocco and Bahrain, in particular. Cegelec has both expertise in major projects and technical expertise in electricity and HVAC engineering. han ing and end This and rce pol hanks in particular to the "Hospital 2007" HOTELS AND SHOPPING CENTRES and plan in France, Cegelec continued to fill its Hotels are also a sector that is still dynamic, as T order book in 2007 with more than illustrated by the Intercontinental Hotel of Bora Bora in Cegelec equips ten major contracts signed in Dijon, Lyons, Caen, Polynesia where, after the contract for construction, public and St Quentin, Roubaix, Clermont Ferrand, Roanne, etc. Cegelec won the installation of electrical, fluids and air Cegelec was also awarded the electricity and HVAC conditioning equipment designed for the thalassothe - private buildings engineering work packages for the large hospital of rapy infrastructure. Another luxury hotel, La Mamounia Valenciennes (72,000 m²), and contracts for renovation in Marrakech, the largest hotel complex in Morocco, of the fire safety system of the General Hospital in entrusted the renovation of its air conditioning system Nantes and for the construction of a clinic in Le Mans. to Cegelec's Franco-Moroccan teams. In this country, In all, the Group worked on some 160 facilities during Cegelec took advantage of its position as leader to the past year! deploy a strategy of expansion in the service sector with, RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 18

CEGELEC / GROUP ACTIVITY REPORT 2006

18 LA MAMOUNIA FRANCO-MOROCCAN SYNERGY

in addition, the air conditioning system for the Casa City head office of Radio Bremen, for the logistic centre Center hotel complex in Casablanca and the work of insurance company HUK-Coburg, and for the packages for the future Kempinski Royal Palace in Agadir. building of the Rennweg Center in Vienna for SEB Along the same lines, in Bahrain Cegelec signed two Immobilien. In France, the future head office of CGA- contracts for new real estate complexes: all the Energy CGM, the third largest player in the world in container work packages for the Bahrain City Center, a vast shop - ship transport, is considered a key project in the With its 287 rooms and suites, its three villas, shops, restaurants, ping and leisure centre, and for the tourist site of Lulu revitalisation of Marseilles. Cegelec was awarded lounges and kitchens, the famous Island, with hotels, exhibition centres, villas, etc. a contract for all the heavy current and weak current Marrakech luxury hotel, systems in this elegant and futuristic high-rise building La Mamounia, is currently HEAD OFFICES (height of 137 m). undergoing renovation. In Germany, the Group continued its policy of selecti - The air conditioning, controlled mechanical ventilation and smoke vity, winning the execution of the electrical and secu - control contracts were awarded rity systems (access control and fire detection) for the to Cegelec in 2006.

“Our Moroccan and French teams joined forces to meet this major challenge, relaying one another VIENNA round-the-clock to allow this —Execution of electrical legendary place to be reopened and security systems for the Rennweg Center project as soon as possible”, explains in Vienna (16,900 m 2). Patrice Barcelone, Head of the Major Projects Department in Cegelec Paris. To the technical expertise and resources employed by Cegelec Paris can be added a firm local establishment, VALENCIENNES knowledge of the customer and —The French and Belgian “a very favourable reputation in subsidiaries pool their skills the hotel sector (Kempinski, la for the Valenciennes Hospital Palmeraie, la Medina, Casa City project in northern France. Center, and so on)” , emphasises Abdellah Sabri, Department Manager in Cegelec Morocco.

Apart from all the advantages related to successful cross fertilisation, this project will also allow the recruitment in Morocco of employees in the engineering offices and for the construction sites, who, after supervised training, will form a powerful pool of resources for carrying out other large-scale projects. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 19

CEGELEC / GROUP ACTIVITY REPORT 2006

19

MAINTENANCE A major player in industrial maintenance, especially in Brazil, Cegelec has also become an established leader in France in automated material handling maintenance. The Group has also renewed its contracts with the Kourou space centre. The Quai Branly museum in Paris, for its part, awarded it a contract for multi-technology maintenance of its facilities.

n November, following the acquisition transfer of objects at extremely high speeds. Alongside of the branch of Solystic dedicated to postal sorting, the Group has for several years now per - I maintenance of French postal sorting formed note sorter maintenance for central banks, in Cegelec is centres, Cegelec made a significant breakthrough in particular the Deutsche Bundesbank, and maintenance this sector, taking charge of a dozen mail sorting cen - of luggage sorting systems for several European air - expanding over tres for La Poste in France, in addition to the three par - ports, to which terminal D of Madrid Barajas was a wider area cel sorting centres for which the company already added in March. carried out maintenance. INDUSTRIAL MAINTENANCE Cegelec thus acquired straightaway the position of leader In Brazil, where Cegelec has the position of leader in in the high-growth market of automated material industrial maintenance, with more than 75 multi-year handling, which covers all operations of automatic contracts, business remained sustained thanks to the RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 20

CEGELEC / GROUP ACTIVITY REPORT 2006

major potential represented by the domestic market, MAINTENANCE stimulated by food and agriculture, the oil sector and LA POSTE the mining sector. SORTING CENTRES IN FRANCE Cegelec also won a contract with Novartis Biociências SA in the Brazilian pharmaceutical sector.

CEGELEC BECOMES AN AVAILABILITY PROVIDER IN DEFENCE From a mere service provider, Cegelec has become an availability provider. For example, in 2006, the Group was awarded a contract by the French Navy to man - age the maintenance and repair of the patrol boat La LA RAILLEUSE Railleuse, in Papeete, and the frigate Vendémiaire, in —Careening and repair of a French Navy patrol boat Noumea and Singapore, taking into account the client’s wish to have the work performed as close as possible to the vessels' home ports. In both cases, this is a com - prehensive turn key service with project management “When the most modern mail and a performance guarantee. sorting machines can process up to 40,000 letters per hour, the In 2006, the leading Spanish naval shipbuilding com - slightest operating interruption pany, Navantia, awarded Cegelec a contract for gen - can have immediate repercussions eral maintenance of all its establishments in southern on mail distribution” , explains Spain for a three-year period. Bernard Klein, Key Account Cegelec was also selected by the general inspectorate of Manager. Corrective and preventive maintenance of this the French armed forces to analyse the methods for main - equipment is therefore a capital taining all the Army's equipment in operational condition. issue with which Cegelec has This analysis led to recommendations for reorganisation. been faced since 2006, the year Finally, Cegelec extended the maintenance work it had in which the Group won the been entrusted with to all the facilities of Nexter (for - maintenance contracts for a dozen mail sorting centres merly GIAT). of La Poste in France. SPACE: CEGELEC RENEWS “Dirty optical sensors, mechanical ITS CONTRACTS problems, the slightest grain of Cegelec has reorganised its operations in the space sec - Faceo, a joint subsidiary with Thalès, provides facility salt can have major consequences if the equipment is not properly tor around Cegelec Space, a subsidiary of Cegelec Ger - management for the Quai Branly museum and achieved maintained” , continues Bernard many (CGB). In 2006, the company renewed its several successes in 2006, including a contract for the Klein. What is required, therefore, industrial service contracts with Arianespace and the British Embassy in Paris, in December. are teams that have an intimate CNES for the Guiana Space Centre. Cegelec has been Winning this contract is especially prestigious in that the knowledge of extremely contracted until 2011 to continue to provide operation Foreign & Commonwealth Office, which manages sophisticated machines and that can combine high technical and maintenance of fluids and mechanical systems for British Embassies, had never yet adopted this organi - expertise with tips learned each the Ariane 5 launch unit, maintenance and operation sation procedure. day in the field. of systems for the preparation of payloads (satellites), In 2006, a large number of international companies also Further to the acquisition of and project management and technical document man - entrusted Faceo with facility management of their head Solystic's French maintenance agement. office: SygmaKalon, manufacturer and distributor of the division in November 2006, in France alone Cegelec has a For all activities combined, Cegelec Space, with more than Ripolin and La Seigneurie paint brands, in January; pub - team of more than 100 experts 130 employees present in Kourou, is one of the leading lishing group Flammarion, which, in June, awarded in automated material handling, private companies present at the Guiana Space Cen tre. Faceo the contract for all corporate services including which also includes operations mail (press and copyright registration services), which such as luggage sorting and MULTI-TECHNOLOGY MAINTENANCE is an extremely sensitive activity for a publisher that the sorting of bank notes, for example. After building the electrical systems and air condition - publishes about 700 titles each year; and ABN-Amro, ing, Cegelec is now in charge of the multi-technology the No. 11 bank group in Europe, which, in addition to maintenance of all the facilities of the Quai Branly muse - its head office, awarded Faceo a contract for its um, a superb 40,000 m² building that opened to the eleven representative sales offices in the provinces. public in June 2006. This contract adds another presti - In November 2005, Faceo had won the facility gious building to those that Cegelec already manages, management of the 150 France Télécom Boutiques, such as the Montparnasse Tower, the Areva building through an offer specifically prepared for companies and the AGF building in Paris. having a point-of-sale network. RA_CEGELEC_2006_GB:Mise en page 1 4/07/07 17:00 Page 21 . n a h C l u a P : s g n i w a r D . X d n a c a h o B r o g I , d o r i G c u L - n a e J , i t r e p m a L c i r E , c e l e g e C : s e r u t c i P - 8 9 7 9 8 4 9 4 1 ) 0 ( 3 3 + s e u q i g é t a r t S s n o i t i d É s e L : n o i t c u d o r p d n a n g i s e D - 7 0 0 2 C E L E G E C ©

489, avenue Louise 1050 Brussels BELGIUM T. +32 (0)2 642 30 00 F. +32 (0) 2 642 31 27

72, avenue de la Liberté 92739 Nanterre Cedex FRANCE T. +33 (0)1 55 51 40 00 F. +33 (0)1 55 51 40 01

www.cegelec.com