Registration Document Including the Annual Financial Report and the Corporate Social Responsibility Report 2017
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CONSTRUCTIONS INDUSTRIELLES DE LA MÉDITERRANÉE (CNIM) Société anonyme having a Management Board and a Supervisory Board with share capital of €6,056,220 Registered office: 35, Rue de Bassano, 75008 Paris Paris Trade and Companies Register Number 662 043 595 Registration document including the Annual Financial Report and the Corporate Social Responsibility Report 2017 This Registration Document was filed with the Autorité des marchés financiers (French Financial Markets Regulator - AMF) on March 27, 2018, pursuant to Article 212-13 of its General Regulation. It may be used in support of a financial operation in the presence of an operating circular approved by the AMF. This document has been drawn up by the issuer and is binding upon its signatories. 1 CONTENTS Information from the Annual Financial Report is indicated by (AFR) 1 ACTIVITIES, MARKETS, RESULTS, STRATEGY AND OUTLOOK(AFR) 6 1.1 Key figures 6 1.2 Activities and markets, R&D, strategies and outlook, key events and highlights of 2017 7 1.2.1 General overview of the Group 7 1.2.2 Key events and highlights of 2017 12 1.2.3 Environment & Energy Sector 14 1.2.4 Innovation & Systems Sector 29 1.2.5 Principal changes since year end 43 1.2.6 Patents, licenses and trademarks 43 1.2.7 Principal companies in the CNIM Group at December 31, 2017 43 1.3 Risk prevention and management 45 1.3.1 Industrial and environmental risks 45 1.3.2 General business risks 46 1.3.3 Legal risks 48 1.3.4 Financial risks 49 1.3.5 Counterparty risk 50 1.3.6 Liquidity risk 51 1.3.7 IT and asset risks 52 1.3.8 Fraud risk 52 1.3.9 Insurance 53 1.3.10 Human Resources 53 1.4 Group results 54 1.4.1 Highlights of the period under review 54 1.4.2 Business in 2017 54 1.4.3 Consolidated results 57 1.4.4 Definitions 60 1.5 Investments and significant property, plant and equipment 61 1.5.1 The Group's principal fixed assets 61 1.5.2 Group capital expenditure 62 1.5.3 Capital expenditure programme 62 1.6 Group financing - Cash 63 1.6.1 EBITDA 63 1.6.2 Changes in working capital 63 1.6.3 Investments 64 1.6.4 Dividends 64 1.6.5 Group cash position 64 1.6.6 Debt 65 1.6.7 Equity 66 1.6.8 Other elements 66 1.7 Financial statements of CNIM SA 68 1.7.1 Results 68 1.7.2 Cash position 68 1.7.3 Other items 69 2 SHAREHOLDERS & STOCK MARKET LISTING 72 2.1 Shareholders 72 2.1.1 Share capital and voting rights 72 2.2 Stock market listing 78 2.3 Dividends: policy and distribution record 79 2 3 CORPORATE SOCIAL RESPONSIBILITY REPORT 80 3.1 The people of CNIM 81 3.1.1 About us 81 3.1.2 Organization of work 85 3.2 Staff health and safety 87 3.2.1 A priority of the Management Board 87 3.2.2 Expenditure on health and safety 88 3.2.3 Accidents at work and work-related illness 88 3.3 Development of skills 88 3.3.1 Training policies implemented 88 3.3.2 Number of training hours 90 3.3.3 Staff appraisal and career development interviews 90 3.4 Diversity management 90 3.4.1 Measures adopted to promote gender equality 90 3.4.2 Policy on combating discrimination 92 3.5 Promotion of social dialogue 93 3.5.1 Respecting freedom of association and the right to collective bargaining 93 3.5.2 Organization of labor relations 93 3.5.3 Collective labor agreements signed in 2017 94 3.6 Our environmental commitment 95 3.6.1 General policy on environmental management, and QSE policy 95 3.6.2 Employee training and information on environmental protection 97 3.6.3 Provisions and guarantees for environmental risks 97 3.7 Limiting our environmental impact and working to reduce that of our customers 98 3.7.1 Waste management and waste-reduction measures 98 3.7.2 Greenhouse gases and measures to reduce and purify air emissions 101 3.7.3 Sustainable use of resources 106 3.7.4 Contributing to the development of renewable energy use 110 3.7.5 Noise reduction measures 111 3.7.6 Measures taken to conserve biodiversity and soil 112 3.8 CNIM's social engagement 112 3.8.1 Map of stakeholders 112 3.8.2 Impact of the Company's activity on the local economy 112 3.8.3 Consideration of subcontractors and suppliers from a social and environmental viewpoint 113 3.8.4 Contribution to competitiveness clusters 113 3.8.5 Involvement in trade associations and unions 114 3.8.6 Local integration 115 3.9 Ethics and fair practices 116 3.9.1 Action taken to prevent corruption 116 3.10 Respect for human rights 118 3.10.1 Our Values 118 3.10.2 Human rights 118 3.10.3 Other action taken to promote human rights 118 3.11 Methodology of the CNIM Group's CSR report for 2017; External opinion on fairness 119 3.12 Growth of the Group's average total workforce 126 4 CORPORATE GOVERNANCE 127 4.1 Report on Corporate Governance drawn up by the Supervisory Board 127 4.1.1 Corporate Governance 127 4.1.2 List of offices and positions held in all companies during the year ended 31 December 2017 133 4.1.3 Biographies of members of the Management Board and Supervisory Board 140 4.1.4 Convictions, bankruptcies, conflicts of interest and other information 142 3 4.1.5 Remuneration of the corporate officers paid during the year ended 31 December 2017 (Article L.225-37- 3 of the French Commercial Code by reference to Article L.225-68 of the Code) 144 4.1.6 Remuneration of executive corporate officers and proposed resolutions (Articles L.225-82-2 and L.225- 100 of the French Commercial Code) 148 4.1.7 Agreements referred to by Article L. 225-37-4 2 of the French Commercial Code 152 4.1.8 Items likely to have an impact in the event of a public offer 152 4.1.9 Summary table of the delegations in force granted by the General Meeting of Shareholders in the area of capital increases, in application of Articles L.225-129-1 and L.225-129-2 154 4.1.10 Observations of the Supervisory Board on the report of the Management Board (Article L.225-68 sec. 6 of the French Commercial Code) 154 4.2 Internal control and risk management 155 4.2.1 Risk evaluation and risk management processes 155 4.3 Share buy-back programme 160 5 FINANCIAL STATEMENTS 161 5.1 Consolidated financial statements at December 31, 2017(AFR) 161 5.1.1 Consolidated Balance Sheet 161 5.1.2 Consolidated income statement 163 5.1.3 Consolidated statement of comprehensive income 164 5.1.4 Consolidated statement of changes in equity 165 5.1.5 Consolidated statement of cash flows 166 5.1.6 Notes to the consolidated financial statements 167 5.3 Parent company financial statements at December 31, 2017(AFR) 209 5.3.1 Balance sheet 209 5.3.2 Income statement 211 5.3.3 Statement of cash flows 212 5.3.4 Notes to the parent company financial statements 213 6 2018 GENERAL MEETING 234 6.1 Report of the Management Board on the resolutions proposed to the Ordinary and Extraordinary General Meeting of 24 May 2018(AFR) 234 6.2 Resolutions proposed to the Ordinary and Extraordinary General Meeting of 24 May 2018(AFR) 236 6.3 Statutory Auditors’ Report on the consolidated financial statements(AFR) 241 6.4 Statutory Auditors’ Report on the financial statements(AFR) 246 6.5 Statutory Auditors’ special report on related party agreements and commitments 250 7 ADDITIONAL INFORMATION 257 7.1 General information 257 7.1.1 Legal and commercial name of the issuer 257 7.1.2 Place of registration and registration number of the issuer 257 7.1.3 Date of incorporation and lifetime of the issuer 257 7.1.4 Domicile and legal form of the issuer, legislation governing its activities, country 257 7.1.5 Supplementary information in relation to Section 21 of the AMF Regulation 257 7.1.6 Details of the auditors 257 7.2 Bylaws 258 7.2.1 Object of the Company (Article 2 of the bylaws) 258 7.2.2 Provisions of the bylaws concerning the supervisory and management bodies of the Company (Articles 13-17 of the bylaws) 258 7.2.3 Rights, privileges and restrictions associated with shares (Articles 8-11 of the bylaws) 261 7.2.4 Actions required to change shareholders' rights 262 7.2.5 General meetings (Article 19 of the bylaws) 262 7.2.6 Provisions liable to affect control 263 7.2.7 Crossing thresholds (Article 12 of the bylaws) 263 7.2.8 Changes to the share capital (Article 7 of the bylaws) 263 4 7.3 Documents on display 264 7.4 Responsible person(AFR) 265 7.4.1 Person responsible for the registration document 265 7.4.2 Declaration by the person responsible for the registration document 265 8 HISTORY 266 9 CROSS-REFERENCE TABLES 269 9.1 Registration document 269 9.2 Annual financial report 272 5 1 ACTIVITIES, MARKETS, RESULTS, STRATEGY AND OUTLOOK(AFR) 1.1 Key figures The figures in Section 1 are presented in € millions.