ANNUAL REPORT Shareholders’ Meeting of April 20, 2021
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT Shareholders’ Meeting of April 20, 2021 RACO020_RFA2020_EN_BAT.indb 1 15/04/2021 10:12 Contents Management report 6 1. Profile 6 2. Non-Financial Performance Statement 2020 9 3. Business activity 63 4. Important events since the end of the fiscal year 68 5. Outlook 69 6. Innovation and R&D 69 7. Risk factors 71 8. Disputes and litigation 74 9. Internal control of accounting and financial information 76 10. Duty of vigilance 79 11. Equity and controlling interests in companies having their registered office in France 79 12. Branches 80 13. Intercompany loans 80 14. Information on payment periods 81 15. Share capital 82 16. Earnings and appropriation of earnings 85 Results of the Company for the last five fiscal years 86 Consolidated financial statements of the Colas Group 87 Statutory Auditors’ report on the consolidated financial statements 135 Colas Financial Statements 141 Statutory Auditors’ report on the parent company financial statements 155 Statutory Auditors’ special report on regulated agreements 160 Statutory Auditors’ report on the reduction in share capital 162 Independent third party’s report on the consolidated non-financial statement 163 2 COLAS 2020 / RACO020_RFA2020_EN_BAT.indb 2 15/04/2021 10:12 Special Report on share subscription and/or purchase options granted to all or some salaried employees of the Company (article L.225-184 of the French Commercial Code) 167 1. Share subscription and/or purchase options granted by the Company (Article L.225-177 of the French Commercial Code) 168 2. Share subscription and/or purchase options granted by affiliated companies (Article L.225-180 of the French Commercial Code) 168 Special report on bonus awards of existing or new shares to all or some categories of salaried employees of the Company (Article L.225-197-4 of the French Commercial Code) 171 1. Bonus shares awarded by the Company (Article L.225-197-1 of the French Commercial Code 172 2. Bonus shares awarded by affiliated companies (Article L.225-197-2 of the French Commercial Code) 172 Report on corporate governance (Article L.225-37 of the French Commercial Code) 174 1. Governance 174 2. Compensation of Executive company officers and Directors 191 3. Agreements entered into between executives or shareholders of Colas and its direct or indirect subsidiaries 209 4. Summary table of delegations of powers concerning capital increases 209 5. Information that may have an impact in the event of a public offer 211 Resolutions 213 1. Agenda 214 2. Report on the resolutions to be submitted to the Shareholders’ Meeting 215 3. Proposed resolutions 219 Certification of the Annual Financial Report 229 / COLAS 2020 3 RACO020_RFA2020_EN_BAT.indb 3 15/04/2021 10:12 CHAIRMAN AND CEO as of February 16, 2021 Frédéric Gardès BOARD OF DIRECTORS as of April 20, 2021 (1) DIRECTORS Frédéric Gardès Chairman and CEO Olivier Bouygues Société Bouygues Colette Lewiner (2) Director Permanent Director representative: Stéphanie Rivoal (2) Pascal Grangé Olivier Roussat Director Director Catherine Ronge (2) Director Arnauld Van Eeckhout Director STATUTORY AUDITORS as of April 20, 2021 (1) Mazars PricewaterhouseCoopers Audit Statutory Auditor Statutory Auditor (1) Subject to approval by the General Meeting of Shareholders of April 20, 2021. (2) Independent director. 4 COLAS 2020 / RACO020_RFA2020_EN_BAT.indb 4 15/04/2021 10:12 MANAGEMENT REPORT MANAGEMENT REPORT / COLAS 2020 5 RACO020_RFA2020_EN_BAT.indb 5 15/04/2021 10:12 Management report 1. PROFILE Colas has one mission: to imagine, build and maintain also manufactures, installs and maintains safety and signaling sustainable transport infrastructure from its local roots on these infrastructures. The degree of seasonality of this around the world. business varies from one country to the next. Backed by a global network of 800 local construction This activity also includes small-scale civil engineering and business units and 3,000 material production units in drainage work often linked to road projects, as well as more more than 50 countries on five continents, the Group’s complex civil engineering jobs (major structures) required 55,000 employees act locally to connect communities and when bidding for road or highway contracts. foster exchanges for today and tomorrow. Lastly, in certain geographic zones, the Group’s road work Colas’ ambition is to be the world leader in innovative, companies also carry out building activities including new sustainable mobility solutions. construction and renovation projects in the Paris region and the Indian Ocean and Pacific, where this is often an indispensable addition to road work, and the demolition and deconstruction of existing buildings in France under the 1.1. Business Activities brand Premys. Colas works in the construction and maintenance of transport The Group’s road construction and maintenance business infrastructure through three main business segments: covers a very large number of smaller projects, as well as projects of greater size and complexity. — Roads (construction and maintenance of road infrastruc- ture, including road safety and signaling); These projects can be carried out in the form of complex — Construction materials (production and recycling); contracts such as concessions, P3 (Public-Private Partnership), — Railways. PFI (Private Finance Initiative) and ASC (Asset Support Contract). In connection with such projects, Colas sometimes It also operates in Water and Energy transport. acquires stakes, mostly minority, in concession companies Colas performs more than 60,000 projects each year around for highway and airport infrastructure, urban roadways, and the world, the majority of which involve recurrent local public transport. Colas Projects, an entity dedicated to major business. projects, provides subsidiaries with expertise in studies and construction. 1.1.1. Roads Colas performs its roads business at almost every one of its locations worldwide: mainland France (tightknit network The Group’s main business activity involves the construction of 300 profit centers throughout the country), the British and maintenance of road infrastructure. The Roads business Isles (United Kingdom and Ireland), continental Europe is very diverse, covering a wide range of jobs and skill sets. (in Belgium, Denmark, Iceland, Switzerland, and, Central Each year, via more than 56,000 projects worldwide, Colas Europe, mainly Croatia, Hungary, Poland, Czech Republic, builds and maintains roads and highways, and also works Romania, Slovakia), the United States (mainly sixteen states), on airfield runways and aprons, seaports, industrial sites, Canada (all provinces and territories), all French overseas logistics hubs and commercial premises, city streets and departments and regions (Martinique, Guadeloupe, French urban development (pedestrian walkways, city squares), Guiana, Mayotte, Réunion), the Indian Ocean (Madagascar, reserved-lane public transport (tramways, metros, bus the Comoros, Mauritius), Africa (mainly Morocco, West Africa rapid transit), recreational amenities (bicycle paths, motor and Southern Africa), Middle East (United Arab Emirates, racing tracks, sports facilities) and environmental protection Oman, Qatar), Australia, New Caledonia, Latin America (Chile, (retention ponds, landscaping, wind farms), etc. The Group Peru), and less frequently, Asia (Thailand). 6 COLAS 2020 / MANAGEMENT REPORT RACO020_RFA2020_EN_BAT.indb 6 15/04/2021 10:12 1.1.2. Construction materials 1.1.4. Other activities Upstream of road construction and maintenance, Colas operates a major production and recycling activity for road WATER & ENERGY TRANSPORT construction materials (aggregates, emulsions and binders, This activity is operated by Spac. It includes the laying and asphalt mix, ready-mix concrete, bitumen) throughout its maintenance of pipes and pipelines for the transport of locations around the world. These materials are consumed or water and energy (oil, natural gas, electricity, heating, air sold to third parties. conditioning), including the construction of turnkey gas compression stations, small-scale civil engineering work and Colas relies on a tight international network made up of industrial services. 478 quarries and gravel pits (of which 79 are jointly owned), 151 emulsions and binder plants, 538 asphalt plants (of which These activities are carried out mainly in France. Spac is 140 are jointly owned), 192 ready-mix concrete plants and a pursuing its international development, most often by relying bitumen production plant (located in Kemaman, Malaysia). on local Colas companies. For the year 2020, the Colas Group sold 89 million tonnes of aggregates (excluding Reclaimed Asphalt Pavement), 2.1 million tonnes of emulsions and binders, 35 million tonnes 1.2. Climate strategy of asphalt mix and 2.6 million cubic meters of ready-mix concrete. Bitumen production represented 1.0 million tonnes. Colas also has a Group share of 2.7 billion tonnes of authorized 1.2.1. Ambition reserves (1) of aggregates (i.e. 30 years of sales, Group share), Faced with the challenges of climate change, Colas is with, in addition, 1.3 billion tonnes of potential reserves (2) as committed to decarbonizing its activities. an additional Group share. Colas also produces road safety and signaling equipment 1.2.2. Targets through its subsidiary Aximum, which has 10 factories in Colas has set itself an ambitious target, compatible with the mainland France and also in the Netherlands. Paris Agreement: reduce its direct greenhouse gas emissions In addition to the