Registration 2O17Document including the annual financial report ENGINEERING AND TECHNOLOGY CONSULTING Registration 2O17Document including the annual financial report “This document and the accompanying financial report constitute the ALTEN registration document for 2017. It was filed with the French Financial Markets Authority (Autorité des Marchés Financiers, or AMF) on 27 april 2018, in accordance with Article 212-13 of the AMF General Regulation. It may only be used in support of a fi nancial transaction if accompanied by a securities note authorised by the AMF. Pursuant to Article 28 of Regulation (EC) No. 809/2004, the following information is incorporated by reference in this Registration Document: • The separate and consolidated financial statements at 31 December 2016, and Statutory Auditors’ reports, found on pages 209 to 259 of Registration Document No. D.17-0463, filed with the AMF on 28 April 2017. • The separate and consolidated financial statements at 31 December 2015, and Statutory Auditors’ reports, found on pages 195 to 247 of Registration Document No. n° D.16-0395 filed with the AMF on 25 April 2016 ; This document was prepared by the issuer and the signatories are responsible for its contents. Copies of this Registration Document are available for free at the issuer’s head office (40 avenue André Morizet, 92100 Boulogne-Billancourt), as well as on the issuer’s website (www.alten.com) and on the AMF website (www.amf-france.org).” Registration Document CONTENTS 6 / 04 Interview with Simon Azoulay 05 ALTEN Group governance 05 Board of Directors 06 Executive Committee 07 The Group Management Board 09 Profile 10 Key figures 2017 12 ALTEN in the world 14 The benefits of development 16 1. ALTEN, TECHNOLOGY PARTNER 18 Changes in global R&D and market trends in R&D outsourcing 20 ALTEN’s positioning 21 Range of services 24 2. OUR CUSTOMERS 26 Automotive 28 Rail 30 Aerospace 32 Defence and security 34 Energy and Environmental Management 36 Life and Health sciences 38 Telecommunications and Multimedia 40 Banking/Finance/Insurance 42 3. OPERATIONAL EXCELLENCE AND SUSTAINABLE DEVELOPMENT / 3 Interview with Simon Azoulay What were the highlights of 2017 for ALTEN? in all the countries where we operate with the aim of expanding our positions in Eastern Europe, North America ALTEN reinforced its position as a key player in the and Asia, through organic growth and acquisitions, to Engineering and Technology Consulting sector, with 28,000 achieve over 2,000 engineers per geographical area. In employees at end 2017, including 24,700 engineers, Germany, our top European country in terms of potential revenue of €1.975 billion (up 13%) and an operating profit for outsourcing R&D, we will continue with the successful on activity of nearly 10%. Workpackage transformation, achieve a critical mass of 4,000 engineers and restore the operating margin (≥ 10%). The Group’s organic growth accelerated throughout 2017, in France and internationally, particularly in the last quarter. Lastly, we will consolidate ALTEN’s leadership of our On a mature and competitive market, France newly customers’ transformation programmes in the fields of digital experienced a sustained growth (+10.1%). Internationally, transformation, Big data, Industry 4.0, etc. Our historic growth continued to be strong at +15.6%, half of which positioning in outsourced R&D, Telecoms and IT enables from acquisitions. us to cover the entire embedded systems value chain – Connectivity – Cloud – Data processing – Man-Machine All geographical areas (except UK) were up and international Interface. We are capitalising on this major competitive business now accounts for nearly 54% of the Group’s advantage to seize upon the strong growth in this market. revenue. The operating margin on activity, penalised by a negative calendar effect, remained satisfactory. It rose in the second In conclusion? half to 10.2% of revenue. I am optimistic about the deployment of our three-year In 2017, ALTEN made six international acquisitions, two in plan across all geographical areas. We have all the Germany and Switzerland and four in the United States. A assets that are key to achieve our objectives, especially number of acquisitions initiated in 2017 should be finalised an HR policy that is unique in the market, all the in the first half of 2018. technical expertise required to respond to our customers’ challenges, a mature Technical Department with its A number of internal projects (CRM, HR follow-up and skills Workpackage offering, a network of well-structured and development, project and technical delivery management) high-performance offshore and nearshore delivery centres were successfully completed, optimising the company’s and, lastly, a sound financial structure enabling us to organisation and processes. We also structured our successfully implement our acquisitions policy. nearshore and offshore delivery centres in Morocco, India and Romania. These centres have around 2,000 high- This plan will enable us to maintain an operating profit on level engineers working on European and North-American activity of around 10% despite wage pressures, and to projects. conduct over 60% of our business outside France by end 2019 with over 28,000 engineers. What are the main strategic focuses for your new 2018-2020 three-year plan? In the first instance, we remain committed to the top-end positioning of our engineers, who have been at the very core of the ALTEN Group since its creation. The high added value of our projects enables us to recruit the best candidates and the quality of our HR follow-up gives the highest performers the chance to increase their responsibility in the technical field, in terms of expertise or management, or even to get involved in company development within business management or support functions. On a geographical level, we are deploying our organisation 4 / GOVERNANCE Board of Directors COMPOSITION OF THE BOARD OF DIRECTORS Jane SEROUSSI, a French national, was born on 5 February 1966 in Paris, and was appointed by ALTEN’s Article 16 of the Company’s Articles of Association provides Combined Ordinary and Extraordinary General Meeting that the Board of Directors is composed of no fewer than of 18 June 2014. At 31 December 2017, she held no three (3) and no more than eighteen (18) members. Company shares. At 31 December 2017, the Board of Directors was Marc EISENBERG, a French national, was born on 9 April composed of ten members: 1955 in Paris, and was appointed by ALTEN’s Combined Ordinary and Extraordinary General Meeting of 18 June 2014. At 31 December 2017, he held no Company Simon AZOULAY, who also serves as Chairman and shares. Chief Executive Officer; Gérald ATTIA, who also serves as Deputy Chief Evelyne FELDMAN, a French national, was born on 19 Executive Officer; May 1957 in Paris, and was appointed by ALTEN’s Emily AZOULAY ; Combined Ordinary and Extraordinary General Meeting Anaëlle AZOULAY ; of 24 May 2016. At 31 December 2017, she held no Company shares. Jane SEROUSSI ; Marc EISENBERG, independent director; Philippe TRIBAUDEAU, a French national, was born in Evelyne FELDMAN, independent director; Chaumont (France) on 29 May 1961. He was appointed Philippe TRIBAUDEAU, independent director; by ALTEN’s Combined Ordinary and Extraordinary General Meeting of 24 May 2016. At 31 December 2017, Aliette MARDYKS, independent director; he held no Company shares. Marwane METIOUI, director representing employees. Aliette MARDYKS, a French national, was born on 8 Simon AZOULAY, a French national, was born on 29 May February 1956 in Tangier, and was appointed by ALTEN’s 1956 in Rabat (Morocco). He is a graduate of Supélec. Combined Ordinary and Extraordinary General Meeting At 31 December 2017, he held in his own name and via of 22 June 2017. At 31 December 2017, she held no SGTI, which he wholly controls, 15.07% of the Company’s Company shares. capital. Marwane METIOUI, a French national, was born on 28 Gérald ATTIA, a French national, was born on 6 April June 1975, in Tangier, and was appointed by ALTEN’s 1962 in Livry-Gargan (93) and holds an MBA from Works Council on 21 December 2017. His appointment Hartford. At 31 December 2017, he held in his own name was duly acknowledged by the Board of Directors on and via GMA, which he controls, 0.78% of the Company’s 26 January 2018. At 31 December 2017, he held no capital. Company shares. Emily AZOULAY, a French national, was born on 20 July 1948 in Rabat (Morocco). At 31 December 2017, she held 0.01% of the Company’s capital. Anaëlle AZOULAY, a French national, was born on 31 October 1990 in Paris, and was appointed by ALTEN’s Combined Ordinary and Extraordinary General Meeting of 18 June 2014. At 31 December 2017, she held no Company shares. / 5 Executive Committee The Executive Committee meets at least once a month. It is made up of the Chairman and Chief Executive Officer and Deputy Chief Executive Officers. It analyses the sales and financial performance, defines the development strategy, sets targets, and implements operational measures. Simon AZOULAY, Chairman and Chief Executive Officer. Gérald ATTIA, Bruno BENOLIEL, Pierre MARCEL, Deputy Chief Executive Officer, Deputy Chief Executive Officer, Deputy Chief Executive Officer, Responsible for Sales, Structured Responsible for Finance, Responsible for ALTEN France Projects and International Legal and Information Systems. and Solutions subsidiaries. area 2. Olivier GRANGER, Pierre BONHOMME, Stéphane OUGIER, Chief Operating Officer, Executive Vice President, ALTEN Executive Vice President Responsible for International Technology France, UK and ALTEN Technology France area 1. Northern Germany. and Solutions subsidiaries. 6 / GOVERNANCE The Group Management Board The Group Management Board compound of the COMEX, the main International Managers and Managers of Support functions, comprises15 people among whom 4 are women / 7 Al 8 / PROFILE tenALTEN, the technology partner of choice ALTEN supports the development strategy of its customers in the fields of innovation, R&D and technological information systems.