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2014 REGISTRATION DOCUMENT including the annual financial report 2014 WWW.ALTEN.COM REGISTRATION DOCUMENT REGISTRATION ENGINEERING AND TECHNOLOGY CONSULTING 2014 REGISTRATION DOCUMENT including the annual financial report “This document and the accompanying financial report constitute the ALTEN registration document for 2014. It was filed with the French Financial Markets Authority (Autorité des Marchés Financiers, or AMF) on 27 April 2015, in accordance with Article 212-13 of the AMF General Regulation. It may only be used in support of a financial 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 2013 and Statutory Auditors’ reports, found on pages 171 to 230 of Registration Document No. D. 14-0448 filed with the AMF on 25 April 2014; • The separate and consolidated financial statements at 31 December 2012 and Statutory Auditors’ reports, found on pages 163 to 226 of Registration Document No. D. 13-0454, filed with the AMF on 26 April 2013. This document was prepared by the issuer and the signatories are responsible for its contents.” REGISTRATION DOCUMENT CONTENTS 2 3 / 04 Interview with Simon Azoulay / 05 ALTEN Group governance CONTENTS / 09 Profile / 10 Key figures 2014 / 12 ALTEN in the world / 14 The benefits of development / 17 1. ALTEN, TECHNOLOGY PARTNER 18 Development of global R&D 19 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 & Security 34 Nuclear and Renewable energy 36 Fossil energy 38 Health & Pharmacy 40 Telecommunications & Multimedia 42 Finance & Services / 45 3. Operational EXCELLENCE AND SUSTAINABLE DEVELOPMENT 2 3 ALTENALTEN INTERVIEW WITH Simon Azoulay What core values form the basis for your development? Since ALTEN’s creation, we have relied on three values as the foundation for the Group’s development and operations. Foremost among these is “the engineering culture” on which we base our “premium service” positioning. This value reflects our ability to take part in a wide range of complex, What is your assessment of 2014? high-value technology projects, including in manufacturing or The ALTEN Group was able to combine growth and support environments. profitability despite rather difficult conditions. Consolidated The ALTEN Group’s second value is growth that is profitable revenue for the 2014 financial year totalled €1,373.2 and sustainable. We intend to establish a Group of 20,000 million, a 12.9% increase over 2013, with an operating engineers before 2017, while maintaining our profitability profit close to 10%. This performance is largely due to in the 10% range. We have always used this development international business, which has grown by 31.5%, and model and we will continue to apply it. now represents 44.5% of revenue. I am particularly proud Finally, the third value consists in operating in accordance that we were once again able to create organic growth, with ethical values, respect and to provide HR support for all which is the basis for ALTEN’s growth since on a like-for-like our employees. We make long-term investments in our teams basis, business has grown by 2.75%. because we are convinced of their quality; we grow through our engineer and manager training. How did each sector perform? First, I want to note that the ALTEN Group’s strategy consists How do you structure this growth? in working within the five economic macro-sectors in order The ALTEN Group, given its growth ambitions, must establish to balance risks and provide a cushion during downturns. the optimum structural model. We rely on effective processes 2014 was no exception to the rule, with different dynamics that are applied in a uniform manner throughout the Group’s at play depending on the sector. Aeronautics, which has entities, be it at the level of project performance, recruitment been a key sector for the past ten years, is ending a large- or HR support for our employees. We have also made scale programmes cycle. Despite the reduction in budgets substantial investments in the information systems that support for studies, we have been able to retain our positions by these processes and are already reaping the rewards. In successfully extending our services to new sectors such as the short term, based on the transnational nature of many manufacturing engineering. Growth in Land Transport was Customer listings, we will have to accelerate the ability of driven by strong automotive investments in embedded managers and the best consultants to travel internationally throughout the entire ALTEN Group network. electronics, CO2 reduction and active safety. Energy continues to perform well and has experienced strong growth. Telecoms have suffered as a result of a decrease What is your outlook? in budgets and prices among our clients due to margin Although the economic situation remains complex and pressures. Finally, the Services sector has remained stable R&D budgets remain limited, ALTEN has solid assets. We throughout 2014. have confirmed our preferred supplier status with the major European customers. Our size, our financial soundness, the At the global level, ALTEN’s multi-sector strategy was a quality of our positioning and our leadership enable us to winner once again. grow our market shares and to continue the consolidation of the sector. I am therefore very confident in our ability to What is your development strategy? achieve positive organic growth in 2015 in a globally stable As a world leader, the ALTEN Group must experience strong market, while complying with our margin policy. growth on the international scene. Our goal is for 60% of our business to be international within three years. To this end, we must achieve the critical mass of 1,500 engineers in each industrialised country in which we are interested. This includes Western European countries as well as the United States, Canada, India and China. We already have in excess of 1,000 engineers in nearly all countries in the European zone and we are starting to conquer the “outside Europe” zone. Both in 2014 and 2013, we made eight acquisitions, including seven internationally, in order to accelerate this growth. We have set the same objectives for 2015. 4 5 GOUVERNANCE Board of directors COMPOSITION OF THE BOARD OF DIRECTORS Mr Bruno Benoliel, a French national, was born on 13 May 1964 in Paris and is a graduate of ESC Reims. Article 16 of the Company’s Articles of Association At 31 December 2014, he held 112,800 ALTEN shares, provides that the Board of Directors is composed of no i.e. 0.34% of the Company’s capital. fewer than three (3) and no more than eighteen (18) members. Ms Emily Azoulay, a French national, was born on 20 July The appointment of each director is the subject of 1948 in Rabat (Morocco); at 31 December 2014, she a separate resolution in accordance with the ninth held 3,600 ALTEN shares, i.e. 0.01% of the Company’s Recommendation of the Middlenext Reference Code. capital At 31 December 2014, the Board of Directors was Ms Anaëlle Azoulay, a French national, was born on composed of eight members: 31 October 1990 in Paris, and was appointed by ALTEN’s Combined Ordinary and Extraordinary General Meeting Mr Simon Azoulay, who also serves as Chairman and of 18 June 2014. At 31 December 2014, she held no Chief Executive Officer; Company shares. Mr Gérald Attia, who also serves as Deputy Chief Ms Jane Seroussi, a French national, was born on Executive Officer; 5 February 1966 in Paris, and was appointed by ALTEN’s Mr Bruno Benoliel, who also serves as Deputy Chief Combined Ordinary and Extraordinary General Meeting Executive Officer; of 18 June 2014. At 31 December 2014, she held no Ms Emily Azoulay; Company shares. Ms Anaëlle Azoulay; Mr Marc Eisenberg, a French national, was born on Ms Jane Seroussi, independent director; 9 April 1955 in Paris, and was appointed by ALTEN’s Mr Marc Eisenberg, independent director; Combined Ordinary and Extraordinary General Meeting Mr Jérôme Valat, director representing employees. of 18 June 2014. At 31 December 2014, he held no Company shares. Mr Simon Azoulay, a French national, was born on Mr Jérôme Valat, a French national, was born on 19 June 29 May 1956 in Rabat (Morocco). He is a graduate of 1969 in Rodez, and was appointed by the Works Council SUPELEC. At 31 December 2014, he held 7,417,481 on 23 October 2014, which was duly acknowledged by shares in his own name and via SGTI and SGTI 2, which the Board of Directors on 29 October 2014. he controls 100%, i.e. 22.08% of the Company’s capital. At 31 December 2014, he held no Company shares. Mr Gérald Attia, a French national, was born on 6 April 1962 in Livry-Gargan (93) and holds an MBA from Hartford. At 31 December 2014, he held 204,477 ALTEN shares in his own name and via GMA, which he controls, i.e. 0.61% of the Company’s capital. 4 5 ALTENALTEN Executive Committee The Executive Committee meets at least once a month. It comprises the Chief Executive Officer, the Deputy Chief Executive Officers and the Chief Operating Officers. This Committee analyses the sales and financial performance, defines the development strategy, sets targets, and implements operational measures. From left to right Olivier GRANGER, Pierre MARCEL, Simon AZOULAY, Gérald ATTIA, Bruno BENOLIEL, Chief Operating Officer, Deputy Chief Executive Chairman and Deputy Chief Executive Deputy Chief Executive Officer, Responsible for International Officer Responsible for Chief Executive Officer Officer, Responsible for Responsible for Finance, Legal Zone 1 ALTEN Technology France Sales, Structured Projects and Information Systems and Solutions subsidiaries and International Zone 2 6 7 GOUVERNANCE Management Committee - France This committee meets once a month to discuss operations in France and to ensure synergies and consistency with the international companies.