ALTRAN ___Registration Document 2018

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ALTRAN ___Registration Document 2018 REGISTRATION DOCUMENT 2018 INCLUDING THE ANNUAL FINANCIAL REPORT MESSAGE FROM THE CHAIRMAN & CEO 2 CORPORATE GOVERNANCE 4 KEYS FIGURES 6 KEY MILESTONES IN ALTRAN'S HISTORY 8 KEY OBJECTIVES 10 1__________ OVERVIEW OF THE GROUP 11 AFR 6__________ CONSOLIDATED FINANCIAL 1.1The Group’s activities 12 STATEMENTS 161 1.2Market and competitive environment 22 6.1 Statutory Auditors' report on the consolidated 1.3The Group’s strategy 27 financial statements 162 1.4 Finalization and financing of the acquisition 6.2Consolidated financial statements 168 ofbAricent 31 AFR 7__________ 2018 ANNUAL RESULTS 229 __________ AFR 2 RISK AND CONTROL 33 7.1 Statutory Auditors' report on the financial 2.1Risk factors 34 statements at December 31, 2018 230 2.2Internal control and risk management system 50 7.2 Parent company financial statements for the financial year ended Decemberb31, 2018 235 AFR 3__________ CORPORATE GOVERNANCE AND __________ REMUNERATION 57 8 INFORMATION ON THE COMPANY 3.1 Board of Directors’ Report on corporate AND THE GROUP 259 governance 58 8.1General information about the Company 260 3.2 Statutory Auditors’ report on regulated 8.2Articlesbof Association 261 agreements and commitments 111 8.3Information about the Company’s capital 265 8.4Share buybacks 268 AFR 4__________ NON-FINANCIAL PERFORMANCE 8.5Company’s shareholding 269 AND CSR DATA 113 8.6Dividends and other distributions 273 8.7Information on the share price 275 4.1Reporting methodology 114 8.8Information on the Group 277 4.2Social performance 119 8.9Trademarks and patents 280 4.3Societal performance 127 4.4Environmental performance 130 __________ 4.5 Report by the independent third party on the 9 ADDITIONAL INFORMATION 281 consolidated non-financial statement 133 9.1Publicly available documents 282 9.2Annual information document 282 5__________ OVERVIEW OF INCOME AND 9.3Person responsible for the document 283 FINANCIAL PERFORMANCE 135 9.4Statutory Auditors 283 5.1Group income 136 __ ________ 5.2Group cash flow and equity 149 10 ANNEX 285 5.3Events subsequent to the reporting date 154 Annex 1. Cross-reference table for Annex 1 ofbEuropean 5.4Trends and perspectives 154 Commission Regulation no.b809/2004 286 5.5Net income (Altran Technologies) 154 Annex 2. Cross-reference table of the annual 5.6Other information 156 financialbreport 290 5.7Pro forma financial information 157 Annex 3. Cross-reference table of the management report 291 Annex 4.Cross-reference table of the CSR information 293 Items comprising the Annual Financial Report are identified in the table of contents by the pictogram AFR REGISTRATION DOCUMENT 2018 INCLUDING THE ANNUAL FINANCIAL REPORT 'ULYHQE\WKHGLVUXSWLYHWHFKQRORJLHVRIDUWLƓFLDOLQWHOOLJHQFH GLJLWDOWUDQVIRUPDWLRQDQGDXWRQRPL]DWLRQDQGE\FOLHQWVōQHHG WRbƓQGnew solutionsIRUWKHLULQQRYDWLRQUHODWHGFKDOOHQJHVWKH Engineering and Research and Development (ER&D) services sector LVPRYLQJLQWRQHZXQPDSSHGWHUULWRU\DWDQLQFUHDVLQJO\UDSLG pace. These new requirements offer unprecedented growth opportunitiesIRUSOD\HUVLQWKHVHFWRUZKLOHVHULRXVO\WKUHDWHQLQJ existing approaches and methods. As the undisputed leader LQHQJLQHHULQJDQG5 'VHUYLFHV$OWUDQVWDQGVSRLVHGWRVHWWKH new global standard and a new approach to outsourced innovation. #1global leader employees 7KH5HJLVWUDWLRQ'RFXPHQWZDVƓOHGZLWKWKH)UHQFK0RQHWDU\DQG)LQDQFLDO$XWKRULW\RQ$SULOLQDFFRUGDQFHZLWK$UWLFOHRIWKH$0)*HQHUDO 5HJXODWLRQV7KLVGRFXPHQWPD\EHXVHGWRVXSSRUWDƓQDQFLDOWUDQVDFWLRQLIDFFRPSDQLHGE\DSURVSHFWXVDSSURYHGE\WKH$0)7KLVGRFXPHQWZDVSUHSDUHGE\WKH LVVXHUDQGHQJDJHVWKHOLDELOLW\RILWVVLJQDWRULHV 3XUVXDQWWR$UWLFOHRI (& 5HJXODWLRQQRRIWKH(XURSHDQ&RPPLVVLRQWKHIROORZLQJLQIRUPDWLRQLVLQFOXGHGLQWKLV5HJLVWUDWLRQ'RFXPHQWE\UHIHUHQFH j WKHFRQVROLGDWHGƓQDQFLDOVWDWHPHQWVRIWKH*URXSUHODWLQJWRWKHƓQDQFLDO\HDUHQGHG'HFHPEHU2017 DQGWKHVWDWXWRU\DXGLWRUōVUHSRUWDSSHDULQJLQ&KDSWHU SDJHVbbWR RIWKH5HJLVWUDWLRQ'RFXPHQWƓOHGZLWKWKH)UHQFK0RQHWDU\DQG)LQDQFLDO$XWKRULW\ $XWRULW«GHV0DUFK«V)LQDQFLHUVWKHŏ$0)Ő RQ0DUFK XQGHUQXPEHU' j 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DVZHOODVRQWKHLVVXHUōV ZHEVLWH ZZZDOWUDQFRP DQGRQWKH$0)ZHEVLWH ZZZDPIIUDQFHRUJ GENERAL REMARKS ,QWKLV5HJLVWUDWLRQ'RFXPHQWXQOHVVRWKHUZLVHVWDWHGWKHWHUPŏ&RPSDQ\ŐRUŏ$OWUDQ7HFKQRORJLHVŐUHIHUVWR$OWUDQ7HFKQRORJLHVDMRLQWVWRFNFRUSRUDWLRQ VRFL«W«DQRQ\PH KHDGTXDUWHUHGDWDYHQXH&KDUOHVGH*DXOOH 1HXLOO\VXU6HLQH DQGUHJLVWHUHGZLWKWKH1DQWHUUHWUDGHDQGFRPSDQLHVUHJLVWHUXQGHUQXPEHUbb 7KHWHUPŏ*URXSŐRUŏ$OWUDQŐUHIHUVWRWKH&RPSDQ\DQGLWVVXEVLGLDULHV ALTRAN ____ Registration Document 2018 1 MESSAGE FROM THE CHAIRMAN & CEO Message from WKHFKDLUPDQ &(2 “Altran posted a robust performance in 2018, delivering on revenue DQGbPDUJLQJURZWK DQGbRQbGHOHYHUDJLQJ 7KHb\HDUZDVQRWDEO\ PDUNHGE\WKHbLQWHJUDWLRQ RIb$ULFHQWDQGLWVPDUJLQ UHVWRUDWLRQŐ ——— Dominique Cerutti 2 ALTRAN ____ Registration Document 2018 MESSAGE FROM THE CHAIRMAN & CEO “The breadth and depth RIb$OWUDQōVVHUYLFHRIIHULQJ DUHXQHTXDOOHG:HPDNH WKHVHVWUHQJWKVDYDLODEOH The engineering and Research & Development market on which we operate is very dynamic WRbRXUFOLHQWV for whom and should grow by about 9% per year or to bELOOLRQHXURVE\2XUQHZVWUDWHJLFSODQ thebVSHHGDQGbWKHbFRVW 7KHb+LJKb5RDG$OWUDQOD\VRXWRXUJRDOV as world leader and describes how we intend to ofbthebLQQRYDWLRQF\FOH UHDFKWKHPE\FRPELQLQJRXULQGXVWULDOH[SHUWLVH innovative service models and international HQDEOHWKHPWRaddress SUHVHQFH FRQWLQXDOGLVUXSWLRQV” :HQRZZRUNDORQJZLWKRXUFOLHQWVLQbVHFWRUV DQGKDYHJDUQHUHGSURIRXQGNQRZOHGJHRIbWKHLU products and industrial processes to better assist 2XUbPDLQVWUHDPVHUYLFHVDUHEDVHGRQWKHVFDOH WKHPLQWKHLQQRYDWLRQF\FOHDVbZHbKDYHIRUWKH ŴH[LELOLW\DQGH[SHUWLVHRIRXUHQJLQHHUVZHbKDYH SDVW\HDUV0RUHRYHUZHbKDYHVWUHQJWKHQHG bHPSOR\HHVFORVHWRRXUFOLHQWVōPDLQ ourbposition in the software and internetHOHFWURQLFV 5 'bKXEV DQGVHPLFRQGXFWRUVDQGQHZJHQHUDWLRQ FRPPXQLFDWLRQV7RGD\WKHVHDUHDVKDYHtransverse Altran is not only the sole player to offer all of these applications and are fueling the great disruptions VHUYLFHVEXWRXU*URXSLVDOVRFRQWLQXLQJWRGHYHORS LQDOOWUDGLWLRQDOLQGXVWULHV2XUbSUHVHQFHLQWKHVH V\QHUJLHVDPRQJLWVPRGHOVIRURXUFOLHQWVōEHQHƓW KLJKJURZWKPDUNHWVHJPHQWVDORQJZLWKWKH DXWRPRWLYHDQGOLIHVFLHQFHVVHFWRUVZLOOEHD )LQDOO\DVZRUOGOHDGHUZHZLOOFRQWLQXHWR SRZHUIXOHQJLQHIRURXUb*URXSōVGHYHORSPHQWDQG strengthen our international presence to derive the WKH\VKRXOGDFFRXQWIRURIRXUVDOHVE\ PRVWIURPWKHSRWHQWLDORIIHUHGE\WKHVHPDUNHWV :KLOHFRQƓUPLQJRXUSRVLWLRQLQ(XURSHZHZDQW We operate three distinct service models WRDIƓUPRXUUROHDVDOHDGLQJSOD\HULQWKH8QLWHG ZKLFKUHVSRQGWRVSHFLƓFQHHGVKLJKYDOXH 6WDWHVDQGRQDVHOHFWLYHEDVLVLQFUHDVHRXU VHUYLFHV,QGXVWULDOL]HG*OREDO6KRUH®VHUYLFHV SUHVHQFHLQ$VLD and mainstream engineering and Research & 'HYHORSPHQWVHUYLFHV2XUKLJKYDOXH services 7KHDFTXLVLWLRQRI$ULFHQWclosedLQ0DUFKRI arebGHVLJQHGIRURXUFOLHQWōVNH\DUHDVRILQQRYDWLRQ ZDVDPDMRUVWHSIRURXU*URXSDQGDQbDFFHOHUDWRU backed up by iconic brands such as Cambridge IRURXUVWUDWHJ\ &RQVXOWDQWVRUIURJDVZHOODVRXU:RUOG&ODVV &HQWHUV2XU*OREDO(QJLQHHULQJ&HQWHUVDWWKH We are now focusing on execution and will continue heart of our ,QGXVWULDOL]HG*OREDO6KRUHpPRGHO our relentless efforts to hone our operational FRPSULVHHQJLQHHUVenabling us to offer H[FHOOHQFHWKHVLQJOHPRVWLPSRUWDQWWRROIRU RXUbFOLHQWVDFFHVVWRDZRUOGZLGHSRRORIWDOHQWV creating value for all of our stakeholders HPSOR\HHV DQGbLQGXVWULDOL]HGVHUYLFHVDWFRPSHWLWLYHFRVWV FOLHQWVDQGVKDUHKROGHUV UHYHQXHJURZWK EBIT margin ALTRAN ____ Registration Document 2018 3 CORPORATE GOVERNANCE Corporate Governance Altran is a public limited company governed by a Board of Directors and a Global Executive Team. Altran is administered by a Board of Directors, Board of whose members serve four-year terms. Four of Altran’s Directors are independent. Directors Both, the Audit and the Appointment DQGb5HPXQHUDWLRQ&RPPLWWHHVDUHFKDLUHG E\bLQGHSHQGHQWGLUHFWRUV BOARD MEMBERSHIP AS OF THIS WRITING: Dominique Cerutti Chairman & CEO Amboise Partners SA (formerly known as Apax Partners SA) represented by Maurice Tchenio Christian Bret Martha Heitzmann Crawford Nathalie Rachou Gilles Rigal of Altran’s4 Renuka Uppaluri Directors are independent Jaya Vaidhyanathan Thomas de Villeneuve women Henry Capelle Censor serve on the Board 9* 44% 85.3% 13 directors women serve attendance ratio board meetings on the Board * Following the resignation of the Director representing the employees on 20 March 2019, a new Director representing the employees will be appointed. 4 ALTRAN ____ Registration Document 2018 CORPORATE GOVERNANCE 1 2 3 4 5 6 7 Global Executive Team The Global Executive Team is composed of the following members: 1. Dominique Cerutti 4. Pascal Brier 6. William Rozé Chairman & CEO Executive Vice-President,
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