23 Sep 2020 Half Year Management Report

CONTENTS

HALF-YEAR MANAGEMENT REPORT 2020 ...... 4 BUSINESS OVERVIEW ...... 4 FINANCIAL OVERVIEW ...... 5 RELATED-PARTY TRANSACTIONS ...... 6 EVENTS SINCE 30 JUNE 2020 ...... 7 MAIN RISKS AND UNCERTAINTIES IN THE SECOND HALF OF 2020...... 7 2020 OUTLOOK ...... 7

1. HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS ...... 8 1.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...... 9 1.2 CONSOLIDATED INCOME STATEMENT ...... 10 1.3 STATEMENT OF COMPREHENSIVE INCOME ...... 11 1.4 CONSOLIDATED STATEMENT OF CASH FLOWS ...... 12 1.5 STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY ...... 13

2. NOTES TO THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ...... 14 2.1 SIGNIFICANT EVENTS DURING THE HALF-YEAR ...... 15 2.1.1 Acquisitions ...... 15 2.1.2 Impacts linked to the Covid-19 health crisis ...... 15 2.1.3 Events after the reporting period ...... 16 2.2 ACCOUNTING PRINCIPLES AND METHODS ...... 16 2.2.1 Accounting principles ...... 16 2.2.2 Management estimates ...... 17 2.3 FINANCIAL RISK FACTORS ...... 17 2.4 CHANGES IN THE SCOPE OF CONSOLIDATION ...... 18

3. DETAILS OF THE CONSOLIDATED FINANCIAL STATEMENTS ...... 19 3.1 GOODWILL ...... 20 3.2 HOLDINGS IN ASSOCIATES AND NON-CURRENT FINANCIAL ASSETS ...... 21 3.3 CURRENT ASSETS ...... 21 3.4 EMPLOYEE PROVISIONS AND BENEFITS ...... 22 3.5 FINANCIAL LIABILITIES (EXCLUDING RENTAL DEBT) ...... 23 3.6 RIGHTS OF USE AND RENTAL DEBT ...... 24 3.7 OTHER LIABILITIES ...... 25 3.8 PERSONNEL EXPENSES ...... 25 3.9 OTHER OPERATING INCOME AND EXPENSES ...... 26 3.10 NET FINANCIAL INCOME ...... 26 3.11 INCOME TAXES ...... 27 3.12 OPERATING SEGMENT INFORMATION ...... 29 3.13 EARNINGS PER SHARE ...... 29

3.14 STATEMENT OF CASH FLOWS ...... 30 3.15 CONTINGENT ASSETS AND LIABILITIES ...... 30 3.16 RELATED PARTIES ...... 31 3.17 FINANCIAL COMMITMENTS ...... 31

STATUTORY AUDITORS’ REVIEW REPORT ON THE 2020 HALF-YEARLY FINANCIAL INFORMATIONERREUR ! SIGNET NON DEFINI.

DECLARATION BY THE PERSON IN CHARGE OF THE HALF-YEAR FINANCIAL REPORT ...... 34

HALF-YEAR MANAGEMENT REPORT 2020

BUSINESS OVERVIEW

ALTEN has asserted its position as a European leader in Engineering and Technology Consulting. The Group supports its customers’ development strategies in the areas of innovation, R&D, and information systems.

ALTEN’s business consists of two operating segments:  Engineering and R&D outsourcing,  Information Systems and Internal Networks.

At 30 June 2020, ALTEN had 36,100 employees (including 31,440 engineers):  12,800 employees (including 10,960 engineers) in France;  23,300 employees (including 20,480 engineers) outside France.

ALTEN generated 60.4% of its business internationally (compared to 55.8% during the first half of 2019).

 Significant events for the first half of 2020:

ALTEN continues to grow internationally. ALTEN made two international acquisitions during the first half of 2020:  one company in Asia (China/Japan) with annual revenue of €18 million and 400 consultants;  one company in Asia (South Korea) with annual revenue of €21 million and 300 consultants.

FINANCIAL OVERVIEW

The half-year consolidated financial statements presented in this document were approved by the Board of Directors on 22 September 2020, after prior review by the Audit Committee.

 Income statement (IFRS):

Revenue Revenue at 30 June 2020 was €1,240 million, down 4% compared with 30 June 2019 (€1,292.3 million). At constant scope and exchange rates, business fell off by 7.3% (-13.7% in France and -2.2% outside France). Despite a favourable seasonal effect (+0.7 working days in the first half of 2020), activity was heavily affected by the health crisis from mid-March onwards.

Operating profit on activity Operating profit on activity was €75.2 million, down 35.6% compared with June 2019 due to the fall in activity in the second quarter and additional costs caused by the health crisis.

ALTEN rapidly implemented several measures to adapt to the crisis: notably recruitment was almost frozen, reduction of SG&As, use of part-time work in Europe, and reduction of staff numbers in certain countries.

Operating profit Operating profit was €68.7 million (compared with €108.9 million at 30 June 2019). It includes €2.5 million of payments in shares and €4.0 million of non-recurring costs mainly made up of restructuring costs and acquisition fees, partly offset by income linked to previous acquisitions.

Net income, Group share After taking into account financial income (€11.5 million, mainly from a capital gain on the sale of investment securities), the income tax expense (€21 million), income from equity accounted companies (€1.4 million), and minority interests (€0.1 million), net income, group share was €60.6 million, i.e. 4.9% of revenue (€76.4 million at 30 June 2019, i.e. 5.9% of revenue).

Consolidated balance sheet items and financial movements The financial structure of the ALTEN Group remained very robust, despite the crisis. Under assets, non-current assets represent 41.2% of the overall balance sheet (€1,994.9 million), which consists in particular of goodwill (76.2%, i.e. €551.3 million) and IFRS 16 rights of use (19.7%, i.e. €161.3 million).

Current assets, excluding cash, represent 46% of the total balance sheet, and are mainly made up of accounts receivable and related assets, which represent over 80% of this item. Under liabilities, equity capital still represents 58% of the balance sheet total. The Group has significant cash funds, amounting to €224.3 million, bringing the gearing to -19.2%.

In the first half of 2020 ALTEN Group generated a gross cash flow of €98.5 million (compared with €145.9 million at 30 June 2019). Restated for IFRS 16 elements, operating gross cash flow was €71.4 million (5.8% of revenue) compared with €123.1 million (i.e. 9.5% of revenue) at 30 June 2019. The fall was logically correlated with that of operating profit on activity. Working capital requirements fell by €95.1 million, due to the reduction in trade receivables, a consequence of the strong organic shrinkage in the second quarter.

After taking into account the effects of changes in scopes and earn-outs (€17.9 million) and other financing flows, and in the absence of the payment of dividends this year, net cash position was €224.3 million at the end of June 2020.

RELATED-PARTY TRANSACTIONS

 A rider to the services agreement of 3 July 2009, under which ALTEN provides administrative services to SGTI, was entered into on 26 February 2020 in order to authorise provision of a domiciliation service at the headquarters of SGTI. This amendment was submitted to the Board of Directors for authorisation on 18 February 2020 and approved by the Ordinary General Meeting of 18 June 2020.

 Shares in HOREX, indirectly held by ALTEN, were sold on 27 February 2020 to a company in which SGTI, a shareholder with over 10% of the ALTEN capital, holds a stake.

EVENTS SINCE 30 JUNE 2020

Since 30 June 2020, the Group has carried out the following operations:  The acquisition of an activity (US/Ukraine) with annual revenue of €7.5 million and 100 consultants,  The disposal of two subsidiaries (France) contributing revenue of €7.1 million.

MAIN RISKS AND UNCERTAINTIES IN THE SECOND HALF OF 2020

The nature and severity of the risks facing the ALTEN Group remain unchanged from those presented on pages 53 to 58 of the 2019 Universal Registration Document filed with the French Financial Markets Authority (Autorité des Marchés Financiers, or AMF) on 28 April 2020.

2020 OUTLOOK

Similarly to most of the global industry players, ALTEN is impacted by the emergencies of the health crisis linked to the Covid-19 pandemic. Its economic consequences have been strongly affecting our economy since mid- March. The business sectors of Automotive and Heavy trucks, Aircraft and associated activities, along with Civil Aeronautics have been durably impacted by the crisis. From the lowest point in June, business will resume very progressively and the curve should grow again starting from the last quarter. Consequently and on account of a decrease in the embedded activity at the end of the first half as well as a negative base effect, without prejudice, the decline in organic growth in the second half shall be similar to the second quarter. Hence, the Operating Margin on Activity should be lower than in the first half. In the second half, ALTEN will pursue its external growth following a strategic plan to diversify business sectors and geographical areas.

Signed at Boulogne-Billancourt, 22 September 2020, The Board of Directors.

HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

1.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS (In thousands of euros) Notes 30/06/2020 31/12/2019

Goodwill 3.1 551 343 535 606 Usage rights 3.6 161 303 174 012 Intangible assets 8 494 8 548 Property, plant and equipment 31 220 31 471 Investments in associates 3.2 1 065 25 024 Non-current financial assets 3.2 57 567 58 852 Deferred tax assets 9 453 10 382

NON-CURRENT ASSETS 820 445 843 895

Trade receivables 3.3 575 864 693 564 Customer contract assets 3.3 169 161 167 059 Other current assets 3.3 89 155 68 443 Current tax assets 81 951 74 626 Cash and cash equivalents 3.2 258 346 202 550

CURRENT ASSETS 1 174 477 1 206 243

TOTAL ASSETS 1 994 922 2 050 138

LIABILITIES (In thousands of euros) Notes 30/06/2020 31/12/2019

Share capital 35 888 35 864 Additional paid-in capital 60 250 60 250 Consolidated reserves 1 011 813 853 413 Consolidated earnings 60 646 164 225

EQUITY (Group share) 1 168 597 1 113 752

NON-CONTROLLING INTERESTS -571 -425

TOTAL EQUITY 1 168 026 1 113 327

Post-employment benefits 3.4 14 538 13 743 Non-current provisions 3.4 7 771 11 745 Non-current financial liabilities 3.5 3 108 3 111 Non-current rental debt 3.6 125 015 134 128 Other non-current liabilities 3.7 24 909 18 171 Deferred tax liabilities 3.11 623 476

NON-CURRENT LIABILITIES 175 963 181 374

Current provisions 3.4 7 238 8 807 Current financial liabilities 3.5 31 382 124 864 Current rental debt 3.6 41 471 42 806 Trade payables 97 633 90 119 Other current liabilities 3.7 362 793 367 293 Customer contract liabilities 94 524 107 561 Current tax liabilities 15 893 13 987

CURRENT LIABILITIES 650 933 755 437

TOTAL EQUITY AND LIABILITIES 1 994 922 2 050 138

1.2 CONSOLIDATED INCOME STATEMENT

(In thousands of euros) Notes 30/06/2020 30/06/2019

REVENUE 3.12 1 240 380 1 292 252

Purchases consumed (121 136) (109 557) Personnel expenses 3.8 (920 932) (934 428) External charges (82 384) (98 406) Other taxes and levies (6 663) (6 538) Depreciation and amortisation charges (33 055) (29 382) Other operating expenses (3 712) (3 728) Other operating income 2 665 6 436

OPERATING PROFIT ON ACTIVITY 75 162 116 648

Share-bases payments 3.8 (2 518) (3 198)

PROFIT FROM ORDINARY ACTIVITIES 72 644 113 451

Other operating expenses 3.9 (5 383) (4 728) Other operating income 3.9 1 406 215 Impairment of goodwill 3.1 0 0

OPERATING PROFIT 68 667 108 938

Borrowing costs and financial costs of leases 3.10 (1 198) (1 238) Other financial expenses 3.10 (8 239) (2 921) Other financial income 3.10 20 908 4 249 Income tax expense 3.11 (20 961) (34 880)

EARNING OF CONSOLODATED ENTITIES 59 177 74 147

Earnings from associates 1 366 2 778

NET OVERALL EARNINGS 60 543 76 925 Including:

Non-controlling interests (103) 517

Group share 60 646 76 409

Earnings per share in euros (Group share) 3.13 1,80 2,29

Diluted earning per share in euros (Group share) 3.13 1,77 2,24

1.3 STATEMENT OF COMPREHENSIVE INCOME

(In thousands of euros) Notes 30/06/2020 30/06/2019

Net income, Group share 60 646 76 409 Net income, non-controlling interest’s share (103) 517

Consolidate net income 60 543 76 925

Change in faire value of sellable financial assets (net of income tax) 3.2 0 0 Translation adjustments (7 354) 926

Items that may be reclassified to income (7 354) 926

Actuarial differences on employee benefits (net of income tax) (2 860)

Items that may not be reclassified to income 0 (2 860)

TOTAL INCOME FOR THE PERIOD 53 189 74 992

Including: Group share 53 280 74 365 Non-controlling interests (91) 627

1.4 CONSOLIDATED STATEMENT OF CASH FLOWS

(In thousands of euros) Notes 30/06/2020 30/06/2019

Consolidate net income 60 543 76 925 Earnings from associates (1 366) (2 778) Depreciation, provisions and other calculated expenses 3.14 27 862 31 908 Share-bases payments 3.8 2 518 3 198 Income tax expense 3.11 20 961 34 880 Capital gains or losses from disposals (14 164) 166 Borrowing costs and financial costs of leases 3.10 1 198 1 238 Financial cost on update and provisions 957 331

Gross cash flow borrowing costs and tax 98 509 145 868

Taxes paid 3.14 (26 178) (28 982) Change in working capital requirements 3.14 95 108 (27 903)

Net cash flow from operating activities 167 438 88 982

Acquisitions of tangible and intangible assets (7 430) (8 058) Acquisitions of financial assets (3 237) (5 731) Impact of changes in scope and earn-outs 3.14 18 028 (51 442) Disposals of tangible and intangible assets 54 29 Reductions in financial assets 3 343 1 228

Net cash flow from investing activities 10 758 (63 974)

Net financial interest paid (1 393) (1 413) Dividends paid to shareholders 0 (33 444) Capital increases 3.14 0 0 Acquisitions and disposals of treasury shares (778) 1 044 Changes in non-current financial liabilities (472) (5 150) Change in current financial liabilities 3.5 (92 943) 33 904 Change in rental debt 3.6 (24 234) (21 280)

Net cash flow from financing transactions (119 821) (26 340)

Change in cash position 58 375 (1 332)

Impact of exchange rate variations (2 580) 257 Cash at beginning of period 202 550 120 372

Cash at end period 258 346 119 297

The Group’s net cash position/(net debt) ratio, excluding rental debts, breaks down as follows:

(In thousands of euros) 30/06/2020 30/06/2019 Cash at end period 258 346 119 297 + Bank borrowings and related debt 3.5 (25 492) (110 383) + Bank overdrafts 3.5 (8 555) (26 578) = Net cash position/(Net debt) 224 298 (17 664)

1.5 STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY

 Change in equity – Group share

Number of Number of Additional Treasury Translation Shareholde (In thousands of euros) shares in shares Capital paid-in Reserves Earnings shares reserve rs equity circulation issued capital

At 31 December 2018 33 354 645 33 830 458 35 522 54 376 733 355 (9 759) (3 793) 157 869 967 570

2018 allocation of earnings 157 869 (157 869) 0 Capital increases 75 338 75 338 79 5 875 (5 954) 0 Dividends paid to shareholders (33 444) (33 444) Other changes 286 286 Treasury shares 13 802 1 044 1 044 Share-bases payments 2 436 2 436

Transactions with shareholders 33 443 785 33 905 796 0 35 601 60 251 854 549 (8 716) 0 (3 793) 0 0 0 937 892

Total income for the period (2 860) 816 76 409 74 365

At 30 June 2019 33 443 785 33 905 796 0 35 601 60 251 851 689 (8 716) 0 (2 977) 0 76 409 0 1 012 258

At 31 December 2019 33 696 147 34 156 170 35 864 60 250 861 179 (8 713) 948 164 225 1 113 752

2019 allocation of earning 164 225 (164 225) 0 Capital increases 22 774 22 774 24 (24) 0 Dividends paid to shareholders 0 Other changes 55 55 Treasury shares (10 176) (778) (778) Share-bases payments 2 288 2 288

Transactions with shareholders 33 708 745 34 178 944 35 888 60 250 1 027 723 (9 492) 948 0 1 115 317

Total income for the period (7 366) 60 646 53 280

At 30 June 2020 33 708 745 34 178 944 35 888 60 250 1 027 723 (9 492) (6 418) 60 646 1 168 597

 Change in equity capital – non-controlling interests

Translation Shareholders (In thousands of euros) Reserves Earnings reserve equity

At 31 December 2018 2 282 (158) 2 739 4 863

2018 allocation of earnings 2 739 (2 739) 0 Change in scope (3 302) (3 302) Capital increases 0 Total income for the period 111 517 627

At 30 June 2019 1 719 (48) 517 2 188

At 31 December 2019 237 (5) (656) (425)

2019 allocation of earnings (656) 656 0 Change in scope (56) (56) Capital increases 0 Total income for the period 12 (103) (91)

At 30 June 2020 (475) 7 (103) (571)

2. NOTES TO THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2.1 SIGNIFICANT EVENTS DURING THE HALF-YEAR

2.1.1 Acquisitions

LZT (Revenue: €18 million; 400 consultants) On 31 January 2020 Sesame Group LTD acquired 79.56% of a group of companies located in China and Japan specialising in software development.

AP Solutions (Revenue: €21 million; 300 consultants) On 30 June 2020, ALTEN Europe acquired 100% of Korean company AP Solutions, which has a subsidiary in China. These companies specialise in automotive engineering.

This acquisition, whose purchase price is in the process of being allocated, will be consolidated during the second half of 2020.

The revenue of the acquired companies, indicated above, are the latest known corporate figures presented on an annual basis.

2.1.2 Impacts linked to the Covid-19 health crisis

Group revenue was €1,240.4 million in the first half of 2020, compared with €1,292.3 million in the first half of 2019, i.e. a fall of 4% (7.3% at constant scope and exchange rates). Business in the first half was heavily impacted by the health crisis, particularly in the automotive and civil aeronautical sectors.

Because of the lockdown measures enforced worldwide, despite remote working, there has been a large increase in suspensions and terminations of projects. The crisis has mainly impacted the following sectors: Automotive and Heavy Trucks, Air Transport and associated services, and Civil Aeronautics. Consequently, France, Sweden, Germany, and to a lesser extent the US, where these sectors represent a significant share of the Group’s business, are the most impacted. The rebound in business from the low point of June 2020 is very gradual.

The fall in business combined with the direct and indirect costs caused by the health crisis, despite the measures taken by the government, weighed heavily on the Group’s operating results. Operating profit on activity was €75.2 million in the first half of 2020, compared with €116.6 million in the first half of 2019, a fall of 35.6%.

Furthermore, the Group decided to pay no dividend for the 2019 financial year over the period, which notably contributed to improving a financial structure which was already very sound. At the end of June 2020 the Group had a surplus net cash position of €224.3 million.

Apart from the main consequences of the Covid-19 health crisis and its significant effect on the condensed consolidated financial statements of the period ended 30 June 2020, as indicated above, forecasts, judgements and assumptions made by the Group for the preparation of these financial statements are brought to your attention in note “2.2.2. Management estimates”.

2.1.3 Events after the reporting period

Early in the second half of the year, the Group acquired a business in the United States and Ukraine with annual revenue of approximately €7 million.

In the second half of the year the Group sold two subsidiaries in France, which together contributed €7.1 million to Group revenue in 2019.

2.2 ACCOUNTING PRINCIPLES AND METHODS

The condensed consolidated financial statements of 30 June 2020 were prepared in accordance with IAS 34 “Interim Financial Reporting”, as published by the IASB (International Accounting Standards Board) and adopted by the European Union (EU), which allows for the presentation of a number of appended notes. These interim financial statements do not include all the required information and should be read using the consolidated financial statements for the period ended at 31 December 2019 (included in the 2019 Universal Registration Document) as a reference. The 2019 consolidated financial statements included in the issuer’s 2019 Universal Registration Document are also available on its website page dedicated to financial statements: http://www.alten.com.fr/investors/

The financial statements presented in this document were approved by the Board of Directors on 22 September 2020. They are presented in thousands of euros unless otherwise indicated.

2.2.1 Accounting principles

The accounting principles and calculation methods used to prepare the condensed consolidated financial statements at 30 June 2020 are identical to those used for the consolidated financial statements at 31 December 2019, with the exception of the new standards, amendments and interpretations applicable as of 1 January 2020. These standards, amendments and interpretations, obligatory from 1 January 2020 onwards, did not have a significant effect on the Group’s condensed consolidated financial statements at 30 June 2020.

Moreover, the Group did not apply in advance the latest standards, amendments or interpretations published by the IASB and adopted at European level but whose application was not mandatory at 1 January 2020.

2.2.2 Management estimates

The preparation of financial statements in accordance with IFRS standards requires that certain estimates and assumptions be made which may affect the amounts shown in these financial statements. These estimates and assessments are continuously made on the basis of past experience and other factors considered reasonable.

The main assessments made by Management when the consolidated financial position was calculated are presented in the 2019 Universal Registration Document on page 158. However, apart from the main consequences of the Covid-19 health crisis having a significant effect on the financial statements for the period ended on 30 June 2020 and explained in note “2.1.2 Impacts linked to the Covid-19 health crisis”, the estimations, judgements and assumptions chosen by the Group for preparation of the financial statements for the period ended 30 June 2020 mainly relate to: - the valuation of the recoverable value of cash-generating units and in particular goodwill (note 3.1); - prospects for the use of deferred tax assets (note 3.11).

2.3 FINANCIAL RISK FACTORS

The financial risk factors noted in the 31 December 2019 consolidated financial statements remain essentially unchanged.

2.4 CHANGES IN THE SCOPE OF CONSOLIDATION

 Additions to the scope

Basis of Country of Company name % interest % control consolidation (*) operation Beijing LZT Info Technology FC 79,56 79,56 China Dalian LZT Info Technology FC 79,56 79,56 China Jinan LZT Info Technology FC 79,56 79,56 China Ritatsu Soft FC 79,56 79,56 Japan Nihon Ritatsu FC 79,56 79,56 Japan (*) FC = Full consolidation

 Other changes in scope

- The Horex company, consolidated using the equity method, was sold over the period; - In the first half of 2020 the Group continued with a legal simplification of its scope through mergers, notably in Germany, Switzerland, the Netherlands and the US.

3. DETAILS OF THE CONSOLIDATED FINANCIAL STATEMENTS

3.1 GOODWILL

Goodwill, allocated by country, is broken down as follows:

The North Offshore In thousands of euros France UK Belgium Netherland Spain Germany Switzerland Italy Scandinavia Nearshore Other Total America and Asia s

31/12/2019 127 256 18 145 12 686 26 053 41 943 88 306 24 322 19 507 63 743 87 142 19 486 6 850 169 535 606

Acquisitions 16 454 16 454 Disposals/withdrawals 0 Earn-out adjustments 115 (355) (240) Translation adjustments 268 (56) (724) (1 013) (1 525) Other 133 211 (40) 744 1 048 Reclassifications 0 Impairments 0

30/06/2020 127 256 18 278 12 686 26 168 41 943 88 306 24 590 19 507 63 543 86 378 35 671 6 850 169 551 343

For the first half of 2020, changes in goodwill were due to: - acquisitions made by the Group in the first half (described in note 2.1.1) including the acquisitions of LZT and AP Solutions; - earn-out adjustments; - translation adjustments on goodwill denominated in foreign currency, - corrections of positions acquired (included in the “Other” line) within the allocation period.

The Group performs value tests on an annual basis or when loss of value indicators emerge. This exercise was carried out at 30 June 2020, in the middle of the health crisis, with a larger number of tests than usual, and a downward adjustment, with a variable amplitude, of the short and medium-term forecasts depending on the CGUs. Discount rates (WACC) and the growth rate to infinity used at 30 June 2020 are identical to those of 31 December 2019.

To conclude, the assets of the CGUs showing signs of loss of value demonstrate that their recoverable value is higher than their net book value. Consequently, no impairment was registered at 30 June 2020. Note that in this uncertain situation with the health crisis, forecasts and estimates made for these tests could be significantly modified subsequently.

3.2 HOLDINGS IN ASSOCIATES AND NON-CURRENT FINANCIAL ASSETS

 Investments in associates

The reduction in holdings in associates is mainly due to the sale of Horex during the period.

 Non-current financial assets

Hierarchy of the fair value of financial (In thousands of euros) Carrying amount according to IFRS 9 assets at 30/06/2020 Fair value by Fair value 30/06/2020 31/12/2019 Amortised comprehensive through Level 1 Level 2 Level 3 cost income without earnings recycling

Securities held for sale 10 962 1 126 12 089 11 928 12 089 Deposits and guarantees 15 514 15 514 15 044 Other long-term assets (loans and receivables) (1) 29 964 29 964 31 881 Total 45 478 10 962 1 126 57 567 58 852 - - 12 089 Other long-term assets are primarily comprised of loans with associates.

Securities held for sale include the following interests:

Variation in FV Variation in fair Fair value Fair value at Acquisition through Fair value at Entity % interest value through hierarchical Data used opening (disposal) comprehensive closing income level income PHINERGY LTD 9,10% 8 391 (120) 8 271 3 Other OTHER 3 537 271 0 10 3 818 3 Other Total 11 928 271 (119) 10 12 089

3.3 CURRENT ASSETS

(In thousands of euros) 30/06/2020 31/12/2019

TRADE RECEIVABLES AND CONTRACT ASSETS Trade receivables - gross value 587 323 703 585 Trade receivables - impairments (11 458) (10 021)

Trade receivables - net 575 864 693 564 Customer contract assets 169 161 167 059 Total 745 025 860 623 OTHER CURRENT ASSETS Inventory 0 136 Social security receivables 20 199 10 078 Tax receivables 37 421 39 359 Other receivables 7 750 5 779 Impairment of other receivables (886) (816) Prepaid expenses 24 671 13 907 Total 89 155 68 443

The following table shows the breakdown of the portfolio of trade receivables based on age:

30/06/2020 31/12/2019 (In thousands of Less than 6 6 months More than Less than 6 6 months More than euros) Unmatured Balance Unmatured Balance months to 1year 1 year months to 1year 1 year TRADE RECEIVABLES

Gross value 406 037 161 275 9 773 10 238 587 323 514 916 170 798 10 350 7 521 703 585

Provisions 0 (2 335) (1 393) (7 730) (11 459) 0 (1 164) (1 649) (7 208) (10 021)

Net values 406 037 158 939 8 380 2 508 575 864 514 916 169 635 8 701 312 626 641

Based on experience and considering its policy for recovering trade receivables, the Group feels that the level of impairment for the financial year is appropriate to the risks involved.

3.4 EMPLOYEE PROVISIONS AND BENEFITS

 Provisions

Labour disputes Commercial (In thousands of euros) Other risks (2) Total (1) disputes At 31/12/2019 4 449 628 15 475 20 551 Reclassification 1 544 (2) (1 470) 71 Exchange rate variations (1) (0) (34) (35) Provisions for the financial year 362 434 709 1 505 Reversals (provisions used) (81) (11) (5 841) (5 934) Reversals (provisions not used) (220) (9) (922) (1 151) At 30/06/2020 6 053 1 038 7 917 15 008 Of which current provisions 2 886 1 029 3 323 7 238 Of which non-currents provisions 3 167 9 4 595 7 771 (1) Social disputes involve sums that taken individually are insignificant. (2) The reversal of €5.6 million corresponds mainly to the reclassification as debt of a provision on a fiscal dispute in France.

 Employee benefits

Employee benefits primarily comprise end-of-career commitments. These commitments were decided at the end of June 2020 on the basis of the same actuarial assumptions as those chosen on 31 December 2019.

(In thousands of euros) Total commitment

At 31/12/2019 13 743 Change in scope 0 Reclassification 0 Cost of services provided 735 Interest expenses 60 Actuarial gains and losses 0 Benefits paid 0 At 30/06/2020 14 538

3.5 FINANCIAL LIABILITIES (EXCLUDING RENTAL DEBT)

Other Change in (translations (In thousands of euros) 31/12/2019 Inc Repayment 30/06/2020 Current Non-current scope adjustments, reclassification) Bank borrowings and related debt 119 147 70 016 (163 290) 168 (548) 25 493 22 498 2 995 Bank borrowings 117 663 70 000 (163 285) 168 (218) 24 328 22 454 1 873 Other loans and related debt 1 484 16 (5) (330) 1 165 43 1 122 Bank overdrafts 8 512 255 (144) (67) 8 556 8 556 Deposits and guarantees received 22 14 (4) 32 32 Other financial liabilities 293 16 (278) 379 409 328 81 Total 127 974 70 301 (163 716) 168 (236) 34 490 31 382 3 108 a b

Change in statement of cash flows financial liabilities (a+b) (93 415) (92 943) (472)

 Bank overdrafts

Taux Taux (En milliers d'euros) 30/06/2020 EUR GBP CAD Autres fixe variable

Emprunts auprès des éts de crédit 24 328 20 142 1 111 2 271 804 1 915 22 413

At 30 June 2020, this item consists of:

- The drawdown of the “Club Deal” for €20 million (short-term variable-rate financing) on a line opened for €160 million;

- Other mid and long-term loans denominated in foreign currencies amounting to €4.2 million.

3.6 RIGHTS OF USE AND RENTAL DEBT

 Usage rights

Computer Real estate (In thousands of euros) Vehicle leases equipment Other leases Total leases leases Gross value Gross value - 01/01/2020 185 098 26 037 4 509 147 215 791 New contracts 11 218 4 840 317 21 16 396 Decreases in lease periods/rentals and withdrawls (5 776) (1 959) (128) (33) (7 896) Change in scope 1 314 943 (42) 39 2 255 Translation adjustments (1 112) (3) (20) (1) (1 137) Gross value - 30/06/2020 190 742 29 858 4 636 174 225 409 Depreciation and amortisation Depreciation and amortisation - 01/01/2020 (31 169) (9 056) (1 511) (44) (41 780) Provisions (20 197) (5 529) (727) (34) (26 486) Reversals 2 548 1 774 24 22 4 368 Change in scope (502) (54) 1 (9) (564) Translation adjustments 348 1 5 1 355 Depreciation and amortisation - 30/06/2020 (48 971) (12 863) (2 207) (64) (64 106)

Net value - 30/06/2020 141 771 16 995 2 429 109 161 303

 Financial rental debt (current and non-current liabilities)

Computer Real estate (In thousands of euros) Vehicle leases equipment Other leases Total leases leases Rental debt - 01/01/2020 156 785 17 029 3 016 104 176 934 New contracts 5 803 4 397 317 21 10 538 Increases in duration / rent 5 416 443 0 0 5 859 Decreases in lease periods/rentals and withdrawls (3 095) (184) (104) (10) (3 393) Cash flow (repayments) (17 955) (5 521) (724) (33) (24 234) Change in scope 684 892 (41) 30 1 565 Translation adjustments (766) (1) (15) (1) (783) Rental debt - 30/06/2020 146 871 17 055 2 449 111 166 486

Current debt 31 133 8 857 1 413 67 41 471 Non-current debt 115 738 8 198 1 036 43 125 015

3.7 OTHER LIABILITIES

Other (translations (In thousands of euros) 31/12/2019 Change Change in scope adjustments, 30/06/2020 Current Non-current reclassification) Earn-outs (1) 23 661 (3 558) 0 (207) 19 897 1 448 18 448 Social security debt 211 001 16 290 1 989 (1 356) 227 923 221 533 6 390 Tax liabilities 138 414 (15 475) 384 (851) 122 472 122 472 Other liabilities 12 388 2 171 2 238 613 17 410 17 339 71 Total 385 465 (572) 4 611 (1 800) 387 702 362 793 24 909 (1) Earn-out related to company acquisitions

3.8 PERSONNEL EXPENSES

(In thousands of euros) 30/06/2020 30/06/2019 Salaries and benefits (907 321) (916 801) Set provisions to social disputes (61) 410 Retirement benefits (735) (1 294) Taxes levied on wages (11 302) (12 813) Employee profit sharing (1 513) (3 930) Total (920 932) (934 428)

The government aid measures in the face of the health crisis, such as those for short-time work in France, are entered as reduction in personnel expenses.

 Share-bases payments

PLAN Total Date of award by the Board 26/04/2017 26/07/2017 19/09/2017 25/10/2017 24/10/2018 18/06/2019 18/06/2019 15/11/2019

Preferred B Preferred B Preferred B Preferred B Ordinary Preferred B Ordinary Ordinary Class of financial instruments awarded share share share share shares share shares shares

Number of financial instruments awarded 100 450 814 49 550 150 000 of which number awarded to employees 100 450 391 49 550 150 000 of which number awarded to corporate officer 0 423 0 0

Number of instruments voided over the period 0 0 0 0 Number of instruments subscribed for over the period 0 0 0 0 Number of instruments outstanding at 30/06/2020 97 450 814 49 550 150 000

Fair value of the financial instruments (in euros) 2 555,1 2 389,6 2 862,2 2 856,4 73,7 4 899,9 92,5 96,4

Final award date 26/04/2019 26/07/2019 19/09/2019 25/10/2019 24/10/2022 18/06/2021 18/06/2023 15/11/2023 End of lock-up/ non-transferability period 26/04/2021 26/07/2021 19/09/2021 25/10/2021 None 18/06/2023 None None

Cost of services provided 2020 (In thousands of euros) 7 60 260 14 423 404 236 884 2 288 Employer contribution cost 2020 (In thousands of euros) 1 0 24 3 38 121 13 29 230 (In thousands of euros) 2 518

3.9 NON-CURRENT OPERATING INCOME AND EXPENSES

(In thousands of euros) 30/06/2020 30/06/2019 Restricting costs (3 352) (470) Fees associated with the acquisition of new companies (1 707) (581) Social security and tax adjustments (74) (2 645) Other 1 156 (817) Total other operating income and expenses (3 977) (4 513) Including other operating expenses (5 383) (4 728) Including other operating income 1 406 215

Other operating income and expenses over the period consist of restructuring costs (-€3.4 million), fees linked to acquisitions (-€1.7 million), and the adjustment of costs for the re-grouping of acquired companies (+€1.2 million) within the framework of the application of IFRS 3 (in particular the variation of debts on earn–outs). 3.10 NET FINANCIAL INCOME

(In thousands of euros) 30/06/2020 30/06/2019 Bank interest charges (478) (595) Interest on lease-financing agreements 0 0 Gross borrowing costs (478) (595) Income from receivables and investments 212 131 Income from the disposal of marketable securities 0 0 Net borrowing costs (266) (464) Interest on leases (IFRS16) (932) (774) Net borrowing costs and financial costs of leases (1 198) (1 238) Foreign exchange losses (5 836) (2 104) Other financial expenses (911) (154) Discounted financial expenses (186) (469) Financial provisions (1 305) (194) Other financial expenses (8 239) (2 921) Foreign exchange gains 5 675 3 181 Other financial income 14 708 1 068 Financial income as a result of discount 0 0 Reversal of financial provisions 525 0 Other financial income 20 908 4 249 Other net financial income and expenses 12 669 1 328 NET FINANCIAL INCOME (EXPENSES) 11 471 90

Net financial income was €11.5 million over the period and includes, in “Other financial income”, the capital gain from the disposal of Horex, previously consolidated using the equity method.

3.11 INCOME TAXES

 Breakdown of income tax expenses

(In thousands of euros) 30/06/2020 30/06/2019

Net income: Group and minority interests 60 544 76 924 Earnings of equity-accounted compagnies (1 366) (2 778) Impairment of goodwill 0 0 Share-bases payments 2 288 3 177 Income tax expenses 20 961 34 880 Pre-tax earnings 82 427 112 203

Tax rate of the consolidating company 32,02% 34,43% Theoretical income tax expense 26 393 38 635 Difference in tax rate versus foreign compagnies (5 535) (6 635) Difference in tax rate versus French compagnies 480 (424) Miscellaneous tax credits (3 523) (4 985) Inactivated deferred tax assets 1 225 1 568 CVAE (value added tax) reclassification 4 213 4 744 Other permanent differences (2 291) 1 977

Tax expense recognised 20 961 34 880

Effective income tax rate 25,43% 31,09%

Income tax distribution: Deferred taxes 1 548 387 Income tax payable 19 413 34 493 Total 20 961 34 880

The fall in the effective income tax rate at 30 June 2020 compared with 30 June 2019 is notably from the impact of the capital gain from the sale of Horex during the period and from a reduction in country tax rates in the Group (in France particularly).

 Deferred taxes

Deferred tax receivables and liabilities consist of:

(In thousands of euros) 30/06/2020 31/12/2019 Employee profit-sharing 819 3 322 Retirement benefits 3 488 3 727 Other timing differences 2 389 (268) IFRS 16 -91 1 933 Tax-loss carry-forwards 2 225 1 193 Total deferred taxes 8 830 9 906

Including: Deferred tax assets 9 453 10 382 Deferred tax liabilities (623) (476)

(In thousands of euros) 30/06/2020 31/12/2019 Deferred taxes at start of year 9 906 12 010 Impact on total income IAS 19/IFRIC 21 0 (3 039) Change in scope 100 203 Exchange rate variations 371 (320) Expenses (or income) for the period (1 548) 1 052 Deferred taxes at year end 8 830 9 906

In light of the health crisis, the Group valued the recoverable component of deferrable tax losses on the basis of a 3-year projection of the expected tax results. The amount of non-activated deferred taxes for tax-loss carry- forwards amounted to €11.0 million (€41.6 million basis) at 30 June 2020.

3.12 OPERATING SEGMENT INFORMATION

In compliance with standard IFRS 8 – Operating Segments, the financial information published hereinafter is the information used by the main operational decision-maker (the CEO) to assess the performance of business segments.

(In thousands of euros) 30/06/2020 30/06/2019 France International TOTAL France International TOTAL Net rev enue 491 078 749 302 1 240 380 571 173 721 079 1 292 252 Operating profit on activ ity 21 123 54 039 75 162 56 343 60 305 116 648 Rate of operating profit on activity/revenue for the segment 4,3% 7,2% 6,1% 9,9% 8,4% 9,0% Profit from ordinary activ ities 19 805 52 839 72 644 53 448 60 003 113 451 Operating profit 18 208 50 459 68 667 52 012 56 926 108 938 Net financial income 13 855 (2 384) 11 471 255 (165) 90 Income tax expense (8 161) (12 800) (20 961) (19 512) (15 369) (34 880) Earning of consolidated entities 23 902 35 275 59 177 32 755 41 392 74 147 NET OVERALL EARNINGS 25 358 35 185 60 543 35 560 41 366 76 925

(In thousands of euros) 30/06/2020 30/06/2019 France International TOTAL France International TOTAL Goodw ill 137 233 416 449 553 682 127 256 415 165 542 421 Inv estments in associates 0 1 065 1 065 29 202 2 433 31 635 Headcount at year end 12 800 23 350 36 150 13 275 22 225 35 500 Cash at end period 97 501 160 835 258 336 28 852 90 445 119 297 Financial liabilities 120 987 79 989 200 975 126 479 10 589 137 069

Net inv estments for the period 36 628 (25 870) 10 758 (7 550) (56 424) (63 974)

Companies included in the consolidation scope during the period contributed €4.0 million to revenue for the half-year.

3.13 EARNINGS PER SHARE

(In thousands of euros) 30/06/2020 30/06/2019

Net income, group share 60 646 76 409 Weighted average number of shares 33 707 795 33 423 772 Earnings per share 1,80 2,29

(In thousands of euros) 30/06/2020 30/06/2018

Earnings 60 646 76 409 Dilutive effect 0 0 Diluted earning 60 646 76 409

Weighted average number of shares 33 707 795 33 423 772 Effect of dilutions 507 818 713 354 Weighted average number of shares after potential dilution 34 215 613 34 137 126

Diluted earnings per share 1,77 2,24

3.14 STATEMENT OF CASH FLOWS

Changes in depreciation, provisions and other calculated income/ expenses 30/06/2020 30/06/2019

Amortisation of intangible assets 1 578 1 516

Depreciation of property, plant and equipment 6 102 5 452

Provisions for risks and expenses (5 003) 2 742

Other income and calculated expenses (1 301) (174)

Depreciation/amortisation of usage rights 26 486 22 372

Total 27 862 31 908

Breakdown of taxes paid 30/06/2020 30/06/2019

Repayments received 6 039 3 727

Payments made (32 217) (32 710)

Total (26 178) (28 982)

Change in working capital requirements 44 012 43 646 Trade receivables 101 545 (59 311)

Trade payables (3 622) 4 263

Other receivables and payables (2 815) 27 146

Total 95 108 (27 903)

Impact of changes in scope and earn-outs 30/06/2020 30/06/2019 Acquisitions of consolidated subsidiaries (24 267) (45 840) Disposals of shares of subsidiaries 39 375

Cash from new consolidated subsidiaries 10 114 6 117

Payment of earn-outs (7 194) (11 719)

Total 18 028 (51 442)

3.15 CONTINGENT ASSETS AND LIABILITIES

Contingent liabilities presented in the 2019 consolidated financial statements reflected a notable development in the dispute between ALTEN SA and the tax authorities with regard to the audit of the period from 1 January 2015 to 31 December 2017. The unfunded risk of €12.1 million mentioned at 31 December 2019 gave rise to an increase of €75,000 for the period. This dispute is now ended and the financial consequences of it definitive.

Other contingent liabilities remain unchanged and the group continues to defend the legitimacy of its stance with regard to the tax authorities.

3.16 RELATED PARTIES

 Compensation and benefits granted to Corporate Officers

Over the first half of 2019, there were no significant changes to the compensation reported at 31 December 2019.

 Relations with related parties

Over the first half of 2019, there were no significant changes to the information presented at 31 December 2019.

3.17 FINANCIAL COMMITMENTS

No material changes in financial commitments took place during the first half of 2019 compared to those published at 31 December 2019.

STATUTORY AUDITOR’S REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION

To the Shareholders,

In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements of article L. 451-1-2 III of the French Monetary and Financial Code ("Code monétaire et financier"), we hereby report to you on:

 the review of the accompanying condensed half-yearly consolidated financial statements of Alten, for the period from January 1st, 2020 to June 30th, 2020,

 the verification of the information presented in the half-yearly management report.

These condensed half-yearly consolidated financial statements are the responsibility of Board of Directors and were prepared on September 22th, 2020, based on the information available at that date and in the evolving context of the Covid-19 crisis and related difficulties to apprehend its impacts and outlooks. Our role is to express a conclusion on these financial statements based on our review.

1 Conclusion on the financial statements We conducted our review in accordance with professional standards applicable in France. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - standard of the IFRSs as adopted by the European Union applicable to interim financial information.

2 Specific Verifications

We have also verified the information presented in the half-yearly management report on the condensed half-yearly consolidated financial statements subject to our review. We have no matters to

report as to its fair presentation and consistency with the condensed half-yearly consolidated financial statements.

Neuilly sur Seine and Paris La Défense, September 23th, 2020

The Statutory auditors

Grant Thornton KPMG Audit IS French Member of Grant Thornton International

Jean-François Baloteaud Jean-Pierre Valensi Partner Partner

DECLARATION BY THE PERSON IN CHARGE OF THE HALF-YEAR FINANCIAL REPORT

“I declare, to the best of my knowledge, that the half-year condensed financial statements have been compiled in accordance with the applicable accounting standards and provide an accurate picture of the assets, financial position and results of the Company and all its subsidiaries, and that the half-year management report provides a fair view of the significant events that occurred during the first six months of the financial year, their impact on the statements, and the main uncertainties for the remaining six months of the financial year”.

23 September 2020.

Simon AZOULAY Chairman and Chief Executive Officer