(1,1) -1- 0804277_BOLL_RA 2007 GB_couv.indd 24/06/08 13:53:44 2007 Annual report Bolloré 0804277_BOLL_RA 2007 GB_couv.ind1 1 224/06/084/06/08 113:53:443:53:44 (1,1) -2- 0804277_BOLL_RA 2007 GB_couv.indd 24/06/08 13:53:35 Board of Directors As of March 19, 2008 Vincent Bolloré Chairman and Chief Executive Offi cer Antoine Bernheim Vice-Chairman Comte de Ribes Vice-Chairman Cédric de Bailliencourt Vice-Chairman Chief Executive Offi cer Jean Azéma Representative of Groupama SA Marc Bebon Representative of Bolloré Participations Jean-Louis Bouquet Thierry Marraud Representative of Financière V Hubert Fabri Philippe Giff ard Denis Kessler Jean-Paul Parayre Georges Pébereau Financial information Michel Renault Thierry Marraud Olivier Roussel Financial Director Tel.: +33 (0)1 46 96 47 04 Michel Roussin Fax: +33 (0)1 46 96 40 26 Cédric de Bailliencourt François Thomazeau Director of Shareholdings and Communication Tel.: +33 (0)1 46 96 46 73 Fax: +33 (0)1 46 96 48 76 00804277_BOLL_RA804277_BOLL_RA 20072007 GB_couv.ind2GB_couv.ind2 2 24/06/08 13:53:35 Annual report Bolloré 2007 Contents 2 General presentation 2 Simplifi ed organisation chart 3 Group profi le 4 Chairman’s message 6 Key fi gures 8 Investor information 10 The Bolloré Group throughout the world 12 The Bolloré Group’s commitments 14 Social and environmental responsibility 16 The Group’s trades 18 Plastic fi lms – Thin papers 19 Electric batteries – Supercapacitors 20 Dedicated terminals and Systems 21 Fuel distribution 22 International logistics 24 Transportation and logistics in Africa 26 Communication, media 30 Plantations 31 Shareholdings 32 Annual fi nancial report 35 Management report 65 Consolidated fi nancial statements 127 Summary corporate fi nancial statements 139 Resolutions 147 General information 174 Annual disclosure document 177 Index 00804277_BOLL_RA804277_BOLL_RA 20072007 GB.inddGB.indd 1 224/06/084/06/08 13:54:0913:54:09 Simplifi ed organisation chart as of March 6, 2008 (in percentage of capital ownership) 53.7% Sofi bol(1) Financière 14.2% Compagnie du Cambodge(2) de l’Odet 4.5% Société Industrielle et Financière de l’Artois(2) 4.9% Financière Moncey(2) 1.1% Nord-Sumatra Investissements(2) 99.9% 65.3 %* 4.0% Société Industrielle et Financière de l’Artois(2) 3.8% Nord-Sumatra Investissements(2) Financière 3.0% Imperial Mediterranean(2) du Perguet Bolloré 1.6% Compagnie du Cambodge(2) (Mediobanca) 3.0% AGF Vie 4.3% Groupama** Plastic Batteries and fi lms Supercapacitors Thin IER dedicated terminals and papers systems International CommunicationNord Sumatra logistics Investissementsand media Transportation Advertising, and logistics market research in Africa Fuel Plantations distribution Shareholdings Listed companies Transportation and logistics Fuel distribution * Directly and indirectly. Industry ** Estimated. (1) 49.98% directly by Sofibol and 3.7% by its 99.5% subsidiary, Compagnie Communication and media de Guénolé. Sofibol is controlled by Mr Vincent Bolloré. Plantations, shareholdings (2) Companies of the Rivaud Group, controlled by Bolloré. 2 00804277_BOLL_RA804277_BOLL_RA 20072007 GB.inddGB.indd 2 224/06/084/06/08 13:54:1013:54:10 Annual report Bolloré 2007 Group profi le 2) More than 32,000 employees in 108 countries 2) 6,399 million euros Turnover 348 million euros Net income 3,515 million euros Shareholder’s equity (as of 12/31/2007) The Bolloré Group, founded in 1822, has chosen to strategically diversify over the last twenty-fi ve years in order to obtain a better risk distribution. Today it is one of the 500 largest companies in the world. Listed on the Paris Stock Exchange, the majority interest of the Group’s stock is still controlled by the Bolloré family. This stable majority control of its capital allows the Group to develop a long-term investment policy. Thanks to a strategy of constant innovation and a desire for international development, it now holds strong positions in all its operating markets. This has enabled the Group to become a leading world provider of fi lms for capacitors and thin papers for printing as well as for transportation and logistics in Africa and access-control/identifi cation terminals and systems for air freight forwarding. It is also one of the fi ve biggest European transport organisation groups, the second largest French distributor of domestic fuel and the third largest supplier of shrink-wrap packaging fi lms. The Group has also developed an electric battery off ering highly promising prospects in the production of clean vehicles and the fi ght against pollution. Since the beginning of the 2000s, the Group has been investing in communication and media and has become a key player in this sector. Today, the Group has interests in Digital Terrestrial Television, free newspapers, cinema and television logistics, advertising, market research and telecoms... In addition to these various activities, the Bolloré Group also manages a number of fi nancial assets including plantations, real estates and a portfolio of other fi nancial interests. 3 00804277_BOLL_RA804277_BOLL_RA 20072007 GB.inddGB.indd 3 224/06/084/06/08 13:54:1013:54:10 Chairman’s message 4 00804277_BOLL_RA804277_BOLL_RA 20072007 GB.inddGB.indd 4 224/06/084/06/08 13:54:1113:54:11 Annual report Bolloré 2007 espite a tougher global environment, 2007 was a good year for the Bolloré Group, with turnover rising 7% to 6.4 billion Deuros, net income of 348 million euros which 322 million euros of Group share. Transportation and logistics performed very well, with an operating income of 251 million euros, up 26%, as did fuel distribution. These good results are largely off set by the increase in expenditure incurred, as predicted, in new sectors of industry and the media. Despite all of this, operating income rose by 3% to 105 million euros. There were also signifi cant capital gains resulting from the sale of Vallourec shares (346 million euros in 2007 after 541 million euros the previous year). The stability shown by the Group’s operating income in its core activities, backed up by high net fi nancial income achieved thanks to signifi cant capital gains, means that the Bolloré Group is well-equipped to meet the industrial challenges which will impact its operational profi tability in the coming years. These developments will occur in a number of diff erent sectors: – electric batteries and supercapacitors, where the Group acquired assets in Canada in 2007, set up a new supercapacitor production unit and is preparing to extend its battery factory in Brittany. It has also formed industrial partnerships in the bus and electric car sector enabling it to deliver fi nished products within eighteen months; – the media, where the free daily Direct Matin Plus, launched in partnership with Le Monde and the regional daily press of the Ville Plus network, has now supplemented the Digital Terrestrial Television channel Direct 8 and the free newspaper Direct Soir; – telecoms, where, having acquired WiMax licences covering the major French regions, tests are being carried out on pilot equipment intended for the deployment of WiMax. Along with these developments, the Group is increasing its industrial investments across all of its activities: in international logistics, carrying out targeted acquisitions to extend its global network, such as those carried out in Britain and the United States in 2007; in Africa, where the Group is strengthening its position as a logistics and handling leader, continuing its expansion into countries where it previously had only a limited presence and taking part in the process of privatising ports; in industry, where IER is diversifying into new radio frequency identifi cation technology – RFID – and in the Paper division, which is developing new products. The Group also has a strong presence in the advertising and market research sector, where it has large shareholdings, for example, in Havas and Aegis. 2007 was marked, in particular, by a spectacular improvement in the performance of Havas, which showed organic growth of 7.1%, achieved after several years of negative or very low growth, net income of 83 million euros, an 81% increase, and net indebtedness down to around just one year’s EBITDA. Our share portfolio, which includes the investment we have made in advertising and market research, was valued at 1.5 billion euros at the end of the year (and 2.2 billion euros if you include the 5% share in Mediobanca owned by Financière de l’Odet). At the beginning of 2008, the Group settled forward sales of Vallourec shares contracted at the beginning of 2007, receiving an additional 400 million euros. This transfer will be refl ected in the 2008 accounts by capital gains estimated at 354 million euros. After these transfers, and given the recent change in the Vallourec share price, the Group hoped to increase once again its holding in this company, in which it remains the major shareholder with a little over 2% of the capital. Despite an uncertain global environment, the Group is pursuing the developments it began a few years ago, while remaining cautions when it comes to investment and the fi nancial structure. More than ever before, the stable control of its capital and the diversity of its business activities allow the Group to develop a long-term vision while continuing to spread risks and maintain its independence. Vincent Bolloré 5 00804277_BOLL_RA804277_BOLL_RA 20072007 GB.inddGB.indd 5 224/06/084/06/08 13:54:1113:54:11 Key fi gures Change in turnover(1) Change in operating income(2) (excluding businesses sold, in millions of euros) and net income (excluding businesses sold, in millions of euros) 585 80008000 585585 70007000 6,399 5,980 60006000 5,445 4,981 50005000 4,738 4,698 348 4,326 4,090 40004000 266 30003000 175 176 135 139 20002000 119 121 102 105 78 76 10001000 56 36 21 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007 Operating income Net income (1) Not recalculated according to IFRS 5 for years prior to 2004.