The Colas Group in 2007

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Morgan Perry
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1 The Colas Group in 2007

2 Contents Significant events and key figures Colas business activity Major projects and contracts Construction materials Financial statements 2008 Strategy and outlook

3 1 Significant events and key figures in 2007

4 Significant events Strong, consistent activity for all businesses and nearly every profit center Another step forward for the Group s profitable growth strategy: Group share of net profit: 474 M (+20%) Many high-potential, forward-looking investments: 965 M Success in major projects, complementary to daily business Additional progress in the material sector, both in production (117 MT of aggregates) and in reserves (2.8 BT) 4

5 Significant events (cont.) Creation of railway activity able to respond to strong needs in France and around the world Bitumen activity is expanding: refinery in Malaysia, depots in Bordeaux, the Caribbean, the Indian Ocean, Ireland and North America Awarding of a PPP contract in Hungary: 380 M of works to be completed in 28 months Success in Research and Development: Vegecol, low temperature asphalt mixes, photovoltaic waterproof membranes, eco-designed road marking paint, Ecologiciel software for Colas network Tangible actions to support sustainable development: recycling, energy savings, workplace safety, recruitment of 8,000 people, participation in France s Environment Roundtables with concrete proposals 5

6 1 Consolidated key figures in millions of % 07/06 Revenue 11,673 10, % Profit from operations % Net profit (Group share) % Net profit % Cash flow 1, % Shareholders equity (Group share) 2,005 1,714 6

7 2 Colas business activity in 2007

8 2 Trend in revenue in billions of x 3 in 10 years

9 2 Breakdown of Group activity in millions of Roads Building materials Concessions: 16.7% Cofiroute Adelac (A41) Mars (Reims tramway) Civil engineering, Pipes, Mains 7,712 Safety, Signing Waterproofing 1,472 (66.1%) (12.6%) 2,489 (21.3%) Building Railways

10 2 Roads Buoyant business Acquisition of national, regional, local companies Texrod (France) Cesta Varazdin (Croatia and Slovenia) Major projects (Indian Ocean, central Europe) Development of innovative techniques worldwide: Vegecol, 3E asphalt mix, etc. 7.7 billion + 8% 10

11 2 Building materials Aggregates Emulsions and binders Asphalt mix Ready-mix concrete 1.5 billion 11

2 Civil engineering, Pipes, Mains Civil engineering Central Europe (waste water treatment plants in Csepel, Hungary and in Vranov, Slovakia) Indian Ocean (structures on

12 2 Civil engineering, Pipes, Mains Civil engineering Central Europe (waste water treatment plants in Csepel, Hungary and in Vranov, Slovakia) Indian Ocean (structures on the Tamarind Road) Pipes, mains and drilling Guyenne artery, compressor plants World record for long-distance, large-diameter directed drilling in India 901 million + 6% 12

13 2 Safety, Signing Safety equipment and products Acquisition of Profil R Nordgalva (guardrails) Road marking Success of eco-designed products (e.g., Ostrea) Promising growth in Canada Traffic access management Acquisition of Ero Industrie (toll gates, retractable bollards) 291 million + 7% identical scope of business 13

14 2 Waterproofing Production and sales of waterproofing membranes, skydomes, smoke removal Waterproofing of roadways (mastic asphalt) and buildings (roofing, cladding) Acquisition of Serin (steel building frameworks) 517 million + 17% 14

2 Building Construction and rehabilitation Greater Paris area Indian Ocean dynamic market Demolition / deconstruction of old buildings Leader in Greater

15 2 Building Construction and rehabilitation Greater Paris area Indian Ocean dynamic market Demolition / deconstruction of old buildings Leader in Greater Paris Highly technical activity Synergies with recycling units Success of highly technical deconstruction of Terminal 2E at Roissy airport 404 million + 30% 15

16 2 Railways Comprehensive railway offering Management and engineering of major turnkey projects Subways in Caracas, Venezuela & Cairo, Egypt Rail freight (aggregates) 820,000 tons transported in million + 90% 16 Consolidated revenue at Spie Rail over 7 months: 148 million

17 2 Mainland France % identical scope of business: + 7.9% Revenue 6.5 billion 17

18 2 North America + 1.5% identical scope of business and comparable exchange rates: + 6.9% Revenue Exchange rate effect: million 2.1 billion 18

19 2 Europe (excluding France) + 5.5% identical scope of business and comparable exchange rates: - 2.5% Revenue ~ 2 billion 19

20 2 Africa/Indian Ocean/Asia % identical scope of business and comparable exchange rates: % Revenue 657 million 20

21 2 French overseas departments % Revenue 487 million 21

22 2 Change in revenue 2007/2006 in millions of % 07/06 Identical exchange rates and scope of business activity 07/06 Mainland France 5,877 6, % + 7.9% French overseas depts % % Total France 6,295 6, % + 8.5% North America 2,059 2, % + 6.9% Europe (excl.france) 1,848 1, % - 2.5% Africa/Indian Ocean/Asia % % Total International 4,422 4, % + 4.7% Total 10,717 11, % + 6.9% Average exchange rate /US$

23 2 Geographical breakdown of revenue % 3.9% 5.6% 4.2% 17.3% 19.2% 54.8% 16.7% 17.9% 55.6% Mainland France North America Europe (excl. France) Africa/Indian Ocean/Asia French overseas depts. 23

24 2 Average number of Group employees in 2007 Total: (in 2006: 62,278) 66,724 34,115 France only: (in 2006: 31,846) 10.5% 14.3% 21.6% 67.9% 25.2% 60.5% Workers Office staff Management 24

25 3 Major projects and contracts in 2007

26 3 Ambatovy mining project in Madagascar Nickel and cobalt mine in Ambatovy Construction of access roads and earthworks Toamasina treatment plant Deep foundations and manufacture, application of concrete Contract value 100 million Duration: 24 months 26

27 3 Bypass at Thonon-les-Bains (France) Construction of an 8.5-km section of highway bypass 1,500,000 m 3 of earthworks 120,000 tons of asphalt mix Contract value 35 million Duration: 18 months 27

28 3 Area 10 in Great Britain Management and maintenance contract on road/motorway network in northwest England 500 km 2,500 structures Contract value 33 million / year Duration: 5 years 28

29 3 Rail network in West region of Great Britain Renewal (joint venture) of track in West, Southwest Coast and Midlands West, for Network Rail 95 million / year Contract value ( 128 million) Duration: October 2007 March 2009 (renewable for 5 years) 29

30 3 Highway M6 M60 in Hungary PPP contract (consortium) for Szekszárd-Pécs section Construction (consortium) 78 km of motorway 9 viaducts 4 tunnels Contract value Share of subsidiaries: 380 million 30 Duration of PPP: Duration of works: 30 years 28 months

31 3 Highway D1 in Slovakia Construction of an 8-km section between Mengusovce and Janovce, including 12 engineering structures Contract value 79 million Duration: 36 months 31

32 3 Route 15 in Pennsylvania (USA) Widening of a section of highway in Tioga County Construction of two engineering structures $26 million Contract value ( 18 million) Duration: 30 months 32

33 3 Apatou - Saint-Laurent Road in French Guiana Construction of 35-km of roadway in the Amazon Rainforest 400,000 m 3 of earthworks Contract value 20 million Duration: 3 years 33

34 4 Construction materials in 2007

4% International and French overseas depts.

35 4 Production of aggregates Millions of metric tons % 07/06 Total production % Mainland France % International and French overseas depts % 624 quarries and gravel pits Reserves: 2.8 billion tons 35

production 1,557 + 1% Mainland France 694-3%

36 4 Production of emulsions and binders Thousands of metric tons % 07/06 Total production 1, % Mainland France 694-3% International and French overseas depts % 158 plants 36

37 4 Production of asphalt mix Millions of metric tons % 07/06 Total production % Mainland France % International and French overseas depts % 621 plants 37

38 4 Production of waterproof membranes Millions of sq. m. Total production

39 5 Financial statements in 2007

40 5 Income statement in millions of Revenue 11,673 10,717 Depreciation, amortization and depletion (412) (368) Reversal (allocations) of provisions (150) (135) Profit from operations (current) Extraordinary items (3) 4 Profit from operations Interest income (expenses) (11) (15) Other finance income (costs) 4 3 Provision for income taxes (209) (168) Income from associates Net profit Minority interests 7 6 Net profit (Group share)

41 5 Earnings per share in French GAAP IFRS 41

42 5 Cash flow statement in millions of Cash generated from operations (before interests and income tax) , Income tax paid (197) (163) Net changes in working capital requirements 96 (39) A Net cash from operating activities

43 5 Cash flow statement (cont.) in millions of Purchase of property, plant and equipment (681) (513) Purchase of shares or purchase of assets (398) (143) Proceeds from sales of property, plant, equipment and shares Other investing activities 132 (12) B Net cash used in investing activities (833) (593) 43

44 5 Cash flow statement (cont.) in millions of Change in shareholders equity C Dividends paid (210) (158) Net increase (decrease) of long-term borrowings (8) 8 Interest income (expenses) (11) (15) Other (1) Net cash used in financing activities (191) (126) 44

45 5 Cash flow statement (cont.) in millions of A B C Cash flow from operating activities Cash flow from investing activities (833) (593) Cash flow from financing activities (191) (126) Other (8) (4) Net increase (decrease) (A + B + C) in cash and cash equivalents (34) 17 45

46 5 Free Cash Flow in millions of

47 5 Balance Sheet as of December 31, 2007 in millions of Variation 07/06 Equity 2,005 1, Long-term debt 149 (a) 137 (a) + 12 Long-term provisions Deferred tax liabilities Non-current liabilities 2,818 2, Non-current assets 3,285 2, Net financial position (b) (59) Non-current liabilities/non-current assets 85.8% 93.2% (a) Including 63 M in 2007 ( 52 M in 2006) in non-recourse debt Ensign (PFI Portsmouth) (b) Cash and cash equivalents less all financial debts 47

48 5 Group net cash position in millions of Cash and cash equivalents Group net cash position Bank overdrafts, short-term and long-term borrowings 48

49 5 Colas SA dividend for the period in millions of + 33% (1) (1) per share (1) If proposed dividend is approved by the Shareholders' Meeting on April 16,

50 Strategy and outlook

51 6 Strategy and outlook Activities: Roads remain the Group s core business and main line of development. Needs remain high because infrastructure is a prerequisite for economic growth. Colas businesses will remain diverse and this diversity will be expanded in light of opportunities, synergies and know-how: Roads: site work, binders, aggregates, the recycling of materials, ready-mix concrete, road-related civil engineering, bitumen Safety: guardrails, road paint, urban signing Railways: track, overhead lines, signaling, project management Waterproofing: mastic asphalt, cladding, roofing, façades, membranes, steel building frameworks Pipes, mains Building: construction, rehabilitation, deconstruction 51

52 6 Strategy and outlook (cont.) Geographic zones: The Group s international expansion will continue. Opportunities in 2008: Algeria (roads and rails), Australia (bitumen and binders), the Middle East (production of watertight membranes) Colas network will be strengthened: by creating an increasingly tight-knit network of profit centers: North America (United States and Canada) remains a key strategic market for Colas, irrespective of the economic climate. Europe still offers a number of possibilities, both in the east and in the south. Asia is a zone in which the policy of partnerships will remain on track, based on technical complementarities (industries, bitumen). France continues to offer acquisition opportunities. French overseas departments will reinforce their materials and industry activities. by developing certain activities in existing business units, using synergies (for example, in Morocco where the road construction units have been joined by safety, signing, civil engineering and rail activities) 52

53 6 Strategy and outlook (cont.) Targets: Occupy, build, develop long-lasting positions as market leader: in countries (France, French overseas departments, Madagascar, Hungary, Romania, etc.), in regions (states in USA and provinces in Canada) in niche markets (deconstruction in Greater Paris area, etc.) Reinforce the share of industrial activity in Group revenue Boost the share of international activity in Group revenue Expand activities geographically Reinforce the railway sector, on international markets in particular Be a major player in concessions and PPPs, with clear targets (in zones where Colas currently operates). Develop long-term contracts for roads, city streets and high-speed rail lines in France Participate in major projects complementary to the Group s daily business 53

54 6 Strategy and outlook (cont.) Means: Improve profitability to continue investing Focus on internal growth even if external growth remains the cornerstone of the Colas business model Attract the needed skills and invest in training Continue making profitable investments: Production tool (modern, productive) Research and Development Tangible sustainable development Reinforce synergies, trades, networks Business model Develop skills and know-how using long-term market positions (backed by a very tight-knit network of local businesses), thus responding to customer needs via broad-range service offerings Profitable growth 54

55 6 Work-on-hand as of end of January in billions of End of January 2008 End of January 2007 % 08/07 Mainland France % International and French overseas depts % Total Group % 55

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