The Great Networks of Life

➔ ➔➔

➔

A

N

N

U

A

1

L

9

R

9

E

7

P

O

R

T

Board of Directors Gérard MOHR Chairman & Chief Executive Officer

Christian PÉGUET Director & Managing Director Directors

Michel DAVELUY Henri DELHAYE Bernard HUVELIN Philippe LEMAISTRE Roger MARTIN Guy RICHARD Société Générale d’Entreprises (SGE), represented by Antoine ZACHARIAS

AUDITORS Statutory Auditors

Summary of contents Questions and answers for 1997

Deloitte Touche Tohmatsu - BMA Salustro Reydel

2

Alternates

Key figures for 1997

4

Michel Bousquet François Pavard

Operational organisation of the GTIE Group

5

A complete service provided

6

Infrastructure

8

Building services

12

Industry

16

Overseas Development

20

Management report and summary of accounts

24

➔

The power of a vast network

➔ ➔ ➔ ➔

The GTIE Group is a unique network of business units whose core staff of 18,000 professionals pool their expertise in the energy, information technology and communication sectors. One of the Group’s major strengths is its ability to act both locally and globally, by delivering a complete, customised service - a global solution from engineering to maintenance, even operations. This tightly woven network thrives on a system of interactivity creating synergy, which constitutes one of the Group’s primary advantages. Each business unit, reinforced by network synergies and improved responsiveness, adapts continuously to very different client needs, whether operating on local markets or expanding in Europe and throughout the world.

1

QUESTIONS AND ANSWERS FOR 1997

What were the most significant events of 1997 for the GTIE Group? Gérard Mohr: 1997, was first and foremost the year in which a closer relationship was forged within the SGE Group, on the initiative of the common shareholders of GTIE, Santerne and SDEL. The new GTIE Group - backed by over FRF 11 billion in turnover, its 18,000 employees and key market positions in Europe, especially in Germany, Great Britain and the Netherlands - is recognised as France’s leading operator in the engineering, procurement, construction in electrical power and communications sectors.

Pictured, left to right Patrick LEBRUN Company Secretary, GTIE Group Jean-Yves LE BROUSTER Chairman & CEO, FOURNIÉ-GROSPAUD François-Xavier HANICOTTE Managing Director, GARCZYNSKI TRAPLOIR Philippe LEMAISTRE Managing Director, SDEL Christian PÉGUET Director & Managing Director, GTIE Group Gérard MOHR Chairman & CEO, GTIE Group Michel DAVELUY Financial & Administration Director, GTIE Group Charles LICEN Deputy Managing Director, SANTERNE

What is the new Group’s operational structure? Gérard Mohr: This new grouping’s operational structure is designed, above all, to meet our client and market needs. It hinges on 450 autonomous business units, located close to their clients, who have their own identity and clear business plan. These companies have been grouped into four geographical management sectors: SDEL in the greater Paris area and the international market, Fournié-Grospaud covering most of southern France, Garczynski Traploir in western France and in the Overseas Territories and Departments and Santerne covering northern and eastern France. Our strong efforts over the past year have

2

confirmed the strength of this operational structure, and enabled us to carry out the required structural modifications and set up a common management information system. Our employees have readily understood and accepted these reorganisational moves, which are now completed and operational. With this new structure, what were the GTIE Group’s results in 1997? Gérard Mohr: In 1997, the first financial year under its new organisation, the GTIE Group recorded consolidated turnover of FRF 11.2 billion, which on a comparable Group structure, is in line with 1996. The Group also showed a total profit before tax and employee profit sharing and after amortisation of capital gains, of FRF 358 million, and net profit of FRF 160 million, which represents a rise of 11% on a comparable basis against last year. Our business units were to cope well with the organisational upheavals relating to the launch of the new GTIE Group and the overall difficult economic situation (regardless of a slight upswing in the third quarter). The economic situation’s main impact on GTIE Group activities in France were: weak or stagnant demand in French electricity consumption within the framework of deregulation; strict control of expenditure and careful choice of investments in the public sector, intensive competitive efforts by rival companies in the private sector, whose horizons are becoming more and more global with the consequent repercussions on their suppliers. Abroad, market conditions remained buoyant in Great Britain and the Netherlands, in contrast to the German market which suffered a steep downturn. Over and above these very general tendencies, even the most cursory market analysis by segment reveals the contrasts between the various sectors in which the Group is active. What exactly are the Group’s main areas of activity?

either electrical power (63% of the total) or with information processing and communication, a field which is developing continuously and which produced a turnover of more than FRF 4 billion in 1997, over 37 % of the total. How is international expansion progressing? Gérard Mohr: The Group is regularly active in about twenty countries and, in a few years, has built up permanent operations in eleven: Germany, Great Britain, the Netherlands, Belgium, Denmark, Switzerland, Poland, the Czech Republic, Senegal, Malaysia and Singapore. The contribution from international projects to consolidated turnover rose to 12.5% in 1997. International expansion of our business networks, especially in Europe, constitutes a key element for increasing Group earnings. What are the GTIE Group’s prospects for 1998 and the years ahead? Gérard Mohr: 1997 opened a new chapter in the history of the GTIE Group, which ranks today among Europe’s leaders in engineering procurement and construction in electrical technology. It was a major task to consolidate the new structure, the product of a union between companies with very different cultures and identities, and to set it in an organisational framework that was unambiguous, transparent and customer-oriented. Now, we are ready to move ahead. These are the cornerstones on which we are constructing our future - a market segmentation strategy by business units based on market position, an emphasis on networking and a management philosophy that gives priority to our customers, our employees and our shareholders. The new GTIE Group should perform well in 1998, given these conditions. It can, thus, continue to launch business networks in Europe and worldwide, supported by a solid French base.

Gérard Mohr: The Group’s activities fall into three main areas: infrastructure (37% of total activity in 1997): facilities for the building and services sectors (24%); and industrial process facilities (39%). In these three areas, described in detail in the following pages, the Group’s companies provide services connected with

3

The GTIE Group’s operational structure

450 fully autonomous business units with their own strong corporate identity and sense of purpose divided into four geographical management zones, enable us to adapt quickly to our customer and

➔

market needs.

➔

Santerne 23-25, rue du Dépot 62063 Arras Cedex 9 92154 Suresnes Cedex Tel-: (33-3) 21 60 93 00 Fax-:(33-3) 21 48 32 95

Garczynski Traploir ZIN- rue Thomas-Edison 37 X 72040 Le Mans Cedex Tel-: (33-2) 43 77 77 77 Fax-:(33-2) 43 28 50 19

➔

SDEL Immeuble Gallieni 2, rue Benoît-Malon BP 144 92154 Suresnes Cedex Tel-: (33-1) 41 38 50 00 Fax-:(33-1) 41 38 50 50

➔

Fournié-Grospaud 19, impasse Fourcaran BP 2160 31021 Toulouse Cedex 2 Tel-: (33-5) 61 58 79 00 Fax-:(33-5) 61 58 04 64

5

Key (consolidated) figures for 1997

➔

➔

in FRF million

in euros million

11,169

1,675

Operating profit

429

64

Operating profit after interest

506

76

Net profit

159

24

Cash flow from operations

540

81

Capital expenditure

429

64

Net turnover

Net turnover 1997

24 % service and building sectors 37 % infrastructure 39 % industry

information processing 37 % and communications 63 % electrical power

4

Workforce

18,400

From consultancy to turn-key projects

A complet

➔ Every client is different, as are his projects, whether they involve new installations, or upgrades of existing ones. He enjoys

➔

continuous follow through, from consultancy and design, to turnkey facilities, maintenance and operations.

Local presence, willingness to listen, responsiveness are hallmarks shared by companies in the Group. They are constantly raising the quality of their service offerings to satisfy customer needs better. By

In order to provide city or town lighting, the Group’s companies provide a full line of services: an analysis of existing systems, a new lighting plan, engineering and development of a lighting network and maintenance. They also set up facilities for supervising operations

pooling their expertise, resources

and for information management. Group

and experience, Group businesses

companies can manage the entire project, from

are able to manage the most

A to Z, including special needs, such as seasonal

complex and exacting projects,

festive lighting all with a commitment to

while assuring the fulfilment of the

mutually agreed results within a specified

most extensive and exhaustive

budget.

requirements.

➔ 6

➔

te service provider

Maintenance plan for 35 Chronopost sorting centres

The Group has successfully demonstrated its ability as a designer and integrator of systems for Industrial Process Control and Automation; DCS and PLC systems.

relay stations for mobile telephones. They can carry out all installation phases for company communication networks, right up to taking complete charge of engineering and operations - in other words, overall I.T. systems management.

Today the Group is expanding its range of global solutions to meet the expectations of the industrial maintenance sector. After having installed and precommissioned all the control systems for the Elf Leuna 2000 refinery in Germany, the Group’s companies have joined forces to guarantee the maintenance of the instrument, electrical and mechanical facilities for the next five years. The Group’s companies have an active role in every link in the telecommunications chain, from providing the infrastructure needed by operators to implementing company or community voice-data-image networks. They carry out surveys for proposed sites and install

7

Infras

t r uQuality c tof service, u rsafety e and respect for the environment Guaranteeing the highest quality service and user safety, while protecting the environment, are primary goals of infrastructure operators and local government leaders.

➔➔ Infrastructure

➔ We carry out the most specialised projects for infrastructure operators and local governments in such fields as: production, transportation and distribution of electrical power, city and town lighting, road, air, river, sea and rail traffic networks, meteorology, communication networks and other urban projects.

Installing a radio communications relay for the SFR network

Electrical power One of the most pressing concerns of infrastructure programmes is the quality of their integration with the environment. The Group is a long-standing innovator in this field where it has been actively designing solutions that address these concerns. Development of underground high-voltage lines, involving significant capital investment, represents an important stake in the future. The Group’s companies have perfected a range of solutions by putting together specific components, for providing transformer-stations that blend into the environment, called ATOLL, which are in the process of development. Electrical power can also contribute to environmental quality. This is why the GTIE Group is involved in the PRAXITÈLE project - an experiment involving electrically powered selfservice vehicles in Saint-Quentin-en-Yvelines.

Laying a HV underground power line at Aix-en-Provence

10

➔ Positioning a mobile telephone antenna

Roissy: Air terminal 2F

Users want easy access to town centres and car-parking systems designed to assure quick entry and exit and real-time information.

Lighting Lighting makes a vital contribution to the quality of life and safety, while making villages and towns more attractive. A well-lit road at night is safer for pedestrians and drivers. A monument, central square or other site, artistically lit, does full justice to a community’s heritage. A town that springs to life and becomes more beautiful for residents is itself a cause for celebration. The Group’s companies, backed by their professional teams’ long experience in this area and their awareness to both technical evolution and local authorities’ requirements, offer a full product and service line adapted to specific customer needs.

Transport Transport users are primarily concerned with safety, comfort and efficiency. This includes well-lit motorways, emergency call networks for improved safety; better-regulated road, air, river and sea traffic lanes guided by accurate data systems.

The GTIE Group is at the cutting edge of these services. Having successfully completed earlier projects including Sirius in Paris, Coraly in Lyon or Migrazur on the Côte d’Azur, it took part in new landmark operations in 1997, including Siter in Hauts-de-Seine.

Communication infrastructures The Group is extensively involved in communication infrastructures from site selection, installation and maintenance feasibility studies to the maintenance of radio-communication relay stations. Group businesses set up and maintain transmission networks and local networks for the main operators.

➔➔ 11

La Défense, Société Générale Towers

AXA - Place Vendôme - Paris.

10

Tribunal de Grande Instance, Bordeaux

Building services

quality of life through improved communications We design facilities for the building sector. These buildings promote a better quality of life where people communicate in a common space. They are adapted to meet the everyday needs of their occupants: easy access, quick document and image exchanges, complete security for people and property, facilities to accommodate teamwork.

The building services sector

➔➔

➜

➔ Service sector facilities in the fields of education, hotels, health, culture, sports and leisure, shopping centres and hypermarkets, logistical centres, banking, insurance, government and office buildings, are also centres of community life where demands for technical equipment, safety and voicedata-image communications are increasing dramatically.

Whether it’s a matter of new buildings or renovation, the GTIE Group’s companies fully master the technologies they implement in electrical and information networks, management techniques and communication systems, especially important for occupied offices which have to be renovated without disrupting the normal work flow. By pooling resources they are able to carry out a full technical renovation programme; they add to this well-rounded expertise, a sound understanding of how these sectors operate and their special requirements.

Corporate communications This expertise is essential for developing the increasingly complex, integrated voice-data-image networks, which the Group’s customers are building to take full advantage of the information technology revolution unfolding before our very eyes. The Group’s companies, benefiting from their strong support network, are able to propose a full range of services and technical solutions, from simple consulting to complete information management i.e., designimplementation-operations.

14

➔ L’Oréal - Aulnay-la-Barbière

Maintenance The complexity of equipment installed in today’s facilities, including monitoring and supervision of heating, air conditioning, power, fire detection, control of alarms and access, centralised management techniques, sound and video systems, demand a high degree of systematic quality maintenance. This affects performance and reliability, as well as the safety and wellbeing of occupants. The Group’s companies, highlighting the network’s strengths, have devised a complete spectrum of customised, local services to meet this demand.

Cegetel Capitol

15

Cabling of aircraft systems

Rewinding of motors in Birmingham Lubrizol - Le Havre

Pharmaceutical laboratory

Indu s t r y Quality, schedule and cost control The priority of industrial companies is to produce better, faster and at lower costs, whether in the automobile, petroleum, food and agriculture, aeronautics, chemicals or pharmaceutical sectors.

Industry

➔ Industrial companies must have, above all else, reliable, responsive

Colombes effluent treatment plant

and flexible production facilities that guarantee quality and accountability. They strive to optimise their return on their capital investment, while integrating and rechanneling ever more sophisticated information flows. GTIE Group companies provide daily support to help achieve these goals, at the heart of industrial

Close to industrial companies and their production processes GTIE Group companies, supported by more than 500 installations located near production sites, offer industrial customers an exceptionally close-knit network of experts, readily available and dedicated to their professions.

processes. All proposals are based on sound knowledge of the industry in question. Group businesses have a long-standing policy of specialisation by industry; thus managers place a strong emphasis on fully understanding each client’s industrial processes, risks, goals and development path. Drawing on their proven expertise in energy and information networks, combined with their integration and design skills, they propose the solutions best suited to each project.

Renault Maubeuge automobile plant

18

Zafiro Mobil: Floating, Production, Storage and Offloading (FPSO) platform. Equatorial Guinea

A global service offering The Group’s companies can tap the resources of a multi-network operation, providing global proposals, to meet customer needs. These include a wide range of industrial projects, from the construction of a grass roots installation to debottlenecking, optimisation and revamping. Network businesses draw from an expert knowledge base to also cover client needs in hydraulics, robotics and industrial production technology. They can link up the recognised leader in each process with the local partner who is closer to the situation, thereby, drawing on internal and external skills to offer the best solutions to specific problems. The Group’s companies, accustomed to this work method and on the basis of many years of experience, complement each other in a spirit of co-operation. However, the customer benefits from having a single spokesperson and project manager, who settles operational issues and is fully accountable for project performance.

Specialised products The GTIE Group, based on a strong mastery of existing management tools, has developed special products, especially in software applications, enabling it to improve and round out its service offering. CPI/GFA, for example, built on the easyto-access UNIX platform, is a multi-function software application for supervising and managing industrial and manufacturing processes and centralised technology operations. Available in several languages, this software is today used on more than 500 industrial sites and will see important new developments.

➔➔ 19

Overseas

development In Europe and throughout the world From its solid French base, the GTIE Group is present in some 20 countries including 11 on a permanent basis.

Overseas development

➔➔

➜

➔ The GTIE Group, regularly active in some twenty countries, is permanently established in eleven: Germany, Great Britain, the Netherlands, Belgium, Denmark, Switzerland, Poland, the Czech Republic, Senegal, Malaysia and Singapore.

Local operations and a network with a worldwide reach The GTIE Group, suppor ted by its networks of 450 companies, is geared to intervene quickly, in continental France, the French Overseas Territories and Depar tments, Europe and throughout the world. Every one of its autonomous and independently managed business units benefits from the financial backing of a major group and suppor t in numerous areas including training, development and communication. Well established in their local areas and very close to their customers, they are also equipped for major projects, even projects far away from their home bases, because they share with the whole network the same values of unity, strict professionalism and innovation.

The “Club Med” village at Cap Skiring in Senegal

22

➔ The Vasco da Gama bridge on the Tagus. Lisbon, Portugal

In Europe and across the world A long-standing overseas presence The GTIE Group, based on solid positions in continental France, has established a long-term presence in France’s Overseas Depar tments and Territories. More than 500 exper ts work for the Group in the Guadeloupe and Mar tinique archipelagos, in the Antilles, Guyana and on the Island of Reunion. Operating closely with network companies in continental France, local Group businesses have consistently contributed to the well-balanced growth of these overseas operations.

Group businesses have adapted to the increasingly global economy and trading system and have seen their customer base widen accordingly. By acting local and thinking global, the Group’s networks throughout Europe and across the world are able to bring their strengths to bear on the most distant projects.

➔ The Maxwel workshops in Radon, Poland

23

Management Report and Summarised Financial Accounts for Fiscal Year 1997

Statutory auditors’ report on the consolidated financial statements (for year ended 31 December, 1997)

In accordance with the assignment given us by the Annual General Meeting, we have audited the accompanying consolidated financial statements of the GTIE Group for the financial year ended 31 December 1997 such as they are presented in the present annual report. The financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion of these financial statements, based on our audit. We conducted our audit in accordance with generally accepted French auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements, referred to above, present fairly, in all material respects, the culture and financial status as well as the financial results of the entire group of companies included in the statements. Without qualifying our opinion, we draw your attention to note 2, paragraph 6 of the appendix, which describes a change of accounting method used in relation to retirement agreements. We have also verified the information provided in the report concerning management of the Group. We are satisfied that the information is fairly stated and agrees with the consolidated financial statements. Paris and Neuilly, 7 April, 1998

The Statutory Auditors Salustro Reydel Bernard Cattenoz

24

Bertrand Vialatte

Deloitte Touche Tohmatsu - BMA Michel Bousquet

Group Management Report The market Despite a slight improvement in the third quarter, a difficult economic climate worldwide continued to affect the GTIE Group’s various markets throughout 1997. Recognisable trends include weak electricity consumption in France, imminent deregulation, stringent control of expenses and a selective approach to capital spending for public sector works, stiff competition from rival companies, often on an international scale with attendant repercussions on suppliers. Beyond these general tendencies, only a market sector analysis will reveal the contrasts between the various sectors in which the Group is active. The number of programmes was reduced for the transmission of electrical power, for reasons just given, particularly in the case of high-voltage lines. In response to increased competition, the Group’s business units are focusing on productivity and innovation in connection with underground high-voltage links or electricity substations that blend into the environment. There is a significant need to address environmental and lifestyle concerns in rural electrification and public lighting, yet programmes are subject to substantial budgetary constraints, including financial and tax budgets. Amidst heightened competition, the Group’s business units remain focused on research in the core areas of quality, modernisation and innovation. On a more encouraging note, promising new developments are emerging in the field of infrastructure linked to electric power and information. Several of the Group’s business units are involved in the PRAXITEL project - an experiment with self-service electrically powered vehicles at Saint Quentin-enYvelines. Backed by references from Sirius, Coraly, Migrazur and, more recently Siter, the Group is ideally positioned to provide management systems for controlling traffic and signals in urban areas. Finally, the Group is extensively involved in developing telecommunications infrastructure, a sector in full expansion, which is nevertheless, subject to stiff competition. The industrial services sector differed markedly last year, according to region and sector. Capital investment in France is still in deep decline compared with levels at the beginning of the decade, reacting to the slightest market fluctuation. However, efforts undertaken by the Group’s business units to specialise by process and thereby submit differentiating proposals are proving successful. In particular, services linked to information processing and communication networks in industrial envrionement are expanding.The network’s linkages have often made a critical difference by enabling us to offer the type of global solution that meets market expectations.

safety regulations.This is especially true in regions, such as Nord-Pas-de-Calais, where a project has been completed with investments linked to the cross-Channel tunnel. The Group’s business units are also intensifying their efforts to raise service levels and move towards increasingly innovative offers in intelligent building systems, network integration or maintenance. Internationally, the market remained favourable in Great Britain and the Netherlands.Whereas, a significant downturn in the German market has hampered CONTROLMATIC’s sales throughout the year, affecting profits and cancelling out the recovery the company had made in 1996.

Results. The GTIE Group reported consolidated turnover of FRF 11.2 billion for 1997, in its first year of its new organisation, effective on January 1, 1997, which merged the GTIE Group (retained its previous structure), SDEL and SANTERNE. In achieving this result, which is in line with the figure for 1996, the Group’s 450 business units successfully withstood a difficult economic climate worldwide and organisational change. Profit before tax and employee profit sharing, and after amortisation of FRF 24 million in goodwill, amounted to FRF 358 million, representing 3.2% of turnover, in line with the previous year’s figure (FRF 341 million). Net profit before earnings of consolidated companies and after minority interests reached FRF 160 million (or 1.43% of turnover) and net profit of FRF 159 million was recorded. The Group’s net cash position improved throughout the year, standing at FRF 1,981 million at 31 December 1997. Cash flow generated over the year amounted to FRF 540 million, enabling the Group to easily cover capital investments and financial flows.

In the building services sector, our companies are still facing a difficult environment despite being involved in programs such as education and health, where the upgrading of existing buildings has become necessary due to increasingly stringent

25

The Outlook for the GTIE Group in 1998 A pivotal year in the GTIE Group’s history, 1997 witnessed the birth of a new group, the growing strength of its operational mechanisms, the centralisation of its information systems, the implementation of requisite legal restructures and the process of learning to live together. Our projects and budgets for 1998 attest to genuine confidence and a strong willingness to go forward, despite the current lacklustre economic environment.

Our forecasts for the coming year, which have been carefully calculated, take into account our intention to refocus some projects and also to recognise the economic difficulties affecting some of our business sectors, especially those which are energy-related. Orders taken and invoicing in the early weeks of 1998 confirm these forecasts.

These positive goals will motivate the GTIE Group’s teams to approach their markets and their customers with even greater determination in 1998.

Consolidated profit and loss statement (in thousands of French francs)

Net turnover Other operating revenues

1996

11 169 074

6 291 256

181 231

30 825

Materials cost of sales

(2 947 505)

(2 051 680)

Outside services

(3 046 149)

(1 322 738)

Payroll

(4 286 638)

(2 392 151)

Other operating expenses

(338 409)

(157 850)

Depreciation and provisions

(302 368)

(158 197)

Operating Profit

429 236

239 465

Interest profit Interest charges

64 559

37 804

(21 835)

(22 953)

Financial provisions

34 110

22 868

Net interest expense

76 834

(8 017)

Operating profit after interest *Non-operating profit gains on disposals of assets

506 070

231 448

18 059

5 726

*Non-operating expense and other non-operating profit

(43 438)

11 213

Provisions for exceptional items

(97 787)

5 229

(123 166)

22 168

382 904

253 616

Net non-operating profit/(expense) Profit before tax, employee profit sharing and goodwill Amortisation for goodwill

(24 391)

(19 151)

Employee profit sharing

(26 876)

(20 166)

Corporate tax

(171 771)

(96 405)

Net profit of fully consolidated companies

159 866

117 894

80

188

159 946

118 082

Equity in net earnings of associated companies Net profit before earnings of associated companies Minority interests Net profit

26

1997

(1 313) 158 634

(17 253) 100 830

Consolidated balance sheet Assets 1997

1996

Fair value adjustments

57 631

38 932

*Other intangible assets

13 480

6 844

71 111

45 827

(in thousands of French francs)

Deferred charges Goodwill Owned property, plant and equipment Construction in progress Depreciation Non-consolidated investments Investments accounted for by the equity method Other long-term investments

Total fixed assets

51 297 039

228 820

2 281 502

1 620 272

8 482 (1 533 346)

7 323 (1 098 793)

756 638

528 802

91 448

10 347

1 733

48 290

41 575

16 549

134 756

75 186

1 259 544

878 635

Stocks and work in progress

7 074 820

4 472 496

Accounts receivable

4 877 776

3 099 135

Deferred tax assets

16 060

11 883

11 968 656

7 583 514

Other receivables

1 883 518

675 684

Short-term investments

123 945

191 708

Cash and other short-term funds

234 477

193 797

2 241 940

1 061 189

Total current assets

14 210 596

8 644 703

Total assets

15 470 140

9 523 338

Liabilities and Shareholders’ equity 1997

1996

Capital

621 944

296 909

Share premium account

413 772

78 240

– Retained earnings

(25 092)

177 303

(in thousands of French francs)

– Foreign currency translation reserve

5 764

1 318

158 634

100 830

1 175 022

654 600

– in reserves

13 468

78 292

– in net profit

1 313

17 253

14 781

95 545

– Net profit Shareholders’ equity Minority interests

Minority interests Shareholders’ equity including minority interests

1 189 803

750 145

Grants and provisions

762 287

253 175

Long-term borrowings

97 083

64 144

Other long-term debt

26 750

45 883

2 075 923

1 113 347

Total long-term capital Trade accounts payable

1 757 909

890 664

Other accounts payable

11 465 681

7 347 157

Deferred tax liabilities

101

73

13 223 691

8 237 894

Short-term borrowings

92 872

109 129

Other short-term debt

77 654

62 968

170 526

172 097

Total current liabilities

13 394 217

8 409 991

Total Liabilities and Shareholders’ equity

15 470 140

9 523 338

27

Consolidated statement of changes in financial position 1997

1996

159 866

117 894

(in thousands of French francs)

SOURCES OF FUNDS Funds from operations Net profit before earnings of associated companies Dividend received from associated companies Depreciation and provisions Cash flow from operations Gains from disposals of assets Cash flow

–

24 638

398 347

184 371

558 213

326 903

(18 059)

(5 722)

540 154

321 181

833 015

280 586

Non-operating activities Issue of parent company stock Issue of subsidiaries’ stock

59 478

282

Increase in long-term borrowings

70 182

43 266

Proceeds from disposals of tangible/intangible assets

60 989

14 247

7 684

8 732

Proceeds from disposals of investments Interest collected on long-term loans and deposits

7 356

4 213

Total funds from non-operating activities

1 038 704

351 326

Total sources of funds

1 578 858

672 507

Acquisition of investments

270 779

190 798

Acquisition of other financial fixed assets

947 668

29 383

USES OF FUNDS Capital expenditure

Total funds used in investing activities

144

151

1 218 591

220 332

Other uses of funds Increase in long-term loans and deposits Repayment of long and medium-term debt Dividends paid Total other uses of funds Total uses of funds Net sources/(uses) of funds

6 815

4 106

90 480

43 096

68 577

359 303

165 872

406 505

1 384 463

626 837

194 395

45 670

Working capital: – Effect of changes in Group structure – Effect of exchange rate fluctuations

385 062 (1 454)

– Effect of balance sheet reclassifications: short-term/long-term Change in working capital

6 081 (1 476)

3 664

2 229

581 667

52 504

USE OF THE CHANGE IN WORKING CAPITAL Change in working capital requirement Changes in stock and work in progress Changes in receivables

2 602 324

51 169

1 782 818

(48 946)

Charge in accounts payable

(4 985 798)

(187 130)

Net change in working capital requirement

(600 656)

(184 907)

Change in short-term debt Change in short-term borrowing Change in other short-term receivables Net change in short-term debt Change in cash and cash equivalents

28

1 571

52 864

1 207 835

67 800

1 209 406

120 664

(27 083)

116 747

Design, printing and English adaptation : SDE Conseils en Information - Levallois Photographs: Photogram-Stone (Baxter, Braaschy, Cambon, Duka, Eastep-Jons, Konin, Lamg, Mercer, Monneret, Myers, O’Clair, Reese, Stewart,Thatcher,Thomaidis,Wolman). M.Baret, Baxter- Eastep, Deritend, Drouin, J.L. Fernandez, Fournie-Grospaud, GTIE A. Hatat, Image'In, G. Lefauconnier, Photogram-Stone, Sipa-Image,Vigouroux

COMPAGNIE GÉNÉRALE DE TRAVAUX ET D’INGÉNIERIE ÉLECTRIQUE Limited Compagny capitalized at FRF 621,944,000 - RCS Versailles B 391,635,844 - Siret: 391,635,844,00023 - NAF 453A 280, rue de Mai 1945 - BP 72 - 78368 Montesson Cedex Tel-: (33-1) 30 86 70 10 Fax-: (33-1) 30 86 70 01