2016

A N N U A L R E P O R T

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ContentsGOVERNANCE 4

EDITORIAL 5

ACTIVITY 6Public Sector 6 - 9

Industry and Private Sector 10 - 13

BAROMETERS 14General 14 -15

Corporate 16 - 17

Financial 18 - 19

DIALOGUE 20

SADE IS ALSO... 22

3

Governance

2016

Patrick LELEU 1General Managing DirectorYves FORZINI 2Deputy Managing Director FranceFrédérique GAUDIBERT-MAILLARD 3Marketing and Communications DirectorLoïc HEAULME-LAVERNE 4Human Resources Director

MANAGEMENT BOARDBruno KLIEBER 5Company SecretaryJérôme KUJAWA 6Performance DirectorMinh-Tuan NGUYEN 7SADE Ingenierie DirectorPhilippe VOISIN 8Deputy Managing Director International - Telecom - Electricity

Claude LARUELLE ChairmanJean-Claude DOUVRY Honorary ChairmanDominique BOUILLOT Honorary ChairmanSabine FAUQUEZ-AVON

BOARD OF DIRECTORSOlivier GRUNBERGPatrick LELEURoger MARTINAlain ROUSSEDaniel VERSANNEMartine VULLIERME

KPMG S.A. KPMG Audit ID

STATUTORY AUDITORS

2

4 3 6

1 85

7

4

2016

Editorial Having been at SADE for a few months

now, I have discovered a Group that

boasts a fine entrepreneurial spirit,

widely recognised technical capa-

bilities, and great sense of pride in belonging to such an

organisation.

My strategy for SADE Group can be put very simply. Along

with the Management Board, I have taken the decision

to build our strategy around three points of action, all of

which bear testimony to my confidence in the Group’s po-

tential: we must become stronger, we must grow and we

must broaden our horizons.

SADE must become stronger, ensuring the quality and results of

our operations by applying the organisational standards which

we already endorse, but which must be placed much more at the

service of our field staff. The company must also demonstrate

even more empathy towards customers, taking their issues and

concerns on board to the full and making them our own.

SADE will grow:

• in France by taking advantage of the upturn in public works and our positioning in promising markets

such as telecommunications and the nuclear sector where we can uti-

lise our full range of skills;

• internationally, by capitalising on our sound geographic bases and on

well-established and reliable prospects for the future;

• and as it takes on worksites of increasing technical complexity, SADE

will exploit its design and engineering potential to the full.

And lastly, SADE must broaden its horizons. We must constantly adapt to a changing world and an-

ticipate what our customers will want next. We must also enable our women and men to take full

advantage of this new digital age where information is shared instantly.

These are the reasons why I have decided that striving for performance will be the unifying theme of

SADE Group. All our (operational and business support) teams, our engineering and our capacity for

innovation will be driven by this performance.

You can see that I have great ambitions for our Group. They are based on a conviction that not only do

we have the ability to propel ourselves into the future, but also that we will play a vital role. The SADE

brand, with its strong and original know-how and soft skills, is well equipped to be highly successful

in these times of very rapid change that we are currently witnessing.

Patrick LELEU General Managing Director

“”

Become stronger, grow

and broaden our horizons

5

Public Sector

For the Lille European Metropolitan Area, recalibration of a siphon to absorb flow rates of up to 30 m3/s (i.e. 108,000 m3/h) and covering an open wastewater collector along the Roubaix canal

A C T I V I T Y

2016

6

For the Nord Local Council, modernisation of the locks of the Port of Gravelines: installation of metal cofferdams, drainage by pumping, adapting the existing structure to install new hydraulic equipment (lock mitre gates and metal lift gates), creation of underground networks and roads.

For La Défense Seine-Arche Public

Development Authority (EPADESA),

extension of the fire-fighting system of the La Défense district of

Paris. 35 sites open

SADE GROUP IS CONNECTED TO ITS CUSTOMERS VIA THE COMPANY WEBSITE, AND THE WEBSITES OF ITS SUBSIDIARIES

IN FRANCE AND ABROAD AND OF ITS SPECIALISED

DEPARTMENTS

Websites

For the United Nations Development Programme, in Armenia at the border with Georgia, design and building of three border-crossing and checkpoints (road and utilities maintenance over 4 hectares, struc-tural and finishing work on the buildings…).

7

For the Water Board in Crécy-la-Chapelle, using the traditional method to lay a 3.5 km, 350 mm-diameter pipe for a drinking water system.

Driving sheet piles along the Rance before creating

the discharge for an extension to the wastewater

treatment plant.

In Burkina Faso, as part of the Ziga 2 project to supply drinking water to

Ouagadougou, doubling the

Boudtenga tank to a capacity of

6,000 m3.

For the Vignoble-Grandlieu Water Board, renovation of the tank at the Basse-Goulaine drinking water plant, working on the interior using the Hydroclick® process, and on the exterior.

A C T I V I T Y

2016

Public Sector

8

1 For the town of Antibes, design and installation of hydraulic, electrical and automation systems for the new discharge station at Ilette, beside the sea.

2 In La Roche-en-Ardenne in Belgium, doubling of the Ortho-Luzery production pipeline where it crosses the Ourthe, for the Wallonne des Eaux company.

3 For Aix-en-Provence, renewal and reinforcement of wastewater networks for the development of 3 adjacent city centre squares (Prêcheurs, Verdun and Madeleine).

4 In Medias in Romania, upgrading of the drinking water treatment plant for SC Apa Târnavei Mari S.A.

2

43

1

59%OF TURNOVER

64.5%OF OUR

CUSTOMERS IN FRANCE

FOR TPM IN TOULON

€12.8 M

FOR ZIGA2 IN BURKINA FASO

Major international contract

Major contract in France

€28.6 M

6,000BUSINESS

DEALS

PUBLIC SECTOR:

5 KEY FIGURES

IN 2016

96,000

SADE GROUP IS CONNECTED WORLDWIDE VIA ITS ACTIVE

PRESENCE ON SOCIAL MEDIA

LinkedIn subscribers

Social networks:LinkedIn, YouTube

Industry and Private

Sector For RTE, securing the electricity supply for the SNF plant at Andrézieux-Bouthéon, with the construction of a 4 km underground 63,000 V line.

A C T I V I T Y

2016

10

Cleaning work, using a patented process, before passivation of an extension to the Climespace network, under construction on the Quai des Tuileries, in Paris.

For EDF’s nuclear power division, at the Paluel

power plant, preparatory civil engineering work and

rerouting networks prior to the construction of

the Diesel Backup Plant (DUS) buildings.

For CPCU, on Quai Saint-Bernard in

Paris, development and deployment

of a renovation technique for urban

heating return pipes using flexible

tubing.

724 visitsin 2016

AN APPLICATION TO CARRY OUT AND TRACK CONSTRUCTION SITE VISITS,

PAPER-FREE WITH DATA PROCESSED IMMEDIATELY

VIGISADE

11

For Aéroports de Paris, using 2 microtunnel boring machines (MTBM), construction of a stormwater collector (1,200 mm diameter) close to the runways and internal roads between a buffer tank and a collective sewerage system network.

For SNCF, as part of the retrofitting work

on installations at Colombes railway

station, creation of a wider access

staircase at the end of the platform,

between the tracks of the overhead

station.

A C T I V I T Y

2016

Industry and Private Sector

For Orange, operation using an aerial cradle to work on a connection point on a building façade connecting new subscribers to the ADSL broadband and Fibre to the Home (FTTH) networks.

12

2

1

4

3

TURNOVER 2016 / 2015

+3.7%

FOR ORANGE

Major contract in France

€115 M

2,700BUSINESS DEALS

Telecommunications

+18%OF TURNOVER

Nuclear

+60%OF TURNOVER

SADE GROUP ENTERS THE CLOUD FOR MORE EFFECTIVE

COLLABORATION: MOBILITY,SHARING, STORAGE,

ORGANISATION

Google

9,000employees connected

INDUSTRY AND PRIVATE

SECTOR:5 KEY

FIGURES IN 2016

5

1 For ContiTech Fluid Automotive Romania, bringing an industrial wastewater treatment plant into compliance with European standards as part of a design and build project.

2 For Seine et Marne THD, a subsidiary of COVAGE Networks, building infrastructure for the Sem@fibre 77 network for 12,000 homes.

3 For EDF, installation of WiFi network in the lecture hall of an EDF research facility on the Saclay site.

4 For Orange and Euro 2016, production of computer and telecommunications infrastructure for the fan zone in Lille: installation of WiFi access points to be hooked up to the network.

5 In the 15th district of Paris, providing services for the Maurice Roland Gosselin Syndicate. 13

GeneralFor Eau de Paris, replacing cast iron drinking water pipeline and non-drinkable water pipelines in the sewers under the Rue de Rennes, in Paris.

B A R O M E T E R

2016

1,530,000IMPROVED METER READING, WITHOUT DISTURBING THE CUSTOMER, REAL TIME BILLING, MONITORING NETWORK YIELD, LEAK ALERTS

meters connected

Remote meter reading

14

4

2

3 5

1

GENERAL:5 KEY

FIGURES IN 2016

Total workforce

8,748

OF ACTIVITY IS INTERNATIONAL

26%

4,500PLANS AND NOTES

PRODUCED

Share of water in turnover

57%

1 In the Tarn, for the SIAH of Dadou, construction of a 3.2 km cast iron drinking water supply pipeline and several floodgate chambers.

2 Construction project in the Ukkelbeek district of Brussels, for VIVAQUA, sinking a 1.3 km-long 24,000 m3 stormwater basin (exterior diameter 5.26 m).

3 For the Greater Paris Express in Boulogne-Billancourt, digging a prospect hole for the future line 15, to a depth of 38.2 m and 10 m diameter.

4 For the EDF nuclear division, at the Paluel power plant, preventive and corrective maintenance operations on excess pressure systems in the firefighting network.

5 As part of the building of the new drinking water plant in La Roche for Nantes Metropolitan Area, installation of all wet and dry networks.

Active in

27 COUNTRIES

15

CorporatePrior to work starting, onsite tacheometric surveys are carried out: altitude levels, trees, telegraph poles, walls etc., from which plans and digital cards are prepared at a later date.

B A R O M E T E R

2016

JOURNEYS MADE EASIER WITH DYNAMIC DISPLAYS AND RUNNING TOTALS IN CAR PARKS

50 to

70 %more quickly

Park

Smart Parking

9

11

Placeslibres

16

2

1

43

CORPORATE:5 KEY

FIGURES IN 2016

1 As part of the work to reroute drinking water supplies for the Greater Paris Express, installation of 210 m of pipes at depths varying from 1.10 to 2.5 m for SEDIF at Issy-les-Moulineaux.

2 For Toulon-Provence-Méditerranée, project to rehabilitate the Cap Sicié sewer by installing 2,800 glass-fibre reinforced polyester liner sections in La-Seyne-sur-Mer.

3 For Orange, putting safety measures in place around the worksite before carrying out work on copper networks.

4 For SFR, construction of passive facilities at the new Veolia headquarters at Aubervilliers: from signal distribution from active equipment (radio operator bays) to aerials.

5 For Eau de Paris, removal of brackets from an old pipeline passing under the Louis Blanc bridge by oxhydric cutting.

5

Current work-study contracts

255

1,482STAFF RECRUITED

IN THE YEAR

11%WOMEN

Staff distribution

14.3%60.7%

25%INTERNATIONAL

TELECOMMUNICATIONS

FRANCE

Frequency rate

18.117

FinancialB A R O M E T E R

2016

2012Pro forma* 2013 2014 2015 2016

TURNOVER 1,357.4 1,327.7 1,406.2 1,341.7 1,322.6Cost of sales -1,239.0 -1,185.1 -1,294.3 -1,220.5 -1,197.5Selling costs -1.5 -8.2 -8.5 -7.6 -13.1General and administration expenses -103.0 -95.0 -104.7 -102.9 -100.6Other expenses and operating income 14.9 0.0 0.1 -7.1 -4.9OPERATING INCOME 28.7 39.4 -1.3 3.7 6.5Cost of net financial debt -0.9 -0.4 -0.3 -2.9 -2.1Other income and financial expenses -5.2 -1.4 -2.3 -0.4 -3.1FINANCIAL INCOME -6.1 -1.9 -2.6 -3.4 -5.2Tax on profits and deferred tax -5.0 -14.8 -7.0 -7.3 -6.4Contribution from equity affiliates 0.2 0.3 0.5 0.5 0.8TOTAL CONSOLIDATED PROFIT 17.8 23.0 -10.4 -6.5 -4.3Share of the Group in consolidated profit 17.7 22.9 -10.5 -6.5 -4.3

2012 2013 2014 2015 2016

France Department 854 835 812 764 770Telecommunications Department 145 156 170 176 210International Department 359 336 425 402 343SADE Group 1,358 1,327 1,406 1,342 1,323

Consolidated profit and loss account in €M

Consolidated turnover in €M

Investment

€1 1.1 M

Current EBIT

€12.21 M800 site managers connected

HeliosSADE GROUP SITE MANAGERS IN THE

DIGITAL AGE WITH A TABLET TO ENSURE

DATA RELIABILITY AND SHARING WITH OTHERS

3 KEY FIGURES

2016

Turnover

€1,323 M

18

*Financial year 2012 corrected for the impact of IFRS 10 and 11

ASSETS 2012Pro forma* 2013 2014 2015 2016

Intangible fixed assets 0.4 0.3 0.4 0.4 0.4Tangible fixed assets 79.9 78.6 75.1 68.9 59.4Financial fixed assets 30.1 29.7 32.0 33.8 33.1Deferred taxes non-current assets 18.4 17.2 17.0 14.5 14.3NON-CURRENT NET ASSETS 128.8 125.8 124.5 117.5 107.3

Stocks and work in progress 28.4 29.9 31.7 20.2 24.8Operating receivables 505.2 544.8 612.1 547.0 582.3Cash 182.8 41.8 61.8 58.8

CURRENT NET ASSETS 700.6 757.5 685.6 629.0 665.9TOTAL ASSETS 829.4 883.3 810.1 746.6 773.2

LIABILITIES 2012Pro forma* 2013 2014 2015 2016

Shareholders’ equity 153.6 157.1 68.8 66.9 61.6Provisions for liabilities 39.1 41.1 43.5 39.8 36.8Long-term and medium-term financial debts 7.1 4.6 1.9 1.2 2.6Debts and other non-current liabilities 0.9 0.8 1.1 0.3 0.2Deferred taxes non-current liabilities 0.6 0.6 0.5 1.4 1.3

NON-CURRENT LIABILITIES 201.3 204.1 115.8 109.6 102.4Provisions for liabilities 47.5 43.4 59.4 40.2 39.7Operational debt 540.1 597.0 571.6 537.9 574.6Short-term financial debt 40.5 38.8 63.3 58.9 56.5

CURRENT LIABILITIES 628.1 679.2 694.3 636.9 670.9TOTAL LIABILITIES 829.4 883.3 810.1 746.6 773.2

2012Pro forma* 2013 2014 2015 2016

Operating income of integrated companies 28.7 39.4 -1.3 3.7 6.5 24.0 20.2 38.0 4.3 13.8Gains or losses from disposals of assets -16.5 -25.5 -2.0 -1.7 -3.5Miscellaneous -1.7 -0.4 -5.5 2.1 -0.9Cash flow 34.5 33.7 29.2 8.4 15.9Variation in operating WCR -24.4 14.5 -74.8 45.3 4.0Taxes paid -10.1 -12.7 -24.4 -10.0 -15.7NET FLOWS ON OPERATING ACTIVITIES 0.1 35.4 -70.0 43.6 4.2

Industrial investments -27.9 -25.1 -22.3 -18.6 -11.1Financial investments -9.9 -0.2 -1.7 -0.1 -0.1Sales of fixed assets and securities 33.3 27.0 3.2 3.6 5.4Dividends received (non-consolidated companies) 0.2 0.1 0.2 0.4 0.8Other investment flows 4.8 1.0 4.4 -1.2 1.0NET FLOWS FROM INVESTMENTS 0.4 2.9 -16.3 -15.8 -3.9

FREE CASHFLOW 0.5 38.3 -86.3 27.8 0.3

Increase in capital -2.4 0.0 0.1 0.0 0.0Dividends paid by SADE and its subsidiaries -23.1 -18.0 -75.3 -0.1 -0.1Net financial interest -0.9 -0.4 -0.3 -2.9 -2.1NET FLOWS ON FINANCIAL ACTIVITIES -26.5 -18.4 -75.5 -3.0 -2.2Impact of exchange rate and other movements 1.8 0.0 -1.1 0.6 -0.2VARIATION IN NET FINANCIAL DEBT -24.2 19.9 -162.9 25.4 -2.0

Balance sheet in €M

Table of variation in consolidated net financial debt in €M

Depreciation, amortisation and variation in provisions ex. WCR

19

Dialogue

2016

Yves FORZINI, Managing Director France, Bruno KLIEBER, Company Secretary, and Philippe VOISIN, Deputy Managing Director International Operations - Telecom - Electricity - International, give their perspective on the SADE Group and discuss its prospects for the future.

What is your perception of the SADE Group today?

YF: The SADE Group is above all a team of men and women ready to seize the opportunities on offer as we come out of the economic crisis which has so severely affected the civil engi-neering sector in France.

BK: A Group undergoing change, with new cus-tomers, new markets and significant consolida-tion in telecommunications business. A Group that has confidence in its future. Lastly, a Group full of positive energy and enthusiasm.

PV: A great Group, one that has retained all the fundamental characteristics that made its repu-tation and are still the reason for its success, but a Group that is still too slow to take on board all the upheavals that are taking place in the world around us.

What are the projects you are most proud of in 2016?

BK: Air 16, which many saw as a simple transi-tion to Gmail, but which is in fact the first step towards the cloud. And Helios, the tablet for our Site Managers.

PV: I will also pick out two. First, the major DISI project in Amman, Jordan, because it demon-strated our capacity to succeed under difficult conditions, in a new country, with new partners, and in an environment where we were not ex-pected. Next, our ICTR Telecom project with Orange, because we successfully adapted to the stringent requirements in terms of good or-ganisation and constant adaptability with this contract, thanks to the great work put in by the hundreds of employees involved in it.

YF: Three original worksites stood out in 2016 in France: the production of the double siphon in the Trichon sewerage outfall under the Roubaix canal at Tourcoing; the work to reroute networks 20

for the construction of the Diesel Backup Plant building at the Paluel nuclear power plant, which is an excellent example of work in synergy between the Regional Divisions and subsidiaries in France; the first time we installed underground high-voltage cables for RTE, new expertise for our teams and new potential to exploit.

What improvements have already been implemented?

PV: Strengthening our preliminary analy-ses to improve our risk assessments and do them faster, so as not to slow down our decision-making processes but instead en-hance them and secure them. Improving our perception of discrepancies by reading the low-level signals and improving our ability to react quickly and in a more structured way. Continuing to expand our decision-makers’ expertise and giving them the tools they need, both individually and collectively, so that together we can steer our business in the right direction.

BK: Better purchasing. Better and faster in-formation processing. And better sharing of this information.

YF: Strengthening our capacity to work in project mode and breaking down the silos in our organisations which are still sometimes too local. Cooperation between operational staff, line employees and legal and financial support functions is a necessary pre-condi-tion for successful completion of the most complex operations.

What are your key words for 2017?

BK: Control over all aspects of con-tracts: technical, implementation, fi-nancial, contractual. Development in France and abroad. Digitisation.

PV: Forecasting. Flexibility. Effi-ciency.

YF: Concentrating on worksite performance. Accelerating busi-

ness development, especially in the nuclear field. Focus on prevention with the watch-word "vigilance shared - safety preserved".

What are your main challenges for 2017?

BK: In my field, I see three: make a success of the project to professionalise purchasing, continue to phase in the worksite tablets and invent a tablet for the Foreman, remain resolutely committed to the new world of the cloud and digital information.

PV: Continue to develop in a controlled manner, corresponding both to our ambition to constantly move forward and our obliga-tion to improve profitability.

YF: Significantly reduce the number of worksites that are still in deficit. Seize de-velopment opportunities in the nuclear field and infrastructure creation in Greater Paris.

What are your ambitions for the Group by 2020?

PV: To see the SADE Group referred to as a benchmark in terms of operational ef-ficiency, good decision-making and the capacity to take on challenges, without abandoning its values, but rather en-riching them. To see the Group held up as an example of constant participatory improvement, where each individual, at

their own level, enables the whole to progress.

BK: More profitable develop-ment, by relying on our know-how in our traditional markets while continuing to get involved in new business activities, es-pecially those with barriers to entry. Full integration into the digital world so that substantial improvements can be made in terms of administrative produc-tivity, follow-up of contracts, controlling information for the SADE Group and its customers.

YF: For us to become strong-er and maintain our position among benchmark companies

in terms of creating water, energy and telecommunications networks. To expand our 5 business lines, with new customers, especially in the private and industrial sectors, and offers generating more value added.

In your opinion, what is the DNA of our Group?

BK: D for determination in our actions: act quickly, firmly and well. N for numer-ous: there are 9,000 of us acting with determination, so we can carry out many actions, we share them, and we motivate one another. A for Action as opposed to reaction, not to be passive, whatever the area of activity, but to be pro-active. With all of us acting with determination, we can achieve more results and become more confident, and ultimately enjoy our work even more.

PV: Pride in excelling in our current busi-ness lines and the confident ambition to be even better in future.

YF: The success of the SADE Group will rest on 3 cornerstones: professionalism based around a pragmatic and robust or-ganisation, responsiveness to the expecta-tions of our customers, and the values of respect and solidarity for our customers and all SADE team members.

SADE GROUP COMMITTED TO FACILITATING ACCESS TO

HIGH-SPEED BROADBAND:FIBRE TO THE HOME

FTTH

100,000 2017clients to connect in

21

SADE is also...

2016

BENIN

NANTES - LUÇON - VANNES

C A N A L I S AT I O N ST R AVA U X P U B L I C S

COCAATLANTIQUE

cthm

22

30mins

SADE GROUP INVOLVED IN CHARGING ELECTRIC VEHICLES

Charging times from

Charging stations

THE FIRE HYDANT MONITORING AND MANAGEMENT SOLUTION: A WATER DRAWING

DETECTOR CONNECTED TO AN INFORMATION SYSTEM

Fire hydrants

300

=200,000 m3wastedhydrants

sater

23

www.sade-cgth.fr

23-25, avenue du Docteur Lannelongue - 75014 ParisTel.: +33 (0)1 53 75 99 11 - Fax: +33 (0)1 53 75 99 02

RCS Paris: 562 077 503 - Public limited company with a capital of € 24,074,910

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