➔
T h e G r e a t N e t w o r k s o f L i f e
A N N U A L R E P O R T
1 9 9 7
➔
➔ ➔
Board of DirectorsGérard MOHR
Chairman & Chief Executive Officer
Christian PÉGUETDirector & Managing Director
Directors
Michel DAVELUYHenri DELHAYE
Bernard HUVELINPhilippe LEMAISTRE
Roger MARTINGuy RICHARD
Société Générale d’Entreprises (SGE),represented by Antoine ZACHARIAS
AUDITORS
Statutory AuditorsDeloitte Touche Tohmatsu - BMA
Salustro ReydelAlternates
Michel BousquetFrançois Pavard
Summary of contents
Questions and answers for 1997 2
Key figures for 1997 4
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
1
➔➔ ➔ ➔ ➔
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.
QUESTIONS AND
ANSWERS FOR 1997
What were the most significant events of 1997for the GTIE Group?
Gérard Mohr: 1997, was first and foremost theyear in which a closer relationship was forgedwithin the SGE Group, on the initiative of thecommon shareholders of GTIE, Santerne andSDEL.
The new GTIE Group - backed by over FRF 11 billion in turnover, its 18,000 employeesand key market positions in Europe, especially inGermany, Great Britain and the Netherlands - isrecognised as France’s leading operator in theengineering, procurement, construction inelectrical power and communications sectors.
What is the new Group’s operationalstructure?
Gérard Mohr: This new grouping’s operationalstructure is designed, above all, to meet ourclient and market needs. It hinges on 450autonomous business units, located close to theirclients, who have their own identity and clearbusiness plan. These companies have beengrouped into four geographical managementsectors: SDEL in the greater Paris area and theinternational market, Fournié-Grospaud coveringmost of southern France, Garczynski Traploir inwestern France and in the Overseas Territoriesand Departments and Santerne coveringnorthern and eastern France.
Our strong efforts over the past year have
Pictured, left to right
Patrick LEBRUNCompany Secretary, GTIE Group
Jean-Yves LE BROUSTERChairman & CEO, FOURNIÉ-GROSPAUD
François-Xavier HANICOTTEManaging Director, GARCZYNSKI TRAPLOIR
Philippe LEMAISTREManaging Director, SDEL
Christian PÉGUETDirector & Managing Director, GTIE Group
Gérard MOHRChairman & CEO, GTIE Group
Michel DAVELUYFinancial & Administration Director, GTIE Group
Charles LICENDeputy Managing Director, SANTERNE
2
confirmed the strength of this operationalstructure, and enabled us to carry out therequired structural modifications and set up acommon management information system. Ouremployees have readily understood andaccepted these reorganisational moves, which are now completed and operational.
With this new structure, what were the GTIEGroup’s results in 1997?
Gérard Mohr: In 1997, the first financial yearunder its new organisation, the GTIE Grouprecorded consolidated turnover of FRF 11.2billion, which on a comparable Group structure,is in line with 1996. The Group also showed atotal profit before tax and employee profitsharing 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 theorganisational upheavals relating to the launch ofthe new GTIE Group and the overall difficulteconomic situation (regardless of a slightupswing in the third quarter).
The economic situation’s main impact on GTIEGroup activities in France were: weak orstagnant demand in French electricityconsumption within the framework ofderegulation; strict control of expenditure andcareful choice of investments in the publicsector, intensive competitive efforts by rivalcompanies in the private sector, whose horizonsare becoming more and more global with theconsequent repercussions on their suppliers.
Abroad, market conditions remained buoyant inGreat Britain and the Netherlands, in contrast tothe German market which suffered a steepdownturn. Over and above these very generaltendencies, even the most cursory market analysisby segment reveals the contrasts between thevarious sectors in which the Group is active.
What exactly are the Group’s main areas ofactivity?
Gérard Mohr: The Group’s activities fall intothree main areas: infrastructure (37% of totalactivity in 1997): facilities for the building andservices sectors (24%); and industrial processfacilities (39%). In these three areas, described indetail in the following pages, the Group’scompanies provide services connected with
either electrical power (63% of the total) orwith information processing and communication,a field which is developing continuously andwhich 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 inabout twenty countries and, in a few years, hasbuilt up permanent operations in eleven:Germany, Great Britain, the Netherlands,Belgium, Denmark, Switzerland, Poland, theCzech Republic, Senegal, Malaysia and Singapore.
The contribution from international projects toconsolidated turnover rose to 12.5% in 1997.International expansion of our businessnetworks, especially in Europe, constitutes a keyelement for increasing Group earnings.
What are the GTIE Group’s prospects for1998 and the years ahead?
Gérard Mohr: 1997 opened a new chapter inthe history of the GTIE Group, which rankstoday among Europe’s leaders in engineeringprocurement and construction in electricaltechnology. It was a major task to consolidatethe new structure, the product of a unionbetween companies with very different culturesand identities, and to set it in an organisationalframework that was unambiguous, transparentand customer-oriented. Now, we are ready tomove ahead.
These are the cornerstones on which we areconstructing our future - a market segmentationstrategy by business units based on marketposition, an emphasis on networking and amanagement philosophy that gives priority toour customers, our employees and ourshareholders.
The new GTIE Group should perform well in1998, given these conditions. It can, thus,continue to launch business networks in Europeand worldwide, supported by a solid Frenchbase.
3
5
➔
Garczynski TraploirZIN- rue Thomas-Edison 37 X72040 Le Mans CedexTel-: (33-2) 43 77 77 77Fax-:(33-2) 43 28 50 19
SDELImmeuble Gallieni2, rue Benoît-MalonBP 14492154 Suresnes CedexTel-: (33-1) 41 38 50 00Fax-:(33-1) 41 38 50 50
Fournié-Grospaud19, impasse FourcaranBP 216031021 Toulouse Cedex 2Tel-: (33-5) 61 58 79 00Fax-:(33-5) 61 58 04 64
Santerne23-25, rue du Dépot62063 Arras Cedex 992154 Suresnes CedexTel-: (33-3) 21 60 93 00Fax-:(33-3) 21 48 32 95
➔
➔
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.
The GTIE Group’s operational structure
➔
4
➔ ➔
in FRF million in euros million
Net turnover 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 1997
Workforce
18,400
24 % service and building sectors
37 % infrastructure
37 %information processing and communications
63 % electrical power
39 % industry
Key (consolidated) figures for 1997
6
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.
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
and for information management. Group
companies can manage the entire project, from
A to Z, including special needs, such as seasonal
festive lighting all with a commitment to
mutually agreed results within a specified
budget.
➔
➔
➔
A complet
From consultancy to turn-key projects
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
pooling their expertise, resources
and experience, Group businesses
are able to manage the most
complex and exacting projects,
while assuring the fulfilment of the
most extensive and exhaustive
requirements.
7
relay stations for mobile telephones. They cancarry out all installation phases for companycommunication networks, right up to takingcomplete charge of engineering and operations- in other words, overall I.T. systemsmanagement.
The Group has successfully demonstratedits ability as a designer and integrator ofsystems for Industrial Process Control andAutomation; DCS and PLC systems.
Today the Group is expanding its range ofglobal solutions to meet the expectations of theindustrial maintenance sector. After havinginstalled and precommissioned all the controlsystems for the Elf Leuna 2000 refinery inGermany, the Group’s companies have joinedforces to guarantee the maintenance of theinstrument, electrical and mechanical facilities forthe next five years.
The Group’s companies have an active role inevery link in the telecommunicationschain, from providing the infrastructureneeded by operators to implementing companyor community voice-data-image networks. Theycarry out surveys for proposed sites and install
➔
te service provider
Maintenance plan for 35Chronopost sorting centres
Infras
Guaranteeing the highest
quality service and user
safety, while protecting the
environment, are primary goals
of infrastructure operators and
local government leaders.
for the environmentQuality of service, safety and respect
tr uctur e
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.
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 self-
service vehicles in Saint-Quentin-en-Yvelines.
10
Laying a HV underground power line at Aix-en-Provence
Installing a radio communications relay for the SFR network
➔
11
➔ ➔
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.
Users want easy access to town centres and
car-parking systems designed to assure quick entry
and exit and real-time information.
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.
Communicationinfrastructures
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.
Roissy: Air terminal 2F
Positioning a mobile telephone antenna
10
AXA - Place Vendôme - Paris.
La Défense, Société Générale Towers
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.
Tribunal de Grande Instance,Bordeaux
quality of life throughimproved communications
Buildingservices
14
➔ ➔ ➜
➔
The buildingservices 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 voice-
data-image communications are
increasing dramatically.
Whether it’s a matter of new buildingsor 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., design-
implementation-operations.
➔
15
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 well-
being of occupants.
The Group’s companies, highlighting the
network’s strengths, have devised a complete
spectrum of customised, local services to meet
this demand.
L’Oréal - Aulnay-la-Barbière
Cegetel Capitol
Rewinding of motors in Birmingham
Cabling of aircraft systems
Lubrizol - Le Havre
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.
Quality, scheduleand cost control
Pharmaceutical laboratory
Industry
Industry
➔
Industrial companies must have,
above all else, reliable, responsive
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
processes.
Close to industrialcompanies and theirproduction 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.
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
Colombes effluent treatment plant
18
19
➔ ➔
A global serviceoffering
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 easy-
to-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.
Zafiro Mobil:Floating, Production, Storage and Offloading (FPSO) platform. Equatorial Guinea
Overseas
From its solid French base,
the GTIE Group is present in
some 20 countries including 11
on a permanent basis.
In Europe and throughout the world
development
22
➔ ➔ ➜
➔
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, supported by its networks of
450 companies, is geared to intervene quickly,
in continental France, the French Overseas
Territories and Departments, 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 support 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
In Europe and acrossthe world
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.
➔
➔
23
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 Departments and
Territories. More than 500 experts work for the
Group in the Guadeloupe and Martinique
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.
The Vasco da Gama bridge on the Tagus. Lisbon, Portugal
The Maxwel workshops in Radon, Poland
Management Report and Summarised Financial Accounts
for Fiscal Year 1997
Statutory auditors’ report on theconsolidated financial statements
(for year ended 31 December, 1997)
An audit also includes assessing the accounting principlesused and significant estimates made by management,as well as evaluating the overall financial statementpresentation. We believe that our audits provide areasonable 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 financialresults of the entire group of companies included in the statements. Without qualifying our opinion, we drawyour 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 thereport concerning management of the Group. We aresatisfied that the information is fairly stated and agreeswith the consolidated financial statements.
In accordance with the assignment given us by theAnnual General Meeting, we have audited theaccompanying consolidated financial statements of theGTIE Group for the financial year ended 31 December1997 such as they are presented in the present annualreport.
The financial statements are the responsibility of theBoard of Directors. Our responsibility is to express anopinion of these financial statements, based on ouraudit.
We conducted our audit in accordance with generallyaccepted French auditing standards. These standardsrequire that we plan and perform the audit to obtainreasonable assurance as to whether the financialstatements are free of material misstatement. An auditincludes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements.
Paris and Neuilly, 7 April, 1998
The Statutory Auditors
Salustro Reydel Deloitte Touche Tohmatsu - BMA
Bernard Cattenoz Bertrand Vialatte Michel Bousquet
24
The market
Despite a slight improvement in the third quarter, a difficulteconomic climate worldwide continued to affect the GTIEGroup’s various markets throughout 1997. Recognisabletrends include weak electricity consumption in France,imminent deregulation, stringent control of expenses and a selective approach to capital spending for public sectorworks, stiff competition from rival companies, often on aninternational scale with attendant repercussions on suppliers.
Beyond these general tendencies, only a market sector analysis will reveal the contrasts between the various sectorsin which the Group is active. The number of programmeswas reduced for the transmission of electrical power, for reasons just given, particularly in the case of high-voltagelines. In response to increased competition, the Group’s business units are focusing on productivity and innovation inconnection with underground high-voltage links or electricitysubstations that blend into the environment.
There is a significant need to address environmental and lifestyle concerns in rural electrification and public lighting, yetprogrammes are subject to substantial budgetary constraints,including financial and tax budgets.Amidst heightened competition, the Group’s business units remain focused onresearch in the core areas of quality, modernisation and innovation.
On a more encouraging note, promising new developmentsare emerging in the field of infrastructure linked to electricpower and information. Several of the Group’s business unitsare involved in the PRAXITEL project - an experiment withself-service electrically powered vehicles at Saint Quentin-en-Yvelines. Backed by references from Sirius, Coraly, Migrazurand, more recently Siter, the Group is ideally positioned to provide management systems for controlling traffic andsignals in urban areas. Finally, the Group is extensively involved in developing telecommunications infrastructure, asector in full expansion, which is nevertheless, subject to stiffcompetition.
The industrial services sector differed markedly last year,according to region and sector. Capital investment in Franceis still in deep decline compared with levels at the beginningof the decade, reacting to the slightest market fluctuation.However, efforts undertaken by the Group’s business unitsto specialise by process and thereby submit differentiatingproposals are proving successful. In particular, services linkedto information processing and communication networks inindustrial envrionement are expanding.The network’s linkages have often made a critical difference by enabling usto offer the type of global solution that meets market expectations.
In the building services sector, our companies are still facing a difficult environment despite being involved in programssuch as education and health, where the upgrading of existingbuildings has become necessary due to increasingly stringent
safety regulations.This is especially true in regions, such asNord-Pas-de-Calais, where a project has been completedwith investments linked to the cross-Channel tunnel.
The Group’s business units are also intensifying their effortsto raise service levels and move towards increasinglyinnovative offers in intelligent building systems, networkintegration or maintenance.
Internationally, the market remained favourable in GreatBritain and the Netherlands.Whereas, a significant downturnin the German market has hampered CONTROLMATIC’ssales throughout the year, affecting profits and cancelling outthe recovery the company had made in 1996.
Results.
The GTIE Group reported consolidated turnover of FRF11.2 billion for 1997, in its first year of its new organisation,effective on January 1, 1997, which merged the GTIEGroup (retained its previous structure), SDEL and SANTERNE.
In achieving this result, which is in line with the figure for1996, the Group’s 450 business units successfully withstood a difficult economic climate worldwide andorganisational change.
Profit before tax and employee profit sharing, and afteramortisation of FRF 24 million in goodwill, amounted toFRF 358 million, representing 3.2% of turnover, in line withthe previous year’s figure (FRF 341 million).
Net profit before earnings of consolidated companies andafter minority interests reached FRF 160 million (or 1.43%of turnover) and net profit of FRF 159 million wasrecorded.
The Group’s net cash position improved throughout theyear, standing at FRF 1,981 million at 31 December 1997.
Cash flow generated over the year amounted to FRF 540million, enabling the Group to easily cover capital investments and financial flows.
Group Management Report
25
The Outlook for the GTIE Group in 1998
A pivotal year in the GTIE Group’s history, 1997 witnessedthe birth of a new group, the growing strength of itsoperational mechanisms, the centralisation of itsinformation systems, the implementation of requisite legalrestructures and the process of learning to live together.
Our projects and budgets for 1998 attest to genuineconfidence and a strong willingness to go forward, despitethe current lacklustre economic environment.
These positive goals will motivate the GTIE Group’s teamsto approach their markets and their customers with evengreater determination in 1998.
(in thousands of French francs) 1997 1996
Net turnover 11 169 074 6 291 256
Other operating revenues 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 64 559 37 804
Interest charges (21 835) (22 953)
Financial provisions 34 110 22 868
Net interest expense 76 834 (8 017)
Operating profit after interest 506 070 231 448
*Non-operating profitgains on disposals of assets 18 059 5 726
*Non-operating expenseand other non-operating profit (43 438) 11 213
Provisions for exceptional items (97 787) 5 229
Net non-operating profit/(expense) (123 166) 22 168
Profit before tax,employee profit sharing and goodwill 382 904 253 616
Amortisation for goodwill (24 391) (19 151)
Employee profit sharing (26 876) (20 166)
Corporate tax (171 771) (96 405)
Net profit of fullyconsolidated companies 159 866 117 894
Equity in net earningsof associated companies 80 188
Net profit before earningsof associated companies 159 946 118 082
Minority interests (1 313) (17 253)
Net profit 158 634 100 830
Our forecasts for the coming year, which have beencarefully calculated, take into account our intention torefocus some projects and also to recognise the economicdifficulties affecting some of our business sectors, especiallythose which are energy-related.
Orders taken and invoicing in the early weeks of 1998confirm these forecasts.
Consolidated profit and loss statement
26
Consolidated balance sheet
(in thousands of French francs) 1997 1996
Fair value adjustments 57 631 38 932
*Other intangible assets 13 480 6 844
Deferred charges 51
71 111 45 827
Goodwill 297 039 228 820
Owned property, plant and equipment 2 281 502 1 620 272
Construction in progress 8 482 7 323
Depreciation (1 533 346) (1 098 793)
756 638 528 802
Non-consolidated investments 91 448 10 347
Investments accountedfor by the equity method 1 733 48 290
Other long-term investments 41 575 16 549
134 756 75 186
Total fixed assets 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
(in thousands of French francs) 1997 1996
Capital 621 944 296 909
Share premium account 413 772 78 240
– Retained earnings (25 092) 177 303
– Foreign currency translation reserve 5 764 1 318
– Net profit 158 634 100 830
Shareholders’ equity 1 175 022 654 600
Minority interests
– in reserves 13 468 78 292
– in net profit 1 313 17 253
Minority interests 14 781 95 545
Shareholders’ equityincluding 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
Total long-term capital 2 075 923 1 113 347
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 andShareholders’ equity 15 470 140 9 523 338
Assets
Liabilities and Shareholders’ equity
27
(in thousands of French francs) 1997 1996
SOURCES OF FUNDS
Funds from operations
Net profit before earningsof associated companies 159 866 117 894
Dividend received fromassociated companies – 24 638
Depreciation and provisions 398 347 184 371
Cash flow from operations 558 213 326 903
Gains from disposals of assets (18 059) (5 722)
Cash flow 540 154 321 181
Non-operating activities
Issue of parent company stock 833 015 280 586
Issue of subsidiaries’ stock 59 478 282
Increase in long-term borrowings 70 182 43 266
Proceeds from disposalsof tangible/intangible assets 60 989 14 247
Proceeds from disposals of investments 7 684 8 732
Interest collectedon 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
USES OF FUNDS
Capital expenditure
Acquisition of investments 270 779 190 798
Acquisition of other financial fixed assets 947 668 29 383
144 151
Total funds used in investing activities 1 218 591 220 332
Other uses of funds
Increase in long-term loans and deposits 6 815 4 106
Repayment of long and medium-term debt 90 480 43 096
Dividends paid 68 577 359 303
Total other uses of funds 165 872 406 505
Total uses of funds 1 384 463 626 837
Net sources/(uses) of funds 194 395 45 670
Working capital:
– Effect of changes in Group structure 385 062 6 081
– Effect of exchange rate fluctuations (1 454) (1 476)
– Effect of balance sheet reclassifications:short-term/long-term 3 664 2 229
Change in working capital 581 667 52 504
USE OF THE CHANGE IN WORKING CAPITAL
Change in working capital requirement
Changes in stock and work in progress 2 602 324 51 169
Changes in receivables 1 782 818 (48 946)
Charge in accounts payable (4 985 798) (187 130)
Net change in workingcapital requirement (600 656) (184 907)
Change in short-term debt
Change in short-term borrowing 1 571 52 864
Change in other short-term receivables 1 207 835 67 800
Net change in short-term debt 1 209 406 120 664
Change in cash and cash equivalents (27 083) 116 747
Consolidated statement of changes in financial position
28
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, GTIEA. 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