Freyssinet - 2003 annual reportin Tamil Nadu state in India: Freyssinet was chosen to perform prestressing involving the installation of 2,700 tons of greased sheathed strands placed

2003_ANNUAL REPORT

Table of Contents

/// Profile01. /// Message

from the President02. /// Innovations04. /// Structures09. /// Soils14. /// Financial

Information16. /// The Freyssinet

Group Worldwide

Profile

Key FiguresStructures13%

Europe21.5%

Iberian-American17.5%

Anglo-saxon4%

Asia-Pacific18%

Soils26% of which

North America12.6%

Structures,63% of which

New projects37.5%

Repair/Maintenance25,5 %

Soils37% of which

Reinforced Earth25.3%

Ménard Soltraitement

11.7%

> WORKFORCE BY DIVISION

As a subsidiary of Vinci, the world’s leader in concessions, construc-

tion and associated services, the Freyssinet group, world’s leader in specialized

civil engineering, provides services in the fields of structures, soils, new projects,

repair and maintenance. Consolidated turnover for Freyssinet in 2003 was

420 million euros and net profit was 0.6 million euros.

Freyssinet employs 2991 people and is active on five continents on

sixty sites. Because the Freyssinet group is divided into geographical zones

around the world, each project benefits from both the Group’s worldwide

expertise and strong local ties.

In all its activities, the Group offers unequalled know-how resulting

from active research and development.

> BREAKDOWN OFTURNOVER BY ACTIVITY*

*Organization prior to March 22nd, 2004.

664

339

99

Europe

Iberian-American

Anglo-saxon

289

386

1,214

Structures

Soils

Asia-Pacific

> WORKFORCE BY POSITION 14.6%

35.4%

50%

Engineers and executives

Technicians

Workers and employees

> BREAKDOWN OFTURNOVER BY DIVISION*

≥

_ANNUAL REPORT _200301

Again showing profits in 2003, Freyssinetupheld its pledge, making great progresstowards recovery.

Consolidated net profits after taxes were 0.6M€ from a consolidated turnover of 420M€, representing 5% growth atconstant exchange rates. Our operatingcash position increased by 23M€.

This progress is the result of everyone’shard work over the previous year to follow a clear strategy focused onprofitability and gains. This strategy led to the closure of centres showingrepeated losses and to the selectivechoice of new projects.

We’ll continue along the same lines in 2004 to achieve the goal we set forourselves one year ago: net profits after taxes of 2% of turnover (operatingresults of 4% of the turnover).

To succeed, we need to continue toimprove. Our growth margins are still very large and we’re facing manychallenges.

In 2004, we’ll concentrate on:

– increasing our technical, managerial and sales expertise, particularly throughrecruitment and training;

– preventing risks by stressing the factthat the highest priority is safety on thesites;

– product and work quality by providingimproved service to our clients;

– reducing production costs and improvingproductivity;

– supporting research and developmentconcentrating on the adaptation andimprovement of existing technologiesand the development of new productsand processes in both the structures and soils fields.

There’s still lots to do. But, Freyssinet has many strong points.

Our order book reached 308 M€ at the beginning of the year (+18M€ atconstant exchange rates): this ispromising. The economies in thecountries in which we’re active are on the right track for the most part.

We’re involved in large constructionprojects such as bridges or viaducts inMillau in France, Rion Antirion in Greece,Panama, Orinoco in Venezuela and Cooper River in the USA.

In the soils field, we’re working on majorprojects such as vacuum consolidation of the Kwang Yang port terminal in South Korea (Ménard Soltraitement) and a few other significant Reinforced Earthprojects in the USA.

And other large projects are underevaluation.

We’ll have to remain vigilant, but we knowwe’ll succeed. I have no doubts about it.

BRUNO DUPETYChairman - CEO

Message from the President

_CHAIRMAN - CEOBruno Dupety

_DEPUTY GENERAL MANAGERJérôme Stubler

_FINANCE AND ADMINISTRATION MANAGERYann Grolimund

_HUMAN RESOURCES ANDCOMMUNICATIONS MANAGERClaude Lascols

_OPERATIONAL MANAGERS

France DivisionPhilippe Zanker

Iberian-American DivisionJorge Moreno

Soils DivisionPhilippe Héry

Structures DivisionJérôme Stubler

United Kingdom/Northern Europe DivisionPatrick Nagle

North America DivisionRoger Bloomfield

Asia-Pacific DivisionBruno Dupety

New organizationas of March 22nd, 2004.

C o n s t r u c t i o n , I m p r o v e m e n t , D u r a b i l i t y. . .

≥

_FREYSSINET GROUP 02

Innovations■ ■ ■ GENEROUS AND ORIENTED TOWARDS THE CLIENT, THE GROUP’S

INNOVATION PROGRAM IDENTIFIES MODERN SOLUTIONS IN THE FIELDS OF SOILS

AND STRUCTURES. THE GROUP’S PASSION FOR INVENTION AND PERFECTION IS

A VALUABLE HERITAGE FROM ITS FOUNDERS AND INVENTORS, EUGÈNE FREYSSINET,

LOUIS MÉNARD AND HENRI VIDAL.

STRUCTURES

Innovations are constantly made on oursites, but, in particular, the year 2003 was marked by four prizes awarded toFreyssinet products and processes.

At the beginning of the year, Freyssinet and the Jean Muller International Companyreceived the bronze medal at the Egis GroupInnovation Competition for the multitubestay cable saddle. This new device that uses the patentedCohestrand strand, another innovation byFreyssinet from the late 1990s, was firstused in 2003 for the Sungai Muar bridge in Malaysia. It guarantees the continuity ofthe stay cables across the bridge pylons,simplifies overall bridge design and improvesgeneral aesthetics. As part of the VINCIInnovation Competition, Freyssinet won an award for the Viajoint HP and for the”tendon tools” pedestrian bridgeconstruction method. Viajoint HP wasdeveloped by Freyssinet and Interdesco, a company specializing in the manufactureof floor coatings, and is a new expansionjoint designed to stand up to intense trafficand harsh climates. This material passedlaboratory tests and is currently undergoinglarge-scale testing in the Cofiroute highwaysystem. The second award given to VINCIwas for a low-cost method for theconstruction of pedestrian bridges. It is based on the use of two temporary tendon

tools on which two light lifting cranessupporting the deck move. Moreover, in July,Daniel Tardy, president of the ProfessionalCivil Engineering Contractors Association for France and overseas territories, awardedthe ”high performance tensile system”developed by Freyssinet (cable anchors) and Soficar and Bostik Findley (carbon fibrecables) first prize in the FNTP (Fédérationnationale des travaux publics – FrenchNational Civil Engineering Federation) inno-vation competition. This system, designed for cable structures, bridges or offshoreplatforms, unites carbon fiber cables and an innovative patented anchoring device.

SOILSSoil mechanics is still a new scientificdiscipline. Consequently, research anddevelopment in the soils field are extremelyactive. The activities of both ReinforcedEarth and Ménard Soltraitement concentrateon continuous innovation, as also illustratedby the resources allocated to SoilTech, a transversal unit devoted to geotechnicalresearch and development for the Group. Its annual budget is 0.8M€.

In 2003, Reinforced Earth implemented animproved concrete scale attachment system,HA Ladder reinforcements, for the first timein the USA. The most spectacular innovation

1.5%OF TURNOVER

1_ ”Bottom feed”, a stone column feedsystem designed by Ménard Soltraitement,makes it possible to apply vibroreplacementto port and offshore projects.

1

In 2003, the first shotcrete gun operatorcertificates were awarded by Asquapro(Association pour la qualité de la projectiondes bétons et mortiers – Association for thequality of shotcrete and spreayed mortor)to around ten Freyssinet employees.Clearly, the Group is taking bold steps to optimize quality of service.

To improve safety, the risk preventionpolicy implemented in 2003 will continueand gain importance in 2004.

Concretely, this led to the contractual safety pledge aimed at a zero accident rate on the Millennium plant rehabilitationsite in Le Havre (France) where Freyssinet was the general contractor. Concerning the environment, Reinforced Earth isrecognized by project managers as anattractive and effective solution. ReinforcedEarth projects take a variety of shapes and forms and thus blend well in urban orrural environments. Using natural and cleanbackfill materials that can be quickly put in place, Reinforced Earth is an attractivetechnique for sustainability.

from Ménard Soltraitement was thedevelopment of a system allowing theapplication of vibroreplacement, a soilstabilization technique, to port and offshoreprojects. The ”bottom feed” system, a remarkable gravel-feeding device that is suspended from the boom of a floatingcable crane, now makes it possible to use stone columns on the seafloor using a vibrating head (see p. 12).

QUALITY, SAFETY AND THE ENVIRONMENT

At every project stage and at all company levels, the pursuit of optimalperformance is driven by the desire toimprove quality and safety and betterrespect environmental requirements. The Group’s production plant specialized inthe manufacturing, sales and trade ofstructural fittings and components for staycable anchoring and for prestressing wasgranted PPC certification, thus illustratingthe focus placed on product quality. Thecompany has been ISO9002 certified since 1994. In July 2003, it was grantedISO9001/V2000 certification for all of itsactivities. This will make it possible to continue improvement of internalprocedures at all levels.

1_ The ”tendon tools” techniquedeveloped by Freyssinet is used to build or repair at low cost suspension bridgessuch as the Miret bridge in Floirac (France).

2_ Rehabilitation of the Millennium plant inLe Havre (France), performed under strictsafety conditions, is a good illustration ofthe Group’s risk prevention policy.

1

2

≤

First used in 2002 for the Laroin pedestrian bridge (France), the ”high performance tensile system” was awarded the first innovation prize by the FNTP (French National Civil Engineering Federation) in July 2003.


Structures

63%OF TURNOVER

≥

With its 56 stay cables, the Boyne bridge crossing the Boyneriver is clearly the largest cable-stayed

structure in Ireland.

■ ■ ■ REPRESENTING 63% OF TURNOVER, CONSTRUCTION, REPAIR AND

MAINTENANCE ACTIVITIES REMAINED VERY ACTIVE THIS YEAR. SEVERAL LARGE

CABLE-STAYED PROJECTS WERE LAUNCHED IN THE USA. THE GROUP COMPLETED

SUCCESSFUL PRESTRESSING PROJECTS, ITS ORIGINAL FIELD OF ACTIVITY, IN ASIA

AND THE MIDDLE EAST. IN EUROPE, REPAIR AND MAINTENANCE REPRESENTED

THE VAST MAJORITY OF PROJECTS, FAR AHEAD OF CONSTRUCTION.

recognized for their height and architecture:the Capricorne and Al Jaber Complex towers. Still in the Middle East, FreyssinetFrance participated in two stages of theconstruction of a building in Riyad (Saudi Arabia): precasting, lifting andplacement of twelve 60 m long prestressedbeams on a Tetron bearing and delivery and installation of 250tons of naked strandsand 55tons of greased sheathed strands for the construction of two 600 m2 slabs.

In Cape Town, the Group’s South Africansubsidiary, Freyssinet Posten, participated in the reconstruction of the Nedcor Foreshorebank headquarters by providing andinstalling the 3,120 prestressing anchors and the 30 tons of strands for the floor slabs.

In France, Freyssinet France performed the prestressing (8 tons) of sinusoidalbeams and load transfer beams making up the frame for the roof of the newNeuilly-sur-Seine aquatic complex.

/// IndustriesThis past year was notably the witness of the beginning of construction of the Kudankulam nuclear power plant in Tamil Nadu state in India: Freyssinet was chosen to perform prestressinginvolving the installation of 2,700 tons of greased sheathed strands placed in cement grouted ducts. In the UnitedKingdom, for a program to modernize the Plymouth shipyards (Devonport RoyalDockyard), Freyssinet’s subcontract forinstallation of prestressing bars in the berth of the underwater dry dock complex was also extended.


PRESTRESSING

/// BridgesThe Group’s original field of activity,prestressing is a technique used throughoutthe world. In 2003, Freyssinet performed the prestressing on a 224 m long bridge in Bangkok (Thailand), participated in theconstruction of two 208 m long twin bridgesin Dubai (United Arab Emirates) andcompleted longitudinal and transversalprestressing of a 400 m long bridge crossinga marsh north of Durban (South Africa).

In Europe, the Group provided and installedall the prestressing on the Corgo viaduct, a 600 m long complex bridge structureconstructed under concession in the north of Portugal (see image on this page). In the south of Portugal, Freyssinet-TerraArmada used more than 2,050 tonsprestressing for the construction of severalbridges for the A2 highway between Lisbon and Algarve.

/// BuildingsIn Australia, the largest project of the year was the construction of the TownsvilleSugar Terminal in the state of Queensland.Completed in collaboration with MénardSoltraitement for the soil consolidation (see p.13), this site required the Australiansubsidiary, Austress Freyssinet, to placemore than 500tons of steel for prestressingof the concrete components of the structure(containment walls and 40,000 m2 ofconcrete slabs).

In the heart of Abu Dhabi (United ArabEmirates), the Group provided and installedthe prestressing for the floors of the twohighest towers in the emirate. In anotheremirate, Dubai, Freyssinet Gulf prestressedthe floors for two of the most spectacularbuildings in the United Arab Emirates

1_ Corgo viaduct (Portugal).2_ The sinusoidal beams used in the Neuilly-sur-Seine aquatic complex(France) were prestressed by Freyssinet.

3_ Austress Freyssinet, the Australiansubsidiary, prestressed the floor of the newSugar Terminal in Townsville.

1

2

3

≥ EXTRAORDINARY EFFORTS FOR A COMPLEX PROJECTFreyssinet designed and supplied the 1,080 tons of prestressing for the Corgo viaduct (Portugal): the sketches and studies from the Iberian-AmericanDivision technical department were validated by the Group’s technical department in Vélizy (France).On site, the Freyssinet-Terra Armada (Portugal) teamin charge of operations received support fromFreyssinet France specialists, particularly for generalsite organization.


1,400SEGMENTS WILL BE PLACED FOR THE SUNGAI PRAI BRIDGE

CABLE STRUCTURES

/// Stay cablesOver the past year, several large stay cableprojects were launched throughout theworld. In Asia, in the south of the Malaysianpeninsula, the Group installed the 28staycables for the Sungai Muar bridge, the firststructure in the world using multitube staycable saddles developed in collaborationwith Jean Muller International (see p. 7).

In Missouri (USA), Freyssinet participated in the construction of a cable-stayed bridgeover the Mississippi near the town of CapeGirardeau. This classically-designed bridge is 636 m long with a 350 m central spanand is supported by 128 stay cables.

Several structures were built in Europe. In Ireland, Freyssinet Ltd took part in theconstruction of the Boyne bridge, the largestbridge and the first cable-stayed bridge in the country. In northwest Poland, the subsidiary Freyssinet Polska installed the 104 stay cables supporting the deck of the 180 m long Wolin arch bridge. In the Corinth gulf in Greece, the companyparticipated in construction of the Rion-Antirion bridge. For this 2,252 m structurebuilt in a highly earthquake-prone region,Freyssinet used the state-of-the-art in staycable anchors and PSD earthquakeprotection systems to limit excessivebending of the strands during seisms. InFrance, the stay cable work on the Millauviaduct began in the beginning of the summer 2003.Freyssinet installed ”launching” stay cablesto support the cantilevered deck duringlaunching. Lastly, in Portugal, the countryhosting the 2004 European Nations SoccerChampionship, Freyssinet-Terra Armadaprovided and installed the 16 stay cablessupporting the roof of José Alvalade XXIstadium, home of the Lisbon Sporting Club.

/// SuspensionTwo important suspension bridge projectsmarked the year in France: the footbridges in Coupvray (Seine-et-Marne) and Loisy(Meurthe-et-Moselle). Freyssinet was thegeneral contractor for both.

The first, 34 m long and composed entirelyof wood, was built in a little over twomonths without interruption of river traffic.Spanning the Moselle, the second iscomposed of two 24 m high inversed Vpylons. Lateral cables were installed toensure transversal stability of this structurethat has a span reaching 180 m.

CONSTRUCTION METHODS

In Malaysia, the Group began placement of the deck of the Sungai Prai bridge,a 2,700 m structure located in Butterworthin the northwest of the country. Over 1,400segments will be installed, span by span,using an installation truss.

In Australia, industrialized prestressedoverpasses were installed for the new Sorellcauseway on the Tasman Highway. Untilnow, this technique had only been used inFrance. Supported by the Group’s expertise,the Australian subsidiary provided technicalassistance to the consultant firm during boththe design and implementation phases.

In Mexico, Freyssinet de Mexico performedthe launching of the deck for a new 1,028 m long bridge spanning theNetzahualcóyotl dam in the heart ofChiapas. Pushed by four 900 ton poweredhydraulic jacks, the metal deck wasequipped with a temporary cable-stayed mast and a front steel nose to ease docking to the piers.


1_ Composed entirely of wood, thesuspended footbridge constructed by Freyssinetin Coupvray (France) connects the city centerwith the residential zone.

2_ José Alvalade XXI stadium in Lisbonis unique by its 25,670 m2 cover suspended by16 stay cables provided and installed byFreyssinet.

3_ On the Millau viaduct in France,Freyssinet installed stay cables on thecantilevered deck in order to spread out catenary variations during launching.

1

2

3

In Poland, the Freyssinet Polska subsidiarywas in great demand for prestressing work (600 tons of steel) and for thelaunching of the viaduct of the westboulevard in the city of Wroclaw. Composedof two parallel curved decks of 610 and 624 m, each equipped with front steelnoses, the structure was built in successive33.5 m spans without perturbing traffic on the railway and road it crosses.

STRENGTHENINGAND REPAIR

Aside from one concrete decontaminationproject using cathodic protection performedby Freyssinet in association with itssubsidiary CCSL (Corrosion Control Services Ltd)for a container terminal in Hong Kong,repair work was mainly concentrated inEurope. Several projects were performedover the year.

In France, Freyssinet France was chosen to repair the Miret suspension bridge inFloirac (Lot), a 140 m long structureconstructed in 1912. The suspension,hangers and deck were replaced using the ”tendon tools” technique (see p. 2). In Le Tréport (Seine-Maritime), anotherrepair technique mastered by Freyssinet,

shotcreting, was used to strengthen thestructure of the Saint-Gobain-Desjonquèresplant that had been damaged by fire. In the same region, the Group took part in the rehabilitation of the settling basins at the Millennium plant in Le Havre. Their external structure was strengthenedby applying 350 m2 of TFC (carbon fiberfabrics), a process developed by Freyssinetin the 1990s. The same method wasapplied in collaboration with SogeaConstruction to strengthen the slabs of theGambetta parking structure in Montpellier.Fixed using frames, the slabs will bestrengthened with TFC applied to 3,800 m2.

And, across the Channel, a mixed solutionusing prestressing bars and carbon fiberswas used to repair and strengthen the vaultof the lecture hall in Rosemary Murraylibrary in Cambridge.

> Though not the longest or

highest, the Muar bridge in

Malaysia is still one of the

most modern bridges ever

constructed. Its stay cable

system, designed, delivered

and installed by Freyssinet,

uses deviation saddles and

Cohestrand and its cables are

coated with yellow PEHD

specially formulated to be

resistant to photooxidation.

A modern bridge inMalaysia

1_ The Group provided the methods forconstruction of the Sorell causeway bridge(Australia).

2_ Freyssinet teams used 1,200 tons of shotcrete in Seine-Maritime (France) to rehabilitate a plant damaged by fire.

1

2



DEMOLITION, RECONSTRUCTION, STRUCTURAL MODIFICATION

Without a doubt, the largest structuralmodification project completed byFreyssinet in 2003 (in collaboration withDodin) was the widening of 3.2 m of each deck of the Bellevue bridge on theNantes ring road in France. This projectinvolved the installation of 300 ton concreteslabs on the old deck. In addition, theendeavor was quite spectacular because itincluded the installation and moving aswork progressed of a 90 m long temporaryoverpass designed to keep traffic flowingon this important roadway.

STRUCTURAL FITTINGREPLACEMENT

In the USA, Freyssinet LLC, a North Americansubsidiary of the Group, performed several repair projects including the replacement of 24 bearings on a bridge in Rockville,Maryland. For this project, the company usedCipec WR50 expansion joints for the firsttime in the country.

In Portugal, the LAO system (computer-aidedlifting) was used by Freyssinet-Terra Armadaduring complete renovation of the Serpabridge. The 400 m long structure wasstrengthen with additional prestressing and was equipped with new Tetron bearingsand expansion joints.

In Italy, Freyssinet successfully completedrenovation work on the Zeri motorway viaduct between Parma and La Spezia. A new ”top-access” lifting system wasdesigned to replace the Neoprene bearingsand install an earthquake protection system.Using this system, each of the 22 spans was treated separately and the pier heads werestrengthened with additional prestressing. In Great Britain, Freyssinet Ltd and itssubsidiary CCSL (Corrosion Control ServicesLtd) completed the strengthening of theBlake bridge crossing the Parrot river inSomerset County. Here, the bearings andexpansion joints were also replaced. TheBritish subsidiary was also chosen to design,provide and install new bearings on theThelwall viaduct in northwest England.

LIFTING

In October and November, Freyssinetperformed the first lifting operations of the roof of a new casino in the small Italianenclave of Campione in Switzerland.Assembled on the ground, this 1,100 tonmetal structure was lifted twice by 9musing the latest in strand lift jack systemcontrolled by a new guiding system. Afterthe last lifting in 2004, the structure willrise to thirty meters above the ground.

In Panama, the Freyssinet Group is taking part in the construction of thesecond bridge over the canal. At the end of the previous year, Freyssinet completedheavy lifting over heights totalling 80 mof mobile formwork travellers and installedthe formworks on piers.

2

3

1_ Widening of the Bellevue bridge inNantes (France) required installation of a 90 mlong overpass to avoid interruption of traffic.

2_ Freyssinet performed the liftingof mobile formwork travellers for the new cable-stayed bridge under constructionon the Panama canal.

3_ At the end of the year, Freyssinetperformed the first lifting operations of the roof of the new casino in Campione, the small Italian enclave in Switzerland.

22SEPARATELY ON THE ZERI VIADUCT IN ITALYUSING A NEW LIFTING SYSTEM

SPANS TREATED

1

■ ■ ■ CONTINUING THE SAME TREND FROM 2002, SOIL REINFORCEMENT AND

SOIL TREATMENT ACTIVITIES REPRESENTED 37% OF SALES VOLUME IN 2003.

FOR ONE MISSION CHARACTERIZED BY ITS MATURITY AND ANOTHER BY THE NECESSITY

FOR SPECIFIC TECHNICAL SOLUTIONS, TWO PROJECTS - REHABILITATION OF THE

JAMESTOWN BRIDGE USING TECHSPAN ARCHES (USA) AND OFFSHORE

CONSOLIDATION IN DUNKIRK (FRANCE) - ILLUSTRATE WELL THE DEVELOPMENT

POTENTIAL FOR NEW APPLICATIONS OF EXISTING OR INNOVATIVE PROCESSES IN

FRANCE.

Soils

37%OF SALESVOLUME

≤

In the capital of Abu Dhabi, a large 980,000 m2 platform

was treated by Ménard Soltraitementusing dynamic compaction.


1,000,000m2

OF REINFORCED EARTH WALLS ERECTED IN 2003

GROUND REINFORCEMENT

Reinforced Earth retaining walls areconstructed all over the world by Groupsubsidiaries or licenced networks and are becoming more popular with projectmanagers: they are easy to install, boast a variety of surfaces (TerraClass,TerraTrel, TerraPlus, etc.), can be adaptedfor all environments and are an attractive solution for sustainability.

RETAINING WALLS

After completing its first Reinforced Earthproject in Laos for the Sepon gold minelocated in the heart of the jungle, theAustralian Reinforced Earth subsidiary wonthe new contract for a copper mine. Thissubsidiary is also present in Malaysia andparticipated in the construction of a 9mhigh, 3,360 m2 TerraClass wall used as aquay in the Kedah province. FreyssinetKorea also used TerraClass facings in thenorth of South Korea to build 13,600m2 ofretaining walls for the Mungok-Mureungroadway. In Africa, South African ReinforcedEarth subsidiary also used the same facingsfor an open-air diamond mine in Namibia.The South African subsidiary performed thestudies and then provided the syntheticFreyssisol reinforcements and the crusherblockheads for a total of 1,132 m2 ofsurface. In Asia, on the Layari roadway nearKarachi (Pakistan), the United Arab Emiratessubsidiary, Freyssinet Gulf, began work on alarge project it won in 2002 for 291,000m2

of retaining walls also equipped withFreyssisol reinforcements. For its part,Reinforced Earth participated in two projectson the North American continent. The first, in British Columbia, involved the installationof 3,110m2 of TerraClass facings for loadbearing abutments and access ramps

for the new bridge over the Puntledge. The second project, part of rehabilitation of a 12.5 km section of the Chicago Skyway tollway, involves the construction of 11,000 m2 of Reinforced Earth walls by 2005.

In Lower California (Mexico), the TierraArmada subsidiary installed a particularlywell-designed facing system using 10,000 m2

of new square TerraPlus architectural panels for the platform retaining walls at a luxury hotel complex.

In Abu Dhabi, Freyssinet Middle Eastemployed a different facing systemcomposed of empty prefabricated concreteblocks designed to contain flowers andplants (TerraBlock) for 1,700 m2 to create anaesthetically pleasing structure on the lowersection of an access ramp. In Den Bosch(Holland), the combination of two surfacefacings was selected for the construction ofa luxury residential complex over an oldsoccer field. Because the lower section ofthe retaining walls is underground, thesurface solutions chosen combines 500m2

of TerraClass scales for the lower sectionwith mesh TerraTrel walls filled with naturalstones for the upper section.

This year in France, a Reinforced Earthproject for almost 9,000 m2 began on theA75 highway. A contract was signed formaterials and technical assistance for theinstallation of 33,000 m2 of retaining wallson the highway section of the A51 betweenGrenoble and Sisteron. Finally, two largeprojects, one in the south and the other in the north, were completed this past year.For the first, launched in 2002, Terre ArméeSNC provided technical assistance forinstallation of a 4,000 m2 TerraTrel wall

1

2

1_ In Boulogne-sur-Mer, prefabricatedsurface facings covered with architecturaldesigns were used to build Reinforced Earthstructures.

2_ As part of a vast rehabilitationprogram, 38,480 m2 of Reinforced Earthwalls will be installed on the ChicagoSkyway.

3_ In the United Arab Emirates,Reinforced Earth provided 17,000 m2 ofTerraBlock for a roadway intersection.

2

3

at the new Spaak intersection inMontpellier. In the second project inBoulogne-sur-Mer, the company wasappointed by the Departmental EquipmentService of Pas-de-Calais to study andprovide 3,800 m2 of surface for a structureover a railway. The walls are a maximum of 8 m high and present architechturalsurfaces with fish designs in reference tothe activities of the largest French fishingport. In Italy, Freyssinet-Terra Armata Srldesigned a combination of surface systems to build an anti-noise blank wall on the Milan beltway. Completed inOctober, this 5,200 m2 structure has twosides: one using TerraTrel and the other, the anti-noise component, covered with TerraClass facings.

FOUNDATIONS

In Australia, the Freyssimix foundationcolumn construction system using jet-grouting was implemented successfully to provide the foundation for a complex of luxury buildings on Darling Island in the heart of the Sydney port.

The Group’s Australian subsidiary, AustressFreyssinet, that completed this project has great expertise using this technique.The solution saved 18 days on the plannedoperational schedule.

ARCHES

The applications of prefabricated TechSpanarches, designed and traditionally used for underground structures (road orrailway), were extended in 2003 to bridgestrengthening and repair. TechSpan arches(18 m opening, 5.5 m high and 10 m long)and TerraClass facings (for blockheads) were used to rapidly reconstruct at low cost the small Clemmer bridge at theentrance of Perth East in Ontario (Canada).Halfway through the year, the samemethod was employed to replace the old Jamestown bridge in New York state(see photo above).

Upon completion of this project, ReinforcedEarth (USA) won two new contracts for the construction of TechSpan arches inAustin, Texas.

> The collaboration between

Reinforced Earth in the USA and

its Canadian counterpart that has

vast experience in the cons-

truction of wide arches resulted

in installation of the longest

arches ever used in the USA

(19 m) as part of reconstruction

of the Jamestown bridge. This

technical success greatly reduced

costs and operating time for the

project manager.

Cooperation yieldssuccess

1_ In the heart of Sydney, in Australia,Austress Freyssinet completed a foundationproject using Freyssimix jet-grouting.

2_ The use of TechSpan arches proposedby Reinforced Earth Canada made it possibleto rapidly reconstruct the Clemmer bridge inPerth East.

1

2


1_ In Kwang Yang (South Korea),Ménard Soltraitement began atmosphericconsolidation of the soil prior to constructionof a new port terminal.

2_ On the Abu Dhabi ledge, the zones to be treated by dynamic compaction werehandled by four units working with 25 or 15ton masses.

SOIL TREATMENT

Based on a science that is still new, soilmechanics, activities in this field employprocesses developed over the last 35 yearsthat first were able to treat sandy soils(dynamic compaction), followed by claysoils (ballasted blocks) and increasinglyheterogeneous land (Ménard Vacuum,Controlled Modulus Columns,vibroreplacement) and now can be used for the consolidation of underwater soil.

SOIL TREATMENT WITHOUT INCORPORATION OF MATERIALS

In Australia, construction of the TownsvilleSugar Terminal, completed in collaborationwith the Australian subsidiary, AustressFreyssinet, illustrates the advantages of both Ménard Soltraitement processes andintegrated soils and structures solutions.Instead of applying the original soilimprovement method chosen (backfill andpreloading), the consultant Engineerdecided to apply active Ménard Soltraite-ment techniques (dynamic compaction andballasted blocks). These different solutionscan be applied to three types of land identi-fied using a pressuremeter and made

it possible to effectively consolidate the soil beds and ensure carrying capacity anduniform settlement throughout the struc-ture. These techniques also helped shortenthe operational schedule by six weeks, thus reducing costs for the project manager.

In the Middle East, Ménard Soltraitementteams took part in vast redevelopment projects launched by the sovereign of Abu Dhabi to beautify the capital of the emirate. Before construction could begin,the enormous 980,000 m2 platform createdin front of the gulf by hydraulic backfillneeded to be consolidated. This project wasgranted to Ménard Soltraitement who useddynamic compaction for the job and mobi-lized four units operating in 6 m grids with25 or 15 ton masses for seven months.

Following completion of the work in October, a new soil consolidation project in the emirate for an area of more than 1 million square meters was assigned to the company.

In Asia, on the site of construction of a container terminal in the South Koreanport of Kwang Yang, the Korean subsidiaryof Ménard Soltraitement, Sangjee Ménard,began atmospheric consolidation of the highly compressible clay soil using the patented Ménard Vacuum technique.

2

1

> The underwater soil consoli-

dation method proposed by

Ménard Soltraitement and chos-

en by the Autonomous Port of

Dunkirk (France) is an adap-

tation of a land-based process:

vibroreplacement. Using the

”bottom feed”, a device tested

at the beginning of the year in

San Diego (USA), 1,225 offshore

stone columns were created.

Dunkirk: livinginnovation

Ménard Soltraitement was active on threesites in Spain. The first two are located inAndalusia and involved the installation of245,000 m of vertical drains on the construc-tion site of the west Jerez ring road and ofthe Los Barrios bypass near Algésiras. Thethird project conducted in Martorell nearBarcelona involves treatment using dynamicreplacement of 9,000 m2 of soil on the pathof the future high-speed train line betweenMadrid and the French border.

SOIL TREATMENT WITH INCORPORATION OF MATERIALS

In the United Kingdom, on the constructionsite of the Southern Distributor Road, the new Newport ring road, MénardSoltraitement completed its soil consolida-tion project using Controlled ModulusColumns (CMC) prior to creation of blackfillfor the road. This work involved two teams. In addition, the company was awarded theproject for soil treatment in the port sectorsand a nearby landfill. In total, 9,500 Con-trolled Modulus Columns were installed.

In France, the company provided services on the East LGV construction site (the futurehigh-speed train line between France and Germany). On plots 10 and 12 in Ile-de-France and 31D and 34B in Lorraine,Ménard Soltraitement completed consolida-tion of the surface layer of recent alluvia 6m deep on average. No special difficultieswere observed on the Ile-de-France sitesand both were treated using vertical drains.The two Lorraine plots were much morecomplex and this technique was used inconjunction with CMCs and ballasted blocks.On a site in the Val-d’Oise, technical con-straints made it impossible to use normal

Controlled Modulus Columns and this flexible technique was adapted. For the first time, 42,000 m of small-diameter Controlled Modulus Columns, called “matchsticks” CMCs, were implemented inseven weeks to consolidate land preparedfor a 26,000 m2 logistical warehouse.

Lastly, in Dunkirk, Ménard Soltraitement’sproposal for consolidation of an underwaterembankment on the quai des Flandres waschosen. A green light was given for initiationof the project (see photo on the oppositepage).

DEPOLLUTION

In Romania, east of Bucharest, MénardSoltraitement finished at the beginning of2003 the depollution of the soil under a future large supermarket. The system used involved a network of suction drainsconnected to a pumping room by collectorsand a network of clean air drains connectedto the exterior. Before the floor slabs werepoured, 14,000 m of drains and 5,600m of collectors were installed.



1_ To meet specifications, MénardSoltraitement adapted the diameter of theCMCs for a project in the Val-d’Oise (France).

2_ 9,500 CMCs were used for construction of the Newport ring road in the United Kingdom.

1

2

42,000OF CMC IN SEVEN WEEKS IN THEVAL-D’OISE (FRANCE)

M

Consolidated balance sheet(thousand of euro)

(thousand of euro)

Assets 2003 2002

Intangible assets other than goodwill 3,220 4,497Goodwill 19,243 19,999Tangible assets 22,598 26,113Financial assets: 5,382 5,157

subsidiaries and affiliates 1,757 1,910other financial assets 3,625 3,247

Total fixed assets 50,443 55,766

Inventories and work in-progress 24,610 25,728Trade notes and accounts receivables 143,398 147,668Others receivables 21,061 27,746Deferred tax asset 2,422 3,017Short-term financial receivablesand other investments securities 14,483 7,021Cash 16,942 15,919

Total current assets 222,916 227,099

Total assets 273,359 282,865

Equity and liabilities 2003 2002

Capital stock 15,625 15,625Consolidated reserves (group share) 20,867 37,468Net income of the period (group share) 605 – 11,951Shareholder’s equity 37,097 41,142Minority interests 2,846 5,237Provisions for liability 40,690 30,574Long-term financial debt 22,146 30,310

Total long-term capital 102,779 107,263

Down-payments from clients 8,708 9,779Trade notes and accounts payable 90,742 92,633Others payables 48,879 42,754Deferred tax liabilities 883 841Short-term financial debt 21,368 29,595

Total current liabilities 170,580 175,602

Total equity and liabilities 273,359 282,865



Income statement

The past three years

(thousand of euro)

(thousand of euro)

2003 2002

Net sales 419,529 430,488Other income 8,656 8,910Total income 428,185 439,398Operating expenses – 420,359 – 436,163

Operating income 7,826 3,235

Financial expenses – 2,597 – 4,198Depreciation and provisions, financial items –,388 – 270

Net financial income – 2,985 – 4,468

Pre-tax income before extraordinary items 4,841 – 1,233

Exceptional items 1,898 – 925Depreciation and provisions – 1,547 – 5,433

Net exceptional income 351 – 6,368

Amortization of goodwill – 1,618 – 3,714Current taxes – 2,412 – 3,026Deferred taxes – 614 2,616

Net income for consolidated 548 – 11,725

Group share in companies equity interest 62 0Minority interests – 5 – 226

Net income (group share) 605 – 11,951

2003 2002 2001

Net sales 419,529 430,488 388,649Foreign sales 313,625 330,483 289,672

Net income (group share) 605 – 11,951 – 559

Shareholders’ equity including income of the period 37,097 41,142 39,495Provisions for liabilities 40,690 30,574 23,264

Cash flow generated from operations 22,351 8,678 398

Capital expenditure and financial investments of the period: 7,904 15,280 18,540

capital expenditure 7,331 11,863 13,825acquisition of financial investments 573 3,417 4,715

Average number of employees 2,991 2,918 2,788

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Freyssinet - 2003 annual reportin Tamil Nadu state in India: Freyssinet was chosen to perform prestressing involving the installation of 2,700 tons of greased sheathed strands placed