Registration Document BOUYGUES

3
Risk factors
Business-specific risks
system and to the preventive maintenance recommendations
made by insurers' engineering departments.
The site is shut down every five years for
major upgrading. SRD is also subject to regular
inspections by DREAL, the regional environment,
development and housing department, which is
responsible for checking that procedures are being
properly applied. Finally, because the production
processes at the facilities create CO 2
emissions,
the site is subject to emissions quotas. Its declarations
are verified by an approved firm of auditors.
Three other much smaller sites are Seveso II
classified (low threshold). These are depots for
the storage of explosives used at quarries on the
islands of Martinique, Mayotte and Saint-Martin.
Outside Europe, other facilities worth mentioning
are the KBC refinery in Malaysia (operated by
the Thai subsidiary, Tipco) and a few explosives
depots in Africa or the Indian Ocean region. These
facilities are managed according to the same prevention
rules as in Europe but subject to differing
administrative frameworks according to the country
where they are based.
Credit and counterparty risk –
Country risk
The road building, waterproofing, safety/signalling
and construction materials businesses have an
extremely diversified customer base (including
large numbers of private sector customers and
local authorities), so significant counterparty risk
is low. In the rail sector, a very high proportion of
business is with infrastructure companies or bodies
under State control. Private-sector customers
are subject to upfront credit analysis, backed up,
wherever possible, with credit insurance in order
to mitigate counterparty risk. Based on statistical
analysis, the most significant risks can be quantified
at a few hundred thousand euros. Colas has
responded to the increased risk level arising from
the financial crisis by tightening the procedures
applied prior to the signature and start of construction
contracts.
Colas generates 92% of its sales in Europe or North
America (US or Canada). Exposure to country risk
is therefore low, as is the risk of payment default,
given that approximately 60% of sales is realised
with the public sector (national, regional and local
government), with a large number of low value
contracts.
Operations in high-risk countries with poor ratings
from international agencies or credit insurance
bodies (such as Coface) usually involve contracts
funded by multilateral development agencies
(such as the European Development Fund or World
Bank). The level of overdue receivables due at the
end of 2011 has fallen compared to 31 December
2010. These receivables represent, to a very large
extent, amounts owed by government or local
authorities. Although they generate unforeseen
additional recovery costs, there does not appear
at present to be a high risk that they will not be
ultimately collected.
Operational risks
Colas has detailed procedures in place for the
haulage of heavy plant and industrial machinery
(reminders of the regulations applicable to carriage
of exceptional loads by road, use of standard local
calculation software by all subsidiaries, preparation
of a transport action plan by each subsidiary,
instructions and procedures for securing heavy
plant in transit, procedures for the contractualisation
of transport and plant hire). Stringent fire prevention
procedures are in place (especially in the
waterproofing business) and preventive measures
are also applied to excavation work where there is a
risk of fracturing underground supply networks carrying
dangerous substances (such as gas mains).
Colas has for many years followed a highly proactive
prevention and training policy as regards
accidents in the workplace and on work-related
journeys. This policy has led to significant and
lasting reductions in the frequency of workplace
accidents and road accidents (although there was
a slight increase in 2011).
Colas regularly monitors occupational health
hazards. In particular, the group has long been
monitoring exposure to bitumen fumes in France
and elsewhere. This twenty year study has earned
it representation on most of the task forces dealing
with this issue. This process within the group
is coordinated by the Human Resources and
Environment departments, with regular reporting
to senior management. Colas has been working on
this issue with occupational health authorities and
government agencies for some time and regards
the risk as low and adequately mitigated, except
in confined spaces (tunnels) where specific risk
analysis is necessary due to the combined effect of
vehicle exhaust fumes and ventilation issues. The
only proven undesirable health effect arising from
road construction working conditions is irritation of
the respiratory tract and the eyes.
On 19 October 2011, the IARC published a reevaluation
based on a scientific review of all the
available studies worldwide to decide whether bitumen
or bitumen emissions may be carcinogenic.
It has decided to classify occupational exposure
during road paving or mastic asphalt work in group
2B, i.e. possibly carcinogenic to humans. This classification
indicates that, despite the large number
of studies conducted, the IARC has been unable to
rule out the existence or confirm the nonexistence
of a probable or proven causal link between the
use of bitumen in road construction and cancer.
This expression of doubt and scientific caution is
an invitation to the scientific community to continue
its research, especially into potential action
mechanisms at bio-cellular level. Its conclusions
are based on numerous laboratory or epidemiological
studies that have not highlighted carcinogenic
effects from exposure to road building conditions.
Based on all the studies conducted, Colas has not
altered its bitumen fumes exposure cancer risk
assessment. Under normal construction conditions,
it regards this risk as low and sufficiently limited
according to current government guidelines.
There is no indication at this stage that either the
European Union or the United States will decide
to re-evaluate their position based on this IARC
overview. However, Colas is remaining alert to any
regulatory solutions that may materialise. Colas is
keeping a close eye on this issue in France, with
recent lawsuits and media campaigns seeking to
cast doubt on one of the main materials used in
road building. Colas is continuing to make onsite
employee exposure measurements and is pursuing
its cooperation with researchers. Colas is also
pursuing its innovation policy proactively to protect,
individually and collectively the health and safety of
staff working on surfacing or asphalting projects. In
October 2011, Colas decided to broaden its paver
(the machine that applies bitumen mixes to roads)
purchasing policy to the rest of the world. This
policy involves only purchasing pavers equipped
with a fume extraction system (provided machines
of suitable size are available). All Colas pavers of
over seven tonnes in North America are therefore
equipped with fume extractor hoods.
IARC: International Agency for Research on Cancer
BOUYGUES • 2011 Registration Document • RISK FACTORS • 141