2010 Activity Report - Bureau Veritas

2010 Activity Report

CONTENTS2 Bureau Veritas at a glance6 Interview with the Chairman and Chief Executive Officer10 Key figures12 Bureau Veritas and its shareholders13 Board of Directors and Executive Committee2 Activités16 Nos divisions14 Our businesses4 Réseau international20 Marine6 Chiffres clés22 Industrie32 Corporate social responsibility8 Entretien avec Frank Piedelièvre 24 Inspection & Vérification en serviceet Philippe Donche-Gay26 Hygiène, Sécurité & Environnement14 Comité 42 exécutif Consolidated financial statements28 Constructionet Conseil d’administration30 Certification44 More about Bureau Veritas 32 Biens de consommation34 Services aux gouvernements& Commerce international36 Ressources humaines38 Qualité et HSE40 Relations actionnaires42 Comptes consolidés 200944 Tout savoirsur Bureau Veritas

TitreOur broad range of services is constantly evolving to meet changing needsin QHSE management.ENVIRONMENTSOCIAL RESPONSIBILITYOur servicesINSPECTIONS AND AUDITSInspect facilities, equipment and products and carry out audits of systems and processesagainst local and international standards and regulations or voluntary requirements.TESTING AND ANALYSISHelp clients acquire a thorough knowledge of their products, equipmentand installations through component analyses.CLASSIFICATIONAs a ship classification body, develop and implement maritime technical standardsto protect life, property and the environment.CERTIFICATIONVerify and provide third party acknowledgement that a system, product, person or assetcomplies with a specified requirement for which certification is demanded.ASSET MANAGEMENTProvide inspection, analysis and measurement services throughout the life cycle of buildingsand facilities to help clients keep staff and tenants safe, while controlling maintenancecosts and improving performance of assets.TRAININGImprove the quality, health & safety, and environmental (QHSE) skills of our clients.CONSULTINGDeliver recommendations and benchmarking analyses for risk management; design and implementtechnical and organizational solutions; help clients interpret and apply regulations and standards.BUREAU VERITAS 2010 ACTIVITY REPORT 3

Bureau Veritas at a glanceOUR MARKETSBureau Veritas serves numerous industries at locations all over the world, combiningin-depth understanding of the specificities of its clients’ business sectors with a thoroughknowledge of global and local markets. This unique combination enables the Groupto support its clients in their development.• Aeronautics • Agriculture • Automotive • Construction & Real Estate • Consumer Products •Food • Governments & Public Organizations • Industrial Equipment • International Trade •IT, Telecoms & Electronics • Maritime Industry • Mines & Minerals • Oil & Gas •• Power & Utilities • Process Industries • Retail • Services • Transport & Infrastructures4

Interview with the Chairman and Chief Executive OfficerHow did Bureau Veritas perform in 2010?FRANK PIEDELIÈVRE: 2010 was a remarkablygood year for the Group, with acceleratedgrowth in the second halfyearexceeding ourexpectations. Despitea slow economic recovery,Bureau Veritas posteddouble-digit growthin all key performanceindicators: annual revenuegrew by 11% to €2.9 billion,our adjusted operatingmargin rose to 16.7%,up by 30 basis points, andattributable adjusted“We now offerour clients thewidest rangeof servicesavailablein the testing,inspection andcertificationindustry.”net profit stands at €315 million, up by 15%.We resumed our external growth strategyby acquiring Inspectorate and seven othercompanies in promising markets. As a result,the dimensions of the Group have changed.We have widened our scope with the creationof a new Commodities business, doubledthe number of laboratories, strengthenedour presence in fast-growing economiesand increased the size of our workforce by 23%worldwide. In short, even in a tough economicand competitive environment, we succeededin delivering a robust performance and furtherdeveloping the Group.The crisis revealed a major shiftin economic growth patterns acrossthe globe. How has the playingfield changed?F. P.: We are definitely living in a “twospeedworld”. The EU countries andthe United States suffered the mostdrastic effects of the crisis and theirgrowth prospects in the coming yearsare limited. In contrast, the outlookfor medium-term development in fastgrowingeconomies and commodities-producingregions is extremely favorable, notably in Asia,Australia, Latin America and Africa. Nearly halfthe Group’s revenues are already generatedin these areas and the proportion is rising.What are your clients’ expectations now?F. P.: Our clients are demanding greater valueaddedservices than ever before. They arefocused on maintaining safe, reliable industrialMoving aheadin fast-growing economiesand international trade6

Frank Piedelièvre, Chairman and Chief Executive OfficerBUREAU VERITAS 2010 ACTIVITY REPORT 7

Interview with the Chairman and Chief Executive Officerassets in operation, mitigating environmentalrisks and protecting personnel. To staycompetitive, they require rapid deliveryof licenses to operate and product quality andsafety certifications enabling reduced timeto-market.At the same time, in the faceof economic constraints, they are watching thebottom line and seeking solutions at lower cost.How is Bureau Veritaspositioned to meet thesegrowing demands?F. P.: The Group is now a powerfulindustry player, supported bya strong global network and nearly50,000 skilled employees. We have upgradedand streamlined our operating model andstepped up investments in IT services to ensurefaster service delivery, greater productivity andcost reduction.Our teams have demonstrated a high degreeof creativity and innovation in adaptingto a changing environment. The key to oursuccess lies in our ability to meet the diverseand complex expectations of all our customers.When they choose Bureau Veritas, they knowthey are partnering with a group that hasexpertise, a worldwide presence and resourcesthey will not find anywhere else.“Our servicesare increasinglyrecognizedin the value chainof our clients.”One of the highlights for Bureau Veritasin 2010 was the acquisition of Inspectorate.What is its significance for the Group?F. P.: The acquisition of Inspectorate was botha unique opportunity and a strategic move.With a staff of 7,300 employees and150 laboratories worldwide, Inspectorate haspositioned Bureau Veritasamong the top three globalleaders in a rapidly developingmarket.It has opened up the entire valuechain of commodities to theGroup, allowing usto penetrate the oil andpetrochemicals segment.It has also extended our upstream positionin mineral exploration and production-relatedservices to downstream services, particularlyin international transport and trade whereInspectorate is in the forefront. It now forms thebackbone of our new Commodities business,the second largest in the Group. With pro-formarevenue of €488 million in 2010, this newbusiness combines all Inspectorate activities,accounting for two thirds of revenue, with ourexisting activities in mines and minerals and oilinspection services.Thanks to the addition of this field of activities,we now offer our clients the widest range“Half the Group’s revenuesare now generated in fast-growing economiesand commodities-producing regions,and the proportion will continue to rise.”8

of services available in the testing, inspectionand certification industry.What is the forecast for the Group in 2011?F. P.: In 2011, we expect to post strong growthin revenue and adjusted operating profit, withorganic growth exceeding our 2010performance level. We willcontinue extending our activitiesand geographical networkthrough acquisitions. As a result,despite a more difficult economicenvironment than we hadanticipated at the time of our Initial PublicOffering in 2007, we are on track to reachthe targets set in our 2006-2011 strategic plan.And the outlook going forward?F. P.: I am very confident about our long-termprospects. For more than ten years, BureauVeritas has successfully pursued its growthstrategy to achieve leadership positions in allour businesses and critical mass in keycountries. Today we are on the thresholdof a new phase of development, with newstrategic targets for 2015. The Group’smanagement teams are mobilized to unleashthe full potential of our organization. Ourbusinesses will remain balanced betweenassets, commodities, products and managementsystems, but we plan to expand our rangeof services and further deploy them across ournetwork.One of the challenges ahead will be to betterpenetrate domestic markets in fast growingeconomies, particularly inAsia, India and Latin America.Bureau Veritas is in the frontlines of quality and safetyassurance. That proves ourservices are increasinglyrecognized in the value chainof our clients, where the human, environmentaland financial stakes can be enormous.Expectations are high, but so are the opportunitiesfor growth.“We look forwardconfidently to thecontinuing successof Bureau Veritas.”55%of revenueMATURECOUNTRIESNorth America,Western Europeand Japan45%of revenueFAST-GROWINGZONESLatin America,Eastern Europe,Africa, the MiddleEast and AsiaBUREAU VERITAS 2010 ACTIVITY REPORT 9

Key figuresIn a context of slow economic recovery, Bureau Veritas performed robustly in 2010, with businesspicking up significantly in the second half-year and double-digit growth in all key financialindicators.REVENUEREVENUE BREAKDOWNBY BUSINESS (1)10 %MARINE€3.15billion19 %INDUSTRY14 %IN-SERVICE INSPECTION& VERIFICATIONRevenue reached €2,929.7 million in 2010.This 10.6% rise over 2009 is the resultof 2.8% organic growth (5.9% in H2) anda 2.9% increase in the scope of consolidationdue to acquisitions made during the year,notably Inspectorate. Exchange ratevariations had a positive impact of 4.9%.The Group’s 2010 pro-forma revenueintegrating Inspectorate over twelve monthstotaled €3,152 million.14%10 %15 %CONSTRUCTIONCERTIFICATIONCOMMODITIES12 %CONSUMER PRODUCTS1,012 1,145 1,283 1,422 1,647 1,846 2,067 2,549 2,648 2,930 (1) FY 2010 pro-forma revenue integrating Inspectorate01 02 03 04 05 06 07 08 09 10in millions of euros6 %GOVERNMENT SERVICES &INTERNATIONAL TRADEover twelve months.10

TitreATTRIBUTABLE ADJUSTEDNET PROFITADJUSTED OPERATINGPROFITLEVERED FREE CASH FLOW+15% 16.7%adjusted operatingmargin€288millionBureau Veritas’ attributable net profitadjusted for other operating expensenet of tax came to €315.2 million,up 15.2% vs December 31, 2009.Adjusted net earnings per share were€2.91 in 2010, compared to €2.53in 2009.The adjusted operating profit totaled€490.5 million, up 13.2%. The adjustedoperating margin widened by 30 basispoints to 16.7% in 2010, reflecting theimprovement in operating processesand the rollout of automated productiontools.Levered free cash flow (cash flowafter income tax, interest expensesand capex) was €287.6 million in 2010,compared to €310.1 million in 2009.The 7.3% decline followed an increaseof 63.8% the previous year.23127431515.2%38849143316.4%16.7%18931028808 09 10in millions of euros08 09 10in millions of euros% of revenue08 09 10in millions of eurosBUREAU VERITAS 2010 ACTIVITY REPORT 11

Bureau Veritas and its shareholdersSHARE PRICEInvestors recognize both the potential for strong growth andthe defensive qualities of Bureau Veritas. Following a 27% increasein 2009, the share price rose by 53% in 2010, outperformingthe Paris CAC 40 index, which was down 5% over the same period.On March 31, 2011, Bureau Veritas shares stood at €55.42, an increaseof more than 46% on the Initial Public Offering price of €37.75on October 24, 2007.On average, about 190,000 shares were traded each day in 2010,representing an average daily trading value of about €9 million.in euros6555453525153,349.69 pointsBureau Veritas3,989.18 points01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 032009 2010 2011DIVIDENDA dividend of €1.15 per share will be proposed to the AnnualShareholders’ Meeting on May 27, 2011.This dividend represents close to 40% of adjusted earningsper share, up 37% on the dividend paid in 2010.CAC 40 (relative)MARKET INFORMATIONListing marketEuronext Paris, compartment A, eligible for deferredsettlement (SRD)Initial Public OfferingOctober 23, 2007 at €37.75 per shareInclusion in indicesSBF 120, CAC Mid 60, DJ STOXX 600,DJ STOXX 600 Industrial Goods and Services IndexCodesISIN: FR 0006174348 – Ticker symbol: BVI –Reuters: BVI.PA – Bloomberg: BVI-FRNumber of outstanding shares at March 31, 2011109,899,405Number of exercisable voting rights at March 31, 2011169,559,790Market capitalization at March 31, 2011€6,091 millionFINANCIAL AGENDAMay 4, 2011 (after trading)First-quarter 2011 informationMay 27, 2011Annual Shareholders’ MeetingAugust 25, 2011First-half 2011 resultsNovember 3, 2011 (after trading)Third-quarter 2011 informationANALYST AND INVESTOR INFORMATIONfinanceinvestors@bureauveritas.comSHAREHOLDER BASE (as of March 31, 2011)1.152.5%Managers0.8%Employees0.720.84+37 %44.8%Free float51.2%Wendel Group08 09 10in euros0.7%Treasury shares12

Board of Directors and Executive CommitteeBOARD OF DIRECTORSas of March 31, 2011FRANK PIEDELIÈVREChairmanFRÉDÉRIC LEMOINEVice-ChairmanSTÉPHANE BACQUAERTPATRICK BUFFET (1)ALDO CARDOSO (1)JÉRÔME CHARRUAU (1)PIERRE HESSLER (1)PHILIPPE LOUIS-DREYFUS (1)JEAN-MICHEL ROPERTERNEST-ANTOINE SEILLIÈRE(1) Independent members.EXECUTIVE COMMITTEEas of March 31, 2011FRANK PIEDELIÈVREChairman and Chief Executive OfficerPHILIPPE DONCHE-GAYExecutive OfficerChief Operating OfficerFRANÇOIS TARDANExecutive OfficerChief Financial OfficerARNAUD ANDRÉHuman Resources, Organization,Quality and CommunicationsANDREW HIBBERTGeneral Counsel,Risk and ComplianceSAMI BADARANIDeputy Financial OfficerPATRICK AUBRYIndustry & Facilities (2) , centralfunctions, Construction andIn-Service Inspection & VerificationLAURENT BERMEJOIndustry & Facilities (2) , Northernand Eastern EuropeEDUARDO CAMARGOIndustry & Facilities (2) , Latin AmericaLAURENT CLAVELIndustry & Facilities (2) , Industryand PacificPEDRO-PAULO GUIMARAESIndustry & Facilities (2) , AmericasPHILIPPE LANTERNIERIndustry & Facilities (2) , AsiaJACQUES LUBETZKIIndustry & Facilities (2) , FranceTONY MOUAWADGovernment Services& International TradeIndustry & Facilities (2) ,Middle East, India,Russia and AfricaBERNARD ANNEMarineOLIVER BUTLERConsumer ProductsNEIL HOPKINSCommodities(2) The Industry & Facilities division groups the Industry, In-Service Inspection & Verification,Construction and Certification businesses.BUREAU VERITAS 2010 ACTIVITY REPORT 13

Our businessesMARINE • INDUSTRY • IN-SERVICE INSPECTION & VERIFICATION • CONSTRUCTION • CERTIFICATION •Bureau Veritas has a portfolio of diversified activities, reinforced by a newly created business specialized in commoditiesinspection and testing. The Group is a global leader in each of its eight businesses. Our complementary activities enableus to support customers throughout the life cycle of their assets, products and infrastructures, and ensure the continuousimprovement of their processes.14

COMMODITIES • CONSUMER PRODUCTS • GOVERNMENT SERVICES & INTERNATIONAL TRADE •BUREAU VERITAS 2010 ACTIVITY REPORT 15

MarineLeveraging ourtechnical expertiseServices with high technicaladded valueThe economic crisis affected the entireshipping industry, causing a declinein the transport of consumer goods,raw materials and energy, which, in turn,triggered a collapse in freight rates.The simultaneous increase in thetransport capacity of new ships createdan oversupply of available tonnage,leading to idle vessels and a sharp dropin new construction orders.Our marine business successfullyweathered the recession due to a largeclassed fleet requiring periodic inspectionand demand for our expertise in highlytechnical markets such as liquefiednatural gas and oil tankers, floatingproduction, storage and offloadingfacilities (FPSOs and FSOs), offshoreplatforms and gas terminals, as wellas cruise ships and other specializedvessels. As deepwater oil and gasexploration and production increases,we expect new service opportunitiesto protect rig workers, the environmentand offshore facilities. We are currentlyproviding services from preliminary designto construction and operations monitoringfor major companies in Brazil, Angola,Australia, South-East Asia, China, Indiaand Russia and at shipyards in Asia.Making ships safer and greenerBureau Veritas is leveraging its technicalknow-how to provide a variety of quality,health, safety and environment services.Our advanced simulation tools give usa competitive advantage for classificationand certification of safe containershipsupgrading to ultralarge capacity. We alsooffer services to prepare shipyards andowners for ship recycling, emphasizingthe identification and inventory ofhazardous materials. The Group hasupdated the rules for naval submarineclassification, covering design,construction and maintenance, crewsafety and environmental protection, anddeveloped new rules for LNG offshoreterminals. We have issued guidelinesfor the classification and certificationof offshore wind turbines specifying theenvironmental conditions under whichthey may be used and structural designprinciples. We are also contributing tothe harmonization of IACS (InternationalAssociation of Classification Societies)Common Structural Rules on tankersand bulk carriers.HIGHLIGHTS• 12% growth of the fleet classed byBureau Veritas to 76.5 million grosstons (gt) with 9,493 ships; 747 newship orders (9.5 million gt).• New rules and guidelinespublished for naval submarineclassification, LNG offshoreterminals and offshore windturbines.• Key contract with Eni Norge ASto verify conformity to standardsthroughout the life of the GoliatFPSO in the Barents Sea.• Major ship deliveries: theAmerigo Vespucci, the Laperouseand the Corte Real ultralargecontainerships, built by DSME forCMA CGM; 2,518-passenger cruisevessel MSC Magnifica deliveredby STX Europe.16

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)31.7 %314.8313.528.9 %IN BRIEFOur diversified portfolio of ships and recognized expertiseparticularly in offshore continue to open up opportunities.The Group is playing a leading role in quality, health, safetyand environment services, from energy-efficient design to safeand environmentally-sound ship dismantling and developingnew rules for shipyards and owners.09 10Revenue was stable in 2010, withthe decline in new ship and equipmentcertification offset by the increasein the fleet in service.The fleet classed by Bureau Veritascontinued to grow with new ship deliveries.BUREAU VERITAS 2010 ACTIVITY REPORT 17

IndustryWhen conformity andreliability are the coremarket concernsA dynamic global marketThe focus of Industry business is in linewith two major long-term trends. Thefirst pertains to conformity assessmentof new and existing infrastructuresand the growing complexity of projectsand operations. In mature countries,companies need to ensure the reliabilityof ageing assets and extend theiroperating life. They must also comply withtighter regulations to meet higher quality,health & safety and environmental (QHSE)standards. Regions undergoing rapidindustrialization are enjoying a boom ininvestments in industrial assets in thepower, oil and gas sectors, transportationinfrastructures, process industries andmanufacturing.Global demand for asset-related servicesis expected to keep rising with increasedQHSE management outsourcing,voluntary inspections and risk-basedverification processes entailing greaterinvolvement of specialized third parties,particularly in the US offshore sector.Added-value services such as assetintegrity management, risk-basedinspection, reliability-centeredmaintenance using non-destructivetesting and procurement-relatedservices will continue to be key driversof the Group’s activities.New opportunitiesIncreasing interest in power industries,intensified by depletion of traditionalenergy sources and environmentalconcerns, is the second major trend.We have consolidated our global reachin the power sector, with specializedengineers worldwide, a larger client baseof facility operators and manufacturersand a broad services portfoliostrengthened by the acquisition of thenuclear branch of Thémis-Ingénierie,a French company specializing in riskmanagement auditing. With thereinforcement of certification servicesin the nuclear sector, we expectaccelerated implementation of the NSQ100 standard developed jointly by BureauVeritas and Areva. The new standard isdesigned to improve quality managementof the supply chain of utilities, engineeringand manufacturing companies.Industry business prospects in therenewable energies segment look equallypromising, with strong growth of contractsto inspect photovoltaic and wind farmfacilities and equipment.HIGHLIGHTS• Key contract wins for gas terminalconstruction inspection and qualitycontrol of gas field developmentin China, third-party verificationof subsea equipment in the USand Norway’s Goliat offshore projectand procurement services.• Nuclear sector: acquisition of thenuclear branch of Thémis-Ingénierie(France), development of the NSQ 100standard, quality assurance contractsin Europe and new contracts in China.• Strong growth of contracts to inspectphotovoltaic and wind farm facilitiesand equipment.• Recovery in minerals testing that willbecome a segment of the newly createdCommodities business in 2011.18

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)630757.411.9% 11.7%IN BRIEFThe Industry business is growing in an extremely active globalmarket. Bureau Veritas is particularly well positioned to seizeopportunities in developing regions. We are pursuing a strategyof continuous expansion of our network and offerings in assetprotection, notably in the energy sector. Maintaining our technicalleadership in areas such as deepwater offshore facilities andthe nuclear sector is key. Growth is also expected in the processindustries, rail sector and industrial equipment.09 10Our performance remained strong,especially in fast-growing regionsbenefiting from ongoing investment innew industrial facilities. Growth was alsospurred by increased demand worldwidefor procurement-related services andsafety and reliability improvement.BUREAU VERITAS 2010 ACTIVITY REPORT 19

In-Service Inspection & VerificationPreparing for newmarket openingsA new playing fieldA myriad of new opportunities arereshaping the business environmentfor recurrent in-service inspectionand verification services. Governmentsare imposing stricter health, safety andenvironment (HSE) standards. Regulatoryrequirements in Europe, includingcompulsory periodic inspections, arebeing harmonized across the MemberStates. Owners and operators areincreasingly liable for accidents andinjuries that occur in their facilities.In addition, equipment breakdownscan lead to costly production delaysor loss of business. Inspector training,methodology and IT tools call forever-greater specialization andinvestment. Finally, the installationand maintenance of energy-savingequipment, now mandated in manycountries, requires expertisein advanced technologies.These factors have altered the in-serviceinspection and verification playing fieldand generated two main trends. First,privatization of mandatory third-partyinspections. Governments are reducingtheir role in regulatory inspections.Markets are opening up in Europe underthe impetus of EU directives. Othercountries, such as China, Japan andthe United States, are decentralizingand delegating inspection activities.Secondly, outsourcing of compulsoryor voluntary inspections by companies.Service sector markets such as retailoutlets and banks are relying on secondpartyinspection to ensure HSE regulatorycompliance at all their sites or to applytheir own policies. Insurance companiesare abandoning traditional inspectionservices and granting liability coveragebased on reports from independent bodies.Rolling out a competitiveoperating modelBureau Veritas is ready to competein this new environment. It has expandedits geographical scope and the technicalcapabilities of its local teams to serveboth international and local companiesand provide comprehensive equipmentand facility solutions. Today we are rollingout a best-in-class, IT-driven ProductionCore Model (PCM) to handle resourceplanning, equipment inventories,inspection scheduling, reporting andinterfacing with customers. The PCM canbe adapted to the specifications of newmarkets as they open.HIGHLIGHTS• Expanded offerings with the additionof all Bureau Veritas health, safety andenvironment inspection services.• Three acquisitions: SMSI (USA)for elevator inspection, Halec (France)for ski lift facilities inspection andK. Certificazioni (Italy) for inspectionof electrical equipment and ionizingradiation appliances.• Disposal of specific non-coreinspection activities in the UK (portableelectrical appliances) and Spain(medical surveillance).• Rollout of our Production CoreModel across the network.• New licenses to operate obtainedin Russia, Turkey and Saudi Arabia.20

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)9.6%431431.112.2%IN BRIEFOur recurrent In-Service Inspection & Verification business isbenefiting from favorable long-term factors. Tighter regulations,liability concerns and rising technical expertise are driving trendstowards privatization and outsourcing. Bureau Veritas hasdeveloped an efficient new operating model and a solid networkof first-rate professionals to compete for key contracts.The outlook for our global development strategy to penetrateopening markets is extremely positive.09 10Organic revenue was stable due to recurringactivity with large companies, the disposalof non-core activities and contrastedperformance across geographies. Therewas a surge in business in the United Statesand South America, while some Europeanmarkets still lagged behind.BUREAU VERITAS 2010 ACTIVITY REPORT 21

ConstructionAdjusting our service mixto client needsFocus on existing assetsIn the wake of the economic crisis,the construction market has changedsignificantly. A sharp decline instate-financed infrastructure projectshas occurred in Europe, notably inSpain. In residential and commercialproperty construction, demand forcode compliance assessment has yet toreturn to pre-recession levels in Europeand the United States.Bureau Veritas has responded byadjusting its service mix to client needsand long-term trends. In maturecountries, we are focusing on PropertyCondition Assessment and Monitoring(PCAM), a packaged serviceencompassing due diligence, technicalrisk assessment and compliancemonitoring of existing assets andinfrastructures. PCAM, which includesseismic risk analysis, is now beingpromoted as an all-in-one solutionfor multinational companies to ensureconsistent quality and safety in theirasset portfolios.We are developing Green Building servicesto comply with tighter energy efficiencyand carbon emission standards, andtake advantage of incentives for buildingenhancement. In early 2011, the Groupwill launch the Green Rating Alliance inpartnership with leading global propertyinvestment companies, along with keyengineering companies and technicalcontrol bodies, to assess theenvironmental performance of existingcommercial buildings in Europe, aninitiative likely to be rolled out in Asia.Growth marketsThe greatest potential for newinfrastructure and building projectslies in emerging countries and theMiddle East. We are providingConstruction Project ManagementAssistance to meet the need of ownersfor risk management, with servicesin design review, quality control andschedule and cost monitoring. Thanksto synergies with the Industry business,we are also conducting technicalinspection and third party monitoring forclients on new industrial projects in theseregions.Inherent Defect Insurance (IDI) inspectionand verification at the request of insurersand re-insurers is another promisingavenue for growth. IDI services covera whole range of construction projectsinvolving design verification, worksitemonitoring and regular reporting.HIGHLIGHTS• Patent on earthquake resistanceassessment methodology awardedto Bureau Veritas, paving the wayfor worldwide contracts with L’Oréaland Air France for seismic diagnostics.• Building project managementassistance for 11 pavilions at Expo2010 in Shanghai; Jim Gang Awardfor the Italian pavilion.• Key contract wins: projectmanagement for the new Splendoraurban area in Vietnam, major US powerplants and West African stadiums forCAN International; diagnosis campaignin France for existing public buildings.• Technical center opened in Chinafor LEED green building certification.22

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)457.5427.88.9% 10.2%IN BRIEFThe real estate market was still experiencing severe upheavalin 2010, with continued contraction of investments in newconstruction in the mature countries. We are concentratingon services to assess and improve the safety and sustainableuse of existing assets, with special emphasis on energy efficiencyand carbon reduction. The outlook is favorable for inherent defectassessments and project management, which are set to expandin emerging countries.09 10Progressive recovery in organic growthwas observed in 2010. The market reboundin Asia was confirmed, with strong growth inJapan. The construction market stabilized atyear-end in France, but remained depressedfor US Code Compliance and newinfrastructures in Spain.BUREAU VERITAS 2010 ACTIVITY REPORT 23

CertificationRising engagementin environmentaland social responsibilityIncreased client expectationsIndustries today are facing enormouschallenges. To be competitive, it is notenough to cut costs. Companies alsohave to maintain high quality and safetystandards, comply with regulatorycontrols on pollution and take proactivemeasures to meet stakeholders’ demandfor social accountability – all at the sametime. Bureau Veritas Certification helpsclients address these complexrequirements through three types ofcertification adapted to the differentdynamics of mature and emergingcountries.First, we offer a complete range ofISO and OHSAS certifications, whichare expected to show reasonable growthin the coming years, chiefly in emergingcountries eager to compete in worldmarkets.Secondly, our sector-specific solutionsare developing rapidly due to increaseduse of standards for food safety,forest management and informationmanagement security, as well asestablished reference systems for theautomotive, aviation and rail industries.Finally, customized services are alsoenjoying buoyant growth. This trend islikely to continue, as large internationalcompanies seek to enhance theircorporate image through a commitmentto environmental and social responsibility.Consolidating their certification in singlemulti-site audit programs allowscompanies to outsource their supplyand distribution chains, rationalize theirprocesses and achieve economies ofscale. It provides indicators to gaugemanagement performance and aninformative benchmark. It also spreadsbest practices across their networks.Innovative approachesWe work with industry and governmentpartners to develop and implement globalenvironmental and social responsibilitystandards, guidelines and programs, suchas the Clean Development Mechanismand Joint Implementation, the EuropeanEmission Trading Scheme and BiofuelSustainability Verification. We aredesigning new products and servicesfor companies seeking to incorporateclimate change, sustainable growthand corporate citizenship factors in theirstrategy and operations. Innovation alsolies in improved service delivery throughworldwide deployment of our onlinereport management tools.HIGHLIGHTS• Surge in large global contracts formulti-standard certification, notablywith Volvo, Nexans and TI Automotive.• First dedicated hub to deliverefficient Large Contract servicesset up in Poland.• Reaccreditation for CleanDevelopment Mechanism underthe UN Framework Conventionon Climate Change.• Partnership with Arborus to deliverGender Equality European Standard(GEES) certification.• Further rollout of our customeronline portal, operational in12 countries, including the USand China.24

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)296.9321.619.4% 20.6%IN BRIEFIn 2010, we confirmed our leadership position amid the changingdynamics of the certification market. Demand for genericQHSE standards is rising, especially in Asia. Sector-specificservices are showing increasing vitality worldwide. Multinationalclients are turning to our one-stop shop solutions for theirmultiple sites. Bureau Veritas Certification is also playinga prominent role in defining environmental and socialresponsibility and developing new sustainability-related services.09 10The Certification business achieved solidgrowth by pursuing its successful strategybased on customized solutions formultinational companies, increasedpenetration of mass markets andinnovation. Growth was very strong inChina, the Middle East, Russia and India.BUREAU VERITAS 2010 ACTIVITY REPORT 25

CommoditiesA decisive step forwardin commoditiesA leading playerThe Group’s new Commodities businesscombines all the activities of theInspectorate group, acquired in 2010,with existing Bureau Veritas mining andminerals activities and oil inspectionservices. This business covers the entirevalue chain of commodities, upstreamand downstream, with activities dividedinto three market segments.The oil and petrochemicals (O&P)segment consists mainly of custodytransfer inspection and testing of bulkmarine cargoes in remote locations ofcrude oil production and the world’s majoroil refining centers, as well as specialistlaboratory services. Our activities coverall types of O&P products from crude oiland LPG to specialty chemicals.In the metals and minerals segment,we offer a full array of inspection andtesting services for all minerals andmetals. Exploration and productionrelatedtesting includes geoanalyticaland mineral processing laboratoryservices that provide mining companieswith critical information on the propertiesof the mined product. Our trade-relatedservices involve verifying and certifyingthe value of shipments by assessing thequantity and quality of commodities.The Group is also active in agriculture,where we inspect, certify and testagro-commodities in dry, liquid, bulkor bag forms as well as fertilizers.Our services include quality control at siteelevators, quality supervision on exportvessels and arbitration of disputesbetween buyers and sellers. In the areaof food safety, we deliver tailor-madesolutions for the whole supply chainand services to local government entitiesto ensure that food production andexports comply with internationalregulations and are safe for consumersin major global markets.A strategic move for the GroupBureau Veritas is now a world leaderin commodities inspection and testing,a strategic market with high potentialdue to increasingly globalized trade,tighter regulations, the ongoing trendtowards laboratory outsourcing andincreasing requirements in fast-growingeconomies. The Group continuouslyassesses its laboratory portfolio, eitherto upgrade capabilities at existing sitesor to open new ones and enlargeits service offering.HIGHLIGHTS• Acquisition of the Inspectorategroup, a global leader in commoditiesinspection and testing.• Acquisition of Advanced CoalTechnology, a leading provider of coalexploration testing services in SouthAfrica.• Key contracts signed jointlyby Bureau Veritas and Inspectorate,notably with Richards Bay CoalTerminal in South Africa for theinspection and testing of coalshipments.• Important regulatory changes:new European testing requirementson pesticides and GMOs and adoptionof the US Food Safety Enhancement Act.• Creation of the Group’s Commoditiesbusiness, as of January 2011.26

PRO-FORMA REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)48810.7 %Inspectorate:338 millions of eurosBureau Veritas:150 millions of eurosIN BRIEFBureau Veritas now ranks among the top three global providersof inspection and testing services in the oil and petrochemicals,metals and minerals and agriculture markets. With a networkof over 200 laboratories, the Group’s new Commodities businessis well positioned to benefit from this expanding market andsees very favorable growth prospects as it continues to developits laboratory infrastructure in high-growth regions worldwide.10For this new business, the 2010 pro-formarevenue figure (integrating Inspectorateover twelve months) was €488 million.Healthy growth was achieved due to a strongrecovery in metals and minerals andsustained activity in oil and petrochemicalproducts and agriculture.BUREAU VERITAS 2010 ACTIVITY REPORT 27

Consumer productsInnovative solutionsto optimize supply chainperformanceImproving time-to-marketConsumers today are demanding quality,low prices, and evidence of productsafety, reliability and sustainable sourcing.Within the industry itself, product lifecycles and time-to-market are shortening,whereas QHSE standards and regulationsare becoming increasingly complex andrigorous.Bureau Veritas is well equipped tohelp clients navigate this landscape.We continue to roll out our flagshipBV One Source information managementportal, now used by clients globally,including seven out of the world’s top tenmultiple product line retailers. The systemenables clients to track orders and resultsonline, 24 hours a day, 7 days a week.Key features also include the ability forclients to interact with their supply chainon product quality failures and receiveperformance analysis enabling productand supply chain benchmarkingby country or industry.Anticipating market trends as well asnew obligations, we continue to developvalue-adding solutions such as ourBV One Source Product Technical Folderthat acts as a repository but also tracksthe status of a product’s technicaldocumentation throughout the productlife cycle. To meet the new US ReasonableTesting Program and EU Toy SafetyDirective requirements, we canadditionally provide a total solutioncovering advisory, testing and productioncontrol services. We are also pursuingthe development of environmentalmanagement solutions for consumerproducts addressing CO 2 , hazardoussubstances, energy and water useas well as waste production.Getting it right throughoutthe supply chainTo support growth in emerging markets,we actively partner with governmentagencies and help companies understandand comply with the conformityrequirements in different countries.Further upstream, we can also assistfabric mills in improving fabric qualityand controlling water, waste and energyperformance.With key services to enhance supply chainperformance and quality improvement,we help our clients deliver safe, qualityproducts that balance environmentaland social benefits with the economicneeds of the supply chain.HIGHLIGHTS• New services: EU speed-to-market;China testing for domestic standards;Mill Improvement Program.• Leverage of integrated supply chainsolutions (audit, testing, inspections)for softlines; BV One Sourcedeployment.• New facility set up in Fürth, Germanyto test hardline products.• Electrical and electronics segmentexpansion with acquisition ofNS Technology in China; developmentof testing services for electronic toys.• Miscellaneous accreditations forthe Bureau Veritas photovoltaic (PV)laboratory in Shanghai.• Expansion into growing sourcingmarkets.• Food and cosmetics platformevolution.28

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)359.1382.327.7% 27.6%IN BRIEFIn a highly competitive market, Bureau Veritas is leveragingits flagship BV One Source information management systemto support supply chain optimization and QHSE compliance.In the short term, new regulations will impact the business:the US Reasonable Testing Program, the new EU Toy SafetyDirective as well as evolving SVHC obligations under REACHand requirements for energy-using and related products underthe EU Ecodesign Directive.09 10Organic growth recovered well in H2 2010,despite a negative H1 2010 followingthe record rise in 2009 due to the adoptionof new US safety standards on children’sproducts. Healthy growth in inspectionsand audits as well as the electricaland electronics segment.BUREAU VERITAS 2010 ACTIVITY REPORT 29

Government Services & International TradeAdapting toa changing marketExpanded VOC servicesThe Government Services & InternationalTrade business bounced back in 2010,with a strong increase in volumesinspected offsetting a slow recovery inthe FOB (Free on Board) value of imports.Despite increasing competition, theGroup maintained its global leadershipin Pre-shipment inspection (PSI) services.Verification of conformity (VOC) hasbecome a real alternative to PSI andis likely to be a future growth driver,especially in equipment and electricalproducts. Opportunities to bid on VOCcontracts are multiplying in the MiddleEast, East Africa, Eastern Europe andAsia. Today public authorities are focusingmore on the quality of goods as tariffbarriers decrease along with taxes onimported products, making traditional PSIa less strategic service for governments.The trend is now towards verifying productconformity to technical standards ofquality and safety to protect consumersand local industries and combatcounterfeiting and dumping.of Benin decided to implement a PortSingle Window for foreign tradeat the Port of Cotonou. The ten-yearconcession contract was awarded jointlyto SOGET, which will implement theinformation technologies, and BureauVeritas, which will integrate and operatethe online platform. By accelerating tradeflows in the region, the system has thepotential to become a growth engine forBureau Veritas. Vehicle inspectionservices (VIS) also promise significantbusiness opportunities in emergingcountries, where burgeoning middleclasses are creating demand for new andused vehicles. In 2010, Bureau Veritaswas awarded a contract for VIS in Dakar,Senegal. International trade activityis intensifying due to rising demand forthird-party inspection of goods andcommodities and increased tradingvolumes. The Group’s developmentstrategy in commodities materializedin the acquisition of Inspectorate in 2010,providing additional capabilities inproduct testing.HIGHLIGHTS• Strong recovery in the volume oftrade between exporting and importingcountries.• VOC contracts ramped up in Algeriaand Saudi Arabia and started in Syriaand the Philippines.• The Group’s first Port Single Windowcontract signed with the Republicof Benin at the Port of Cotonou.• New Technical AssistanceDepartment set up to offergovernments further added-valueservices.• Expansion of the commoditieslab network through acquisitionof Inspectorate.New business opportunitiesTo further secure and facilitateinternational trade to meet clients’ needs,Bureau Veritas is developing more addedvalueservices such as “Single Window”systems and technical assistanceservices. In 2010, the government30

REVENUE (in millions of euros)ADJUSTED OPERATING MARGIN(% of revenue)12.4%158.5180.116.9%IN BRIEFIn 2010, this business benefited from the recovery of globaltrade, which had a favorable impact on the volume of goodsinspected. Bureau Veritas succeeded in consolidating itsleadership position in a more competitive inspection market.New needs emerged strongly in the sector of verificationof product conformity. In 2011, commodities prices are expectedto rise, with a corresponding positive effect on these activities.09 10Robust organic growth in GovernmentServices & International Trade, thanksto a rebound in the volume of goodsinspected, a surge in VOC momentumand the start of new contracts.BUREAU VERITAS 2010 ACTIVITY REPORT 31

Corporate socialBureau Veritas focuses its commitment to Corporate social responsibility on the areas wherethe Group’s potential impact is the greatest and our responsibility to take action is most pressing.We maintain these priorities through key programs and initiatives to drive ongoing improvement.As a service company, carefully managing our people and meeting our clients’ expectations areBureau Veritas’ core concerns. We also practice what we recommend to our clients in the fieldsof quality, health & safety and the environment.Our priorities• RELATIONSHIPS WITH STAKEHOLDERS: satisfy our clients, demonstrate compliance to our regulatorsand respond to the concerns of our other stakeholders, notably our employees.• BUSINESS ETHICS: ensure integrity and compliance with our ethical principles across the organization.• HUMAN RESOURCES: develop employees’ skills to support their continued development.• HEALTH & SAFETY: protect our workforce.• ENVIRONMENTAL PROTECTION: preserve natural resources.Our key programs• MAINTAIN AND GROW GLOBAL ACCREDITATIONS to deliver full services to all our clients worldwide.• ROLL OUT OUR COMPLIANCE PROGRAM and Code of Ethics.• UNIFY QUALIFICATIONS MONITORING SYSTEMS throughout the Group.• DEVELOP OUR TALENT PIPELINE and expand our Leadership Essentials program.• IMPLEMENT OUR DRIVING AWARENESS and protection against Ionizing Radiation programs and OHSAS 18001certification across our global organization.• ENCOURAGE ENVIRONMENTAL FOOTPRINTING and action plans to meet sustainability targets,and extend ISO 14001 certification.32

esponsibilityBureau Veritas interacts with a wide range of stakeholders in the course of its activities.We make every effort to meet their needs and expectations by performing our services withrigor and professionalism and holding ourselves to the highest standards of accountability.LOCALCOMMUNITIESPROFESSIONALBODIESGENERALPUBLICEMPLOYEESSHAREHOLDERSAND FINANCIALCOMMUNITYNON-GOVERNMENTALORGANIZATIONSCLIENTSBureauVeritasAUTHORITIESAND REGULATORSCOMPETITORSSUPPLIERS,SUBCONTRACTORS,PARTNERSEDUCATIONMEDIABUREAU VERITAS 2010 ACTIVITY REPORT 33

Corporate social responsibilityMeeting stakeholderexpectationsThe Group has strengthened its organization and developed initiatives to foster closeand constructive relationships with its key stakeholders.Authorities and regulatorsMany services require local, regional or globallicences to operate, issued by public authoritiesor professional organizations as well as regularauthorization renewal. Each Bureau Veritasbusiness has a department to handle relationshipswith authorities and regulators. In 2010, wereinforced our corporate Technical, Qualityand Risk Management (TQR) function in chargeof maintaining and expanding the Group’s portfolioof accreditations.Financial communityBureau Veritas is committed to providing investorsand the financial community with full, frequentinformation on the Group’s businesses, strategyand prospects. In 2010, our top managementmet with over 400 investors in France, the UK,the US, Switzerland, Italy and Germany.All Group publications, including press releases,financial reports and regulatory information,are available on the Group’s website.34

760accreditationsanddelegationsMeetings with400investors42internationalworkshops andcommitteesCLIENT SATISFACTIONWe conduct surveys of our customers to determinetheir level of satisfaction with our services and the areaswhere we can improve. The surveys enable us to deviseinnovative solutions and help customers boost theirown performance.AVERAGE COMPLAINTRESOLUTION TIMEin days50293108 09 10Client relationshipsIn serving some 400,000 clients worldwide, BureauVeritas aims to be a trusted partner, constantlyadapting to its clients’ changing needs and improvingits service delivery.The Group is investing in internal web platforms andinformation systems to optimize inspection andcertification service delivery.The new systems enhance client satisfactionthrough faster, more efficient scheduling andreporting. They will be fully operational in fourof our eight businesses by the end of 2011.In 2010, our Industry & Facilities division held20 client workshops around the world and ourMarine business hosted 22 national andinternational committee meetings. Theseconsultations with clients and regulatory bodiesoffer opportunities to significantly improveour services.BUREAU VERITAS 2010 ACTIVITY REPORT 35

Corporate social responsibilityComplying withour business ethicsWe have built a global business based on our longstanding reputation for expertise.This reputation is an invaluable asset for the Group and reflects our core values.CODE OF ETHICSOur Code of Ethics specifies the ethical values, principlesand rules governing the delivery of Bureau Veritas services.They are the foundation for our growth and developmentand underlie the relationships of trust we forge with clients,employees and commercial partners.In 2010, our Code of Ethics was made available in22 languages and our internal procedures in 6 languages.We also implemented a compulsory e-learning trainingmodule available in 12 languages, which was completed by96% of our employees around the world.Bureau Veritas’ core values:• Integrity and ethics;• Impartiality and independence;• Respect for all individuals;• Social and environmentalresponsibility.Our compliance programThe Group’s values are constantly enforcedthroughout our organization. It is especiallyimperative that our employees carry out their workin an independent manner and deliver their findingsto clients free from any undue influence.In keeping with the requirements of our profession,our compliance program includes a Code of Ethics,a manual of internal procedures, dedicated trainingfor employees and managers and internaland external audit procedures.36

Care for the environmentAs a provider of environmental solutions, Bureau Veritas strives to implement the samemeasures we recommend to our clients. In addition to the programs and tools we have developedto reduce our environmental impact, we are monitoring progress on action plans and promotinggood practices globally.ENERGY AND WASTEOur energy and waste program consolidates key data on energy, paper and water usein an effort to reduce consumption across the company. Over the past two years,the program has been rolled out to our largest locations, covering more than 75%of our total workforce. We aim to extend it further in 2011.ENERGY MWh/year/personWATER tons/year/personPAPER kg/year/person60533.83.012.827.224.7 24.935.408 09 1008 09 1008 09 10Carbon footprintingWe have developed a tool to measure emissionsin accordance with international guidelines.After a pilot project in 2009, the tool was adoptedto support energy savings in activities involving 28%of the workforce. We plan to widen this initiativeto 50% of the Group during 2011.ISO 14001We encourage all our offices to implementenvironmental management systems compliantwith the ISO 14001 standard. To date, 25% of Groupemployees are working in certified entities and otherentities are preparing for certification.World Environment Day 2010Activities took place in more than 30 countries onthe theme “Many species. One planet. One future”.Bureau Veritas India received the Creativity Awardfor drafting a “green” pledge signed by employeesat 32 offices and planting 3,000 saplings. Bureau VeritasMalaysia won the Biodiversity Award for organizinga rainforest visit to educate staff about the importanceof conservation.BUREAU VERITAS 2010 ACTIVITY REPORT 37

Corporate social responsibilityEngaging our peopleBureau Veritas thrives on the commitment and expertise of its employees. We aim to recruit,develop and retain the best people by offering rewarding jobs and opportunities to growprofessionally. Developing managerial talent to support our sustained organic growth is a keysuccess factor in the Group’s fast development.Global workforceAt the end of 2010, the Group had 47,969 employees,compared to 39,067 in 2009. Bureau Veritas added8,063 new employees around the world in 2010.The 23% increase in our global workforce isprimarily due to acquisitions, notably the integrationof Inspectorate. The voluntary departure rate wasabout 10% in 2010, up slightly from 2009 (8%).Employee performance managementIn 2010, we conducted annual performance reviewswith all managers and 80% of our employees.These reviews provide a platform for discussion withsupervisors to set objectives and identify trainingneeds.Developing managerial talentOur managerial talent identification process selectsemployees across the Group who display potentialfor promotion to management positions.In 2010, we identified 215 managerial talents38

48,000employeesin 20108,063new employeesworldwide1,890managers215managerialtalentsidentifiedTRAINING IN THE MARINE BUSINESSOur Marine business relies upon highly-specialized, experiencedsurveyors, auditors, engineers and consultants for its variousprojects. In addition to possessing first-rate academic credentials,Marine employees receive rigorous training qualifying themto prepare tenders and deliver ship certification and inspectionservices. To meet complex client requirements, the Marine businesshas developed a comprehensive database to quickly locate qualifiedsurveyors for each project.to be given reinforced leadership developmentand management training through our LeadershipEssentials program. We held a series of three-dayLeadership Essentials pilot seminars in India andthe Middle East. This program will be extendedto all identified managerial talents as wellas recently promoted managers.clients. To unify qualification management andallow sharing of personnel across our network,Bureau Veritas is introducing a One Companyqualifications management information system.In 2010, we deployed databases for five of our eightbusinesses. In 2011, these tools will be rolled out tothe remaining three businesses.Qualification managementBureau Veritas has always focused on ensuringthat employees have the relevant qualificationsto perform the diverse services requested by ourBUREAU VERITAS 2010 ACTIVITY REPORT 39

Corporate social responsibilityProtecting health & safetyProviding and maintaining a safe working environment for our employees is a top priority.Our objective is zero accidents. Health & safety is also the responsibility of every employee.We have embedded our Health, Safety and Environment(HSE) policy, management and organization at everylevel in the Group to ensure all our staff have theknowledge and information required to perform theirduties safely. Our HSE induction program, whichgives new employees a basic understandingof HSE issues, is bolstered by regular communicationand specific improvement programs.Driving awarenessThe majority of our employees regularly drive to andfrom client sites. This was the primary cause of losttime incidents in 2010 across the Group. Our DrivingAwareness program, implemented more than twoyears ago, benefited 2,227 employees in 2010.The program includes driver assessment, training,vehicle maintenance and other actions to promotesafe driving. Our data shows that the number ofdriving-related accidents decreased in locationswhere Driving Awareness was introduced. Theprogram will be extended in 2011 to include allcountries with more than 50 employees required todrive for business reasons.40

4,435newcomersreceived HSEinduction10countries coveredby OHSAScertification2,227employeestrained in DrivingAwarenessHEALTH & SAFETY INDICATORSFor the past five years, Bureau Veritas has been monitoring health & safety indicators ineach country in accordance with applicable international standards. The 2010 figuresshow improvement compared to 2009. Based on 2010 results, reduction targets havebeen set at 10% for the total accident rate and 15% for the lost time rate in 2011.LOST TIME RATE0.860.750.6908 09 10Equivalent to the numberof work-related lost time accidentsper 100 employees.TOTAL ACCIDENT RATE2.181.62 1.5808 09 10Equivalent to the total numberof work-related accidents (with orwithout lost time) per 100 employees.ACCIDENT SEVERITY RATE0.05 0.07 0.0608 09 10Equivalent to the number of lost workdays per 1,000 hours worked.Ionizing radiationIn some of our inspection activities, employees useequipment that emits ionizing radiation. Over thepast two years, we have implemented a specificprogram to ensure that processes involving ionizingradiation are managed properly and minimizeemployee exposure. All 16 countries covered bythe program had been audited by the end of 2010.OHSAS 18001 certification programOHSAS 18001, the leading international certificationfor health & safety management systems, allowsBureau Veritas to meet its workplace obligationsefficiently. At the end of 2010, 22% of the Groupemployees were working in certified entities andmore certifications are expected in the coming year.BUREAU VERITAS 2010 ACTIVITY REPORT 41

Consolidated financial statementsSUMMARY INCOME STATEMENTin millions of euros2010 2009 2008Revenue 2,929.7 2,647.8 2,549.4Adjusted operating profit 490.5 433.2 387.6Adjusted operating margin 16.7% 16.4% 15.2%Other operating expenses (1) (34.2) (27.8) (19.1)Operating profit 456.3 405.4 368.5Net financial expense (45.7) (61.1) (69.7)Share of profit of associates (0.1) 0.1 0.1Income tax expense (112.9) (87.1) (75.3)Profit from activities held for sale – 0.4 –Minority interests 7.2 5.0 6.4Attributable net profit 290.4 252.7 217.2Attributable adjusted net profit (2) 315.2 273.5 231.4Earnings per share (in euros) 2.68 2.34 2.02Adjusted earnings per share (in euros) 2.91 2.53 2.15(1) Amortization of acquisition intangibles, discontinued activities and transaction-related costs.(2) Before other operating expenses net of tax.SUMMARY BALANCE SHEETin millions of euros2010 2009 2008ASSETSGoodwill 1,329.3 832.2 769.7Intangible assets 330.4 171.4 154.9Property, plant and equipment 281.1 208.2 193.4Other non-current assets 148.9 98.5 140.8Total non-current assets 2,089.7 1,310.3 1,258.8Trade and other receivables 929.7 798.9 800.8Other current assets 28.2 41.9 75.8Cash and cash equivalents 225.0 147.0 153.4Total current assets 1,182.9 987.8 1,030.0TOTAL ASSETS 3,272.6 2,298.1 2,288.8EQUITY AND LIABILITIESEquity attributable to shareholders of the company 844.4 489.7 270.4Minority interests 15.5 11.5 13.4Total equity 859.9 501.2 283.8Bank borrowings 1,185.8 740.8 973.2Provisions and other non-current liabilities 284.0 227.9 252.0Total non-current liabilities 1,469.8 968.7 1,225.2Trade and other payables 736.7 632.8 584.3Current financial liabilities 108.8 85.5 87.9Other current financial liabilities 97.4 109.9 107.6Total current liabilities 942.9 828.2 779.8TOTAL EQUITY AND LIABILITIES 3,272.6 2,298.1 2,288.842

SUMMARY CASH FLOW STATEMENTin millions of euros2010 2009 2008Profit before income tax 410.5 344.4 298.9Elimination of cash flows from financing and investing activities 42.2 42.2 54.3Provisions and other non-cash items 8.8 22.9 27.6Depreciation, amortization and impairment, net 96.6 72.6 63.2Movements in working capital attributable to operations (23.9) 46.6 (62.5)Income tax paid (136.9) (110.1) (66.1)Net cash generated from operating activities 397.3 418.6 315.4Acquisitions of subsidiaries (567.5) (27.7) (318.8)Purchases of property, plant and equipment and intangible assets (76.9) (65.3) (88.1)Purchases of non-current financial assets (17.8) (7.2) (11.1)Proceeds from sales of non-current assets 15.0 20.9 5.1Other 1.1 7.3 7.0Net cash used in investing activities (666.1) (72.0) (405.9)Capital increase 1.6 4.2 3.5Acquisition/disposal of treasury shares 1.4 1.3 (0.2)Dividends paid (91.3) (82.7) (66.2)Increase in borrowings and other debt 727.2 106.8 803.3Repayment of borrowings and other debt (304.5) (338.9) (593.4)Interest paid (34.4) (43.8) (40.0)Net cash (used in)/generated from financing activities 300.0 (353.1) 107.0Impact of currency translation differences 10.9 0.4 (5.2)Change in cash, cash equivalents and bank overdrafts 62.1 (6.1) 11.3Cash, cash equivalents and bank overdrafts at beginning of year 139.3 145.4 134.1Cash, cash equivalents and bank overdrafts at end of year 201.4 139.3 145.4Of which cash and cash equivalents 225.0 147.0 153.4Of which bank overdrafts (23.6) (7.7) (8.0)The detailed consolidated financial statements are available in the Registration Document.BUREAU VERITAS 2010 ACTIVITY REPORT 43

MoreaboutBureauVeritaswww.bureauveritas.com2010 REGISTRATIONDOCUMENTBUREAU VERITASLimited companywith registered capitalof 13,112,232.12 eurosRCS Nanterre B 775 690 621HEAD OFFICE67/71, boulevard du Château92200 Neuilly-sur-Seine – FranceTel.: +33 (0)1 55 24 70 00Design and productionWritingSusan TaponierPicture creditsBureau VeritasComstockFotoliaFrançois MaréchalPrinted in France by the Relais Graphiqueprintworks, using vegetable oil-basedinks on Condat Silk paper, producedin Condat factories.PEFC certified coated paper, made fromchlorine-free pulp.The factories in which this paper is producedare ISO 9001 quality-, ISO 14001 environmental-,EMAS- and PEFC- certified.April 2011© 2011 Bureau Veritas. All rights reserved.44

67/71, boulevard du Château – 92200 Neuilly-sur-Seine – FranceTel.: +33 (0)1 55 24 70 00 – Fax: +33 (0)1 55 24 70 01 – www.bureauveritas.com