Message from Simon Azoulay

From the first half of the year, ALTEN has withstood one of the most brutal economic crises on record.

The Alten Group, strengthened by an excellent 2008 (20% mainly organic growth), had almost 13,000 employees as of January 2009, 88% of which were top-level engineers. 2009 was marked by the effects of the economic crisis, which has had a devastating effect on the Engineering and Technology Consulting (ETC) market since January.
Numerous projects were delayed or even cancelled, primarily in the Automotive sector. On the other hand, the Alten Group was able to maintain or even expand the bulk of its business in other sectors such as Aeronautics, Energy, Rail and Services.
In spite of the crisis and the resulting difficulties, several customers have increased their price pressure, further destabilising our already fragile market. 
Acquisitions completed early in the year enabled us to record a slight 1.3% increase in sales, i.e. 857.1 million euros, despite the crisis and the October closure of the Idestyle subsidiary.  Business fell by 9.5% on a like-for-like basis.
The Group strengthened its international presence, which now represents more than 30% of its sales thanks to acquisitions completed in Italy and Scandinavia.

Improvement in operating margin in the second half of the year

Following significant efforts made throughout the first half of the year (in which ALTEN recorded an 88.5% activity ratio, the weakest in its history), business stabilised during the second half of the year. Reactive management in response to this intense crisis affirmed the Group’s ability to adapt in a challenging environment and the appropriateness of its position.

ALTEN improved its operating margin during the second half of the year: from 6% during the first six months to 9.6% in the second six months. Assistance measures and training for engineers without projects, a drastic cut in operation costs, a reduction in the number of consultants between contracts and aggressive management of salary scales helped to improve the margin.

An organisation ready to confront changes in the market

The activity ratio is under control, enabling the Group to approach 2010 with confidence.  Now more than ever, ALTEN appears well-positioned to meet the needs of its customers.
In order to better support customers in their need for project globalisation, ALTEN has strengthened its Technical Division and launched a quality plan (CMMI) and project management tools.

The ALTEN Group remains the European leader with more than 10,000 engineers and consultants.  More than 40% of its business is carried out through integrated projects and work packages, managed directly by its supervisory teams, often at its own facilities.  The ALTEN Group is now the main European player providing “Integrated Projects and Work Packages”.

In conclusion

Strengthened by its well-managed business, its properly adapted organisation and a slightly improved start to 2010, the Group is in proper “working order” to benefit from the coming recovery.
Our managers, our engineers and consultants and our functional departments have demonstrated unbridled commitment and tremendous effectiveness in managing this unprecedented crisis.  They are confident, ready to calmly face new challenges in the future and to support the relaunch of the business.
ALTEN’s financial position and its almost total lack of debt will enable it to grasp new, targeted opportunities for external growth in total peace of mind.
Many opportunities for growth still remain, both in promising sectors such as Energy, Infrastructure and Electric Automobiles and in geographic regions with strong growth potential (Germany, the Benelux region, Scandinavia, Asia, etc.) where the Group still lacks a strong presence. In addition, the systematic reduction of the number of listed suppliers among major clients should further ensure natural growth opportunities.

"I remain especially confident in the relevance of our packages’ position and the strategy we have implemented. The ALTEN Group, armed with its capacity for growth and margins which are once again satisfactory, will expand its position as the European leader in the Engineering and Technology Consulting (ETC) market."