Driving progress - Fives

Doha
Istanbul
Moscow
Chennai
Shanghai
Bangkok Jakarta
Tokyo
2007 Annual report
Driving progress
Q

METALS - ALUMINIUM: Fives Solios
01 Foreword
02 Chairman’s message
04 Governing bodies
06 Key fi gures
08 Highlights
10 Our values
16 International development
20 Human resources
24 Innovation
28 Aluminium
30 Steel
32 Automotive and Logistics
34 Cement
36 Energy
38 Sugar
41 Financial report
www.fi vesgroup.com
AUTOMOTIVE AND LOGISTICS:
Fives Cinetic
CEMENT: Fives FCB / Fives Pillard
METALS - STEEL: Fives Stein / Fives DMS /
Fives Celes / Fives Industries
ENERGY: Fives Cryogenie / Fives Nordon

ENERGY - SUGAR:
Fives Cail
Fives designs and supplies process equipment,
production lines and plant facilities on
a turnkey basis for major industrial players,
all over the world.
Fives’ experience in industrial engineering and
in managing large projects abroad is unique. Thanks
to the quality of its teams and its fi eld knowledge,
Fives is recognized for its ability to manage projects
as a whole within deadlines and in compliance
with performance guarantees.
Fives’ multi-sector expertise gives it a global vision
of the industry which provides a continuous source
of innovation for R&D departments. Fives shares
this wide variety of accumulated experience with
its customers in an effort to keep searching for
new industrial solutions that combine technology,
safety and profi tability.
www.fi Fives 2007 vesgroup.com Overview
01

CHAIRMAN’S MESSAGE
2007 was another exceptional year
for Fives, enabling us to envision
the future with confi dence.
In 2007, our commercial successes are refl ected in a spectacular
increase in order intake, which grew by 25% to a record €1.5 billion
and by further growth in sales, which increased by 11% on a
reported basis and by 7% at constant scope and exchange rates.
These results refl ect the dynamic momentum in Fives’ markets
and our capacity to make the most of this momentum.
The quality of the Group’s operating performance and fi nancial
results is another source of satisfaction. Operating profi t grew by
21% in 2007, thanks to the quality of the orders taken and the
professionalism of their execution. Net group profi t increased
from €22.9 million to €31.6 million. Shareholders’ equity and
net cash once again increased, to €159 million and €253 million
respectively, thanks to strong generation of free cash fl ows.
These fi nancial performances support the Group’s steady and
sustainable strategic path. They give us the means of accelerating
our ambitious and controlled growth strategy, whose long-term
success will depend on our capacity to invest in order to prepare
the future, by:
Investing in the Group’s main asset: the women and men it
employs. Placing the priority on career management, staff training
and on reinforcing and renewing teams (more than 400 new
hires worldwide in 2007) and enhancing cultural diversity.
Investing in research and development – whose budget was
doubled between 2005 and 2007 – with the double aim of
maintaining or even increasing our technological lead and
enhancing the competitiveness of our solutions, to design, with our
customers, the plants of the future. By reconciling responsible
development and industrial profi t as well as creating solutions
with high environmental added value that reduce energy costs
and carbon dioxide emissions, we will accelerate our growth.
Fives 2007 Overview
02
Investing in our sales network, by continuing the active
expansion of recent years – two new representative offi ces were
opened in India and Turkey in 2007 – and by making development
in emerging countries, which accounted for more than
42% of Group sales in 2007, an absolute priority.
Investing in external growth operations with the double aim of
expanding and strengthening the Group’s offer at the technical
and/or geographic level. The integration of Sandvik’s postal and
parcel sorting activities (sales of around €85 million) in the
middle of the year refl ects this logic.
Investing in the set up of a Group Corporate Social Responsability
policy.
Investing in building the Fives brand name, which is still new
but which has already been adopted by staff and customers.
The resolutely modern visual identity and corporate tagline
“Driving progress” express Fives’ determination and commitment
to becoming a motor for change and lasting progress for customers,
staff and shareholders.
Thanks to an opening order book of more than €1.4 billion (an
increase of 42% over the year), which provides good visibility
on sales despite the more diffi cult economic environment, we can
expect 2008 to be another year of strong growth for the Group.
Further ahead, Fives – now stronger than ever thanks to the
fundamental changes undergone in recent years – has real
potential for organic growth that adds much value.
Frédéric Sanchez

www.fi vesgroup.com
03

GOVERNING BODIES
Executive Board
Fives is managed by an Executive Board composed of four members,
under the supervision of the Supervisory Board.
Jacques Lefèvre is the Chairman of the Supervisory Board which is composed
of six other members: Guillaume Jacqueau, James Arnell, Stéphane Etroy,
Fabrice Georget, Arnaud Leenhardt and Vincent Pautet.
Executive committee
Daniel Brunelli-Brondex
CEO of Fives Stein
Chairman and CEO of Fives Celes
James Roget
CEO of Fives Nordon
Fives 2007 Overview
04
Jean-Marie Caroff
Head of the Group International Development
Department
Jean-Claude Salas
CEO of Solios Environnement and Chairman
and CEO of Solios Carbone
Frédéric Sanchez
Chairman of the Executive Board
The Executive Board is assisted by the Executive committee. As a body whose purpose is the consideration and exchange of information,
this committee reviews specifi c issues and helps the Executive Board in reaching decisions concerning matters falling within its powers.
In particular, the Executive committee deliberates on matters of common interest and questions of coordination between the Group’s
various entities.
Alain Cordonnier
CEO of Fives FCB
Jean-Paul Sauteraud
Head of the Group Legal Department

Martin Duverne
Member of the Executive Board
In charge of the Energy and Logistics divisions
Michel Dancette
Chairman and CEO of Fives Cail
Michelle XY Shan
Vice President Business Development China
Philippe Ramet
Member of the Executive Board
In charge of Strategic development and Innovation
Jean Ledoux
CEO of F.L. Metal
In charge of the set up of a Corporate Social
Responsibility policy
Jean-Camille Uring
Deputy CEO of Fives Cinetic
Lucile Ribot
Member of the Executive Board
Group Chief Financial Offi cer
Jean-Claude Pillard
Chairman and CEO of Fives Pillard
05
Paule Viallon
Head of the Group Human Resources Department
www.fi vesgroup.com
05

KEY FIGURES
The Group’s leading position in each
of its markets enabled it to record an exceptional
performance in 2007, mainly through organic growth
in terms of both activity and earnings.
Fives 2007 Overview
06
877.1
48.8
40.3
914.3
51.3
43.1
1,024.9
62.3
53.1
1,137.3
2004 2005 2006 2007
74.8
64.4
Group sales grew by 11% thanks to a very strong
opening order book as well as an exceptional
level of order intake.
Operating profi t and operating profi t before amort-
ization and depreciation came to €64.4 million
and €74.8 million respectively, another marked
rise year-on-year. All the Group’s businesses
made a positive contribution to performance.
187.8
133.1
2004
190.0
2005
In euros millions In euros millions
Sales
Operating profi t
Operating profi t before amortization
Sales, Operating profi t and Operating
profi t before amortization
134.2
233.8
Closing net cash position
Shareholders’ equity
149.9
2006
Closing net cash position
and Shareholders’ equity
253.3
2007
159.1
The Group’s fi nancial structure is sound and
solid, with shareholders’ equity of €159 million
and a signifi cant increase in net cash compared
with the previous year.

861.1
703.8
953.2
2004 2005
In euros millions
Order intake
Order book
814.4
1,206.6
2006
988.6
1,503.0
1,401.8
2007
Thanks to the excellent commercial performance
achieved in 2007, the Group has started 2008
with yet another record order book, providing
excellent visibility on sales in most of its markets
over the present year.
€1.137 billion
of sales
78%
of sales from activities outside France
19.3%
15.3%
Metals (aluminium
and steel)
Automotive/Logistics
Energy
Cement
Order intake and closing order book Breakdown of 2007 order intake
by end market
43.0%
22.4%
€159 million
of shareholders’ equity
13.1%
30.6%
Breakdown of 2007 order intake
by geographical area
Refl ecting order intake equally divided between the steel and aluminium activities in the metals
division, Group order intake in 2007 was relatively balanced by end market as well as geographic area.
16%
4,986
employees
19.7% 20.6%
Africa and
the Middle East
France
Asia and Oceania
Europe (excluding France)
The Americas
www.fi vesgroup.com
07

HIGHLIGHTS
2007, a year
of remarkable successes.
February
• To the core of the nuclear reactor at Flamanville
1,000 tonnes of tubes, 216 tonnes more contracts at the end
of support fi ttings and 166 tonnes of the year: one with Alstom
of valves are to be installed by Fives for medium-pressure pipes linking
Nordon for the construction of the the condensers in the turbine hall,
European Pressurized Reactor (EPR) which calls for another 325 tonnes
at Flamanville, France. This order, of equipment, and the other
awarded by Alstom, covers the with Areva for the reactor’s six
design, supply, prefabrication and
installation of all the high-pressure
steam-water pipes for the turbine
hall. It will be followed by two
IRWST Sump Suction lines.
December
• China: Building a cryogenic heat
exchanger manufacturing plant
In 2007, the Group takes a new step forward
in China by initiating the necessary formalities
with local administrative authorities for the
construction of a new brazed aluminum cryogenic
heat exchanger manufacturing plant near Shanghai.
In response to demand from its main customers,
Fives decides to build this new industrial facility
which will strengthen the manufacturing capability
and the market position of its subsidiary, Fives
Cryo. By 2009, this subsidiary will be the fi rst
heat exchanger manufacturer to combine Western
expertise with a Chinese production unit.
Fives 2007 Overview
08

April
• Baosteel renews its confi dence in Fives
– The Group consolidates its
position as Baosteel’s leading
supplier. China’s premier steel
producer chooses Fives for the
manufacturing of mechanical and
thermal equipment for the tinplate
annealing line at its Meishan plant.
In the second half of the year, the
Group won a new order to supply
a galvanizing line for the production
of steel with very high yield
strength and a ZR21 type rolling
mill for the Shanghai No. 1 plant.
These two fl agship projects bring
the number of major contracts
September
• A cement plant
for Beni Suef Cement Company
The joint venture formed by Lafarge, world leader
in building materials, and Titan, the leading Greek
cement producer, awards the Group a turnkey
contract to supply a cement plant with a capacity
of 4,000 tonnes a day in Egypt.
awarded to Fives Stein and Fives
DMS by this customer to fi ve
in less than three years.
– Also in April, Fives Cinetic
receives from a worldclass
manufacturer of crankshafts an
order for four large-sized grinding
machines for ship crankshafts.
This commercial success follows
a fi rst order in 2006 and testifi es
to the reputation for quality
earned by the Cinetic Landis
research center which designed
these innovative machines.
May
• Areva chooses Fives for
its Georges Besse II project
Fives Nordon is awarded an order representing
four years’ work by SET (Société d’Enrichissement
du Tricastin), an Areva subsidiary, for its
Georges Besse II project in France. The uranium
enrichment process based on centrifugation
will consume 30 times less electricity than
conventional processes. For the same project,
Fives Nordon is selected by ETC (Enrichment
Technology Corporation), a joint venture between
Areva and Urenco, to install all the valve
and cascade stations.
July
• Birth of Cinetic Sorting
In logistics, Fives completes the acquisition
of the Sandvik Sorting Systems subgroup
from the Swedish group Sandvik on June 29.
The subgroup, renamed Cinetic Sorting, has three
subsidiaries, in Italy, the USA and Japan, with
a total workforce of 300. This leader in the parcel
sorting segment for postal and courier services
completes Fives Cinetic’s range in the design
and supply of high-speed automatic sorting
systems and equipment.
August
• Fives, a major player in the Qatalum project in Qatar
Fives Solios is awarded a turnkey water scrubbers for the desulfurization
contract by the Norwegian company of gases, as well as an order for
Hydro Aluminium and Qatar
the liquid pitch terminal. Fives Solios
Petroleum, a state-owned company, ends the year by signing four other
in connection with the construction contracts which came into effect
of one of the most effi cient and at the beginning of 2008, concerning
the cleanest aluminium plants ever eleven melting and holding furnaces,
built in the world, in Messaied, Qatar. with two water cooling systems for
In addition to a fi rst contract for the casthouse, the fi ring equipment
the supply of a green anode plant, and control process system for anode
Fives Solios obtains a contract for baking furnaces (Setaram technology)
four potline gas treatment centers, and the fume treatment center
supplemented downstream by sea for that baking furnace.
www.fi vesgroup.com
09

OUR VALUES
“To be an accelerator of sustainable industrial
progress. Fives’ ambition rests as much on
its capacity to conceive and furnish installations
that reconcile responsible development with
industrial profi t, as on its values of accessibility,
expertise, commitment, open-mindedness,
and the spirit of success.”
Frédéric Sanchez
Fives 2007 Overview
10

Relationships based on the ability to listen,
communication and responsiveness are essential in order
to build trust. This state of mind enables us to establish
long-term relationships with our customers.
Richard SERRET / Director Fives Russia & CIS
Accessibility
www.fi vesgroup.com
11

Expertise
Fives 2007 Overview
12
Holding the position of technological leader
in all our fi elds is central to our strategy.
Fives has teams of experts ready to take
up the challenges laid down by our customers.”
Oussama CHERIF IDRISSI EL GANOUNI / Manufacturing
Intelligence Project Director

The motto “Fives keeps its promises” is fi rmly rooted
in the minds of all our project teams, but its true meaning
comes from our actions: our challenge is to fi nd better
solutions for our customers everyday.
Nathalie VINDEVOGEL / Eng. Project Manager – Fives FCB
Commitment
www.fi vesgroup.com
13

DOLORES Open-mindedness
TEMPORET
Fives 2007 Overview
14
Fives has always expanded by opening up to the world
and sharing its competencies with people from different
backgrounds. This diversity of origin and expertise
is a source of enrichment for all of us.
Michelle SHAN / Vice President Business Development China

Spirit of success
An engineer is always trying to push back boundaries.
Fives has been driven by this quest for progress for almost
200 years. Now more than ever,the industry has to invent
new solutions in order to meet new challenges.
Jean-Jacques DEPUYDT / Managing Director, Fives Cryo Suzhou
www.fi vesgroup.com
15

INTERNATIONAL DEVELOPMENT
A long-standing presence
worldwide
With some 50 subsidiaries across
all the continents, Fives spans the globe.
To further strengthen its links with
customers, the Group stepped up the
expansion of its representative network
over the last two years with the opening
of new offi ces in Japan and then Turkey,
followed by the recent creation of a
subsidiary in India. An offi ce is also due
to open mid-2008 in São Paulo, Brazil.
An international network
“
This representative network is of vital
commercial importance and provides all the
companies in the Fives Group with the backing
of a permanent means of access to markets,
built on the commercial and organizational
competencies acquired in specifi c geographic
areas.”
Head of the Group International Development Department,
Jean-Marie Caroff.
The many roles of these offi ces include: preparing strategic data
summaries, analyzing the fabric of local industrial activity and
practices, and providing support for negotiations, the creation
of partnerships, subcontracting and securing sales contracts.
Fives 2007 Overview
16
They also constitute a channel of communication and a means
of conveying the Group’s image. Fives has expanded the role
of this network in some strategic countries by integrating
engineering skills to take charge of some local production
thus increase Fives’ competitiveness in the concerned markets.
This has already been achieved in China, and will soon be
happening in India.
Japan, one year later
Like all other offi ces in the world, the top priority for the Tokyo
offi ce, in operation since 2006, is to promote Fives’ products
and services to major Japanese contractors. Its role also includes
arranging partnerships with Japanese engineering companies
and identifying acquisition opportunities in this market.
This offi ce’s deployment has been successful, as Jean-Marie
Caroff explains:
“ In
one year, we have secured many privileged
contacts with key players in the automotive
industry, the steel industry and other sectors.
This has already given us a clearer view of
the challenges and practices in Japanese industry
and the scale of its connections with the whole
Asian business world.”
A stronger presence in Turkey
The opening of an offi ce in Istanbul, at the end of 2007,
strengthened the Group’s position in Turkey, at the crossroads
of Europe and Asia. The Group has already won signifi cant
orders from Turkish manufacturers and Fives is now recognized
in most of its business fi elds there. Turkey also has engineering
skills and project implementation opportunities, well beyond
its borders.
As Jean-Marie Caroff points out:
“ Our
new offi ce should enable us to form
constructive partnerships with the most powerful
Turkish groups in order to promote mutual
developments throughout the region.”

In 2008, Fives’ ambition is to become Indian in India
as the Group has already become Chinese in China.
Jean-Marie CAROFF / Head of the Group International
Development Department
www.fi vesgroup.com
17

INTERNATIONAL DEVELOPMENT
India: Integrating local skills
Fives is opening an offi ce in Chennai (formerly Madras) with
the aim of establishing, in the short term, a manufacturing
subsidiary. For Fives, it is a matter of becoming “Indian in India”,
just as the Group has already become “Chinese in China”. In
addition to providing sales support for many subsidiaries, this
entity will quickly acquire engineering, sourcing and supply
capacities for various types of equipment. Opening up to the
local market is essential to Fives’ competitiveness in this
country.
Fives 2007 Overview
18
Harmonizing, sharing and mobilizing
In 2007, Fives confi rmed its international stature by continuing
its expansion strategy, strengthening its permanent presence
in every high potential market. In this context, Fives’ International
Development Department ensures that information and experience
are shared among the Group’s subsidiairies sales departments.
The International Development Department is also able to offer
its international customers suitable fi nancing solutions and
provides subsidiaries with its technical expertise in the fi eld of
secured payment. It also acts as a natural interface for Fives’ export
activities with public authorities, banks, fi nancing companies,
public and private insurance companies and international
development organizations.
Managing major international projects
Recognized know-how
Project management know-how gives a decisive competitive
edge. Fives is recognized by industrial groups all over the
world for its technological capabilities and its competency
in the management and performance of major international
contracts. This know-how, developed through the management
of several generations of projects all over the world, is based
on sound in-the-fi eld experience and in-depth knowledge
of local players. This represents a signifi cant advantage when
it comes to selecting partners or subcontractors, integrating
them in the project and supervising their provision
of services. For decades, Fives has demonstrated its ability
to fulfi ll its commitments, regarding both deadlines and
production capacities.

Group head offi ce
Representative offi ces
Subsidiaries
NORTH AMERICA
Canada (Montreal)
United States (Carnegie,
Chardon, Farmington Hills,
Louisville, Pittsburgh,
South Beloit, Hagerstown)
Mexico (Mexico City, Saltillo)
Brazil (Sertãozinho)
ASIA, OCEANIA
SOUTH AMERICA
PR of China
(Beijing, Shanghai, Suzhou,
Tianjin)
India
(Calcutta, Chennai)
Indonesia (Jakarta)
Japan (Kobe, Tokyo)
South Korea (Seoul)
Thailand (Bangkok)
Vietnam
(Ho Chi Minh-City)
Australia (Sidney)
South Africa
(Johannesburg)
Bahrain
(Manama)
EUROPE
A worldwide presence in
25 countries
MIDDLE EAST,
AFRICA
France (Head offi ce)
(Paris)
France
(Le Bignon, Évry, Givors, Golbey,
Grigny, Héricourt, Lautenbach,
Marne-la-Vallée, Marseille,
Nancy, Saint-Céré,
Saint-Germain-en-Laye,
Saint-Mars-la-Brière,
Saint-Ouen-l’Aumône, Seclin,
Vaulx-en-Velin,
Verneuil-sur-Vienne,
Villeneuve-d’Ascq…)
Great Britain
(Cranfi eld, Cross Hills, Derby,
Didcot, Liverpool,
Southend-on-Sea,Wombourne)
Germany
(Taunusstein)
Spain
(Bilbao, Madrid,
Valladolid)
Italy
(Milan, Torino)
Belgium
(Brussels, Falisolle)
Switzerland
(Allschwil)
Romania
(Stefanesti)
Slovakia
(Bratislava)
Turkey
(Istanbul)
Russia
(Moscow)
www.fi vesgroup.com
19

HUMAN RESOURCES
Women and men
Our driving force
What are the objectives of the human resources
policy of the Fives Group?
Paule Viallon : The Fives Group’s ambition is to build the plants
of the future. This calls for technical excellence, but also for
human qualities and full and free expression of creativity. It
shows how important the men and women are in a group like
ours. Placing the individual employee at the heart of our human
resources policy is a clear priority. Our aim is to optimize all
the competencies that exist within the Group, and this means
taking into account each individual. Our high level of activity,
the retirement of many employees and the emergence of
new disciplines have led to profound changes in the challenges
facing the Group’s human resources policy. Recruiting applicants
with the best profi les is no longer enough: we must also support
them, motivate them and secure their loyalty.
How would you defi ne the Fives Group’s specifi city?
P.V. : Fives is an extremely diversifi ed group of international
standing with business activities worldwide. Each employee has
a specifi c mission and we must create conditions to guarantee
that our personnel do their jobs to the best of their ability by
showing our interest in their future and their needs.
Fives is also a captivating group, as illustrated by the results of
the employee satisfaction survey conducted in the fall of 2007:
interest and diversity of the work, autonomy, good internal
relations and openness to many disciplines are valued, showing
a strong feeling of belonging to the Group for all professional
categories. In fact, with some 50 subsidiaries, Fives combines
the advantages of a big group with the fl exibility and friendliness
of “human sized” structures.
Fives 2007 Overview
20
How would you epitomize the human resources
policy?
P.V. : Dialogue, Development, Diversity.
Dialogue because any community needs constructive exchanges
among its members. Development because every man and
woman should be able to progress in their careers and satisfy
their aspirations and, because Fives’ development relies on that
of its personnel. And diversity, it is our fi rm conviction, at Fives,
that diversity creates wealth.
Fives, a great place to work.*
Working conditions are acclaimed at Fives:
80%
More than
of employees
are satisfi ed or very satisfi ed
with the interest and the varied
aspects of their work.
The survey results regarding
internal relations show a high
degree of satisfaction (91%
are satisfi ed or very satisfi ed
with the relationships
between colleagues),
and the same applies to the
integration of new recruits.
*2007 satisfaction survey
conducted among French employees.
79%
of Fives’ employees
say they are attached to their fi rm.
Two employees out of three
would recommend it to a friend.
Yes
Three people out of four
said “Yes” in answer to
the question : are you satisfi ed
with your work at Fives?

Make sure that all our employees can do their jobs
to the best of their ability, while clearly demonstrating
that we are interested in their future, we are mindful
of their needs and willing to support them.
Paule VIALLON / Head of the Group Human Resources Department
www.fi vesgroup.com
21

HUMAN RESOURCES
“The Human Resources’
mission is to encourage and
support career development.”
So promoting dialogue is your top priority?
P.V. : With the variety of professional fi elds we cover, dialogue
is absolutely fundamental to the Group’s activities. As dialogue
is essential in our daily engineering work, we also apply it to
our human resources policy in all circumstances.
Firstly, there is dialogue with employee representatives and
this has led to several recent agreements on career assessment
and management, gender equality, and forward-planning management
of jobs and skills. Then there is direct dialogue during
annual interviews between each employee and their manager.
These are very important opportunities when opinions and ideas
are exchanged as objectively as possible about each employee’s
contributions and expectations, and during which solutions are
formulated. New recruits also have the chance to express
themselves freely, during their integration review conducted by
a Human Resources representative from another section, with
the aim of assessing the success of their integration, and
discussing their areas of satisfaction and their plans for the
future. Dialogue is not, however, an ultimate goal in itself: it is
the fi rst step and a prerequisite for development, which is the
second point of our policy.
What are the tools to foster development?
P.V. : Frequent dialogue enables us to follow the individual career
path of each employee and, in this way, we are able to respond
in an appropriate manner to their desires for development. The
Human Resources department’s mission is to encourage and
support career development. We have implemented several tools
for this purpose. Our training schemes are organized around the
Fives 2007 Overview
22
main skills required for each profession and customized to foster
individual development. Furthermore, our career management
committees are held annually at each subsidiary, reviewing the
reports on each engineer and executive on the basis of their
annual assessment interview. New ideas are suggested to
speed up and dynamize employees’ career paths, and action
Rewarding jobs
More about integration reviews
The integration review
that every new recruit goes
through after between six
and 18 months work is
conducted with complete
neutrality and confi dentiality
to optimize useful
dialogue. This review provides
recruits with the opportunity
to comment on their period
of integration, to express their
satisfaction and to specify
points that remain to be
dealt with, such as additional
training. This follow-up has
proved to be an excellent
means of gauging and
improving our ability
to welcome and integrate
new employees. These
discussions have confi rmed
the high level of satisfaction
of newcomers and have
pinpointed the main strengths
of the Fives Group: technical
excellence, employee-friendly
structures, a high level of
professional autonomy and
diversity and rapid accession
to decision-making
positions.

plans are proposed, including occupational and management
training, etc. These committees have gradually been extended
to all employees of the Group.
Diversity is the last point of the human resources
policy of Fives. What do you mean by diversity?
P.V. : We have learnt from our international experience that
diversity is synonymous with mutual enrichment. We are determined
to promote gender equality, multicultural diversity, fairness
and equal opportunities, with the aim of both fostering career
“Diversity is synonymous
with mutual enrichment. ”
development and refl ecting the various facets of the society we
live in. The agreement on gender equality signed by the Group
epitomizes our determination to fi ght against all discriminatory
tendencies in this fi eld, and to make all our employees aware of
the problems of discrimination. We also encourage imagination
in career development and well-being at work through personal
fulfi llment. The possibilities of commitment to volunteer and
humanitarian projects (such as the “Planète Urgence” program)
will be pursued and developed on an international level.
Africa
Régis Didelot, automation Project Leader,
took part in a computer training project
in Dakar, Senegal
“My role was to teach a group of nine people, employed
or not, how to use Word and Excel offi ce software so as
to be able to draft letters and gain access to the job market.
They also all wanted to learn how to use the Internet and
have an email address. Their relatively low level of schooling
meant that I had to adapt my teaching methods, for instance
by providing the texts on a memory stick rather than
dictating them. I also had to cope with frequent power cuts
by using my own computer. At the end of the training course,
I set a short test consisting of page layout exercises that
each student had to send me by email. It was very satisfying
to see the progress that had been made by the students,
many of whom had never touched a computer before.
This experience has added to my determination to help
people in diffi culty, particularly in Senegal, a country I was
already familiar with and to which I am extremely attached.”
Actively involved in humanitarian projects
Fives has set in place partnerships with Planète Urgence and Projects Abroad
to enable staff to participate actively in humanitarian projects, help fi ght against
North/South inequalities and contribute to environmental conservation projects.
Based on the principle of co-investment, staff donate their skills and their time,
in the form of leave, to projects fi nanced by Fives. In 2007, 17 volunteers were
involved in projects ranging from professional training and extra school teaching
to environmental conservation.
www.fi vesgroup.com
23

INNOVATION
Innovation
at the service of our customers
How is Fives’ innovation strategy affected
by the specifi c features of its business?
Thierry Valot : Fives designs, manufactures and installs equipment
needed by its customers for their industrial processes. While the
production process is generally defi ned by the customer, who
is the specialist in that fi eld, it is up to Fives’ engineers to analyze
performance criteria in order to develop the most suitable
technical solutions to meet the customer’s requirements. This
means providing technology that is both reliable and effi cient,
and that stands out from the competition by providing more
fl exible and higher quality production, greater energy effi ciency
and easier maintenance of machines at the lowest possible
overall cost per part or tonne produced.
Although most of the industrial processes we are involved in
have existed for more than a century – such as sugar, steel, glass,
cement and aluminium – operating methods are dramatically
The Horomill® has a key role to play in new
cement production techniques with low carbon
emissions.
Fives 2007 Overview
24
and quickly changing due to growing environmental pressure
and changes in our customers’ products (steel is now lighter
and more resistant; cement must have a low CO 2 impact, etc).
Our role is to provide credible responses to these new problems
as quickly as possible. This means foreseeing needs and being
able to provide suitable innovative technologies exactly when
they are needed. The technologies we develop are therefore
crucial for our customers’ innovation.
“
Providing more fl exible
and higher quality production,
greater energy effi ciency…”
An important concept in our fi elds is the “fi rst industrial application”.
Whatever simulations we perform and whatever
scaled-down prototypes we build upstream, the fi nal development
of a new technology always requires input from the end
customer who will utilize it. A key criterion in choosing our
areas of innovation is that one customer is willing and ready to
be the fi rst benefi ciary. This also confi rms that there really is a
potential market! When we have completed the basic research
phases, we generally start looking for a “fi rst customer”. The
Qatalum project perfectly epitomizes this process: we are now
building a green anode workshop using for the fi rst time ever a
Xelios new generation vibrocompactor with the Rhodax®
crushing process in order to produce high density anodes.
What are Fives’ innovation accelerators?
T.V. : Our Group has a strong position in the fi eld of high energyconsuming
industrial processes whose environmental impact is
strictly regulated. The increasing emphasis on the environment in
public opinion and among decision-makers, and the considerable
increase in raw material and energy prices, are powerful driving
forces for technological innovation. The energy effi ciency and
environmental performance of equipment we supply have become
important criteria in our customers’ decisions, and this enables
us to differentiate ourselves from low-cost conventional technologies.
Having decided, long ago, to adopt these objectives

We have to foresee our customers needs in order
to be able to provide suitable innovative technologies
exactly when they are needed.
Thierry VALOT / Head of the Group Innovation Department
www.fi vesgroup.com
25

INNOVATION
as main guidelines for its research and development policy, Fives
is now confi rming its ambition to set itself apart from the
competition, to maintain its technological lead and to position
itself with the most successful solutions available on the market.
Innovation at Fives also addresses other issues: reducing manufacturing
costs by increasing equipment productivity with, for
example, the high-speed tinplate annealing line (800 meter per
minute) developed by Fives DMS and Fives Stein for Baosteel, China’s
premier steelmaker. Improving fi nished products performances,
Fives 2007 Overview
26
Turkey “
Rolling out the Manufacturing
Intelligence system
Fives Stein is implementing new metaheuristic techniques
based on Simulated Reheat algorithms to control the Digit@l
Furnace®, as part of a project currently under way in Turkey.
These techniques will provide the user with greater fl exibility
while optimizing burner operating conditions.
The equipment installed by Fives generally has hundreds
or, even, thousands of sensors providing data in real time
for control purposes. These techniques have recently been
enhanced by Manufacturing Intelligence systems – a range
of software tools using complex metaheuristics and advanced
statistical processing – to optimize the performance, operation
and maintenance of equipment. This type of system collects
readings for thousands of parameters each second (including
power, temperature, fl ow and rotation speed) and provides
a huge database which is then processed and analyzed to
pinpoint deviations, detect any underperformance due to
unexpected effects and adjust equipment control parameters,
etc. Operators and shop supervisors are thus supplied with full
information and, using decision aids, they can quickly take
appropriate actions to get the best out of the installation
and optimize its effi ciency. In time, Fives aims to systematically
include the Manufacturing Intelligence functions in its entire
product range.
cutting down on waste or using cheaper raw materials (alternative
fuels for cement plants), optimizing the operation of installations
and increasing their fl exibility, and providing maintenance
assistance are also strongly considered. These issues are partly
achieved through greater use of automation or of “intelligent”
The energy effi ciency
and environmental performance
of equipment we supply have
become important criteria
in our customers’ decisions.”
processing of operating parameters which has been successfully
tested on several key Fives technologies in orbital grinding and
steel treatment.
TThe
Innovation Department is responsible for the Group’s overall
ppolicy
in this fi eld and harmonizes the steps taken, especially
tthose
adopted on a horizontal basis by the Innovation Group.
TThis
Group is made up of Fives R&D managers who discuss
ccommon
questions (carbon emissions, automation, management
oof
the intellectual property etc.) and identify any possible
ssynergies.
How H do you assess performance of the solutions
proposed p by the Group?
T.V. T : Designing our equipment and validating its performance
implies i using simulation tools that are specifi c to our various
fi fields
of activity. Whenever necessary, we confi rm these simulations’
l results by conducting tests on scaled-down prototypes
or o on pilot systems built in cooperation with the relevant
manufacturers, m
in order to test our innovations in industrial
conditions. c Very recently, we also developed a Manufacturing
Intelligence I system enabling customers to closely monitor
operations o and to guarantee that high performances are reached
in i the long term.

Rhodax®
The Group’s customers are committed to sustained development with an essential priority of protecting
the environment. The quality of the Group’s technology creates value for its customers by improving the performance
of their products and the effi ciency of their installations in terms of energy consumption and environmental impact.
• In the primary aluminum
fi eld, Fives Solios has
developed a range of
technologies for newgeneration
high-amperage
electrolysis pots. Using the
new Xelios vibrocompactor,
combined with Rhodax®
technology and the Amelios
supervision system, operators
can produce high-density
anodes which help to improve
the energy effi ciency of
their installations. As regards
environmental protection,
the new generation of Ozeos
compact fi lters keeps
discharges at very low levels,
in spite of a 40% increase
in the volumes of gas treated.
• In the cement fi eld, the
new Low-NOx precalcining
technology offers cement
manufacturers the possibility
of increasing their production
while reducing NO x emissions
by more than 50%. Thanks
to its staged combustion
concept, the Low-NOx
precalciner avoids the
production of any NO x
and, in many cases, makes
it unnecessary to use urea
injection systems.
Furthermore, combustion
is very effi cient using this
precalciner, enabling plants
to operate more smoothly
and consume less energy.
Ultra Low-NOx precalcining
technology
A challenge: increasing the effi ciency of customers’
installations as regards energy consumption and environmental impact
• In thermal equipment for
the steel and glass industries,
the Group has developed
new furnaces and processing
lines that signifi cantly
reduce energy consumption
and CO 2 and NO x emissions.
In the reheating fi eld, the
introduction of newgeneration
Digit@l Furnace®
spread-fl ame burners
has optimized temperature
homogeneity while
signifi cantly reducing NO x
levels and providing users
with greater fl exibility.
Digit@l Furnace®
• In the energy fi eld, thanks
to their compactness, Fives
Cryogenie’s high-performance
heat exchangers allow a good
exchange coeffi cient which
lowers energy consumption
for the producer.
This equipment is also
the ideal solution for new
applications for the separation
and capture of CO 2.
www.fi vesgroup.com
27

ALUMINIUM
For a project to build a smelter for Sohar Aluminium in the Sultanate
of Oman, Fives Solios successfully installed various shops in 2007
(green anode plant, liquid pitch terminal, gas and fume treatment
centers, casthouse furnaces and related water treatment system).
The operations went very smoothly with no accident
on the construction site.
World leader
for green anode plants
World leader
for gas and fume treatment centers
in the fi elds of high-amperage electrolysis
pots and anode baking furnaces
Fives 2007 Overview
28
• Range of activities
Electrolysis: gas treatment centres on electrolysis pots
and bath processing units.
Carbon: green anode plants, fi ring systems for anode baking
furnaces, anode baking fume treatment centres, pitch fume
ALUMINIUM Despite the drop in the
aluminium cost per tonnes in 2007 and
disturbances caused by announcements
of mergers between the market’s major
players, the primary aluminum sector
remained buoyant. In this context,
Fives Group’s aluminum division, under
its well-known Fives Solios brand, once
more felt the benefi t from its technological
offer targeting the needs of producers
to relocate to countries with attractive
energy prices.
Fives Solios, a major player in designing
one of the world’s biggest aluminium smelters
Qatalum, a consortium between the Norwegian company Hydro
Aluminium AS and Qatar Petroleum, a state-owned company,
plans to build one of the world’s biggest and most productive
aluminium plants, while reducing its environmental impact to
the minimum. These requirements were satisfi ed by the comprehensive
bid submitted by Fives Solios, combining innovative
technologies and environmental protection.
Fives Solios was also awarded turnkey contracts for the construction
of a green anode plant along with pot gas treatment centers.
This high-capacity (60 tonnes per hour) plant will be equipped
with Rhodax® and IMC (Intensive Mixing Cascade) technologies,
along with the new Xelios high-density vibrocompactor. The
treatment centres, carbon butts recycling,
coke and liquid pitch marine terminals.
Casthouse: supplier of comprehensive casthouse solutions
(melting and holding furnaces, heat treatment furnaces).

Iceland
A plant delivered in pre-assembled
modules
For Alcoa, its customer in Fjaardal, Iceland, Fives
Solios took up the massive challenge of delivering
the following equipment by ship: a bath processing
unit, two pot gas treatment centers and four holding
furnaces for the casthouse in the form of pre-assembled
modules in order to cope with the extreme local
working conditions and to ensure compliance
with Iceland’s environmental standards. In 2007,
Fives Solios played an active part, with Bechtel,
in the gradual commissioning of the equipment.
Eolios pitch fume capture system will ensure that atmospheric
emissions are minimal, especially regarding volatile organic
compounds. The four gas treatment centers will be equipped
with Yprios double suction technology to ensure that fl uoride
and dust emissions remain extremely low in any circumstances.
These centers will be supplemented down-stream by sea water
scrubbers for the desulphurization of gases.
Other orders taken in 2008 in the context of this project were
awarded to Fives Solios at the end of the year: eleven holding
and melting furnaces with capacities between 55 and 66 tons
along with the water cooling system for the casthouse, the
fi ring equipment and process control system for anode baking
furnaces (Setaram technology) and the fume treatment center.
Located in the Messaied industrial area in Qatar, the plant’s fi rst
phase will provide a capacity of 585,000 tonnes of aluminium
a year, with two 352-pot lines, based on Hydro Aluminium HAL
275 technology boosted to 300 kA.
Setaram Engineering, a successful integration
Fives Solios won a large order from Rio Tinto Alcan in Tomago,
Australia, for the modernization of anode baking furnaces in
order to implement its thermal control technology for the
anode baking furnaces required to produce primary aluminium.
These technologies developed by Setaram Engineering, acquired
by the Group at the end of 2006, offer the advantages of minimizing
atmospheric emissions and energy consumption while
making installations even safer.
Fives Solios, a strong position
in the high-amperage electrolysis sector
On the strength of its leadership in gas treatment for high-amperage
pots, Fives Solios achieved some fi ne performances on the
Russian market and will supply two sets of four electrolysis pot
gas treatment centers for a total capacity of 1,250 kilo-tonnes
of aluminium a year, one for Rusal and the other for Hydro-Rusal.
Fives Solios was also chosen by Rio Tinto Alcan to install a latestgeneration
Ozeos fi lter on a fi rst series of AP-50 technology
pots at Arvida in Canada.
Key references
• Qatalum (Qatar) 2007-2009:
turnkey supply of green anode
plant, pot gas treatment centres,
an anode baking fume treatment
centre, melting and holding
furnaces for the casthouse with
water cooling system, a heating
and regulating system for anode
baking furnaces and the liquid
pitch marine terminal.
• Alcan Sohar Aluminium (Oman)
2006-2008: turnkey supply
of a green anode plant, 2 pot gas
treatment centres, an anode baking
fume treatment centre, 4 melting
and holding furnaces for the
casthouse with water cooling
system, and the liquid pitch marine
terminal.
• Alcoa Fjardaal (Iceland)
2005-2007: supply of the bath
processing unit, 2 gas treatment
centres and 4 holding furnaces
for the casthouse.
• Alba (Bahrain) 2003-2005:
supply of the green anode plant,
the carbon butts recycling unit,
2 gas treatment centres and
the fume treatment centre for
the extension of line No.5; supply
of a total of 11 furnaces for
casthouse No.3 and the extension
of casthouse No.2.
• Aluminerie Alouette (Canada)
2003-2004: phase II, supply
of the fume treatment centre
for the new anode baking furnace,
3 gas treatment centres and
the pitch fume treatment system
for the green anode plant.
www.fi vesgroup.com
29

STEEL/GLASS
Fives DMS secured provisional acceptance for three 20-roll
rolling mills from Chinese steel manufacturers WISCO and TISCO.
These references confi rm Fives DMS’s position as world market
leader in the rolling of silicon steel.
World leader for furnaces
and cooling systems for large-capacity treatment lines
and turnkey Mini-lines®, for fl at and carbon steel
Joint world leader for heating furnaces
for fl at and long carbon steel products and fl at
stainless steel products
World leader for treatment
lines, reversible rolling mills and “Skin pass” rolling
mills, for stainless steel strips
Fives 2007 Overview
30
• Range of activities: steel
Thermal equipment for steel: reheating furnaces for hot-rolled
fl at products and long products (Digit@l Furnace®), heat treatment
furnaces for steel products, furnaces for galvanizing lines, steel strip
annealing lines, and organic coating lines (Digital vertical furnace,
Flash Cooling®).
Combined galvanazing and painting lines and turnkey Mini-lines®.
STEEL World steel production increased
by nearly 7.5% in 2007 compared
with 2006 and reached a record level
of over 1,343 million tonnes. This very
favorable market context – mainly due
to investments in Asia, and particularly
China – enabled the Group’s well-known
Fives Stein and Fives DMS brands to
continue to maintain a high level of sales
activity and achieve an extremely good
year in terms of order intake and sales.
Fives, a leading supplier to Baosteel in China
Baosteel, China’s premier steel manufacturer, awarded Fives
with two new orders, bringing to fi ve the number of major
contracts signed with this customer, in less than three years.
The fi rst one was for the supply of all the mechanical and thermal
equipment for the Meishan plant’s tinplate annealing line, similar
to the order contracted for the Yichang plant in 2005. The second
was for a galvanizing line to produce new, very high yield
strength steel for the automotive industry and for a ZR21 type
rolling mill at the Shanghai no.1 plant.
Cold rolling: Fives DMS confi rms its technological
leadership
Fives DMS obtained several signifi cant orders from long-standing
Chinese and North-American customers, confi rming its technological
leadership in the cold rolling segment for stainless
Mechanical lines and steel production lines: reversible cold
rolling mills, “Skin pass” rolling mills, steel strip treatment
lines and welded tube lines.
Induction heating: induction heating, power electronics
and industrial cooling.

steel. Baosteel’s order for a ZR21 rolling mill was followed by
an order from Tisco for the same type of mill for the rolling of
extra-wide stainless steel strips, and orders from Arcelor and
ThyssenKrupp Mexinox to modernize existing rolling mills.
At the end of the year, Fives DMS was also chosen by Thyssen-
Krupp, in the USA, to supply three rolling mills and a “skin-pass”
mill for its new integrated plant in Alabama.
Hot rolling: Digit@l Furnace® chosen by steelmakers
worldwide
Low energy consumption, environment friendliness and the
obtained quality of the reheated products allowed Fives Stein
to sell some ten Digit@l Furnace® walking beam furnaces in
India, Turkey, Spain, Russia and Brazil, and the commissioning
of installations all over the world.
Glass: robust sales activity throughout the world
In the glass industry, where the Group offers a comprehensive
technological range, two orders for hot-end construction projects
with capacities of 250 and 550 tonnes a day were signed in
• Range of activities: glass
Thermal equipment and complete assemblies
for the production of fl oat glass, fl at glass,
hollow glass, fi ber glass and special glass.
India
The Indian market chooses Fives Stein reheating furnaces
Fives Stein obtained seven orders for walking beam furnaces equipped with Digit@l Furnace®
technology in India within two years. These orders confi rm the Indian market’s interest
in Fives Stein technologies and further testify to the success of Digit@l Furnace®.
Jindal Steel & Power Ltd, one of the largest Indian steelmakers, selected Fives Stein to build three
furnaces in Orissa. The fi rst of these furnaces, with a capacity of 280 t/h, was for a sheet metal
mill and the two others, with capacities of 200 t/h and 160 t/h, were for a bar mill and a wire
rod mill respectively.
The Essar group chose Fives Stein to construct two 250 t/h furnaces for a heavy plate mill and a
200 t/h furnace at Visakhapatnam Steel for a wire rod mill. At the same time, steelmaker Welspun
Gujarat Stahl Rohren Ltd ordered two 200 t/h furnaces to reheat slabs for its Anjar plant.
Russia and India. In addition to bringing six new lehrs into
service in China, Algeria, Mexico, the USA and South Africa,
Fives Stein started up two fume treatment centers for Saint-
Gobain in France and Spain, in 2007. This equipment, based on
proprietary technologies, confi rmed its effectiveness in total
compliance with European environmental standards.
Key references
• Baosteel (China) 2007: order
for two lines (tinplate continuous
annealing and galvanizing lines) and
one rolling mill for stainless steel.
• Otokumpu (Finland) 2007:
mechanicals equipments
for a stainless steel annealing
and pickling line.
• Tisco (China) 2005-2007: supply
of the “Jumbo Line”, the world’s
largest stainless steel annealing
and pickling line with a capacity
of 1,150,000 t/year.
• ThyssenKrupp (USA) 2007:
order of 3 rolling mills and one
“Skin pass”.
• Magnitogorsk (Russia) 2006:
supply of a large-capacity Digit@l
Furnace® (425 t/hr).
• Severstal (Russia), CST (Brazil),
Celsa (Spain), Colakoglu (Turkey),
Welspun and Jindal Steel
& Power Ltd. (India): order
for Digit@l reheating furnaces.
World leader for melting,
conditioning and forming of glass.
www.fi vesgroup.com
31

AUTOMOTIVE AND LOGISTICS
Confi rming its technological lead in the fi eld of sheet metal routing,
Fives Cinetic commissioned its very latest machining cell at EADS
Socata, in Tarbes (France), enabling this customer to produce more
than a million parts a year. This cell combines the DHP 1250 routing
machine equipped with a high-capacity electric spindle, two loading
and unloading stations and a fully automated transfer robot.
World leader
for automated sorting systems
World leader
for orbital and double disc grinding machines
No.2 worldwide
for fl uid fi lling equipment
Fives 2007 Overview
32
AUTOMOTIVE AND LOGISTICS
Despite diffi cult market conditions
in the automotive sector, Fives Cinetic
continued to expand its business in 2007
by seizing opportunities in new markets
such as aeronautics and energy, where
the technological solutions developed
for the automotive industry have found
other applications. The situation was more
favorable in the logistics market, with the
main players renovating their installations
to cope with increasingly complex fl ow
management requirements.
Uncontested leader in grinding
In 2007, Fives Cinetic confi rmed its position as the technological
leader in the grinding sector, notably by winning a big order
from Chrysler for the supply of grinding machines to equip two
new engine assembly lines, one in Trenton, Michigan, USA, and
the other in Saltillo, Mexico. At the same time, Fives Cinetic was
chosen by Ford, in Mexico, to manufacture some 10 machinetools
for the machining of its newly developed diesel engine.
Thanks to the research center of its Cinetic Landis subsidiary,
the Group was also successful in bids for innovative projects
requiring the development of specifi c machines, such as large
grinding machines for ship engine crankshafts and generators.
• Range of activities
High production automated mechanical
systems for machining, foundry, assembly and industrial
process integration.
Automated handling systems: installation of high-speed
sorting equipment, palletisation, conveying systems for
production lines…

Canada
Fives Cinetic confi rms its position as top
supplier of sorting systems
Contributing to the design of Canada’s largest mail
sorting center, Fives Cinetic designed and installed
the center’s parcel processing system featuring its
latest developments and making Purolator Courier Ltd
the country’s most effi cient mail sorting center.
This mail processing center is also equipped with
an automated sorting system with a capacity
of 24,000 items per hour featuring two SBIR MD-W
type high-speed parcel sorters developed by Cinetic
Sorting.
The success of these developments was also confi rmed by a new
order from a worldclass crankshaft manufacturer for four grinding
machines of the same type.
General Motors renews its confi dence
in Fives Cinetic
In the USA, General Motors chose Fives Cinetic to supply assembly
lines for all its new engine production lines. This new order
confi rms this manufacturer’s confi dence in Fives Cinetic’s teams
and technologies, as it follows a three-year contract signed in
2006 for the supply of fl uid fi lling equipment for all General
Motors plants.
Mechanization: skills recognized
by industrial players
Fives Cinetic’s expertise in mechanization, especially the automation
of production lines, has enabled it to win market shares
in fi elds such as the energy sector. These skills, combined with
Fives Celes’s expertise in induction technology, led, among others,
to the development of a tube end and sleeve hot coating system,
ordered by Vallourec and Sumitomo for their plants in Scotland
and Japan, respectively.
Automated sorting systems: Fives strengthens
its position with the acquisition of Sandvik
Sorting Systems activities
A 2007 highlight was the Group’s strengthening of its position
in the logistics fi eld through the acquisition at the end of June
of high-speed parcel sorting operations, from the Swedish
Sandvik group, in Italy, the USA and Japan. This acquisition has
made Fives Cinetic the world leader in the sorting centers segment
for postal and courier services. The long-established French
subsidiary and the newly acquired Italian subsidiary joined forces
to obtain an important commercial success with a fi rst signifi cant
order from Coliposte for the installation of an automated sorting
system at its Melun site in France. In the fall, Fives Cinetic obtained
two other important orders, one from Michelin for two
palletizing robots for a site in Poland and the other from Purolator
in the context of its modernization project for a sorting
center in Vancouver, Canada.
Key references
• A worldclass crankshaft
manufacturer (Germany) 2007:
grinding machines for ship engine
crankshafts.
• DACIA (Romania) 2007: conveyors
for the fi nal assembly shop.
• La Poste (France) 2006-2010:
signing of a three-year contract for
the supply of sorting and conveying
systems for all the future postal
platforms.
• Chang’An Ford Mazda (China)
2006: complete grinding system
for the machining of new crankshats
and camshafts (12 orbital grinders).
• General Motors 2006-2009:
a three-year contract to supply
fl uid fi lling equipment for all its
plants worldwide. / (USA) 2007:
HOV6 engine assembly lines.
• Caterpillar (France) 2007:
refurbishment of 2 machining centres.
(USA) 2006: grinding machines
for engine parts of generators.
• PSA (Slovakia) 2004-2006:
design and construction of the
fi nal assembly line and the supply
of fl uid fi lling and leak testing
equipment at the Trnava plant.
• Purolator Courier (Canada) 2007:
automated sorting system with
a capacity of 24,000 items/hour.
• Vallourec/Sumitomo Fin Tech
(Scotland and Japan) 2007: tube
end and sleeve hot coating system.
www.fi vesgroup.com
33

CEMENT
2007 highlight for Fives FCB was the simultaneous construction
of three cement plants of which two units for QNCC in Qatar.
A 4,000 t/day production line was accepted in April while the last
plant, with a capacity of 5,000 t/day, is currently being built.
World’s No.1
for combustion systems
World’s No.4 for cement plants,
grinding plants and process equipment for the cement
and mineral industries
Fives 2007 Overview
34
• Range of activities
Turnkey cement plants.
Grinding plants and process equipment for the cement
industry and mineral grinding (kilns, ball mills, Horomill®,
Rhodax®, Low-NOx precalciner, TSVTM classifi ers, etc.).
Clean combustion engineering and systems for rotary
kilns for calcining and drying.
Dust collection equipment for kilns, coolers and grinders.
CEMENT Growth of the cement sector
has enjoyed a further boost in 2007 as
the cement production market expanded
worldwide due to strong demand from
developing countries. All the major
cement producers launched ambitious
investment programs. In this context,
in 2007, the Group confi rmed its solid
competitive positioning in the cement
and ore market with a very high
order intake.
Fives FCB chosen for the future production line of
cement manufacturers Lafarge and Titan in Egypt
On the strength of its work in the last few years, Fives FCB won
an order in the second half of the year from a joint venture
between the world leader, Lafarge, and Titan, the leading Greek
cement manufacturer. The aim is to construct a turnkey
cement plant with a capacity of 4,000 tonnes a day, along with
a 170 tonnes per hour cement grinding plant, at Beni Suef,
120 km from Cairo in Egypt.
The contract includes some modifi cations to the fi rst cement
production line, as well as Fives FCB designed optimized equipment
to comply with energy consumption and environmental
protection criteria. The second production line will be commissioned
at the end of 2009.
Horomill®, TSV TM : Proprietary equipment is a hit
with customers
In 2007, the Group exceeded the fi gure of 50 Horomill® grinding
mills sold worldwide. The most recent references are two Twin
Horomill® grinding units in China (Rizhao), two others in India
and an order of three Horomill® grinding mills from Cementos
Moctezuma in Mexico for its Veracruz plant. These references
helped strengthen Fives FCB’s leadership in the high value
added grinding sector. Having already made its name in raw
and clinker grinding, this equipment demonstrated its high
performance in the grinding of blast furnace slag. Thanks to this

versatility, the Horomill® has a key role to play in new cement
production techniques with low carbon emissions.
Another highlight was the big increase in orders for proprietary
equipment, such as the third-generation TSV TM classifi er
chosen, for example, by the Cemex group and its subsidiary,
Assiut Cement Company, for the modernization of one of its
grinding plants in Egypt.
Gas treatment: Fives Solios technologies win
recognition in North America
The TGT fi lter technology developed by Fives Solios, ideal for
the treatment of large gas discharge fl ows from modern highcapacity
furnaces and vertical grinding mills, continues to be a
big success with leading manufacturers.
In 2007 in addition to taking orders from Graymont in Utah for
two TGT fi lters for lime kilns and Polysius at its TXI plant in
Texas for a series of fi lters for a cement grinding shop, Fives
Solios delivered four TGT fi lters for two clinker kilns and cooler
vents at the Cemex plant in Texas.
Combustion: a sector that remains active,
especially in China
Fives Pillard’s combustion system technologies are sought
after all over the world and, this year, especially in China where
numerous orders were obtained for Rotafl am® type burners from
the Sinoma group, the country’s leading cement producer, and
from Baosteel for lime kiln burners.
Closely monitoring the needs of the cement market, Fives Pillard
is constantly developing new combustion systems enabling its
customers to combine high-quality cement production and
the increased use of solid alternative fuels. The operation of
new Fives Pillard burners in one of the Holcim group’s cement
plants in Germany resulted in the production of better quality
clinker while using increasing quantities of fuels such as fl uff.
Key references
The
Americas
Fives FCB confi rms its position
as a top supplier
Fives FCB consolidated its presence in America
by winning a new contract with Holcim Apasco
in Mexico. It had already supplied a turnkey cement
plant and several Horomill® grinding mills in
Mexico, a cement production line in Costa Rica
and two grinding plants in Panama and Honduras
for prestigious customers such as Lafarge, Cemex,
Cementos Moctezuma and Holcim.
Coming into effect at the beginning of 2008,
the new order is for the construction of a complete
greenfi eld cement plant with a capacity of 3,500
tonnes a day. This plant is scheduled to come
into service in early 2010. The new plant will feature
the latest technologies developed by Fives FCB to
reduce the whole installation’s energy consumption
and NO x emissions.
• Qatar National Cement
Company (Qatar) 1995-2007:
turnkey supply of Umm Bab
production lines No.2, 3
and 4 including one of 5,000 t/d.
• Lafarge (Mexico) 2004-2006:
supply and construction
of a turnkey cement plant with
a capacity of 1,500 t/d at Tula.
• Holcim APASCO (Mexico)
2007-2009 and Holcim (Costa
Rica) 2002-2004: supply
of 2 production lines
of 3,500 t/d and 3,000 t/d.
• Beni Suef Cement Company
(Egypt) 2007-2009: turnkey supply
of a cement plant with a capacity
of 4,000 t/d, including a 170t/h
grinding plant.
• Vinaincon (Vietnam) 2005-2007:
supply of a 4,000 t/d cement plant
at Thai Nguyen.
• Cemex (Panama) 2006: turnkey
supply of a cement grinding plant
equipped with a Horomill® 3,800
grinding unit.
• Cementos Moctezuma (Mexico):
13 Horomill® grinding mills
of which 10 in operation to date.
www.fi vesgroup.com
35

ENERGY
Fives Cryogenie has been chosen by Air liquide in China
for its project to build two air separation units to supply oxygen,
nitrogen and argon to Shagang’s steel works at Zhanjiagang.
No.3 worldwide
for aluminium plate fi n heat exchangers
No.2 in Europe
for cryogenic pumps
European joint leader
for high-pressure pipes and pipes designed
for nuclear and conventional power plants
Fives 2007 Overview
36
• Range of activities
Industrial equipment mainly for energy production:
Piping systems (new construction and refurbishment).
Brazed aluminium heat exchangers (for air separation units, ethylene
production and natural gas liquefaction).
ENERGY This market’s dynamism
was fueled by the continuing growth
of China’s energy demands, the structural
escalation of oil prices, and Western
countries’ resumption of their conventional
and nuclear power plant construction
programs. In this context, sales activity
of the Group was robust in the both heat
exchangers and cryogenic pump activities
as well as in high-pressure piping mainly
designed for nuclear or conventional power
plants and the petrochemical industry.
Fives Nordon, the key supplier
of the nuclear industry
On the basis of its strong experience and qualifi cations in nuclear
construction, Fives Nordon won two major orders in 2007 for
the supply of HP pipes: the fi rst from Alstom for the new EPR
nuclear reactor at Flamanville, France and the second from Areva
and ETC (a joint venture formed by Areva and Urenco), in the
Georges Besse II project of the uranium enrichment facilities in
Tricastin, France. This project features a centrifuge uranium
enrichment process that will consume 30 times less electricity
than the gaseous diffusion process used on the existing site.
In China, after partnering CNPEC in 2006 for its Lingao and
Qinshan plants, Fives Nordon obtained an order to supply
RCC-M class carbon steel pipes for six new nuclear plant units
in Dalian and Fujian.
Cryogenic pumps.
Combustion systems for the production of electrical
and thermal energy.

As the market leader in compensators and spiral seamed tubes,
Fives Nordon also signed a three-year framework contract in
2007 to supply Areva’s T&D division with this equipment.
Fives Cryogenie pursues its breakthrough in the
natural gas reliquefaction market
Having already supplied Hamworthy KSE with some 20 cold boxes
for the recondensation of LNG vapors during transportation in
LNG tankers, Fives Cryogenie won a further order for eleven
cold boxes from the same customer. These latest references
confi rm the promising prospects this new LNG transport market
offers Fives Cryogenie,
Fives Cryogenie rolls out its know-how in China
Fives Cryogenie started work on the construction of a standard
heat exchanger manufacturing plant in China at the end of
2007 to meet the requirements of its customers including Air
Liquide, which this summer unveiled a €10 billion investment
plan for the 2007–2011 period with the aim of accelerating its
growth and doubling its size within fi ve years. The new plant
should produce its fi rst heat exchangers by the end of the fi rst
semester of 2009.
France
Fives Nordon recruiting
To deal with the considerable growth of its activity,
Fives Nordon hires an average of 100 additional
personnel a year in France. In addition to management
positions on construction sites and in design offi ces
(i.e. design engineers, draftsmen, etc.), Fives Nordon
offers complete specialized training in its dedicated
center to qualify new employees for jobs as welders
and pipe fi tters.
Key references
• Hamworthy KSE – Qatargas
2005-2008: 31 cold boxes
and 26 cryogenic pumps for
the reliquefaction of liquid natural
gas vapours during transport.
• Areva/ETC, Georges Besse II
project (France): prefabrication
and erection of process and
auxiliary piping for centrifuge
enrichment.
• Alstom, EPR Flamanville (France)
2006-2007: design, procurement
and prefabrication of HP pipes.
• CNPEC, nuclear power plants
(China) 2006-2007: procurement
of RCC-M class carbon steel pipes.
• Framatone Olkiluoto (Finland):
prefabrication of primary coolant
piping systems and surge line
for the EPR reactor.
• Air Liquide: supply of exchangers
and pumps in China, Mongolia and
South Korea.
www.fi vesgroup.com
37

SUGAR
Bogazliyan in Turkey: new technological showcase
for Fives Group beet sugar plants.
World’s No.1
for crystallization process (Continuous Vacuum Pans)
World’s No.1
in cane extraction processes
(In Line Shredders, Diffusers, MillMax®)
for the sugar and bioethanol industries
Fives 2007 Overview
38
SUGAR In spite of a large drop in world
sugar prices, due to very signifi cant increase
in production that compensated for the
shortfall in production in the last two years,
many investment projects were in progress
in 2007. Among the most dynamic markets
were Russia, India and Brazil, the latter
having a signifi cant potential considering its
commitment to biofuel development.
Bogazliyan: the worldwide reference
for beet sugar plants
A highlight of 2007 was the fi nal acceptance of the Bogazliyan
beet sugar plant in Turkey by the Kayseri Seker group. Built in
17 months, a record time, this turnkey plant quickly reached a
nominal daily capacity of more than 10,000 tonnes of beet.
Incorporating the most advanced Fives Cail technologies, this
plant is notable for its highly effi cient thermal performance
and is one of the most modern and highly automated plants ever
built in the world. Bogazliyan is the new worldwide reference in
the fi eld of beet sugar plants and is an excellent showcase for
Fives Cail technologies.
• Range of activities
Design and supply of process equipment
and turnkey assembly for the cane and beet sugar
and bioethanol industries.

Brazil
Manufacturers overwhelmingly choose the
revolutionary MillMax® milling technology
Having already installed more than 1,000 mills throughout
the world, Fives Cail recently developed and patented
its new MillMax® milling technology, which offers major
advantages, especially big savings in investment and
operating costs, notably by offering a 30% reduction in
energy consumption compared with conventional milling
technologies. The true originality of this revolutionary
technology lies in its simplifi ed design based on the use
of two press rollers and a completely unique device limiting
the reabsorption of juice (CAP®).
Thanks to its technological lead, Fives Cail won numerous
contracts in 2007 in the Brazilian market, thus securing
the success of MillMax® .
International sugar market: Fives Cail strengthens
its technological lead
The Division’s recent technological developments helped secure
major sales successes in the most signifi cant markets in 2007.
The ZUKA® centrifugal confi rmed its unrivaled performance of
30 cycles per hour with low energy consumption and is attracting
interest from the beet and cane markets and from refi neries.
The In Line Shredder, using a single-step process optimizing the
preparation of cane before extraction, and the MillMax®, the
latest and unique cane extraction concept, underscored the
Group’s strong position in the cane milling fi eld. Continuous
vacuum pans based on Fives Cail technology, a worldwide reference
in the crystallization fi eld, and falling fi lm evaporation
technology which has made a major contribution to optimizing
energy effi ciency of sugar plants continue to be prized by
manufacturers worldwide.
Sales to customers including Cosan, Guarani and Santa Elisa
in Brazil, Tongaat-Hulett in South Africa, Prodimex in Russia and
Mitr Phol in China, confi rm the relevance of these technological
developments which have earned Fives Cail an excellent reputation.
Bioethanol: Fives Cail takes up position
in a vibrant market
With many fi rm commitments to the development of biofuels,
especially in Brazil where the Cosan group, a national leader in
ethanol and sugar, announced a USD 1.7 billion investment plan
for the construction of new plants, Fives Cail has a very strong
position in cane preparation thanks to its unique expertise.
Recognized on all sugar markets, especially in South-East Asia,
Central America and Brazil, where its technologies are highly
prized, Fives Cail continues to pursue its objective of further
development in the fi eld of distilleries.
Key references
• Kayseri Seker (Turkey)
2006-2007: turnkey contract, as
part of a consortium, for the supply
of equipment for a 10,000 t/d
beet sugar plant, from refi ning
to packaging of the sugar.
• CNTIC for Guysuco (Guyana):
Skeldon II contract covering the
supply of a diffuser, 3 continuous
vacuum pans, 2 vertical crystallisers
and a massecuite reheater.
• SUDS (Mauritius), Cosan,
Guarani, Santa Elisa (Brazil),
Jeypore Sugar, Rashree Sugars
& Chemicals and EID Parry (India),
Mitr Phol (China), Tongaat Hulett
(South Africa), Prodimex (Russia):
supply of process equipments.
• Crystallisation: More than
100 units installed throughout
the world since 2000.
www.fi vesgroup.com
39

www.fi vesgroup.com
Fives 2007 Overview
40

Financial report
42 Group activity
58 Mastering technology and sustainable development
60 Corporate governance
66 Financial and legal information
2007 consolidated financial statements
70 Consolidated balance sheet
72 Consolidated profit and loss statement
73 Consolidated cash flow statement
74 Notes to the consolidated financial statements
106 Auditors’ report on the consolidated financial statements
Ordinary and Extraordinary General Meetings
of Shareholders of June 19, 2008
108 Draft resolutions
www.fivesgroup.com
41

Group activity
Report of the Executive Board to the Ordinary
General Meeting on June 19, 2008
FIVES GROUP:
ORDER INTAKE AND CLOSING ORDER BOOK
€ millions 2005 2006 2007
Order intake
Order book
953.2 1,206.6 1,503.0
at December 31 814.4 988.6 1,401.8
FIVES GROUP: SALES
€ millions 2005 2006 2007
Sales 914.3 1,024.9 1,137.3
Fives 2007 Annual report
42
1. GROUP OPERATIONS IN 2007
2007 was an excellent year for the Group with significant increases
in sales and earnings thanks to strong organic growth. In terms
of external growth, 2007 featured the acquisition on June 29 of
the Swedish group Sandvik’s logistics activities.
In addition to Cinetic Service Slovakia s.r.o. (in automotive) and
Fives Cail KCP Ltd (in sugar), consolidated as of January 1, 2007
in the context of the Group’s organic growth, the consolidation
scope includes, as of July 1, 2007, the three companies acquired
from Sandvik, renamed Cinetic Sorting S.p.a. (Italy), Cinetic
Sorting Corp. (United States) and Cinetic Sorting K.K. (Japan).
1.1 Trading conditions
Order intake crossed the €1.5 billion threshold in 2007. At constant
scope, i.e. excluding the newly consolidated businesses (Cinetic
Sorting, Fives Cail KCP Ltd and Cinetic Service Slovakia s.r.o.),
Fives set a new record with order intake of €1,470 million,
nearly 22% more than in 2006 which had already been a record
year with €1,207 million.
The Group’s performance in 2007 stemmed primarily from the
commercial successes achieved in the aluminium sector, with
the signing in the second half of the year of an exceptional order
for key process workshops for an aluminium smelter under
construction in Qatar. It also reflects the significant number of
orders won in the steel sector and in the glass sector as well as a
steadily growing contribution from the energy sector.

Metals
As expected, the Group’s metals activity (steel and aluminium)
benefited from renewed investment in the primary aluminium
sector. Order intake in the aluminium sector doubled compared
with 2006 thanks to a major contract obtained in Qatar.
Economic growth in China, which continued to increase its steel
production capacities, and the resumption of some significant
investments in glass boosted new orders in these markets.
Against this backdrop, the Group confirmed its position as a
benchmark supplier to the Chinese steel company, Baosteel, by
winning two substantial contracts for the supply of a tinplate
annealing line and a hot galvanizing line integrating all the
mechanical and thermal equipment offered by the Group.
Automotive/Logistics
The automotive activity continued to be severely affected by
depressed market conditions in both Europe and North America.
Conditions were, however, more favorable for the logistics activity
as most of the leading players are thoroughly remodeling their
plants in order to manage more complex and increasing flows. All
in all, Fives showed firm resistance, posting an increase in order
intake at constant scope and exchange rates compared with 2006
thanks to a solid offer of machining equipment, notably Cinetic Landis
grinding machines, and marketing successes in logistics and in new
markets where the technological solutions developed for the
automotive industry have found other applications.
Energy
Business was particularly robust in heat exchangers and cryogenic
pumps (used in the process of separating and liquefying gas and
in ethylene production) and high-pressure piping (mainly for
nuclear and conventional power plants and for the petrochemical
industry). Market conditions remained dynamic, boosted by
China’s growing energy needs, the structural rise in oil prices and
renewed investment in industrialized countries in the construction
and renovation of traditional and nuclear power plants. In France,
the Group won several orders as part of two major projects, the
first relating to the new nuclear reactor (EPR) being built by
Alstom at Flamanville, and the other involving Areva’s extension
of the Georges Besse II uranium enrichment plant.
Cement
Boosted by growth in emerging countries, the Group confirmed
its strong competitive positioning in the cement and minerals
market in 2007, with order intake remaining high. The highlights
of the year included an order for a turnkey plant with a capacity
of 4,000 tonnes per day for the Lafarge-Titan joint venture in
Egypt and the growing proportion of orders for proprietary
equipment, notably Horomill® grinding mills and Fives Pillard
combustion systems.
By geographic area, 2007 again featured a very high volume of
business from the Middle East thanks to the contracts obtained
in Qatar in aluminium and in Egypt in cement. As in 2006, Asia
and France were contenders for second place, each accounting for
one fifth of new orders. France’s contribution was primarily due
to the orders taken in energy for the Flamanville EPR and the
Georges Besse II uranium enrichment plant. Order intake from
Asia concerned mainly the steel sector, with a very significant
share of orders from China and a growing number from India.
The remaining orders were divided among the other European
countries and North America, with a large proportion of European
orders linked to renewed investment in Russia, notably in the
metals and glass sectors.
Sales increased significantly in 2007, up by 11% to €1,137.3
million. Sales grew by 7% at constant scope, i.e. excluding the
newly consolidated activities, and exchange rates.
As in 2006, the metals and automotive divisions made the largest
contributions to sales, together accounting for nearly 63% of Group
sales. However, their relative weight declined slightly in favor of
the energy division, which continues to grow. By geographic region,
Asia, in keeping with its record opening order book, accounted
for one quarter of sales, thereby qualifying as the Group’s leading
geographic market for the fourth consecutive year.
Fives began 2008 with a record opening order book of €1.4 billion,
providing an excellent outlook for sales in the present year.
www.fivesgroup.com
43

Group activity
ORDER INTAKE BY END MARKET
€ millions 2005 2006 2007
Automotive/Logistics 195.6 299.5 339.5
Cement 128.4 268.1 230.4
Energy 195.8 213.7 289.9
Metals (aluminium and steel) 434.0 426.2 646.4
Eliminated on consolidation (0.6) (0.9) (3.2)
TOTAL 953.2 1,206.6 1,503.0
ORDER INTAKE BY GEOGRAPHIC AREA
€ millions 2005 2006 2007
Africa and the Middle East 105.0 351.0 459.7
France 236.9 242.6 308.9
Asia and Oceania 308.0 251.3 295.9
Europe (excluding France) 191.9 176.5 241.0
The Americas 111.4 185.2 197.5
TOTAL 953.2 1,206.6 1,503.0
SALES BY END MARKET
€ millions 2005 2006 2007
Automotive/Logistics 219.0 311.4 315.6
Cement 188.9 157.3 196.2
Energy 146.1 177.7 226.7
Metals (aluminium and steel) 361.0 379.1 400.2
Eliminated on consolidation (0.7) (0.6) (1.4)
TOTAL 914.3 1,024.9 1,137.3
Fives 2007 Annual report
44
1.2 Highlights
The Group achieved an exceptional performance in 2007, mainly
through organic growth, thanks to its international scope and to an
innovative and efficient technical offer.To further its development,
the Group has:
implemented a significant recruitment program in 2007 and
stepped up its efforts in terms of research and development. It
has also reinforced its corporate image by adopting the Fives brand
for each of its businesses and using a common visual identity;
rounded out its logistics offer through the acquisition in June
of Sandvik Sorting Systems, one of the world leaders in automated
sorting systems, from the Swedish group Sandvik. It also strengthened
its aluminium activity by integrating the staff of Setaram
Engineering, acquired at the end of 2006;
extended its international scope by opening three new offices,
in Japan, Turkey and India. Lastly, it added to its operating resources
in China by buying out its Chinese partner in the joint venture
created in 1999 and now renamed Stein (Shanghai) Industrial
Furnace Co. Ltd, and by starting construction of a new factory for
manufacturing standard cryogenic heat exchangers.
Continuing expansion
In aluminium, the Group integrated the staff from Setaram
Engineering, acquired at the end of 2006. Specialized in the design
and supply of heat control systems for green anode baking furnaces,
this team brings the Group some key technological skills in the
carbon sector. Fives Solios was thus able to win two significant
orders, one from Rio Tinto Alcan in Tomago (Australia) to modernize
its anode baking furnaces and the other for the new aluminium
plant being built by Hydro Aluminium in Qatar. This second
order will enable the Group to equip the baking furnaces with a
comprehensive and coherent system that optimizes furnace
management and pitch fume treatment so as to minimize emissions
and energy consumption, while reinforcing the safety of
the installations. At the same time, Fives Solios successfully

ought into service the new furnace control systems at Lanzhou
(China) and Almahdi (Iran) and continued to develop Helios, a
regulation technology based on measurement of carbon
monoxide, implemented in the regulation system of the ovens
delivered to Rio Tinto Alcan at Saint-Jean-de-Maurienne (France)
and adopted by Hydro Aluminium in Qatar.
On June 29, 2007, Fives completed the acquisition of the Sandvik
Sorting Systems subgroup from the Swedish company Sandvik.
This subgroup is made up of three subsidiaries located respectively
in Italy, the United States and Japan.This subgroup has been
renamed Cinetic Sorting and, with a total headcount of around
300 people, is an ideal addition to Fives Cinetic’s offer in the
design and supply of automated “high speed” sorting systems
and equipment. Cinetic Sorting is the leading supplier of parcel
sorting systems for postal and courier companies.With operating
profit of €4.5 million on annual sales of around €85 million, this
acquisition also provides an opening for the Group in Japan.
After setting up a representative office in Japan at the beginning
of 2007 to track technology and market developments there, Fives
continued to extend its international reach by opening two new
sales offices at the beginning of 2008, one in Istanbul (Turkey)
and the other in Chennai (India). As well as providing good
access to fast growing markets where it already has outstanding
references, the Group intends to use Fives Turkey as a basis for
concluding partnerships with local subcontractors in neighboring or
regional markets and to equip Fives India with its own competence
in terms of project completion, thereby improving its penetration
of the Indian market and its competitive edge.
Fives also entered a new phase in China in 2007 by starting procedures
with the local authorities with a view to creating a plant
for manufacturing brazed aluminium cryogenic exchangers near
Shanghai.This new facility will respond to customer demand and
strengthen Fives Cryo’s range of services and competitive position.
In 2009 it will be the first exchanger manufacturer combining
Western know-how and a Chinese production base.
SALES BY GEOGRAPHIC AREA
€ millions 2005 2006 2007
Africa and the Middle East 167.7 157.4 226.1
France 217.9 228.5 244.9
Asia and Oceania 234.6 276.8 286.1
Europe (excluding France) 139.5 182.3 207.1
The Americas 154.6 179.9 173.1
TOTAL 914.3 1,024.9 1,137.3
ORDER BOOK BY END MARKET
€ millions Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Automotive/Logistics 147.2 130.5 190.4
Cement 172.3 283.0 313.9
Energy 114.0 150.1 226.6
Metals (aluminium and steel) 381.0 425.5 672.9
Eliminated on consolidation (0.1) (0.5) (2.0)
TOTAL 814.4 988.6 1,401.8
CARNET DE COMMANDES
PAR ZONE GÉOGRAPHIQUE
€ millions Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Africa and the Middle East 133.9 328.5 558.2
France 110.6 125.2 190.8
Asia and Oceania 316.6 289.0 333.5
Europe (excluding France) 141.4 145.6 194.5
The Americas 111.9 100.3 124.8
TOTAL 814.4 988.6 1,401.8
www.fivesgroup.com
45

Group activity
Outstanding commercial successes
Fives recorded numerous commercial successes in 2007, illustrating
its international scope, its capacity to innovate and the confidence
of its major customers regarding the management of complex,
strategic projects.
In February, Fives obtained a major order from Alstom in the
context of the new nuclear reactor (EPR) at Flamanville (France)
for the design, supply, prefabrication and assembly of high pressure
“water-steam” pipes in the machine room, requiring the installation
of around 1,000 tonnes of pipes, 216 tonnes of fittings and 166 tonnes
of valves. This contract was followed by two other orders at
the end of the year, one from Alstom for medium pressure pipes
linking the machine room condensors and representing another
325 tonnes of equipment, and the other from Areva for the six
reactor containment penetrations.
In April, China’s leading steel company Baosteel contracted Fives
to supply and install all the mechanical and thermal equipment
for a tinplate annealing line at its Meishan plant based on the
same model as the order won in 2005 for its Yichang plant. In
the second half, the Group was again contracted to supply a galvanizing
line for the production of new steels with very high
elasticity limits for the automotive industry and a ZR21 rolling
mill for the Shanghai No.1 site.These two orders bring to five the
number of major contracts obtained from this customer in less
than three years, strengthening Fives’ position as a benchmark
supplier for Baosteel.
Also in April, Fives took a major order for four large-size grinding
machines for ship crankshafts. This follows a first order obtained
in 2006, reflecting recognition of the quality of the research center
that developed these innovative machines.
In May, the Group won a four year order representing from
Areva subsidiary SET (Société d’Enrichissement du Tricastin) for
pipes for the Georges Besse II project in France. This enrichment
plant will use a centrifugal uranium enrichment process that
Fives 2007 Annual report
46
consumes only one thirtieth of the electricity of the gaseous
diffusion process currently used. For this same project, Fives Nordon
was also selected by ETC (Enrichment Technology Corporation),
a joint venture between Areva and Urenco, to assemble all the
valve stations and cascades. The Group is therefore participating
in a major investment that will confirm Areva’s leadership in the
enrichment market where it already has 25% of world capacity.
In August, Fives Solios obtained an order from the consortium
formed by the Norwegian company Hydro Aluminium and the
State company Qatar Petroleum for the supply of a turnkey raw
anode production workshop as part of the construction of an
aluminium plant with an annual capacity of 585,000 tonnes at
Messaied (Qatar). In November, Fives Solios obtained an order
for four electrolysis pot gas treatment systems, supplemented
downstream by seawater scrubbers for desulphurizing gases, and
an order for the liquid pitch terminal. Fives Solios ended the year
with four other contracts that were brought into force early in
2008 involving eleven holding and melting furnaces, the water
cooling system for the casthouse, the firing equipment and control
process system for the anode baking furnace (Setaram technology)
and the fume treatment system. Thanks to this equipment and
two series of 352 pots each based on Hydro Aluminium HAL 275
technology, upgraded to 300 kA, this smelter will be the largest,
most efficient and cleanest ever built.
In September, the Group won an order from Beni Suef Cement
Company, the joint venture between global leader Lafarge and the
leading Greek cement manufacturer Titan, for a 4,000 tonnes per
day turnkey cement plant in Egypt.
Main deliveries in 2007
In cement, following a series of successful tests, Fives FCB obtained
provisional acceptance from Qatar National Cement Company
in April 2007 for a 4,000 tonnes per day clinker production line in
Qatar. In August, Fives FCB also successfully brought into service
the first Twin Horomill® workshop for CamPha in Vietnam. The

workshop’s design, based on two Horomill® mills operating in
parallel on the same grinding circuit, which itself includes a
materials separator, a ventilator filter and a raw materials feeder,
enables production capacity to be doubled – bringing it to 240 tonnes
an hour in the present case – at reduced cost while offering
great operating flexibility.
In steel, Fives distinguished itself in China with the delivery of a
120,000 tonnes per year hot coating line ordered by TPCO and the
acceptance of three silicium steel rolling mills, two for Wisco and
one for Tisco.
Lastly, at the end of the year, Fives obtained provisional acceptance
for the sugar plant completed in consortium with Maguin
and OEP for Kayseri Seker (Turkey). This turnkey plant, built in a
record time of just seventeen months, showcases all the latest
technology developed by the Group. Its high level of automation
and high-power thermal system make it one of the most up-to-date
sugar plants ever built.
1.3 Outlook for 2008
The Group entered 2008 with excellent sales prospects for the
year, thanks to an order book that set a new record, at constant
scope, for the sixth consecutive year. At December 31, 2007, the
order book stood at €1,402 million (of which €37 million for
the newly consolidated entities), up by 42% compared with 2006
(€989 million), thanks to the remarkable sales performance of
the metals and energy divisions and a continuing strong contribution
from the cement division.
The business outlook for 2008 remains positive despite a more
uncertain economic background due to rising raw materials and
transport prices, negative exchange rate trends and the risk that
the current financial crisis might spread to the real economy
and, consequently, to industrial investment.
The key challenges in 2008 will be:
at the strategic level, to continue to adopt a pragmatic and
opportunistic approach to external growth, focusing on deals
that add to the Group’s range of technical services and products
and/or extend its market coverage;
at the marketing level, to develop the Group’s presence in
regions considered to have strong growth potential over the
coming years;
at the operating level, to continue to implement cross-Group
measures in terms of research and development and to step up
recruitment, while keeping tight control of overheads. In addition,
contracts in progress will continue to be monitored carefully to
ensure they are completed with satisfactory levels of profitability
given a heavy workload, rising raw materials prices and longer
supply times.
Thanks to its strong positions in fast-growing markets, notably
China, India, the Middle East and Russia, and to the diversity of
its products and services, the Group is expecting further growth
in sales and operating profit in 2008.
www.fivesgroup.com
47

Group activity
SUMMARY OF CONSOLIDATED RESULTS
€ millions 2005 2006 2007
Sales 914.3 1,024.9 1,137.3
Operating profit 43.1 53.1 (*) 64.4 (**)
Profit before exceptional
profit/(loss) and taxation 46.0 52.6 65.9
Net exceptional profit/(loss) (3.7) (5.9) 0.7
Profit before tax 42.3 46.7 66.6
Net profit of consolidated
companies before
amortization of goodwill 31.9 29.5 42.0
Group share in the net
loss of companies in the
process of being sold (3.8)
Net profit 21.6 24.4 32.9
Net profit, Group share 20.1 22.9 31.6
Shareholders’ equity after
net profit, Group share 134.2 149.9 159.1
(*) Restated for the impact of the allocation of the acquisition price of Landis’ assets,
amounting to €3.5 million, consolidated operating profit came to €56.6 million.
(**) Restated for the impact of the allocation of the acquisition price of Sorting’s assets,
amounting to €0.4 million, consolidated operating profit came to €64.8 million.
Fives 2007 Annual report
48
2. FINANCIAL PERFORMANCE
2.1 Accounting principles and companies
included in the Group consolidation
The consolidated profit and loss statement includes the contributions
in the second half of the year from Cinetic Sorting Corp.,
Cinetic Sorting S.p.a. and Cinetic Sorting K.K. acquired on June
29 and consolidated for the first time as of July 1, 2007.These contributions,
which amounted to €1.8 million of operating profit on
sales of €41.2 million, reduced by €0.4 million on revaluation of
assets in accordance with the Group’s accounting principles
when allocating the acquisition price to the new entities. These
adjustments consisted mainly of taking into account under
work-in-progress part of the margin (percentage of completion)
and valuing real estate at its useful value.
Cinetic Service Slovakia s.r.o. in the automotive division and
Fives Cail KCP Ltd in the sugar division, which both constitute
extensions of their parent companies’ activities, were consolidated
for the first time in 2007. Cinetic Service Slovakia s.r.o. is fully
consolidated and Fives Cail KCP Ltd is consolidated using the
proportional method (40%).Their combined contribution to sales
and consolidated operating profit in 2007 came to €14.5 million
and €1.7 million respectively.
2.2 2007 results
Despite the negative impact of dollar exchange trends, sales
including the newly consolidated companies reached €1,137.3
million in 2007, 11% more than in 2006 (€1,024.9 million).
Sales grew by 7% at constant scope and exchange rates thanks
to a record opening order book in cement and energy.

Including the newly consolidated entities, operating profit came
to €64.4 million in 2007, more than 20% higher than in 2006
(€53.1 million) and up by 17% at constant scope and exchange
rates. Net profit, (Group share) came to €31.6 million, nearly
38% higher than in 2006 (€22.9 million).This increase was mainly
due to growth in operating profit and a significant reduction in
exceptional expenses, which more than offset the higher tax charge.
Operating profit
Operating profit for the year came to €64.4 million, up strongly
from €53.1 million in 2006. As in 2006, all the Group’s activities
made a positive contribution to this performance.
At €21.9 million, operating profit for the metals division was
slightly lower than the record €22.5 million achieved in 2006, which
had included final acceptance of several contracts in the aluminium
sector. The aluminium activity’s contribution to operating profit
increased in 2007 whereas that of steel diminished. In aluminium,
the Group benefited from completion milestones, notably in Oman,
and from the successful delivery by ship of the pre-assembled
equipment to Fjardaàl in Iceland in the first quarter. In steel, the
rising cost of raw materials and transport as well as the heavy
workload placed on the staff for the fourth consecutive year
reduced the margin on a contract in the Netherlands. All in all,
the metals division continues to make the largest contribution
to Group operating profit.
The energy division posted spectacular growth with operating
profit of €18.1 million in 2007 compared with €10.2 million in
2006 and €4.9 million in 2005. This performance reflects exceptional
commercial activity over the past two years in cryogenic
equipment and high-pressure pipes. The consolidation of
Fives Cail KCP Ltd, an Indian sugar company consolidated using
the proportional method, also contributed to growth in earnings,
making this division the second-largest contributor to Group
operating profit.
At constant scope, i.e. excluding Cinetic Sorting and Cinetic
Service Slovakia s.r.o., the automotive/logistics division recorded
operating profit of €14.7 million, similar to the level achieved in
2006 (€14.5 million). Growth in earnings from the machining
and automated sorting systems businesses offset the difficulties
encountered by the automated production systems activity, due
mainly to a low opening order book. Including the newly consolidated
companies, operating profit came to €16.9 million, making
this division the third-largest contributor to Group operating
profit.
The contribution from the cement division increased strongly
in 2007, at €15.3 million compared with €11.2 million in 2006.
The division benefited from milestone payments on contracts
from QNCC in Qatar for two turnkey cement plants, one of
which was delivered and accepted during the year, as well as
robust business in combustion equipment thanks to a significant
volume of orders from Asia.
In 2007 growth in earnings in all the Group’s markets offset the
increase in holding company expenses, which came to a net
charge of €7.7 million compared with €5.3 million in 2006.
Financial results
The Group recorded net financial income of €1.5 million in 2007
compared with a net financial loss of €0.5 million in 2006. This
significant improvement reflects higher investment returns in
the euro zone and an increase in average cash. Consolidated Group
cash amounted to €253 million at the end of 2007 compared
with €234 million a year earlier.
www.fivesgroup.com
49

Group activity
Exceptional profit/(loss)
€ millions 2005 2006 2007
Net restructuring costs (1.4) (5.5) (1.2)
Financing costs (1.1) (1.4)
Net gain on disposals
of intangible assets, property,
plant and equipment
and long-term investments 0.1 1.1 1.0
Net income of newly
consolidated companies prior
to inclusion in the
consolidation scope 0.2 0.5
Other (1.3) (0.3) 0.4
TOTAL (3.7) (5.9) 0.7
The Group recorded net exceptional income of €0.7 million
compared with a net exceptional loss of €5.9 million in 2006,
which had been affected by high restructuring costs, mainly at
the automotive division. Like the previous year, the Group generated
a gain of €1 million on the sale of non-strategic real estate in
France and the United States.
Net profit
The total tax expense (current and deferred tax) for the year
came to €24.6 million.This was higher than in 2006 (€17.2 million)
due principally to the significant increase in taxable income.
It includes current tax amounting to €24.3 million, of which
€16.9 million from companies in the French tax group and €7.4
million on French and foreign companies not included in the tax
group, as well as a deferred tax expense of €0.3 million.
After taking into account amortization and depreciation of
goodwill amounting to €9.1 million, versus €5 million in 2006,
which includes an additional write down of goodwill on
Cinetic Filling, net profit, (Group share) came to €31.6 million,
up by 38% from €22.9 million in 2006.
Fives 2007 Annual report
50
2.3 Contribution of each division
to Group results
METALS (ALUMINIUM & STEEL)
Activity: the metals division supplies key processes and
equipment, mainly for aluminium and steel production.
For aluminium, the equipment covers key manufacturing
processes in the carbon, smelting and electrolysis sectors.
All this equipment is marketed under the Fives Solios brand
name. In steel, the Group has both mechanical and thermal
expertise and supplies rolling mills, large capacity reheat
furnaces and surface treatment lines.The division also serves
the glass industry where its thermal technology has found
new applications. This division’s activities are carried out
under the Fives DMS and Fives Stein brands in steel and
under the Fives Stein brand in the glass sector.
Despite the price adjustment in aluminium traded on the London
market (LME) in the second half of 2007 and the turbulence triggered
by announcement of mergers between the Majors, the primary
aluminium sector continued to boom, as had been expected, thanks
to the simultaneous launch of several large-scale projects. The
macroeconomic context of global supply and demand, upheld by
economic growth in emerging markets, particularly China, continues
to be favorable to continuing investment. In the short term,
however, the energy problems encountered by some producer
countries, notably South Africa, the rise in construction costs in
some regions and upcoming mergers in the sector could result in
some investment decisions being postponed.
Owing to a comprehensive range of services integrating innovative
and efficient technology that complies with the strictest environmental
requirements, the Group won a number of turnkey contracts
in the second half of 2007 for the new 585,000 tonnes per year
aluminium plant built at Messaied (Qatar) by Qatalum, the
consortium formed by Hydro Aluminium and Qatar Petroleum.
The contracts obtained include a turnkey green anode production
workshop, four electrolysis pot gas treatment centers with

downstream seawater scrubbers for desulphurizing gases and a
liquid pitch terminal. In connection with the same project, the
Group obtained several other orders at the end of the year which
were recorded in the order book at the beginning of 2008. These
concerned eleven holding and melting furnaces with capacities
of between 55 and 66 tonnes, the water cooling equipment, an
anode baking furnace heating and regulation system (Setaram
technology) and the fume treatment center. Thanks to this
equipment and two series of 352 pots each based on Hydro
Aluminium HAL 275 technology, upgraded to 300 kA, this smelter
will be the largest, most efficient and cleanest built to date.
Due to these commercial successes, the Group achieved record
order intake and a record closing order book, in each case more
than double that of 2006 in value. Although 2008 is expected to
be lower than 2007, the year has started well. Fives Solios
recently signed two contracts for the supply of pot gas treatment
centers, one with Rusal and the other with Hydro-Rusal for the
Taishet and Boguchanski aluminium plants in Russia. It has also
been selected by Rio Tinto Alcan to equip a first series of AP-50
pots in Arvida, Canada, with the latest-generation Ozeos filter.
At the operating level, Fives Solios participated actively alongside
Bechtel to bring into service the pre-assembled equipment shipped
to Alcoa’s Fjardaàl plant in Iceland and continued its work on the
installations in Oman ordered by Sohar in 2006. The various
workshops (green anode shop, liquid pitch terminal, gas treatment
systems, smelting towers and effluent treatment systems) were
assembled without any site accidents. All in all, although still
below the record levels achieved from 2002 to 2004, operating
profit from the aluminium activity increased compared with
2006. The exceptionally high level of the closing order book
together with robust commercial activity at the beginning of
2008 offers excellent business prospects for the year and points
to a further rise in operating profit in 2008.
In the steel sector, world production rose to a record level of
1,343 million tonnes in 2007, 7.5% more than in 2006. The greater
METALS (ALUMINIUM & STEEL)
€ millions 2005 2006 2007
Order intake 434.0 426.2 646.4
Order book at Dec. 31 381.0 425.5 672.9
Sales 361.0 379.1 400.2
Operating profit 19.4 22.5 21.9
Employees at Dec. 31 1,195 1,177 1,271
www.fivesgroup.com
51

Group activity
part of this growth continues to proceed from China, which
accounts for one third of world production in volume. Steel prices
remained high and are likely to continue to rise given strong
demand and a rise in the price of iron ore. The pace of Chinese
investment could slow down over the medium term, but this is
likely to be partly offset by growing demand in India, Russia,
Eastern Europe, Turkey and Brazil.
In this environment, order intake grew significantly compared
with 2006, ending the year with a record closing order book.
Thanks to a comprehensive offer combining the Group’s thermal
and mechanical equipment, the Group won the contract from
Baosteel for a tinplate annealing line for the Meishan plant and
a galvanizing line at the Shanghai site for producing new steel
with very high elasticity limits for the automotive industry.
These two orders bring the number of major contracts obtained
from this customer to five in less than three years, consolidating
Fives’ position as a benchmark supplier for Baosteel. In cold rolling
mills, two orders were taken for Sendzimir ZR21 rolling mills, one
for Tisco and one for Baosteel’s Shanghai no.1 plant. With regard
to thermal equipment for continuous lines, the Group was chosen
to supply a new line for Shougang in China and to upgrade a silicium
steel normalization line for Novolipetsk, a leading Russian steel
company. In hot rolling, orders were taken in India, Turkey, Spain,
Russia and Brazil for around ten walking beam reheat furnaces with
Digit@l Furnace® technology. Lastly, in glass, where the Group
has a comprehensive technological range of services, it obtained
contracts in Russia and India to build hot ends with capacities of
respectively 250 tonnes per day and 550 tonnes per day.
As well as commercial successes, 2007 was a busy year in terms
of completion. In September 2007, Fives successfully started the
continuous high-speed tinplate annealing line for Baosteel and a
ZR22 rolling mill for Thainox in Thailand. The division also
obtained acceptance of the pickling and annealing line delivered
to TPCO and of three silicium steel rolling mills for the Chinese
steel companies Wisco and Tisco. With regard to Digit@l
Fives 2007 Annual report
52
Furnace® reheat furnaces, numerous furnaces were brought into
service notably at Laiwu Steel and Nanjing Steel in China. For
Nanjing Steel, the Group distinguished itself by completing all
the equipment in eleven months, one month ahead of schedule.
The production start up of a new walking beam furnace equipped
with the latest Digit@l technology and capable of processing
420 tonnes per hour for VAS in Austria also stands out for its
prompt execution. The division successfully started up - in some
cases within very tight deadlines - several steel strip processing lines
as well as six new processing lehrs.
All said, although lower than in 2006, operating profit remained
high for the steel division. The heavy workload faced by the
various teams for the fourth consecutive year combined with a
significant rise in the cost of raw materials and transport had a
negative impact on the operating margin. For 2008, the Group is
starting the year with a strong opening order book, which together
with projects being followed up at the beginning of the year,
guarantees a robust level of activity.
AUTOMOTIVE/LOGISTICS
Activity: the automotive division designs, manufactures and
installs equipment, integrated tooling systems and automated
production systems for the automotive industry. These
handling systems have several other fields of application,
particularly in the logistics sector where the Group offers an
extensive range of automated sorting systems. All this
equipment is marketed under the Fives Cinetic brand.
2007 marked the strengthening of this division’s logistics activities
through the acquisition at the end of June of the Swedish group
Sandvik’s high-speed parcel sorting activities in Italy, the United
States and Japan.
Business conditions underwent no significant change in 2007.
Conditions remained particularly difficult in the automotive sector

in Europe and the United States where, faced with the strengthening
of South Korean and Japanese transplants, the European
and North American carmakers, in the throes of major restructuring,
were still limiting their investments. Conditions are more
positive, however, for the logistics activity as the main players
are upgrading their equipment and systems in order to cope
with increasingly complex and numerous flows.
In terms of tooling systems, the Group won a major order from
Chrysler for the supply of grinding machines for two new engine
assembly lines, located in Trenton, Michigan, in the United States
and Saltillo in Mexico. It also won an order from Ford for around
ten tooling machines, for its new diesel engine which will be
manufactured in Mexico.The research center enabled the division
to successfully bid for innovative projects requiring the development
of specific machines, such as the contract obtained from a worldclass
crankshaft manufacturer for four large-sized grinding machines for
crankshafts for boat engines which followed a first order obtained
in 2006. Lastly, thanks to an extensive sales network, efforts to
diversify its activity since 2006 and a recognized know-how, the
Group was able to win numerous upgrading contracts as well as
orders for new machines, notably laser welders.
In terms of automated production systems, the Group posted
strong growth in order intake in 2007 after a very disappointing
performance in 2006, winning contracts for the rare investments
made by its traditional carmaker customers and thanks to a more
diversified customer base following the extension and redefinition
of its offer in 2006. In North America, it obtained several orders
from General Motors at the beginning of the year for assembly
lines for six-cylinder engines located respectively in Tonawanda,
New York (United States) and Ramos (Mexico). In 2004, the Group
had supplied nearly all the main equipment at this last site. It
also enjoyed a substantial flow of orders under the global master
agreement signed with this carmaker in 2006 for fluid filling
equipment. In Europe, in an environment of stiff competition, it
won a contract to extend the Renault/Dacia assembly plant in
AUTOMOTIVE/LOGISTICS
€ millions 2005 (*) 2006 2007
Order intake 195.6 299.5 339.5
Order book at Dec. 31 79.7 130.5 190.4
Sales 219.0 311.4 315.6
Operating profit 10.4 14.5 16.9
Employees at Dec. 31 1,119 1,804 2,005
(*) Excluding Cinetic Landis Grinding which had an order book of €67.5 million at December
31, 2005 and 747 employees.
www.fivesgroup.com
53

Group activity
Romania to 60 vehicles per hour and a contract for alterations
to the conveyers at PSA Peugeot Citroën’s Mulhouse plant in
France. Its know-how in industrial automation enabled it to
enter new markets such as the order obtained from Vallourec
and its licensed subcontractors (Sumitomo in Japan) for the supply
of robotized islands for hot coating of tube ends and sleeves.
In automated sorting systems, the Group consolidated its position
by acquiring Sandvik’s Sorting Systems operations, thereby becoming
the world leader in sorting centers for postal and courier
companies.At the operating level, priority was given to integrating
the new entities within the Group so as to accelerate growth in
markets they did not previously reach and to settle on a common
approach to the other markets. In July, the Group’s long-standing
French subsidiary and the newly acquired Italian subsidiary
jointly made a successful bid for a substantial order from
Coliposte for an automated sorting center at Melun in France.
The Group won two other significant orders in the autumn, one
from Michelin for two palletization robots for a plant in Poland
and one from Purolator as part of a project to modernize sorting
facilities at its Vancouver sorting center in Canada.
Under these circumstances, the division posted an increase in
order intake and in the closing order book compared with 2006.
Operating profit also grew thanks to the cancellation of part of
the health insurance provided to some of its American employees.
It nonetheless continued to suffer from the low opening level of
orders in 2007 – especially with respect to automated production
systems – as well as by the depreciation of some work-in-progress
following the merger of the Group’s traditional grinding activities
with the Landis operations acquired in 2006.
Fives 2007 Annual report
54
Conditions in 2008 are expected to remain similar to those in
2007.The Group will continue its efforts to lower the break-even
point of its most vulnerable subsidiaries and extend its offer to
the most promising markets.
CEMENT
Activity: the cement division’s offer ranges from supplying
isolated equipment such as burners (marketed under the
Fives Pillard brand), grinders and materials separators, to
complete grinding shops and turnkey cement factories
(under the Fives FCB brand).
Despite the crisis in the American real estate market during the
summer, which had a negative impact on building activity,
trends in the global cement industry remain robust thanks to
still growing demand in emerging countries. The latest estimates
put investment in cement production in 2007 (excluding China)
at between 125 million and 150 million tonnes of additional
capacity. This is in line with the record level achieved in 2006 of
140 million tonnes, i.e. doubling the high point (70 million) of
the previous upward cycle, which ended abruptly in 1997. In
view of the significant number of projects identified to date, we
expect 2008 to be similar to 2007 in terms of investment. Like
Lafarge, which – in addition to the acquisition of the Egyptian
company Orascom – has maintained its target of increasing
production capacity by 45 million tonnes between now and
2010, all the major cement groups have launched ambitious
investment programs.
In this environment and thanks to the major projects completed
in recent years, Fives FCB won an order from the joint venture

etween the world leader Lafarge and the leading Greek cement
company Titan for a turnkey cement plant with a capacity of
4,000 tonnes per day – including a 170 tonnes per hour grinding
shop – at Beni Suef in Egypt. 2007 also featured a strong increase
in orders for proprietary equipment, notably Horomill® grinding
mills, for installations in China, India, Spain and Mexico and TSV TM
separators for Cemex. The Group also recorded numerous orders
for combustion systems, particularly in the Chinese market, with
a significant flow of business from the energy sector where this
technology has found new applications, notably in the context
of the upgrading of EDF’s power plants in France and the requirement
to meet new standards applicable to the sector as from
January 1, 2008.
Despite these commercial successes, order intake was slightly
down from the record level achieved in 2006, which featured the
largest order ever taken by the Group, for a 5,000 tonnes per day
clinker line in Qatar.
At the operational level, 2007 featured the simultaneous completion
of three cement plants: two for QNCC in Qatar (the first
was commissioned last year) and one for Thai Nguyen in
Vietnam. The sustained activity generated by executing these
contracts and the smooth unwinding of warranty periods on past
contracts resulted in strong growth in operating profit compared
with 2006. A record opening order book and robust sales activity
in early 2008, with the bringing into force of a contract for a
3,500 tonnes per day cement plant equipped with three
Horomill® 3,800 grinding mills for Holcim in Mexico, provide
excellent visibility for the year and point to further growth in
operating profit in 2008.
CEMENT
€ millions 2005 2006 2007
Order intake 128.4 268.1 230.4
Order book at Dec. 31 172.3 283.0 313.9
Sales 188.9 157.3 196.2
Operating profit 6.4 11.2 15.3
Employees at Dec. 31 442 454 476
www.fivesgroup.com
55

ENERGY
Group activity
€ millions 2005 2006 2007
Order intake 195.8 213.7 289.9
Order book at Dec. 31 114.0 150.1 226.6
Sales 146.1 177.7 226.7
Operating profit 4.9 10.2 18.1
Employees at Dec. 31 1,026 1,061 1,176
Fives 2007 Annual report
56
ENERGY
Activity: the energy division designs and manufactures
a variety of industrial equipment for all types of energy
production (nuclear, fossil fuel or renewable), marketed under
the Fives Nordon, Fives Cryogenie and Fives Cail brands.
Bolstered by a dynamic market driven by steadily growing
energy consumption in emerging countries, a structural increase
in oil prices and renewed investment in industrialized countries
in the construction of new plants and the renovation of existing
ones, the energy division’s order book rose to a record level in
2007 after an already exceptional year in 2006. The outlook
beyond 2007 looks promising. In France, EDF is to begin the third
phase of the 10-year inspections of its power plants, while more
than 220 projects to build nuclear reactors have been identified
internationally.
Fives Nordon obtained two major orders in France in high pressure
piping, the first from Alstom for the new nuclear reactor (EPR) at
Flamanville, and the second from Areva and ETC, the joint venture
between Areva and Urenco, for the Georges Besse II uranium
enrichment facility whose centrifugal process will use thirty times
less electricity than the gaseous diffusion method currently used
at the plant. This investment will consolidate Areva’s leadership
in the enrichment market, where it already has 25% of available
world capacity. Internationally, Fives obtained another order from
the Chinese company, CNPEC, for RCC-M carbon steel pipes for the
Dalian and Fujian nuclear plants. A framework agreement was
reached with Areva’s T&D division for the supply of compensators
and spiral seam tubes over the next three years.

In cryogenic equipment, the Group continued to benefit from the
constant rise of oil prices, increasing the use of natural gas. Fives
won an order from Hamworthy for eleven cold boxes installed in
gas tankers, bringing to thirty the number of equipment orders
taken from this customer in the past three years. Fives Cryo has
decided to set up a manufacturing plant in China for standard
exchangers in order to respond to the needs of Air Liquide, which
during the summer announced an investment program of
€10 billion for the 2007-2011 period, aimed at accelerating
growth and doubling size over the next five years. Fives Cryo has
also launched a plan designed to optimize production capacity,
targetting an additional 30% in France rapidly and at reduced cost.
In sugar, Fives Cail posted a level of order intake similar to that
of 2006 despite a significant drop in world sugar prices linked to
significant growth in production, which covered the production
shortfall of the past two years. Investment projects remained
numerous, particularly in Russia, India and Brazil. Brazil has particularly
strong potential given its commitment to developing
bio-fuels. Louis Dreyfus is planning to double its processing
capacity and become the second-largest producer in Brazil;
meanwhile Cosan, the national leader in ethanol and sugar has
announced plans to invest USD1.7 billion in building new sugar
plants over the next four years.
At an operational level, final acceptance of the Bogazliyan sugar
plant in Turkey and of several natural gas liquefaction units on
gas tankers during the year, as well as satisfactory progress on
the contracts to supply pipes for Lingao (China) and Maritza
(Bulgaria), contributed to strong growth in sales and operating
profit in 2007.The division began 2008 with a record order book,
pointing to further growth in operating profit and profitability.
www.fivesgroup.com
57

Mastering technology and sustainable development
Mastering leading-edge technology and developing specific
know-how have for many years been considered a strategic priority
for the Group’s development, providing an excellent means of
standing out from the competition. By offering customers a
wide range of proprietary innovative technologies, the Group has
acquired a significant competitive edge in most of its areas of
activity.
The quality of the Group’s technology creates value for its customers
by improving the performance of their products and the
efficiency of their installations in terms of energy consumption
and environmental impact:
in primary aluminum, Fives Solios has developed a range of
technologies for new-generation high-amperage electrolysis pots.
Using the new Xelios vibrocompactor, combined with Rhodax®
technology and the Amelios supervision system, operators can
produce high-density anodes which help to improve the energy
efficiency of their installations.As regards environmental protection,
the new generation of Ozeos compact filters keeps discharges at very
low levels, in spite of a 40% increase in the volumes of gas treated;
in thermal equipment for the steel and glass industries, the
Group has developed new furnaces and processing lines that
significantly reduce energy consumption and CO 2 and NO x
emissions. In the reheating field, the introduction of new-generation
Digit@l Furnace® spread-flame burners has optimized
temperature homogeneity while significantly reducing NO x
levels and providing users with greater flexibility;
in the cement industry, the Horomill® grinding mill, which has
already made its name in the grinding of raw materials and clinker,
has demonstrated its high performance in the grinding of blast
Fives 2007 Annual report
58
furnace slag. Thanks to this versatility, the Horomill® has a key
role to play in new cement production techniques with low carbon
emissions;
in the energy sector, Fives Nordon’s recognized competencies
in the manufacture of pipes for the nuclear industry make it a
leading partner for operators in that field, and Fives Cryo’s highperformance
heat exchangers are the ideal solution for new
applications for the separation and sequestering of CO 2 ;
in logistics, Fives Cinetic’s acquisition of Sandvik’s high-speed
sorting systems business means that Fives is able to offer the
world’s best technologies for mail sorting and logistics applications.
The Group has also decided to extend its technical offer with the
development of “manufacturing intelligence” tools specifically for
its equipment. These solutions, based on recent innovations in
statistical algorithms, help operators optimize their installations’
performances and operating stability over time.
For its research programs, some of which receive partial public
financing, Fives has dedicated teams in each business sector
with their own resources, including laboratories, test centers and
pilot installations, some of which were developed in collaboration
with customers.
The Innovation Group, which was set up in 2006 through the
efforts of the Innovation Department, ensures the consistency of
innovation projects and promotes technical synergies between
the Group’s various fields of activity.
Fives’ focus on innovation is backed by a policy for the protection
of intellectual property codified in a White Paper. This policy is

orne out by an extensive portfolio of patents which provide the
Group with a clear strategic advantage for successfully winning
and carrying out contracts, but no single patent or trademark
has a decisive impact on the Group’s business activities or financial
results.
In all, research and development expenditure amounted to
€12.8 million in 2007, 8% more than in 2006. These expenses,
recorded under “Research and development” in the overhead
costs section of the profit and loss statement, are only the tip of the
iceberg with regard to actual research and development expenses.
Given the nature of the Group’s business fields, a significant portion
of total development costs is incurred in seeking solutions for
customers’ specific needs and is therefore included in contracts’
cost of sales.
In terms of sustainable development, the Group’s aim is to
reconcile environmental friendliness, social equity and economic
efficiency. The companies in the Group are pursuing this goal in
their relationships with customers, staff and partners. The
Group’s commitment takes several forms:
by the very nature of its activity as a specialized engineering
company, Fives has very little direct impact on the environment.
It has few production sites and these are mainly assembly plants;
by striving to develop solutions at optimal cost for its customers’
production plants that respect worker safety and the environment,
the Group responds to its customers’ desire to show their social
commitment and, by ensuring the continuity of its business,
contributes to its own sustainable development;
through active career management and by developing skills
through training in order to attract and keep staff, the Group is
preparing for in-depth changes in the market in coming years
resulting from the decline in the working population, the retirement
of a large number of experienced employees and the difficulties
of recruiting staff in certain technical and highly specialized areas;
thanks to an organization balanced between decentralized
decision-making that responds to customers’ needs and strict
compliance with effective internal control procedures, the Group
has forged a shared model that ensures the consistency of the
policies implemented by the various divisions. By combining
rigorous contract management, selective project acceptance
and, more generally, a culture of responsibility and control, the
Group has equipped itself well to face the challenge of development
and to accelerate its profitable growth.
www.fivesgroup.com
59

Corporate governance
THE EXECUTIVE BOARD
The Executive Board manages the company under the supervision
of the Supervisory Board.The number of Executive Board members
is fixed by the Supervisory Board at a minimum of two and a
maximum of five.
The Executive Board currently has four members and is responsible
for the company’s management. It has the broadest powers to
act in all circumstances in the company’s name within the limits
of its corporate purpose and the powers expressly attributed to
the Supervisory Board and to General Meetings of shareholders.
With regard to the Supervisory Board, the Executive Board:
presents a quarterly report on the Group’s performance, together
with a revised budget for the current year and, at each year end,
an initial budget for the following year;
within the three months following the financial year end, closes
the annual company and consolidated financial statements and
provides them to the Supervisory Board;
provides the Supervisory Board with the Executive Board
report that will be presented to the Annual Ordinary General
Meeting;
reports on specific issues that could be of major importance
for the Group.
The Executive Board meets as often as the company’s interests
require. The Executive Board met on the following dates in 2007:
March 29, June 19, July 12, September 27, November 15 and
December 19.
Executive Board members are appointed and remunerated as
provided for by law. Their term of office can be terminated by
the General Meeting of shareholders or directly by the
Supervisory Board.The Executive Board is appointed for a term of
six years. All Executive Board members shall cease their functions
on the date of their 65 th birthday.
Fives 2007 Annual report
60
Composition of the Executive Board
Frédéric Sanchez
48 years old, Chairman of the Executive Board.
Appointed on October 3, 2002, until October 3, 2008.
Main positions held:
Various positions in companies affiliated to the Fives group.
Member of the Supervisory Board of Latronche Madrangeas.
Member of the Board of Directors of Compagnie des Gaz de
Pétrole Primagaz.
Martin Duverne
51 years old, member of the Executive Board.
Appointed on October 3, 2002, until October 3, 2008.
Main positions held:
Various positions in companies affiliated to the Fives group.
Philippe Ramet
59 years old, member of the Executive Board.
Appointed on December 14, 2006, until October 3, 2008.
Main positions held:
Various positions in companies affiliated to the Fives group.
Lucile Ribot
41 years old, member of the Executive Board.
Appointed on October 3, 2002, until October 3, 2008.
Main positions held:
Various positions in companies affiliated to the Fives group.

THE SUPERVISORY BOARD
The Supervisory Board shall be composed of at least three and
at most eighteen members, except in the case of a merger, in
accordance with applicable law.
Currently composed of seven members, the Supervisory Board
exercises permanent control over the Executive Board’s management
of the company. It meets at least four times a year to
review the quarterly report presented to it by the Executive
Board. It checks and controls the company and consolidated
financial statements presented to it by the Executive Board
within the three months following the financial year end.
Throughout the year, it performs the checks and controls it
considers appropriate and may request any documents it deems
useful in the accomplishment of its role.
The Supervisory Board met on the following dates in 2007:
March 30, June 20, July 23, September 28 and December 20.
The members of the Supervisory Board are appointed and removed
from office in the conditions provided for by law. Each member
of the Supervisory Board must own at least one share in the
company. Supervisory Board members are appointed for a term
of six years expiring at the end of the Ordinary General Meeting
of Shareholders called to approve the financial statements for
the year ended and held in the year in which the term of office
expires. The General Meeting shall determine the remuneration,
if any, paid to Supervisory Board members. The number of
Supervisory Board members aged 70 or over may not exceed
one third of the number of Board members.
Composition of the Supervisory Board
Jacques Lefèvre
70 years old, Chairman of the Supervisory Board.
Appointed on September 14, 2001, his term of office was renewed
by the Supervisory Board on March 30, 2007 and will expire at
the end of the General Meeting called to approve the 2012
financial statements.
Main positions held:
Member of the Boards of Directors of Lafarge and affiliated
companies, of Cementos de Portugal and of Société Nationale
d’Investissement.
Guillaume Jacqueau
41 years old, Vice-Chairman of the Supervisory Board.
Appointed on August 18, 2004, his term of office will expire at
the end of the General Meeting called to approve the 2008
financial statements.
Main positions held:
Managing Director of Barclays Private Equity France SAS.
Various positions in companies affiliated to Barclays Private
Equity France SAS.
James Arnell
38 years old, member of the Supervisory Board.
Appointed on July 27, 2006, his term of office will expire at the
end of the General Meeting called to approve the 2011 financial
statements.
Main positions held:
Member of the Board of Directors of Charterhouse Capital Partners
Limited.
Various positions in companies affiliated to Charterhouse Capital
Partners Limited.
www.fivesgroup.com
61

Corporate governance
Stéphane Etroy
36 years old, member of the Supervisory Board.
Appointed on July 27, 2006, his term of office will expire at the
end of the General Meeting called to approve the 2011 financial
statements.
Main positions held:
Member of the Board of Directors of Charterhouse Capital Partners
Limited.
Various positions in companies affiliated to Charterhouse Capital
Partners Limited.
Fabrice Georget
35 years old, member of the Supervisory Board.
Appointed on July 27, 2006, his term of office will expire at the
end of the General Meeting called to approve the 2011 financial
statements.
Main positions held:
Chairman of Charterhouse Services France SAS.
Various positions in companies affiliated to Charterhouse
Capital Partners Limited.
Arnaud Leenhardt
79 years old, member of the Supervisory Board.
Appointed on August 18, 2004, his term of office was renewed
by the General Meeting held on June 3, 2005, and will expire at
the end of the General Meeting called to approve the 2010
financial statements.
Main positions held:
Honorary Chairman of Vallourec and of UIMM.
Member of the Board of Directors of Aon France and Fenie-Brossette.
Member of the Supervisory Board of Oddo et Cie.
Vincent Pautet
33 years old, member of the Supervisory Board.
Appointed on July 27, 2006, his term of office will expire at the
end of the General Meeting called to approve the 2011 financial
statements.
Main positions held:
Various positions in companies affiliated to Charterhouse Capital
Partners Limited.
Fives 2007 Annual report
62
Fives’ governing bodies are assisted in their decision making
by various committees, as follows:
THE EXECUTIVE COMMITTEE
To assist with its decisions, the Executive Board has instituted an
Executive committee made up of the members of the Executive
Board and the Group’s main operating managers.
As a body for reviewing and exchanging information, the
Executive committee meets to examine specific issues and assist
the Executive Board to reach decisions concerning matters falling
within its powers. In particular, the Executive committee deliberates
on matters of common interest and on questions of coordination
between the Group’s various entities.
The Executive committee meets at least six times a year.
The committee met on the following dates in 2007: January 29,
February 21, March 15, April 2, May 4, June 15, September 17
and December 14 and examined the following main subjects:
formation of consolidated results;
career management, remuneration policy, satisfaction survey
and manpower planning;
development of the Group’s international sales force;
research and development, industrial property;
standardization and improvement of the Group’s design tools
and procedures;
Group procurement policy;
Group communication strategy;
internal control, review of the Directives and Recommendations
Manual;
introduction of a “social responsibility” approach.

Composition
of the Executive committee
Daniel Brunelli-Brondex, 47 years old.
Main positions within the Group:
CEO of Fives Stein and Chairman and CEO of Fives Celes.
Jean-Marie Caroff, 46 years old.
Head of the International Development Department.
Alain Cordonnier, 47 years old.
Main position within the Group:
CEO of Fives FCB.
Michel Dancette, 54 years old.
Main position within the Group:
Chairman and CEO of Fives Cail.
Jean Ledoux, 61 years old.
Main positions within the Group:
CEO of F.L. Metal and Chairman of the Boards of Directors of
Fives DMS and Fives Industries.
Jean-Claude Pillard, 62 years old.
Main position within the Group:
Chairman and CEO of Fives Pillard.
James Roget, 59 years old.
Main position within the Group:
CEO of Fives Nordon.
Jean-Claude Salas, 57 years old.
Main positions within the Group:
CEO of Solios Environnement and Chairman and CEO of Solios
Carbone.
Jean-Paul Sauteraud, 56 years old.
Head of the Group Legal Department.
Michelle XY Shan, 42 years old.
Vice President Business Development China.
Main positions within the Group:
Chairman of the Boards of Directors of Fives-Lille Machinery
International Trading (Shanghai) Co. Ltd, and of Stein (Shanghai)
Industrial Furnace Co. Ltd.
Jean-Camille Uring, 57 years old.
Main position within the Group:
Deputy CEO of Fives Cinetic.
Paule Viallon, 42 years old.
Head of the Group Human Resources Department.
THE ACCOUNTS COMMITTEE
The role of the Accounts committee is to provide information to
the Supervisory Board. It is composed of the following
Supervisory Board members:
Jacques Lefèvre, Chairman.
James Arnell, member.
Fabrice Georget, member.
The Chairman of the Executive Board, the Chief Financial Officer,
the Director of Accounting for the Group and/or the Financial
Control Director and the company’s Statutory Auditors also
attend Accounts committee meetings.
Its role is primarily to:
examine and assess the financial documents issued by Fives in
connection with the preparation of the annual and interim company
and consolidated financial statements;
advise the Supervisory Board on any changes in accounting
principles and policies applied;
examine the manner in which internal and external controls
are performed in respect of the company’s consolidated financial
statements.
The Accounts committee meets at least twice a year. In 2007, it
met on March 29 and on September 27.
www.fivesgroup.com
63

Corporate governance
THE APPOINTMENTS AND
REMUNERATION COMMITTEE
The Appointments and Remuneration committee is responsible
for making proposals to the Supervisory Board concerning
appointments to the Executive Board and the renewal of
Executive Board members’ terms of office together with the
amount of their remuneration.
It is composed of the following Supervisory Board members:
James Arnell, Chairman of the Appointments and Remuneration
committee;
Jacques Lefèvre, member of the Appointments and Remuneration
committee.
INTERNAL CONTROL
The internal control procedures applied within the Group are
intended:
to ensure that management actions and the conduct of transactions,
as well as the behavior of personnel, are fully consistent
with the applicable laws and regulations, the guidelines issued
by the Group’s governing bodies and its values, standards and
internal rules, and
to ensure that the accounting, financial and management
information provided to the Group’s governing bodies gives an
accurate picture of the Group’s activities and position.
Fives 2007 Annual report
64
With a view to preventing and managing risk arising from the
Group’s activities and the conduct of its staff, the Group’s structure
is based on:
the quality, personal involvement and accountability of management
teams at each Group company;
coordination by business division;
the implementation, as part of concerted action by all Group
companies, of the “Directives and Recommendations Manual”.
This manual is a major risk management tool and provides the
basis for the internal limitations set by the Boards of Directors
of Group companies on the powers of their Chief Executive
Officers and Deputy Chief Executive Officers.
In particular, every material binding offer is subjected to an in-depth
review intended to avoid exposure to risks that could have a
significant effect on the financial outcome of the proposed
contract or an adverse impact on the business or reputation of
the company in a given business sector or geographic region.
Similarly, each material contract in progress is reviewed in detail
at least once a quarter by the main managers of each Group
company so as to make a detailed assessment of contract progress,
review the technical, financial and contractual issues involved,
and make any relevant decisions.
With regard to the preparation and processing of accounting and
financial information, internal control is based on:
implementing professional accounting and financial procedures
throughout the Fives Group by building on the experience of its staff;
uniform guidelines, accounting methods and consolidation rules;
a common integrated consolidation and management application,
thus ensuring the consistency of accounting data and
management information.

EXTERNAL CONTROL
The Company’s Independent Auditors are:
Ernst & Young Audit, represented by Marc Stoessel.
Statutory Auditor, whose term of office was renewed on June 16, 2006.
Deloitte & Associés, represented by Pascal Colin.
Statutory Auditor, whose term of office was renewed on June 16, 2006.
Auditex.
Substitute Statutory Auditor, appointed on June 16, 2006.
Beas.
Substitute Statutory Auditor, whose term of office was renewed
on June 16, 2006.
In the context of their assignment, the Statutory Auditors carry
out a limited review of the consolidated interim financial statements
and a detailed audit of the annual company and consolidated
financial statements. The company and consolidated financial
statements have, to date, been approved without qualifications.
www.fivesgroup.com
65

FINANCIAL INFORMATION
Share capital
At December 31, 2007, Fives had share capital of €24,041,732,
composed of 2,185,612 fully paid-up shares with a par value of
€11 each.
The shares are registered shares.
There are no other securities giving access to the capital.
Changes in the share capital
The share capital, unchanged since December 30, 2005, amounted
to €17,733,128 at January 1, 2007 and was made up of 2,216,641
shares with a par value of €8 each.
As part of the merger-absorption of Financière F.L. by Fives on
December 20, 2007, the share capital of Fives changed as follows:
capital increase of €17,303,464 by the issue of 2,162,933 new
shares,
capital reduction of €17,551,696 by the cancellation of
2,193,962 shares contributed by Financière F.L.
During the same General Meeting of shareholders held on
December 20, 2007, the share capital was increased by
€6,556,836 by the incorporation of reserves and by an increase
in the par value per share from €8 to €11.
Fives 2007 Annual report
66
Financial and legal information
Share ownership
Fives’ main shareholder at December 31, 2007 was FL Investco,
which held 98.07% of the share capital.
Stock options
The company had not set in place any stock option plan at
December 31, 2007.
Within the merger-absorption of Financière F.L., however, Fives
took over the stock option plan set up by Financière F.L. in 2005.
Given the share exchange rate applicable on conclusion of the
merger, Fives received a contribution of 19,504 of its own shares
to cover its commitments to beneficiaries of the stock option plan.
Dividends / Distribution of reserves
The Ordinary General Meeting of June 3, 2005, resolved to distribute
a total dividend of €20,013,740.78 to shareholders, corresponding
to €9.11 per share.
The Ordinary and Extraordinary General Meeting of June 16, 2006,
resolved to distribute a total dividend of €2,659,969.20 to shareholders,
corresponding to €1.20 per share.
No dividends were paid in 2007.

LEGAL INFORMATION
Company name and registered office
Fives – 27-29 rue de Provence, 75009 Paris – France
Legal form
A French limited company (Société anonyme) with an Executive
Board and Supervisory Board since September 13, 2001.
Term
The term of the company is set at January 1, 2039, unless the
company is wound-up early or the term is extended.
Trade and companies registry
542 023 841 RCS Paris
Financial year
January 1 to December 31.
Purpose (summary of Article 3 of the Memorandum and
Articles of Association)
The Company’s object is, directly or indirectly, in France and
abroad, all engineering activities in the areas of the mechanical
and electrical industries and in particular in the areas linked to
the production and use of energy, the liquefaction of gas, the
production of aluminium, cement, glass, steel and sugar, the
automobile industry and logistics and, in this context, all activities
relating to design, development of and completion of projects of
all kinds in the form of the providing of services, design offices
and engineering advice as well as the design, development, and
acquisition of all property rights, processes and all industrial
manufacturing resources, entering into all licensing agreements
or any agreements relating to these assets.
Distribution of profits (summary of Article 23 of the
Articles of Association)
The General Meeting of shareholders shall have the power to
grant each shareholder the option of receiving all or part of the
dividend in cash or in shares in accordance with the applicable
statutory and regulatory provisions.
Dividends or interim dividends shall be paid under the conditions
provided for by law.
Conditions for the holding of General
Meetings (summary of Articles 18, 19 and 21
of the Memorandum and Articles of Association)
General Meetings shall be convened under the conditions laid
down by law and chaired by the Chairman of the Supervisory Board
or, if unavailable, by whichever member has been designated by
the Board.
The agenda shall be prepared as provided for by law.
General Meetings shall deliberate and decide in the conditions of
quorum and majority provided for by law.
Voting rights shall be exercised by usufructuaries at Ordinary
General Meetings and by bare owners at Extraordinary General
Meetings.
Shareholders may appoint proxies under the conditions provided
for by law.
Decisions taken by General Meetings in accordance with the
Memorandum and Articles of Association shall be binding on all
shareholders without exception. They shall be recorded in the
minutes signed by the officers of the meeting and kept in a special
register initialed and signed as provided for by law, held at the
registered office.
Legal documents
All legal documents relating to the company and notably the
Memorandum and Articles of Association, minutes of General
Meetings and Statutory Auditors’ reports may be consulted by
the shareholders at the company’s registered office.
www.fivesgroup.com
67

Fives 2007 Annual report
68

2007 consolidated financial statements
70 Consolidated balance sheet
72 Consolidated profit and loss statement
73 Consolidated cash flow statement
74 Notes to the consolidated financial statements
106 Auditors’ report on the consolidated
financial statements
www.fivesgroup.com
69

2007 consolidated financial statements
Consolidated balance sheet
Assets
In thousands of euros Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
FIXED ASSETS
Intangible assets (note 3.1) 1,449 1,748 5,124
Goodwill on consolidation (note 3.2) 81,500 73,026 64,368
Property, plant and equipment (note 3.3) 64,963 61,793 79,821
Investments (note 3.4) 9,522 9,773 10,070
CURRENT ASSETS
157,434 146,340 159,383
Inventories and work in progress (note 3.5) 81,369 82,913 102,497
Trade receivables (note 3.6) 293,277 280,887 343,200
Other receivables (note 3.7) 45,698 45,978 45,840
Marketable securities (note 3.8) 134,735 156,217 176,366
Cash and cash equivalents (note 3.8) 55,969 77,775 78,803
Prepayments (note 3.14) 4,436 4,133 4,428
615,484 647,903 751,134
TOTAL 772,918 794,243 910,517
Fives 2007 Annual report
70

Liabilities and shareholders’ equity
In thousands of euros Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
SHAREHOLDERS’ EQUITY (NOTE 3.9)
Share capital 17,733 17,733 24,042
Share premium 1,001
Reserves 96,378 109,294 102,441
Net profit 20,065 22,911 31,629
134,176 149,938 159,113
MINORITY INTERESTS (NOTE 3.9) 5,687 4,882 2,704
NEGATIVE GOODWILL (NOTE 3.2) 2,181 2,025 2,338
CONTINGENCY AND COST PROVISIONS (NOTE 3.10) 123,982 120,659 129,035
LIABILITIES
Borrowings and other debts (note 3.11) 90,330 93,284 77,962
Trade payables 210,623 212,282 280,178
Advances against contracts in progress (note 3.12) 104,408 119,795 153,727
Other payables (note 3.13) 99,487 90,412 104,372
Unearned income (note 3.14) 2,044 966 1,088
506,892 516,739 617,327
TOTAL 772,918 794,243 910,517
www.fivesgroup.com
71

2007 consolidated financial statements
Consolidated profit and loss statement
In thousands of euros 2005 2006 2007
SALES (NOTE 3.15) 914,256 1,024,921 1,137,270
Cost of sales (743,053) (816,696) (909,641)
GROSS PROFIT 171,203 208,225 227,629
Selling costs (40,279) (52,493) (53,652)
Administrative costs (77,386) (84,109) (91,275)
Research and development costs (7,978) (11,840) (12,808)
TOTAL OVERHEAD COSTS (125,643) (148,442) (157,735)
Other operating items 2,877 (1,606) 1,006
Employee profit sharing and bonus schemes (5,312) (5,078) (6,515)
OPERATING PROFIT (*)
43,125 53,099 64,385
Net financial income/(loss) (note 3.16) 2,857 (529) 1,498
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAXATION 45,982 52,570 65,883
Net exceptional income/(loss) (note 3.17) (3,666) (5,874) 738
Corporation tax (note 3.18)
NET PROFIT OF CONSOLIDATED COMPANIES
(10,431) (17,226) (24,590)
BEFORE AMORTIZATION OF GOODWILL 31,885 29,470 42,031
Group’s share in the net loss of companies in the process of being sold (3,795)
Amortization of goodwill on consolidation (6,520) (5,042) (9,126)
NET PROFIT 21,570 24,428 32,905
Minority interests 1,505 1,517 1,276
Net profit, Group share 20,065 22,911 31,629
EARNINGS PER SHARE (IN EUROS) (NOTE 3.20) 9.13 10.34 14.27
(*) Consolidated operating profit includes the impact linked to the revaluation of assets, in application of the accounting principles relating to assets, on allocation of the acquisition
price of the Cinetic Landis and Cinetic Sorting sub-groups respectively consolidated for the first time at the end of 2005 and in mid-2007. In respect of Cinetic Landis these adjustments
consisted of neutralizing the reversal of unrealized margins recognized in inventories in the opening balance sheets and the additional depreciation recorded as the result of the
revaluation of property, plant and equipment and amounted to a charge of €3,511 thousand in 2006. In respect of Cinetic Sorting, these adjustments resulted in an additional
charge of €374 thousand in 2007. Restated for the impact of these adjustments, operating profit came to €56,610 thousand in 2006 and €64,759 thousand in 2007.
Fives 2007 Annual report
72

Consolidated cash flow statement
In thousands of euros 2005 2006 2007
OPENING NET CASH POSITION 187,835 190,015 233,758
OPERATING ACTIVITIES
Net profit 21,570 24,428 32,905
Elimination of non-cash items:
amortization and depreciation 14,698 14,248 19,531
change in provision for retirement obligations and service awards (1,273) 1,120 (1,581)
net gains on disposal of fixed assets (232) (1,146) (1,130)
other items (4,618) 211 2,132
Changes in cash movements on operating activities 13,907 19,053 42,819
CASH PROVIDED BY OPERATING ACTIVITIES 44,052 57,914 94,676
INVESTING ACTIVITIES
Purchases of fixed assets (7,489) (9,391) (14,697)
Disposals of fixed assets 1,475 2,998 2,453
Net decrease (increase) in finance receivables (3,269) 32 (2,598)
Investments in companies (54,970) (9,404) (36,032)
Proceeds from disposals of companies 345 (1,336) (4)
CASH USED IN INVESTING ACTIVITIES (63,908) (17,101) (50,878)
FINANCING ACTIVITIES
Dividends paid (20,698) (4,845) (1,066)
Net (decrease) increase in borrowings 41,096 10,514 (20,334)
CASH FLOW PROVIDED BY (USED IN) FINANCING ACTIVITIES 20,398 5,669 (21,400)
Currency translation differences 1,638 (2,739) (3,151)
CLOSING NET CASH POSITION 190,015 233,758 253,005
INCREASE IN NET CASH POSITION 2,180 43,743 19,247
Comments on the principal components of the cash flow statement are provided in note 3.24.
www.fivesgroup.com
73

1. ACCOUNTING POLICIES
The consolidated financial statements are prepared in compliance
with French Law 85-11 of January 3, 1985, the Implementing
Decree of February 17, 1986 and CRC Regulation 99-02.
1.1 Changes in accounting principles
There were no changes in accounting principles in either 2006 or 2007.
1.2 Consolidation methods
Companies in which the Fives Group holds, directly or indirectly,
a majority of the voting rights are fully consolidated.
Companies in which Fives exercises joint control are consolidated
using the proportional method.
Investments in subsidiaries meeting the above criteria, but which
are not material in relation to the consolidated financial statements,
are not consolidated.
Companies are consolidated on the basis of their annual accounts
at December 31 adjusted where appropriate to comply with the
Group’s accounting policies. Inter-company transactions are
eliminated on consolidation.
Fives 2007 Annual report
74
2007 consolidated financial statements
Notes to the consolidated financial statements
The General Meeting of Shareholders of June 20, 2007 decided to change the company’s name from “Compagnie de Fives-Lille”
to “Fives” with effect from July 1, 2007.
1.3 Translation of accounts
of foreign subsidiaries
Balance sheets of foreign subsidiaries are translated into euro at
the exchange rates on the balance sheet date. Profit and loss statements
are translated at the average exchange rates for the
year. Translation differences are taken directly to reserves.
1.4 Goodwill on acquisition
Goodwill corresponds to the residual difference between the
purchase cost of the shares, plus the amount net of tax of any
acquisition expenses directly attributable to the transaction, and
the share of the net assets acquired appraised at the fair value
of the assets and liabilities acquired.
The identifiable assets and liabilities are valued based on the
situation of the company acquired on the date that the Group
makes the acquisition. If subsequent information results, prior to
the end of the first financial year following the first-time consolidation,
in the revised appraisal of the values determined for
inclusion in the consolidated balance sheet, these values are
adjusted, resulting in an adjustment to the goodwill amount.
Goodwill is amortized to the profit and loss statement on a
straight-line basis over a period not exceeding 20 years, and
generally over exactly 20 years. In the event that there is evidence
of a loss in value, an impairment test is performed. If the current
value of activities representing the goodwill is less than their net
book value on consolidation, a depreciation expense is recognized
for the difference.

1.5 Intangible assets
Research costs are expensed in the period in which they are
incurred. The Group also charges to expenses all development
costs as well as patent production and filing costs.
Business goodwill acquired that is recorded as an asset in the
balance sheet is not amortized. At the balance sheet date, if the
current value of business goodwill is less than the net book value,
a depreciation expense is recognized for the difference.This impairment
test is based on the actual and anticipated performance of
the activities representing the business goodwill, to which an
estimated market coefficient is applied.
Software and IT license rights are amortized on a straight-line
basis over their estimated useful lives.
1.6 Property, plant and equipment
Property, plant and equipment are valued at cost. A depreciation
schedule is established for each depreciable asset based on the
rate of consumption of the expected economic benefits according
to its likely utilisation. In the case of buildings and certain large
plants, when several material components of these assets provide
the business with economic benefits accruing at different rates,
each identified component is recognized individually and a
depreciation schedule specific to each component is used. The
straight-line method of depreciation is used in most cases.
An analysis of buildings resulted in a distinction being made between
the main structure of buildings (shell), depreciated over a period
of 30 to 50 years depending on the type of building, and three
of its components:
facade, waterproofing and finishings depreciated over a period
of 20 to 30 years;
plant and equipment, depreciated over a period of 15 to 20 years;
fixtures and fittings, depreciated over a period of 10 to 15 years.
The main structure of large plant items is amortized over a
period of 15 to 25 years depending on the type of machine.
Other components as well as small plant items, equipment and
tools are amortized over periods ranging from 5 to 15 years.
When the amounts are material, assets exploited under finance
leases are restated in the consolidated balance sheet by recording
the item as a fixed asset and recognizing the corresponding
borrowing as a liability in the balance sheet.
1.7 Investments
Shares in non-consolidated companies are stated at cost. If their
economic value falls below the gross value, a depreciation expense
is recognized for the difference. Economic value is determined
notably by reference to the company’s prospects and the
Group’s share in its net assets. Any depreciation is recorded first
against the cost of the shares, then, if applicable, against related
receivables, and a provision for contingencies is booked if required.
www.fivesgroup.com
75

2007 consolidated financial statements
1.8 Valuation methods and disclosure
requirements specific to long-term
contracts
Long-term contracts are defined as those that demonstrate all
the following characteristics:
execution periods are generally long, covering at least two
accounting periods;
contracts are negotiated one by one as single projects;
contracts are frequently very complex and/or involve a high
degree of integration, generally necessitating specific designs;
contractual revenues are linked to the achievement of guaranteed
performance levels within contractually defined deadlines.
The margin on completion of long-term contracts is estimated
on the basis of analyses of costs and revenues on completion,
which are updated periodically and consistently over the entire
duration of the contracts.
Sales and margins are recognized using the percentage-of-completion
method as contracts are executed. The percentage of
completion for each contract is calculated based on the ratio of
actual costs incurred to estimated costs on completion.
Work in progress on long-term contracts, valued at the direct
production cost plus the margin recognized given the percentage
of completion of the work, is recognized as an asset on the balance
sheet in “Trade receivables”, net of any advances received that
are less than the production cost plus the margin earned to date,
this analysis being performed for each contract individually.
On contracts in progress for which the advances received are
greater than the production cost plus the margin earned to date,
the surplus is recognized as a liability in the balance sheet in
“Excess advances received against contracts in progress”.
Fives 2007 Annual report
76
Probable losses on completion are recognized in full as soon as
they become foreseeable. The fraction of loss on completion that
exceeds the loss recognized given the percentage of completion
of the work is recognized as a liability in the balance sheet in
contingency provisions.
The percentage of completion is said to reach 100% on receipt
of provisional acceptance (or an equivalent event) for contracts
corresponding to the execution of integrated systems with an
overall performance commitment.Any additional expenses to be
incurred in order to obtain full acceptance are accrued to a cost
provision. Any expected warranty costs, however, are accrued to
a contingency provision.
1.9 Inventories and work in progress
(other than long-term contracts)
Sales of goods such as free-standing equipment and machinery
are deemed not to fall within the definition of long-term contracts.
Sales and margins are recognized on delivery of the goods concerned.
Inventories and work in progress (other than long-term contracts)
are valued at acquisition cost, determined using the weighted
average cost method, or production cost. Where appropriate, a
provision is raised to reduce this cost to estimated net realizable
value.
1.10 Marketable securities
Marketable securities are recorded in the balance sheet at acquisition
cost plus accrued interest at the year end, less any depreciation
where appropriate.

1.11 Translation of items denominated
in foreign currency
Amounts payable and receivable denominated in foreign currencies
are translated at the exchange rate ruling on the balance sheet date,
unless covered by a specific forward exchange contract.Translation
differences are recognized in the profit and loss statement.
1.12 Corporation tax
Deferred tax is calculated in respect of timing differences between
the tax and net book values of assets and liabilities reported in
the consolidated balance sheet. Deferred tax at the balance
sheet date is calculated under the liability method, i.e. at the
estimated tax rate applicable for the coming year.
No deferred tax asset is recorded unless recovery is reasonably
assured.
1.13 Retirement benefits
In compliance with legal requirements and market practices, Fives
Group companies pay retirement indemnities and supplementary
pension benefits to their employees.
The commitments are provided for at the balance sheet date
based on actuarial calculations after taking into account, where
applicable, the market value of plan assets.
Actuarial estimates are based on a number of long-term
assumptions that are reviewed annually, e.g. rate of salary
increases, expected return on plan assets, discount rate, etc.
Actuarial differences relating to commitments or plan assets arising
from changes in the actuarial assumptions used are amortized
over the estimated remaining working life of employees at the
period end for the portion exceeding 10% of the value of the
commitment or of the fair value of the assets.
1.14 Employee long-service awards
The provision for bonuses paid in respect of long-service awards
is calculated in accordance with IAS 19, taking into account all
categories of such awards. The provision is calculated in respect
of all employees present at the balance sheet date and is based
on actuarial assumptions, reflecting in particular: length of service,
life expectancy and staff turnover rate.The impact of changes in the
actuarial assumptions is recognized in the profit and loss statement
for the period.
1.15 Earnings per share
Basic earnings per share are calculated by dividing net profit for
the year by the weighted average number of shares in issue.
Treasury shares recorded under marketable securities are not restated
for calculation of the weighted average number of shares.
www.fivesgroup.com
77

2007 consolidated financial statements
2. CONSOLIDATION SCOPE
A list of companies included in the consolidation scope is provided
in note 3.25.
2.1 Changes in the consolidation
scope in 2007
First-time consolidation (acquisitions)
Setaram Engineering SAS absorbed by Solios Carbone
Acquired on December 31, 2006, Setaram Engineering SAS, a
French company specializing in heating and regulation systems
for anode baking furnaces was consolidated from January 1,
2007 using the full consolidation method. It was absorbed by
Solios Carbone on April 2, 2007, through the transfer of all its
assets.
Cinetic Sorting
On June 29, 2007, Fives Cinetic purchased the Sandvik Sorting
Systems from Swedish group Sandvik Aktiebolag at a cost of around
€23 million, entirely financed with cash. Renamed Cinetic Sorting,
this sub-group specializes in high-speed sorting systems and has
a leading position among postal and courier companies in the parcel
sorting segment. The sub-group is made up of three subsidiaries,
respectively based in Italy, the United States and Japan and
employed 265 people at December 31, 2007. Cinetic Sorting S.p.a.,
Cinetic Sorting Corp. and Cinetic Sorting K.K., together with Fives
Cinetic S.r.l., Fives Cinetic group’s new holding company in Italy,
are consolidated from July 1, 2007.
Fives 2007 Annual report
78
For allocation of the acquisition price, technology and patents
were valued at cost and the value of other assets, notably real
estate, inventories and work in progress, deferred tax assets and
provisions for retirement commitments, was reassessed. This
resulted in the allocation of the entire acquisition cost without
generating any residual goodwill.
On a pro forma basis, Cinetic Sorting generated sales of €84.3
million and operating profit of €4.5 million in 2007, excluding
the impact of asset value readjustments. Only the activity in the
second half is included in the consolidated figures. Cinetic Sorting
therefore contributed €41.2 million to consolidated sales and
€2.2 million to consolidated operating profit, excluding the
impact of asset value adjustments (€1.8 million after asset value
adjustments).
First-time consolidation (new companies)
Cinetic Service Slovakia s.r.o.
Cinetic Service Slovakia s.r.o. was set up by Cinetic Service to
develop its business in Slovakia.
Fives Cail KCP Ltd
Fives Cail KCP Ltd is a 40%-owned joint venture set up in
Chennai in southern India to manufacture equipment for the
sugar industry, mainly for the Indian market. Under the existing
agreements between Fives Cail and KCP, Fives Cail KCP Ltd is
consolidated using the proportional method.
Cement Process Technologies Egypt
Cement Process Technologies Egypt was formed by Fives FCB in
2007 to carry out the local work on the contract from the
Lafarge/Titan joint venture for a turnkey cement plant at Beni
Suef in Egypt.

First-time consolidation (linked to merger by absorption)
As part of streamlining Group structures, Fives absorbed its
parent company, Financière F.L.The latter was therefore included
in the consolidation scope on December 20, 2007, being the
date on which the merger was approved by the two companies’
respective General Meetings.
Prior to the merger, Financière F.L.’s parent company, FL Investco,
converted to equity the loan granted to Financière F.L.Therefore,
the assets and liabilities contributed by Financière F.L. consist
mainly of cash, an amount owing to Fives, and shares in Fives
which were cancelled by the same General Meeting. In addition,
Fives has assumed Financière F.L.’s commitments in respect of
its stock-option plan.
Given the date of first consolidation, Financière F.L. had no impact
on consolidated earnings, with the exception of a tax loss transferred
to Fives due to the retroactive nature of the transaction,
part of which was recorded as a deferred tax asset in the consolidated
financial statements. Neither will the merger have any
impact on the Group’s future earnings given the composition of
the assets transferred.
Increase in percentage owned
On June 4, 2007, Fives Stein bought all the shares owned by
MECC in their former joint venture Shanghai Stein Heurtey
MECC Industry Furnace Co. Ltd, thereby raising its stake in the
company from 51% at December 31, 2006 to 99.99% at
December 31, 2007. The company has been renamed Stein
(Shanghai) Industrial Furnace Co. Ltd.
The contribution of newly consolidated companies to the main
headings in the consolidated balance sheet as at December 31,
2007 was as follows:
CONTRIBUTIONS TO THE CONSOLIDATED BALANCE SHEET
Of which
In thousands of euros Dec. 31, 2007 Cinetic Sorting
Goodwill on consolidation 2,339
Intangible assets 3,209 2,844
Property, plant and equipment 12,067 12,065
Investments 775 768
Inventories and work in progress 4,539 4,167
Trade receivables 34,368 29,136
Other receivables 4,870 3,011
Marketable securities and cash 11,031 9,910
Contingency and cost provisions 9,480 9,470
Borrowings and other debts 1,990 1,880
Trade payables 22,495 18,766
Advances against contracts in progress 9,780 3,277
Other payables 16,081 4,452
The contribution of newly consolidated companies to the main
headings in the consolidated profit and loss statement for the
year ended December 31, 2007 was as follows:
CONTRIBUTIONS TO THE CONSOLIDATED PROFIT
AND LOSS STATEMENT
In thousands of euros 2007
Of which
Cinetic Sorting
Sales 60,131 41,204
Operating profit 3,669 1,811
Removal from the consolidation scope
Cinetic Cleaning & Machining Corp., which had no trading activity
in 2007, was wound up and removed from the consolidation scope.
www.fivesgroup.com
79

2007 consolidated financial statements
2.2 Changes in the consolidation
scope in 2006
First-time consolidation
Cinetic DyAG Corp.;
Cinetic Service UK Ltd;
Fives-Lille do Brasil Ltda;
Solios Services Southern Africa (PTY) Ltd.
The four companies consolidated for the first time in 2006 are
99.99% owned by the Group and had not previously been
consolidated as their contribution to the Group’s results had not
been considered material.
Their contribution to the main headings in the consolidated
balance sheet and profit and loss statement for the year ended
December 31, 2006 was as follows:
CONTRIBUTIONS TO THE CONSOLIDATED BALANCE SHEET
In thousands of euros Dec. 31, 2006
Property, plant and equipment 268
Inventories and work in progress 495
Trade receivables 2,744
Other receivables 119
Marketable securities and cash 1,677
Contingency and cost provisions 57
Trade payables 1,412
Advances against contracts in progress 495
Other payables 409
Fives 2007 Annual report
80
CONTRIBUTIONS TO THE CONSOLIDATED PROFIT
AND LOSS STATEMENT
In thousands of euros 2006
Sales 11,474
Operating profit 439
The Cinetic Landis sub-group, acquired on December 9, 2005,
was consolidated at the end of 2005 on the basis of the opening
balance sheet alone. It therefore had no impact on consolidated
profit or loss before 2006. In 2006, it contributed €130,424 thousand
to sales and €11,522 thousand to operating profit.
Removal from the consolidation scope
SCI Chariot d’Argent;
BGE Holding.
Following the sale of the land it owned at Lagny-sur-Marne
(France), the property company SCI Chariot d’Argent went into
liquidation on December 28, 2006. BGE Holding, a subsidiary
with no trading activity, was wound up during the year with the
aim of simplifying the structure of investments in Belgium.
The contributions of these companies to the main headings in
the consolidated balance sheet and profit and loss statement for
the year ended December 31, 2005 were not material.

3. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of euros)
3.1 Intangible assets
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Business goodwill 2,595 2,813 2,850
Research and development 280
Patents, licenses and trademarks 9,369 9,568 13,000
Other intangible assets 2,007 2,105 2,654
GROSS VALUE 13,971 14,486 18,784
Business goodwill (2,528) (2,469) (2,469)
Research and development (20)
Patents, licenses and trademarks (8,204) (8,345) (9,021)
Other intangible assets (1,790) (1,924) (2,150)
ACCUMULATED AMORTIZATION AND DEPRECIATION (12,522) (12,738) (13,660)
NET BOOK VALUE 1,449 1,748 5,124
Intangible assets do not include expenses arising on research and development produced internally. The increase in intangible assets
in 2007 is explained for €2.4 million by Fives Cinetic’s acquisition of all Cinetic Sorting’s business patents (see note 2.1) acquired
with the shareholdings in the three companies and, to a lesser extent, by the value assigned to Setaram Engineering technology upon
first-time consolidation.
www.fivesgroup.com
81

2007 consolidated financial statements
3.2 Goodwill on consolidation
Amortization Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Positive goodwill period Net Net Gross Amortization Net
Fives Cinetic 20 23,189 21,258 38,646 (19,324) 19,322
Cinetic Landis 20 38,172 33,743 33,757 (3,420) 30,337
Cinetic Filling 20 10,929 10,322 12,143 (6,129) 6,014
Cinetic Automation Corp. 20 6,971 5,798 7,980 (3,192) 4,788
Fives Fletcher Ltd 20 1,865 1,704 3,212 (1,669) 1,543
Solios Carbone 6 2,807 (468) 2,339
Fives Stein Belgium S.A. 10 309 156 1,535 (1,535) 0
Fives Cryomec AG 10 65 45 201 (176) 25
TOTAL 81,500 73,026 100,281 (35,913) 64,368
First-time consolidation of Setaram Engineering resulted in recognition of positive goodwill amounting to €2,807 thousand. Setaram
Engineering was absorbed by Solios Carbone in the first half of 2007.
Impairment tests at December 31, 2007 resulted in recognition of additional amortization of goodwill on Cinetic Filling amounting
to €3,700 thousand.
Negative goodwill Amortization period Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Nordon 20 2,181 2,025 1,871
Stein (Shanghai) Industrial Furnace Co. Ltd 5 467
TOTAL 2,181 2,025 2,338
Fives Stein’s buyout of minority interests in Stein (Shanghai) Industrial Furnace Co. Ltd resulted in recognition of negative goodwill
amounting to €529 thousand, amortized through profit and loss over a period of five years.
Fives 2007 Annual report
82

3.3 Property, plant and equipment
Changes in
consolidation
Dec. 31, 2005 Dec. 31, 2006 Acquisitions Disposals scope and other Dec. 31, 2007
Land and land improvements 10,455 9,449 15 (404) 1,520 10,580
Leasehold land 1,023 1,023 237 1,260
Buildings 53,881 53,492 1,107 (1,265) 9,666 63,000
Leasehold buildings 5,597 5,597 4,254 9,851
Plant, equipment and tooling
Leasehold plant, equipment
55,841 58,284 3,608 (914) 8,803 69,781
and tooling 668 668
Other assets 28,737 28,372 2,722 (2,514) 1,766 30,346
Assets under construction 1,495 704 5,901 (76) (1,621) 4,908
Payments on account 171 547 389 (107) (722) 107
GROSS VALUE 157,200 157,468 18,901 (5,280) 19,412 190,501
Changes in
Expense for consolidation
Dec. 31, 2005 Dec. 31, 2006 the year Writebacks scope and other Dec. 31, 2007
Land and land improvements (77) (89) (12) (101)
Buildings (34,586) (35,750) (1,842) 99 (2,374) (39,867)
Leasehold buildings (497) (750) (375) (1,125)
Plant, equipment and tooling
Leasehold plant, equipment
(34,425) (36,664) (4,512) 727 (5,197) (45,646)
and tooling (42) (42)
Other assets (22,596) (22,366) (2,444) 2,406 (1,439) (23,843)
Assets under construction (56) (56) (56)
ACCUMULATED AMORTIZATION
AND DEPRECIATION (92,237) (95,675) (9,227) 3,232 (9,010) (110,680)
NET BOOK VALUE 64,963 61,793 79,821
At December 31, 2007, the contribution to the net book value of property, plant and equipment of companies consolidated for the
first time in 2007 totaled €12,067 thousand. At December 31, 2006, the contribution to the net book value of property, plant and
equipment of companies consolidated for the first time in 2006 totaled €46 thousand.
www.fivesgroup.com
83

2007 consolidated financial statements
3.4 Investments
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Investments in affiliates 17,400 16,224 8,190
Related loans and advances and other investments 17,210 16,445 13,560
GROSS VALUE 34,610 32,669 21,750
Investments in affiliates (14,233) (12,801) (6,905)
Related loans and advances and other investments (10,855) (10,095) (4,775)
ACCUMULATED DEPRECIATION (25,088) (22,896) (11,680)
NET BOOK VALUE 9,522 9,773 10,070
“Investments in affiliates” are composed of:
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Net Net Gross Depreciation Net
Procedair Benelux 1,790 369 725 (541) 184
Nordon Cryogénie (Suzhou) Co. Ltd 300 300
Fives-Lille China 169 169 239 239
Pillard Tianjin 167 167 167 167
Stein Heurtey Vostok 29 29
Setaram Engineering* 2,250
Cinetic DyAG Corp.** 212
SCI Jura-Rhône*** 210
Other 619 468 6,730 (6,364) 366
TOTAL 3,167 3,423 8,190 (6,905) 1,285
* Consolidated as from 2007.
** Consolidated as from 2006.
*** Wound up on October 27, 2006 by the transfer of all its assets to Fives Cinetic.
Nordon Cryogénie (Suzhou) Co. Ltd and Stein Heurtey Vostok were created in 2007 by Fives Cryo and Fives Stein to develop their
businesses in China and Russia.
Fives 2007 Annual report
84

Shareholders’ equity and profit of non-consolidated companies broke down as follows at December 31, 2007:
Shareholders’ 2007 net
At December 31, 2007 % held equity* profit
Procédair Benelux (Belgium) 99.99 222 31
Nordon Cryogénie (Suzhou) Co. Ltd (China) 100.00 300 N/A
Fives-Lille China (China) 100.00 61 199
Pillard Tianjin (China) 100.00 344 122
Stein Heurtey Vostok (Russia) 100.00 29 N/A
* 100% of shareholders’ equity at December 31, 2007 including profit for the year.
“Related loans and advances and other investments” includes mainly receivables relating to non-consolidated equity interests, loans
extended in connection with government home-ownership incentive schemes and marketable securities of which Fives is merely the
bare owner.
The decrease in the gross value of “Related loans and advances and other investments” and in accumulated depreciation in 2007 is
essentially due to the removal from the scope of two subsidiaries with no trading activities.
3.5 Inventories and work in progress
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Raw materials 34,735 33,061 36,195
Work in progress on contracts accounted for by the completion method 51,207 50,879 58,661
Semi-finished and finished goods 8,505 9,418 18,895
GROSS VALUE 94,447 93,358 113,751
Raw materials (8,312) (7,857) (7,359)
Work in progress on contracts accounted for by the completion method (2,426) (1,021) (898)
Semi-finished and finished goods (2,340) (1,567) (2,997)
ACCUMULATED DEPRECIATION (13,078) (10,445) (11,254)
NET BOOK VALUE 81,369 82,913 102,497
At December 31, 2007, the net book value of inventories and work in progress for companies consolidated for the first time in 2007
totaled €4,539 thousand. At December 31, 2006, the net book value of inventories and work in progress of companies consolidated
for the first time in 2006 totaled €495 thousand.
www.fivesgroup.com
85

2007 consolidated financial statements
3.6 Trade receivables
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Work in progress to be invoiced 125,293 124,463 153,918
Invoices outstanding for completed work 175,152 164,237 198,708
GROSS VALUE 300,445 288,700 352,626
Depreciation on invoices outstanding for completed work (7,168) (7,813) (9,426)
NET BOOK VALUE 293,277 280,887 343,200
At December 31, 2007, the net book value of trade receivables of companies consolidated for the first time in 2007 totaled €34,368
thousand. At December 31, 2006, the net book value of trade receivables of companies consolidated for the first time in 2006 totaled
€2,744 thousand.
3.7 Other receivables
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Income taxes 4,316 4,551 2,977
Deferred tax assets 20,106 21,481 20,842
Sale of fixed assets 23
VAT receivables 13,718 13,351 12,536
Other 9,568 8,455 11,229
GROSS VALUE 47,731 47,838 47,584
VAT receivables (135) (37) (27)
Other receivables (1,898) (1,823) (1,717)
ACCUMULATED DEPRECIATION (2,033) (1,860) (1,744)
NET BOOK VALUE 45,698 45,978 45,840
At December 31, 2007, the net book value of other receivables of companies consolidated for the first time in 2007 totaled €4,870 thousand.
At December 31, 2006, the net book value of other receivables of companies consolidated for the first time in 2006 totaled €119 thousand.
Fives 2007 Annual report
86

Income taxes
Income tax receivables consisted mainly of excess amounts paid on account compared with the actual tax due for the year.
Deferred tax assets
Deferred tax assets correspond for the most part to timing difference relating in particular to provisions for retirement commitments
(see. note 3.18).
3.8 Marketable securities and cash
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Net book Market Net book Market Net book Market
value value value
Mutual funds and other listed securities 125,428 125,428 141,299 141,299 156,289 156,291
Negotiable debt securities 9,309 14,920 19,736
Treasury shares (see note 3.9.) 343
Depreciation (2) (2) (2)
MARKETABLE SECURITIES 134,735 156,217 176,366
CASH AND CASH EQUIVALENTS 55,969 77,775 78,803
TOTAL 190,704 233,992 255,169
At December 31, 2007, marketable securities and cash of companies consolidated for the first time in 2007 totaled €11,031 thousand.
At December 31, 2006, marketable securities and cash of companies consolidated for the first time in 2006 totaled €1,677 thousand.
www.fivesgroup.com
87

2007 consolidated financial statements
3.9 Change in shareholders’ equity and minority interests
CHANGES IN GROUP SHAREHOLDERS’ EQUITY
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
At January 1 133,146 134,176 149,938
Change in translation adjustment 2,395 (4,472) (4,394)
Net profit 20,065 22,911 31,629
Dividends paid (20,014) (2,660)
Net contributions from the merger by absorption of Financière Alexandre III (2,329) (19)
Net contributions from the merger by absorption of Financière F.L. (18,060)
Retroactive application of new regulations concerning assets 913
Other 2
AT DECEMBER 31 134,176 149,938 159,113
Share capital and merger by absorption of Financière F.L.
At December 31, 2006, Fives’ share capital totaled €17,733,128 and consisted of 2,216,641 fully paid up shares with a par value of
€8 each.
The merger with Financière F.L. on December 20, 2007 resulted in Fives issuing 2,162,933 new shares as payment for the net assets
transferred. The transfers included 2,193,962 of its own shares, which the General Meeting voted to cancel immediately after approval
of the merger. Following the merger and capital reduction, Fives incorporated reserves by increasing the par value of its shares by €3
each. Therefore, at December 31, 2007, Fives’ share capital totaled €24,041,732 and consisted of 2,185,612 fully paid up shares with
a par value of €11 each. These shares are in registered form. There are no other securities conferring rights to subscribe to the
Company’s shares.
The contribution from the merger with Financière F.L. on December 20, 2007 net of merger expenses and the impact of the cancellation
of the Fives shares transferred reduced shareholders’ equity by €18,060 thousand.
Shareholders
On December 31, 2006, 98.98% of Fives share capital was held by Financière F.L., which was owned by FL Investco.
Following the merger of Financière F.L. with Fives, the main shareholder is now FL Investco with 98.07% of the capital as at December 31,
2007. FL Investco is owned by the investment funds managed by Charterhouse General Partners (VIII) Limited.
Fives 2007 Annual report
88

Dividends
Fives did not pay any dividends in 2007.
The Ordinary and Extraordinary General Meeting held on June 16, 2006 agreed the distribution of a dividend of €2,660 thousand.
The Ordinary General Meeting held on June 3, 2005 agreed the distribution of a dividend of €20,014 thousand.
Takeover of Financière F.L.’s stock option plan
As a result of the merger by absorption of Financière F.L., Fives has assumed the rights and obligations formerly incumbent on
Financière F.L. in respect of the stock options allocated to Group employees on February 17, 2005 and not yet exercised at the date
of the merger. Fives received by asset transfer 19,504 own shares with a total value of €343 thousand (see note 3.8) covering the
obligations to the stock option plan’s 25 beneficiaries. The exercise period for these options begins at the end of a four-year lock-in
period as from the allocation date.
Changes in accounting principles relative to prior years
First-time application of accounting standards concerning assets in 2005
CRC Regulations No.2002-10 and No.2004-06 relating to the definition, appraisal and depreciation of assets were applied retroactively, i.e.
the impact of the change was calculated as if the new rules had always been applied. The changes in the net book values of assets
resulting from the application of these new rules were offset by increasing reserves by their amount net of tax, i.e. €913 thousand.
CHANGES IN MINORITY INTERESTS
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
At January 1 4,657 5,687 4,882
Change in translation adjustment 196 (134) (75)
Share of net profit 1,505 1,517 1,276
Dividends paid to minority interests (687) (2,185) (1,066)
Retroactive application of new regulations concerning assets 2
Changes in consolidation scope 14 (2,313)
Other (3)
AT DECEMBER 31 5,687 4,882 2,704
The change in minority interests in 2007 reflects Fives Stein’s buyout of minority interests in Stein (Shanghai) Industrial Furnace Co. Ltd
(see note 2.1).
www.fivesgroup.com
89

2007 consolidated financial statements
3.10 Contingency and cost provisions
CONTINGENCY PROVISIONS
Changes in
consolidation
Dec. 31,2005 Dec. 31,2006 Increases Decreases scope and other Dec. 31,2007
Guarantees 39,423 33,432 25,114 (23,037) 3,848 39,357
Disputes 7,503 8,894 5,085 (2,027) 25 11,977
Future losses on contracts 927 967 1,914 (1,420) 549 2,010
Other contingency provisions 5,452 4,883 2,091 (2,908) 1,171 5,237
COST PROVISIONS
Completed contracts 22,675 22,790 21,823 (19,398) (370) 24,845
Restructuring 2,234 3,899 470 (3,610) (3) 756
Employee long-service awards 454 449 72 (54) (1) 466
Retirement benefits 43,032 44,075 6,481 (8,071) 527 43,012
Other cost provisions 1,975 1,139 989 (968) (2) 1,158
Deferred tax liabilities 307 131 465 (322) (57) 217
TOTAL 123,982 120,659 64,504 (61,815) 5,687 129,035
At December 31, 2007, contingency and cost provisions of companies consolidated for the first time in 2007 totaled €9,480 thousand.
At December 31, 2006, contingency and cost provisions of companies consolidated for the first time in 2006 totaled €57 thousand.
Contingency provisions
Provisions for guarantees cover the estimated future costs that may be incurred during the warranty period for orders, following
provisional acceptance or an equivalent event.
Known disputes that may involve companies of the Fives Group are reviewed at the time that the accounts are prepared and, following
consultation with legal advisers, any provisions deemed necessary are set aside to cover such contingencies.
Future losses on contracts in progress are recognized as soon as they can be foreseen by recording a provision as a liability in the
balance sheet corresponding to the amount by which the loss on completion exceeds the loss recognized under the percentage of
completion method of measuring work in progress.
Other contingency provisions cover mainly technical and geopolitical risks.
Fives 2007 Annual report
90

Employee long-service awards
The provision for bonuses paid in respect of long-service awards was calculated using a discount rate of 5.5% at December 31, 2007
and 4.4% at December 31, 2006 and December 31, 2005.
Retirement benefits
The provision for retirement benefits and other benefits granted to employees relates to the following defined benefit plans operated
within the Group:
France: retirement indemnities;
Italy: contractual departure indemnities (TFR);
United Kingdom, Germany, Japan and France: supplementary retirement benefit plans - all these plans, with the exception of the
Cinetic Landis Ltd and Cinetic Sorting K.K. plans, have been closed and the vested rights frozen at the date of closure;
post-retirement healthcare for the American employees of Cinetic Landis Corp.
Commitments are calculated on the basis of actuarial assumptions that are reviewed annually. The discount rates and expected
returns on plan assets used as at December 31, 2006 and December 31, 2007 were as follows:
At December 31, 2007 Euro zone United Kingdom United States Japan
Discount rate 5.5% 5.9% 5.75% 1.3% – 2.0%
Expected return on plan assets 4.2% 6.0% – 8.0% 3.5%
At December 31, 2006 Euro zone United Kingdom United States
Discount rate 4.5% 5.1% – 5.2% 5.75%
Expected return on plan assets 4.0% 5.5% – 7.3%
The assumptions in terms of salary and healthcare cost increases used for the calculation of these commitments were as follows:
Retirement indemnities or supplementary Post-retirement
At December 31, 2007 retirement commitments healthcare
Euro zone United Kingdom United States
Rate of salary increase 2.0% – 2.5% 3.3% – 4.0%
Rate of increase in healthcare costs 5.0% – 9.5%
Retirement indemnities or supplementary Post-retirement
At December 31, 2006 retirement commitments healthcare
Euro zone United Kingdom United States
Rate of salary increase 2.5% – 3.0% 3.0% – 3.75%
Rate of increase in healthcare costs 5.0% – 8.5%
www.fivesgroup.com
91

2007 consolidated financial statements
The present value of defined benefit obligations at December 31, 2007 totaled €119,261 thousand.Taking into account the fair value
of the various plan assets at December 31, 2007, the net commitment at that date amounted to €49,604 thousand versus €58,393
thousand at December 31, 2006. The decrease in the net commitment during the period, despite an additional commitment of
€3,246 thousand resulting from changes in the consolidations scope, reflects mainly the rise in interest rates during the year and, to
a lesser extent, the cancellation of medical care benefits for some American employees.
A provision of €43,012 thousand was recognized in the consolidated financial statements as at December 31, 2007; the difference
of €6,592 thousand compared with the net commitment consisted mainly of unrecognized actuarial deficits.
The portion of these actuarial differences exceeding 10% of the corresponding liability or fair value of the plan assets is amortized
over the employees’ remaining working life, as estimated at the year end.
In 2007, the expense corresponding to the cost of services rendered, the effect of reversing the discounting of the commitment net
of the expected return on plan assets, the amortization of actuarial differences and past service costs, and the gain or loss arising on
reductions or liquidations of retirement plans, came to €3,574 thousand.
The actuarial assumptions used to calculate the commitments at December 31, 2007 relating to retirement indemnities for French
employees take into account the changes introduced by the 2008 social security financing law relating, in particular, to the contributions
paid to the Caisse nationale d’assurance vieillesse (French State pension scheme).
Fives 2007 Annual report
92

Supplementary Post-
Retirement retirement retirement
indemnities commitments healthcare
France Italy United Kingdom Euro zone Japan United States TOTAL
CHANGE IN THE DISCOUNTED VALUE OF THE LIABILITY
Discounted value of the liability at January 1, 2007 13,218 1,320 107,697 3,275 2,599 128,109
Cost of services rendered during the year 733 377 2,412 90 103 17 3,732
Effect of discounting 597 5,395 146 43 80 6,261
Employees contributions 675 675
Plan reductions/liquidations (1,432) (1,432)
First-time consolidation 60 2,443 4,017 6,520
Benefits paid (1,929) (605) (2,638) (177) (107) (268) (5,724)
New actuarial differences 335 (9,723) (211) 140 (252) (9,711)
Foreign exchange differences (8,825) (199) (145) (9,169)
Discounted value of the liability 13,014 3,535 94,993 3,123 3,997 599 119,261
at December 31, 2007
CHANGE IN THE FAIR VALUE OF PLAN ASSETS
Fair value of plan assets at January 1, 2007 654 68,945 117 69,716
Actual return on plan assets 23 2,895 9 (170) 2,757
Employer’s contributions 2,650 5 96 2,751
Employees contributions 675 675
First-time consolidation 3,274 3,274
Benefits paid by the plan (154) (2,638) (40) (485) (3,317)
Foreign exchange differences (6,053) (146) (6,199)
Fair value of plan assets 523 66,474 91 2,569 69,657
at December 31, 2007
ANALYSIS OF AMOUNTS RECOGNISED IN THE FINANCIAL STATEMENTS
Excess of retirement commitments
over value of funds
12,491 3,535 28,519 3,032 1,428 599 49,604
Actuarial net gain (loss) not recognized (5,415) (1,516) 451 (361) 249 (6,592)
Net provision at December 31, 2007 7,076 3,535 27,003 3,483 1,067 848 43,012
ANALYSIS OF THE NET LOSS (GAIN) RECOGNIZED IN 2007
Cost of services rendered during the year 733 377 2,412 90 103 17 3,732
Effect of discounting 597 5,395 146 43 80 6,261
Expected return on plan assets (26) (4,382) (5) (55) (4,468)
Amortization of cost of past services (2,452) (2,452)
Amortization of actuarial differences 211 347 (11) (46) 501
Net loss (gain) recognized in 2007 1,515 377 3,772 220 91 (2,401) 3,574
CHANGE IN THE PROVISION FOR RETIREMENT AND OTHER BENEFITS GRANTED
Provision at January 1, 2007 7,276 1,320 28,345 3,405 3,729 44,075
Employer’s contributions (2,650) (5) (96) (2,751)
Net loss (gain) recognized in 2007 1,515 377 3,772 220 91 (2,401) 3,574
Benefits paid directly by the employer (1,775) (605) (137) 378 (268) (2,407)
First-time consolidation 60 2,443 743 3,246
Foreign exchange differences (2,464) (49) (212) (2,725)
Provision at December 31, 2007 7,076 3,535 27,003 3,483 1,067 848 43,012
www.fivesgroup.com
93

2007 consolidated financial statements
3.11 Borrowings and other debt
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Bank borrowings 67,548 66,563 59,927
Finance leases
Amounts classified as debt (employee profit-sharing schemes
5,973 5,628 10,220
grants, deposits received and other debt) 16,120 20,859 5,994
Bank overdrafts 689 234 1,821
TOTAL 90,330 93,284 77,962
Of which, amounts due in:
less than 1 year 12,107 22,101 16,363
1 to 5 years 64,720 49,336 55,248
over 5 years
Of which, secured by collateral:
13,503 21,847 6,351
mortgages 180
pledges 67,218 66,563 58,066
At December 31, 2007, borrowings and other debt of companies consolidated for the first time in 2007 totaled €1,990 thousand.
At December 31, 2006, borrowings and other debt of companies consolidated for the first time in 2006 were nil.
Bank borrowings
Bank borrowings consist mainly of the loan contracted by Fives Cinetic from the lending banks represented by The Royal Bank of
Scotland. This loan is a variable-rate loan made up of three separate tranches respectively denominated in EUR, USD and GBP and
representing a total of €58 million at December 31, 2007. Of the €8.6 million decrease compared with end-2006, €4.5 million
corresponds to loan repayments with changes in exchange rates accounting for the remainder. The various clauses that could lead to
early repayment of this bank loan did not apply as at December 31, 2007.
Since 2007, this heading also includes a bank loan of €1.9 million contracted by Cinetic Sorting S.p.a. prior to its acquisition by the Group.
Finance leases
Finance lease liabilities, which at December 31, 2006 corresponded mainly to the acquisition by Cinetic Assembly of its head office
under a finance lease, also included the financing of Cinetic Filling’s head office at December 31, 2007.
Fives 2007 Annual report
94

Amounts classified as debt
The decrease in amounts classified as debt between December 31, 2006 and December 31, 2007 is essentially due to repayment by
Fives of temporary cash advances from FL Investco and by payment of the USD 10 million vendor credit granted by Unova in connection
with the acquisition of the Landis group’s assets.
3.12 Advances against contracts in progress
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Advances against contracts accounted for by the completion method 18,837 29,595 32,373
Excess of advances received over value of work in progress (note 1.8) 85,571 90,200 121,354
TOTAL 104,408 119,795 153,727
At December 31, 2007, advances against contracts in progress for companies consolidated for the first time in 2007 totaled €9,780
thousand. At December 31, 2006, advances against contracts in progress for companies consolidated for the first time in 2006 totaled
€495 thousand.
3.13 Other liabilities
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Income tax liabilities 13,257 9,742 20,173
Tax and social security liabilities 62,766 66,100 70,874
Amounts due on acquisitions of fixed assets 12,853 4,985 2,092
Other payables 10,611 9,585 11,233
TOTAL 99,487 90,412 104,372
At December 31, 2007, other liabilities for companies consolidated for the first time in 2007 totaled €16,081 thousand.
At December 31, 2006, other liabilities for companies consolidated for the first time in 2006 totaled €409 thousand.
www.fivesgroup.com
95

2007 consolidated financial statements
3.14 Prepayments and unearned income
All items included in prepayments and unearned income recorded as assets and liabilities in the balance sheet are due in less than
one year.
3.15 Analysis of sales by geographic region
2005 2006 2007
France 217,917 228,527 244,834
Europe (excluding France) 139,455 182,256 207,131
Africa and Middle East 167,645 157,379 226,074
North America 135,963 163,537 143,947
Central and South America 18,660 16,424 29,170
ASEAN countries 23,364 45,187 39,225
China 153,325 194,125 179,467
Rest of Asia and Oceania 57,927 37,486 67,422
TOTAL 914,256 1,024,921 1,137,270
3.16 Net financial income/(loss)
2005 2006 2007
Interest income 2,521 4,105 5,275
Net gain on disposals of marketable securities 1,561 1,740 2,841
Dividends from non-consolidated affiliates 51 679 301
Foreign exchange gains (losses) 742 (1,475) (648)
Net provision against investments and related receivables 14 (509) (434)
Interest expense (2,047) (5,524) (5,849)
Other 15 455 12
TOTAL 2,857 (529) 1,498
The increase in interest expense as from 2006 is due to the financing with bank borrowings and vendor credit of the acquisition of
the Landis assets. The USD 10 million vendor credit granted by Unova in connection with the acquisition of the Landis group’s assets
was repaid in December 2007.
Fives 2007 Annual report
96

3.17 Net exceptional income/(loss)
2005 2006 2007
Net restructuring costs (1,389) (5,452) (1,167)
Financing costs (1,086) (1,421)
Net impact of fixed asset disposals 52 1,087 963
Net profit prior to first-time consolidation 171 533
Other (1,243) (259) 409
TOTAL (3,666) (5,874) 738
The net restructuring costs incurred in 2006 related mainly to charges for which provisions were raised at some of the automotive
division’s French subsidiaries.
Financing costs in 2005 and 2006 correspond to bank and legal fees linked to arranging bank financing for Fives Cinetic in 2005,
notably in the context of the acquisition of the Landis assets, and to the debt refinancing carried out in July 2006.
Net gains on disposals of fixed assets in 2007 resulted mainly from the disposal of various real estate and investments. Net gains on
disposals of fixed assets in 2006 resulted mainly from the disposal of various real estate, notably the Lagny-sur-Marne site held by
SCI Chariot d’Argent.
In 2007, net profit prior to first-time consolidation related to the net prior year profit of Cinetic Service Slovakia s.r.o. and
Fives Cail KCP Ltd (see note 2.1). In 2006, it related to the net prior year profit of Cinetic DyAG Corp., Cinetic Service UK Ltd,
Fives Lille do Brasil Ltda and Solios Services Southern Africa (PTY) Ltd net of provisions raised by their parent companies.
3.18 Corporation tax
2005 2006 2007
French companies included in the tax group* (11,656) (12,675) (16,877)
French companies not included in the tax group (642) (650) (788)
Foreign companies (2,953) (4,176) (6,594)
Sub-total: income tax (15,251) (17,501) (24,259)
Change in deferred tax 4,820 275 (331)
TOTAL (10,431) (17,226) (24,590)
* Including foreign taxation of €(130) thousand in 2005, €(241) thousand in 2006 and €(1,309) thousand in 2007 paid by permanent establishments.
www.fivesgroup.com
97

2007 consolidated financial statements
French income tax
The composition of the tax group formed since 2007 by FL Investco and French subsidiaries that are, directly or indirectly, more than
95%-owned, is described in note 3.25. The tax saving arising from offsetting the taxable results of loss-making companies against
the taxable results of profit-making companies in calculating the group tax position is recognized in FL Investco’s consolidated financial
statements. Up to the end of 2006, it was recognized in the consolidated financial statements of Financière F.L.
Foreign income tax
Companies consolidated for the first time in 2007 contributed €1.3 million to the Group’s current income tax expense. In 2006, current
income tax relating to Landis companies amounted to €1.7 million after taking into account the impact of group tax relief in the
United Kingdom.
Deferred taxes
Deferred tax assets are recognized only when there are reasonable prospects of them being utilized.
At December 31, 2007, deferred tax assets in the consolidated balance sheet totaled €20,842 thousand, while deferred tax liabilities
totaled €217 thousand.
Deferred tax recognized corresponds mainly to temporary differences between the net book value of an asset or liability and its tax
value. At December 31, 2005, a deferred tax asset of €1,130 thousand was recognized relating to the carried-forward loss of Fives. As
a result of the change in 2007 of the company heading the tax group, this deferred tax asset was wholly reversed in 2006. At
December 31, 2007, carried-forward losses recognized as deferred tax assets amounted to €2,117 thousand, of which €1,775 thousand
relating to Fives and €342 thousand relating to Cinetic Sorting S.p.a.
Analysis of 2007 tax expense
CONSOLIDATED PROFIT BEFORE TAX 57,495
Theoretical tax expense (at 33.33%) 19,165
Permanent differences 1,357
Current year tax losses not utilized 4,760
Change in tax assets on timing differences not recognized (220)
Other (472)
CURRENT AND DEFERRED TAX EXPENSE 24,590
Fives 2007 Annual report
98

3.19 Market segment information
2005 2006 2007
ORDER INTAKE
Automotive/Logistics 195,562 299,548 339,539
Cement 128,438 268,118 230,382
Energy/Sugar 195,770 213,735 289,851
Metals 434,031 426,214 646,404
Other (including inter-division eliminations) (573) (1,052) (3,213)
TOTAL 953,228 1,206,563 1,502,963
SALES
Automotive/Logistics 218,968 311,436 315,648
Cement 188,891 157,306 196,179
Energy/Sugar 146,075 177,719 226,671
Metals 360,973 379,144 400,212
Other (including inter-division eliminations) (651) (684) (1,440)
TOTAL 914,256 1,024,921 1,137,270
OPERATING PROFIT
Automotive/Logistics 10,374 14,508 16,880
Cement 6,403 11,189 15,267
Energy/Sugar 4,893 10,186 18,054
Metals 19,406 22,526 21,862
Other (including inter-division eliminations) 2,049 (5,310) (7,678)
TOTAL 43,125 53,099 64,385
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
INTANGIBLE ASSETS (NET BOOK VALUE)
Automotive/Logistics 125 439 3,114
Cement 200 221 332
Energy/Sugar 264 549 709
Metals 498 507 892
Other (including inter-division eliminations) 362 32 77
TOTAL 1,449 1,748 5,124
PROPERTY, PLANT AND EQUIPMENT (NET BOOK VALUE)
Automotive/Logistics 34,381 31,274 46,679
Cement 3,478 3,493 3,657
Energy/Sugar 14,642 15,085 17,768
Metals 9,871 9,504 9,336
Other (including inter-division eliminations) 2,591 2,437 2,381
TOTAL 64,963 61,793 79,821
www.fivesgroup.com
99

2007 consolidated financial statements
The segment information provided above was prepared on the basis of the sub-consolidation of sub-groups as follows:
Automotive/Logistics: this sub-group is made up of Fives Cinetic and its subsidiaries (see detailed list in note 3.25), whose products
are essentially intended for the automotive and logistics industries;
Cement: this sub-group includes Fives FCB and Fives Pillard and their subsidiaries (see detailed list in note 3.25), whose activities
are mainly geared to the cement industry;
Energy/Sugar: this sub-group is made up of Nordon and Fives Cail and their subsidiaries (see detailed list in note 3.25), whose
activities are mainly geared to energy production industries of all types (nuclear, fossil fuels and renewable);
Metals: this division includes the subgroups formed by F.L. Métal, Solios Environnement and Fives Stein and their subsidiaries (see
detailed list in note 3.25). Its activities are mainly geared to the steel and aluminium industries;
Other: this corresponds to Fives and includes the effect of eliminating transactions between the four divisions defined above.
3.20 Earnings per share
2005 2006 2007
Net profit, Group share 20,065 22,911 31,629
Average number of shares 2,196,898 2,216,641 2,215,706
Earnings per share (in €) 9.13 10.34 14.27
Fives has not issued any dilutive financial instruments.
3.21 Off-balance sheet commitments
COMMITMENTS GIVEN
Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007
Guarantees and sureties 214,505 232,077 340,680
Obligations under finance leases 110 97 69
COMMITMENTS RECEIVED
Guarantees and sureties 41,171 37,795 61,109
Commitments given result mainly from the manner in which contracts in progress are financed, and from performance bonds issued
in respect of contracts.
In order to hedge against the foreign currency risk in respect of their commercial transactions, the Group’s operating subsidiaries use
financial instruments, mainly in the form of forward sales and purchases of foreign currency.
Fives 2007 Annual report
100

As a guarantee for the bank borrowings refinanced on July 27, 2006, Fives Cinetic pledged some of its holdings in its subsidiaries.
Fives accepted to stand as joint guarantor for all sums payable by Fives Cinetic and in respect of this commitment it pledged its holding
in Fives Cinetic to the lending banks. FL Investco also stands as joint guarantor for Fives Cinetic.
3.22 Staff costs and employees at December 31
2005 2006 2007
Staff costs 206,466 253,044 265,745
For the year ended December 31, 2007, staff costs at companies consolidated for the first time in 2007 totaled €9,930 thousand.
In 2006, the share of staff costs attributable to companies consolidated for the first time during the year amounted to €2,407 thousand.
Staff costs in 2005 did not include any charge in respect of Cinetic Landis Grinding companies, whereas these amounted to €39,635
thousand in 2006.
Period-end headcount
By category 2005 2006 2007
Engineers and management staff 1,400 1,428 1,602
Supervisory and office staff 1,901 1,994 2,190
Workers 1,281 1,122 1,194
TOTAL 4,582 4,544 4,986
By type of contract 2005 2006 2007
Permanent employment 4,388 4,349 4,687
Fixed-term contract 126 108 196
Apprenticeships and internships 68 87 103
TOTAL 4,582 4,544 4,986
The headcount increased in 2007 due to 343 additional staff contributed by newly consolidated companies and significant recruitment
in the energy and metals divisions.
The slight decrease in the headcount in 2006 compared with 2005 concerned the automotive/logistics and metals divisions.
Companies consolidated for the first time in 2006 accounted for 37 employees at December 31, 2006.
www.fivesgroup.com
101

2007 consolidated financial statements
3.23 Remuneration of management bodies
Total remuneration, both direct and indirect, paid in 2007 to members of the Executive Committee, 16 people in total, by Fives or
its subsidiaries amounted to €3,727 thousand.
3.24 Consolidated cash flow statement
The main components of the consolidated cash flow statement are as follows:
Opening and closing net cash positions
These are made up of marketable securities and cash (see note 3.8), excluding own shares amounting to €343 thousand at December
31, 2007, less bank overdrafts (see note 3.11).
Operating activities
Income and expenses that have no cash impact are eliminated from the net profit of consolidated companies as follows:
amortization and depreciation of €19,531 thousand in 2007, €14,248 thousand in 2006 and €14,698 thousand in 2005, including
respectively €9,126 thousand, €5,042 thousand and €6,520 thousand for goodwill amortization and depreciation;
restatement of changes in provisions for retirement indemnities and long-service awards amounted to –€1,581 thousand in 2007,
€1,120 thousand in 2006 and –€1,273 thousand in 2005;
restatement of net gains on fixed asset disposals. In 2007 and 2006, these restatements amounted to €1,130 thousand and
€1,146 thousand respectively and related mainly to sales of real estate. In 2005, these amounted to €232 thousand and stemmed
mainly from the gain realized by Fives on the disposal of its holding in Gecina, partially offset by the loss realized by Fives Cinetic on
the disposal of its shares in Cinetic GmbH;
other non-cash items, including notably changes in deferred tax and provision for depreciation of securities and related receivables,
accrued interest not yet due and the prior year profit or loss of newly consolidated companies.
The impact of changes in cash movement on operating activities include changes in working capital requirements, in contingency
and cost provisions and in the tax liability, and amounted to €42,819 thousand in 2007.
Investing activities
Acquisitions of intangible assets and property, plant and equipment amounted to €14,697 thousand in 2007, compared with €9,391
thousand in 2006 and €7,489 thousand in 2005.
Fives 2007 Annual report
102

In 2007, disposals of fixed assets had a positive impact of €2,453 thousand. In 2006, gains on disposals amounted to €2,998 thousand
and related mainly to sales of real estate, notably the property held by SCI Chariot d’Argent. In 2005, disposals of fixed assets totaled
€1,475 thousand and included notably receipt of the balance of the sale proceeds for the office premises near Milan owned by Fives.
The change in finance receivables does not include changes in shareholdings and was negative by €2,598 thousand in 2007 due
mainly to the loan granted to a new, non-consolidated subsidiary Stein Heurtey Vostok. In 2006, the change was an increase of €32
thousand. In 2005, this item had totaled a negative €3,269 thousand and consisted mainly of the reclassification into investments
of marketable securities of which Fives is merely the bare owner, and loans granted during the year to the non-consolidated subsidiaries
FL Industries Inc. and Penelectro.
Net impact of acquisitions and disposals of businesses
Net impact of acquisitions and disposals in 2007
In 2007, the net impact of acquisitions was negative by €36,032 thousand and was attributable mainly to the acquisition of the
Cinetic Sorting companies for a total of €23 million, to the €8.5 million loan granted by Fives to Financière F.L. during the year and
eliminated on merger, and for €2.8 million, to the acquisition cost of Setaram Engineering SAS.
Disposals had a net negative impact of €4 thousand in 2007.
Net impact of acquisitions and disposals in 2006
The net impact of acquisitions in 2006 was negative by €9,404 thousand and was attributable mainly to the deferred payment of
part of the acquisition cost of the Landis assets, including the price adjustment based on working capital requirements and acquisition
expenses.
The net impact of disposals in 2006 was negative by €1,336 thousand and is explained mainly by the sale of Cinetic GmbH.
Net impact of acquisitions and disposals in 2005
In 2005, investments and disposals had a net negative impact of €54,625 thousand, corresponding mainly to the portion of the
acquisition cost of the Landis assets paid in cash.
Financing activities
Dividends paid
In 2007, this heading was made up of dividends paid by Fives Pillard and its subsidiaries to minority shareholders.
In 2006, this heading was made up of dividends paid by Fives to Financière F.L. amounting to €2,660 thousand and dividends paid
by Fives Pillard and its subsidiaries and by Stein (Shanghai) Industrial Furnace Co. Ltd to their minority shareholders.
In 2005, this heading included mainly dividends paid by Fives to Financière Alexandre III totaling €20,014 thousand with the balance
made up of dividends paid by the consolidated companies to minority shareholders.
www.fivesgroup.com
103

2007 consolidated financial statements
Net (decrease) increase in borrowings
Borrowings decreased by €20,334 thousand in 2007 due to the repayment (€7,365 thousand) of the cash advance granted by
FL Investco to Fives, payment of the vendor credit linked to the acquisition of Cinetic Landis (€7,296 thousand) and repayments on
the RBS loan.
In 2006, net borrowings increased by €10,514 thousand due mainly to the cash advance amounting to €8,325 thousand granted
by FL Investco to Fives and to the net impact of the repayment and refinancing of Fives Cinetic’s bank loans.
In 2005, the net increase in borrowings came to €41,096 thousand, due mainly to drawdowns of borrowings used to finance the
acquisition of the Landis assets (denominated in USD and GBP for an equivalent of €48,818 thousand), partly offset by payment of
the annual instalment due on the borrowing entered into by Fives Cinetic in August 2004 (€2,800 thousand) and repayment of the
external borrowings of Cinetic Giustina Grinding S.r.l. amounting to €6,550 thousand.
Currency translation differences
Currency translation differences relate to foreign subsidiaries that prepare their consolidation reporting packages in a currency other
than the euro. They correspond to the differences between the opening and closing exchange rates applied to the opening net cash
position and to differences between the average and closing exchange rates applied to cash flows for the year.
Fives 2007 Annual report
104

3.25 Companies included in the 2007 Group consolidation
Consolidation Percentages
CONSOLIDATED COMPANIES Location method Voting Ownership
Fives * (ex-Compagnie de Fives-Lille) Paris, France Parent company
AUTOMOTIVE / LOGISTICS
Fives Cinetic *(ex-Cinetic Industries) Paris, France F 99.99 99.99
Cinetic Assembly * Montévrain, France F 99.99 99.99
Cinetic Automation * (ex-Cinetic Linking) Héricourt, France F 99.96 99.96
Cinetic Automation Corp. United States F 100.00 99.99
Cinetic DyAG Corp. United States F 100.00 99.99
Cinetic Filling* Le Bignon, France F 99.99 99.99
Cinetic Giustina Grinding Vaulx-en-Velin, France F 100.00 99.99
Cinetic Giustina S.r.l. (ex-Cinetic Giustina Grinding S.r.l.) Italy F 100.00 99.99
Cinetic Landis Corp. (ex-Cinetic Landis Grinding Corp.) United States F 100.00 99.99
Cinetic Landis Ltd (ex-Cinetic Landis Grinding Ltd) United Kingdom F 100.00 99.99
Cinetic Machining * Saint-Laurent-les-Tours, France F 99.99 99.99
Cinetic Service * Montévrain, France F 99.80 99.80
Cinetic Service Slovakia s.r.o. Slovakia F 100.00 99.80
Cinetic Service UK Ltd United Kingdom F 100.00 99.80
Cinetic Sorting Corp. United States F 100.00 99.99
Cinetic Sorting K.K. Japan F 100.00 99.99
Cinetic Sorting S.p.a. Italy F 100.00 99.99
Cinetic Transitique * Grigny, France F 99.98 99.98
Fives Cinetic Inc. (ex-Cinetic Industries Inc.) United States F 100.00 99.99
Fives Cinetic S.r.l. Italy F 100.00 99.99
CEMENT SUB-GROUP
Fives FCB * (ex-FCB Ciment) Villeneuve-d’Ascq, France F 99.99 99.99
Cementos Plantas Construcciones SA de C.V. Mexico F 99.90 99.90
Cement Process Technologies Egypt Egypt F 99.00 99.00
Fives Pillard (ex-Pillard EGCI) Marseille, France F 85.18 85.18
Fives Pillard España S.A. (ex-Pillard España S.A.) Spain F 67.00 57.07
Pillard Feuerungen GmbH Germany F 47.50 40.46
ENERGY/SUGAR SUB-GROUP
Fives Cail * Villeneuve-d’Ascq, France F 99.99 99.99
Fives Cail KCP Ltd India P 40.00 40.00
Fives Fletcher Ltd (ex-Fletcher Smith Ltd) United Kingdom F 100.00 99.99
Fives Lille do Brasil Ltda Brazil F 99.99 99.99
Fletcher Smith Inc. United States F 100.00 99.99
Nordon * Paris, France F 99.98 99.98
Fives Cryo * (ex-Nordon Cryogénie) Golbey, France F 99.80 99.78
Fives Cryomec AG (ex-Cryomec AG) Switzerland F 99.93 99.71
Fives Nordon * (ex-Nordon Industries) Nancy, France F 99.99 99.98
Nordon Frères - SCI * Nancy, France F 100.00 99.98
METALS SUB-GROUP
F.L. Métal * Seclin, France F 99.99 99.99
Fives DMS * (ex-DMS) Seclin, France F 99.99 99.99
Fives Industries * (ex-DMS Industries) Seclin, France F 99.99 99.99
Solios Environnement * Saint-Germain-en-Laye, France F 99.99 99.99
Solios Carbone * Givors, France F 99.99 99.99
Solios Environment Corp. United States F 100.00 99.99
Solios Environnement Inc. Canada F 100.00 99.99
Solios Services Southern Africa (PTY) Ltd South Africa F 100.00 99.99
Solios Thermal Ltd United Kingdom F 100.00 99.99
Fives Stein * (ex-Stein Heurtey) Ris-Orangis, France F 99.99 99.99
Fives Celes *(ex-Celes) Lautenbach, France F 99.99 99.99
Fives Stein Belgium S.A. (ex-Belgium Glass Equipment S.A.) Belgium F 100.00 99.99
Fives Stein Bilbao SA (ex-Stein Heurtey Bilbao SA) Spain F 100.00 99.99
Fives Stein Ltd (ex-BH-F Engineering Ltd) United Kingdom F 100.00 99.99
Stein Heurtey Australia PTY Ltd Australia F 100.00 99.99
Stein (Shanghai) Industrial Furnace Co. Ltd China F 100.00 99.99
(ex-Shanghai Stein Heurtey MECC Industry Furnace Co. Ltd)
*Companies included in the FL Investco. tax group.
F : Fully consolidated. – P : Proportionate.
At December 31, 2007, Fives and its subsidiaries are consolidated in the FL Investco group.
www.fivesgroup.com
105

2007 consolidated financial statements
Auditors’ report on the consolidated
financial statements
To the shareholders,
In our capacity as statutory auditors, we have audited the
consolidated financial statements of FIVES for the year ended
December 31, 2007 as attached to our report.
The consolidated financial statements were approved by the
Executive Board. Our responsibility is to express an opinion on
the consolidated financial statements based on our audit.
I. Opinion on the consolidated
financial statements
We conducted our audit in accordance with French auditing
standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance that the consolidated financial
statements are free of material misstatement. An audit includes
an examination, on a test basis, of the evidence supporting the
amounts and disclosures in the financial statements.An audit also
includes an assessment of the accounting policies used and significant
estimates made by management, as well as an evaluation of the
overall presentation of the financial statements. We believe that
our audit provides a reasonable basis for the opinion expressed below.
In our opinion, the annual consolidated financial statements present
fairly, in accordance with generally accepted accounting principles
in France, the assets and liabilities, financial situation and results
of the Group formed by the entities and companies included in
the consolidation scope.
Fives 2007 Annual report
106
ERNST & YOUNG AUDIT
Faubourg de l’Arche - 11, allée de l’Arche
92037 Paris-La Défense Cedex – France
ERNST & YOUNG AUDIT
Marc Stoessel
The Statutory Auditors
DELOITTE & ASSOCIÉS
185, avenue Charles-de-Gaulle
92524 Neuilly-sur-Seine Cedex – France
II. Justification for our assessments
Pursuant to the provisions of Article L. 823.9 of the French
Commercial Code relating to the justification for our assessments,
we wish to bring the following matters to your attention:
Group companies recognise income or loss on long-term contracts
in accordance with the principles and methods described in note
1.8 of the notes to the consolidated financial statements. These
results depend on the estimates on completion made by the
project managers under the supervision of the companies’ general
management.
Based on the information provided to us, our work consisted in
assessing the data and assumptions used as the basis for the
estimated results on completion of these contracts and examining
the calculations made by the company.We assessed the reasonable
nature of these estimates.
Our assessments in this regard fall within the scope of our audit
of the consolidated financial statements taken as a whole, and
therefore contributed to the unqualified opinion expressed in
the first part of this report.
III. Specific procedures
We have also examined, in accordance with professional standards
applicable in France, the information relating to the Group provided
in the management report.We have nothing to report with respect
to the fairness of such information and its consistency with the
consolidated financial statements.
Paris-La Défense and Neuilly-sur-Seine, April 9, 2008
DELOITTE & ASSOCIÉS
Pascal Colin

Ordinary and Extraordinary General Meetings of Shareholders of June 19, 2008
108 Draft resolutions
www.fivesgroup.com
107

Ordinary and Extraordinary General Meetings
of Shareholders of June 19, 2008
DRAFT RESOLUTIONS
SUBMITTED TO THE ORDINARY
GENERAL MEETING
OF SHAREHOLDERS
First resolution
The General Meeting,
having heard the reports of the Executive Board and the
Supervisory Board as well as the Statutory Auditor’s general report;
and after reviewing the company financial statements;
approves the company financial statements for the year ended
December 31, 2007 as presented to the Meeting and the transactions
reflected in such financial statements or described in the
reports and which show a net profit of €681,669.69.
The General Meeting also approves the non tax-deductible
expenses and costs amounting to €35,664.
Second resolution
As proposed by the Executive Board, the General Meeting decides
to allocate the net profit for the year of €681,669.69 as follows:
5% to legal reserves €34,083.49
Dividends to shareholders €647,586,20
In addition, the General Meeting agrees to draw €12,349,061.80
from retained earnings for payment as dividends, thus bringing
the amount of dividends paid to the shareholders in respect of
2007 to €12,996,648.00.
Fives 2007 Annual report
108
Accordingly, the General Meeting sets the dividend at €6.00 per
share (excluding own shares), payable on June 24, 2008.
The dividend paid to natural persons qualifies for a tax deduction
under Article 158-3 2° of the French general tax code.
The General Meeting notes that the dividends paid in respect of
the previous three years were as follows:
Tax deduction
pursuant
to Article
Number of 158-3 2° of
shares with Total the French
a par value Dividend dividend general
Year of €8 per share paid tax code
2004 2,196,892 €9.11 €20,013,686.12 not
applicable
6 €9.11 €54.66 eligible
2005 2,193,957 €1.20 €2,632,748.40 not
applicable
22,684 €1.20 €27,220.80 eligible
2006 2,216,641 – – –

Third resolution
The General Meeting,
having heard the reports of the Executive Board and the
Supervisory Board as well as the Statutory Auditors’ report on
the consolidated financial statements for the year ended
December 31, 2007;
and after reviewing the consolidated financial statements;
approves the consolidated financial statements for the year
ended December 31, 2007 as presented to the meeting and the
transactions reflected in such financial statements or described
in the reports, showing net profit, Group share of €31,629 thousand.
Fourth resolution
Having heard the Statutory Auditors’ special report on regulated
agreements governed by Article L. 225-86 of the French commercial
code, the General Meeting approves the report and the
transactions described therein.
Fifth resolution
As a consequence of the preceding resolutions, the General
Meeting gives full and final discharge for the year ended
December 31, 2007 to the members of the Executive Board for
their management and to the members of the Supervisory Board
for the execution of their mandate.
Sixth resolution
The General Meeting expressly ratifies the decision taken by the
Supervisory Board meeting on December 20, 2007 to transfer the
company’s registered offices from 38 rue de la République, 93100
Montreuil-sous-Bois to 27-29 rue de Provence, 75009 Paris.
DRAFT RESOLUTIONS
SUBMITTED TO THE
EXTRAORDINARY GENERAL
MEETING
Seventh resolution
The General Meeting resolves to add to the company’s corporate
purpose and to amend Article 3 of the Memorandum and Articles
of Association accordingly. It shall henceforth read as follows:
« Article 3 – Object
The Company’s object is, directly or indirectly, in France and abroad:
all engineering activities in the areas of the mechanical and
electrical industries and in particular in the areas linked to the
production and use of energy, the liquefaction of gas, the production
of aluminium, cement, glass, steel and sugar, the automobile
industry and logistics and, in this context, all activities relating to
the design, development of and completion of projects of all
kinds in the form of the provision of services, design offices and
engineering advice;
the design, development, and acquisition of all property rights,
processes and all industrial manufacturing resources, entering into
all licensing agreements or any agreements relating to these assets;
the taking of holdings, in particular by subscribing to or acquiring
shares or any transferable securities or rights, by creating new
companies or institutions, by transfer, merger or taking shareholdings
in any grouping or legal entity, entering into any partnership
agreements, any partnerships or by any other means, in the
above-mentioned areas and in particular in all companies having
as their object:
www.fivesgroup.com
109

Ordinary and Extraordinary General Meetings
of Shareholders of June 19, 2008
– the design, development or acquisition of all property rights, all
processes and industrial manufacturing resources, entering into
all licensing agreements and all agreements relating to these assets,
– the manufacture, sale, installation or repair of all facilities,
equipment machines and parts of all kinds, for all uses,
– the provision of technical assistance related to the abovementioned
activities,
– the general undertaking, directly or indirectly, of any assembly,
work, supply, construction or installation necessary or useful for
the fulfilment of the corporate object,
– the acquisition, rental, construction, installation and fitting and
the operation of all buildings and all works or property rights of
any kind and all industrial establishments,
– the provision of services of any type;
all services involving providing advice and assistance in particular
commercial, financial, legal, accounting, administrative and technical
advice and assistance to its subsidiaries;
and more generally, all civil, commercial, industrial and financial
transactions, whether in moveable or immoveable property, relating,
directly or indirectly, to any of the abovementioned objects, in
whole or in part, to any similar or related object or to any other
object that may be such as to favour or develop the Company’s
business.
Eighth resolution
The General Meeting gives the bearer of the original, a copy or
an extract of the minutes of this Meeting, full powers to carry
out all statutory and regulatory publication formalities.
Fives 2007 Annual report
110

www.fivesgroup.com
111

Fives 2007 Annual report
112

PEFC/10-31-1190
FCBA/08-00860
This document is printed
on Condat silk, PEFC
(Programme for the Endorsement
of Forest Certifi cation), certifi cat
that garantees sustainable
development of forests.
Fives
French limited company (Société Anonyme) with Executive Board and Supervisory Board – Share capital 24,041,732€
Registered offi ce: 27-29 rue de Provence – 75009 Paris (France)
Tel: +33 (0)1 45 23 75 75 – Fax : +33 (0)1 45 23 75 71
E-mail : contact@fi vesgroup.com
www.fi vesgroup.com
542 023 841 R.C.S. PARIS – APE 7010Z
Edited by the Communication Department of Fives
Design: TBWA\CONSULTING
Production: – Tel: +33 (0)1 53 00 74 29
Photos: Fives, Philippe Dureuil, Le Square, Emmanuel Goulliart.

Detroit
Mexico
Montreal
Paris
Johannesburg