Blue : Business Report 2016

Blue Solutions

Business report 2016

BLUE SOLUTIONS

Managing bodies

Composition of the Board of Directors

As of March 23, 2017

Vincent Bolloré

Chairman of the Board of Directors

Didier Marginèdes

Vice-Chairman

Cyrille Bolloré Marie Bolloré Sébastien Bolloré Virginie Courtin Valérie Hortefeux Jean-Louis Milin Martine Studer

Executive management

Gilles Alix

Chief Executive Officer

Contents

02 - Message from the Chairman

04 - Key figures

06 - Blue Solutions, a unique technology

08 - Blue Applications, mobile applications

12 - Blue Applications, stationary applications

14 - Systems, IER and Polyconseil

16 - Corporate social responsibility

BUSINESS REPORT 2016 01

Introduction

Blue Solutions, listed on the stock market since October 30, 2013, consolidates the electric battery and supercapacitor activities developed by the Bolloré Group.

Diversifying from its longstanding business manufacturing thin paper and ultra-thin plastic films, the Bolloré Group has become a producer of complete electrical components for capacitors, to the extent that it now holds more than one third of global market share in this segment. On the strength of this expertise and following twenty years of R&D, the Group has developed batteries and electricity storage solutions based on a unique technology, the Lithium Metal Polymer (LMP®) battery, in addition to supercapacitors.

At a time when issues concerning sustainable development and electricity storage have become major challenges for people, cities and governments, the Bolloré Group is building on this expertise to develop solutions for the storage and smart management

of electricity.

The Blue Solutions workforce currently includes more than 300 researchers, engineers and technicians who produce these advanced technology batteries at two production sites located in Brittany and in Canada. The annual production capacity has now reached 500 MWh.

These batteries are used in mobile applications (electric vehicles: Bluebus, E-Mehari, Bluecar®and car-sharing services), as well as stationary applications that are being developed (on-grid/off-grid electricity storage), which are developed and sold by other Group companies operating under Blue Applications, which are present on every continent.

Together, Blue Solutions and Blue Applications expect to be able to leverage their unique position as an integrator offering both

batteries and comprehensive solutions to meet the new requirements associated with energy transition.

Bolloré's current bid for Blue Solutions shareholders at 17 euros

On March 23, 2017, Bolloré announced that it would offer shareholders who wish to exit the possibility

to sell their Blue Solutions shares at 17 euros per share. To that end, a proposed public offer will be filed with the French financial markets authority (Autorité des marchés financiers - AMF) before the end

of the first half of 2017 (see Message from the Chairman, page 03).

02

Message from the Chairman, Vincent Bolloré

BLUE SOLUTIONS

The year 2016 was a year of contrasts for Blue Solutions. Its consolidated turnover was 109.3 million euros, down 10% from 121.9 million euros. Blue Solutions sold 2,460 batteries in 2016, compared with 2,849 in 2015. The steady level of activity in mobility (Bluebus, E-Mehari) did not offset the decline in stationary energy storage sales.

New developments and commercial successes of Blue Solutions in mobility were also marked this year with the creation of a new car-sharing service in Turin, Italy; the implementation of full-scale tests by Bluecity in London (which will be open to the public in 2017); the delivery of the first 12-meter Bluebuses to the RATP in Paris; the successful marketing of E-Mehari, which was developed with the PSA Peugeot Citroën Group; and the winning of international tenders in Singapore and Los Angeles to set up car-sharing services for electric vehicles. These successes demonstrate our recog- nized expertise in mobility applications and the quality and reliability of our Lithium Metal Polymer (LMP®) technology. They also prove that our solutions have a great future and a real role to play in the energy transition.

Finally, Blue Solutions continued to strengthen its research capabilities through the acquisition of the US start-up Capacitor Sciences, which specializes in studying and researching new molecules for storing electricity with a view to substantially improving the performance of LMP®batter- ies (density, cyclability and charge speed).

However, 2016 also showed a greater competitive intensity than we had expected. In this context, Blue Solutions wants to give itself more time to exploit the advantages of its LMP®technology and deal with the simultaneous development of competitors in lithium ion, which, with significant capacities

and low prices, require it to rethink its volumes and the sale prices of its batteries. As a result, the Board of Directors of Blue Solutions took several decisions.

It decided not to exercise the call options it had on the Blue Applications scope of consolidation until their maturity date of June 30, 2018, given that the investments still to be com- mitted to it are still considerable and it prefers to focus Blue Solutions' efforts on improving its technology. It then decided to work more closely with the Board of Directors of Bolloré on several goals, namely the establishment of a new window for the exercise of options, the revision of the terms of the battery supply agreement between Blue Solutions and Blue Applications so that it is more competitive as regards battery sales prices and the implementation of a new financing agree-