ROTH2

This research has been commissioned and paid for by the company and does therefore not constitute an inducement caught by the prohibition under MiFID II

ROTH2 ^CR	Bloomberg MLROT FP
Engineering-Heavy Constr. / France	Web Site

A new player in the hydrogen markets

Sustainability score

Company (Sector)
1.4 (5.8)

Sustainability is made of analytical items contributing to the E, the S and the G, that can be highlighted as sustainability precursors and can be combined in an intellectually acceptable way. This is the only scale made available

More on Sustainability / ESG ...

	Score	Weight

Governance
Independent directors rate	4/10	25%	More ...
Board geographic diversity	0/10	20%
Chairman vs. Executive split		5%

Environment
CO₂ Emission	1/10	25%	More ...
Water withdrawal	1/10	10%

Social
Wage dispersion trend	0/10	5%	More ...
Job satisfaction	0/10	5%
Internal communication	0/10	5%

Sustainability score

1.4/10

100%

Governance score

Company (Sector)	Independent board
4.3 (7.2)	No

Parameters	Company	Sector	Score	Weight
Number of board members	7	8	9/10	5.0%
Board feminization (%)	28	35	5/10	5.0%
Board domestic density (%)	100	59	0/10	5.0%
Average age of board's members	62	59	4/10	5.0%
Type of company : Large cap, not controlled			10/10	25.0%
Independent directors rate	42	50	4/10	20.0%
One share, one vote				5.0%
Chairman vs. Executive split				5.0%
Chairman not ex executive				5.0%
Full disclosure on mgt pay				5.0%
Disclosure of performance anchor for bonus trigger				5.0%
Compensation committee reporting to board of directors				5.0%
Straightforward, clean by-laws				5.0%
Governance score			4.3/10	100.0%

Governance matters

The Board of Directors has five members, all of whom are shareholders in the company. As is often the case with medium-sized companies, it cannot therefore be considered independent. It is chaired by Ms Céline Marsac.

Name (7)	Indep. (3/7)	Function	Completion of current mandate	Birth date	Date in	Date out	Fees / indemnity, in k€ (year)	Value of holding, in k€ (year)

Céline MARSAC	F	President/Ch...		2022
Bertrand MARSAC	M	President/Ch...		2024
Vincent BOUVET	M	Member
Laurent DE BLÉGIERS	M	Member		2024
Véronique JOLY	F	Member		2024
Fabrice LEGRAND	M	Member	1964	2022
Raphaël SCHENTGEN	M	Member

Changes to Board of directors : 17/03/2025

Name (7)	Indep. (3/7)	Challenged (conflicted interests, distant or current)	Die hard (7 years or more)	Improbable (too young, disconnected profile)	Overloaded (too many boards, too old)	Specific agenda (gov. or staff rep)	Tied (family, business relations, executive)	Unknown (lack of history, short CV)

Céline MARSAC
Bertrand MARSAC
Vincent BOUVET
Laurent DE BLÉGIERS
Véronique JOLY
Fabrice LEGRAND
Raphaël SCHENTGEN

Name (1)				Function	Birth date	Date in	Date out	Compensation, in k€ (year)
Name (1)				Function	Birth date	Date in	Date out	Cash	Equity linked

Quentin MARSAC

CEO

2021

Changes to Management : 14/04/2022

Existing committees

Audit / Governance Committee
Compensation committee
Financial Statements Committee
Litigation Committee
Nomination Committee
Safety committee
SRI / Environment

Environmental score

Company (Sector)
1.0 (4.5)

Data sets evaluated as trends on rolling calendar, made sector relative

More ...

Parameters	Score	Sector	Weight
CO₂ Emission	1/10	4/10	30%
Water withdrawal	1/10	4/10	30%
Energy	1/10	5/10	25%
Waste	1/10	4/10	15%
Environmental score	1.0		100%

Environmental metrics

Energy (GJ) per €m in capital employed	CO₂ tons per €m in capital employed	Cubic meter water withdrawal per €m in capital employed	Tons waste generated per €m in capital employed

ROTH2 Capital Goods

Sector figures

Company	Environment score	Energy (total, in GJ)	CO₂ Emissions (in tons)	CO₂ Compensation (in tons)	Water Withdrawal (in m3)	Waste (total, (in tons)

Aalberts	4/10	3,624,000	235,033		1,243,000	53,338
ABB	8/10	5,058,000	134,000		2,252,000	218,000
Alfa Laval	10/10	1,202,476	18,100		770,576	39,556
Alstom	7/10	3,400,470	110,864		1,529,000	82,371
ASTA Energy Solutions AG^BH	1/10
Atlas Copco	10/10	2,724,717	227,000		722,000	64,304
AutoStore	7/10	32,360	2,101		n/a	34
Bekaert	2/10	13,708,296	1,271,516		6,372,875	198,798
Belimo	9/10	56,981	1,956		20,587	1,529
Bossard	5/10	113,821	8,072			2,763
Bucher Industries	3/10	1,228,824	60,927		0
Burckhardt Compression	6/10	176,951	7,910		75,414	3,268
CNH	3/10	2,878,512	182,720		957,000	93,170
Danieli & Co	3/10	7,168,000	571,682		1,142,000	149,954
Datwyler	2/10	1,134,101	45,093		1,585,858	22,348
Dürr^BH	4/10	479,048	24,792		177,373	13,208
Elecnor	1/10	1,898,449	119,125		n/a	85,324
Epiroc	10/10	1,148,000	55,000		147,388	37,413
FLSmidth & Co	10/10	355,917	27,221		139,007	14,540
GEA Group	7/10	850,540	59,959	0	362,965	16,921
Georg Fischer	4/10	3,250,000	92,000		3,420,000	83,300
HUBER+SUHNER	6/10	190,494	6,632		249,380	3,864
IMI	6/10	475,708	32,798		162,201	220,000
Interroll	7/10	113,060	4,947		36,570	4,204
ITM Power	3/10	22,951	1,144		0	129
Jungheinrich Pref.	5/10	1,049,824	79,000		293,000	28,163
Kardex	5/10	137,515	8,278		11,355	4,673
KION Group	8/10	2,259,111	183,813		n/a	84,981
Kone	5/10	1,896,840	140,000		268,200	37,000
Krones	7/10	748,080	51,061		274,141	930
Landis+Gyr Group AG	10/10	125,465	5,824		73,152	3,919
Legrand	8/10	1,697,962	52,831		710,000	60,000
Metso Corporation	6/10	1,433,000	120,976		320,000	81,000
Nel	10/10	71,597	1,600		9,945	800
Nexans	3/10	4,004,510	227,159		1,227,330	67,709
Nordex SE	3/10	775,134	68,452	53,412	190,666	31,289
OC Oerlikon	5/10	1,462,680	114,700		816,700	16,928
Ocado Group PLC	5/10	1,984,860	127,761		307,000	35,828
Prysmian	4/10	10,539,875	705,475		6,587,710	262,977
Quadient	9/10	43,160	6,540		n/a	1,331
RATIONAL	6/10	51,222	8,550		19,846	2,169
ROTH2^CR	1/10
Sandvik	9/10	3,969,385	296,080		n/a	352,102
Schindler	6/10	2,372,558	179,364		610,516	46,707
Schneider Electric	9/10	4,273,632	124,158		1,944,796	138,322
SFS Group	4/10	1,251,593	103,448			7,569
Siemens	8/10	10,745,057	359,000		12,963,000	188,127
Siemens Energy	6/10	5,802,259	194,460		5,040,000	123,467
Steyr Motors AG	5/10	11,613			1,495	54
Sulzer	4/10	614,714	58,600		n/a	20,291
Vestas Wind Systems	3/10	2,437,200	109,000		323,000	54,000
Vossloh	6/10	756,032	33,995		156,108
Wärtsilä	8/10	914,818	46,808		229,464	11,833

MORE DATA

Social score

Company (Sector)
1.9 (6.4)

Quantitative metrics (67%)

Set of staff related numerical metrics available in AlphaValue proprietary modelling aimed at ranking on social/HR matters

More ...

Parameters	Score	Weight
Staffing Trend	10/10	20%
Average wage trend	1/10	35%
Share of added value taken up by staff cost	1/10	25%
Share of added value taken up by taxes	1/10	20%
Wage dispersion trend	0/10	0%
Pension bonus (0 or 1)	0
Quantitative score	2.8/10	100%

Qualitative metrics (33%)

Set of listed qualitative criterias and for the analyst to tick

More ...

Parameters	Score	Weight
Accidents at work	0/10	25%
Human resources development	0/10	35%
Pay	0/10	20%
Job satisfaction	0/10	10%
Internal communication	0/10	10%

Qualitative score	0.0/10	100%

Sector figures

Company	Social Score	Quantitative score	Qualitative score	Staffing

Schneider Electric	8.2	7.3	10.0	167,044
Siemens Energy	8.1	7.7	9.0	105,457
Dürr^BH	7.9	8.0	7.9	18,150
Kardex	7.9	6.9	10.0	3,194
Siemens	7.7	7.0	9.3	318,000
Vestas Wind Systems	7.6	6.5	10.0	38,647
Steyr Motors AG	7.4	7.1	8.1	160
Interroll	7.4	6.1	10.0	2,400
ABB	7.2	6.1	9.7	113,578
Nordex SE	7.2	7.0	7.7	11,669
KION Group	7.2	6.9	7.9	42,500
Prysmian	7.2	6.3	9.0	32,934
Nel	7.1	7.2	6.9	381
Vossloh	7.0	6.1	9.0	4,600
Epiroc	6.9	7.3	6.2	18,750
Schindler	6.9	5.4	10.0	67,718
Krones	6.8	5.8	9.0	21,050
Alfa Laval	6.8	6.2	8.2	23,834
Alstom	6.8	7.6	5.2	90,049
Jungheinrich Pref.	6.8	6.3	7.9	21,200
AutoStore	6.8	6.3	7.9	1,200
Legrand	6.8	5.2	10.0	40,007
IMI	6.8	5.4	9.7	10,389
GEA Group	6.7	5.9	8.3	19,187
Ocado Group PLC	6.7	7.3	5.4	21,640
Bossard	6.7	6.6	6.7	2,900
Atlas Copco	6.5	5.5	8.6	56,500
Elecnor	6.5	5.9	7.6	27,556
Aalberts	6.4	4.6	10.0	13,522
Belimo	6.4	4.6	10.0	2,486
Landis+Gyr Group AG	6.4	4.7	9.8	7,200
Quadient	6.3	5.6	7.8	4,795
Wärtsilä	6.3	5.8	7.5	18,592
RATIONAL	6.3	5.7	7.7	2,950
FLSmidth & Co	6.2	5.7	7.3	8,505
Bekaert	6.1	5.6	7.1	18,573
Kone	6.1	5.1	8.2	65,304
Metso Corporation	6.0	5.2	7.6	17,220
Nexans	5.9	4.1	9.7	26,192
Datwyler	5.9	5.1	7.6	8,500
Sandvik	5.9	5.6	6.6	43,055
OC Oerlikon	5.9	4.5	8.6	13,600
HUBER+SUHNER	5.9	5.0	7.6	5,204
Burckhardt Compression	5.8	5.9	5.7	2,850
Bucher Industries	5.3	5.0	6.1	14,500
Danieli & Co	5.1	5.8	3.9	10,750
CNH	4.9	3.8	7.2	33,855
ITM Power	4.5	3.1	7.6	334
Georg Fischer	4.5	4.3	4.8	19,146
SFS Group	3.8	5.7	0.0	13,557
ASTA Energy Solutions AG^BH	3.6	2.5	6.1	0.00
Sulzer	3.3	3.7	2.5	13,590

MORE DATA

Sustainability / ESG by AlphaValue:

Doubt driven, focused on dynamics

AlphaValue was set up in 2009 as an ESG native firm: since inception, no research could be published without filling up the ESG relevant items. ESG has always been there as a natural building block of the research effort.

Without much pretence, AlphaValue has accumulated 11 years of proprietary, practical data in a consistent way that has been made to "talk" with financial data. The efforts have been aimed at solving the main conundrum of ESG analytics: avoiding useless and noisy data. AlphaValue ESG data is intimately connected to the fundamental research work and its continuous updating process. In other words, AlphaValue ESG data can be made to resonate at will in terms of financial implications for those investors with the willingness to do so.

Over the last 3 years, this data, or rather the dynamic of this data, has been put at work so that it impacts directly and consistently on valuations across AlphaValue's 450 + stocks universe. This is considerable progress vs. the dominant "consumption" of ESG raw data: ESG-type conclusions are sitting next to valuation fundamentals but hardly any investor is in a position to bridge effectively the two in a consistent and repeatable way. It takes more than a spreadsheet to get stable and auditable results that work 100% of the time.

AlphaValue reckons that it currently is the only equity research provider in Europe to have reached this stage: a perfectly smooth on-boarding of ESG data, on a continuing basis, impacting valuation fundamentals day and night.

This is available on every stock, every sector, every stock selection, every day.

Heretical ESG opinions?

ESG is a contradiction in terms. Without a good Governance, the Social and Environment items will never show progress. Social is for stakeholders and thus unlikely to please shareholders. The long-term view that good pay/working conditions are ultimately good for shareholders is, like any promise, better left to those who want to believe in it. It does not work for normal investment horizons

Environmental gains will not happen without good Governance but this is not enough as environmental progress will not happen without coercion from governments/supra-governments. There is no reason why a corporate will spend more for a possible collective gain tomorrow when it can have better returns now for its shareholders.

The environment is a cost of massive complexity and a universal one as data improves and allows for intricate tracking of what corporates are up to. There is no practical way a corporate can be valued through a web of changing definitions of environmental data. AlphaValue holds the view that all corporates are made to pay through lower GDP growth expectations resulting from friction costs. The only dimension that really matters from an investment perspective is whether a given corporate makes an extra effort vs. peers. A good 'E' rating shall not be driven by absolute levels but by the dynamic of emission controls relative to peers. Dumping cement stocks because they spit out carbon is a narrow view of what ESG implies.

Sustainability scores only

AlphaValue always refused to supply a pecking order of its coverage along some improbable ESG scale. It just does not make sense to mix opposing signals in a single ranking.

Sustainability is a different proposition where analytical items contributing to the E, the S and the G can be highlighted as sustainability precursors and combined in an intellectually acceptable way. This is the only scale made available by AlphaValue.

Sustainability impacts target prices

From 1-12-2020, AlphaValue substituted sustainability metrics for its Governance and Social ones when it comes to impacting valuations;

Indeed since 2019, all DCF (or DCF equivalents for Financials) have been impacted by Governance and Social metrics to connect directly ESG-type findings into share price targets and bring consistency across the board. The impact is driven by adjusting the small 'g' conventionally used to assess the growth to infinity. This is being tweaked to recognise, say, that good governance ultimately pays off.

The same procedure is now stemming from Sustainability metrics instead.

For the record, this has been made possible as AlphaValue has finalised its proprietary E scoring, now extended to 4 items (GHG, Waste, Water, Energy) on which a degree of data stability seems to emerge.

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