Colas RA

Business report
Business in 2005
The global economy enjoyed fast paced expansion during the year
2005, even if growth figures remained low throughout most of
Europe, inferior to those recorded in other major economic zones
such as North America and Asia.
In 2005, all of Colas’ business units operated in buoyant markets,
posting growth figures that were often higher than average national
indexes due to an increase in demand for new infrastructure and
the upgrading of existing networks (France, central Europe, Indian
Ocean, North America). The Group recorded a sharp jump in activity,
boosted by external growth as a great number of small and
medium-sized companies were acquired at the end of 2004 and
throughout 2005. These operations strengthened the Group’s geographical
network (central Europe) and reinforced its market position
in certain lines of business (manufacturing of road paint, aggregates,
bitumen storage, civil engineering), thus playing an active role in the
year’s revenue figures. Colas’ efficient, well-organized business
network comprised of more than 1,200 profit centers located
in 40 countries worldwide enabled the Group to take advantage
of the high level of public and private investments. Backed by good
weather conditions, almost every Colas Group subsidiary performed
as well as if not better than last year thanks to a higher volume
of business, despite a sharp rise in the price of oil products which
make up a major part of production costs for all the Group’s business
sectors.
It is important to underline the fact that the consolidated financial
statements for 2005 and the consolidated figures that are taken
therefrom and presented herein have been drawn up for the first
time ever in compliance with International Financial Reporting
Standards (IFRS). The accounting and evaluation methods used for
comparative 2004 financial statements are identical to those used
for the financial statements of 2005. Lastly, Colas’ corporate financial
statements are still drawn up using French GAAP.
As of December 31, 2005, the Group’s consolidated revenue totaled
9.54 billion euros, an 18.9% increase compared to 2004. With
unchanged structure and comparable exchange rates, revenue was
up 11.3%. For the first time in several years, variations in exchange
rates had almost no impact on revenue.
Sales in France amounted to 5.58 billion euros, i.e., 58.5% of total
Group revenue. Outside of France, revenue rose to 3.96 billion euros,
i.e., 41.5% of total Group revenue. Combined revenue in Europe –
including France – and North America accounts for 95% of total
Group sales.
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