Annual report 2001 - GL events

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3-7-2 Venue management
The distinction between the categories of Organizers /
Space renters and Service providers varies depending on
the country. Furthermore, Générale Location identifies
clearly the fact that by presenting to clients who are
organizers or to exhibitors an offer which combines both
the renting of space and the provision of services is
creative of value. Depending on opportunities, Générale
Location will study all the projects in France or at the
international which could be of interest for its
development and that of its clients. These projects
concern mostly the venue management rather than the
real estate ownership of these sites.
3-7-3 Internal growth – external growth
Despite an economic situation which is less favorable,
Générale Location is increasing its market shares. It relies
in France and at the international, on many profit centers,
which are self-reliant and responsible and which moreover
contribute to the global development of the group. They
are in fact linked to the development units both in Lyon
and in Paris.
The major support tools to the sales forces are :
- the catalogue available on paper and also on the web at
the following address : www.generale-location.com,
- the presence on a regular basis of Générale Location on
major projects and more specifically on works of fittings
and museum fittings, a source of prestige and used as
reference,
- a trade mark and well-established know-how
The model of development selected by the group
integrates operations of external growth which accelerate
its development along its strategic axes and also allow it
to have at its disposal an offer of services in compliance
with the vision Générale Location uses to see its markets
of tomorrow.
Générale Location’s presence on major projects such as
Olympic Games and World Cups of Football widens and
facilitates opportunities for external growth.
The factors examined at the time of such operations are
the following :
- integration within the global offer
- synergies
- adhesion to the management of the corporate project
- compliance with the strategic axes
- financial profitability and return on employed funds
The integration of the acquired companies is then made
easier by the group’s model of organization already
exposed (self-reliance and responsibilities on their
markets, development by adhering to the concept of the
global offer).
3-7-4 A flourishing market
The troubled international context of 2001 does not have an impact on the conclusions presented in the study realized in
1999, especially for the medium-term growth expected in the events market.
3-7-5 Data in figures and results for the first quarter of 2002
The Group announced for the year a progression of its net
sales above 20 % including signatures of important
contracts and operations of external growths carried out
until the end of January. In the press release of 25 April
2002, Générale Location communicated the following
elements :
Net sales in strong growth for the first quarter : + 24%
For the 1st quarter 2002, Générale Location realized sales
of 75.9 m€, a 24.2 % increase (7.6 % with constant scope
and exchange rate).
Générale Location exceeded its announcement of a
significant organic growth, expected to be reached only at
the end of the 1st semester 2002.
Well-oriented activities
All sectors have shown an increase in their activity since
the beginning of the year 2002, both in France and
outside of France. The effort to create a synergy between
the different sectors of Shows / Exhibitions, Fittings /
Museum Fittings, Events, and Venue Management will
contribute toward a strong and well-balanced growth in
2002.