2005 Annual Report - Touax

Report of the Supervisory Board
and of the Chairman of the Supervisory Board
annual report 2005
Report of the Supervisory Board
Pursuant to article L. 226-9 of the Commercial Code
we present our report on the annual financial statements
and the consolidated financial statements of
the Group.
The Supervisory Board conducts continuous supervision
of the management of the company. To this end
it has the same powers as the statutory auditors.
The Supervisory Board conducts its supervision fully
independently and receives transparent, complete
and reliable information on the company, in particular
with regard to its accounts, its financial liabilities
and the risks inherent in its activities and its environment.
Through its Chairman, the Supervisory Board participates
in supervisory committees for the various
businesses. The purpose of these committees,
which are prepared by the managers and operating
managements, is to present the strategies pursued
by the businesses, in particular the strategic developments
in the market, the geographic strategy, the
positioning vis-à-vis competitors and progress with
regard to the aforementioned strategies. Their purpose
is also to study the key events of the period in
question.
The Supervisory Board reviews the company financial
statements and consolidated financial statements
of the Group with the aid of its audit
committee. The audit committee currently comprises
the Chairman of the Board (Alexandre Walewski)
and one member (Jean-Louis Leclercq). Alexandre
Walewski has been the Chairman of the Group for 20
years and Jean-Louis Leclercq has been its
Financial Director for a long period. These members
were selected for their experience in the Group.
The report of the managers and the financial information
documents made available to you show the
development of the businesses and the results of the
Group in the 2005 financial year. The report of the
statutory auditors in respect of this financial year
does not give rise to any observation on our part.
The consolidated financial statements show net
attributable profit of €4,082,558 in 2005, compared
to €3,176,616 in 2004. The consolidated balance
sheet total amounted to €206.2 million in 2005,
compared to €179.6 million in 2004.
The 2005 financial year was marked by increases in
revenues, net income and earnings per share,
demonstrating the Group’s ability to deliver growth
and reliability in pursuit of its strategy. The key event
in 2005 was the €18 million increase in the capital of
the company. This capital increase enables the
Group to finance the ownership of assets.
The shipping containers business has operated in a
buoyant market in the last two years. Since the
second half of 2005 it has experienced a slowdown,
due mainly to a surplus of equipment leaving manufacturing
plants. Consequently, the Group ordered
and sold fewer containers than in 2004. The market
began to recover in March 2006.
The modular buildings business, which has suffered
particularly in France and the Benelux countries in
the last few years, has been growing since the
second half of 2005. A particular commercial and
investment effort has been made in France,
Germany, Poland, Spain and the United States. Sales
teams have been recruited and are embarking successfully
on this task.
The river barges business recorded a strong performance
on the Mississippi and the Danube and a
more mixed performance on the Rhine.
The railcars business is benefiting from the liberalization
of the market in Europe and is continuing to
grow with significant investments.
On this basis, the Supervisory Board is in a position
to affirm its confidence in the future of your company
and in your managers. The Board therefore recommends
that the motions submitted for your approval
be carried and that the corresponding resolutions be
adopted.
Puteaux La Défense, 30 March 2006
Alexandre Walewski
Chairman of the Supervisory Board
130