A N N U A L R E P O R T - Bouygues

the performance of contracts under
planning agreements between central
government and the regions.
The group also pursued its strategy
of expanding its materials production
capacity, especially aggregates, making
a number of acquisitions during
the year.
Safety and signalling
The safety and signalling division
recorded an impressive 24.5% increase
in sales, mostly due to the consolidation
of two road paint production and
road marking companies in the second
half of the year, Prosign in France
and Veluvine in the Netherlands, and
sustained demand from the motorway
and equipment maintenance segments.
Pipes and mains
Sales at the pipes and mains division
remained stable in comparison with
2004. Demand on the oil and gas markets
remained firm and the trend on
the water market was favourable.
Waterproofing
Waterproofing subsidiaries reported
a significant rise in sales, up 11.2%
on 2004, although the figure for
waterproofing membrane production
reflects the increase in raw materials
prices.
Rail
Sales at the rail division rose by 21%
on the previous year, mostly due to
substantial volumes of work on major
rail projects in France and the UK. In
contrast, local branches have had to
adapt to a cut in track maintenance
and renovation grants from RFF, the
infrastructure operator.
Very sharp rise in
international and
overseas sales
Sales on international and overseas
markets amounted to €4.3 billion, a
29.8% increase on 2004 (11.8% like-onlike
and at constant exchange rates).
In geographical terms, North America
Construction of the Paris tramway
accounted for 41.4%, Europe (excluding
France) for 40.1%, Africa/Indian
Ocean/Asia for 9% and French overseas
dependencies for 9.5%.
Europe
Sales in Europe (excluding France)
rose by 44.5% on the previous year
to €1,725 million, with central Europe
accounting for €937 million and
northern Europe for €788 million.
In Belgium, sales were sustained by
major projects including renovation
of the Antwerp ring road, a section
of the E25 motorway and renovation
and extension of the runway at Liège
airport.
In Denmark, the market was satisfactory
in volume terms but subject
to considerable price pressure in a
context of fierce competition.
In the UK, under a 25-year contract
to renovate and maintain roads in
Portsmouth concluded in July 2004,
work on the main network began in
February and the first year of the
contract as a whole was completed to
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