Registration Document BOUYGUES

Performance Contract in Vitry-sur-Seine, southeast
of Paris) and office buildings.
Commercial activity was excellent, resulting in the
conclusion of a number of PPP contracts, such as
the future French Defence Ministry complex and
Paris Zoological Park, and conventional contracts,
such as the Paris Philharmonic Hall. Private-sector
orders remained buoyant and included a residential
complex at Fort d’Issy and the Beaugrenelle
shopping centre. The general size of orders is
large, illustrated by the fact that six contracts were
worth more than €100 million. At the beginning of
2012, Bouygues Construction signed the PPP contract
to build the future Paris law courts complex
(for more details, see section entitled "Highlights
since 1 January 2012" in the chapter on the Group).
In Hong Kong, Bouygues Construction and the
Japanese company Nishimatsu are building a 10.5-km
drainage tunnel that calls for high-order technical skills
Elsewhere in France, Bouygues Construction's
five regional building subsidiaries were involved in
the construction of hospitals (the Amiens-Picardie
regional hospital and the new hospital of Orléans,
which has HQE ® High Environmental Quality
certification), prisons (handover of Réau prison
near Lille in northern France), schools and leisure
facilities (reconfiguration of the Velodrome Stadium
in Marseille). A gloomy business climate had a
dampening effect on the order intake, despite
some successes in Bouygues Construction's areas
of special expertise, including a PPP contract
for two secondary schools in Lorraine (eastern
France), prisons in western and northern France
and an HQE ® -certified headquarters building for
the Auvergne Regional Council.
Bouygues Construction operates on civil works
markets through regional agencies all over France,
specialising in smaller-scale civil engineering
projects and earthworks. Drawing on its civil works
expertise, Bouygues Construction also participates
in complex major projects, like ongoing civil
engineering works for the Flamanville EPR nuclear
power plant and LNG storage tanks in Dunkirk,
for which an order was taken in 2011. The activity
generated by these major projects helped to offset
a decline in more traditional activities in 2011. In
January 2012, the consortium led by Bouygues
Construction was named preferred bidder for the
PPP contract for the Nimes-Montpellier railway
bypass.
Europe
In Western Europe, Bouygues Construction subsidiaries
are particularly active in the UK, where
the market is worth €162 billion 1 , and in Switzerland
(€43 billion 1 ). In the UK, the business environment
is suffering from the recession and austerity
measures. In Switzerland, demand from financial
investors for long-term investment opportunities
remains strong, opening up bright prospects for
property development. Business conditions in
Eastern Europe have deteriorated significantly but
attractive opportunities remain in the medium term.
2011 sales: €1,810m (up 15%)
In the UK, Bouygues Construction can draw on its
know-how in Private Finance Initiative (PFI) and
Design & Build projects and an extensive presence
in London and the south and southeast of England.
The company strengthened its coverage with the
acquisition in early 2011 of a stake in Leadbitter, an
Oxford-based building contractor. In Switzerland,
Bouygues Construction takes advantage of its
expertise in putting together major property
development projects. Commercial activity has
flourished and the company has taken orders
worth over €650 million for this type of project,
the largest of which are the Monthey-Trollietta
residential and shopping complex and the Eikenott
eco-neighbourhood in Gland.
In Eastern Europe, Bouygues Construction has
acquired a number of well-established local firms
in recent years, notably in Poland, Hungary and the
Czech Republic, which are continuing to expand
their building activities.
Elsewhere in Europe, Bouygues Construction is
also involved on a one-off basis in major infrastructure
projects such as the widening of the
Istria motorway in Croatia, completed in 2011,
the Olkiluoto EPR nuclear power plant in Finland,
delivered for Areva in 2011, and the new confinement
shelter for the damaged nuclear reactor
at Chernobyl in Ukraine, which is being built in
partnership with Vinci.
Asia – Pacific
Construction markets in Asia are particularly buoyant,
with continuing high growth rates sustained by
effective government intervention.
2011 sales: €1,118m (down 6%)
Activity in Hong Kong was sustained by orders
for major projects taken in 2010, including the
Civil Aviation Department headquarters, the Kai
Tak Cruise Terminal and two sections of the rail
tunnel for the future Hong Kong to Canton rail
link. Bouygues Construction is also a recognised
player in Singapore, building luxury residences,
hotels and offices to the most stringent quality,
safety and environmental standards. The Sports
Hub, the world's largest sports PPP project, is
under construction and orders for two residential
complexes were taken in 2011. In Thailand, the
company specialises in high-rise residential towers
(1) Euroconstruct estimate – November 2011
BOUYGUES • 2011 Registration Document • BUSINESS ACTIVITIES AND CSR • Bouygues Construction • 58