Registration Document BOUYGUES

in capital spending by local authorities, especially
between rural areas and urban centres, small communes
and major conurbations.
The 16 regional roads subsidiaries reported a
9% rise in sales on 2010, with higher construction
costs, especially for energy, bitumen and other raw
materials, accounting for about 5%. Business was
boosted by particularly fine weather throughout
the year. A number of contracts were obtained
for complex projects such as the A63 motorway
concession in south-western France, the Vichy
bypass PPP and a roads and street lighting PPP in
Plessis-Robinson, near Paris. Price levels, pushed
down by fierce competitive pressure, seem to have
bottomed out in 2011. Subsidiaries continued their
efforts to adapt, rationalise and cut costs in order
to become more competitive and responsive to
conditions on their regional and local markets.
Technologies, products and processes developed
to favour sustainable development made progress:
recycled pavement as a proportion of sales of
asphalt mixes produced by Colas rose from 7%
in 2010 to 9% in 2011 (scope: mainland France).
Warm asphalt mixes as a proportion of all asphalt
mixes produced by Colas in mainland France
remained stable at 4%.
Safety and signalling subsidiaries reported a 5%
rise in sales 1 on 2010, in a market characterised by
declining volumes and rising raw materials prices.
Evesa, a consortium which includes Aximum,
concluded a ten-year street lighting Energy
Performance Contract with the City of Paris.
Sales in the pipes and mains segment fell 5% on
2010, reflecting a decline in the core business of
laying pipelines in mainland France.
Waterproofing subsidiaries reported a 13% rise
in sales 1 following an upturn in the construction
market in the first six months and particularly
favourable weather in the early part of the year,
despite a downturn in the last quarter and a sharp
fall in business related to the installation of photovoltaic
panels.
Railway subsidiaries reported a 7% increase in
sales 1 on 2010, in a very buoyant but highly competitive
French market boosted by the construction
of new tramway lines and the renovation or maintenance
of track in France. The freight business
continued to grow.
SRD in Dunkirk produced 260,000 tonnes of bitumen,
270,000 of base oils, 360,000 tonnes of fuel
oil and 55,000 tonnes of paraffin from 950,000
tonnes of crude oil. Colas distributed 60% of
production. Sales 1 of refined products (excl.
bitumen) amounted to €300 million 1 compared with
€150 million in 2010, reflecting a full year’s activity
(only six months in 2010).
French overseas départements
Sales in French overseas départements were 3%
lower than in 2010.
On Reunion Island, sales levelled off after falling for
two years as the building market started to pick up
again. Business in Mayotte was hard hit by a wave
of strikes that paralysed the island in October and
November. Warm asphalt mixes are now used for
most pavement projects.
The market in the French West Indies remained
sluggish, although there was a slight upturn in
public-sector spending on road maintenance in
Martinique and some site development work linked
to residential property projects in Guadeloupe in
the second half of the year. Adaptation measures
were continued. Sales contracted in French Guiana
following the completion of some major projects.
International markets
and French overseas territories
Sales on international markets and in French
overseas territories amounted to €5.2 billion, an
increase of 4% on 2010 (3% like-for-like and at
comparable exchange rates).
En Europe
Sales in Europe (excluding France) amounted to
€1.9 billion, stable in relation to 2010.
Sales in Northern Europe rose 10% (1% excluding
sales of refined products), with business in Belgium
and Switzerland offsetting the effects of spending
cuts in Ireland and the UK.
In the UK, in a difficult environment marked by the
introduction of an austerity programme, the roads
subsidiary Colas Ltd reported a high level of sales,
albeit slightly lower than in 2010, supported by a
business mix that combines MAC long-term road
and motorway network management and maintenance
contracts with a strong materials production
activity and an expanding airport runway maintenance
business. The Portsmouth PFI is continuing
to the satisfaction of both customers and users.
Sales in Belgium rose significantly on the back of
a public spending programme to repair the road
network, which had deteriorated as a result of harsh
winters in 2009 and 2010. Sales in Switzerland
remained at the same high level, driven by ongoing
road, motorway and railway projects. Sales rose in
Denmark and remained stable vs. 2010 in Ireland.
Sales in Central Europe fell by 17% on 2010,
representing a 57% drop in three years. The
decline is due to an across-the-board reduction
in public spending, especially in Hungary, the
Czech Republic and Slovakia, though not in
Poland, and a policy of favouring profitability over
volume in a context of fierce competitive pressure.
Within that strategy, subsidiaries are continuing
to take measures to adapt to the market situation.
In Romania, Colas decided to terminate the
contract for a section of the A2 motorway between
Cernavoda and Constanta because of contractual
issues that made it impossible to carry out the work
under normal conditions. The disposal of SCCF Iasi
was concluded in late 2011 and submitted to the
Romanian competition authorities for approval. In
Croatia, Colas acquired the remaining capital of
its subsidiary Cesta Varazdin.
Sustainable development technologies continued
to make headway. A number of asphalting
projects using plant-based binders were carried
out in Belgium, Switzerland and the UK. Significant
strides were made with noise-reducing surfaces in
Switzerland, Denmark and Poland, while cold recycling
techniques made progress in Switzerland.
North America
Sales amounted to €2.36 billion, up 7% on 2010
(8.5% like-for-like and at constant exchange rates).
In the United States, in a tougher environment,
subsidiaries achieved higher sales than in the previous
year, partly due to the full-year consolidation
of two acquisitions in 2010. The first-half deceleration
in activity due to particularly adverse weather
conditions was caught up in the second half of
the year. Subsidiaries performed well, particularly
in their ongoing efforts to improve organisational
structures, control operating costs, promote inexpensive
road maintenance techniques, diversify
their business activities (civil engineering) and
customer base, source bitumen supplies from a
network of depots and set up a structure devoted
to complex, PPP-type projects.
In Canada, despite adverse weather conditions
in the first half of the year, sales grew strongly
PPP: Public-Private Partnership - PFI: Private Finance Initiative - MAC: Managing Agent Contractors (UK)
(1) Incl. international activity
BOUYGUES • 2011 Registration Document • BUSINESS ACTIVITIES AND CSR • Colas • 88