6 - Vicat

6BUSINESS OVERVIEW6.2. GROUP STRENGTHS AND STRATEGYThe share of the Group’s core businesses that Cement, Concrete and Aggregates represent remained stable in 2009at more than 86 % of consolidated sales, with the cement business taking an increasing share to account for over 50 %of consolidated sales.Consolidated sales allocated by geographic area2009Change2008 2007millions of euros % 2009/2008 millions of euros % millions of euros %France 809 42.7 - 17.0 % 974 47.3 988 46.2Europe (except France) 328 17.3 + 3.2 % 318 15.5 314 14.7United States 187 9.8 - 30.3 % 268 13.0 364 17.1Turkey 141 7.4 - 13.1 % 162 7.9 194 9.1Africa, Middle East,432 22.8 + 28.8 % 335 16.3 276 12.9OthersTotal 1 896 100.0 - 7.8 % 2 057 100.0 2 136 100.0The share of consolidated sales made in France fellnoticeably, in a depressed macro-economic environment,affecting in particular apartment blockconstruction, and particularly unfavorable climaticconditions in the first and fourth quarters. Businessin the United States remained seriously affected bythe macro-economic climate, once again reducingthe share of consolidated sales realized there.The share of the Africa/Middle East and Others areais increasing strongly, moving from 16.3 % in 2008 to22.7 % in 2009 due to strong growth in these marketsand to a full year of operation of new productioncapacity in the Sinai Cement plant in Egypt, newSococim facilities coming on stream in Senegal andconsolidation of operations in Mauritania over 12months in 2009, as opposed to 3 months in 2008.6.2. GROUP STRENGTHS AND STRATEGYOver a period of more than 150 years, the Grouphas developed an expertise in the Cement, Concreteand Aggregates businesses which have allowed theGroup to establish its position as a regional leaderin most markets in which it operates. The Group occupies,alongside other larger multinational companies,a specific position among multi-regional leadingplayers.The Group focuses on its core business, Cement, inwhich it has an acknowledged historical expertise,and expands into the ready-mixed concrete and aggregatesmarkets by vertical integration, in order toensure its access to the cement consumption markets.It also benefits from synergies with complementaryactivities, carried out in certain markets,to consolidate its product range and reinforce itsregional positioning (for example the prefabricationbusiness in Switzerland or transport in France).The Group favors controlled development in itsvarious businesses, balancing a dynamic internalgrowth, sustained by industrial investment to meetmarket demand, with a selective external growthpolicy to approach new markets having an attractivegrowth potential or to accelerate its verticalintegration.6.2.1. The Group’s strengthsOver the years, the Group has developed an acknowledgedexpertise in its main businesses, witha multi-location approach which has led it to buildstrong regional positions and to distribute its activitiesin a balanced way.The Group’s principal strengths can be summarizedas follows :• industrial and commercial expertise in the Group’score businesses ;• long-term strategy, ensured by family shareholdingand management, the family having managed theGroup over the past 150 years and having in-depthexperience of the businesses ;• diversified geographical presence with strong regionalpositions ;• stable industrial policy prioritizing long-term managementof geological reserves as well as maintaininga modern, high-performance industrial base ;• a solid financial structure with high levels of profitabilityin recent years, enabling the Group, as hasbeen the practice in the past, to finance its growth30 VICAT - 2009 registration document