6 - Vicat

EXAMINATION OF THE FINANCIAL CONDITION AND RESULTS9 9.2. COMPARISON OF RESULTS FOR 2009 AND 20089.2.2.1.2. Change in operating profit of the Ready-mixedconcrete and Aggregates business(in millions of euros)2009 2008 Evolution(%)Operating sales 724 882 (17.9)Inter-sectorseliminationsContribution toconsolidated sales(29) (37) 22.0695 845 (17.7)EBITDA 83 109 (24.5)EBITDA/operatingsales (%)11.4 % 12.4 % -1 ptOperating income 24 58 (58.7)Sales in the Concrete & Aggregates business isdown by 17.9 % and by 19 % at constant scope andexchange rate. This decline reflects contrasting marketsituations with business that is still resisting thetrend in Switzerland, a revival in activities in Turkey,and a fall in business in the United States and inFrance. Operational profitability, measured in termsof EBITDA, has fallen by 26.4 % at constant scope andexchange rate, i.e. a decline in the EBITDA marginwhich was limited to 1 point, reflecting the strongrecovery of the business in terms of cutting costs, toreduce the effects of the significant drop in volumesand prices in Turkey and the United States. Personnelcosts went down by 2.5 % in euros and 4.8 % at constantscope and exchange rates because of the positiveimpact of costs reduction.After having recorded in France a net charge of € 16.6million related to the “Maurienne valley” dispute, theoperating profit is decreasing by 58.7 %.• Operating sales in France in the Ready-mixed concreteand Aggregates businesses have decreasedby 19.8 % at constant scope. This change reflects adecrease in concrete volumes (-22.7 %), and in aggregatevolumes (-21.8 %) and good performance insales prices. In this context, the EBITDA margin hasdeclined slightly over the year, increase in pricesand the costs cutting plan as part of the additional“Performance +” plan helped to contain most of thedrop in volumes.• In the United States, operating sales declined by36.2 % at constant scope and exchange rate, givena marked decline in volumes in the South-East (excludingthe effect of acquiring the Walker group)and in California. In this context, sales prices havefallen in California as well as in the South East. TheEBITDA margin has contracted sharply althoughthe fall was mitigated by the effects of the costcuttingmeasures.• In Turkey, operating sales in the Concrete &Aggregates business is down by 11.2 % in eurosbut has increased slightly by +0.6 % at constantscope and exchange rate. This change reflects aclear increase in concrete volumes in particular inthe Ankara area, which compensates a significantreduction in prices.• In Switzerland, operational sales have risen by10.7 % but only by 1.5 % at constant scope and exchangerate. Volumes have fallen slightly both forconcrete and aggregate, a trend which has sloweddown over the year. The EBITDA margin has risensignificantly, largely because of growth in the wastedisposal business.• In Senegal, sales volumes and prices have significantlydeclined in a context of heightened competition.This has resulted in a downturn in the EBITDAmargin.9.2.2.1.3. Change in operating profit in the Other Products& Services businessin millions of euros)2009 2008 Evolution(%)Operating sales 314 361 (13.0)Inter-sectorseliminationsContribution toconsolidated sales(63) (78) 18.7251 283 (11.5)EBITDA 26 31 (15.1)EBITDA/operatingsales (%)8.4 % 8.6 % -0.2ptOperating income 14 21 (34.1)Operational sales have decreased by 13 % at currentscope and by 14.2 % at constant scope and exchangerates with a more significant decrease in the Transportbusiness in France and the steady resilience of theprecasting business in Switzerland.The operating profit for the Other Products &Services business has reached € 14 million, down by34.1 % compared to 2008. This change is mainly dueto the decline in the transport business.2009 registration document - VICAT 79