6 - Vicat

Information on trends12.2. Trends and Objectives 1212.2. Trends and objectivesThe trends shown below are based on data,assumptions and estimates considered reasonable inthe opinion of the Group’s management. These data,assumptions and estimates could evolve or changedue to uncertainties, mainly related to the strongvolatility of the economic, financial and competitiveenvironment as well as to possible changes inregulatory measures in each country in which theGroup operates.In addition, the occurrence of certain risks, asdescribed in section 4. “Risk factors” of thisRegistration Document, could have a materialimpact on the Group’s business, financial positionand results.The Group does not undertake any commitmentsnor provide any assurances that it will achieve theobjectives mentioned below.12.2.1. Trends 2011For 2011, the Group considers that the lack ofvisibility due to developments in the global macroeconomicand financial environment on the onehand, and the impossibility, on the other hand, ofassessing the impact, that the various economicstimulus plans could have in some countries in whichthe Group is present, do not at this stage allow it todevelop specific and documented perspectives onthe financial performance that it is likely to registerfor the entire year in progress.12.2.1.1. The Group’s business prospects in its marketsThe Group summarizes the salient facts for its variousmarkets that were reported when the 2010 resultswere published :• In France, the Group anticipates a gradual recoveryin sales volumes during 2011, with prices expectedto stabilise or increase very slightly.• In Switzerland, the environment is likely to remainbroadly positive, with support coming from theongoing major infrastructure projects, and sellingprice levels that are expected to improve slightly.• In Italy, the Group anticipates that the situationis likely to remain difficult, with an unfavourablecompetitive environment. Nevertheless, given thecurrent levels of cement consumption, volumesshould gradually stabilise.• In the United States, even though visibility remainsvery limited on both the macroeconomic situationand the level of investment that states are likelyto realise, the Group anticipates a very gradualimprovement in its markets, in terms of bothvolumes and prices.• In Turkey, the improvement in the environmentin 2010 is likely to continue during 2011. Againstthis backdrop, the Group should be able to takefull advantage of the efficiency of its productionfacilities as a result of its investments under the“Performance 2010” Plan.• In Egypt, the Group points out that its industrialtool has not been impacted by the recent events.The Group remains confident in the outlook forthe Egyptian market and in its ability to take fulladvantage of its growth.• In West Africa, the market environment is likely toremain broadly positive, but will again be closelylinked to investments by government authorities inmajor infrastructure projects and also to trends inmoney transfers from West Africans living abroad.Leveraging on its fully modernised and efficientproduction facilities, the Group will continue topursue its expansion efforts across the entire regionof West Africa.• In India, the acquisition of a majority shareholdingin Bharathi Cement, and the start-up of the secondproduction line at the end of 2010, have enabledthe Group to strengthen significantly its positionin India, a market in which cement consumptionis experiencing strong growth. This partnership,which represent Vicat’s second major transactioncomplementing its existing joint venture VicatSagar Cement, will give rise to two major playersin southern India, ultimately with a total nominalcapacity of over 10 million tonnes and able to drawon substantial business synergies and ambitiousexpansion plans.• In Kazakhstan, Vicat has been satisfied by start-upof the Jambyl Cement plant reached last December,which has a capacity of 1.1 million tonnes. Thanksto its good geographical location andhighlyeffective production base, the Group shouldgradually be able to take full advantage of a marketpoised for solid growth in the construction andinfrastructure sectors.12.2.1.2. Group objectivesAgainst this backdrop, Vicat is determined tomove forward cautiously with its growth strategy,capitalising on :• Its solid financial structure;• The effects of the “Performance 2010” investmentplan, relating in particular to the reduction inproduction costs as a result of the modernisationof production facilities and the strengthening of the2010 registration Registration Document document VICAT 93