VINCI - 2008 annual report

06
GROUP VINCI __ 2008 ANNUAL REPORT
MESSAGE FROM THE CEO
XAVIER HUILLARD
Director and Chief Executive Officer of VINCI
Steady and reliable are the two adjectives that best describe VINCI’s
performance over many years. And they are particularly meaningful during
the current period of economic uncertainty.
Our performance in 2008 bears the stamp of steadiness, with revenue
growth of 10% and profit in line with previous years. Our strategy of international
expansion and the development of technological niches stimulated
growth in our contracting divisions. Our concessions increased their
toll revenue despite the economic downturn. We are moving into 2009
with confidence, both in our contracting activities, where the order book
is at a record high, and in concessions, where the business model has
demonstrated its resilience. VINCI’s ability to finalise financing for major
public-private partnership (PPP) contracts amidst the financial turmoil of
the second half of 2008 confirms the credibility of this model.
We are confident for the short term; we have every reason to be just as
confident for the long term. Our business growth will be fuelled through
time by three underlying trends that are – and will remain – favourable
to us: increasing urbanisation; growing awareness of mobility issues; and
growing concerns about energy, whether relating to expanding production
facilities or improving the energy performance of buildings. VINCI is
fully in step with these major trends. We have expertise as a concession
operator, investor, constructor and service operator. We also have the
mass and resources needed to achieve our goals. These strengths give us
the capacity to meet even the biggest infrastructure needs. And we can
do so in all our markets, whether in developing economies where there
will be a plethora of new projects, or in mature economies that have to
modernise their infrastructure.
Although VINCI is a dynamic group in markets that will generate opportunities
for many years to come, the deterioration in the economic climate
leads us to expect a decline in business volumes in our target markets
over the medium term.
We will take advantage of this intermediate period to hone our principles,
our strategy and our managerial and social responsibility policies.
What are our principles? Disciplined, forward-looking management of our
companies with the primary goal of maintaining our operating margin,
even if that means a voluntary reduction in business volume. We have
to be more selective than ever in the projects we undertake, and adapt
our production tool and organisation rapidly to change. This, along with
prudent management of our cash and financial policy, will ensure that our
companies remain competitive and that our Group as a whole remains
sound.