VINCI - 2008 annual report

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BUSINESS REPORT
VINCI __ 2008 ANNUAL REPORT
ENERGY GROWTH MAINTAINED IN STABILISED MARKETS;
INTERNATIONAL EXPANSION
Following exceptional growth in 2007, VINCI Energies
further increased its business activity in 2008. Revenue
rose 7.3% to €4,614 million, mainly as a result of the fullyear
impact of the acquisitions made the previous year.
Operating as a highly responsive, locally rooted company,
VINCI Energies succeeded in maintaining its overall
positions in markets that had stabilised as well as its
operating margin on ordinary activities (5.3% of revenue).
In France, revenue increased 4% (2.6% at comparable scope of consolidation).
The diversity of VINCI Energies’ business lines and locations
smoothed the effects of wide differences in its markets. Buoyant
activity in the fire protection, energy infrastructure and telecommunications
markets and in a number of industrial zones thus offset the
completion of major works in the service sector and the slowdown in
orders placed by local authorities.
Internationally, revenue rose 15%, bolstered by the full-year effects of
the 2007 acquisitions and especially the integration of Etavis (which
has become VINCI Energies Schweiz) in Switzerland and Tecuni in
FACILITIES MANAGEMENT IN GERMANY
ENERGY
In Germany, two VINCI Energies business units specialise in facilities
management. They offer building automation systems (preventive and
corrective multi-technical maintenance) and management (general
services) under 5 to 10-year contracts (pictured above, maintenance
operation at the Augsburg technology park).
Spain. The year was a particularly good one in Germany, VINCI Energies’
largest market outside France, where revenue grew 7.5% and
performance was uniform across all the sectors in which the group
operates. Activity was also buoyant in Central and Eastern Europe (with
revenue up 31% to €131 million), where VINCI Energies has expanded
substantially over the last three years, and in Scandinavia, where revenue
and profit exceeded forecasts.
INFRASTRUCTURE
The power generation and transmission activity increased overall.
Business was particularly brisk in high and very high voltage networks
(Omexom brand) in France, driven by stepped-up investments by the
RTE (Réseau de Transport d’Electricité) power transmission network
aimed at reinforcing capacity, enhancing safety and burying infrastructure,
as well as by European network interconnection projects.
VINCI Energies also expanded its positions in the developing conventional
thermal power station and renewable energies markets. It
notably worked on France’s largest wind farm at Salles Curan in southwestern
France.
Rural electrification activity, bolstered by local authority investments
in network modernisation and burial, remained buoyant; in this market,
VINCI Energies business units have a track record and local roots
that serve them well.
In urban lighting (Citéos brand), despite the fact that municipal authorities
delayed decisions in the post-election period, VINCI Energies maintained
activity at the high 2007 level. Long-term contracts awarded by
local authorities to operate their urban lighting systems, most of which
included substantial investments aimed at saving energy, helped stabilise
activity. Future growth will be also driven by the development of
video surveillance services and new dynamic urban equipment (traffic
lights, traffic and urban access management, information for road
users, etc.).
In Spain, electricity supplier Endesa slowed investments, which in turn
impacted the activity of local subsidiaries Spark Iberica and Tecuni. In
the Czech Republic, on the other hand, new subsidiary Elektrotrans
recorded substantial activity in the second half and achieved a very
satisfactory profit level.
INDUSTRY
Despite the difficult economic environment, revenue in the industrial
sector rose a further 8% on the back of strong growth in 2007. VINCI
Energies combines strong roots in local markets, which generate a wide
range of generally recurring projects and multi-site process solutions
to support the international expansion of major industrial groups. These
solutions are for the most part provided under the
VINCI Energies offers local authorities a
broad range of services ranging from festive
illuminations to comprehensive traffic
and public lighting management.