VINCI - 2005 annual report

VINCI Construction
Grands Projets
€1.4billion
order backlog at end
December 2005
70 years in Africa
The opening of the prefabricated prestressed
pipe manufacturing plant in Sidi Bouknadel,
Morocco in 1931 marked the beginning
of the history of VINCI Construction in Africa.
It has continued for 70 years through
the company’s subsidiary Sogea-Satom,
which now operates in 19 countries.
IN BELGIUM, activity at CFE (excluding dredging) increased by 1.5% to
€554 million. Despite a fi ercely competitive environment, the margin
continued to recover, especially in the construction division, which accounts
for half of total business activity. CFE is also well placed in the buoyant
residential building and property development markets. Beyond that,
the increase of CFE’s holding in the Van Wellen company to 100% accelerates
CFE’s diversifi cation into the road construction market.
IN CENTRAL EUROPE, where VINCI Construction posted substantial growth
(36%), the performance of its subsidiaries once again demonstrated the
effectiveness of its strategy of combining strong local roots with the Group’s
management model. Business activity increased very substantially in the Czech
Republic and Slovakia (+52% to €125 million, in a market that expanded by
5.3% (1) ) and margins increased concomitantly. Growth was spectacular
(+73% to €230 million, with the market up 4.4% (1) ) in Hungary, where
Hídépítö is a major operator in the ambitious road infrastructure programme
currently under way. In Poland, Warbud concentrated on improving its margins
and deliberately held its revenue steady. In Serbia and Montenegro, new
hydraulic and civil engineering contracts boosted the development
of the Group’s recently-acquired locations (Novkol and Inter-Most).
IN AFRICA where Sogea-Satom has historic roots in some 20 countries
and is one of the leading building and civil engineering companies, activity
continued to grow at a fast pace (+26% to €355 million). Sogea-Satom
has opened new locations in the Democratic Republic of Congo, Uganda and
Kenya, where it won several hydraulic engineering and roadworks contracts.
Major road contracts in Chad generated a spectacular increase in revenue from
€29 to €67 million. In all the areas where it has longstanding and more recent
operations, the diversity of Sogea-Satom’s business lines - roads, earthmoving,
hydraulic engineering, civil engineering, building - enables it to offset cyclical
fl uctuations in international funding.
IN THE REGIONS OF THE FORMER FRENCH OVERSEAS TERRITORIES,
VINCI Construction’s local subsidiaries made the most of their closely networked
markets to post further increases in revenue (+16% to €366 million).
This trend was observed in all the territories (West Indies, Guiana, Reunion,
New Caledonia), where the local subsidiaries participate in a large number
of major projects in synergy with other VINCI Construction entities,
while carrying out their own core business activities.
ON WORLD MARKETS where the Group operates, the activity of VINCI
Construction Grands Projets returned to growth (+10.3% to €604 million)
following a contraction in 2004 and the order backlog at the end of the year
stood at €1.4 billion, equal to 29 months of activity. After completing several
major projects in recent years, the initiation of many new projects - especially
in transport infrastructure - in synergy with VINCI Concessions should support
activity growth for several years to come.
1. – Source: Bulletin Européen du Moniteur, 12 December 2005, quoting Euroconstruct.
CONSTRUCTION / ACTIVITY
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