VINCI Construction 2 Management Team 2 Message from the Chairman 3 Profile 4 Economic Performance 6 a Responsible Group 10
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2008 Annual Report 5 cours Ferdinand-de-Lesseps 92851 Rueil-Malmaison Cedex – France Tél. : + 33 1 47 16 39 00 Fax : + 33 1 47 16 46 26 Internet : www.vinci-construction.com Contents VINCI Construction 2 Management team 2 Message from the Chairman 3 Profile 4 Economic performance 6 A responsible group 10 2008 business report 16 Building 18 Civil engineering 24 Hydraulic engineering 30 Services 34 Companies 36 VINCI Construction France 38 VINCI Construction Filiales Internationales 40 VINCI Construction UK 42 Compagnie d’entreprises CFE 44 VINCI Construction Grands Projets 46 Soletanche Freyssinet 48 ENTREPOSE Contracting 50 Management team 1 2 3 4 5 6 7 8 9 10 11 12 Richard Francioli 5. Pierre Berger 9. Dominique Bouvier Chairman of VINCI Construction Chairman of VINCI Construction Grands Projets Chairman and Chief Executive Officer 6. Bruno Dupety of ENTREPOSE Contracting 1. Jean Rossi Director and Chief Executive Officer 10. Raoul Dessaigne Chairman of VINCI Construction France of Soletanche Freyssinet Director of VINCI Construction 2. Sébastien Morant 7. Remi Dorval 11. Hervé Meller Chairman of VINCI Construction Filiales Internationales Chairman and Chief Executive Officer Human Resources Director of VINCI Construction 3. John Stanion of Solétanche Bachy 12. François Ravery Chairman of VINCI Construction UK 8. Jérôme Stubler Chief Administrative and Financial Officer 4. Renaud Bentégeat Chief Executive Officer of Freyssinet of VINCI Construction Managing Director of CFE and Chairman of Nuvia 2 Message from the Chairman A year ago I announced here that our focus in 2008 would be on consolidating our growth and securing relia- ble performance. This we have achieved, despite the fact that the economic environment has proved to be much less favourable than we thought at the time. With our revenue up more than 15% and our profit margin hold- ing steady at a record high, VINCI Construction remained on its virtuous growth trajectory. This reflects not only the rigorous management principles that are part of our genetic makeup, but also our strategic choices. By pro- actively expanding internationally, gaining a foothold in new technological niche markets and stepping up cross-fertilisation among our divisions, we have optimised our market coverage and diversified our risk profile. These well-advised actions have made our model more resilient and enabled us to move confidently into the current period. Our order book gives us good visibility for 2009. Our markets will be sustained over the long haul by long-term trends: increasing urbanisation, development of transport infrastructure and a growing focus on energy and environmental issues. But in the medium term, the deterio- ration of our economic environment will, we believe, result in an interrup- tion in the cycle of continuous growth that has seen our revenue more than double in five years. As we move into this period, we are stepping up our focus on rigour and anticipation. We will be selective in booking orders, responsive in adapting our plant, equipment and structures, consistent in optimising our methods and the productivity of our organisations and vigilant in our financial pol- icy and in the management of our contracts; in this way we will sustain our competitiveness. We will, at the same time, be working to pursue our man- ”By building on our agerial and human project, accentuating our efforts to train and promote our fundamentals in this way, employees, develop the skills we will need in future and uphold the values we will be in a stronger position and principles that constitute the bedrock of our group’s corporate culture. to rebound when our markets By building on our fundamentals in this way, we will be in a stronger posi- return to growth.” tion to rebound when our markets return to growth. Richard Francioli Chairman of VINCI Construction 3 VINCI CONSTRUCTION DIVISIONS AND MAIN SUBSIDIARIES VINCI Construction Profile France French market leader and a world major in construction, Arbonis VINCI Construction brings together an unparalleled array of capabilities Bateg in building, civil engineering, hydraulic engineering and services. Botte Fondations Campenon Bernard Construction Chantiers Modernes VINCI Construction’s activity is divided into three engineering), dredging and marine engineering works with DEME Dodin Campenon Bernard major complementary components: (in which CFE holds a 50% interest) and oil and gas infrastructure Dumez with ENTREPOSE Contracting; EMCC • a network of local subsidiaries in mainland France, with VINCI • management of complex projects with VINCI Construction GTM Bâtiment Lainé Delau Construction France, which has a network of 370 profit centres, Grands Projets, which operates in the world market for major civil Les Travaux du Midi and outside mainland France with VINCI Construction UK in the engineering and building structures. Manei United Kingdom, CFE (in which VINCI Construction holds a 46.8% VINCI Construction is characterised by its management model Petit interest) in the Benelux countries and VINCI Construction Filiales the Group’s cultural foundation and the guarantor of its cohesion. Sicra Internationales in Germany, Central Europe, Overseas France and Combining decentralised organisational structure, networking, Sogea VINCI Construction Africa; management empowerment and individual responsibility, the Terrassement • specialised business lines with high technical content: specialised model fosters company performance and makes the most of the VINCI Environnement civil engineering technologies with Soletanche Freyssinet skills of each and every employee. Over the past five years, revenue VINCI Networks (structures, special foundations, soil technologies, nuclear has doubled and operating profit has quadrupled. WORKFORCE 71,639 employees of which unlimited-term contract: 56,497 fixed-term contract: 13,975 work-study: 1,167 Operating profit from ordinary Revenue activities in € millions in € millions 15,722 773 13,653 668 2007 2008 2007 2008 4 VINCI CONSTRUCTION DIVISIONS AND MAIN SUBSIDIARIES VINCI Construction VINCI Construction Compagnie VINCI Construction Soletanche ENTREPOSE Filiales UK d’Entreprises CFE Grands Projets Freyssinet Contracting Internationales UNITED KINGDOM international INTERNATIONAL INTERNATIONAL INTERNATIONAL EUROPE, AFRICA, OVERSEAS FRANCE Norwest Holst CFE VINCI Construction Solétanche Bachy ENTREPOSE Contracting Taylor Woodrow Amart Grands Projets Freyssinet Challenger SOS SKE Crispin & Borst BPC Socatop Nuvia CMP Dunkerque G+H Bautec Gordon Durham BPI Hydroplus Terre Armée CMPEA Warbud Stradform CFE International WMI Ménard DBN (Nigeria) Prumstav-FCC Weaver CFE Nederland QDVC (Qatar) EIS (UK) SMP CZ John Jones (Excavation) CLE OEA ENTREPOSE Algérie Sogea-Satom VINCI Facilities Groupe DEME GEOCEAN (France) SBTPC VINCI Investments Druart Nymphea Environnement Sogea VINCI Education ENGEMA SPIECAPAG (Martinique, Reunion, Mayotte) Conren GEKA SIMP Nizet Dodin Guadeloupe Sogesmaint CBRE GTM Guadeloupe STEVENS Nofrayane Van Wellen Dumez-GTM Calédonie VMA Getelec REVENUE BY BUSINESS LINE 6% Facilities management 6% Hydraulic engineering 25% Specialised civil engineering 22% Civil engineering 41% Building REVENUE BY GEOGRAPHICAL AREA 52% France 17% Rest of world 1% North America 7% Rest of Europe 5% Belgium 8% Central Europe 10% United Kingdom 5 Economic performance A further year of strong growth. Although the economic environment was very different from that of previous years, VINCI Construction’s revenue increased 15% as a result of both acquisitions and organic growth. Efforts undertaken in recent years to broaden the company’s networks of expertise and to internationalise its activities have diversified its risk profile and enhanced its ability to weather business cycle fluctuations. NETWORKS OF LOCAL SUBSIDIARIES expected to benefit from the economic United Kingdom stimulus plan initiated by the French On a constant exchange rate basis, revenue Mainland France authorities at the end of 2008. grew 31.4% to €1,278 million. During the Following very strong growth in 2007, Overall business activity increased in the year, the company acquired Taylor Woodrow, business activity at VINCI Construction France service business lines (building maintenance, a benchmark in the British construction grew nearly 8% in 2008 to €6.7 billion, almost environmental services, rollout and market. This acquisition gave birth to VINCI exclusively through organic growth. The management of optical fibre networks), which Construction UK and the new entity has now simultaneous increase in profit and cash flow recorded revenue of €179 million. However, become one of the leaders in its market. It confirms this excellent performance, which it remained stable in hydraulic engineering enables VINCI Construction UK to expand was achieved in an economic environment works (€554 million) due to local authorities in the facilities management, rail and airport very different from that of previous years. waiting until after the election period to place infrastructure and public building (health care, Building, which accounts for two-thirds orders, and as a result of the financial crisis education) markets, while strengthening its of the total, increased 11% to €4.2 billion. that followed in the second half. portfolio of PPP contracts. Taylor Woodrow’s Housing in all its forms (public, private, new, Across all sectors, VINCI Construction France historic expertise in nuclear civil engineering renovation) made up about 27% of this generates over