Annualreportgv Single 2017.Pdf

GRUPO ANNUAL REPORT 2017 Welcome to the Annual Report and Accounts of the Grupo Visabeira 2017 Table of Contents Grupo Visabeira 04 01 Opening 06 Message from the Chairman of the Board of Directors 08 Message from the Chairman of the Executive Committee 10 Corporate bodies 12 Shareholding structure 16 Where we are 18 Main businesses 20 2017 Overview 54 02 Analysis of consolidated results 56 Risk factors 62 Business evolution by area 67 Commitment towards society 102 Future outlook 108 Notes to the Report of the Board of Directors 111 Consolidated reporting documents 112 03 Consolidated financial statements 114 Notes to the consolidated financial statements 120 Assessment and certification documents 170 Grupo Visabeira 01 Report & Accounts 2017 | Visabeira Group Our Vision To be an economic group of large multinational expansion, seeking leadership in every sector and market we operate and differentiating ourselves with innovative concepts and integrated solutions that create value both for customers and shareholders. Mission To offer our partners and customers increasingly complete solutions, according to their needs and fulfilling their expectations, through an increasing productive and operational capacity. Thanks to the transdisciplinarity that defines us, we manufacture a great diversity of goods, provide services in a wide number of areas and we create multiple business opportunities. To improve the everyday lives of thousands of people, all over the world. 6 // To improve the everyday lives of thousands of people, all over the world. 2017 Creativity Values Innovation The values we assume as defining elements of the Visabeira brand are common to all the Dynamism professionals and the different areas of the organisation, proving to be decisive for the Competitiveness Group’s evolution and its continued success. Ambition // 7 Report & Accounts 2017 | Visabeira Group Message from the Chairman of the Board of Directors We have In 2017, the global economic activity tone of the success we have achieved. closed the confirmed the desired positive evolution Lastly, I would like to thank the vote of financial year of growth, having even exceeded expec- confidence of all stakeholders, especially tations, both in the European Union and our partners, suppliers and our main rai- of 2017 with in the Euro zone. The Grupo Visabeira, son d'être, our customers. With them, we a turnover driven by this favourable scenario and shall continue to follow the paths of the of 638 million leveraged by its own dynamics, regis- future, based on the competitive tered record highs in most of the main advantages of our brand, the training euros and an indicators. and expertise of our people and the EBITDA of We have closed the financial year of partnerships we have been strengthe- 124 million 2017 with a turnover of 638 million euros ning or expanding. Together, we shall and an EBITDA of 124 million euros, continue to write the future, day by day, euros, having having grown by 12% in relation to 2016 always focused on obtaining solid and grown by 12% and net profits exceeded the€ 50 million sustained results. mark, confirming the soundness of our In this context, our mantra for 2018 will in relation to strategies and attesting to the robust- be to grow and to improve each day. To 2016. ness of our business model. grow with the sustainability for which our These results show that the internationa- past and our legacy hold us accountable lisation strategy that the Group has been and with the boldness and motivation consolidating for several years now, which that new challenges always inspire in us. has enabled it to attain 64% of its turnover To grow with the resilience and dyna- in the external market this year, is correct mism that are part of our DNA, investing and will be vital to achieve the goal of rea- on the permanent construction of the ching 1 billion euros in turnover by 2020. future with increased confidence. In addition to the reinforcing of the Group's position in the main countries Thank you. where it is present, 2017 was marked by our entry into the Italian market, within our strategy of continually consolidating our presence in European markets, in countries such as France, Belgium, Ger- many and Denmark, where we already have an important presence, with our quality and excellence being recognised by the main operators in these countries. We would like to express a special re- cognition for all employees of the Grupo Visabeira, who have so well understood this challenge of growth and rigour. There are over 10,000 employees who, in the four corners of the world, through their commitment, dedication and effective performance, have allowed the Group to consolidate the implementa- Fernando Campos Nunes tion of this strategy, which is the corners- Chairman of the Board of Directors 8 // Mensagem do Presidente Message from the Chairman of the Board of Directors // 9 Report & Accounts 2017 | Visabeira Group The year 2017 was overall quite good for the Grupo Visabeira, both in terms of the growth of its activity in Portugal and in the world, and of the positive reinforcement of the main economic and operational indicators of the businesses we operate. In this financial year, the Group consolidated an important position in the Portugue- se corporate fabric and strengthened its international presence in a very significant way. Visabeira Global, in its core activities (telecommunications, energy and construction) continues to demonstrate high dynamism and sustained distinctive capabilities, having grown in all markets where it is present, particularly in Europe, through Constructel, which is increasingly recognised as one of the main European players, having been awarded, as part of a consor- tium with Orange (France Telecom), a ten- der in the amount of 100 million euros for the construction of the fibre optic network in Martinique. As one of the largest telecommunications and power network engineering service providers in Portugal, France, Belgium, Germany and Denmark, we have also expanded our business to Italy in early 2017, through the acquisition of Ieme, a company with more than 50 years of exis- tence and one of the main service providers for the incumbent energy operator in that country. Also worthy of note are our triple play operations (television, internet and voice), through TVCABO, in Angola and Mozam- bique, which in 2017, continued to grow steadily in terms of customers and active services, having reinforced its position as the first choice of consumers in each of those countries. With regard to Visabeira Indústria, the his- torical results of Vista Alegre and Bordallo Pinheiro confirmed the recovery already witnessed by these two historic Portuguese brands, giving further credit to Visabeira's management and business recovery capacity. Our strong commitment to innovation in product design and production proces- ses, coupled with a rigorous management and strong commercial dynamics, have reinforced the brand's notoriety in Portugal, also giving it a greater international dimension, which was sig- nificantly reflected in the fact that almost two-thirds of its turnover comes from the external market. Also in the course of 2017, we gave Vista Alegre greater economic and financial strength, through a capital increa- se of over 50 million euros, thus preparing the company for the expansion phase we are implementing. 10 // Mensagem do Presidente da Comissão Executiva Message from the Chairman of the Executive Committee In the financial It is also worth mentioning that the 10 collections that were distinguished Ria Stone, a subsidiary of Vista Alegre, with the "Red Dot Design Award" at the area, we which is expanding its production German Design Awards, among many continued capacity by 60%, has renewed its other awards achieved in 2017. contract with IKEA, which guarantees As a corollary, the Group recorded a tur- to reduce the full purchase of its production nover of 638 million euros, of which about the need for until 2026, representing a global 64% comes from customers abroad, thus turnover of EUR 250 million. reinforcing its multinational character and financing As for Visabeira Turismo, we highlight the decidedly carrying out its Vision to beco- in 2017, having consolidation of the business in its main me a Pluricontinental Group. units, with the growth and improvement In 2017, EBITDA grew by 12%, to 124 decreased this of the main operational and economic million euros, and net results surpassed heading by indicators, as well as the focus on the the 50 million euro mark, translating into a future, with the portfolio of new projects 77% growth over the previous year, 154 million already underway in Lisbon, Alcobaça, which reflects the Group's good euros Caldas da Rainha and also in Aveiro, performance in this year. in the last with the refurbishment of the Vista Alegre In the financial area, in 2017, we conti- workers' quarter. nued to reduce financing, an item that has 2 years, Every day, all around the world, appro- decreased over the last two years, by 154 making ximately ten thousand highly qualified million euros, making the Grupo Visabeira employees work to provide products and increasingly robust, balanced and able to the Grupo services that meet the highest standards meet the future challenges of growth and Visabeira of quality and rigour, thus honouring the consolidation in the geographies in which Visabeira brand and demonstrating the we operate. increasingly capacity for achievement that characterises In closing, I would like to leave a word of robust and the group. great appreciation to our customers and Its Values – Innovation, Dynamism, Creati- partners, who continue to honour us with balanced. vity, Ambition and Competitiveness – are their trust along this path of almost four transversal to all professionals decades. Increasing their trust is our main working in the different areas of the orga- purpose.

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