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VINCI Construction Are Making an Outstanding Contribution to Infrastructure Development Throughout the World

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VINCI Construction Are Making an Outstanding Contribution to Infrastructure Development Throughout the World As the heirs of the great builders, the people at VINCI Construction are making an outstanding contribution to infrastructure development throughout the world. VINCI Construction is a strategic division within the VINCI group, world leader in concessions, construction and related services. VINCI Construction's goal is to be the construction company most appreciated and held in highest regard by its customers and partners and to closely involve its 46,000 employees in its development drive. page 2 VINCI CONSTRUCTIONAnnual Report 2003 CONTENTS MANAGEMENT TEAM, CHAIRMAN'S STATEMENT 2 PROFILE 4 A RESPONSIBLE GROUP 6 SOGEA CONSTRUCTION 8 GTM CONSTRUCTION 12 VINCI CONSTRUCTION FILIALES INTERNATIONALES 16 VINCI CONSTRUCTION UK - GERMANY - USA 20 VINCI CONSTRUCTION GRANDS PROJETS 24 FREYSSINET 28 COMPAGNIE D'ENTREPRISES CFE 32 1 2 9 4 8 7 5 6 3 MANAGEMENT TEAM 1 PHILIPPE RATYNSKI 4 JOHN STANION 7 RENAUD BENTEGEAT Chairman and CEO of VINCI Chairman and CEO of Managing Director, CFE Construction VINCI Construction UK - Germany - USA 8 JEAN-MARC FONTEYNE 2 JEAN ROSSI Human Resources Director 5 PIERRE BERGER Chairman of Sogea Construction of VINCI Construction CEO of VINCI Construction Grands Projets 3 ROBERT HOSSELET 9 FRANÇOIS RAVERY Chairman and CEO 6 BRUNO DUPETY Chief Administrative of GTM Construction and Financial Officer Chairman and CEO of Freyssinet of VINCI Construction page 2 ONWARD AND UPWARD together he improvement momentum at VINCI Cons- duction tools; meshing our network more closely on mar- truction is clearly reflected in its 2003 eco- kets where we have strong roots; expanding in a deliber- T nomic performance, with a 5% increase in net ate manner into new, promising markets; enhancing our sales, an 18% increase in net income and an order upstream added value in design, project engineering and backlog which stood at a record 7.5 billion euros, equal project structuring; broadening our downstream service to a year of activity, at the end of the year. and maintenance offerings; cultivating our focus on These results bear out the wisdom of our shared devel- opportunities and our spirit of innovation in order to, day opment plan. Supported by their strong entrepreneurial by day, devise the best responses to the needs of our cus- culture and a management model that fosters trust and tomers and our markets. And then, there can be no eco- enables everyone fully to express his or her talent within nomic progress without human progress. Our culture and a simple, responsive organisational structure, the our values, our vision and our strategy support and drive 46,000 employees at VINCI Construction share the the development of our people. same vision of their job as builders. Combining cus- We will be striving, today and tomorrow, to go onward tomer satisfaction with company performance and qua- and upward together. lity with productivity, this approach drives the develop- ment momentum that has made VINCI Construction the world leader – and the benchmark – in its sector. Building on these advantages, VINCI Construction will be intensifying its improvement programme in 2004, focusing on six strategic areas: striving for excellence in routine everyday work, especially by optimising our pro- Philippe Ratynski Chairman and CEO page 3 PROFILE As the world leader in building and civil LOCATIONS engineering, VINCI Construction brings together a unique range of competencies in building, civil engineering, hydraulic engineering and maintenance. The variety and quality of the SOGEA CONSTRUCTION expertise applied by an exceptionally close-knit network, France especially in France and in Europe, enable the group to achieve GTM CONSTRUCTION optimum coverage of its markets. France Heir to companies that were landmarks in the history of the VINCI CONSTRUCTION FILIALES INTERNATIONALES Europe, North and South America, Africa, Oceania construction industry and are now benchmarks in their VINCI CONSTRUCTION UK - GERMANY - USA respective fields, VINCI Construction is structured in seven Europe, North and South America divisions: VINCI CONSTRUCTION GRANDS PROJETS ● two multi-business-line, independent networks in France Europe, North and South America, Africa, Asia with a large number of locations which have strong roots on FREYSSINET Europe, North and South America, Africa, their local markets and work in close contact with their Oceania, Asia customers (Sogea Construction and GTM Construction); COMPAGNIE D’ENTREPRISES CFE Europe ● two international networks covering the full range of construction business lines in their respective areas: one in Central Europe, the French overseas départements and VINCI CONSTRUCTION DIVISIONS AND MAIN SUBSIDIARIES territories and Africa (VINCI Construction Filiales Internationales); the other in the United Kingdom, Germany and VINCI CONSTRUCTION SOGEA CONSTRUCTION GTM CONSTRUCTION FILIALES INTERNATIONALES the United States; Sogea GTM Sogea-Satom Campenon Bernard Chantiers Modernes Warbud ● a division dedicated to major projects in France and on the Construction Dumez FCC world market (VINCI Construction Grands Projets); Campenon Bernard TP Coca SMP Construction Barriquand Petit Hídépítö ● the world leader in specialised civil engineering (Freyssinet); Bateg Socra SBTPC Botte Sade Fondations Pitance Sogea Réunion ● finally, the group holds a 45% interest in CFE, the leader on Bourdarios Fargeot Sogea Mayotte Caroni Construction the construction market in Belgium (which itself owns a 48% Travaux du Midi Sogea Martinique Chanzy-Pardoux TMSO SIMP stake in Dredging International, one of the majors on the world Deschiron CMA Dodin Guadeloupe Dodin TPC GTM Guadeloupe dredging market). EMCC Delair-Navarra Cogit Manei Sogea Guyane Sicra Dumez-GTM Calédonie Sobea Environnement BPC Sogea TPI BPI Urban VINCI Environnement page 4 KEY FIGURES2003 NET SALES in millions of euros 7,668 NET CASH in millions of euros 1,136 OPERATING INCOME in millions of euros 222 NET INCOME in millions of euros 177 WORKFORCE 46,761 VINCI CONSTRUCTION VINCI CONSTRUCTION COMPAGNIE UK - GERMANY - USA GRANDS PROJETS FREYSSINET D’ENTREPRISES CFE NET SALES BY BUSINESS Norwest Holst Construction Socaso Freyssinet MBG BUILDING CIVIL Norwest Holst Soil Salvarem Terre Armée ABEB ENGINEERING Engineering Hydroplus Ménard Soltraitement CFE Brabant 43% Simplex Foundations Janin Atlas Inc. Bageci John Jones Excavation CFE Services 28% Crispin & Borst CLE VINCI Services CFE Nederland Conren CFE Polska Brüggemann 13% 7% CFE Hungary 9% SKE HYDRAULIC Sogesmaint ENGINEERING Bauunternehmung Ehrenfels DEME SPECIALISED CIVIL SERVICES AND MISC. Bos OVMB ENGINEERING G+H Innenausbau Vanderhoydoncks Engema G+H Schiffsausbau Nizet Entreprise Note: The key figures given above are contributions G+H Fassadentechnik to VINCI consolidated net income. They include G+H Kühllager- VINCI Germany’s subsidiaries VINCI Construction und Industriebau OHG and VINCI Bautec but do not include, in particular, goodwill amortisation related to Schuh Bodentechnik reclassification of securities within the VINCI Group. SKE Support Services Inc. page 5 SUSTAINABLE DEVELOPMENT a responsible group ully aware of its responsibilities as the world's leading building and civil engineering F company, VINCI Construction strives to combine economic, social and environmental performance in the long-term interest of the community and the company, of its employees and its customers and partners. HUMAN RESOURCES ACCIDENT PREVENTION Making the most of talents, enriching and sharing skills. Safety: Up to each and every one of us. The company's The VINCI Construction workforce increased by 1,982 people in first duty is to ensure the safety of the people working for it. The 2003. The group stepped up its endeavour to attract young people "Safety First!" programme, into its companies and to offer every employee prospects for pro- deployed in 2003, is based motion and a chance to make the most of their talents. Examples on strong group manage- are the "Coaching Team" at Sogea Construction, the extension of the ment involvement and GTM Manager programme to foremen and the organisation of induc- mobilisation of all employ- tion seminars for young executives in three new divisions. These ees. The large numbers of efforts are supported by an active training policy (implemented by awareness-raising activities the Sogeform Institute and the Marolles Technology Centre, among and dedicated tools for others), encouragement of mobility (twinning charters, streamlining exchanges (conventions, of expatriate status) and training, challenges, infor- knowledge sharing with an mation bulletins, intranet, intranet network linking all etc.) reflect the collective the entities. commitment. It produced In 2003, VINCI Construction an improvement in the Grands Projets launched an accident occupational accident fre- prevention - safety challenge designed quency rate in 2003. to raise awareness among all its teams (seen here on the CTRL construction site in the UK). Training in gondola operation at the GTM Construction Technology Centre in Marolles. page 6 A fleet of nimble companies. Strong, shared values: entrepre- neurial culture, responsibility, solidarity, fairness, transparency. Organised as "a fleet of nimble companies" and based on three prin- ciples – the worksite at the heart of the company, responsible and autonomous profit centres and networking of people and compa- nies. These values and this management model, firmly rooted in the history of VINCI Construction, lend it outstanding cohesion, vitality and responsiveness,
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