Activity Report 2006
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Activity Report 2006 Building experience BESIX Group Activity Report 2006 Table of Contents 2 Activities Zones 4 CEO’s Message: Growth and Diversification 6 Board of Directors - Committees - Corporate Governance 8 Moving the Frontiers 10 Key Facts 2006 12 Health and Safety 16 Engineering & Costing: Hand in Hand 18 Human Resources 21 Business Units 22 Consolidated Key Figures 2006 23 Four Business Units 28 Concessions and PPPs 30 Seizing Opportunities - Activities 32 Buildings: Confirming our Acknowledged Know-How 36 Project Highlight: Aspire Tower: an Emblematic Tower 38 Project Highlight: New Court House in Ghent: State-of-the-Art Technology for Minimalist Architecture 40 Project Highlight: The Burj Dubai Tower: Always Higher 42 Infrastructure projects: a Diversified and profitable Segment 46 Project Highlight: Bijlmer ArenA Station: a Whole New Working Area in Amsterdam 49 Industrial Civil Engineering: where Technical Expertise Counts 50 Maritime and port Works: a Visiting Card 52 Project Highlight: LNG Pier at Bioko: Innovative Solutions to Complex Problems 55 BESIX R.E.D.: Strengthens its presence in Belgium and prospects Abroad 56 The Values Behind our Activities 58 BESIX Environmental: the Environment, a Fast-Growing Business 61 Socogetra & Cobelba: from Strategy to Concrete Reality 62 Jumping over Obstacles - Consolidated Financial Statement 2006 64 2006, A Vintage Year 66 Balance Sheet 68 Income Statement 70 Consolidated Cashflow Statement 71 Information Regarding the Consolidated Financial Statements 72 Group Companies 75 Captions 2 Activities Zones BESIX Group is a Group of industrial companies in the building construction and real estate sectors. Founded in 909, the Group has a record of regular and impressive growth. For over 85 years the Group has built up a solid international reputation, with experience in some fifty countries. Today it is working in twenty countries on four continents. The Group’s various entities operate in almost every area of the building sector. In addition to the activities of BESIX, Cobelba, Jacques Delens, Lux TP, Socogetra, Vanhout, Van Britsom, Verheye and Wust in the European Union, the Group is also present in Eastern Europe, North and Central America and in the Middle East via Six Construct. The BESIX Group has over Jamaica 6,000 employees worldwide. BESIX Group Activity Report 2006 Russia United The Netherlands Kingdom Poland Belgium Grand Duchy of Luxembourg France Italy Republic of Azerbaijan Morocco Algeria Qatar Libya Egypt United Arab Emirates Oman Cameroon Equatorial Guinea Congo CEO’s Message Growth and Diversification For BESIX, 2006 was a year of renewal and acquisitions. Our Group decided to move into higher gear through geographical expansion and diversification into new business areas so as to be able to profile itself as a multi-services group. construction markets and, last This is a first for the Group, but not least, secure supplies which has committed itself, not of raw materials by having its only to designing, financing and own quarries and production of building the project, but also asphalt and readymix concrete. – and in particular – to operating Improved Coverage of and maintaining it for 25 years, in the Belgian Market The Belgian market is consolidat- collaboration with a world-class ing fast. The BESIX Group there- partner. In July our Group acquired fore needs to maintain its lead Verheye in Diksmuide and position in order to intensify its We have created a new specialist Van Britsom in Oostkamp activities whilst ensuring its long- environmental business unit, – two companies specializing in term profitability. into which we have placed maritime and river construction Sanotec, a former subsidiary of and civil engineering works – to A Multi-Services Group Vanhout which has taken the extend its presence in northern name of BESIX Sanotec. This Belgium. The 50% shareholding EPC , BOOT 2, ppp and new business unit, which has a in GRWestkust also added licensing are synonymous with promising future, will cover both another string to our bow with long term income and profitability the domestic and international storage and recycling of soil and a must for a Group like ours. markets. and construction and demolition Our first EPC contract is for the waste as well as the treatment of design, building, civil engineering dredging sludge. work and electromechanical elements of a desalination unit in Order Book In October 2006 we passed a Algeria, which should produce EUR million new milestone by signing an around 200,000 m³ of drinking ,700 agreement for the acquisition water a day. of the Socogetra group and Cobelba in southern Belgium... At Ajman (United Arab Emirates) Parallel with these international This acquisition will position the we have become a reference successes, we have been BESIX Group in the roadbuilding partner for producing and selected by various Belgian sector, strengthen its presence on operating a sewage treatment and foreign partners to design, the civil engineering and building station and a sewer network. build, finance and maintain the BESIX Group Activity Report 2006 5 last stretch of the Antwerp ring growth, but we also remain very BESIX has therefore decided road, better known by the name active on the Benelux and French to become involved in building ‘Oosterweelverbinding’. The markets. Our order book stood Belgium’s future ‘Princess reference works here are the at € ,700 million at December Elizabeth’ polar station in the ‘Lange Wapper’, a ,200 metre 2006, a record level that should Antarctic. double-deck cable-stayed bridge, take our sales above € ,500 and a sunken tunnel under the million in 2007. Forecast River Scheldt. Construction will last for three years and the Several important worksites were 2007 will be a year of maintenance contract for 5. continued or completed in 2006. consolidation, stabilization Three projects deserve particular and integration. This strategy « All these initiatives and mention: the immersed tube tunnel should also enable us to seize acquisitions are converging at Roermond in the Netherlands, opportunities when and where towards the same a tower of more than 300 m, they present themselves and objective: transforming crowned by the flame of the Asian so continue the growth and our Group – a traditional Games at Doha in Qatar and, last development of our Group. building company operating but not least, our own ‘beacon’ The growth we have seen in the on the domestic and site, the Burj Dubai Tower. Group since 200 involves not international markets – into only technical innovation, but also a multi-service Group The organic growth of our the individuals who are its key providing real added value. Group, of course, reflects the players. Their know-how is our This evolution will create positive economic climate, but added value. more ambitions, challenges equally the quality of the men and development and women who are part of it Johan Beerlandt opportunities. » and their personal involvement in our business venture. There’s no Sales Revenues and stopping a winning team! Earnings up Sharply Quality and safety need to remain Our sales revenues have risen top priorities. Everyone of us from € 870 million in 200 to must keep his or her eyes € ,0 million in 2005 and riveted on this objective, so € ,276 million in 2006. This that it becomes automatic and growth is largely explained by a way of being, and not just BESIX’s high level of productivity, a question of meeting legal but also by the performance of obligations. The simple fact is subsidiaries like Jacques Delens, that there is no recognition of our Vanhout and Wust in Belgium and professionalism, of our technical in particular Six Construct in the skills and profitability, without a Middle East, which have achieved concern for quality and safety. 1 EPC: Engineering Procurement and impressive sales and earnings Construction figures. Our foreign operations Respect for the environment is 2 BOOT: Build Own, Operate & Transfer have been the main driver of our one of the priorities of our Group. 3 PPP: Public Private Partnership 6 Strategic and Executive Audit Committee Remuneration Committee and Nomination • Gerard Van Acker BVBA, Committee • Johan Beerlandt (Chairman) represented by Gerard Van • Nassef Sawiris Acker (Chairman) • Innosté SA, represented • Gaëtan peeters SPRL, • Philippe Muûls by Baron Jean Stéphenne represented by Gaëtan peeters • Philippe Vlerick (Chairman) • Philippe Quoilin SPRL, • Adel Bishai • Nassef Sawiris represented by philippe Quoilin • Johan Beerlandt • Jean-Jacques Delens • Karim Camel-Toueg • Paul Mouton 1 Johan Beerlandt is the permanent • Werner Dekkers representative of Bevafin SA Board of Directors Name Permanent Function End of representative mandate Innosté SA Baron Jean Stéphenne Chairman 2007 Bevafin SA Johan Beerlandt Vice-Chairman 2007 Managing Director – CEO Nassef Sawiris Vice-Chairman 2007 Philippe Muûls Director 2007 Gerard Van Acker BVBA Gerard Van Acker Director 2007 Philippe Vlerick Director 2007 Jean-Jacques Delens Director 2007 Manco Investment Company SCRL Bechara Soussou Director 2007 Adel Bishai Director 2007 Karim Camel-Toueg Director 2007 Baron paul de Meester Honorary Chairman Gaëtan peeters SPRL Gaëtan peeters Chief Operating Officer (Domestic Market) Philippe Quoilin SPRL Philippe Quoilin Chief Operating Officer (International Market) Werner Dekkers Chief Development Officer Paul Mouton Chief Financial Officer Frédéric de Schrevel Secretary General BESIX Group Activity Report 2006 7 Corporate