Activity report .08 A century of building experience BESIX Group SA Avenue des Communautés 100 B-1200 Brussels – Belgium T +32 (0)2 402 62 11 F +32 (0)2 402 62 05 [email protected] www.besixgroup.com linknv.be General info Consolidated Key Figures 2008 2004* 2005* 2006* 2007** 2008** 2009 Turnover 877.0 1,014.0 1,275.8 1,560.2 2,091.3 EBITDA 63.8 52.4 77.6 88.9 132.0 EBITDA (%) 7.3% 5.2% 6.1% 5.7% 6.3% EBIT 38.0 30.8 49.8 54.8 88.4 Net result 28.4 36.2 40.6 51.6 75.0 Return on sales (%) 3.2% 3.6% 3.2% 3.3% 3.6% Order book 01/01 850.0 1,364.0 1,590.0 1,712.0 2,318.0 3,627.0 Equity 106.5 129.5 152.8 200.9 267.6 (*) BGAAP (Belgian Generally Accepted Accounting Principles) (**) IFRS (International Financial Reporting Standards) “A record year in terms of turnover and result. An exceptional order book”. Paul Mouton, CFO Evolution of Turnover Evolution of Order book (in ’000 €) (in ’000 €) on 01/01 2,500 4,000 3,627 3,500 2,091 2,000 +34% 3,000 1,560 2,500 2,318 1,500 1,280 1,276 2,000 2,706 1,712 795 1,014 1,000 1,590 877 1,500 1,364 676 1,538 344 296 1,087 1,000 850 1,051 710 500 811 765 340 581 670 600 500 921 654 780 625 539 510 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 2009 Benelux-France International Benelux-France International Key Figures 1 TURNOVER EBITDA +34.0% +48.5% € 2,091.3 MILLION € 132.0 MILLION NET CASH FLOW IFRS NET RESULT +55.7% +45.3% € 143.1 MILLION € 75.0 MILLION Turnover by Sector Turnover by Region Gulf region 31% Buildings 27% 53% Civil works 47% Belgium Others 10% 2% Marine works 12% 2% 5% The Netherlands 1% 3% Environmental Construction Quarries G.D. Luxembourg 2% 2% Eastern Europe France 3% management North Africa Central Others Africa 2 General info Message from the CEO Message from the CEO Financially, 2008 was a very good year for BESIX. Sales, at € 2.1 billion, were up 34% compared with 2007. EBIT rose from € 54.8 million to € 88.4 million (+61.3%) and net income from € 51.6 million to € 75.0 million (+45.3%). Johan Beerlandt, CEO Challenges & opportunities Targeting safety We are now feeling the effects of the crisis – already To carry out our work and projects successfully, apparent at the end of 2008 – especially in our in- special attention will be placed on safety in the work- ternational projects. Emirates such as Dubai are place. That remains one of our top priorities. In 2008, particularly affected. Even so, we remain confident in the majority of Group companies have performed the prospects offered by the Middle East, a market better than the average for our industry but ‘zero ac- in which we have been present since the 1960s, and cident’ is the goal towards which we must strive. which represents over 50% of our business. Other emirates, such as Abu Dhabi, and Qatar are already Centenary catching up, but we are interested in neighbouring countries. We are also looking carefully at regions of 2009 is also a special year for our Group. Created on the world such as Central Asia, (we are already active 13 January 1909 as the Société belge des Bétons in Rep. of Azerbaijan) or Australia (where important et Planchers tubulaires, it celebrates its 100th an- marine works are planned). niversary this year! What a history of projects and successes! Our company may be one hundred years A new structure that will enable us old, but it is as dynamic as ever and ready to face to bounce back new challenges. In order to position ourselves better to address these To demonstrate our concern for the society in which changes, our Group has adopted its strategy and we operate and evolve, the Group has established reviewed its structure in depth. The ‘Contracting’ divi- the BESIX Foundation. This foundation will work in sion has been restructured, using a double ‘product’ 3 areas: the environment, construction and facilitat- and ‘region’ approach. BESIX Group, which is active ing access to education for the underprivileged in in construction, real estate and concessions, intends society. to target its professional skills and know-how more precisely, focusing on ‘special projects’ and strength- ening its positions in PPP (public-private partnership). Johan Beerlandt Prospects Our order book stands at € 3.6 billion, up 50% from end-2007. This allows us to look to the future with confidence but also with realism. 2009 will be a year of stabilization, if not consolidation. Table of Contents 3 Table of Contents General info Consolidated Financial 1 Key Figures Statements 2008 2 Message from the CEO 90 Comments from the CFO 4 A Century of Experience 92 Balance sheet 93 Income statement Corporate info 94 Consolidated cashflow statement 8 Vision & Mission 95 Information regarding the Consolidated 10 Activity Zones Financial Statements 12 Corporate Governance 13 Board of Directors and Committees 96 Companies 14 Key Events 2008 16 Health, Safety, Environment (HSE) 19 Human Resources 22 Engineering, Materials and Structures Group organization Project Highlights 26 Group Structure 28 Business Units Schiecentrale 38 30 Contracting Biodiesel projects 42 32 Construction Timbabe Bridges 48 33 Large Buildings Riaba Bridges 49 40 Civil Works Benelux-France Port of Tangier 52 44 Civil Works International Burj Dubai Tower 62 50 Marine Works Sharjah waste water treatment plant 68 54 BESIX 56 International Subsidiaries 59 Construction Middle East 60 Dubai 64 Abu Dhabi 66 Qatar 67 Contracting New Developments 67 BESIX Sanotec 70 Socogetra 72 Franki Foundations Group Belgium 73 Regional Affiliates 74 Vanhout 75 Wust 76 Jacques Delens 77 Lux TP 78 Cobelba 80 Real Estate 84 Concessions 4 General info A Century of Experience 2009 is BESIX’s centenary year! This celebration marks a major milestone in the BESIX Group’s history 1 Initially called ‘Société belge des Bétons et Planchers • In the 1920s SBB went ‘overseas’ and did marine tubulaires (Brevets Herbst), société anonyme’ (SBB), works on a large scale for the first time. Three the company was founded on 13 January 1909 by kilometres of breakwaters were built for the port the three Stulemeijer brothers. They were based in of Valencia on the Mediterranean coast of Spain. Breda, the Netherlands, and established SBB’s first After this, SBB became a prominent contractor for office in Antwerp, Belgium. harbour, canal and river projects. Over the years, SBB has diversified its know-how • After the Second World War, SBB started working in different disciplines of the construction industry. in Congo and has continued to work in Africa ever At first, SBB was specialized in concrete works for since. From the 1950s, SBB began to diversify into industrial and infrastructure projects. the building market. A Century of Experience 5 • Since 1966, the Group has been active in the Gulf In the past 10 years, BESIX has also become a world 1 Employee reception region. The work was prepared in the Brussels’ leader in designing and building jetties for LNG for the Centenary headquarters and plant and equipment shipped loading or off-loading terminals. of BESIX Group, Tervuren – Belgium out from Belgium. On-site execution was entrusted For the 5 last years, it has opened up new horizons 2 to the joint venture Six Construct which combined for expansion in a constantly changing world. The Harbour, the expertise of the then six Group companies. Group now profiles itself as amultidisciplinary Valencia – Spain Two contracts were tackled simultaneously: the group. It has expanded its competences (environ- Abu Dhabi ‘corniche’ and a quay wall for Doha ment, roads, foundations) and has developed its harbour in Qatar. The Group has been active in the experience in new types of contracts (PPP, BOOT, region without a break ever since. DBFM). It wants to deliver custom-made solutions to its clients. It has sought to detect new niches, • Also during the 1960s, SBB was involved in the fruits of which it hopes to harvest in the coming major infrastructure works in Belgium, such years. The Group also wants to keep alive its as the Ronquières ‘inclined plane’ project on ‘pioneer’ spirit. the Brussels-Charleroi canal and the Kennedy tunnel on the Antwerp ring road crossing the river Scheldt. SBB also undertook various works in the port of Zeebrugge, including the new sea lock, quay walls for several docks and the breakwaters for the outer harbour. • Looking always for innovation, BESIX has devel- oped in-house an ever-more efficient self-climbing formwork for cooling towers. • At the end of the eighties, the Group entered the Eastern European market. From this first project onwards BESIX showed its ‘design & build’ know- how by completing a +500-room hotel in Moscow in the record time of 20 months. This contract was followed by various building projects in Poland and in other countries in Eastern Europe. • At the end of 2004, the year of the Management buy-out, SBB became BESIX Group. It was a new era for the Group. BESIX was selected to build the world’s tallest tower, the Burj Dubai Tower, in joint venture. • Over the past 20 years, BESIX has built up a solid reputation as a specialist of high-rise buildings 2 with references in Dubai, Abu Dhabi, Doha, Cairo, 1945 Warsaw, Rotterdam and Paris.