Annual Report 2009 129 th corporate financial year Proud of their many realisations, the teams of the CFE group are pleased to present the activity report for the year 2009. Compagnie d’Entreprises CFE SA Founded in Brussels on June 21, 1880 Headquarters: 42, avenue Herrmann-Debroux, 1160 Brussels – Belgium Company number 0400.464.795 RPM Brussels Telephone: +32 2 661 12 11 Fax: +32 2 660 77 10 E-mail: [email protected] Internet: http://www.cfe.be 1 Edito As expected, the CFE group’s 2009 revenue and profit came in below those of the previous year, when it achieved its best-ever perform- ance. However, the decline in revenue (€ -125 million), operating profit (€ -19.3 million) and net after-tax profit (€ -8.2 million) was modest against the backdrop of the global economic crisis. All divisions made a positive contribution to profit. DEME deserves special recognition for again demonstrating its ability to strengthen its position in the international dredging market, fully vindicating the substantial investments made in recent years to modernise its fleet. CFE has many strengths that enable it to weather the economic crisis and move confidently into 2010. The order book, standing at € 2,024 million, is satisfactory, although construction activity is likely to decline from the 2009 level. We intend to resist the temptation to take orders at any price, concentrating instead on profit. To do this, our recent international expansion, especially in Tunisia, holds out good prospects for repositioning our activity. CFE’s broad diversity of business lines and geographical locations is an additional asset, as is our sound financial position, which shields us from liquidity problems. The CFE teams are therefore preparing the future with equanimity and with a great determination to succeed. They will be taking advantage of the challenges they face in the current market to better prepare for coming years. Renaud Bentégeat Philippe Delaunois Managing Director President of the Board of Directors < SQUARE – Brussels (BE) 2 CFE / Annual Report 2009 / 129 th corporate financial year 3 Strategy CFE intends to expand its capabilities in rail works, both in Belgium and on international markets. The CFE group forms a coherent Construction division approach. First, it intends to • good synergy with the group’s Property development and construction but, circumstances whole in which each division resign itself to the loss of busi- property development companies; management division permitting, also for office build- is supported by the others. The The order book of the construc- ness activity in those market • strong support from the conces- ings. In office space, buildings concessions and property devel- tion division declined by a segments where there is less sions division to meet the require- The group’s property develop- co-developed and already rented opment divisions award work to substantial 24% in one year. The work and to focus on maintain- ments of current contracting ment and management division in the Avenue Fonsny in Brussels the general contracting compa- reduction in orders is due to two ing margins rather than seeking procedures; again recorded satisfactory profit, will be sold during the year. nies, which in turn are potential factors to boost revenue. Secondly, it • good civil engineering-building confirming its well-targeted customers of the companies • execution of major civil will be proactively seeking new balance, which gives the group market positioning, primarily making up the multitechnics divi- engineering contracts signed in markets to compensate for the outstanding professional capabili- in Belgium and Luxembourg. Multitechnics division sion, which maintain the struc- 2008 (Coentunnel, Diabolo, the loss of business in markets that ties in both business lines; In 2010 the division will continue tures built under public private Liefkenshoek rail tunnel and the are temporarily less buoyant. • good grasp of market trends, to expand its activities in these CFE’s multitechnics division, partnership contracts. Similarly, ‘CrommeLijn’ project in Delft), The contract won in Tunisia in notably including a focus on envi- two countries and will also which grew substantially over many of DEME’s business lines which take up a part of the order December 2009 vindicate the ronmental quality at each step of launch the construction of an the last four years, had a very tie in with the civil engineer- book each year; strategy adopted by the group the construction process. apartment building in Gdansk, good year in 2009, albeit with ing activities carried out by CFE • reduction in new building three years ago, which is aimed Poland (a first for CFE property a few difficulties in heating and group companies. These are just orders, especially in a number of at boosting international activity The construction division will development) and start work on a climate control. a few examples of many syner- countries directly affected by the in major projects. not be systematically seeking 270-unit luxury apartment build- gies among the various divisions. economic crisis (especially Lux- acquisitions. However, it may take ing in Bizerte, Tunisia, in which In 2010, the division will be Their consolidation in 2010 will embourg and Central European CFE has many advantages that advantage of opportunities that CFE holds 25%. This interna- expanding its capabilities in a not prevent them from taking countries). enable its construction division arise, especially with a view to tional expansion will take place variety of areas: advantage of further opportuni- to go forward confidently despite developing niche activities that in parallel with the search for • in Belgium, the division will ties to grow and acquire addi- CFE intends to respond to this the current difficult economic complement its existing business new land in Belgium and Luxem- take advantage of any opportuni- tional capabilities. situation by taking a two-pronged environment: lines. bourg, primarily for residential ties for acquisitions, as it did in 4 CFE / Annual Report 2009 / 129 th corporate financial year 5 2009 with Elektro Van De Maele, capabilities in rail works, both tion projects in the German- stood at a very high level on But contracts for other, even which rounded out CFE’s offering in Belgium and on international speaking community and on the January 1, 2010, the year prom- larger, projects such as the in western Flanders; markets. MAVA project in the Netherlands ises to be a good one, especially bridge between Qatar and • internationally, following the and will also be closely tracking in view of DEME’s major fleet Bahrein may be signed in the creation of VMA Slovakia in 2004 developments in the Antwerp renewal in recent years. These course of the year. and the opening of a location in Concessions & PPP division ring road project, for which investments, fully vindicated Hungary in 2009, VMA plans to the Noriant consortium was by the company’s profits, will In a difficult economic envi- position itself in the Netherlands The first concession taken on by declared preferred bidder in continue in 2010 with a view ronment in which the main to be better positioned to take this division, the Turnhout car December 2007. to enhancing the company’s advantages will be creativity part in major civil engineering park, was opened in December competitiveness. Meanwhile, and rigour, CFE plans to do its works scheduled for the coming 2009. With regard to Rent-A-Port, DEME will be expanding its utmost to achieve what remains years. business initiated in Vietnam, diversified activities (oil and its primary goal – satisfying In addition to the ongoing execu- the Middle East and Nigeria is gas, environment, offshore wind its customers. In terms of its business lines, the tion of works in connection with expected to develop favourably farms, etc.) to meet demand, division plans to expand its capa- the Coentunnel PPP and the in 2010. which remains buoyant. Ambi- bilities in BMS (Building Manage- Liefkenshoek rail tunnel projects, tious projects in which DEME is ment Systems) and photovoltaic for which contracts were signed taking part or which its teams systems, already well covered by in 2008, and the company’s Dredging and environmental are studying could ultimately Nizet Entreprise. interest in the Bizerte marina, division provide a further boost to the acquired in 2009, the division’s company’s revenue and profits. Last but not least, the CFE group teams are looking to win new CFE’s dredging division, made For example, major works on intends to build on the experi- public private partnership con- up of the group’s 50% interest in the London Gateway and the ence gleaned by the Stevens and tracts. CFE was selected to bid on DEME, is doing very well. river Scheldt deepening projects ENGEMA teams to expand its school renovation and construc- Based on its order book, which will continue in 2010. With the concession and construction of the Liefkenshoek rail tunnel, the group CFE realizes one of its strategic objectives, to be an active player in this new market. 6 CFE / Annual Report 2009 / 129 th corporate financial year 7 Operational chart Compagnie d’Entreprises CFE CFE International Coordination Centre PPP & CONCESSIONS DIVISION 45% PARTICIPATIONS 18% 25% 50% 25% Parking Turnhout CONSTRUCTION DIVISION FLANDERS WALLONIA G.D. OF LUXEMBOURG THE NETHERLANDS CENTRAL EUROPE EXPORT * CENTRAL BELGIUM * * * 49% Middle East * Tunisie MULTITECHNICS DIVISION 64.95% REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES