Annual report 2001 - GL events
Annual report 2001 - GL events Annual report 2001 - GL events
3 Other services The Group offers other services such as floral decoration, green space set-up and up-keep, and a hospitality service of hosts and hostesses. 3-4-2 Rental activity 3-4-2-1 Investment policy The comparison of the amounts invested in the course of the last four years in relation to net sales and net cash flow excluding working capital movements is as follows : (data in K€) 1998 1999 2000 2001 Net investments (1) 11 452 11 633 18 277 23 200 Net sales (2) 129 996 146 655 214 083 235 043 Net investments / Net sales 8.8 % 7.9 % 8.5 % 9.8 % Net cash flow excluding working capital movements 13 934 18 436 24 323 24 574 Net investment / Capacity of self-financing (1) 82.2 % 63.1 % 75.1 % 94.4% (1) Sources : consolidated tables of financing (addition of the lines : acquisition of intangible assets, tangible fixed assets and rental equipment and disposal of tangible and intangible assets) (2) Source : consolidated income statements The relative stability of the ratios shown in this table may be slightly modified according to markets for which some of these investments are intended. For the exhibition market, the major portion of the investments was realized mostly at the beginning of the 1990s and most of them are listed now in the accounts as a regular expense of service and maintenance. One exception to this tendency is that the equipment dedicated specially to certain shows (textile industry) is renewed every 4 or 6 years in accordance with corresponding contracts. Regarding the events market, however, the company has carried out major investments in particular in 2000 on the activity Structures & Grandstands to respond to demands from the Sydney Olympic Games and the market of events of tomorrow. Moreover, the activity of long-term rental realized by the subsidiary SFP calls for recurrent investments. The investments of Générale Location and its subsidiaries are either self-financed or backed-up by the establishment of medium-term reimbursable loans with an average period of about 6 years. These medium-term loans are subscribed either directly by the subsidiaries or by Générale Location who verifies each year the appropriateness between each subsidiary’s equity and the needs linked to their development. 3-4-2-2 Principal buildings and logistics tools In France, the Group operates from different sites which it mostly rents. Principal rented sites and the surface of their warehouses are as follows : • Brignais : proximity of Lyon (registered office and principal commercial companies, 47 000 m 2 ) • Châtillon : proximity of Porte de Versailles (GL Mobilier, 21 000 m 2 ) • Chilly Mazarin (Ranno Entreprise, 32 000 m 2 ) • Ivry (Décorama, 4 600 m 2 ) • Mitry Mory (GL Espace & Décor, 37 000m 2 ) • Flixecourt (SF Protection, SFI Gauthrin, 40 300 m 2 ) • Nantes (ISF, 27 000 m 2 ) Moreover Owen Brown owns its own buildings in Castle Donnington (28 000 m 2 ). Générale Location has also a fleet of transport and hoisting vehicles to handle the delivery on the sites in the shortest time periods, and depending on the season and the location of certain projects, Générale Location subcontracts to independent carriers. The industrial tool is made of in-house research and design departments, production sites of modular elements and repair units linked together through networking.
40 41 3-4-3 Supply of services 3-4-3-1 Staff The 1 850 employees who represent Générale Location’s wealth make use of their talents in a multitude of profession and expertise : upholsterers, decorators, architects, logistics technicians, designers, draftsmen, electricians, image and sound technicians… Specialists of state-of-the-art technology in data and multimedia have joined forces and added to all this traditional know-how. As a result of the acquisition of BS Vision, the number of employees is now 2000. This chain of expertise and team work is supported by a company spirit which prioritizes motivation, responsibility and the feeling of providing a service. GENERALE LOCATION through training sessions wishes to see its sales teams promote the concept of a global offer to their clients. This approach is reinforced by the catalogue Générale Location, where one find all of the services provided as well as all sorts of solutions proposed by the Group. 3-4-3-2 Supplying partners and sub-contractors The seasonal aspect, the development of the group, the distance of certain projects, and the clients‘ more demanding requests lead Générale Location to widen its relationships with many supplying partners and subcontractors. 3-5 Risk analysis 3-5-1 Clients risk The client risk is weak for three reasons : ● The first one is linked to the fact that Générale Location, as provider of services, has focused the essential of its corporate culture on the satisfaction of its clients‘ needs. Beyond close business relations with its clients, Générale Location considers that anticipation of needs, reactivity of teams, creativity, and necessity to imperatively respect deadlines of delivery of projects are just as important assets to maintain in order to develop its relationships with organizers, exhibitors and other companies clients for the long term. ● The second one is tied to the quality and the quantity of rental equipment that Générale Location has available for an event. ● The third one is related to the statistical dispersal of clients. The first 10 clients have represented 20 % of the consolidated net sales of 2001 considering that the biggest client has represented about 5.8 % of net sales. 3-5-2 Suppliers risk The supplier risk is weak. The first category of suppliers is made of sub-contractors who bring forth to Générale Location teams additional workforce for the building-up of projects, knowing that the engineering, the general overseeing, and the technical management always remain under Générale Location’s responsibility. Among the other suppliers of any significance (textile, carpeting, wood, structure,…), none has any incidence on the evolution of Générale Location. The evolution of the oil price and its impact on transportation cost and other raw materials do not represent a major risk factor.
- Page 2 and 3: Table of contents 1 Générale Loca
- Page 4 and 5: Lyon Tennis Grand Prix “ a satisf
- Page 6 and 7: Première Vision First class Vinexp
- Page 8 and 9: “Royal Ascot” Salt Lake City
- Page 10 and 11: Army Museum Silk museum City of Sci
- Page 12 and 13: ® Pierre-Louis DOUERE Architect :
- Page 14 and 15: Evolution of net sales : + 9.8 % Er
- Page 16 and 17: “ satisfying clients is our sole
- Page 18 and 19: “ satisfying clients for the bene
- Page 20 and 21: Picture by : MCO-SPORTS “ a devel
- Page 22 and 23: Board of Directors Chairman - Chief
- Page 24 and 25: 1 1. Person responsible for the ref
- Page 26 and 27: 2 General Information regarding Gé
- Page 28 and 29: 2 General Information regarding Gé
- Page 30 and 31: 2 Evolution of the capital of Gén
- Page 32 and 33: 2 Thresholds crossing Due to the pr
- Page 34 and 35: 2 2-5 Financial communication Press
- Page 36 and 37: 3 1989 Alliance between the Group P
- Page 38 and 39: 3 3-3-4 Venue management This marke
- Page 40 and 41: 3 3-4-1-1 Role played by Générale
- Page 44 and 45: 3 3-5-3 Risk linked to the activity
- Page 46 and 47: 3 3-7-2 Venue management The distin
- Page 48 and 49: 4 Evolution by market In 2001, the
- Page 50 and 51: 4 b - Operating profit Expressed as
- Page 52 and 53: 4 ● PACKAGE ORGANISATION PACKAGE
- Page 54 and 55: 4 ● DECORAMA DECORAMA (M€) 2001
- Page 56 and 57: 4 c - Future Prospects Générale L
- Page 58 and 59: 4 4-1-2 Five year financial summary
- Page 61 and 62: 58 59 4-2 Consolidated Financial St
- Page 63 and 64: 60 61 4-2-2 Consolidated Balance Sh
- Page 65 and 66: 62 63 4-2-4 Notes to the consolidat
- Page 67 and 68: 64 65 2-2-2 Consolidation scope The
- Page 69 and 70: 66 67 Tangible fixed assets Tangibl
- Page 71 and 72: 68 69 Net sales For shows, fairs, a
- Page 73 and 74: 70 71 Note 4 Other Intangible Asset
- Page 75 and 76: 72 73 Note 8 Rental Equipment Gross
- Page 77 and 78: 74 75 Breakdown of the corporate Ta
- Page 79 and 80: 76 77 The Mixed Annual General Meet
- Page 81 and 82: 78 79 Note 18 Loans and Debts The d
- Page 83 and 84: 80 81 The breakdown of charges for
- Page 85 and 86: 82 83 The analysis of the Exception
- Page 87 and 88: 84 85 Note 28 Other Risks Foreign C
- Page 89 and 90: 86 87 Scope of consolidation Compan
- Page 91 and 92: 88 89 4-6 Draft of proposed resolut
40 41<br />
3-4-3 Supply of services<br />
3-4-3-1 Staff<br />
The 1 850 employees who represent Générale Location’s<br />
wealth make use of their talents in a multitude of<br />
profession and expertise : upholsterers, decorators,<br />
architects, logistics technicians, designers, draftsmen,<br />
electricians, image and sound technicians… Specialists of<br />
state-of-the-art technology in data and multimedia<br />
have joined forces and added to all this traditional<br />
know-how. As a result of the acquisition of BS Vision,<br />
the number of employees is now 2000.<br />
This chain of expertise and team work is supported by a<br />
company spirit which prioritizes motivation,<br />
responsibility and the feeling of providing a service.<br />
GENERALE LOCATION through training sessions wishes to<br />
see its sales teams promote the concept of a global offer<br />
to their clients. This approach is reinforced by the<br />
catalogue Générale Location, where one find all of the<br />
services provided as well as all sorts of solutions<br />
proposed by the Group.<br />
3-4-3-2 Supplying partners and sub-contractors<br />
The seasonal aspect, the development of the group, the<br />
distance of certain projects, and the clients‘ more<br />
demanding requests lead Générale Location to widen its<br />
relationships with many supplying partners and subcontractors.<br />
3-5<br />
Risk analysis<br />
3-5-1 Clients risk<br />
The client risk is weak for three reasons :<br />
● The first one is linked to the fact that Générale Location,<br />
as provider of services, has focused the essential of its<br />
corporate culture on the satisfaction of its clients‘ needs.<br />
Beyond close business relations with its clients, Générale<br />
Location considers that anticipation of needs, reactivity of<br />
teams, creativity, and necessity to imperatively respect<br />
deadlines of delivery of projects are just as important assets<br />
to maintain in order to develop its relationships with<br />
organizers, exhibitors and other companies clients for the<br />
long term.<br />
● The second one is tied to the quality and the quantity of<br />
rental equipment that Générale Location has available for<br />
an event.<br />
● The third one is related to the statistical dispersal of<br />
clients. The first 10 clients have represented 20 % of the<br />
consolidated net sales of <strong>2001</strong> considering that the biggest<br />
client has represented about 5.8 % of net sales.<br />
3-5-2 Suppliers risk<br />
The supplier risk is weak. The first category of suppliers is<br />
made of sub-contractors who bring forth to Générale<br />
Location teams additional workforce for the building-up<br />
of projects, knowing that the engineering, the general<br />
overseeing, and the technical management always<br />
remain under Générale Location’s responsibility.<br />
Among the other suppliers of any significance (textile,<br />
carpeting, wood, structure,…), none has any incidence on<br />
the evolution of Générale Location.<br />
The evolution of the oil price and its impact on<br />
transportation cost and other raw materials do not<br />
represent a major risk factor.