VINCI - 2005 annual report

CONSTRUCTION / PERSPECTIVES
/ PERSPECTIVES
A record order backlog
and a promising outlook
for coming years
Stepped-up
investments
in transport
infrastructure and
public facilities,
combined with
the increasing use
of PPPs, will lend
impetus to longterm
expansion.
100
VINCI 2005 ANNUAL REPORT
The order
backlog at VINCI Construction, reaching a record
€10.1 billion, amounted to 13 months of activity
at the end of 2005. With markets expected to continue expanding,
VINCI Construction foresees a further increase in its revenue in 2006.
The trend should be particularly noticeable in the Sogea Construction
and GTM Construction networks in France, the VINCI Construction locations
in Central Europe, Africa and the former French overseas territories and in
major projects and specialised civil engineering projects in the world market.
Leveraging its leading positions in most of its markets and continuing its
consistent policy of selective order taking, production method optimisation
and added value expansion, VINCI Construction expects to record a further
increase in earnings and to continue to generate substantial cash surpluses.
VINCI Construction’s growth momentum will continue, refl ecting primarily
organic growth but also targeted acquisitions aimed at strengthening its
network of locations and expertise, in line with its strategy of consolidating
and building signifi cant positions on all the markets in which it operates.
This long-term growth will be supported by increased spending on
transport infrastructure (motorways, new suburban systems, high-speed lines)
and public facilities (health care, security and education) in Europe and
by the concomitant development of PPPs and new forms of contracts to offset
the reduction in government and local authority fi nancial commitments.
Against this backdrop, the acquisition of ASF and the intensifi cation of
synergies with VINCI Concessions hold out major potential for growth within
VINCI Construction, especially in the area of major road projects in Western and
Central Europe. Meanwhile, the inclusion of VINCI Construction’s expertise in
overall offerings with a high service, project structuring and maintenance
content will meet the growing demand from local authorities for outsourced
public services and from private-sector players for outsourced global property
management. VINCI Construction is responding to these prospects by diversifying
into facilities management and environmental business lines.