VINCI - 2005 annual report

CONSTRUCTION EUROVIA CONSTRUCTION EUROVIA CONSTRUCTION /OUTLOOK
/ PERSPECTIVES
Continuing to deploy
integrated activities in Europe
On all its markets,
Eurovia will
be continuing its
policy of boosting
its construction
materials production,
storage,
processing
and distribution
capabilities.
80
VINCI 2005 ANNUAL REPORT
After
several years of strong growth, Eurovia’s business activity
is expected to increase at a more moderate rate in 2006.
Continuing to foster innovation, production optimisation and stepped-up
cross-border synergies, Eurovia is expected to record a further improvement
in operating profi t, to which the recovery of its Spanish and American
subsidiaries will be contributing.
In roadworks and industrial and retail development projects, the
complementarity between major infrastructure projects (especially those in which
the company works in synergy with other VINCI entities) and the many local
projects carried out for public and private sector customers enables the company
to provide optimum market coverage while limiting its exposure to risk.
In materials production, following on from its 2005 acquisitions, Eurovia
will continue its policy of expanding its construction materials production,
storage, processing and distribution capabilities on all its markets. The development
of integrated activities, especially on the new Eastern European markets,
secures the group’s supplies while optimising material laying costs. Concomitant
expansion of its recycling resources and expertise (facilities network, process
and product portfolio) will be a major strength, in terms of both road materials
production capacity and access to roadworks markets where environmental
considerations are becoming the decisive factor.
Urban development activities are expected to hold steady, especially in
segregated lane public transport roadbeds. Environment-related segments
(deconstruction, waste storage sites, noise abatement and air pollution
reduction) also constitute avenues for medium-term growth. Lastly, Eurovia
will put greater emphasis on growth in services, especially road network
maintenance, to increase its recurring business base.
Eurovia will also step up its coverage of markets in which it has acquired
signifi cant positions, especially in Eastern Europe, where it is expanding
its network to keep pace with the increase in major transport infrastructure
projects cofi nanced by the European Union. On all of its markets, ongoing
development of public-private partnerships and new types of public service
outsourcing contracts provide major opportunities for growth, in synergy
with the Group’s other divisions.