cfe - annual report 2012

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CFE - Annual Report 2012


  • 1. Report- Year 2012 - 132e corporate financial yearAnnual report 2012 Renaud Philippe Bentgeat Delaunois Despite tough economic conditions in 2012, CFEs net profit of the group was almost 50 million
  • 2. 3Annual report 2012 Renaud Bentgeat Philippe Delaunois Managing Director President of the Board of Directors Despite tough economic conditions in 2012, CFEs net profit of the group was almost 50 million, while operating income was similar to the 2011 figure. CFE bolstered its financial position with a 100 million bond issue, which was fully subscribed in less than an hour, showing the level of investor confidence in the group. The order book remains strong and grew substantially in internation- al markets, offsetting declines in both Western and Eastern Europe. This bodes well for performance in 2013. The Rail & Road division (created in 2012 following the acquisition of REMACOM) and the Real Estate & Management Services division performed particularly well. The Multitechnics division added a new skill with the acquisition of Ariadne in Limburg. The Dredging & Environment division considerably increased its or- der book. DEME also carried out a significant financial transaction in early 2013, successfully issuing 200 million of 6-year bonds. The synergies between the CFE groups divisions and the good fit between its various activities proved their worth more than ever in 2012. This also shows the wisdom of the groups structure and its operating methods, which involve paying particular attention to its staff. It was no accident that the CFE group won two awards for its human resources policy in 2012. It was awarded Diversity accredita- tion by the Brussels Capital region, and won the 2012 Top Employer award for its conscientious, committed approach to its staff. This same conscientious, committed mindset also forms the basis of all the work CFE does for its customers, along with its desire to meet their requirements as effectively as possible at all times. By tak- ing this approach, CFE was able to ensure customer satisfaction in 2012, and will be able to continue doing so in future. This approach has also sustained long-term business relations and will continue to do so, and is leading to new relationships of trust between CFE and clients all around the world. Editorial
  • 3. 4 6 Strategy CFEs expertise increasingly valued around the world 10 2012 highlights 14 Board of Directors 18 Management Team Table of content ReportYear 2012 - 132th corporate financial yearAnnual report 2012
  • 4. 5Annual report 2012 24 The group CFE worldwide 18 Key figures 2012 27 Financial report 16 Operational chart of the group CFE Real estate development Multitechn. Rail&Road Dredging PPP-Conc.
  • 5. 6 CFEs expertise increasingly valued around the world In 2012, the CFE group pursued its policy of international expansion in all its businesses. It not only strengthened its presence in countries in which it has been operating for several years, but also substantially expanded its range of activities by winning several large contracts in new countries. The group is now aiming to establish a long-term presence in these countries. Its efforts will be sup- ported by the excellent quality of its work, stemming from its commitment to customer satisfaction. Strategy
  • 6. 7Annual report 2012 Customer satisfaction is a key part of the CFE groups business model and identity. It is one of the groups core values, and one that it does not intend to let slip. It is this focus on customer satisfaction that has en- abled the group to gain a strong image as a serious, credible and trustworthy company. This image is fully justified and generates future opportunities by promoting custom- er loyalty and supporting efforts to win new business all around the world. The groups structure and operating methods ensure that each entity devel- ops leading-edge expertise, and that its various business areas complement each other. Crucially, the group has great ca- pacity for innovation in a diverse range Artist impression of the new port in Doha, Qatar of high-potential business areas such as dredging, renewable energies and sustain- able construction techniques. It also has cutting-edge equipment with which to put innovation into practice, and is generating increasing synergies between its various entities. In this way, CFE remains a harmo- nious, balanced group generating top-level performance, and it is constantly growing and diversifying. In addition, its wide range of skills and activities enable it to provide comprehen- sive, co-ordinated solutions in-house. This is a considerable benefit for customers, particularly given that customers in CFEs business areas often require comprehen- sive solutions. Dredging: conquering new markets As regards DEMEs dredging business, the aim is to be present in new markets. In the fast-growing Australian market, for exam- ple, DEME won a prestigious contract from Wheatstone in 2012. As a result, Australia will represent 30% of DEMEs revenue in 2013. With this contract and the contract for the new port in Doha, Qatar, DEME won the two largest dredging contracts in the world last year. This success bodes well for the future, and means that DEME can look forward with confidence. The groups innovation strategy, which was already showcased by its research into off- shore wind power and the C-Power project off the coast of Belgium, also resulted in remarkable progress in tidal power in 2012, along with research into rare metals buried in the oceans. These advances mean that the group is able to win new contracts in niche areas that it has created, using the highly sophisticated tools and vessels at its disposal. DEMEs considerable investments in ul- tra-modern vessels and dredgers between 2008 and 2012 went entirely to schedule. As a result, the dredging business has caught up with its rivals and is now very well equipped to bid for all contracts in the market. Accordingly, DEMEs investments will pause in 2013. Ongoing international expansion efforts in construction and special techniques The international expansion of the groups construction activities was clearly con- firmed by its successful moves into Africa and Asia. This process will continue as CFE seeks to transform contracts into a long- term presence, taking advantage of the excellence it has shown when performing work. The Multitechnics division pursued its ex- pansion strategy, and its electricity, heat- ing and ventilation activities now cover all of Belgium. The groups latest acquisition, Ariadne, enhances this good geographical coverage. Efforts are now focusing abroad, with VMA already operating in Hungary, Po- land and Turkey. The Multitechnics division may increase its presence further in these
  • 7. 8 countries and could also expand into coun- tries like Chad and Nigeria, not to mention Asia, where CFE EcoTech is already oper- ating in Sri Lanka and Vietnam. The right project in the right place In Belgium, as elsewhere, location remains crucial in the real estate market, and the CFE groups operations are exemplary in this respect. All of its real-estate projects have excellent locations. Examples are the Belview project at the bottom of Rue Bel- liard in the centre of Brussels, the residen- tial conversion of Solvays former head of- fice on Chausse dIxelles, a stones throw from the Avenue de la Toison dOr, and the office project on land close to the Gare du Midi in Brussels, which is a particularly at- tractive site, including from the sustainable development point of view. In general, all land on which the group is developing pro- jects is excellently located, whether in Bel- gium, Luxembourg or Poland. Rail tracklaying works A new division focusing on trans- port infrastructure In 2012, the group set up its new Rail & Road division, combining businesses re- lating to the construction and equipment of railways and roads. Alongside ENGE- MA and Louis Stevens & Co, which are two growing companies operating in rail electrification, and the roads business of Aannemingen Van Wellen, the CFE group acquired Remacom, which specialises in laying rail tracks, in order to offer a com- prehensive solution. The group is planning to expand the Rail & Road division interna- tionally, enabling it to export its expertise in the medium term. Further international expansion in public-private partnerships The group is also taking an international approach to public-private partnerships, in which the PPP-Concessions division is currently working on projects such as the Liefkenshoek railway tunnel in Antwerp, the Turnhout car park, the Charleroi police station and the Eupen schools project. This international focus is shown by the Coentunnel project in the Netherlands and the Bizerte concession in Tunisia. Howev- er, Rent-A-Port has seen the greatest in- ternational development. In Vietnam, Rent- A-Port is handling the extension of Hai Phong port, and is working on expanding its activities in the region. Rent-A-Port also operates in Nigeria, and is involved in the Duqm concession in Oman, which is likely to see significant growth in future. More generally, the PPP-Concessions division is aiming to achieve gradual international expansion in its activities. Since this division shows major synergies with many of the groups other operations, this expansion will support CFEs efforts to e


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