Contracting
Eurovia

Profile
Eurovia is a world leader in transport and urban development infrastructure. While continuing to nurture its strong roots in France, 42% of its revenue now comes from its international operations, primarily in Western and Central Europe and in the United States, Canada and Chile.

Eurovia is a multimodal construction firm, with integrated contracting and materials production business lines and a broad diversity of expertise, spanning:

– transport and urban development infrastructure. Eurovia builds roads, motorways, airports, rail and light rail infrastructure, as well as industrial and retail facilities. It also possesses extensive know-how in related areas, including urban renovation, signage, improving amenities, and environmental protection;

– industrial production. Eurovia operates a network of 430 quarries producing an annual 100 million tonnes of aggregate (Eurovia’s share is 80 million tonnes), 45 binder plants, 400 hot mix plants, 150 recycling facilities and 10 factories producing road equipment (signage, pre-fabricated concrete and anti-noise barriers, etc.). These businesses contribute to Eurovia’s revenue and profit growth while ensuring reliable supplies of materials for its projects;

– maintenance and services. Eurovia provides comprehensive maintenance and servicing of roads, motorways, rail networks and urban transport infrastructure. These activities include network operation, routine and winter maintenance, emergency response and temporary signage, etc. Eurovia also provides upstream design and coordination, consulting and technical support services.

 

“Eurovia will also benefit in most of its markets from growing recourse to PPPs for construction and renovation programmes
and transport infrastructure maintenance.”

 

Revenue: €7,930 Million

Operating profit from ordinary activities: €285 Million

Net profit attributable to equity holders of the parent: €187 Million

Workforce: 40,000 employees

Outlook

Eurovia expects little change in its level of activity in 2011 compared to 2010, with a slight increase in reported revenue, due to the first-time consolidation of Tarmac over a full year.

In France, urban transport and rail track construction will remain brisk, which should offset the expected decline in local markets. Outside France, expected growth in activity in Central Europe, Chile and Canada should compensate for flat or declining revenue elsewhere.

Eurovia’s efficiency plan, Performance 2012-2015, is aimed at boosting operating margins, pursuing targeted growth, especially in rail, North America and PPP projects, and investing in human capital, while focusing on innovation for sustainable development. Measures to adapt Eurovia’s organisation and sharpen its competitive edge, together with greater integration of materials production and contracting, are expected to achieve 2011 operating margins close to their 2010 level.

Several underlying trends should combine to support activity in the medium to long term. These include the huge demand for new transport infrastructure in emerging countries and the need to upgrade existing infrastructure in mature economies. As urban growth continues everywhere, policies to promote greater mobility will generate a constant stream of new urban development projects.

As a builder of multimodal infrastructure, embracing road, rail and light rail, airports, etc., Eurovia is especially well placed to meet these new policy challenges and play a role in national, regional and local projects. Its diversification into rail infrastructure is expected to pay off in France in particular, where severalhigh-speed rail projects are planned for the coming years. These include the South Europe Atlantic high-speed line concession, already awarded to VINCI, as well as programmes to upgrade regional lines.

Eurovia will also benefit in most of its markets from growing recourse to PPPs for construction and renovation programmes and transport infrastructure maintenance. Public authorities see these as an efficient response to the financial constraints they face. Synergies now at work within many of VINCI’s existing projects will speed this process.