Page 1

ANNUAL REPORT 2011 131th corporate financial year


Table of content The Group CFE Edito Strategy Management Operational chart Board of Directors Some information on the share and exercise of the rights Strong focus on people and the environment A responsible company that cares for its environment 2011 highlights

3 5 8 10 12 14 23 33 36

Activities PPP-Concessions division

38

Real estate development and management services division

44

Construction division

52

Multitechnics division

68

Dredging and environmental division

80

Financial report Management report of the Board of Directors Consolidated financial statements Statutory financial statements

COMPAGNIE D’ENTREPRISES CFE SA Founded in Brussels on June 21, 1880 Headquarters : 42, avenue Herrmann-Debroux, 1160 Brussels - Belgium Company number 0400.464.795 RPM Brussels Telephone: +32 2 661 12 11 Fax: +32 2 660 77 10 E-mail: info@cfe.be Internet: http://www.cfe.be

104 150 226


Key figures

Consolidated statement of comprenhensive income in millions of EUR IFRS 2007

2008

2009

2010

2011

1,467.6

1,728.4

1,602.6

1,774.4

1,793.8

Operating result

99.0

112.4

88.6

99.1

84.9

Profit before tax

83.9

95.4

76.8

85.2

69.2

Revenue

Net profit of the group

62.4

69.9

61.7

63.3

59.1

Gross self-financing (1)

156.5

185.4

174.0

195.0

171.5

EBIT (2)

100.7

113.7

91.2

99.1

84.9

EBITDA (3)

166.9

196.2

184.2

197.3

181.6

Equity – part of the group (before distribution)

317.3

357.7

413.3

466.1

501.7

(1) Gross self-financing margin: see consolidated cash flow statement on page 152 of the consolidated financial report. (2)

EBIT: operating result + income from non-current financial assets + result from associates.

(3)

EBITDA: EBIT + depreciation and impairements + other non-cash items (under IFRS)

Consolidated statement of financial position in millions of EUR IFRS 2007 Equity

322.9

2008 368.2

2009 423.8

2010

2011

475.4

508.8

Working Capital

103.1

133.5

152.3

248.0

350.0

Investments in tangible and intangible assets

101.2

156.8

190.2

223.3

217.6

66.9

73.4

82.1

98.3

101.5

Depreciation

Annual growth IFRS 2007

2008

2009

2010

2011

Revenue

26.1%

17.8%

-7.3%

10.7%

1.1%

EBIT

52.8%

12.9%

-19.8%

8.4%

-14.2%

Result of the year

53.3%

12.0%

-11.7%

2.5%

-6.7%

Data by division Evolution of the operating result 150

100

dredging

50

m u lt i t e c h n i c s r e a l e s t at e d e v e l o p m e n t construction ppp-concessions

0 2007

2008

2009

2010

2011


Evolution of the order book 2.500

2.000

1.500

1.000 dredging m u lt i t e c h n i c s r e a l e s t at e d e v e l o p m e n t

500

construction ppp-concessions

0 2007

2008

2009

2010

2011

Evolution of the revenue 2.500

Key figures

2.000

1.500

1.000 dredging m u lt i t e c h n i c s r e a l e s t at e d e v e l o p m e n t

500

construction ppp-concessions

0 2007

2008

2009

2010

2011

Ratios IFRS 2007 EBIT/ revenue

2008

2009

2010

2011

6.8%

6.6%

5.7%

5.6%

4.7%

EBIT/ cash flow

64.3%

61.3%

54.4%

50.7%

51.7%

EBITDA/ revenue

11.4%

11.4%

11.5%

11.1%

10.1%

Net profit of the group / equity – part of the group

19.7%

19.5%

14.9%

13.6%

11.8%

4.3%

4.0%

3.9%

3.6%

3.3%

Net profit of the group / revenue


ANNUAL REPORT 2011

131th corporate financial year

1


2 P么le Construction


Edito CFE put in a highly resilient performance in tough economic conditions in 2011. Revenues were stable compared to 2010, operating profit was €84.90 million and net profit after tax amounted to €59.10 million. All business lines contributed to the Group’s performance. Despite an incident affecting a remediation project in Brazil, DEME significantly strengthened its position in the dredging sector, winning some major contracts, particularly in Australia. DEME also continued to modernise its fleet, enhancing its prospects in terms of winning business in the coming years. The Group also developed its skills base further in 2011, particularly in the multitechnics division. CFE acquired ETEC, a company based in the Walloon region in Belgium, specialised in public lighting. Together with the commercial success of VMA in Turkey and Slovakia, this acquisition enhances the growth prospects of the multitechnics division, which now accounts for 10% of total revenues. The construction business ended the year with a historically high order book. Order intake was driven in particular by international projects, with CFE now operating in Tunisia, Algeria, Chad, Nigeria and Qatar. The Group also won some major property development contracts in 2011. BPI and CFE Immo are involved in some of the Belgian market’s most high-profile projects, such as the Solvay site in Ixelles, Van Maerlant in the European district of Brussels, the Lichttoren project in Antwerp, the Oosteroever residential project in Ostend and the Victor project opposite the Gare du Midi in Brussels. The PPP-Concessions division won the contract for the Charleroi police station. Work on this project, which won the Futura award during the MIPIM Cannes 2012 fair, will continue until 2014. In Vietnam, Rent-A-Port’s work over a number of years was rewarded by Bridgestone’s decision to set up operations at the Hai Phong site. Again, the outlook in this division is encouraging. CFE started 2012 with a particularly strong order book and a great deal of confidence. The Group’s diverse business and geographical mix, combined with its constant quest for synergies between its various divisions, mean that performance is expected to improve further this year. In this respect, the high level of motivation among CFE’s staff is a major advantage. CFE has just been named one of Belgium’s «Top Employers» of 2012. This new accolade will help the Group hire the staff it needs to address new challenges, including that of maintaining and increasing client satisfaction.

Renaud Bentégeat Managing Director

Philippe Delaunois President of the Board of Directors

Ostend - DP II Jack-up Neptune

3


4 Strategy


Strategy

Increasing diversification and international development In 2011, the CFE Group continued to grow in accordance with its strategy by focusing on international development, strengthening its multitechnics division and making sustainable development an integral part of all its activities. More than ever, the Group demonstrated the effectiveness of its structural and operational model. The model’s strength lies in the good fit between business lines and the resulting synergies, making the business ideally suited to meet growing market demand for comprehensive solutions. Customer satisfaction is a core priority. The model also underpins CFE’s reputation as a highly reliable and top-quality partner.

A coherent structure that generates synergies No company is part of the CFE Group by chance: the Group is a coherent collection of complementary entities and business lines. In upstream businesses, property development companies handle the entire development process: purchasing land, selecting projects, obtaining permits, carrying out construction work and selling properties to homeowners and investors. The PPP-Concessions division, which in 2011 won the contract to build a new police station in Charleroi, is a major advantage for CFE when bidding for contracts, since it can offer project-financing expertise to local authorities. It also works on long-term contracts, whereas the rest of CFE’s activities are more short-term. Whenever the Group is involved in the upstream part of a property development or concession project, synergies come to the fore. For example, general contracting units carry out construction work, specialist electricity and HVAC units install equipment and facilities, and civil engineering units build infrastructure and perform other works. Maintenance is then carried out by specialist subsidiaries like Aannemingen Van Wellen (roads), MBG (civil engineering) and be.Maintenance (multitechnics). The finance and concessions departments arrange financing for all activities. In addition, our entities specialising in dredging, civil engineering and marine engineering, such as GEKA, increasingly work together in Belgium and the Netherlands, and even in certain projects in Germany and Denmark. As a result, the CFE model is based on a logical integration of the value chain, with synergies arising between the Group’s various companies. The Group is maintaining its balanced and complementary range of businesses as it continues to grow and diversify, developing new business lines and integrating new companies while also seeing its investments in DEME generate equivalent growth. As a result, the dredging business accounts for 50% of the CFE Group’s business, just as it did eight years ago.

Amsterdam - Coentunnel

Strategy 5


Customer satisfaction: a core priority In our business lines, customers very often need a comprehensive solution, enabling them to deal with a single point of contact. In the concessions field, the PPP-Concessions division is able to provide these comprehensive solutions. In rail projects, for example, customers want companies that can lay the track and install both signalling and overhead wiring. Marine works and dredging customers also want a single solution. CFE is able to meet the expectations of all these customers. With its broad range of skills and businesses, the CFE Group - representing all of its component units - can offer a single point of contact and a comprehensive, internally co-ordinated response. This represents a considerable benefit for customers. The same is true for the dredging business, whereby DEME represents all of its subsidiairies. CFE is now well known as a reliable, credible, trustworthy partner. This is proven by the recurrent business it receives from its loyal customers, and the strong relationships it has developed with the main decision-makers, particularly in Belgium, as a result of its high-quality service.

Ongoing focus on international business The current economic downturn means that international development is increasingly important. This is clearly the case for DEME, which obviously cannot rely only on the Belgian market and has always sought international growth in all its business areas, including dredging, environmental activities, offshore works and heavy lift operations at sea. The situation is different for the Group’s other activities. Historically, CFE has had a very strong international business. However, the Group sold its main African subsidiary in 2000, followed by other international activities. In the early 2000s, the international business consisted solely of limited activities in Poland and Hungary. In the last few years, however, CFE has resumed international growth and is now aiming to have an international presence in all its business areas.

Construction: presence in Central Europe and increasingly Africa In construction, CFE has long-established subsidiaries in Central Europe (Poland, Hungary, Slovakia and Romania) and is determined to increase its presence in Africa. In 2011, the Group had major success in this region, including the completion of work on Toukra University and the signature of further substantial contracts in Chad. In Nigeria, which is one of Africa’s most dynamic and populous countries, CFE won a contract to build a residential tower for a local private-sector partner. In January 2012, the Group signed a contract to build BNP Paribas’ headquarters in Algiers. This represents CFE’s first project in Algeria, where it hopes to establish a permanent presence. In Tunisia, CFE has been working on the Bizerte concession for almost three years, and construction projects are underway. The repercussions caused by the recent revolution on Tunisia’s economy and tourist industry are now over, leading to renewed growth prospects. CFE Middle East has been operating in Qatar for four years now. This company is intending to build its presence on the local market and expand into neighbouring countries including Abu Dhabi. In construction, 2011 was a year in which CFE reaped the benefits of its international efforts, winning some large contracts in a number of countries and preparing for future projects, particularly in Sri Lanka. These projects relate mainly to the construction of buildings. 2012 is likely to bring gradual international growth in the civil engineering and marine engineering businesses.

6 Strategy


Encouraging first steps in diversifying the international business The Group is also aiming to achieve international development in the multitechnics division. It has had some initial successes, mainly through VMA and its automation activities in the automotive industry. In addition to its long-standing presence in Slovakia, VMA won a contract in Hungary and, more recently, in Turkey, where it has recently set up VMA Turkey in order to bolster its presence in the country. In Poland, CFE is planning to set up a subsidiary called VMA Polska in order to achieve synergies with the CFE Polska construction unit and develop general electrical activities. Although CFE’s property development activities have previously been restricted mainly to Belgium and Luxembourg, in 2011 they expanded into Poland. A team is already building a four-block residential complex in Gdansk and the Group has acquired various plots in Warsaw in order to develop offices, residential buildings and shopping centres.

Multitechnics division: strong growth The multitechnics division is relatively young, having been set up in its current form five years ago. The original aim was to offer the full range of services across all of Belgium. As mentioned above, CFE is now seeking to develop the multitechnics division internationally. In addition to its traditional activities in the rail, electricity and HVAC segments, the Group added maintenance in 2011 by setting up a specialist company called be.Maintenance. This company is likely to see rapid growth in the next few years. The division has also moved into public lighting following the acquisition of ETEC in Wallonia, and the business is likely to be developed through the creation of a specialist public lighting company in Flanders.

Rail: on track CFE has always had a strong rail business through its ENGEMA subsidiary, which has recently been joined by Louis Stevens & Co. ENGEMA initially specialised in the installation of catenaries, before moving five years ago into rail signalling, and is now a key player in Belgium in this market. To meet increasing demand for services including track-laying and the installation of signalling and catenaries, CFE intends to strengthen its track-laying business, which is an excellent fit with its rail electrics, roads and civil engineering businesses. For this purpose, the Group recently acquired the Belgian company Remacom in late February 2012.

Sustainable development: integral to the business CFE has made sustainable development an integral part of its developments over the last few years. The Group has a specific department that carries out research into new sustainable construction and operating methods on behalf of companies and projects. Various initiatives undertaken by the Group show the commitment of Group companies and staff to adopting an environmentally-friendly approach. In 2011, this resulted in the construction of passive and low-energy buildings, the installation of photovoltaic panels and the connection of wind farms, among other projects. Companies also took various in-house measures to reduce their energy consumption, use renewable energy, reduce CO2 emissions and recycle waste. Several Group companies are naturally geared towards sustainable development. They include CFE EcoTech, which purifies and recovers waste water, Groep Terryn, which specialises in wood-based construction, and DEC Ecoterres, which carries out soil remediation work.

Strategy 7


Management team CFE 2011

Patrick Van Craen

Bernard Cols

Diane Zygas

Managing Director CLE, Director Tunisia and Morocco, Director and General Manager CLi

General Manager of the multitechnics division, Director CFE EcoTech and CFE Polska

General Manager of the PPP-Consessions division (as from 01/02/2012)

Lode Franken

Renaud Bentégeat

Deputy General Manager construction division and Director DEME

Christophe Van Ophem General Manager CFE Brabant

8 Pôle Construction

Managing Director of the CFE group and Chairman of the management committee of DEME

Jacques Ninanne Deputy General Manager Corporate – Chief Financial Officer of the CFE group, General Manager of the PPP-Consessions division (until 31/01/2012) and Chairman of Groupe Terryn

Patrick Verswijvel General Manager MBG


Frédéric Claes

Yves Weyts

Patrick de Caters

Managing Director BPC and Director Amart

Managing Director Aannemingen Van Wellen, Director synergies and communication of the CFE group

General Manager BAGECI

Michel Guillaume Director Sustainable Development of the CFE group and Chairman Sogesmaint-CBRE

Jacques Lefèvre Managing Director BPI and General Manager CFE Immo

André de Koning Director CFE Nederland and GEKA

Gabriel Marijsse

Youssef Merdassi General Manager CFE International (including CFE Hungary, CFE Slovakia, CFE România*, CFE Middle East, CFE Tchad, CFE Algérie and COBEL Contracting Nigeria Ltd)

Human resources Director of the CFE group

Pôle Construction 9


Operational chart

P P P – C oncessions division

Real estate development and management services division

Construction division

45%

* polska

*

45%

*

p a r t i c i p at i o n s

18%

66%

*

*

25% 55% pa r k i n g t u r n h o u t

50%

*

25%

19%

HĂ´tel de Police Charleroi

luxembourg

* 49% Middle East

Tchad

100%

Tunisie

24/02/2012 o n ly t h e m a i n c o m p a g n i e s a n d b r a n c h e s a r e s h o w n

* 10 Operational chart

branches


CFE International C oordination centre

Multitechnics division

D redging and environmental

50%

65%

dredging

&

l a n d r e c l a m at i o n

environmental

marine

services

a g g r e g at e s

belgium netherlands uk

asia australia belgium india mexico middle east nigeria netherlands

65%

philippines

renewable energy

hydraulic engineering

s pa i n

and project

&

uk

marine works

development

terminal

&

marine services

deep sea mining

logo OCEANFLORE CMYK 100c/72m/0y/32k 0c/100m/100y/0k 69c/0m/100y/0k

Operational chart 11


Board of Directors CFE 2011

Renaud Bent茅geat Managing director

C.G.O. SA, represented by Philippe Delaunois Chairman of the Board of Directors

SA Consuco, represented by Alfred Bouckaert Independent director Member of the Nomination and Remuneration Committee

Richard Francioli Director Member of the Nomination and Remuneration Committee

12 P么le Construction

Philippe Delusinne Independent director Member of the Audit Committee


bvba Ciska Servais, represented by Ciska Servais Independent director Chair of the Nomination and Remuneration Committee

Jan Steyaert

Bernard Huvelin

Independent director Chair of the Audit Committee

Director

Jean Rossi Christian Labeyrie

Director

Director Member of the Audit Committee

P么le Construction 13


Some information on the share and exercise of the rights

Data in EUR per share 2007

2008

2009

2010

2011

13,092,260

13,092,260

13,092,260

8.59

6.77

7.57

6.49

11.95

14.16

13.3

14.89

12.54

95.4

4.77

5.34

4.17

4.83

4.51

Gross dividend

24.0

1.2

1.2

1.2

1.25

1.15

Net dividend

18.0

0.9

0.9

0.9

0.9375

0.8625

484.6

24.2

27.3

31.6

35.6

38.3

before split

after split (*)

654,613

13,092,260

13,092,260

Operating result

151.3

7.56

Gross self-financing margin

239.1

Net profit of the group

Number of shares at 31/12

Equity – part of the group

The stock exchange 2007

2008

before split

after split (*)

2009

2010

2011

Lowest price

EUR

947

47.35

22.90

16.00

32.10

35.03

Highest price

EUR

1,533

76.65

72.50

42.00

54.84

59.78

Price at the close of the FY

EUR

1,400

70.00

29.25

35.50

53.71

37.99

Average volume per day

shares

1,061

21,220

17,240

24,035

17,412

15,219

Market capitalisation at 31/12

Million EUR

916.46

916.46

382.95

464.78

703.19

497.4

(*) data taking into account that the shares of CFE SA are divided in 20

14 Some information on the share and exercise of the rights


Trend comparing the CFE price with the Bel 20 index For the year 2011 80 4,000 60

cfe

40

3,000 bel 20

20 2,000 0 december

january

february

march

april

mai

june

j u ly

august

september

october

november

december

2010

2011

2011

2011

2011

2011

2011

2011

2011

2011

2011

2011

2011

Over the last five year

100

7,000 6,000

80

cfe

5,000

60

4.000 bel 20

40

3,000 2,000

20

1,000

0 december

2006

december

2007

december

2008

december

2009

december

2010

december

2011

Some information on the share and exercise of the rights 15


Some information on the share and exercise of the rights As of December 31, 2011, CFE’s capital is made up of 13,092,260 shares. On October 8, 2007, the extraordinary shareholders meeting approved: - the proposal of the Board of Directors to dematerialise the company’s shares at January 1, 2008; - the proposal of the Board of Directors to divide by 20 the six hundred and fifty four thousand six hundred and thirteen (654,613) shares – without nominal value, fully paid up and representing the company’s total capital of twenty one million three hundred and seventy four thousand nine hundred and seventy one euros and forty three centimes (€21,374,971.43) at January 1, 2008. Accordingly, since that date, the company’s capital is represented by thirteen million and ninety two thousand two hundred and sixty (13,092,260) shares. The share dematerialisation and splitting process is still under way. The split of the registered shares has been carried out automatically and shareholders have been automatically recognised as the owners of the appropriate number of split shares in the shareholders’ register. The split of bearer shares recorded in the share register at January 1, 2008 has been carried out automatically and shareholders have been allocated the appropriate number of split shares. For the exchange and split of bearer shares still physically held, shareholders must either hand these in to a financial institution of their choice for registration in a stock account or to the company’s registered offices for recording in the shareholders’ register. The number of split shares will be recorded in the stock account or in the shareholders’ register. Since January 1, 2008, the exercise of any rights attached to bearer shares has been suspended for as long as they are physically held. Since that date, to participate in a shareholders meeting, the holders of such bearer shares must apply to have the shares exchanged for registered shares or have them dematerialised. Bearer shares issued by the company that have been neither registered nor recorded in the shareholders’ register will be converted legally into dematerialised shares on December 31, 2013. Euroclear Belgium has been appointed as the executor. Registered shares are held in electronic form and Euroclear Belgium (CIK SA) is in charge of managing them. There has been no issue of convertible bonds or warrants. Degroof bank has been appointed as the Main Paying Agent. Financial institutions with whom holders of financial instruments may exercise their financial rights are Banque Degroof, BNP Paribas Fortis and ING Belgique.

16 Some information on the share and exercise of the rights


Voting rights On October 16, 2007, CFE was informed by VINCI Construction, by virtue of the clauses of article 74, paragraph 7 of the Belgian law dated April 1, 2007 relating to takeover bids, about the following notification being made to the Bank, Financial and Insurance Commission :

Disclosure to the CBFA, pursuant to Article 74, § 6, of the Law of April 1, 2007, by a person who, at September 1, 2007, individually holds more than 30% of the securities with voting rights in a company listed on Eurolist, Alternext by Euronext or the Free Market (Marché libre/Vrije Markt)

1. Name of the issuer of the securities with voting rights that are held Compagnie d’Entreprises CFE 2. Full identity of the natural or legal person who, at September 1, 2007, individually holds more than 30% of the securities with voting rights issued by the company named under point 1 Legal person : VINCI CONSTRUCTION - société par actions simplifiée 5 cours Ferdinand-de-Lesseps F-92500 Rueil-Malmaison (France) Telephone : 33 1 47 16 39 00 Contact person : Mr. François Ravery 3. Full identity of the natureal and/or legal person(s) ultimately controlling the legal person named under point 2 Legal person :

VINCI - société anonyme 1 cours Ferdinand-de-Lesseps F-92500 Rueil-Malmaison (France) Telephone : 33 1 47 16 35 00

Contact person : Mr. Christian Labeyrie 4. Chain of control VINCI, owning 86.64% of the voting rights of VINCI CONSTRUCTION, holds the exclusive control of this last one. The remaining balance 13.36% of voting rights is in the hands of SOCOFREG, 100% owned by VINCI. VINCI is a private limited company listed on the stock exchange of Paris. As a result of the fragmented shareholderscompositition of VINCI, no one exercises control on the company. 5. Number and percentage of securities with voting rights held by the person named under point 2 Number of securities with voting rights held

306,644 securities

Percentage

46.84%

6. Date and signature of the person named under point 2 October 11, 2007 - François Ravery 7. Date and signature of the person named under point 3 3 October 11, 2007 - Christian Labeyrie. Some information on the share and exercise of the rights 17


On July 28, 2008, VINCI Construction informed CFE about the information transmitted to the Belgian Banking, Finance and Insurance Commission (CBFA) by VINCI Construction. According to this information, VINCI Construction owns 46.84 % of the capital of CFE. This percentage has remained unchanged since the last declaration on October 11, 2007. Furthermore, VINCI Construction does not own any other shares in a similar construction company owning shares in CFE. On August 19, 2009, VINCI Construction informed CFE that the participation of VINCI Construction into CFE remained unchanged since the last declaration on September 1, 2008, wereby VINCI Construction owns 46.84 % of the capital of CFE. On August 19, 2010, CFE received a copy of the new change notification submitted by VINCI Construction to CBFA, the banking, finance and insurance commission of Belgium. Although VINCI Construction continues to hold 46.84% of CFE’s share capital, the share capital of VINCI Construction, previously held 86.64% by VINCI and 13.36% by SOCOFREG, a wholly owned subsidiary of VINCI, is held 100% directly by VINCI since March 22, 2010. On August 19, 2011, VINCI Construction informed CFE, in accordance with Article 74 of the Belgian act of April 1, 2007, that there had been no change in the ownership of its capital since the previous notification on August 19, 2009, when it was 46.84%.

Belgian regulations regarding transparency The shareholder structure that is reported below can be found in the notifications that CFE has received on the date on which the annual accounts were closed, and in conformity with the regulations regarding transparency (Title II of the law of the May 2, 2007 on the publication of important participations in issuers, whose shares are listed for trading on a regulated market, and in conformity with various other regulations). - VINCI Construction S.A.S., with registered headquarters in the Cours Ferdinand-de-Lesseps 5 at F-92500 Rueil Malmaison (France), was on September 1, 2008 the owner of 6,132,880 shares with voting rights in the Compagnie d’Entreprises CFE SA, or 46.84 % of the voting rights of the company. VINCI SA, which exercises exclusive control over VINCI Construction, is the ultimate controlling shareholder of Compagnie d’Entreprises CFE SA.

vinci C o m pa n y l i st e d (CAC 40)

100%

on the

Paris

stock exchange

d i r e c t ly

vinci construction 46.84%

cfe

Uccle - Les Hauts Prés

18 Some information on the share and exercise of the rights


Some information on the share and exercise of the rights 19


The Group CFE

20 The Group CFE


The Group CFE 21 Mechelen - Construction of a underground car park


22 The Group CFE


Strong focus on people and the environment

Increased workforce At end-2011, the CFE Group employed 5,731 people, an increase of 7% relative to December 31, 2010. There was a significant increase in the workforce of two divisions in particular, i.e. dredging and environment and multitechnics which, because of its organic development and the acquisition of a new company, now has almost 300 more staff than in 2010. In the construction division, the number of manual workers fell, while the number of non-manual employees increased. This was due to substantial growth in international activities, particularly in Chad and Nigeria. Most recruitment was for foreign managerial positions. Transfers also took place within the construction division, with staff moving from Benelux entities to those operating internationally, including in Tunisia.

CFE’s people: a vital asset for today and tomorrow In order to ensure development and geographical expansion of our business and to offset natural wastage in the workforce, the Group maintained its active policy of external recruitment in 2011. Like last year, we had to recruit staff in some very specific business areas. Despite the economic situation, CFE also continued to hire young engineers, making a major investment in human resources for the future.

Professionals specifically qualified to work abroad International recruitment requirements increased sharply in 2011, but the Group succeeded in meeting them. To achieve this, CFE used new external recruitment channels in order to find expatriate or local people with the required experience, organisational abilities and skills to manage international projects. When recruiting externally, CFE only takes on staff with a proven track record, who know the local language and the local or regional environment, and are capable of dealing with the widest range of situations.

The right person in the right place In 2011, the Group faced a substantial humanresource challenge, since it had to find dozens of qualified, experienced professionals willing to work abroad to fulfil its international development requirements. CFE rose to the challenge in terms of both the number and quality of the people selected. Alongside external recruitment, the Group focused on motivating internal staff, with the result that many existing employees transferred to entities working outside their home country. This helped the Group achieve the optimum level of staffing relative to revenue.

The Group also stepped up its policy of internal transfers. We were pleased to see a genuine desire among our staff to work abroad, despite the general reluctance to change roles that is often a feature of the current jobs market. CFE was able to give several young project engineers with a few years’ of experience their first steps as expatriates. In this way, CFE has created a core set of experienced professionals capable of meeting the challenges of its geographical expansion.

Another feature of today’s jobs market is that a whole generation of people born just after the Second World War is now retiring. This is something that CFE has been anticipating for several years already. Nevertheless, it is increasingly difficult to recruit young engineers and graduates with technical degrees.

N’Djamena (TCD) - University of Toukra

The Group CFE 23


Working hard to realise employee potential In addition to its periodic individual appraisals, CFE set up Jobs and Resource Committees (JRC) for all entities. These committees provide a collective method of assessing staff, analysing the strengths and weaknesses of the Group’s organisations and seeing whether the future of its various business lines is assured. Most importantly, it allows the Group to pay close attention to its high-potential staff, ensuring that they rise through the ranks of their entity and within the Group.

24 The Group CFE


The Group CFE 25


Social indicators Staff per division Group & Concessions

Construction

Multitechnics

Real estate

DEME at 100%

Total CFE (DEME at 50%)

2007

68

2,589

622

90

3,060

4,899

2008

71

2,600

910

86

3,632

5,483

2009

79

2,299

977

84

3,668

5,273

2010

82

2,212

943

75

3,824

5,224

2011

84

2,305

1,232

70

4,080

5,731

Staff per trade 2011

Labourers

Group & Concessions

Employees

Total

2

82

84

Construction

1,333

972

2,305

Multitechnics

895

337

1,232

1

69

70

DEME at 100%

1,980

2,100

4,080

Total CFE (DEME at 50%)

3,221

2,510

5,731

Real estate

Staff per type of contract Contract indefinite period

Contract definite period

Work & Study

Total

2007

4.585

309

5

4.899

2008

5.112

366

5

5.483

2009

4.909

361

3

5.273

2010

4.829

389

6

5.224

2011

5.297

427

7

5.731

Age pyramide 2007

26 The Group CFE

2008

2009

2010

2011

< 25

469

561

487

438

482

26-30

691

805

761

767

814

31-35

664

758

722

719

803

36-40

763

810

767

735

786

41-45

716

792

777

752

821

46-50

543

629

616

663

754

51-55

590

583

585

577

632

56-60

350

426

422

437

472

> 60

113

119

136

136

167


Seniority 2007

2008

2009

2010

2011

<1

1,078

988

586

788

807

1-5

1,582

2,091

2,225

1,936

2,110

6-10

854

907

896

870

1,002

11-15

402

424

483

556

665

16-20

432

473

441

406

404

21-25

155

189

253

289

352

> 25

396

411

389

379

391

Men / Women Female employees

Male employees

Female labourers

Male labourers

2007

1,501

451

2,921

26

2008

1,742

519

3,195

27

2009

1,708

532

3,008

25

2010

1,761

549

2,898

16

2011

1,910

599

3,200

22

Training Total 2010

In numbers of hours by nature of training

Total 2011

Men

Women

Technical

25,131

29,792

27,895

1,897

Hygiene and safety

27,160

49,722

47,549

2,173

Environment

834

485

426

59

Management

4,570

6,412

5,567

846

Information technology

3,886

6,077

4,977

1,101

Admin/account/manag./legal

3,963

3,494

2,389

1,105

Languages

2,442

3,556

2,642

914

178

213

139

74

7,589

3,087

2,791

296

75,753

102,840

94,376

8,464

2008

2009

Diversity Others Total

Absenteeism 2007

2010

2011

Number of days absence due to illness

57,545

50,009

49,675

62,108

60,260

Number of days absence due to industrial accident

14,024

8,036

7,585

7,923

7,594

260

269

340

611

667

Number of days absence for acc. related to work/home travel Number of days absence due to professional illness Number of days worked Level of absenteeism

0

306

0

0

0

1,077,780

1,217,943

1,239,392

1,398,377

1,513,669

6.66%

4.81%

4.65%

5.05%

4.53%

The Group CFE 27


Schaerbeek - Crossing stadium

Fighting discrimination CFE strives to give all staff the same opportunities regardless of age, gender or nationality. It makes sure that women have a fair chance of promotion. In 2011, we recruited as many women as possible into operational roles, but female recruitment is limited by the fact that women make up a small proportion of students in the relevant universities. Female engineers are just as able to develop a career at CFE as their male counterparts. Several female project engineers have become project leaders, and we are hoping that some of them will become works managers and business unit heads. CFEâ&#x20AC;&#x2122;s diversity policy also extends to people born abroad and older employees. The policy has a very clear principle, which is that there must be no direct or indirect discrimination, and that only skills are taken into account when recruiting and promoting staff. The Group has organised a diversity awareness initiative aimed at operational staff in the construction division. In 2011, around 500 staff attended a play about diversity issues, in which professional actors dealt, in a highly entertaining way, with difficulties and problems to be avoided when recruiting and promoting employees. The partnership with Wheelit - an entity that fosters contacts between disabled people and companies - continued in 2011. As a result, CFE welcomed several new disabled employees last

28 The Group CFE

year. CFE also continued the collaboration with diversity consultancy Actiris, which began in 2010.

A broad range of training in all business areas As in previous years, the Group offered a large number of training courses in 2011 for staff in all divisions. The focus last year was on leadership and coaching training for project leaders. These residential courses, involving two sessions each lasting two days, were led by external experts and brought together people working for different divisions in order to promote contacts within the Group. Other training included safety sessions (such as first-aid training courses) and toolbox meeting sessions. They also included specific technical and safety sessions for staff in the multitechnics division and particularly electricians (working with optical cables, G3 modules etc.). There were also technical training and specific sessions for manual workers covering various skills including sessions covering crane-driving and formsetting, the securing of loads, and sustainable construction materials and techniques. There were courses on languages, IT, management, professional techniques and health and safety for staff in all divisions.


In the dredging and environment division, the focus was on safety, with almost 72,000 hours of training provided, twice as much as in 2010. Around 28,000 hours of technical training specific to this division were provided in 2011. There were sessions attended by crews at the Seamen Center Zeebrugge and sessions on the Full Mission (navigation), Cutter and Engine Room simulators, along with sessions relating to various dredging techniques. Together with training sessions covering subjects like the environment, management, IT, accounting, administration, legislation, languages and diversity, DEME provided almost 113,500 hours of training in total.

DEME4Life Foundation: a busy first year The DEME4Life Foundation was set up in December 2010, and its objectives include supporting the social initiatives of DEME staff. The foundation aims to give less privileged people and communities the opportunity to develop their potential. Through its support for activities in the social, economic and environmental fields, the foundation reflects DEME’s commitment to sustainable development. The projects it supported in 2011 spanned the entire planet, including Nigeria, Mexico, Brazil, Democratic Republic of Congo (DRC) and India. They involved communities that live close to sites on which Group teams work, or with which these teams wanted to get involved. Children are a central focus of these projects. • In Sao Vicente, Brazil, the foundation is supporting a project to care for and educate children aged 7-14, led by the local charity Beneficente Amor a Vida in the Nayla daycare centre. • In the DRC, DEME4Life is supporting plans for a SOS Children Village for street children in Kinshasa. This project is being led by the VICA charity set up by Belgian footballer Vincent Kompany and by Fondation Busired, which cares for children lost or orphaned as a result of the war. • In India, the foundation supports the SPEED Trust charity and its efforts to help the most disadvantaged communities in the city of Chennai, with particular focus on educating children and supporting women. • In Belgium, DEME4Life supports «Playing for Success», which helps children aged 10-14 with learning difficulties, along with «Justine for Kids», a charity set up by Justine Henin to provide moral and material support to children suffering from serious health problems. • Another Belgian project that the foundation supports is «New Belgica». This is a project with historical, environmental and social objectives, and involves building a replica of the famous Belgica ship used in Adrien de Gerlache’s expeditions. 500 jobseekers experiencing genuine difficulties in the labour market have received training and employment in building the replica.

The Group CFE 29


Mons - Installation HVAC

Safety: an absolute priority Safety is the Group’s top priority, and all measures taken in previous years were maintained or reinforced in 2011, including information and awareness initiatives. These initiatives are crucial since day-to-day site work can make people complacent about the risks involved. This is why safety plays an increasingly important role in the seminars organised in the construction and multitechnics divisions, which are attended by all operational staff. A hard-hitting film entitled «Inacceptable» was made in 2011 to encourage debate. The film deals with four employees who have suffered serious accidents, showing the impact of these accidents not just on their health but on their personal and professional plans, their family lives and so forth. These accounts raised awareness among seminar participants about the importance of proper worksite preparation, the need to communicate with manual workers regarding the works to be done and related safety requirements, and the importance of only allocating risky tasks to experienced staff with the required skills and training.

30 The Group CFE

Increasing safety efforts in offshore operations In addition, training efforts in the dredging and environment division were enhanced by a new initiative in 2011 called BOSIET (Basic Offshore Induction & Emergency Training). This course informs staff of minimum standards regarding personal safety and social responsibility, survival techniques, first aid, fire prevention and the proper way to respond to a fire as part of activities at sea and on offshore platforms. In total, staff received 6,365 hours of training through this course. In addition, the CHILD (Colleagues Help Injuries to Leave DEME) project included a seminar covering various safety aspects, such as accident analysis, case studies, safety awareness and precautions relating specifically to risky situations in DEME’s activities. Finally, a series of new safety training sessions was adopted to meet commitments made with respect to the IMCA (International Marine Contractors Association). This global trade body brings together companies that have offshore activities and that use marine and submarine techniques. One of IMCA’s aims is to improve safety within the industry.


Zero accident objective

An orderly, methodical approach

Most Group companies obtained VCA** safety certification in 2011. In the QSE (quality, safety and environment) field, CFE International and its subsidiaries also obtained ISO 9001, OHSAS 18001 and ISO 14001 certification. The Group’s two Dutch entities achieved an outstanding safety performance in the Gate LNG terminal project. CFE refuses to accept that accidents are inevitable, and has a zero accident objective. Companies including Amart, CFE Nederland and CFE Hungary attained this zero accident objective in 2011. However, despite training provided and various other measures, the accident frequency rate improved only slightly in the construction division in 2011, falling from 21.35 to 20.75.

The Group strives constantly to prevent accidents. Although it has not yet attained its zero accident objective, its efforts over the last few years are paying off, since accident frequency rates are already well below average rates in the sector. As a result, CFE is sticking resolutely to its efforts to enhance safety. More than ever, the Group’s policy is focused on «order and method», to ensure optimal safety regardless of the worksite. When an accident happens, CFE has a policy of providing maximum support to disabled staff, to enable the person concerned to continue working within the Group.

In the multitechnics division, the rate increased from 19.52 to 21.23. This increase related mainly to the division’s rail activities, where everything is being done to reverse the trend. CFE has adopted key performance indicators for its construction, multitechnics and dredging divisions. Initiatives involve site visits by managers in order to check compliance with safety criteria, along with «toolbox meetings». These qualitative indicators will supplement existing quantitative data such as accident frequency and severity rates. The Group CFE 31


Frequency rate and Seriousness rate

Construction division frequency r at e

2005

seriousness

2005

2006

r at e

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

0

5

10

15

20

25

30

35

0,0

0,5

1,0

1,5

2,0

0,5

1,0

1,5

2,0

0,5

1,0

1,5

2,0

Multitechnics division frequency r at e

2005

seriousness

2005

2006

r at e

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

0

5

10

15

20

25

30

35

0,0

Dredging and environmental divisionÂ

frequency r at e

2005

seriousness

2005

2006

r at e

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

0

32 The Group CFE

5

10

15

20

25

30

35

0,0


A responsible company that cares for its environment Building the future means building sustainably The Group’s business areas are currently seeing major change, since environmental issues are shaping the future and leading to new standards in a whole range of areas including construction. However, environmental responsibility is not a new phenomenon for CFE. CFE has been pursuing environmental initiatives for several years, with a sustainable development policy based on major commitments shared by its various entities and staff.

The day-to-day activities of CFE’s sustainable development unit, which brings together a range of people specialising in the various aspects of sustainable construction, aim to make good on this commitment. Examples of this are the support provided to BAGECI in converting its head office in Naninne into an energy-positive building, support for various entities in obtaining BREEAM certification (for the Pole Star building, the Elia head office, the Square Frère-Orban mixed-use building etc.) and the design of low-energy and passive buildings (low-energy housing in Jambes, the Midi-Suède passive apartment block and the Savonnerie Heijmans buildings in Brussels). The unit also carries out valuable environmental monitoring work and works to reduce the CFE Group’s overall energy consumption, partly by carrying out a full environmental audit every year.

European objective: zero energy in 2019 Europe is increasingly encouraging countries to ensure that new buildings attain zero energy standards, and that existing buildings achieve lowenergy status, often through extensive renovation. In EU member states, legislation is gradually being enacted in line with new European standards. This legislation may apply nationally or regionally, as in Belgium, where energy requirements differ across the three regions.

Far-reaching changes in CFE’s activities For CFE, like other companies, these new requirements involve a fundamental challenge to the definition of a building, its components and the resources it consumes. All aspects relating to a building’s life, from design to full recycling after demolition, must be taken into account in CFE’s projects. As a result, the Group has, as far as possible, incorporated various measures into its projects. These aim to limit consumption of primary, non-renewable energy sources, reduce installed power, limit the use of natural resources through lifecycle analysis, recover energy and produce alternative energy. Examples include passive houses in Bouval, photovoltaic panels at Thijs Bouw Projecten in Westerloo, and the MET project in Namur.

Changing customer requirements and selection criteria In Belgium, from 2012, almost all public-sector tenders for the construction of new buildings will be based on passive or very low energy building standards. The criteria used by public authorities when awarding infrastructure construction contracts will also be reviewed in order to protect the environment. In other words, companies will no longer be selected solely on price, but also based on qualitative criteria, such as CO2 emissions during construction and long-term use, the amount of raw materials used and the environmental impact of construction work. In this respect, The Netherlands - where CFE has obtained the highest level of ProRail environmental certification - is one of Europe’s most advanced countries in terms of environmental requirements.

The Group CFE 33


Reducing the Group’s own energy consumption CFE’s commitment goes beyond merely complying with new legal texts. It shows this commitment in a very practical way through its own operational procedures, the management of its premises and the behaviour of its staff. The Group pays constant attention to all environmental aspects and impacts arising from its day-to-day activities. CFE’s Sustainable Development Unit plays a key role in this respect. It manages the Group’s overall consumption of non-renewable energy and implements the strategy of gradually reducing energy consumption. It also prepares a full annual environmental report covering the whole of the CFE Group. This report covers both energy consumption and waste production, as well as highlighting the Group’s efforts and progress. For each Group entity, the annual environmental report contains details of CO2 emissions, production of alternative energies, the volume and type of waste produced and the percentage of waste recycled, water consumption, environmental certifications and compliance with ISO standards, budgets, research and patents relating to sustainable development, and initiatives taken by the entity to reduce its overall environmental impact. This information is also published on the entity’s website. Through this environmental reporting, the Group aims to set up a system that ensures compliance with ISO 14064 and 14065 standards and with ProRail level 5 certification. This reporting will also enable CFE to measure its progress.

Construction division: ever more sustainable CFE EcoTech and Terryn pursue sustainable development through the very nature of their activities. CFE EcoTech has developed innovative processes for wastewater recovery, along

34 The Group CFE

with highly effective technologies for recovering energy from biomass. Terryn specialises in wood constructions, and is about to obtain EN 133307 certification for its Ecotimber unit. Its Lamcol unit is developing sustainable woodbased insulation and supporting structures for the Walexpo exhibition centre. Aannemingen Van Wellen has carried out initial testing of LEAB (low energy asphalt) for Brabant province’s roads and traffic agency. This product involves mixing asphalt at 120°C instead of 180°C, thereby reducing CO2 emissions during production. The division’s other companies are also playing their part. Their involvement in the Group’s sustainable development approach is shown by their construction of low-energy and passive buildings, their ISO 14001 and level-5 certifications relating to CO2 emissions, along with other initiatives. For example, BAGECI has a zero energy objective for its Naninne head office, and CFE Nederland has seen its efforts rewarded with a VINCI innovation prize in the sustainability category.

Numerous sustainable construction and renovation projects The Sustainable Development team has helped devise sustainable solutions for the development of the Sterpenich shopping centre, a hospital project in Antwerp, a police station project in Brussels, the Elia head office in Brussels, a social housing project in Tubize and the Sibelga building. Within the PPP-Concessions division, the team in charge of long-term maintenance of major PPP projects has been strengthened, and will pay particular attention to sustainability and energy performance issues such as lifecycle cost. In The Netherlands, the Sustainable Development department helped Group entities obtain ProRail level 5 certification, and took part in an ambitious plan to reduce energy consumption with the help of suppliers and subcontractors.

Sustainable development through technical expertise The multitechnics division is helping to build a sustainable future. Its rail electrification and signalling work is increasing national mobility and reducing the greenhouse effect. Its work with photovoltaic panels is cutting consumption of non-renewable energy. Other examples are Vanderhoydoncks’ VAC lighting projects (for companies like Hasselt, Ecolab Tessenderlo and Nike), Nizet’s connection work for the Mesnil-StBlaise wind farm, and VMA’s Biomass 3 project for Electrabel, which involves converting a power plant to run on pellets instead of coal. In addition, there are the water pumps and heat/ power co-generation systems installed by Van De Maele Multi-Techniek, and work done by be.Maintenance’s technicians, which includes renovation and regulation work as well as informing and making clients aware of sustainable technologies.

CFE: blue energy In 2011, DEME’s ongoing efforts in the field of blue energy underlined its desire to be a pioneer in developing environmentally-friendly power generation. Blue energy includes all types of water-related power generation, including tidal, wave, osmotic and marine algal biomass energy. These provide a potentially infinite source of energy. DEME works both on the generation of blue energy and its transmission, building infrastructure suited to the transmission of offshore marine energy to the onshore grid. Elsewhere in the renewable energy field, DEME is an active participant in “Friends of the Supergrid”, a pan-European network aiming to establish connections between the various individual offshore renewable energy generators and to safeguard the availability of this renewable power to all European citizens at all times. However, DEME’s sustainable development activities are not limited to blue energy,


Huizingen - Maintenance works catenaries

and it remains a major player in environmental decontamination services. DEC-Ecoterre, DEMEâ&#x20AC;&#x2122;s environmental unit, has worked in a number of European countries on the decontamination of brownfield sites, as well as soil and sediment treatment and recycling. Purazur addresses growing demand for services that recycle wastewater and reintroduce it into the fresh water circuit. It devoted its first year of operation to developing a partnership with wastewater treatment companies. DEME is also one of the six partners in the C-Power consortium, which is building an offshore wind farm 30 km off the coast of Ostend. This will be one of the largest and most innovative wind farms in Europe. Its total capacity will be 325 MW, providing power to more than 600,000 inhabitants, and it will prevent the emission of 450,000 tonnes of CO2 into the atmosphere.

Construction division Natural gas kWh 2009

Diesel litre

9,132,173

Electricity kWh

4,993,544

13,583,440

CO2 emission by revenue g eq CO2/EUR 35.44

2010

12,157,472

4,806,549

10,905,373

37.60

2011

12,655,689

6,697,669

18,023,379

31.54

Multitechnics division Natural gas kWh

Diesel litre

Electricity kWh

CO2 emission by revenue g eq CO2/EUR

2009

1,408,686

1,387,112

1,288,579

38.13

2010

1,633,980

1,443,348

1,288,880

36.21

2011

1,504,560

1,455,233

1,364,867

38.40

Real estate development and management services division Natural gas kWh

Diesel litre

Electricity kWh

CO2 emission by revenue g eq CO2/EUR

2009

1,050,898

35,690

1,303,246

31.44

2010

568,431

89,012

90,747

12.15

2011

344,878

130,572

246,797

30.02

Dredging division Natural gas kWh

Diesel litre

Electricity kWh

CO2 emission by revenue g eq CO2/EUR

2009

0

9,370,741

5,853,492

758.55

2010

0

6,491,221

4,060,095

481.19

2011

0

73,256,969

4,213,356

289.24

The Group CFE 35


2011 highlights

May After tunnelling for 6 km underneath the port of Antwerp and Scheldt river, the Bobette tunnel boring machine reached its final destination on the right bank of Antwerp.

March January

June

April

May

March February

2011

January

BPC wins the contract for the construction of the Up-Site building in Brussels as part of a joint venture.

Brussels’ first passive apartment block is opened in the presence of government minister Evelyne Huytebroeck. The building has 30 apartments that are fully compliant with sustainability and passive building requirements. This first 100% passive residential construction contract was performed by BPI (real estate development and management services division) and Amart (construction division).

Dredging International (Australia) Pty Ltd and Van Oord Australia Pty Ltd (Dutch dredging company) are awarded the Western Basin Main Works Dredging - Parcel 5 contract in the Port of Gladstone (Queensland, Australia).

February

April

June

Dredging International and MEDCO win a contract for sea dredging and hydraulic construction work for the construction of two artificial «energy islands» along with port infrastructure, in order to supply Abu Dhabi with oil from drilling facilities on the Satah al-Razboot (SARB) offshore oilfield, which has not previously been exploited.

Four caissons for the construction of Coentunnel in Amsterdam are put into place.

BAGECI, CFE Brabant, Nizet Entreprise and Druart, as part of a joint venture, win the DBFM project to build a new police station in Charleroi. The project was designed by Ateliers Jean Nouvel.

36 2011 highlights


Aannemingen Van Wellen realises in a record time of seven weeks the important refurbishment project on the E19 between Wilrijk and Mechelen.

VMA strengthens its position in Central Europe by winning a new contract to automate two welding lines for a carmaker in Hungary.

The Gate LNG Terminal in the Port of Rotterdam is inaugurated. The works consisted of building a plant, three unloading piers for LNG carriers and three LNG storage tanks.

October CFE acquires ETEC SA. This company, based in the town of Manage, Belgium, specialises in public lighting and the laying of underground networks. The Ambiorix, a heavy-duty sea-going rock-cutter dredger, is launched. This is one of the worldâ&#x20AC;&#x2122;s most powerful and modern trailer suction hopper dredgers, and was built for DEME.

November

Signature of an important contract by Rent-A-Port for the development of an industrial zone in Vietnam for a Japanese tyre manufacturer.

October

August

July August

VMA wins its first contract in Turkey for a car constructor. VMA also sets up a subsidiary in Poland.

September

DEME launches its Congo River trailer suction hopper dredger (capacity of 30,000 m3) and the Flintstone DP2 fallpipe vessel.

November

December

July

September

December Through a partnership with a Brussels-based property developer, CFE acquires the Solvay site in Ixelles, opening the way for a 50,000 m² development consisting mainly of residential units.

2011 highlights 37


PPP-CONCESSIONS DIVISION

38 PPP-CONCESSIONS DIVISION


1

Antwerp - Liefkenshoek railway tunnel


Amsterdam - Coentunnel

PPP-CONCESSIONS DIVISION Confirmed development and bright prospects The PPP-Concessions division strengthened its team in 2011 to meet its development objectives. It carried out several major studies on DBFM (design, build, finance, maintain) projects, while maintaining its strategy focusing on long-term maintenance. Internationally, its port development and management activities has signed several agreements that are very promising for the years ahead.

40 PPP-CONCESSIONS DIVISION


PPP-Concessions Division Jacques Ninanne (until 31/01/2012) and Diane Zygas (as from 01/02/2012)

DBFM (design, build, finance, maintain) activities In 2011, the PPP-Concessions increased the number of studies carried out and developed its public-private partnership activities through DBFM contracts.

Intensive work on major project studies The PPP business continued to carry out studies on new projects in Belgium and The Netherlands. These include the Livan DBFM project relating to a tram line between Deurne and Mortsel (Antwerp). CFE’s bid was submitted in April and has been selected for the next phase scheduled for early 2012. The Missing Links project addresses the Flemish authorities’ desire to improve the existing road network in the Flanders region of Belgium. A consortium including CFE has submitted an initial bid for the development of the A11 between Bruges and Knokke. In Antwerp, CFE has carried

out a study on the new ZNA hospital, and a decision is due to be taken in 2012. In Tunisia, work on the Bizerte Marina continued despite some disruption caused by political instability in early 2011, and structural works were completed in early 2012.

After Eupen in late 2010, another PPP contract was won in July 2011 in Charleroi In addition to PPP infrastructure projects, the division continued to develop its building activities. In December 2010, the PPP Schulen Eupen SA consortium, which includes CFE, won the contract to build, renovate and maintain schools in Eupen’s German-speaking community. Building permits were obtained in 2011, and works began in the second half. At the same time, the PPP-Concessions division continued studies relating to the new police station in Charleroi, and won the contract in July 2011. This is the first public-private partnership contract won by CFE alone, since its other PPP projects have been won through consortiums. It is also the first time that the PPP division’s maintenance team has won a long-term (25year) maintenance contract for a project this size. This new success confirms the strategic

PPP-CONCESSIONS DIVISION 41


Vietnam - Dinh Vu

decision taken by the PPP-Concessions division to offer long-term maintenance and management services for public infrastructure.

Strengthened long-term maintenance team, with the focus on sustainability To implement this strategy, the division needed to bolster its long-term maintenance teams. It therefore continued to hire qualified staff to handle long-term maintenance as part of major PPP projects. At the study phase, this team seeks to optimise the long-term maintenance of structures and reduce its cost. In the construction phase, it monitors work to ensure that long-term performance obligations can be met. The team will also manage the maintenance of the asset concerned when it comes into operation. It pays special attention to sustainability issues, particularly energy performance. The sustainability requirement, which was very important in the Charleroi and Eupen projects, is becoming standard in all new projects. The result is that concession companies are taking on new responsibilities, such as those relating to energy consumption.

42 PPP-CONCESSIONS DIVISION

Port development and management Rent-A-Port handles these activities, which take place all around the world, for the PPP-Concessions division. In 2011, there was a strong upturn in business levels in Vietnam, Oman, Qatar and Nigeria..

Ongoing port activities in Oman In Oman, activities relating to the Duqm port and industrial zone concession continued in 2011, in conjunction with the Port of Antwerp. Initiatives included the creation of a supervision department and an industrial zoning management department, along with the appointment of anti-pollution officers. Commercial port activities are likely to start in May 2012.

Three new projects in Nigeria In Nigeriaâ&#x20AC;&#x2122;s OK Free Trade Zone, the Group started three projects in 2011: a Single Point Mooring system for unloading liquids, a storage area for various types of fuel with capacity of 200,000 mÂł, and a service port, which forms the first phase of a future deep-water port. These three projects will be continued in 2012.


Rent-A-Port Marcel Van Bouwel and Marc Stordiau

New contracts in Qatar and Vietnam In Qatar, Rent-A-Port signed two technical assistance contracts with the Port of Messaieed. These contracts relate to facilities for unloading bulk cement and aggregates for concrete production. In late 2011, IPEM (Rent-A-Portâ&#x20AC;&#x2122;s Vietnam subsidiary), won a large contract with a Japanese tyre manufacturer for the development and marketing of an industrial zone. This project should attract new investors to Hai Phong.

Promising outlook The ports business has other promising areas of activity. In Vietnam, the holding company sealed a new partnership with an Indian group specialising in managing high-tech business parks. This group has developed services for pharmaceutical plants and petrochemical units, and the partnership should attract new customers in 2012 and 2013. Rent-A-Port Energy SA, Rent-A-Portâ&#x20AC;&#x2122;s recently created sister company, also won its first North Sea wind power concession through a partnership.

PPP-CONCESSIONS DIVISION 43


REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION


2

Brugge - Gouden Boom


Uccle - Les Hauts PrĂŠs

REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION Strong business levels in property development CFE maintained firm business levels in property development and management, despite the uncertain economic background. This activity remains focused on residential property.

46 REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION


BPI Peter De Decker, Jacques Lefèvre, Michel Shames and Catherine Vincent

Project development and management Belgium In Belgium, the Group’s activities focused mainly on Brussels, Antwerp and coastal areas. Despite the tough economic background, BPICFE Immo sold a large number of apartments, a retirement home and two office buildings to various investors. To support these activities, the Belgian team was strengthened by the addition of new skills. The team also undertook a specific site safety course relating to its status as project owner, and has a zero accident target for 2012.

Residential Strong apartment sales and ambitious new projects Among the Group’s projects in Brussels, MidiSuède, the first passive residential building, was successfully completed. The building is in the Gare du Midi district, was developed with Société de Développement Régional Bruxellois and consists of 30 residential units. In October, BPI completed the retirement home (around 8,500 m2 above ground) as part of the Les Hauts Prés project in Uccle, on behalf of Médibelge and an investor.

The Bataves project, consisting of 27 luxury apartments and four houses in the Cinquantenaire district, began in March, and was fully sold by the end of the year. In 2011, the Group also sold the last remaining residential units in several major projects, i.e. Jardins de Jette, Espace Rolin and Les Hauts Prés in Brussels, and Barbarahof in Louvain. BPI-CFE Immo started the Bellview project in the European district of Brussels, and at the end of the year acquired the Solvay site in Ixelles through a partnership. This site has almost 50,000 m² of mainly residential development potential. In Antwerp, the Group completed the purchase of land in the Spoor Noord park, in order to build 150 housing units as part of the Lichttoren project, again through a partnership. This project began in late 2011. On the Belgian coast, building work on La Reserve and the adjacent hotel in Knokke was completed, and apartments are now being sold by the developer (La Réserve Promotion). In Ostend, a partnership including BPI-CFE Immo won two tenders held by AGSO (Autonoom Gemeentebedrijf Stadsvernieuwing Oostende), involving projects totalling 100,000 m² above ground, including the prestigious Oosteroever project.

REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION 47


Offices and mixed-use projects From the Gare du Midi to the European district Demand in the Brussels office market remained weak, and BPI-CFE Immo remained highly selective with its projects, a policy that proved wise in previous years. BPI-CFE Immo saw SNCB move into the South Crystal office building in the Midi district, and the building was sold to an investor. In the same district, the impact study regarding the 110,000 m² Victor project - consisting of three towers of office and retail space designed by architects Christian de Portzamparc in association with Jaspers & Eyers - got underway.

New offices covered by Sogesmaint-CBRE’s project management service Sogesmaint-CBRE operates mainly in building management and, despite tough economic conditions, its Project Management team won some major contracts from customers including Gates, Apple, Google and Crédit Suisse. The Google contract involves managing the project to extend Google’s head office in Brussels (3,000 m²), while the Gates contract involves building and developing a new head office at Erembodegem (3,200 m²)

In the European district, BPI-CFE Immo took over the Van Maerlant project through a partnership. This project is primarily residential but also includes scope for a 5,300 m² office building.

Grand Duchy of Luxembourg In Luxembourg, regulations are strict regarding sustainable construction. Several major projects developed by CFE in the past have stood out in terms of sustainable construction, in both the residential and office segments. Luxembourg regulations require studies relating to primary energy and heating requirements, and to CO2 emissions. The marketing phases of buildings developed by CFE have been very successful.

Residential Green areas in the city The Green Hill project, located in the city of Luxembourg in a 4-hectare park close to Kirchberg, was developed by CLi and designed by architect Christian Bauer. It consists of 170 apartments in 14 blocks. These buildings have gained low energy consumption certification because of the thermal insulation in their north façades, their double-flow ventilation and their connection to a wood-fired urban heating facility. Work on the first phase began in early 2011, and the second phase started in late 2011. Currently, 78 apartments have been sold or reserved, which is particularly impressive for a prestige development.

48 REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION


Louvain - Barbarahof

CLi Arnaud Regout, Patrick Van Craen, Hassan Nadir, Fawaz El Sayed and Grégoire Winckler

Offices Working in serenity The Serenity project in Strassen was designed by architect Tatiana Fabeck, and is a 10,654 m² office complex with HQE (high environmental quality) certification. The project won the «Green Building Award 2011» prize. It was 70% sold at the end of the rental guarantee period. Given void rates in the outskirts of the city of Luxembourg, this confirms that buildings with «Green Building» certification are the way forward. The energy performance achieved by CLE in the construction of this building was fully in line with the expectations of the developer CLi and the investor Fidentia Real Estate. Annual energy costs are less than €30/m², representing a saving of 65% relative to a traditionally designed building. In November 2011, CLi applied for a building permit relating to land in the centre of Luxembourg, on Boulevard Royal, the city’s most sought-after road. With its trapezoidal façade, this 5,000 m² office project designed by architects Portzamparc/Gubbini meets the requirements of a project in such a prime location. Sogesmaint-CBRE also won the contract to manage the development of the new iTunes head office in Luxembourg (1,500 m²).

REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION 49


Brussels - Arts 35 project

Central Europe

North Africa

In Central Europe, CFE’s property development activities are handled by BPI-CFE Immo, and are currently focused on Poland, where the team has been strengthened. In 2011, a decision was taken to discontinue property development activities in Hungary.

In 2011, the Group continued to develop the division’s overseas activities through subsidiaries set up in Tunisia and Morocco.

In Poland, the marketing phase of the «Ocean’s Four» residential project in Gdansk continued with pleasing results, and BPI Polska obtained the occupation permit for the first phase of the project, for which construction began in spring 2010. The company also acquired land in Warsaw in order to build a mixed-use residential and retail project.

50 REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION

In Morocco, Construction Management (CM) is developing wind farms in partnership with a Belgium renewable energy producer, and has obtained initial authorisation for two sites in the Tetouan and Safi regions. In Djerba, Construction Management Tunisie is seeking to develop operations on behalf of third-party investors. Project management activities at the Bizerte Marina were affected in early 2011 by events related to the Arab Spring. Teams dealt with this difficult situation and ensured that construction work continued.


Sogesmaint-CBRE Thomas Maskens, André Latinis, Micheline De Munck and Jan De Feyter

Building management 2011 was a difficult year for the Group’s building management business, which mainly involves managing large office buildings in Brussels and the surrounding area. An ongoing decline in office rents and increased void rates in the buildings it manages put downward pressure on Sogesmaint-CBRE’s management fees. However, the number of management contracts awarded rose significantly and the Group won contracts for around 10 buildings with total space of around 130,000 m². The managed portfolio now includes the Silver Building, managed on behalf of Allianz (24,000 m²), two office buildings of 30,400 m² each for KBC Real Estate, the Copernicus building, around 850 residential units (following the renegotiation of the SHAPE contract with BAGECI), REDEVCO’s Ans site, the Gosset building in Brussels (17,500 m²) and other office buildings in Brussels, including the Crystal Building for Ethias.

Growth in Letting Coordination Alongside its core business, Sogesmaint-CBRE set up a Letting Coordination unit and hired specialist staff to run it. This new business should generate additional fees in 2012 through the rental of space and the renegotiation of leases on behalf of owners with which the company has asset management contracts.

Property development and management: looking to the future The outlook in property development remains positive, but the Group remains extremely selective when choosing new projects, in terms of both their specific features and their location, in Belgium and abroad. In building management, one of the main objectives in 2012 will be to increase the profitability of the Property Management department. Most importantly, the division’s various businesses are likely to see increased requirements in terms of sustainability. They are prepared for this, as shown by their achievements in 2011, which include the completion of the Midi-Suède building (which meets passive home standards), the Serenity building in Luxembourg, energy management and reporting services in managed buildings, and LEED Gold certification for the Google project in Brussels. The Group is also aiming to obtain BREEAM certification for the Victor office project, which will be developed in partnership with Atenor

REAL ESTATE DEVELOPMENT AND MANAGEMENT SERVICES DIVISION 51


CONSTRUCTION DIVISION


3

Brussels - Up-Site project


Zaventem - Diabolo project

CONSTRUCTION DIVISION Both in Belgium and abroad, the CFE Group is focused on customer satisfaction, without which the Group would struggle to win new orders. The Group actively promotes all aspects of quality, particularly through its quality, health, safety and environmental system. In 2011, this system helped companies in the Construction division to obtain and extend numerous certifications. For example, CFE International obtained ISO 9001, ISO 14001 and OHSAS 18001 certification; CFE Nederland and GEKA obtained the highest level of ProRail certification (level 5) as regards CO2 emissions; and CFE Brabant, MBG, BAGECI, Aannemingen Van Wellen and many other Group entities renewed their ISO 9001 certifications.

54 CONSTRUCTION DIVISION


International development also continued in 2011. After Qatar, where the CFE Group has operated for several years through its CFE Middle East subsidiary, and Chad, where CFE International handled its first major projects in 2010, the Construction division moved into Nigeria and Algeria in 2011. The division’s quality strategy, along with its international expansion strategy, helped it to keep revenues at a similar level to 2010, despite reduced private-sector investment and delays with the implementation of public-sector investment.

Construction division companies Aside from CFE EcoTech and Terryn, which perform their highly specialist operations internationally, and CFE International, which operates in all countries, the Construction division’s companies are generally confined to particular geographical regions.

In Belgium, they consist of MBG, Aannemingen Van Wellen, Amart, BPC, CFE Brabant and BAGECI.

Bruges. There were also studies relating to offshore wind farms. In addition, the engineering department helped CFE Brabant, particularly as part of the Square Frère Orban and Groupe S projects, along with CFE EcoTech and BAGECI by carrying out geotechnical and other studies relating to wastewater treatment units. Many other Group entities also benefited from the engineering department’s effective support. BENELMAT supported project execution, particularly in major civil engineering works and foreign building projects.

The division’s international companies are CLE (Luxembourg), CFE Nederland and GEKA (Netherlands), CFE International, CFE Hungary, CFE Polska, CFE Romania, CFE Slovakia, CFE Middle East, CFE Tunisie, CFE Tchad and Cobel. Equipment rental company BENELMAT and the engineering department provide centralised services to all the division’s companies. In 2011, the engineering department worked on a large number of projects and around 100 tenders. For MBG, the department continued studies relating to the Liefkenshoek project (relating to the finishing work on the rail tunnel), and worked intensively on several major projects such as the A11 DBFM project in

CONSTRUCTION DIVISION 55


Brussels - Arts-Loi project

Buildings, industrial constructions and renovations

In Belgium For MBG, 2011 was a successful year in the residential, public building, healthcare and renovation markets. MBG and Aannemingen Van Wellen, working in a joint venture, completed a hotel and apartments as part of the La Réserve project. The same two companies joined forces for the Royal Gardens residential project, comprising 93 apartments at Blankenberge. MBG completed the De Gouden Boom urban development project in Bruges, and won an impressive series of orders for residential projects such as Canal View, Park View, Waterfront and Lievehof in Ghent, along with the Oude Kaars project (133 apartments in Wijnegem) and the Groen Kwartier residential project on the site of the former military hospital in Antwerp. These projects gave a major boost to the order backlog of MBG’s buildings department. In public buildings, MBG worked on the Ganzendries and Wollemarkt underground car parks in Mechelen, and the Hopmarkt car park in Aalst. In Knokke, work on the Duinenwater aquatic centre continued and in Wilrijk, the “Annex T” extension of Antwerp University’s

56 CONSTRUCTION DIVISION

veterinary faculty was completed within a very strict timeframe. In the healthcare market, MBG completed three care homes: Zonnelied in Ypres, Ambroos in Hofstade and Home Vyvens in Zingem. Major healthcare projects are continuing in 2012, including Mayerhof in Mortsel and the AZ Alma hospital in Eeklo. Renovation was another growth market, and the company handled some impressive projects including the conversion of Ostend’s former main post office (a listed building) into a cultural centre, and the major renovation of the Grand Bazar shopping centre in Antwerp, which remained open during the works. MBG also did industrial work for Total, Indaver, Seminck Gas, Elia, BASF and other customers. MBG has a large order backlog, and the outlook for 2012 is good. There is also a good chance that major efforts relating to studies on DBFM projects - relating to the new ZNA hospital in Antwerp and the Livan 1 project on the Antwerp metro - will pay off, giving impetus for future years. At the end of the year, Aannemingen Van Wellen won a contract for the Lichttoren project in Antwerp, as part of a “bouwteam” joint venture, for Immpact and BPI. It also won contracts for finishing work on a building on the Meir (Antwerp’s main shopping street), the conversion of an old building into apartments (Diamond project) in Antwerp, and the renovation of all Langblok social housing in Boom.


MBG Jean-Pierre Dewulf, Antoine Merckaert, Patrick Verswijvel and Luc Stuyck

Construction work also started on new schools in Burcht and Zele. A major tertiary project is also in the pipeline after the company won a contract for the Onyx building in Berchem, which will have BREEAM certification. CFE Brabant worked on a large number of projects in Brussels and the Brabant region, and also won an MIPIM Award in Cannes for its residential conversion of the Heijmans soap factory. Current mixed-use and residential projects include the construction of the Square Frère Orban office and residential building for AG Real Estate, the renovation of Louvain Island for the social services in Brussels and the completion of three villas for 3ème Bureau, including two in Saint-Tropez. Business levels were also firm in the tertiary, commercial and healthcare sectors. For example, North Light, GDF Suez’s head office in Brussels, was completed in early 2011. This will be followed by a second building (Pole Star) for the same user. CFE Brabant has been involved in both projects via joint ventures, working for AG Real Estate. The company also completed the Crossing stadium in Schaerbeek (as part of a JV) and completed the final phase of the Haren depot for the STIB. Current projects include the 4th European School in Laeken for Régie des Bâtiments, major renovation work at the Arts-Loi subway station for Beliris, and head offices for Groupe S and Elia.

2011 was a transitional year for BPC, since it completed several projects and started preparing for new ones. Conditional acceptance was received for the phase A of the Media Garden project, which involves a residential building in Schaerbeek sold by Atenor to Aedifica. BPC started other projects in 2011, including the Lighthouse office and residential complex on Belliard street in Brussels - as part of a “bouwteam” including CFE Brabant - for Allfin and BPI, and the Brusilia tower for BPI. Up-Site is a canalside project in Brussels being developed for Atenor. It involves a 42-floor tower (Belgium’s tallest residential block), along with four office buildings and four apartment buildings, on top of a 3-level car park. BPC also continued work on the Congrégations project (residential units for Bouygues Immobilier), the B3 building at La Sablière (fourth phase at Uccle Calevoet for BPI), an innovative passive apartment building on Avenue des Courses in Ixelles, apartments in Louvain-la-Neuve, the Jardins de la Source project for Groupe Wilhelm & Co and student accommodation for Eckelmans. As regards mixed-use and residential projects, BPC started the South City project (two office buildings and a Park Inn hotel opposite Gare du Midi in Brussels) and conditional acceptance for a nursing home in Uccle Calevoet was received. BPC is also working on several major projects in Liege, such as the Olympic skating rink, new premises for RTBF, Médiacité, the Crowne Plaza

BAGECI Joël Monin, Patrick de Caters, Isabelle Liart and Etienne Colmant

CONSTRUCTION DIVISION 57


CFE Brabant André Kawkabani, Christophe Van Ophem, Roberto Romanin, Daniel Martin and Jacques Labruyère

Technical management Michel Denayer, Lode Franken, Jean-Pierre Cesar, Hans Mortier, Thierry Preudhomme and Steven Van Heuverswyn

BPC Michaël Royer, André Wezel, Frédéric Claes, Pierre Thys, Albert Boisdenghien and Alain Hemstedt

CFE Hungary Pascal Steens

58 CONSTRUCTION DIVISION

Cobel Contracting Nigeria Ltd Eric Maximin

CFE Tchad Christophe Van


Groupe Terryn Wim Cloet, Stefaan Terryn, Geert Terryn, Johan Terryn, Filiep Terryn and Philippe Courtoy

Aannemingen Van Wellen Kurt Kesteloot, Nadine Simons, Yves Weyts, Walter Leyssens and Jan Van Wezel

CFE International Xavier Behets, Gerald Boswell, Youssef Merdassi, Frédéric Roman and Richard Touroude

CFE Middle East Gérard Bourrelly

CFE Tunisie Pascal Bauwens

CFE Algérie Jean-Louis Choulot

CONSTRUCTION DIVISION 59


Hotel and CMI’s new head office in Seraing. It is hoping to increase its presence in Liege further in 2012. Amart expanded its technical team and achieved substantial progress in 2011 in terms of both activity and order book, which hit record levels. The company built its first passive residential building near the Gare du Midi in Brussels for BPI and SDRB (Société de Développement pour la Région de BruxellesCapitale). This building was nominated for the MIPIM Awards 2012 in Cannes, in the “Best Futura Project” category. Amart also completed the Imreca building (apartments with retail units on the ground floor) and carried out major work to convert buildings on Avenue Louise and Boulevard de Waterloo in Brussels to mixed use. It also converted a former malting factory for residential and retail use on behalf of Breevast. Amart worked on the L’Essentiel project in Lasne, converting a 3,600 m2 building that will be used to care for disabled children and adults. The company also won contracts to build an impressive passive building on Rue du Pépin in Brussels, to renovate commercial and office units on Avenue Louise in Brussels for Prowinki, and to fit out offices for Cisco Belgium, Techem-Caloribel and most importantly Google.

60 CONSTRUCTION DIVISION

In Wallonia, and aside from developments in Liege handled by BPC, BAGECI used its expertise in high-value-added PPP projects. These included the construction and renovation of schools in Eupen’s German-speaking community and the construction of a police station in Charleroi, designed by architect Jean Nouvel and MDW Architecture. As soon as permits are obtained, BAGECI and CFE Brabant may start work on this latter project in spring 2012. In the residential segment, several projects were completed in 2011, including low-energy passive housing in Jambes, army houses in Belgrade and construction of a weathertight shell for a retirement home in Vottem. In the renovation segment, business was firm and included the ongoing maintenance of 850 SHAPE housing units, along with the renovation of numerous social housing units at Mons, La Louvière, Saint-Vaast, Ghlin and Namur. Work on extending the St-Guibert school is also underway in Gembloux.

International In The Netherlands, there were further developments in the buildings business. CFE Nederland’s recently created “buildings and industrial constructions” department built the swimming pool ‘Hofbad’ in The Hague and recently completed the TFLab (TweeFasen-

Laboratorium) in Ede for MARIN (Dutch marine research institute). This laboratory tests boats using a huge tank in which waves more than 20 m high can be simulated. In Luxembourg, CLE built the first research laboratories at the University of Belval in October, and in the same month completed the Parc du Soleil residential project for Eifel-Haus Bau Und Immobilien, consisting of 33 apartments across five buildings. The company began a design and build contract for a large car park at the University of Belval in September, on behalf of the Luxembourg national rail operator. Other large projects included Green Hill (consisting of 14 turnkey residences with an A or AB energy rating), a school in Mamer, a swimming pool and sports hall in Esch-sur-Alzette, finishing work on a children’s centre and the extension of the European Court of Auditors. This latter project will continue throughout 2012. CLE also set up a new department focusing on small renovation, conversion and construction projects. In Poland, CFE Polska saw increased business levels. The company won “Fair Play 2011” accreditation. One of the year’s highlights was BPI Polska’s completion of the first phase of the prestigious Ocean’s Four residential project in Gdansk. Several other projects were successfully completed, including the OBI supermarket


Rotterdam - ETT Europoort

Amart Reginald Rotsart, Ivan De Wilde, Steven Luyckx and Bernard Palange

(10,500 m²) for Rank Progress and a 4,000 m² factory for Valeo. Projects that began in 2011 and were in the completion phase at the end of the year included the Epsilon office building for Vantage Development. This is the first building in the extensive Promenady Wroclawskie project comprising offices, housing, a hotel and shops in Wroclaw. Another project completed in early 2012 was the extension of the Gliwice plant for Belgian metalworking company Vlassenroot, with which a new factory construction contract has just been signed. CFE Polska is also building a factory for Saint-Gobain, a logistics centre for Merida and a factory for Belgian company Desotec. CFE Hungary is involved in a number of prestigious and major projects. Acceptance was received for two projects on behalf of a major bank, representing the largest datacenter investment in Central Europe, with VMA carrying out complex electrical installations for both projects. Acceptance was also received for the Asia-Food food production plant in Verpelet. Current projects include the Barros Ter office and car park project, which started in spring 2011 and is well underway, along with the Szigetszentmiklós primary school and sports centre, for which the topping out ceremony was held in December. Work is also continuing on the BREEAM-accredited Vaci Greens office project.

The recession had a greater impact in Slovakia, where CFE Slovakia completed the construction of the Green Park residential building in difficult conditions. Studies, bids and prequalification applications for a number of projects are underway in both Slovakia and Romania.

In Tunisia, CFE continued construction work on the Bizerte Marina project, and started work on extending the French school in Tunis.

In Chad, CFE Tchad completed the first phase of the University of Toukra. This is a major project to the south of N’Djamena, and is being carried out jointly with CFE International. It includes classrooms, language labs, two lecture theatres, student accommodation, a restaurant and a supermarket. This is not the unit’s only project in Chad: as well as the presidential villa, for which structural works are underway, CFE has signed a contract for Finance Ministry offices in N’Djamena. In Nigeria, COBEL, set up by CFE in conjunction with a local partner, signed a contract to build Eko Tower II, a 27-floor tower to be occupied by an oil company and comprising a car park, a medical centre, a business centre and a leisure centre. Financing for this project, including export credit, has already been arranged. In Algeria, CFE obtained the signature in late 2011 of a letter of intent relating to the construction of the head office for a major bank in Algiers. The contract was confirmed in late January 2012 and work is underway.

CONSTRUCTION DIVISION 61


Civil engineering and roads Belgium MBGâ&#x20AC;&#x2122;s work on two major long-term projects, as part of a joint venture for Infrabel, continued at a rapid pace, and important phases were completed. In the first, work on a new rail link at Liefkenshoek progressed at a good rate. This new connection for goods trains links the extension of the Port of Antwerp and its new Deurganckdok harbour basin on the left bank with the rail marshalling yard on the right bank, passing under the Scheldt river and the B1B2 canal. Three major phases have been completed to the full satisfaction of all parties. Two tunnel boring machines known as Bobette and Fanfreluche arrived on May 16 and July 16 respectively, several weeks early. The first part of the works was then handed over to Infrabel on December 19, 2011, in accordance with the schedule. The second project is the Diabolo DBFM project, and involves the construction of a link for the high-speed rail line between Brussels Airport and the central verge of the E19, along with the construction of a road interchange at Brucargo. Work will be completed in the first half of 2012, on schedule. The first part of the airport station extension was opened to the

62 CONSTRUCTION DIVISION

public in early July 2011, while the new viaduct connecting Brucargo to the motorway was opened to traffic on November 2, 2011. Work was due to be completed on February 25, 2012 and the new line will come into service in June 2012. Two related works packages, i.e. work on a 8 km stretch of the central verge and the connection with Mechelen, were completed and brought into service in 2011. In Rotterdam, the Gate LNG terminal, completed in conjunction with CFE Nederland, was officially opened in September. In Zeebrugge, the construction of a new pier to increase the capacity of the Fluxys gas terminal started on September 1, 2011 and is due to be completed in late 2012. In the near future, MBG is also hoping to win the contract for the first phase of renovation work on the Mechelen train station and surrounding area. The roads department of Aannemingen Van Wellen, which is responsible for the road works package on the Diabolo project at Brussels Airport, took part in a number of public tenders and won a number of orders in late 2010 and early 2011. These include various road refurbishment projects in Berchem, Ekeren, Edegem and Mechelen, along with the western access road at the Port of Zeebrugge. More contracts were won during the year, including a major road refurbishment project on the E19 between Wilrijk and Mechelen, which is to be completed in the record time of seven weeks.


Refurbishment on the E19 between Wilrijk and Mechelen

CFE Polska Agnieszka Tchorzewska, Beata Koniuszek, Bruno Lambrecht and Malgorzata Boron

The company also won and partly completed several environmental contracts at the Ports of Antwerp, Ghent and Zeebrugge. Production at the company’s two coating plants exceeded 250,000 tonnes. Tests relating to warm-mix asphalt made at 120° C and silent road surface mix were carried out. Together with MBG teams, Aannemingen Van Wellen qualified for the second round of the AX PPP project in Zeebrugge. The second round is scheduled for July 2012. In 2011, BAGECI’s civil engineering activities included conditional acceptance for the Vortex project in Namur and the completion of 35 Vortex sites and 17 pumping stations. These installations will help to clean up the Meuse river. The Sclessin wastewater treatment station could soon be handling wastewater from this part of Liege, since electromechanical equipment has now been installed. At the Vallée du Hain wastewater treatment plant, built in conjunction with CFE Brabant, civil engineering work is coming to an end, and electromechanical equipment is being installed by CFE EcoTech and Nizet Entreprise. BAGECI is currently doing other work for Infrabel at Gembloux, Flawinne and Ronet.

wastewater treatment plant. Hydraulic trials have taken place on this plant, which is expected to come into service in 2012. In the Vallée du Hain, the assembly of electromechanical equipment is currently being completed, and the wastewater treatment plant is scheduled to come into service in summer 2012. CFE EcoTech worked on building the anaerobic digestion plant for secondary and primary sludge from the Mouscron wastewater treatment plant, and completed the construction of a degassing unit at the Brussels South wastewater treatment plant for SBGE. The company also won its first contract for the anaerobic treatment of brewery water, using an innovative concept that may have further applications in agro-industry. Various biomass energy recovery projects are currently being analysed, and are likely to result in new orders in 2012.

CLE Patrick Van Craen, Olivier Vanderdeelen, Markus Schaefer and Patrick Mausen

CFE EcoTech carried out electromechanical installation and implementation work on the Vortex project in Namur and on the Sclessin

CONSTRUCTION DIVISION 63


International In The Netherlands, CFE Nederland completed several major civil engineering projects in the rail, marine and road segments. These include the construction of bridge beddings and structures for four future rail tracks on behalf of ProRail in Houten, the construction of three huge concrete LNG tanks for the Gate Terminal in Rotterdam, and the reinforcement, widening and bedding of the Muider bridge. Coentunnel Construction, a consortium including CFE, successfully transported the four caissons (178m/30m/8m) for the ‘Tweede Coentunnel’ in Amsterdam. This second tunnel, lying alongside the existing Coentunnel, is an 750 m immersed road tunnel. The four caissons, made in Barendrecht, were carried by river to Amsterdam. Another major project in 2011 involved ongoing work on building a 2.4 km rail tunnel in Delft. GEKA, the Group’s other Dutch entity, was involved in projects to build the new Gate LNG Terminal in Rotterdam and the Delft rail tunnel, and also completed two piers in Rotterdam. At Rotterdam-Europoort, GEKA did intensive work on the project to extend the ETT oil terminal for Verwater, which involved building foundations for tanks and a pier for seagoing and inland waterway vessels. GEKA also acquired three new cranes (70, 80 and 100

64 CONSTRUCTION DIVISION

tonnes), which can handle prefabricated sections with lengths of up to 40 m. The company also expanded abroad, signing an engineering contract relating to the construction of a marine pier in the Port of Vassiliko, Cyprus. In Luxembourg, the ‘Pont d’Alsace’ was reopened to traffic, while work on the Pulvermühle viaduct is continuing. CLE and BAGECI are handling these projects on behalf of the Luxembourg rail operator. In Qatar, CFE Middle East completed three tanks as part of the Doha North WWTP project for Keppel Seghers, which also ordered eight electricity substations in Doha. These are currently being built, as are two substations in Ezdan and Garafa for ABB. CFE International, accompanied by CFE EcoTech, is ready to take its first steps in Sri Lanka. A €22 million water treatment and supply contract was signed in January 2011, and financing is likely to be completed in early 2012.


Moorslede - Production of bonded laminate structures

CFE Nederland Jan Verschueren, Kris Hens, AndrĂŠ de Koning and Koenraad Keppens

Terryn: immediate synergies with several companies in the division The Groep Terryn (including Korlam, Spanbo, Ecotimber, Terryn Hout in Moorslede and Lamcol in Marche-en-Famenne) joined the CFE Group in mid-2010. It has various activities in wood processing and recovery, operates as main contractor for wood-based constructions (mainly industrial buildings) and is a leader in the production and assembly of bonded laminate structures. The company completed and won a number of impressive contracts in 2011, including the roof of a skating rink in Liege (a BPC project) and the roof of Rotterdam train station, and it was involved in the construction of a CNH showroom and swimming pools in Ghent, Rozenbroeken, and in Knokke (MBG). It was also involved in building the new temple in Planckendael zoo, which will house a group of elephants currently based in Antwerp. Terryn upgraded its production system in 2011 and produced more than 22,000 m3 of bonded laminate, which bears the CE label. Despite a difficult start to the year, Terryn generated slightly higher revenue than in 2010.

GEKA Hans Schutte, Marcel Keinhorst and Willem-Jan Nederlof

CFE EcoTech Bernard Cols, Guy Van Den Bossche and Bruno Derclaye

CONSTRUCTION DIVISION 65


Generally positive outlook in the construction division The construction division ended 2011 with a solid order book, and order intake rose by 22%. Outside Europe, the outlook is promising, as shown in particular by CFE Internationalâ&#x20AC;&#x2122;s order backlog. In Central Europe, however, the situation remains difficult, since the recession is having a major impact on markets. In Benelux, most of the divisionâ&#x20AC;&#x2122;s companies have good reason to be positive. Both companies in Northern Belgium are involved in PPP projects, i.e. the Missing Links A11 project in Zeebrugge and the Livan (De Lijn) project in Antwerp. These projects represent major investments in the future. In central Belgium, CFE Brabant won a large number of orders and BPC is expanding in Liege, while Amart has a solid order book. As a result of its past efforts and studies relating to prospective contracts, BAGECI also started 2012 with confidence, and several major bids are likely to be accepted in Benelux in the near future. The key concepts for the construction division and for CFE in general are sustainable development, international expansion, synergies and complementary expertise.

Order book as of December 31

(in millions EUR)

Construction division

2010

2011

2010

1,009.9

826.4

717.8

707.8

Amart

27.1

17.4

25.4

20.9

BAGECI

100.8

83.5

44.9

56.7

BPC

128.9

37.8

50.1

61.7

CFE Brabant

184.7

111.2

101.7

80.4

CFE EcoTech

4.5

15.3

11.9

13.3

CFE Hungary

19.7

19.7

17.9

39.7

CFE International

115.3

57.6

59.7

33.4

CFE Nederland

127.0

158.8

62.1

62.1

CFE Polska

4.9

14.8

30.5

19.2

CFE Tunisie

2.0

-

1.1

-

65.2

32.5

28.4

31.5

GEKA

6.4

22.0

42.3

43.4

MBG

143.7

165.7

148.2

165.5

Aannemingen Van Wellen

67.8

35.4

67.3

63.2

Groep Terryn

11.8

12.2

26.3

13.3*

0.5

-

-

-

CLE

Others

* 6 month activity

66 CONSTRUCTION DIVISION

2011

Activity


Delft - Railway tunnel

CONSTRUCTION DIVISION 67


MULTITECHNICS DIVISION


4

Ghent - Electrical installations


STIBâ&#x20AC;&#x2122;s workshop in Haren - Electrical installations

MULTITECHNICS DIVISION Specialised technical services: strong momentum CFEâ&#x20AC;&#x2122;s multitechnics division boasts an increasingly wide range of specialist skills in technical areas relating to electricity and HVAC (heating, ventilation and air conditioning) equipment, along with rail electrification and signalling. The Group gained new skills in 2011, particularly through the acquisition of ETEC, which gives CFE a position in the public lighting market, while strengthening its underground networks business.

70 MULTITECHNICS DIVISION


Multitechnics Division Bernard Cols, General Manager of the multitechnics division

Growing revenue The multitechnics division’s business remained firm, with growth in both revenue and the order book. This was despite a tough 2011 for the building sector, which saw a reduction in the number of major projects, particularly in the tertiary segment. In addition, Belgium’s prolonged failure to form a government had an impact on public-sector contracts.

Multitechnics division companies The division consists of 12 companies, all based in Belgium, along with VMA subsidiary VMA Slovakia. • Nizet Entreprise, VMA, Vanderhoydoncks, and Van De Maele Multi-Techniek specialise in electricity; • ENGEMA and Louis Stevens & Co operate in rail electrification and signalling alongside other specialities; • ETEC specialises in public lighting and the installation of above-ground and underground networks; • Brantegem, Druart and Prodfroid specialise in HVAC and cooling systems; • be.Maintenance provides specialist maintenance services for the tertiary sector; • Voltis operates stores that sell lighting, electrical installation equipment, tools, home automation systems, heating and air conditioning equipment and electrical appliances.

Druart Jean-Marie Chabart, Marc Hindryckx, Bruno Druart and Xavier Druart

be.Maintenance André Vandenbauw, Hajar Nouhi, Jan De Baere and Pierre Perexempel

MULTITECHNICS DIVISION 71


Electricity Alongside its electrical and electromechanical engineering work for building and infrastructure projects, the Group played an important role in rail electrification and signalling work in 2011. It also continued its cable-laying and connection activities, and carried out its first public lighting projects.

CFE: strong presence in the Belgian rail sector ENGEMAâ&#x20AC;&#x2122;s Rail Catenary department carried out electrification work on lines 50A and 51A between Ostend and Zeebrugge, as well as modernising the catenary installation of tracks R and G at Schaarbeek station. In Brussels, the Rail Signalling department carried out the first phase of low-voltage installations on a busy urban route, and modernised signalling equipment and cables in several stations. These two departments also worked on other orders for Infrabel and Tuc Rail, particularly as part of the Diabolo project (rail link for Brussels Airport). The two departments increased their staffing as a result of strong business levels.

72 MULTITECHNICS DIVISION

ENGEMA signed an important framework agreement with ORES, underpinning the order backlog of its Lines department, where revenue also continued to rise. The Assembly department continued to suffer from reduced investment by its customers. Louis Stevens & Co, which is performing signalling work as part of the Diabolo project, also helped to improve the quality of the Belgian rail network by installing new ETCS (European Train Control System) signalling equipment. Other projects include signalling work on the Ottignies-Wavre line and on the bridges over the river Nete in Duffel, the renovation of signalling installations in Lier and the installation of cameras, fire-detection equipment and other equipment in various stations and Brussels Airport. The Telecom & Security department, which has been a distinct business unit since 2011, scored its first commercial success outside the rail sector by signing a framework agreement relating to the safety perimeters at Fluxys gas sites. 2011 was a particularly busy year for Stevens, which increased staff levels and achieved its highest-ever revenues. There is also a large backlog of orders for 2012.


Lier - Signalisation works

Brantegem Luc Rombaut and Patrick Verhoest

Huge photovoltaic project The multitechnics division has leading-edge expertise in photovoltaic technology, particularly within Nizet Entreprise, which completed a 3.6 MW (15,000-panel) photovoltaic project for Thys Bouw Projekt. Other photovoltaic projects include Hooge Maey in Antwerp, MET in Jambes and Namur and Idea in Manage. Other entities also performed photovoltaic work, including Van de Maele Multi-Techniek, which delivered and installed 2,920 solar panels on the Nort Immo project in Elverdinge, and Limburg-based Vanderhoydoncks, which installed electrical connections for installations at Izegem, SaintTruiden and Haasrode.

Electrical and electromechanical engineering work for numerous hospital and infrastructure projects Nizet Entreprise’s hospitals business unit had a busy year, including work for the Louis Caty hospital in Baudour, the Erasme hospital in Anderlecht, the Cliniques IRIS SUD in Brussels and St Elizabeth in Namur. The company also did some major electromechanical engineering work on infrastructure projects, often in associ-

ation with other CFE units. Its workshops made high-voltage cabinets and low-voltage panels for ORES, Electrabel and VMA, the Vallée du Hain wastewater treatment plant and several hospitals. Activity was less intense in the building business unit, which suffered from a lack of large-scale and office projects. Vanderhoydoncks also carried out electrical engineering work for hospitals. It delivered equipment to the Heilig Hart hospital in Leuven and the Sint-Trudo regional hospital, where the company will continue works in 2012. Around ten other projects were completed in 2011, including the Colruyt store in Mettet, the Sibelco site in Maasmechelen and the Fluxys site in Winksele. Several 2011 projects will continue in 2012, including the Okay store in DilsenStokkem and the C-Mine cultural centre in the city of Genk. At the end of the year, Vanderhoydoncks’ order book included projects relating to several hospitals (the MS clinic in Melsbroek, the Sint-Trudo hospital and the Heilige Familie hospital in Reet) and stores (Roba in Genk, Okay in Paal).

ETEC Emmanuel Bardiau and Luc Dutrieux

Nizet Entreprise Emmanuel Six, Denis Wuilpart, Yvan Georgery, Hubert Lacroix, Philippe Flock and Thierry Lambermont MULTITECHNICS DIVISION 73


Major office projects despite the difficult operating environment Electrical and electromechanical engineering companies generally saw lower levels of orders in the office market. However, the CFE Groupâ&#x20AC;&#x2122;s multitechnics division worked on some major projects, including the North Light project in Brussels - developed by AG Real Estate for GDF Suez - which was provisionally completed in 2011. Other examples are the KAM building in Bruges for Eurostation-Dexia, offices for BNP Paribas Fortis in Kanselarij and offices and laboratories for Vlaamse Milieumaatschappij at the Flanders Expo site. These electricity projects were carried out by VMA, sometimes in collaboration with Nizet Entreprise. VMA also developed and launched the VICS software package, which allows integrated management of all technical equipment in a building, including energy monitoring.

74 MULTITECHNICS DIVISION

Exporting technical skills

CFE: moving into public lighting

Led by VMA, the multitechnics division continued to develop its international activities. VMA obtained several orders to automate assembly lines in car production plants, for Volvo in Belgium and Ford Otosan in Turkey. VMA also strengthened its position in Central Europe by winning a new contract in Hungary. The company had already moved into Hungary by installing equipment for two IT datacenters in conjunction with CFE Hungary. The new contract related to the automation of two welding lines.

ETEC joined the CFE Group in October 2011. ETEC specialises in public lighting and the installation of above-ground and underground networks, operating in the electricity, water, gas and telecoms sectors.

VMA Slovakia saw a sharp rise in revenue in 2011. In Poland, a new subsidiary (VMA Polska) is being set up to take advantage of synergies with construction company CFE Polska and thereby extend the CFE Groupâ&#x20AC;&#x2122;s electrical activities in the country.


Ghent - Electrical installations

Louis Stevens & Co Chris Présiaux, Marc Poulussen, Karen De Vos and Peter Peyffers

Good synergies within the division and the Group Synergies are being generated increasingly frequently within the CFE Group, and the multitechnics division’s expertise has been used in a number of projects even where there has been no obligation to collaborate. • For example, Nizet and Druart installed equipment in the Les Hauts Prés retirement home in Uccle on behalf of BPI and BPC, while Nizet and ENGEMA installed equipment in STIB’s workshops in Haren for CFE Brabant.

Van De Maele Multi-Techniek Julien Van De Maele, Filip De Graeve and Kurt Sarlet

• VMA joined CFE Nederland on the Delft rail project, designing and installing electromechanical components in tunnels. • Within PPP projects, ENGEMA was approached to do catenary and power-cable work on the Livan 1 metro project, which is currently at the study stage. Nizet is involved in projects to build schools in Eupen’s German-speaking community and, in conjunction with Druart, in the project to build a police station in Charleroi. • Group companies often work together. This was the case for the Vallée du Hain wastewater treatment plant (SM BAGECI/CFE Brabant/CFE EcoTech/Nizet), the Vortex project in Namur (SM BAGECI/ CFE EcoTech/Nizet), Renault Drogenbos (Druart/Prodfroid/Amart), the CAMAX project in Brussels (SM CFE Brabant/Nizet/Druart) and electrical installation work on the North Light project in Brussels (SM Nizet/VMA). • Brantegem, which had only just joined the Group, was immediately boosted by synergies with CFE Brabant, Amart and VMA.

Prodfroid Jean-Marie Chabart, Patrick Grandjean and Bruno Druart

MULTITECHNICS DIVISION 75


HVAC equipment In 2011, the Group extended the range of its HVAC activities, which had previously been handled mainly by Druart and Prodfroid. Growth came mainly from the addition of Brantegem to the multitechnics division along with diversification at Van De Maele MultiTechniek, which had previously concentrated on the electricity sector.

Upturn in HVAC activity in Northern Belgium The Group’s new addition Brantegem is based in Alost and provides services in a range of areas: heating, ventilation, air conditioning, plumbing fixtures, water treatment and recovery and pumping equipment. It joined the CFE Group in December 2010 and in 2011 completed several large projects, including ventilation and plumbing work at a social services retirement home in Zele and engineering, ventilation and air conditioning work at the Gullegem retirement home (150 rooms each). It also took part in refurbishing the historic Pakhuis Clemmen building in Ghent and installing equipment in the Tollembeek fire station.

76 MULTITECHNICS DIVISION

Brantegem won a series of new projects, particularly through synergies and collaborations with other Group entities. Examples of this are the Elimo project (with Amart), and the Elia project (with CFE Brabant and VMA). Brantegem hired new technical and managerial staff in 2011 to support its development. In the Kortrijk region, Van De Maele MultiTechniek’s newly formed HVAC department maintained its rapid development. The company doubled its revenue and employed new staff in all departments. Van De Maele MultiTechniek completed several projects including HVAC study and engineering work at the O.L.V. van Lourdes clinique in Waregem and equipment installation work at the Coxyde care home. In France, close to Lyon, it carried out a dual water recovery and ventilation installation for Potato Masters. Van De Maele Multi-Techniek has successfully diversified and has a large order backlog (5year maintenance contract at the University of Ghent, electrification and ventilation work at the Pottenbakkershoek residence in Kortrijk, the Ostend military hospital etc.), which supports its very positive view of the future. It was also a good year for entities in the Hainault region of Wallonia. Druart completed several major HVAC and plumbing projects in

2011. These included work on the extension of the Reine Fabiola children’s university hospital, the construction (by BPC) of a care home in Uccle, the refurbishment of the CHR hospital in Namur and the refurbishment of the Pavillons de l’Institut Van Gogh in Marchienne-au-Pont. Other projects completed or ongoing include the Meiser shopping centre, the Youth Center building for the US Army, the Palais des BeauxArts and the SABI art gallery in Brussels and the Lavoisier laboratories in Louvain-la-Neuve. Druart increased its revenue in 2011, despite transferring its maintenance and small project activities to the new be.Maintenance company. The multitechnics division also increased its market share in the industrial cooling segment (cooling equipment for cold storage facilities) through its Prodfroid company. Prodfroid handled several major projects including the turnkey installation of morgue equipment for the Brugmann hospital, the supply and installation of a cold storage facility along with brine and direct-expansion cooling equipment at the GSK site in Wavre. The company also won two very large orders for the Crystal Computing site in Ghlin-Baudour, installing air conditioning cabinets and 223 IT server cooling units. This will lead to a substantial increase in revenue.


Zele - Installation ventilation

Vanderhoydoncks Ronny Hendrickx and Eddy Schrijvers

Voltis Yvan Georgery and Yves Persenaire

Maintenance and distribution A single company specialising in maintenance In its first year of existence, be.Maintenance took all necessary steps to support its development in the market for maintaining tertiary technical installations. Businesses transferred in late 2010 from Druart (HVAC) and Nizet Entreprise (electricity) performed well. At end-2011, the company had more than 30 employees. Maintenance contracts obtained in 2011 related to the 31,200 m² federal police office building, the St-Jean MÊridien site clinic (385 beds, a surgery wing and laboratories) and the Radisson Blu Royal Hotel (5-star hotel with 281 rooms and suites), all in Brussels. In addition, there were contracts for the Clariant site at Louvain-la-Neuve, a research, development and production centre for plastics and textiles operations, and G4S buildings in Harelbeke, Wilrijk, Diegem, Vilvoorde, Grand-Bijgaarden, Brussels and Herstal.

Positive developments at Voltis stores In its two large stores in Waterloo and Louvainla-Neuve, Voltis sells a wide range of electrical equipment, lighting, air conditioning, home automation systems, tools and electrical appliances to consumers and professionals. The Waterloo store maintained its progress in 2011.

VMA Guy Wynendaele, Nicolas Nicolaus, Lieven De Wandel, Robby Bosgaerd and Luc Devos

ENGEMA Olivier Di Pietrantonio, Jean-Paul Coch, Patrick Vandingenen, Luc Sepulchre, Bruno Lambert and Erwin Gelaes MULTITECHNICS DIVISION 77


Outlook At January 1, 2012, the multitechnics division’s order backlog amounted to €162 million versus €128 million at January 1, 2011. This large increase means that the division can look ahead to the future with confidence, despite uncertainties about how the market will develop. Several of the division’s companies achieved remarkable growth, while others adjusted their structures and businesses to address new opportunities. All of the division’s companies are benefiting from ongoing support and synergies resulting from their membership of the CFE Group.

Order book As of December 31 (in millions EUR)

Multitechnics Division

2010

2011

2010

162.0

128.2

175.6

148.6

be.Maintenance

0.8

-

3.6

-

Brantegem

7.1

-

3.7

-

Druart

9.1

15.3

23.4

18.9

ENGEMA

29.6

35.1

20.5

19.8

ETEC

15.4

-

4.6

-

Nizet Entreprise

16.9

21.5

35.7

31.2

Louis Stevens & Co

24.2

18.3

17.9

15.2

0.6

0.2

2.0

1.4

19.4

13.7

17.4

11.3

5.9

2.7

7.5

7.2

33.0

21.4

37.9

40.6

-

-

8.6

8.0

Prodfroid

Van De Maele Multi-Techniek

Vanderhoydoncks

VMA

Voltis

78 MULTITECHNICS DIVISION

2011

Revenue


Zaventem - Signalisation works

MULTITECHNICS DIVISION 79


DREDGING AND ENVIRONMENTAL DIVISION


5


DEME Marc Maes, Lieven Durt, Hugo Bouvy, Martin Ockier, Harry Mommens, Pierre Potvliege, Philip Hermans, Theo Van De Kerckhove, Bernard Paquot, Alain Bernard, Luc Vandenbulcke, Eric Tancré, Christian Van Meerbeeck, Dirk Poppe, Lucas Bols and Pierre Cateau

DREDGING AND ENVIRONMENTAL DIVISION CFE owns 50% of DEME, with the rest of DEME’s shares owned by Antwerp-based company Ackermans & Van Haaren. The shareholder agreement signed by the two owners in 2006 was extended by five years in late 2011. The good relationship between the two owners results in great stability, which makes the task of DEME’s management significantly easier.

82 DREDGING AND ENVIRONMENTAL DIVISION


DEME: stronger positions both nationally and internationally

In a fast-changing world, DEME’s various activities in dredging and related services give protection against rising sea levels, address increasing energy requirements and provide innovative solutions for oil and gas extraction. In 2011, the world experienced a serious economic and financial downturn, with financial markets reacting nervously to uncertainties developing on the international scene. Nevertheless, DEME coped well with the downturn, consolidating its positions and revenues in the national and international markets with its solid order book and its strategy of geographical and business diversification. Its activities now include dredging, hydraulic engineering, offshore activities and environmental services. DEME also intensified its focus on activities related to energy (oil and gas services, services in the offshore renewables market) and mining (traditional mining and deep-sea activities).

European revenues were boosted by important assignments such as the London Gateway container terminal in the UK and several large-scale offshore wind farm projects in the North Sea. A number of new contracts were also obtained in all other continents. In 2011, DEME’s revenue amounted to €1,766 million and its order backlog stood at €2,404 million at January 1, 2012.

Increasing geographical diversification In addition to its Western European activities, DEME maintained strong revenues in Africa, Latin America, the Middle East, the Indian subcontinent and Russia, and achieved rapid growth in the Australian market. DEME bolstered its position in the Middle East with oil and gas-related activities, along with marine infrastructure projects. Several contracts worth in excess of €25 million were signed, including in UAE, Russia, Nigeria, Australia, Uruguay and Belgium. These contracts show a good balance between DEME’s core business and its «dredging-plus» activities.

DREDGING AND ENVIRONMENTAL DIVISION 83


Renewable energies and environmental protection The rapidly evolving renewable energy market has been and will be an important driver for DEME’s specialist marine construction units in the coming years. This market is being supported by increasing awareness among the world’s population of the need to safeguard our planet against the impact of climate change, and by initiatives taken by public authorities – especially in Europe – to limit our environmental footprint to the strict minimum in the future. In 2011, DEME’s ongoing efforts in the field of blue energy generation underlined its desire to develop a dominant position in the development of environmental-friendly energy. DEME’s specialist marine and offshore construction companies, such as GeoSea and Tideway, have valuable experience, with projects including the C-Power windfarm project on the Thornton Bank off Belgium, along with an extensive track record in specialist services for the oil and gas industry. In 2011, DEME also continued to excel in another of its specialist areas, i.e. wastewater services and environmental remediation. DEC-Ecoterres, DEME’s environmental unit, failed to match the record revenues achieved in 2010. However, the company was very ac-

84 DREDGING AND ENVIRONMENTAL DIVISION

tive in a number of European countries, both in developing new activities and in brownfield remediation, soil and sediment treatment and recycling. On a less positive note, DEC (DEME Environmental Contractors) experienced excavation problems on a project in Santos, Brazil. The necessary measures were taken and the contract was discontinued.

Marine and offshore construction In 2011, Tideway Offshore and Marine Contractors, DEME’s oil and gas-related subsidiary, maintained a high level of revenue both in trenching and landfall construction and in the highly specialised fallpipe stone dumping business. Outside Europe, new contracts were signed in Russia and China. Tideway took part in the Skarv and Idun Field Project for BP, the largest rock dumping contract ever awarded in northern Norwegian waters. The company was also involved in the Nord Stream project, a gas export line from Russia to Germany. The Flintstone, a unique fallpipe vessel able to work in depths down to 2,000 m, was delivered in July 2011 and has already been involved in its first assignment in Chinese waters, as part of the Power Cable Interconnector project.


GeoSea generated strong revenue growth compared with 2010 in its various business areas. GeoSea’s activities involve jack-up platforms and vessels for pier construction, offshore installations and maintenance, offshore foundation techniques, directional drilling, geotechnical studies and crew services. The increasing focus on renewable energy issues is a major driver for offshore wind farm construction. In 2011, the company was involved in major offshore windfarm installations in Germany, the UK and Belgium. In Australia, GeoSea won a major pier construction contract in Hay Point, which represents a real breakthrough in highend infrastructure work in this country. The company is likely to maintain its rapid rate of growth in 2012 and subsequent years. GeoSea’s growth is being supported by new investments, such as the DP2 jack-up vessel Neptune and the world’s largest jack-up vessel Innovation.

DREDGING AND ENVIRONMENTAL DIVISION 85


Dredging and marine services DBM (DEME Building Materials) pursued its strategy of investing in marine aggregates. The strategy involves a good geographical spread of gravel concessions in French, UK, Belgian and German waters, along with long-term partnerships with French, British, and German construction industry partners. A new 5,000 m3capacity gravel trailer, the Victor Horta, joined the DBM-fleet in July 2011. The availability of two modern high-capacity gravel trailers is a real advantage for DBM. This new investment will increase flexibility and ensure increased capacity for DBM’s customers. DEME’s new company CTOW (Combined Marine Terminal Operations Worldwide) took its first decisive steps in its specific market segment. CTOW provides marine services in the widest sense to dedicated marine terminals. Its upstream activities perfectly complement DEME’s other expertise. CTOW was set up as a joint venture, specialising in preliminary studies and integrated services. It provides turnkey solutions, combining dredging and the removal of dredging waste, to mining, oil and gas companies.

86 DREDGING AND ENVIRONMENTAL DIVISION

DEME continued its investment programme with the acquisition of seven vessels that were delivered in 2011: Flintstone (fallpipe vessel), Victor Horta (gravel trailer), Al Jarraf and Amazone (12,860 kW cutter suction dredgers), Breughel (11,000 m³ trailing suction hopper dredger) and Congo River (30,000 m³ megatrailer). Four new vessels will be delivered in 2012 and a new DP2 floating crane has been ordered under a joint ownership agreement.


Safety, productivity and synergies With the synergies created by its multidisciplinary skills, its Central Competence Centre (CCC) and its Financial Coordination Centre (including project finance), DEME has developed turnkey solutions as a full service-provider for complex offshore marine infrastructure. In Belgium, its wide range of skills has enabled it to take part in long-term planning efforts relating to the protection of the coastline (Vlaamse Baaien project). It is also involved in research projects in areas such as the development of new wave and tidal power technologies for the production of blue energy, particularly as part of the FLANSEA project funded by IWT, the Flemish agency for innovation through science and technology. As part of the global development of renewable energy, DEME has been an active participant in the Friends of the Supergrid project. This project aims to create a pan-European grid to interlink all individual offshore renewable energy generators and to safeguard the availability of this renewable power to all European citizens at all times. DEME is also a founding member of ELEANORE, which aims to bring together the specific skills required to build such a supergrid.

DREDGING AND ENVIRONMENTAL DIVISION 87


DREDGING AND MARINE WORKS Benelux Activity in Benelux remained at levels seen in previous years. In Belgium, on the river Scheldt and in the access channels to the Antwerp locks, DEME entered the fourth year of its seven-year maintenance dredging contract, and continued maintenance works. In late 2011, this maintenance contract was extended for five more years after an international tender process. Maintenance dredging on the Brussels Canal close to the capital and on the Ghent-Terneuzen Canal also involved DEC carrying out treatment work on highly polluted sediments. Major dredging and hydraulic works were executed in Antwerp, Kruibeke, Ghent, Ostend, Koksijde and Dilsen-Stokkem. In the port of

88 DREDGING AND ENVIRONMENTAL DIVISION

Antwerp, the construction of AMORAS, the mechanical dewatering plant for sediments dredged in the Antwerp inner harbour, was completed. The contract involves operating the plant for a period of at least 15 years. Other projects in Belgium included the construction of new outer harbour dams and the dredging of the new access channel to Ostend, work to reinforce quay walls and preloading work as part of the REBO (Renewable Energy Base Ostend) project, and the dredging of several inland waterways including the Brussels-Charleroi canal, the river Meuse in Namur, the river Dendre and the Blaton-Ath canal. In The Netherlands, DEME operates through its Dutch subsidiaries de Vries & van de Wiel and de Vries & van de Wiel Kust en Oeverwerken. Work continued on the construction of the second Coentunnel in Amsterdam. The dredging of trenches for tunnel components was completed, as was the transportation and immersion of the prefab tunnel sections. Companies worked on several dredging and embankment works projects on inland waterways, as well as carrying out civil engineering, dredging, earth-moving, beach nourishment and coastal protection works at Walcheren, stone dumping works to prevent coastal erosion at Den Helder,

maintenance dredging and sand delivery at the port of Rotterdam and the completion of the new inland port at Kampen a/d Ijssel (PPPproject).


Europe Europe is a major market for the whole DEME group, and it won substantial new contracts in its core business and offshore marine construction activities in 2011. 2011 was again an outstanding year in Northwest Europe. The centre of gravity was the UK, owing to the major London Gateway container port project on the River Thames. However, 2011 was also a record year in Germany in terms of revenue, making Germany another home markets for DEME. The strong upturn in business levels in the Baltic Sea continued throughout the year. In France, there was a decline in major contracts, but there are some interesting prospects for 2012. Activities in the Mediterranean area were affected by the political situation in most North African countries and the difficult economic situation in Southern European countries. DEME maintained and consolidated its position as a leading dredging contractor for strategic port extensions in Russia, and the outlook for

2012 is promising. After dredging work relating to the ongoing development of the commercial seaport in Ust Luga, a new contract was signed for a fifth campaign. On the Russian Riviera in the Black Sea, DEME completed site reclamation works for the upcoming Winter Olympics in 2014. Dredging work was done in Tuapse and DEME won a contract for major dredging works in the new Taman port construction area. A new backhoe dredger is under construction, to be jointly owned with a local Russian partner for activities in the Finnish Bay, and will be delivered in early 2012. This vessel, called Peter the Great, will give DEME huge growth potential as well as enhancing flexibility.

Hamburg and on the river Rhine in Cologne, dredging for the north extension of Pier III in Rostock and for the construction of Burchardkai Phase 2 in Hamburg, and maintenance water injection dredging (WID) on the Elbe and the Nord-Ostseekanal.

Major projects in Europe included the following: in Italy, landfall of a gas pipeline in Livorno, environmental works in Pescara, deepening of the cruise terminal at Ravenna, and hydraulic civil engineering works in Molfetta and Cagliari; in France: maintenance dredging works in Bayonne and in Gravelines (Bayonne contract extended to cover 2012 and 2013), execution of a design-build contract in the Port Est of Dunkirk and dredging and scour protection works to repair dykes at Nice airport; in Latvia: deepening of the access and harbour basin at the port of Liepaja and the completion of dredging work on the access channel to Riga Freeport; in Germany: maintenance dredging on the Elbe, in Wilhelmshaven, Cuxhaven-

DREDGING AND ENVIRONMENTAL DIVISION 89


Africa In 2011, DEME carried out a number of dredging, maintenance dredging, civil engineering and environmental projects in sub-Saharan Africa. Highlights included the completion of the first phase of the EKO Atlantic City development and the start of the second phase of this impressive land reclamation project in Lagos, Nigeria. Coastal erosion control and environmental restoration works were executed in Ghana. In Angola, the Soyo LNG terminal was deepened and the remediation of infrastructure around the bay of Luanda was completed. After many years of absence DEME returned to the Democratic Republic of the Congo for a maintenance dredging and channel rehabilitation project on the Congo River. Maintenance dredging projects were also carried out in Guinea, Nigeria, South Africa and Mozambique. Other projects included maintenance dredging in the ports of Richards Bay, Durban, Port Elizabeth, East London and Naqura in South Africa, along with the Polana channel of Maputo Port in Mozambique and in Kamsar in Guinea. In

90 DREDGING AND ENVIRONMENTAL DIVISION

Nigeria, DEME performed maintenance dredging on the Bonny River and Channel, together with wreck removal, maintenance and improvement of navigational aids. It also carried out deepening and maintenance dredging work on a 153km stretch of the river Niger. In Ghana, DEME carried out dredging work on an emergency access channel for an oil drilling rig in the port of Tema, and built seven breakwaters, providing 4km of shore protection in the town of Ada.


Latin America In 2011, DEME continued its expansion in North America, Central America and South America.

close to Colonia in the Rio de la Plata. In Colombia, DEME got off to a promising start with the Las Brisas project, which involves dredging work on an access channel to the future port.

The Group started the year in Venezuela with the continuation of maintenance dredging works on the Rio Orinoco. In Panama, DEME continued dredging works for the Pacific Access Channel to the new set of locks on the Panama Canal, along with major dredging works in the Gatun Lake, located between the existing locks. In Brazil, although the first phase of the PAC (programme for accelerating growth) infrastructure plan was put on hold, DEME continued to perform work for Vale at Ponta Da Madeira, Itajai and Tubarao. Works are underway in Santos, where DEME completed initial drilling and blasting works ahead of dredging works scheduled to start in April 2012. In Mexico, dredging works for the new LNG terminal in Cuyutlan, Manzanillo were performed, using a wide range of dredging equipment. In Uruguay, under a recently signed contract, work on the Muelle C pier at the port of Montevideo will start in spring 2012. In the meantime, dredging works were started on the Montes Del Plata project

DREDGING AND ENVIRONMENTAL DIVISION 91


Middle East

Two artificial islands

Indian subcontinent

There are many opportunities in the Middle East. These relate particularly to major developments in the oil and gas sector - mainly in Abu Dhabi, but also in Iraq, Saudi Arabia and Kuwait - but also to attractive port infrastructure projects in Saudi Arabia, Oman, Iraq and Kuwait.

In the Middle East, DEME’s main contract win in 2011 was a design-build contract for two artificial islands for the Saath Al Raazboot (SARB) offshore oil field. These islands, situated 120 km off the coast of Abu Dhabi, will support the drilling, processing and distribution operations of the offshore oil field. The contract includes the construction of a service harbour in each of the islands. The detailed design for both islands is almost completed and civil engineering and dredging works have started. Another milestone achieved in 2011 was the delivery of MEDCO’s new dredger (Al Jarraf), which was completed in July at the ASL Shipyard in Singapore. The basic design for the construction of the Friendship Bridge – the Qatar Bahrain Causeway – was completed in 2010, but implementation remains on hold due to political turmoil in the Middle East area during 2011.

All the countries in this area (Pakistan, India, Bangladesh, Sri Lanka, The Maldives) offer a wide range of opportunities due to impressive infrastructure developments in both the private and public sectors. However, competition is tough, and the outlook is challenging.

In 2011, the operations of Middle East Dredging Company (MEDCO) - the joint venture between DEME, UDC and Qatar Holding (the investment arm of the Qatari government) - remained focused on Abu Dhabi. The construction of the 1000-hectare platform for the new Takreer refinery in Ruwais was completed. In addition to this contract, DEME was awarded the contract for the reclamation of additional land for the new Carbon Black and Delayed Coker project. These works have already started.

92 DREDGING AND ENVIRONMENTAL DIVISION

In India ISD (International Seaport Dredging) was particularly active, with the completion of the Dhamra construction project and the deepening of the Karaikal port access channel. The success of dredging and ground remediation work at the port of Kakinada strengthened DEME’s long-standing relations with this port, which is one of the fastest-growing ports in India. In Sri Lanka, DEME provided marine sands for the construction of the motorway to Colombo Airport. In late 2011, the company started supplying a second, larger batch of marine sands. Also in late 2011, DEME resumed operations in Pakistan with a new maintenance dredging contract at Port Qasim.


Asia and Australia Australiaâ&#x20AC;&#x2122;s largest dredging contract! Work on the expansion of the Port of Singapore continued during 2011. Work on Phase 4 of the Jurong Island and Tuas B extension continued at a moderate pace. In this project, DEME used sand from Singapore waters, along with sand imported from countries including Cambodia, Vietnam, Bangladesh and the Philippines. DEME also won a contract to supply sand for the Pasir Panjang Container Terminal extension works. The company continued its work in Malaysia with the Tanjung Bin project that began in 2010. Dredging and earthworks were also carried out for the construction of phase 1 of the PMIP industrial estate, which is due for completion in 2012.

Port Hedland outer port extension (Quantum) for BHP Billiton, DEME continued phases B and C of the Early Contractor Involvement (ECI) in preparation for the actual works, which are due to start in 2012. DEME also continued its dredging works in Bige, Papua New Guinea, for OTML. These important dredging works will allow environmentally safe and sustainable mining in the worldâ&#x20AC;&#x2122;s second largest copper-gold mine. The positive impact of these works is clearly evidenced by the total disappearance of flooding and the regeneration of vegetation along the Fly River. Unfortunately, the government of the Philippines took the unilateral decision to cancel the major remediation project that had been awarded to DEME as part of the Laguna de Bay project in Manila. Legal proceedings have been initiated in Washington (ICSID) in order to recover costs relating to preliminary studies and development work on this project.

In Gladstone (Queensland, Australia), a joint venture including DEME won the largest dredging contract ever awarded in Australia. The project covers the main dredging works relating to the LNG terminals on Curtis Island and the Wiggins Coal Terminal, including the deepening and widening of several access channels. The project will last for 30 months. As regards the

DREDGING AND ENVIRONMENTAL DIVISION 93


OFFSHORE ACTIVITIES Firm business levels in oil and gas DEME’s oil and gas specialist Tideway Offshore Contractors maintained a high level of activity both in rock placement and landfall construction. The company’s fallpipe vessels (Rollingstone and Seahorse) performed rock placement services for the protection and stabilisation of oil and gas pipelines and cables. This work was done on behalf of major offshore pipe-laying contractors and oil-and-gas companies in the Baltic Sea, in Russian waters and in the North Sea. Rock placement services relating to the long-term contract for the Skarv and Idun Field Project for BP in the North Sea continued in 2011, and will be completed in 2012. Sea-bed preparation and trenching work was completed for the Nord Stream project, a twin gas export pipeline between Russia and Germany. Post-lay stabilisation and protection works started, and will continue in 2012. In Russian waters, in Baydaratskaya Bay, pipeline stabilisation and protection works were performed. For the Prirazlomnoya Bay GBS Platform Project in the Barents Sea, the company worked in challenging conditions to place scour

94 DREDGING AND ENVIRONMENTAL DIVISION

protection materials around the GBS structure. The new patented Inclined Fall Pipe System on board the Rollingstone proved successful in the Encana Deep Panuke Project in East Canada. This project involves the installation of scour protection materials around the legs of a platform. Various projects on the North Sea were carried out for various operators such as Talisman, Total and RWE. Tideway also carried out cable protection and scour protection work for renewable energy projects, including phases 1 and 2 of the Dong/Walney offshore wind farm in the Irish Sea, and scour protection as part of the Gwynt Y Mor project.

Heavy lift operations: a successful year Scaldis Salvage and Marine Contractors, in which DEME has a 55% stake, was involved in several heavy lift operations in Europe. 2011 was another busy year. Full utilisation of its Rambiz heavy-lift vessel kept Scaldis’ revenue at the same high level as 2010. Assignments included services for maritime civil engineering works, oil and gas-related projects, decommissioning works and work in the renewable energy sector. At the end of 2011, Scaldis ordered a second heavy-lift vessel (Rambiz II). This 4,000-tonne DP2 floating crane can operate in offshore conditions. Other projects

include the removal of the jacket and topside of the Welland Platform in the North Sea, the installation of a jacket and substation for the Lincs Windfarm in the UK, the transportation and installation of a jacket and substation for the Wallney II Windfarm in the Irish Sea , the installation of London Array substations in the UK and the installation of a topside onto the self-elevating Sanaga platform.

Nearshore and offshore marine works GeoSea, specialises in offshore foundation techniques, offshore installation works, site investigation and offshore maintenance. It focuses on high-tech marine projects where its engineering capabilities can be combined with the deployment of innovative jack-up vessels. A new jumbo DP II jack-up vessel (Neptune) will be delivered to GeoSea early 2012. The vessel will have a fixed offshore dynamic crane with a capacity of 600 tonnes. GeoSea also entered into a joint venture with Hochtief (HGO Infra Sea Solutions) for the construction and operation of the world’s largest DP2 jack-up vessel (the Innovation). The vessel is due for delivery from the Crist shipyard in Gdynia (Poland) in mid-2012. Work on the second and third phases of the C-Power Thornton offshore windfarm


project in Belgian waters progressed, with the installation of pre-piles for the 48 jackets. This project confirms GeoSeaâ&#x20AC;&#x2122;s unique capability to install piles with millimetre accuracy in water depths of more than 30 m. A test-pile campaign was executed in the Baltic Sea for the Baltic II windfarm project. GeoSea also took part alongside Scaldis in the Walney project and the London Array offshore windfarm project for Dong Energy. In the German North Sea, installation works on the Borkum West windfarm project progressed well. Pre-piles for 3-legged offshore foundations (tripods) were installed for Trianel. Various site investigation projects were carried out in the Humber Gateway (Eon), Teesside (EDF) and Norther (Belgium). GeoSea subsidiary OWA signed a long-term contract for the maintenance of the Repower offshore wind turbines on the Belgian C-Power project. In Australia, work started on the Hay Point pier construction project for BMA (BHP Billiton Mitsubishi Alliance). The project is being carried out in collaboration with McConnell Dowell, GeoSeaâ&#x20AC;&#x2122;s partner in Australia. New orders were obtained for the installation of offshore transformer stations (OTS) on various German offshore windfarms. GeoSea was also involved, alongside 3E, in several innovative projects such as FLIDAR (Floating Lidar buoy) and the development of a robot to erect wind turbines.

Deep sea mining services OceanflORE is a joint venture between the offshore specialist IHC Merwede and DEME. It focuses on providing solutions for the offshore mining of phosphates, seafloor massive sulphides (SMS), manganese nodules and other rare earth minerals. It also prepares guidelines for a sustainable approach to deep sea mining. During 2011, OceanflORE initiated research and design work in various areas including excavation of deposits, vertical transport to the surface, power supplies and onboard processing procedures.

DREDGING AND ENVIRONMENTAL DIVISION 95


ENVIRONMENTAL ACTIVITIES Soil decontamination, treatment of polluted sediments and water purification cleaning: using technology to support the environment DEC, de Vries & van de Wiel, Ecoterres and Extract-Ecoterres are part of Ecoterres Holding, DEME’s environmental group. In 2011, their business levels showed a slight decrease compared with 2010. The non-feasibility of the Santos soil remediation and stabilisation project resulted in works being brought to a premature end. As a result, DEC-Ecoterres’ activities were focused in Europe with an emphasis on the UK and Benelux markets. The company has a number of long-term contracts, which guarantee continuity. The environmental group continued decontamination and remediation work at the former Avenue coking works project near Chesterfield (UK). This is one of the largest projects ever undertaken in the UK soil remediation sector.

96 DREDGING AND ENVIRONMENTAL DIVISION

In Belgium, a joint venture involving DEC completed the construction of the silt treatment and storage system in the port of Antwerp, as part of the AMORAS project. The exploitation phase of the project started in October 2011 and the plant was tested in December 2011. The AMORAS project covers the design, construction and operation of silt treatment and storage facilities. DEC’s soil and sediment recycling centres at Kallo, Brugge, Heusden-Zolder, Zwijndrecht, Ruisbroek, Zeebrugge, Desteldonk and Zwijnaarde performed well.

Terra Nova, Purazur, Terranata: new additions to the decontamination business In 2010, DEC purchased 140 hectares of undeveloped land from the former Nilefos Chemie in the north of Ghent. DEC will redevelop this land as part of the Terranova joint venture. The site will house a treatment centre for dredged material, a business park and the construction of the largest solar energy farm in Benelux (240,000 m² of solar panels). Purazur is a new DEC subsidiary. It focuses on high-tech treatment of industrial sediment. In 2011, Purazur also signed a privileged partnership agreement with the water treatment


company Induss, resulting in the creation of a new company called Induss San. Together with property development companies BPI (CFE Group) and Extensa (Ackermans & van Haaren), DEC created Terrenata, a brownfield development company. Terrenata acquires former industrial sites with the aim of decontaminating them before reclaiming them for the development of sustainable projects.

Ecoterres: Belgium, Europe and the USA

dredging, treatment of polluted sediment and cleaning of industrial and urban water treatment installations. In 2011, the company treated contaminated sediments from the Evry canal and the port of Paris. It carried out projects involving soil and groundwater treatment, environmental dredging and site remediation in Achères, Magny-le-Hongre, Lyon, Montereau, Marseille and in the Vendée region. In relation to these activities, it operates the Trasable silt recycling centre in the port of Gennevilliers and another centre in Bonneuil-sur-Marne. In the USA, DEC (via Environmental Remediation Holding) joined forces with US dredging company GLDD to create a new US-based company called TerraSea Solutions Ltd.

In Belgium, Ecoterres owns and operates several soil and sediment recycling centres in Tubize, Charleroi and Liege (Cetraval). In 2010, the company also opened the Sedisol dredging sediment treatment centre in Farciennes, as part of a joint venture. In Sweden, soil decontamination projects were completed in Söderhamn. A new contract was awarded for remediation work in Valdemarsvik, southern Sweden. In Italy, soil remediation works were awarded and executed in Pescara and Ravenna. In the Netherlands, DEC-Ecoterres carried out a number of soil and sediment decontamination projects via de Vries & van de Wiel. In France, ExtractEcoterres continued to increase its revenue, and remains the leading player in environmental

DREDGING AND ENVIRONMENTAL DIVISION 97


BUILDING MATERIALS

ments in onshore processing units, such as the one in Boulogne, and new marine concessions on the Atlantic Coast in France. Current operations are taking place in the ports of Le Havre, Dieppe, Dunkirk and Boulogne-sur-Mer in France, Flushing and Amsterdam in The Netherlands, Gdansk in Poland and London in the UK. At the end of 2011, DBM secured an important contract for the delivery of all marine sand and aggregates (1.5 million tonnes) for the new Deurganckdok lock, which is reputed to be the biggest in the world.

DEME Building Materials (DBM) specialises in the extraction, processing and sale of marine aggregates for the construction industry, originating from its marine sand and gravel concessions. In 2011, DBM launched its gravel trailer vessel Victor Horta. The geographical distribution of DBMâ&#x20AC;&#x2122;s aggregates reserves (up to 200 million tonnes) allows DBM to offer a reliable long-term alternative to river-dredged material for concrete production in continental Europe. Long-term framework agreements have been signed with industrial partners such as Brett, Carrières du Boulonnais and Eurovia. DBM is also continuing its policy of selective invest-

Order book as of December 31

98 DREDGING AND ENVIRONMENTAL DIVISION

Revenue

(in millions EUR) at 100%

2011

2010

2011

2010

DEME

2,404

1,935

1,766

1,801


PROJECT DEVELOPMENT, CONCESSIONS AND RENEWABLE ENERGY In the offshore wind farm segment, DEME developed initiatives in several European countries through its offshore concession specialist Power@Sea. Power@Sea provides an all-in-one service to its customers for offshore energy projects. The company handles everything including the preparation of maintenance plans, applications for environmental permits, procurement procedures, assistance with regulations, tendering, financing, construction, distribution, operation and life cycle management.

Opening doors for other group companies Power@seaâ&#x20AC;&#x2122;s first major project is the C-Power project on the Thornton Bank, where it will also handle maintenance after completion of the project. The multidisciplinary works involved in this project are being executed by a number of DEME specialists. In 2011, Power@Sea, together with other companies involved in the Otary partnership, continued the acquisition and development of new concessions for offshore

wind farm projects on the Belgian continental shelf, such as Rentel and SeaStar. In addition, together with Electrabel, Otary submitted an application under the name of Mermaid for an offshore energy project in the last available zone for offshore wind power in the North Sea. DEME and Power@Sea took a leading role in this application. In Poland, Power@Sea applied for a permit for the development, construction and installation of two offshore wind farms, called C-Wind and B-Wind, in the Polish Baltic Sea, with a total maximum installed capacity of 400 MW.

(Heerema) regarding the development of the BLUETEC tidal energy converter. DBE is also a partner in the REBO (Renewable Energy Base Oostende) initiative, which is organized as a special-purpose company intended to operate in logistics development in the port of Ostend. REBO obtained a concession for the use of 10 hectares of dedicated space in the Ostend outer port. The necessary infrastructure works were carried out in 2011 so that a logistics port area for renewable energy would be available in Ostend.

DEME Blue Energy The wave and tidal energy activities of DEME Blue Energy (DBE) also form part of DEMEâ&#x20AC;&#x2122;s strategy of early involvement in innovative projects that are likely to have positive repercussions for the DEME Group. In 2011, Flemish investment company PMV acquired a 30% stake in DBE. Significant initiatives in this area in 2011 included research by FlanSea to develop a device that converts wave energy into electricity, and the Eleanore co-operation agreement between seven European companies operating in the electricity transmission industry, aimed at developing the offshore transmission network of tomorrow. DBE signed a co-operation agreement with Siemens, PDA and Bluewater

DREDGING AND ENVIRONMENTAL DIVISION 99


100 DREDGING AND ENVIRONMENTAL DIVISION


Women, men, one group

Colophon Copyright for the photos and images, in alphabetical order DEME Philippe van Gelooven Tom Dâ&#x20AC;&#x2122;Haenens Design and realisation Antenno Marketing & Communicatie Cogels Osylei 19 BE 2600 Berchem This annual report is available in French, Dutch and English.


Compagnie dâ&#x20AC;&#x2122;Entreprises CFE SA Avenue Herrmann-Debroux 42 BE 1160 Brussels Editor : Yves Weyts Editorial Contact : Ann Vansumere Tel +32.2.661.13.97 ann_vansumere@cfe.be

cfe_jaarverslag_EN.pdf  

Jaarverslag CFE

Advertisement