The Future of Construction in France

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					       The Future of Construction in France
       Market Intelligence Report

       Reference code: WMCN0112MR
       Published: March 2010




       www.worldmarketintelligence.com


       World Market Intelligence

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© World Market Intelligence. This report is a licensed product and is not to be photocopied
EXECUTIVE SUMMARY



1 Executive Summary

1.1 Construction Market Trends

               Some boom and bust: During the four year period from 2004-07, French households benefited from low
               interest rates and easier access to credit for mortgages; extended loan durations; and lower down-
               payment requirements. However, the global recession led to a decline in construction value during 2008.
               However, France was less badly affected than many countries, with the economy returning to growth of
               0.3% in the third quarter of 2009.

               Stimulus package: President Nicolas Sarkozy has unveiled a €26.0 billion (US$32.9 billion) stimulus
               plan for the faltering French economy. The stimulus plan allocated €10.5 billion (US$15.4 billion) for
               infrastructure, research, and support for local authorities. This plan included €4.0 billion (US$5.8 billion)
               investment for state-owned rail, energy, and including a focus to speed up projects such as a fast speed
               train link in western France.




The Future of Construction in France                                                                    Published March 2010

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TABLE OF CONTENTS



TABLE OF CONTENTS

1     Executive Summary................................................................................................................. 2

1.1     Construction Market Trends ............................................................................................................................... 2


2     Introduction ............................................................................................................................ 11

2.1     What Is This Report About?.............................................................................................................................. 11

2.2     Definitions........................................................................................................................................................... 11

2.3     Summary Methodology ..................................................................................................................................... 12


3     France Construction Market ................................................................................................. 13

3.1     Construction Market Overview ......................................................................................................................... 13

3.2     Construction Market Data ................................................................................................................................. 14

3.3     Commercial construction .................................................................................................................................. 17
    3.3.1     Commercial construction overview ............................................................................................................... 17
    3.3.2     Commercial construction market data .......................................................................................................... 17

3.4     Infrastructure construction ............................................................................................................................... 21
    3.4.1     Infrastructure construction overview ............................................................................................................. 21
    3.4.2     Infrastructure construction market data ........................................................................................................ 21

3.5     Industrial construction ...................................................................................................................................... 26
    3.5.1     Industrial construction overview ................................................................................................................... 26
    3.5.2     Industrial construction market data ............................................................................................................... 26

3.6     Institutional construction .................................................................................................................................. 31
    3.6.1     Institutional construction overview ................................................................................................................ 31
    3.6.2     Institutional construction market data ........................................................................................................... 31

3.7     Residential construction ................................................................................................................................... 35
    3.7.1     Residential construction overview ................................................................................................................ 35
    3.7.2     Residential construction market data ........................................................................................................... 35


4     France Construction Projects............................................................................................... 39

4.1     Top 15 Projects: ................................................................................................................................................. 39




The Future of Construction in France                                                                                                               Published March 2010

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5     Contractor Profile: VINCI ...................................................................................................... 40

5.1     VINCI Company Overview ................................................................................................................................. 40
    5.1.1     VINCI - Business Description ....................................................................................................................... 40
    5.1.2     VINCI - Major Products and Services ........................................................................................................... 43
    5.1.3     VINCI - History .............................................................................................................................................. 44

5.2     VINCI - SWOT Analysis ...................................................................................................................................... 44
    5.2.1     VINCI – Strengths ......................................................................................................................................... 44
    5.2.2     VINCI – Weaknesses.................................................................................................................................... 45
    5.2.3     VINCI – Opportunities ................................................................................................................................... 46
    5.2.4     VINCI – Threats ............................................................................................................................................ 46

5.3     VINCI – Company Information .......................................................................................................................... 48
    5.3.1     VINCI - Key Competitors .............................................................................................................................. 48
    5.3.2     VINCI - Key Employees ................................................................................................................................ 48

5.4     VINCI - Financial Ratios ..................................................................................................................................... 50


6     Contractor Profile: Bouygues S.A. ....................................................................................... 52

6.1     Bouygues S.A. Company Overview ................................................................................................................. 52
    6.1.1     Bouygues S.A. - Business Description ......................................................................................................... 52
    6.1.2     Bouygues S.A. - Major Products and Services ............................................................................................ 54
    6.1.3     Bouygues S.A. - History................................................................................................................................ 55

6.2     Bouygues S.A. - SWOT Analysis ...................................................................................................................... 56
    6.2.1     Bouygues S.A. – Strengths .......................................................................................................................... 56
    6.2.2     Bouygues S.A. – Weaknesses ..................................................................................................................... 56
    6.2.3     Bouygues S.A. – Opportunities .................................................................................................................... 57
    6.2.4     Bouygues S.A. – Threats .............................................................................................................................. 58

6.3     Bouygues S.A. – Company Information .......................................................................................................... 59
    6.3.1     Bouygues S.A. - Key Competitors ................................................................................................................ 59
    6.3.2     Bouygues S.A. - Key Employees .................................................................................................................. 60

6.4     Bouygues S.A. - Financial Ratios ..................................................................................................................... 61


7     Contractor Profile: Eiffage SA .............................................................................................. 63

7.1     Eiffage SA Company Overview......................................................................................................................... 63
    7.1.1     Eiffage SA - Business Description ................................................................................................................ 63
    7.1.2     Eiffage SA - Major Products and Services ................................................................................................... 64
    7.1.3     Eiffage SA - History ...................................................................................................................................... 65



The Future of Construction in France                                                                                                              Published March 2010

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7.2     Eiffage SA - SWOT Analysis ............................................................................................................................. 66
    7.2.1     Eiffage SA – Strengths ................................................................................................................................. 66
    7.2.2     Eiffage SA – Weaknesses ............................................................................................................................ 67
    7.2.3     Eiffage SA – Opportunities ........................................................................................................................... 67
    7.2.4     Eiffage SA - Threats ..................................................................................................................................... 68

7.3     Eiffage SA – Company Information .................................................................................................................. 69
    7.3.1     Eiffage SA - Key Competitors ....................................................................................................................... 69
    7.3.2     Eiffage SA - Key Employees ........................................................................................................................ 69

7.4     Eiffage SA - Financial Ratios ............................................................................................................................ 70


8     Contractor Profile: Technip .................................................................................................. 72

8.1     Technip Company Overview ............................................................................................................................. 72
    8.1.1     Technip - Business Description .................................................................................................................... 72
    8.1.2     Technip - Major Products and Services ........................................................................................................ 76
    8.1.3     Technip - History........................................................................................................................................... 77

8.2     Technip - SWOT Analysis ................................................................................................................................. 78
    8.2.1     Technip – Strengths ...................................................................................................................................... 79
    8.2.2     Technip – Weaknesses ................................................................................................................................ 79
    8.2.3     Technip – Opportunities................................................................................................................................ 80
    8.2.4     Technip – Threats ......................................................................................................................................... 81

8.3     Technip – Company Information ...................................................................................................................... 81
    8.3.1     Technip - Key Competitors ........................................................................................................................... 81
    8.3.2     Technip - Key Employees ............................................................................................................................. 82

8.4     Technip - Financial Ratios ................................................................................................................................ 83


9     Contractor Profile: CEGELEC SA ......................................................................................... 85

9.1     CEGELEC SA Company Overview ................................................................................................................... 85
    9.1.1     CEGELEC SA - Business Description .......................................................................................................... 85
    9.1.2     CEGELEC SA - Major Products and Services ............................................................................................. 87
    9.1.3     CEGELEC SA - History ................................................................................................................................ 88

9.2     CEGELEC SA - SWOT Analysis ........................................................................................................................ 89
    9.2.1     CEGELEC SA – Strengths ........................................................................................................................... 89
    9.2.2     CEGELEC SA – Weaknesses ...................................................................................................................... 89
    9.2.3     CEGELEC SA - Opportunities ...................................................................................................................... 90
    9.2.4     CEGELEC SA – Threats............................................................................................................................... 90




The Future of Construction in France                                                                                                            Published March 2010

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9.3     CEGELEC SA – Company Information ............................................................................................................ 91
  9.3.1       CEGELEC SA - Key Competitors ................................................................................................................. 91
  9.3.2       CEGELEC SA - Key Employees .................................................................................................................. 91


10 Contractor Profile: Eurovia ................................................................................................... 93

10.1    Eurovia Company Overview ............................................................................................................................. 93
  10.1.1      Eurovia - Business Description ..................................................................................................................... 93
  10.1.2      Eurovia - Major Products and Services ........................................................................................................ 94
  10.1.3      Eurovia - History ........................................................................................................................................... 95

10.2    Eurovia - SWOT Analysis .................................................................................................................................. 96
  10.2.1      Eurovia – Strengths ...................................................................................................................................... 96
  10.2.2      Eurovia – Weaknesses ................................................................................................................................. 97
  10.2.3      Eurovia – Opportunities ................................................................................................................................ 97
  10.2.4      Eurovia – Threats ......................................................................................................................................... 98

10.3    Eurovia – Company Information....................................................................................................................... 99
  10.3.1      Eurovia - Key Competitors ............................................................................................................................ 99
  10.3.2      Eurovia - Key Employees ............................................................................................................................. 99


11 Deal Analysis ....................................................................................................................... 100

11.1    Deal benchmarks ............................................................................................................................................. 100

11.2    Key recent deals .............................................................................................................................................. 102


12 Appendix .............................................................................................................................. 103

12.1    About World Market Intelligence .................................................................................................................... 103




The Future of Construction in France                                                                                                             Published March 2010

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LIST OF TABLES


Table 1:      World Market Intelligence Construction Category Definitions ....................................................................................... 11
Table 2:      France Overall Construction Market (€ mn), By Project Type, 2004-09 ........................................................................ 15
Table 3:      France Overall Construction Market Forecast (€ mn), By Project Type, 2008-2014 ..................................................... 16
Table 4:      France Overall Construction Market Segmentation (%), By Project Type, 2004-2014 .................................................. 16
Table 5:      France Overall Construction Market (US$ mn), By Project Type, 2004-09 ................................................................... 16
Table 6:      France Overall Construction Market Forecast (US$ mn), By Project Type, 2008-2014 ................................................ 16
Table 7:      France Commercial Construction Market (€ mn), By Project Type, 2004-09 ................................................................ 19
Table 8:      France Commercial Construction Market Forecast (€ mn), By Project Type, 2008-2014 ............................................. 19
Table 9:      France Commercial Construction Market Segmentation (%), By Project Type, 2004-2014 .......................................... 19
Table 10:     France Commercial Construction Market (US$ mn), By Project Type, 2004-09 ........................................................... 20
Table 11:     France Commercial Construction Market Forecast (US$ mn), By Project Type, 2008-2014 ........................................ 20
Table 12:     France Infrastructure Construction Market (€ mn), By Project Type, 2004-09 .............................................................. 23
Table 13:     France Infrastructure Construction Market Forecast (€ mn), By Project Type, 2009-2014 ........................................... 24
Table 14:     France Infrastructure Construction Market Segmentation (%), By Project Type, 2004-2014 ........................................ 24
Table 15:     France Infrastructure Construction Market (US$ mn), By Project Type, 2004-09 ......................................................... 24
Table 16:     France Infrastructure Construction Market Forecast (US$ mn), By Project Type, 2009-2014....................................... 25
Table 17:     France Industrial Construction Market (€ mn), By Project Type, 2004-09 ..................................................................... 28
Table 18:     France Industrial Construction Market Forecast (€ mn), By Project Type, 2009-2014 .................................................. 29
Table 19:     France Industrial Construction Market Segmentation (%), By Project Type, 2004-2014 ............................................... 29
Table 20:     France Industrial Construction Market (US$ mn), By Project Type, 2004-09 ................................................................ 29
Table 21:     France Industrial Construction Market Forecast (US$ mn), By Project Type, 2009-2014 ............................................. 30
Table 22:     France Institutional Construction Market (€ mn), By Project Type, 2004-09 ................................................................. 33
Table 23:     France Institutional Construction Market Forecast (€ mn), By Project Type, 2009-2014 .............................................. 33
Table 24:     France Institutional Construction Market Segmentation (%), By Project Type, 2004-2014 ........................................... 34
Table 25:     France Institutional Construction Market (US$ mn), By Project Type, 2004-09 ............................................................ 34
Table 26:     France Institutional Construction Market Forecast (US$ mn), By Project Type, 2009-2014 ......................................... 34
Table 27:     France Residential Construction Market (€ mn), By Project Type, 2004-09 .................................................................. 37
Table 28:     France Residential Construction Market Forecast (€ mn), By Project Type, 2009-2014 ............................................... 37
Table 29:     France Residential Construction Market Segmentation (%), By Project Type, 2004-2014 ........................................... 38
Table 30:     France Residential Construction Market (US$ mn), By Project Type, 2004-09 ............................................................. 38
Table 31:     France Residential Construction Market Forecast (US$ mn), By Project Type, 2009-2014 .......................................... 38
Table 32:     Top 15 Live Projects in France Construction Market ..................................................................................................... 39
Table 33:     VINCI Key Facts............................................................................................................................................................ 40
Table 34:     VINCI Major Products & Services ................................................................................................................................. 43
Table 35:     VINCI History ................................................................................................................................................................ 44
Table 36:     VINCI, Key Employees .................................................................................................................................................. 48




The Future of Construction in France                                                                                                                           Published March 2010

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Table 37:     VINCI, Key Employee Biographies................................................................................................................................ 49
Table 38:     VINCI, Capital Market Ratios based on current share price .......................................................................................... 50
Table 39:     VINCI, Interim Ratios .................................................................................................................................................... 50
Table 40:     VINCI, Annual Ratios .................................................................................................................................................... 51
Table 41:     Bouygues S.A. Key Facts.............................................................................................................................................. 52
Table 42:     Bouygues S.A. Major Products & Services ................................................................................................................... 54
Table 43:     Bouygues S.A. History .................................................................................................................................................. 55
Table 44:     Bouygues S.A., Key Employees .................................................................................................................................... 60
Table 45:     Bouygues S.A., Key Employee Biographies.................................................................................................................. 61
Table 46:     Bouygues S.A., Capital Market Ratios based on current share price ............................................................................ 61
Table 47:     Bouygues S.A., Interim Ratios ...................................................................................................................................... 61
Table 48:     Bouygues S.A., Annual Ratios ...................................................................................................................................... 62
Table 49:     Eiffage SA Key Facts .................................................................................................................................................... 63
Table 50:     Eiffage SA Major Products & Services .......................................................................................................................... 64
Table 51:     Eiffage SA History ......................................................................................................................................................... 65
Table 52:     Eiffage SA, Key Employees .......................................................................................................................................... 69
Table 53:     Eiffage SA, Key Employee Biographies ........................................................................................................................ 69
Table 54:     Eiffage SA, Capital Market Ratios based on current share price ................................................................................... 70
Table 55:     Eiffage SA, Interim Ratios ............................................................................................................................................. 70
Table 56:     Eiffage SA, Annual Ratios ............................................................................................................................................. 71
Table 57:     Technip Key Facts ........................................................................................................................................................ 72
Table 58:     Technip Major Products & Services .............................................................................................................................. 76
Table 59:     Technip History ............................................................................................................................................................. 77
Table 60:     Technip, Key Employees .............................................................................................................................................. 82
Table 61:     Technip, Key Employee Biographies ............................................................................................................................ 83
Table 62:     Technip, Capital Market Ratios based on current share price ....................................................................................... 83
Table 63:     Technip, Interim Ratios ................................................................................................................................................. 83
Table 64:     Technip, Annual Ratios ................................................................................................................................................. 84
Table 65:     CEGELEC SA Key Facts .............................................................................................................................................. 85
Table 66:     CEGELEC SA Major Products & Services .................................................................................................................... 87
Table 67:     CEGELEC SA History ................................................................................................................................................... 88
Table 68:     CEGELEC SA , Key Employees ................................................................................................................................... 91
Table 69:     CEGELEC SA , Key Employee Biographies ................................................................................................................. 92
Table 70:     Eurovia Key Facts ......................................................................................................................................................... 93
Table 71:     Eurovia Major Products & Services ............................................................................................................................... 94
Table 72:     Eurovia History .............................................................................................................................................................. 95
Table 73:     Eurovia, Key Employees ............................................................................................................................................... 99
Table 74:     France Construction Industry Completed Deal Numbers, By Deal Type, 2005-2009YTD .......................................... 100
Table 75:     France Construction Industry Completed Deal Value (US$ mn), By Deal Type, 2005-2009YTD................................ 100




The Future of Construction in France                                                                                                                           Published March 2010

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Table 76:     France Construction Industry Average Value Per Completed Deal (US$ mn), By Deal Type, 2005-2009YTD ........... 101
Table 77:     France Construction Industry Current Deal Status, 2009YTD ..................................................................................... 101
Table 78:     France Construction Key Completed Transactions, 2007-2009, By Date ................................................................... 102




The Future of Construction in France                                                                                                  Published March 2010

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LIST OF FIGURES

Figure 1: France Overall Construction Market & Market Forecast (€ bn), By Project Type, 2004-14................................................ 14
Figure 2: France Overall Construction Market Dynamics, By Project Type, 2004-14 ....................................................................... 15
Figure 3: France Commercial Construction Market & Market Forecast (€ bn), By Project Type, 2004-14 ........................................ 18
Figure 4: France Commercial Construction Market Dynamics, By Project Type, 2004-14 ................................................................ 18
Figure 5: France Infrastructure Construction Market & Market Forecast (€ bn), By Project Type, 2004-14 ...................................... 22
Figure 6: France Infrastructure Construction Market Dynamics, By Project Type, 2004-14 .............................................................. 23
Figure 7: France Industrial Construction Market & Market Forecast (€ bn), By Project Type, 2004-14 ............................................ 27
Figure 8: France Industrial Construction Market Dynamics, By Project Type, 2004-14 .................................................................... 28
Figure 9: France Institutional Construction Market & Market Forecast (€ bn), By Project Type, 2004-14 ......................................... 32
Figure 10: France Institutional Construction Market Dynamics, By Project Type, 2004-14 ............................................................... 33
Figure 11: France Residential Construction Market & Market Forecast (€ bn), By Project Type, 2004-14 ....................................... 36
Figure 12: France Residential Construction Market Dynamics, By Project Type, 2004-14 ............................................................... 37
Figure 13: France Construction Industry Completed Deals & Deal Values, 2005-2009 .................................................................. 101




The Future of Construction in France                                                                                            Published March 2010

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DEFINITIONS & METHODOLOGY



2 Introduction

2.1 What Is This Report About?

       This report is the result of our extensive market, company and deals research covering the French construction
       market. It provides detailed segmentation of historic and forecast construction sales, segmented to market and
       category level; analysis of the leading French companies in the construction market and analysis of the key
       financial deals involving construction players in France.

       “The Future of Construction in France” provides both top-level overview and detailed market and category and
       company-specific insights into France‟s construction industry environment. It is an essential tool for companies
       active across France‟s construction value chain and for new players considering entering France‟s construction
       market.



2.2 Definitions

       All data is collected in local currency. To avoid distortions due to currency fluctuations, all conversions into US$
       (of current, historical and forecast data alike) are made at the average 2008 average conversion rate. All tables
       are displayed to one decimal place, and hence growth rates may appear inconsistent with absolute values due
       to rounding errors.

       The key channels and categories featured in the report are defined below:


         Table 1:        World Market Intelligence Construction Category Definitions
         Category                                       Definition
         Commercial construction                        Commercial construction includes the construction of such projects as office buildings,
                                                        shopping centers, sports complexes, and hotels.
         Infrastructure construction                    Infrastructure construction encompasses a range of heavy infrastructure construction
                                                        projects, including the construction of highways, bridges, tunnels, water lines, sewer
                                                        lines, pipelines, power and communication transmission lines., athletic fields, dams,
                                                        dikes, docks, drainage projects, golf courses, harbors, parks, reservoirs, canals, sewage
                                                        treatment plants, water treatment plants, subways, and other mass transit projects
         Industrial construction                        This industry consists of the construction (including new build, extensions and major
                                                        rebuilds) of industrial buildings. The construction of selected additional structures, whose
                                                        production processes are similar to those for industrial buildings (e.g., incinerators,
                                                        cement plants, blast furnaces, and similar non-building structures), is also included.
         Institutional construction                     Institutional construction includes buildings not included in the commercial category such
                                                        as educational institutions, research facilities, healthcare facilities and religious buildings.
                                                        They may be public- or private-sector.
         Residential construction                       Residential construction includes the building, renovating and demolition of residential
                                                        buildings such as houses, townhouses, cottages, condominiums, single unit dwellings,
                                                        subdivisions and apartments.
        Source: World Market Intelligence analysis                                                                / © World Market Intelligence




The Future of Construction in France                                                                                             Published March 2010

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DEFINITIONS & METHODOLOGY




2.3 Summary Methodology

       All WMI reports are rigorously sourced according to a comprehensive written methodology.

       Company data: company information is derived from company annual reports, statements and websites, news
       releases, external news sources and information providers. Analytical company content is created by WMI‟s in-
       house analyst team based on published information, industry data and our industry expertise

       Deals data: our deals reports database is derived from secondary sources including company annual reports,
       statements and websites, news releases, external news sources and information providers

       Projects data: our project database is derived from secondary sources including company news releases,
       published invitations to tender, external news sources and information providers. We also carry out primary
       research using our in-house research team, contacting key figures within the project to verify our information
       and determine the latest project status and contract opportunities

       Market data: WMI has a standard process for market data research across all of its products. Our market data
       research is based on:


                  Review of Existing Databases – World Market Intelligence maintains databases of industry and
                  company operational data and analysis, which are used as the foundation for our market modelling
                  activities.

                  Market Research – Collection of the latest market-specific data from a wide variety of respected
                  industry sources at both a national and international level. Sources used include government statistics,
                  trade associations, company filings, broker and analyst reports, and official international sources

                  Data Consolidation – Our analysts benchmark data from internal and external sources to verify
                  historical market data and to ensure that latest year data is fully supported by external opinion.

                  Creation of Market Models – We feed the latest macroeconomic data and specific market drivers from
                  national statistics offices and trade associations into our complex market models to generate market
                  forecasts.

                  Analyst Review – Modelled forecasts are refined by our experienced analyst teams, based on
                  information collected from primary and secondary sources across the industry.

                  Quality Control – We rigorously conduct checks on our data and processes throughout the production
                  of every market profile, to ensure that the highest levels of data quality are maintained across our
                  portfolio




The Future of Construction in France                                                                     Published March 2010

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CONSTRUCTION MARKET




3 France Construction Market
       This section of this report provides insight into France‟s construction market at overall level. It breaks the
       market down by type of project: commercial, infrastructure, industrial, institutional and residential construction.



3.1 Construction Market Overview

          The construction sector of France showed a multi-year boom, like most other EU countries. During 2004-07,
          French households profited by low interest rates and easier access to credit for mortgages; extended loan
          durations; and less down-payment requirements. However, the recession, which was rooted primarily in the
          housing market, led to a decline in construction value during 2008.

          The European construction market has been through difficult period in 2008-09. However, tentative positive
          signs have emerged with the recent announcements of GDP growth in France and Germany. As per the
          National Statistics Office, the French economy grew by 0.3% in Q3, 2009.

          The housing sector of France witnessed hard times in 2008, due to tightened financing conditions for home
          buyers, a worse income situation, and decreased orders for new construction in line with shrinking housing
          permits.

          Leading domestic firms, VINCI, Bouygues and Eiffage are the largest companies in the area of general
          contracts and engineering. However, the French construction industry is highly fragmented by approximately
          0.25 million active contractors.

          French contractors are increasingly focusing on the Middle East region because of the ongoing construction
          boom there. This is also attributable to changing market conditions in France due to increased tax rates and
          the effects of the global economic slowdown.

          In the long run, 2009-2014, industrial construction and institutional construction are expected to perform well
          compared to the commercial, infrastructure and residential segments.

          In December 2008, President Nicolas Sarkozy unveiled a €26.0 billion (US$32.9 billion) stimulus plan for the
          faltering French economy. The stimulus plan allocated €10.5 billion (US$15.4 billion) for infrastructure,
          research, and support for local authorities. This plan included €4.0 billion (US$5.8 billion) investment for
          state-owned rail, energy, and including a focus to speed up projects such as a fast speed train link in western
          France.




The Future of Construction in France                                                                    Published March 2010

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CONSTRUCTION MARKET




3.2 Construction Market Data

       The French construction market was valued at €172.6 billion (US$254.0 billion) in 2008, a decline of -2.3% on
       2007. The market achieved a compounded annual growth rate (CAGR) of 5.6% over the period 2004-2008.
       According to WMI, the French construction market is expected to be valued at €225.0 billion (US$331.1 billion)
       in 2014, compared to an estimated value of €181.6 billion (US$267.2 billion) in 2009. The market is expected to
       achieve a CAGR of 4.4% over the period 2009-2014.

       The leading segment in French construction market was residential construction with €80.2 billion (US$117.9
       billion) of revenues in 2008, accounting for 46.4% of the overall construction market. The second-largest
       segment was infrastructure construction, which accounted for a value of €38.9 billion (US$57.3 billion) in 2008.
       Commercial construction, which accounted for €24.5 billion (US$36.1 billion) in 2008, was the third-largest
       construction segment.

       For 2009, WMI estimates that the corresponding figures will be €84.2 billion (US$123.8 billion) for residential
       construction, €40.7 billion (US$59.9 billion) for infrastructure construction, €25.5 billion (US$37.6 billion) for
       commercial construction.

       Industrial construction was the fastest growing segment in the French construction market, with a CAGR of
       9.1% over the period 2004-2008, followed by institutional construction (CAGR of 8.2%), and residential
       construction (CAGR of 6.3%) over the same period.

       According to WMI, the industrial construction is expected to be the fastest growing segment in the French
       construction market, with a CAGR of 7.0% over the period 2009-2014, followed by institutional construction
       (CAGR of 6.6%), and residential construction (CAGR of 4.1%) over the same period.


         Figure 1: France Overall Construction Market & Market Forecast (€ bn), By Project Type, 2004-14




        Source: World Market Intelligence analysis                                              / © World Market Intelligence




       In growth terms, for the overall construction market, the leading segment with share 46.4% - residential
       construction, witnessed CAGR growth of 5.6% over the period 2004-09, and is expected to experience CAGR



The Future of Construction in France                                                                    Published March 2010

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CONSTRUCTION MARKET



       of 4.1% over the period 2009-14. Industrial construction witnessed the highest CAGR of 8.8% over the period
       2004-09 and is expected to experience highest CAGR of 7.0% over the period 2009-14.


         Figure 2: France Overall Construction Market Dynamics, By Project Type, 2004-14




        Source: World Market Intelligence analysis                                                              / © World Market Intelligence


       The following tables provide detailed data on overall France construction market historic and forecast values,
       growth and share by project type, presented in € and in US$ at constant 2008 exchange rates:


         Table 2:        France Overall Construction Market (€ mn), By Project Type, 2004-09
                                                                                                                          CAGR         CAGR
         Category                            2004          2005          2006          2007        2008         2009     2004-08      2004-09
         Commercial construction         23,072.3      24,469.8      25,042.3      25,648.5    24,526.0     25,521.4        1.5%         2.0%
         Infrastructure construction     31,840.9      34,097.0      38,438.5      40,320.6    38,929.8     40,705.7        5.2%         5.0%
         Industrial construction           7,885.6       8,984.5       9,877.6     10,868.1    11,164.4     12,041.3        9.1%         8.8%
         Institutional construction      13,020.3      14,716.8      16,051.4      17,520.8    17,855.5     19,181.2        8.2%         8.1%
         Residential construction        62,784.7      67,790.0      77,187.1      82,342.0    80,160.2     84,163.3        6.3%         6.0%
         Overall                       1,38,603.8     1,50,058.0   1,66,597.0    1,76,700.0   1,72,635.9   1,81,613.0       5.6%          5.6%
        Source: World Market Intelligence analysis                                                              / © World Market Intelligence




The Future of Construction in France                                                                                    Published March 2010

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         Table 3:        France Overall Construction Market Forecast (€ mn), By Project Type, 2008-2014
                                                                                                                                               CAGR
         Category                              2009            2010               2011           2012              2013            2014       2009-14
         Commercial construction           25,521.4         26,377.5        27,207.0          28,072.7          28,962.5       29,891.2         3.2%
         Infrastructure construction       40,705.7         42,274.6        43,814.9          45,427.7          47,094.2       48,839.3         3.7%
         Industrial construction           12,041.3         12,899.1        13,790.0          14,747.7          15,770.1       16,869.4         7.0%
         Institutional construction        19,181.2         20,465.9        21,792.4          23,213.2          24,723.7       26,342.0         6.6%
         Residential construction          84,163.3         87,768.4        91,342.1          95,095.7          98,991.7      1,03,084.2        4.1%
         Overall                         1,81,613.0       1,89,785.6      1,97,946.3        2,06,557.0      2,15,542.2    2,25,026.1           4.4%
        Source: World Market Intelligence analysis                                                                   / © World Market Intelligence



         Table 4:        France Overall Construction Market Segmentation (%), By Project Type, 2004-2014
         Category                                           2004                          2008                        2009                      2014
         Commercial construction                          16.6%                          14.2%                       14.1%                     13.3%
         Infrastructure construction                      23.0%                          22.6%                       22.4%                     21.7%
         Industrial construction                           5.7%                          6.5%                         6.6%                      7.5%
         Institutional construction                        9.4%                          10.3%                       10.6%                     11.7%
         Residential construction                         45.3%                          46.4%                       46.3%                     45.8%
         Overall                                         100.0%                      100.0%                         100.0%                    100.0%
        Source: World Market Intelligence analysis                                                                    / © World Market Intelligence



         Table 5:        France Overall Construction Market (US$ mn), By Project Type, 2004-09
                                                                                                                                   CAGR        CAGR
         Category                            2004           2005          2006            2007           2008          2009       2004-08     2004-09
         Commercial construction         33,947.1       36,003.3       36,845.8      37,737.7      36,086.1        37,550.7          1.5%       2.0%
         Infrastructure construction     46,848.8       50,168.2       56,556.1      59,325.3      57,279.0        59,892.0          5.2%       5.0%
         Industrial construction         11,602.5       13,219.2       14,533.4      15,990.7      16,426.7        17,716.8          9.1%       8.8%
         Institutional construction      19,157.3       21,653.4       23,617.0      25,779.0      26,271.5        28,222.1          8.2%       8.1%
         Residential construction        92,377.6       99,742.1    1,13,568.5     1,21,153.1    1,17,942.9      1,23,832.9          6.3%       6.0%
         Overall                       2,03,933.3      2,20,786.3   2,45,120.8     2,59,985.8    2,54,006.1      2,67,214.4       5.6%          5.6%
        Source: World Market Intelligence analysis                                                                    / © World Market Intelligence



         Table 6:        France Overall Construction Market Forecast (US$ mn), By Project Type, 2008-2014
                                                                                                                                               CAGR
         Category                              2009            2010               2011           2012              2013            2014       2009-14
         Commercial construction           37,550.7         38,810.3        40,030.8          41,304.5          42,613.7       43,980.2         3.2%
         Infrastructure construction       59,892.0         62,200.3        64,466.6          66,839.5          69,291.6       71,859.3         3.7%
         Industrial construction           17,716.8         18,978.9        20,289.7          21,698.9          23,203.2       24,820.6         7.0%
         Institutional construction        28,222.1         30,112.4        32,064.0          34,154.6          36,377.0       38,758.0         6.6%
         Residential construction         1,23,832.9      1,29,137.1      1,34,395.3        1,39,918.1      1,45,650.4        1,51,671.9        4.1%
         Overall                         2,67,214.4       2,79,239.1      2,91,246.4        3,03,915.6      3,17,135.9    3,31,089.9           4.4%
        Source: World Market Intelligence analysis                                                                   / © World Market Intelligence




The Future of Construction in France                                                                                             Published March 2010

© World Market Intelligence. This report is a licensed product and is not to be photocopied                                                  Page 16
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3.3 Commercial construction

        The commercial construction market is defined as the construction of projects as office buildings (public- and
        private-sector), shopping centers, sports complexes, and hotels.


3.3.1     Commercial construction overview

          The French commercial construction market is estimated to be worth €25.5 billion (US$37.5 billion) for the
          year 2009. Office buildings construction is the leading sector. Among the categories in commercial
          construction, office building sector has seen significant growth in 2008 despite the recession: new office
          space authorizations have gone up in 2008. However, recreation-related segments such as leisure and
          hospitality were severely hurt due to low spending from local authorities.

          Retail buildings recorded notable growth over the historical period (2004-2009), at a CAGR of 4.2%. Even
          during the forecast period (2009-2014), this sector is expected to drive with almost same growth, at a CAGR
          of 4.5%.

          Other major segments in the commercial construction market, including leisure & hospitality buildings and
          outdoor leisure facilities, are forecast to see overall declines in construction value in the future years (2009-
          2014).


3.3.2     Commercial construction market data

        The French commercial construction market was valued at €24.5 billion (US$36.1 billion) in 2008, a decline of -
        4.4% on 2007. The market achieved a compounded annual growth rate (CAGR) of 1.5% over the period 2004-
        2008.

        According to WMI, the French commercial construction market is expected to be valued at €29.9 billion
        (US$44.0 billion) in 2014, compared to an estimated value of €25.5 billion (US$37.6 billion) in 2009. The market
        is expected to achieve a CAGR of 3.2% over the period 2009-2014.

        The leading segment in French commercial construction market was office buildings with €11.5 billion (US$16.9
        billion) of revenues in 2008, accounting for 46.8% of the overall commercial construction market. The second-
        largest segment was retail buildings, which accounted for a value of €5.9 billion (US$8.6 billion) in 2008.
        Leisure & hospitality buildings, which accounted for €3.5 billion (US$5.2 billion) in 2008, was the third-largest
        commercial construction segment.

        For 2009, WMI estimates that the corresponding figures will be €12.3 billion (US$18.1 billion) for office
        buildings, €6.2 billion (US$9.1 billion) for retail buildings, €3.5 billion (US$5.1 billion) for leisure & hospitality
        buildings.

        Office buildings was the fastest growing segment in the French commercial construction market, with a CAGR
        of 11.6% over the period 2004-2008, followed by retail buildings (CAGR of 4.2%), and outdoor leisure facilities
        (negative CAGR of -6.8%) over the same period.




The Future of Construction in France                                                                          Published March 2010

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       According to WMI, the office buildings is expected to be the fastest growing segment in the French commercial
       construction market, with a CAGR of 5.9% over the period 2009-2014, followed by retail buildings (CAGR of
       4.1%), and leisure & hospitality buildings (negative CAGR of -2.2%) over the same period.


         Figure 3: France Commercial Construction Market & Market Forecast (€ bn), By Project Type, 2004-14




        Source: World Market Intelligence analysis                                            / © World Market Intelligence


       In growth terms, for the overall commercial construction market, the leading segment with share 46.8% - office
       buildings, witnessed the highest CAGR growth of 10.7% over the period 2004-09, and is expected to maintain
       the highest CAGR of 5.9% in the forecasted period ( 2009-14).


         Figure 4: France Commercial Construction Market Dynamics, By Project Type, 2004-14




        Source: World Market Intelligence analysis                                            / © World Market Intelligence


       The following tables provide detailed data on overall France construction market historic and forecast values,
       growth and share by project type, presented in € and in US$ at constant 2008 exchange rates:




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         Table 7:           France Commercial Construction Market (€ mn), By Project Type, 2004-09
                                                                                                                                    CAGR        CAGR
         Category                                2004         2005          2006             2007           2008          2009     2004-08     2004-09
         Leisure & hospitality buildings      5,579.9      5,259.0        4,726.0          4,219.3     3,531.6         3,497.0      -10.8%       -8.9%
         Office buildings                     7,400.8      8,640.7        9,695.3      10,805.7       11,473.4        12,307.0      11.6%        10.7%
         Outdoor leisure facilities           2,871.5      2,904.1        2,808.2          2,697.6     2,164.5         2,121.1       -6.8%       -5.9%
         Retail buildings                     4,963.4      5,429.0        5,694.1          5,932.5     5,862.2         6,179.4        4.2%        4.5%
         Other commercial construction        2,256.6      2,237.0        2,118.7          1,993.5     1,494.3         1,416.9       -9.8%       -8.9%
         Overall                            23,072.3      24,469.8       25,042.3      25,648.5       24,526.0        25,521.4       1.5%          2.0%
        Source: World Market Intelligence analysis                                                                       / © World Market Intelligence



         Table 8:           France Commercial Construction Market Forecast (€ mn), By Project Type, 2008-2014
                                                                                                                                                CAGR
         Category                                 2009            2010              2011             2012             2013          2014       2009-14
         Leisure & hospitality buildings        3,497.0        3,434.7         3,361.9           3,287.3            3,209.8       3,131.3        -2.2%
         Office buildings                     12,307.0        13,088.7       13,869.6           14,680.7           15,515.4      16,381.7         5.9%
         Outdoor leisure facilities             2,121.1        2,062.0         1,997.7           1,933.5            1,868.8       1,804.7        -3.2%
         Retail buildings                       6,179.4        6,459.5         6,728.6           7,001.3            7,274.4       7,551.1         4.1%
         Other commercial construction          1,416.9        1,332.7         1,249.3           1,170.0            1,094.2       1,022.4        -6.3%
         Overall                             25,521.4         26,377.5       27,207.0           28,072.7           28,962.5     29,891.2           3.2%
        Source: World Market Intelligence analysis                                                                       / © World Market Intelligence



         Table 9:           France Commercial Construction Market Segmentation (%), By Project Type, 2004-2014
         Category                                             2004                           2008                         2009                    2014
         Leisure & hospitality buildings                     24.2%                         14.4%                        13.7%                    10.5%
         Office buildings                                    32.1%                         46.8%                        48.2%                    54.8%
         Outdoor leisure facilities                          12.4%                           8.8%                        8.3%                     6.0%
         Retail buildings                                    21.5%                         23.9%                        24.2%                    25.3%
         Other commercial construction                        9.8%                           6.1%                        5.6%                     3.4%
         Overall                                           100.0%                          100.0%                      100.0%                    100.0%
        Source: World Market Intelligence analysis                                                                       / © World Market Intelligence




The Future of Construction in France                                                                                              Published March 2010

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         Table 10:          France Commercial Construction Market (US$ mn), By Project Type, 2004-09
                                                                                                                                    CAGR        CAGR
         Category                                2004         2005          2006             2007           2008          2009     2004-08     2004-09
         Leisure & hospitality buildings      8,209.9      7,737.7        6,953.5          6,208.0     5,196.2         5,145.3      -10.8%       -8.9%
         Office buildings                    10,889.1     12,713.5       14,265.1      15,898.8       16,881.2        18,107.7      11.6%        10.7%
         Outdoor leisure facilities           4,225.0      4,272.9        4,131.8          3,969.0     3,184.8         3,120.9       -6.8%       -5.9%
         Retail buildings                     7,302.9      7,987.8        8,378.0          8,728.8     8,625.2         9,092.0        4.2%        4.5%
         Other commercial construction        3,320.3      3,291.4        3,117.3          2,933.1     2,198.7         2,084.7       -9.8%       -8.9%
         Overall                            33,947.1      36,003.3       36,845.8      37,737.7       36,086.1        37,550.7       1.5%          2.0%
        Source: World Market Intelligence analysis                                                                       / © World Market Intelligence



         Table 11:          France Commercial Construction Market Forecast (US$ mn), By Project Type, 2008-2014
                                                                                                                                                CAGR
         Category                                 2009           2010               2011             2012             2013          2014       2009-14
         Leisure & hospitality buildings        5,145.3        5,053.5         4,946.4           4,836.7            4,722.7       4,607.3        -2.2%
         Office buildings                     18,107.7        19,257.9       20,406.9           21,600.2           22,828.4      24,103.0         5.9%
         Outdoor leisure facilities             3,120.9        3,033.8         2,939.3           2,844.8            2,749.6       2,655.3        -3.2%
         Retail buildings                       9,092.0        9,504.2         9,900.0          10,301.4           10,703.1      11,110.3         4.1%
         Other commercial construction          2,084.7        1,960.9         1,838.2           1,721.4            1,609.9       1,504.3        -6.3%
         Overall                             37,550.7         38,810.3       40,030.8           41,304.5           42,613.7     43,980.2           3.2%
        Source: World Market Intelligence analysis                                                                       / © World Market Intelligence




The Future of Construction in France                                                                                              Published March 2010

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3.4 Infrastructure construction

        The infrastructure construction market is defined as the construction of heavy infrastructure projects, including
        the highways, bridges, tunnels, water lines, sewer lines, pipelines, power and communication transmission
        lines., athletic fields, dams, dikes, docks, drainage projects, golf courses, harbors, parks, reservoirs, canals,
        sewage treatment plants, water treatment plants, subways, and other mass transit projects.


3.4.1     Infrastructure construction overview

          The French infrastructure construction market is estimated to be worth €40.7 billion (US$60.0 billion) for the
          year 2009. „Other infrastructure projects‟ were the leading contributor to this segment with 40.0% of the
          construction value in 2008. The sector grew at a robust 9.3% during the period 2004-08.

          Rail infrastructure construction is expected to grow in 2009. €76.0 million (US$111.8 million) will be spent on
          the new LGV Est high speed railway line between Baudrecourt and Vendenheim in France, which is a part of
          €500.0 million (US$735.6 million) allocation towards Trans-European Transport Network in The European
          stimulus plan.

          Most of the segments in infrastructure construction witnessed decline in 2008. Sewage infrastructure projects
          witnessed highest decline of 17.0% in 2008, followed by water and rail infrastructure.

          Infrastructure construction is expected to grow in 2010 across Western Europe due to stimulus packages and
          economic necessity.


3.4.2     Infrastructure construction market data

        The French infrastructure construction market was valued at €38.9 billion (US$57.3 billion) in 2008, a decline
        of -3.4% on 2007. The market achieved a compounded annual growth rate (CAGR) of 5.2% over the period
        2004-2008.

        According to WMI, the French infrastructure construction market is expected to be valued at €48.8 billion
        (US$71.9 billion) in 2014, compared to an estimated value of €40.7 billion (US$59.9 billion) in 2009. The market
        is expected to achieve a CAGR of 3.7% over the period 2009-2014.

        The leading segment in French infrastructure construction market was other infrastructure projects with €15.4
        billion (US$22.7 billion) of revenues in 2008, accounting for 39.7% of the overall infrastructure construction
        market. The second-largest segment was road infrastructure, which accounted for a value of €13.4 billion
        (US$19.7 billion) in 2008. Sewage infrastructure, which accounted for €4.4 billion (US$6.5 billion) in 2008, was
        the third-largest infrastructure construction segment.

        For 2009, WMI estimates that the corresponding figures will be €16.5 billion (US$24.3 billion) for other
        infrastructure projects, €14.2 billion (US$20.9 billion) for road infrastructure, €4.2 billion (US$6.2 billion) for
        sewage infrastructure.




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CONSTRUCTION MARKET



       Road infrastructure was the fastest growing segment in the French infrastructure construction market, with a
       CAGR of 12.0% over the period 2004-2008, followed by other infrastructure projects (CAGR of 9.3%), and
       energy & communications infrastructure (CAGR of 8.8%) over the same period.

       According to WMI, the other infrastructure projects is expected to be the fastest growing segment in the French
       infrastructure construction market, with a CAGR of 5.7% over the period 2009-2014, followed by road
       infrastructure (CAGR of 4.9%), and energy & communications infrastructure (CAGR of 3.4%) over the same
       period.


         Figure 5: France Infrastructure Construction Market & Market Forecast (€ bn), By Project Type, 2004-
                         14




        Source: World Market Intelligence analysis                                            / © World Market Intelligence


       In growth terms, for the overall infrastructure construction market, the leading segment with share 39.7% - other
       infrastructure projects, witnessed CAGR growth of 8.8% over the period 2004-09, and is expected to
       experience the highest CAGR of 5.7% over the period 2009-14. Road infrastructure witnessed the highest
       CAGR of 10.8% over the period 2004-09.




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CONSTRUCTION MARKET




         Figure 6: France Infrastructure Construction Market Dynamics, By Project Type, 2004-14




        Source: World Market Intelligence analysis                                                            / © World Market Intelligence


       The following tables provide detailed data on overall France construction market historic and forecast values,
       growth and share by project type, presented in € and in US$ at constant 2008 exchange rates:


         Table 12:       France Infrastructure Construction Market (€ mn), By Project Type, 2004-09
                                                                                                                         CAGR        CAGR
         Category                                  2004         2005         2006         2007      2008       2009     2004-08     2004-09
         Energy & communications                2,322.6      2,618.5      3,036.0      3,330.3    3,252.5    3,404.4       8.8%        7.9%
         infrastructure
         Road infrastructure                    8,515.7      9,855.8     11,196.9     13,309.6   13,381.0   14,210.5      12.0%       10.8%
         Rail infrastructure                      491.9        498.5        566.4        501.0     434.5      428.5       -3.1%       -2.7%
         Water infrastructure                   4,011.9      3,518.0      3,355.8      2,744.3    2,020.4    1,896.6     -15.8%      -13.9%
         Sewage infrastructure                  5,661.4      5,519.1      5,815.8      5,301.5    4,401.5    4,247.7      -6.1%       -5.6%
         Other infrastructure projects         10,837.4     12,087.1     14,467.6     15,133.8   15,440.0   16,518.0       9.3%        8.8%
         Overall                              31,840.9      34,097.0     38,438.5     40,320.6   38,929.8   40,705.7      5.2%          5.0%
        Source: World Market Intelligence analysis                                                            / © World Market Intelligence




The Future of Construction in France                                                                                   Published March 2010

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         Table 13:       France Infrastructure Construction Market Forecast (€ mn), By Project Type, 2009-2014
                                                                                                                                                  CAGR
         Category                                         2009          2010              2011           2012             2013          2014     2009-14
         Energy & communications infrastructure         3,404.4       3,533.7       3,655.3          3,777.4            3,898.4       4,0
				
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