“Our shareholders are at the center of our priorities”. Bruno Lafont, Chairman and Chief Executive Officer of the Group, explains.
How do you describe the care for your shareholders?
"The Excellence 2008 strategic plan, which we launched in June 2006, aims to extract and develop all of the Group's potential, and create the greatest possible value for our shareholders. Our strategic plan is expressed through ambitious goals:
- increase net earnings per share by an average of 10% per year for the period 2006-2008,
- increase return on capital employed to 10% by 2008.
In mid 2007, we announced that we would exceed these targets.
We also want our dividends to grow and reflect improvements in our results. It was on that basis that, in May 2007, we increased the dividend per share by 18% to 3 euros per share."
Does your investment strategy take into account the return for shareholders?
"Our investment decisions are guided by the need to create value for the company and for our shareholders.
Our internal growth program, which aims to construct 45 million tons of new cement production capacity, primarily in emerging markets, is extremely profitable. The acquisition of Orascom Cement, announced on December 10, 2007, marks a major acceleration in our strategy of profitable growth. It will have a positive impact on net earnings per share in year one and the return on capital employed will be greater than cost of capital from the first year.
More recently, during the announcement of the third quarter results in November 2008, we presented the key actions to respond to the deteriorating business environment and the consequences of the financial crisis: our priority in the short term is to focus on free cash flow generation, cost reductions (€400M for 2009-2011, including €120M just for 2009) and deleveraging.
I am confident we will continue to deliver on our commitments and to achieve the best performance of the sector, in the best interests of our shareholders."
How do you communicate with your shareholders?
"We have developed a standard set of communication tools, including a shareholders' letter, a guide for individual shareholders, the annual report, regional shareholders' meetings, roadshows, and Crescendo, our twice yearly magazine. We also organize major events such as the annual shareholders' meeting and meetings with the shareholders' consultative committee.
That said, we want to build even stronger relationships with our shareholders. We want to meet them and contact them more frequently, inform them of important Group announcements in real time, before they're published in the press, send them Crescendo and make it easier for them to attend relevant meetings. We hope they will register on our internet site for these services, which are designed with their needs in mind.
The new Club reserved exclusively for shareholders is also a unique way of tightening the links which bind us and strengthening our knowledge of one another. Through a range of services and a program of tours and meetings, we will be able to share even more with our shareholders.
I sincerely hope that these efforts will bring us closer to our shareholders."
