“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.
Several key figures illustrate the positive results of the 2008 Excellence plan:
- Cost reduction: €400M between 2006 and 2008, well beyond the €340M initially forecast in the plan.
- Sales figures: €19bn over the last 12 months in 2008, versus €16bn in 2005.
- Operational margin: 19.2% over the last 12 months in 2008, versus 14.8% in 2005.
- Net result per share: €10.27 over the last 12 months of 2008, versus €6.39 in 2005.
- Free cash flow: €2bn in the last 12 months of 2008, versus €0.9bn in 2005.
Furthermore, in 2009, our Board of Directors will make the best decision for all our shareholders in terms of dividends concerning the 2008 financial year."
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, finalized on January 2008, 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."
What actions will be taken to face current economic difficulties?
"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 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 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."
