CHAIRMAN'S MESSAGE
| “We have taken a major step” |
| |
|
|
 |
2006 was certainly the best year since our Group was set up. We are very satisfied and also very proud because, thanks to the involvement and dedication of all our employees, Geodis has registered 5.3% growth in revenues to €3.8 billion, thereby achieving its profitability objectives one year ahead of guidance.
|
|
In 2006, operating profit was up by over 25% to €106.4 million.
At the same time, we continued our efforts to reduce debt, and succeeded in bringing it down it to €157.3 million. Geodis has thus become a very financially sound business.
This performance has been recognised by the financial markets, since the Geodis share price increased by 52% in 2006, and by 310% over the last three years.
The 11,000 employees who are members of the FCPE may especially congratulate themselves as they hold 5.43% of the share capital through the Group Savings Plan. It is a fair reward for their loyalty and commitment for the last 6 years of the Group’s development. At the operating level, we have reaffirmed our position as a global and international logistics operator, which is both multi-sector and multi-business, while continuing the development of two new promising businesses, which are reverse logistics and major industrial projects.
|
|
|
A major strategic event in 2006: the acquisition of the freight management activities of TNT
|
With the acquisition of the freight management activities of TNT, we have taken a major step. It is in fact a decisive step in the Group’s growth as it puts us
in 5th place in Europe and 10th place worldwide in air and sea freight forwarding.
|
 |
|
Geodis has thus invested in the most dynamic sector of transport and logistics consolidating its global offering with the integration of a sound and profitable business that enables it to benefit from a closed global network. We are also acquiring a brand with a strong reputation in this area: Wilson.
That is why our freight forwarding business will be called Geodis Wilson worldwide. In addition, we are fully complementary, in terms of businesses, geographical areas and customer base. Our positions have thus been strengthened in Scandinavia as well as the United States, South America, Asia and Australia. With this major investment, Geodis now has the means at its disposal to accelerate its profitable growth due to the significant operational synergies to be achieved, which will be driven by a management fully committed to this acquisition. One of our priority challenges for 2007 is to successfully integrate Geodis Wilson, by multiplying the value added by every entity, in order to make the group even more firmly customer focused.
|
Make the group even more firmly customer focused
|
 |
On the basis of a sound and solid domestic and European business, we are positioned to provide a global offering, which is inevitably international in scope. To be able to support our customers in the markets they are developing is essential for all major logistics players. The international dimension is the dimension of our customers. We are, for them, a European operator with a worldwide dimension.
|
The use of outsourcing by large global businesses for their logistics is a strong trend. All sectors are concerned, from mass marketing to health industries and including luxury products, automobile and chemicals. For our industrial and
distribution customers, it has become necessary for their own growth to focus on their core business and delegate to a player known for its expertise, all their logistics considered by their own customers as a natural part of their production process. Another strong trend, globalization and acceleration of international trade flows. Increasingly, industrialists are relocating their production centres and Geodis supports this movement. Lastly, our customers are seeking global solutions that combine the business of networks with the business of solutions. Geodis today proposes an integrated logistics offering, controlling networks and solutions:
it can act as a single partner, anywhere in the world, for customers who increasingly seek a global response. At the same time, Geodis maintains a reliable partnership of a human scale that is flexible and responsive – adapting to the specific features of businesses that have their own needs – and close to its customers.
|
|
Main challenges for the coming years
The Group has set itself a new path for 2009, with three priorities:
– confirm its leadership position in France in distribution, by focusing on quality, service, price and flexibility, and by expanding its European networks;
– continue its focused development of a high performance offering in contract logistics;
– succeed in merging Wilson and Geodis to expand in freight forwarding and industrial projects. The new organisation in operating divisions, which will be implemented in 2007, should enable us to achieve these objectives.
I am convinced that our Group has the skills and resources required to meet these challenges and impose itself as the benchmark logistics partner in its markets.
|
Pierre Blayau,
Chairman and CEO of Geodis
|
|