Vinci SA · EURONEXT:DG

Vinci SA — Q1 2015 Earnings Presentation

52 slides from Vinci SA's earnings presentation, May 2015

  1. Slide 1: 1st Quarter 2015 highlights

    1st Quarter 2015 highlights May 2015 Queen Elizabeth Olympic Park

  2. Slide 2: Disclaimer

    Disclaimer This presentation may contain forward-looking objectives and statements about VINCI’s financial situation, operating results, business activities and expansion strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors

  3. Slide 3: 1st quarter 2015 highlights

    1st quarter 2015 highlights A mixed beginning to the year Revenue growth -5.3 % Toll road traffic +2.0% Airport passenger traffic +11.8% Order book at 31 March 2015 € 29 bn 3

  4. Slide 4: 1st quarter 2015 consolidated revenue

    1st quarter 2015 consolidated revenue Δ∆ 15/14 Euros in millions Q1 2015 Q1 2014 Actual Like-for-like Concessions 1,201 1,311 -8.3% +3.0% VINCI Autoroutes 1,004 979 +2.5% +2.5% VINCI Airports 175 155 +12.6% +9.9% VINCI Park 0 149 na Na Other Concessions 23 27 -15.0% -16.2% Contracting 6,961 7,309 -4

  5. Slide 5: 1st quarter 2015 consolidated revenue

    1st quarter 2015 consolidated revenue Concessions Contracting Real Estate & eliminations -8.3% -4.8% Scope Organic Scope Organic 8,624 & FX growth & FX growth 8,170 -11.4% +3.0% +5.1% -9.9% -149 +39 +376 -724 +4 Revenue change: -5.3% Organic : -8% Scope & FX: +2.8% Q1 2014 Q1 2015 Change 15/14 Organ

  6. Slide 6: Concessions overview in Q1 2015

    Concessions overview in Q1 2015 Revenue: €1.2 bn (+3.0% lfl *) Revenue €1.0 bn +2.5% lfl Revenue €0.2 bn +9.9% lfl Toll Revenue €0.9 bn +2.7% +11.8% Traffic Traffic +2.0% Portugal +14.5% Strong growth LV +1.8% Cambodia +12.1% HV +2.6% France Stable +0.1% • Traffic growth for LVs & HVs supported by lower fuel

  7. Slide 7: Contracting overview in Q1 2015

    Contracting overview in Q1 2015 Revenue: €6.9 bn (-4.8% relative to a high base for comparison ) Revenue €2.3 bn +8.4% Revenue €1.4 bn -9.1% Revenue €3.3 bn -10.6% Int.: France: Int.: 36% France: Int.: France: 46% €1.0bn 44% 56% €1.3bn €0.5bn €0.9bn €1.5bn €1.8bn 64% 54% +21.9% -0.3% +3.4% -14.9% -8

  8. Slide 8: Contracting order book

    Contracting order book Order book remains at a high level Breakdown by geographical area Breakdown by business line Δ∆ Mar.15/ Δ∆ Mar.15/ Dec.14 Dec.14 excl. SEA 29.2 +4% +5% 27.9 29.2 +4% 27.9 6.6 +5% 6.3 14.0 14.4 +3% +4% 5.5 5.8 +5% 7.5 8.2 +9% 16.1 16.7 +4% 6.5 6.6 +2% Dec 14 Mar 15 Dec 14 Mar 1

  9. Slide 9: Financial policy

    Financial policy Optimise average gross debt maturity Diversify financing sources 2015-2021 maturity schedule (in € bn): Gross debt by lender category: 2.6 Bonds 11% 2.1 Banks 17% 1.9 1.6 1.6 1.5 CNA 5% 67% EIB 0.9 H2 Q2 Optimise financing cost 2015 2016 2017 2018 2019 2020 2021 Reduction in gross deb

  10. Slide 10: 2015 outlook

    2015 outlook Concessions Encouraging start to the year with positive traffic growth rates for Globally slightly both VINCI Autoroutes and VINCI Airports. down Contracting Weight of Revenue Revenue posted Expected decline in France could be close to 10% while order intake outside of could bottom toward

  11. Slide 11: Strategic priorities

    Strategic priorities VINCI’s priorities for sustainable, profitable growth Special focus on growth Expand Extract more value activities international footprint in from our current all business lines positions VINCI Airports ü Take advantage of worldwide ü Build on local knowledge & ü Develop syner

  12. Slide 12: Appendixes

    Appendixes Structure and shareholder base Business line profiles Financial data

  13. Slide 13: Structure and shareholder base

    Structure and shareholder base

  14. Slide 14: VINCI – A global leader in concessions and contracting

    VINCI – A global leader in concessions and contracting 185,300 €38.7 bn 3,000 €27 bn employees 2014 Group revenue business units market cap. at end 2014 114,000 >110 260,000 61% employee shareholders countries where VINCI operates worksites shareholders outside France Concessions Contracting 2014 re

  15. Slide 15: Shareholder base at December 2014

    Shareholder base at 31 December 2014 France 10.2% 16.4% Individual investors United Kingdom 9.3% 15.9% Employees Institutional Rest of Europe investors 9.7% 69.7% Qatar Holding 5.3% United States 20.5% 6.0% 6.7% Treasury shares Rest of World Over 500 institutional investors Approximately 203,000 ind

  16. Slide 16: Business line profiles

    VINCI “~ Business line profiles

  17. Slide 17: Concessions

    VINCI “~ Concessions

  18. Slide 18: Concessions Profile

    Concessions Profile 2014 Key figures 2014 revenue by geographical area Revenue 5,823 Portugal 9% France 5,101 RoW 4% France 87% International 722 EBITDA 3,823 as % of revenue 65.6% €5.8 bn Net income 1,779* Capital employed 26,474 Free Cash Flow 1,597 OTHER CONCESSIONS Motorways operator in France Reg

  19. Slide 19: VINCI Autoroutes

    VINCI “~ VINCI a” AUTOROUTES

  20. Slide 20: VINCI Autoroutes

    VINCI Autoroutes Europe’s leading motorway concession operator 4,386 km under concession 2014 Key figures (€ in millions) Revenue 4,755 ~50% EBITDA 3,390 of conceded network in France as % of revenue 71.3% Net income 917 Capital employed 22,270 Free Cash Flow 1,468 >35% Headcount at 31 December 2014

  21. Slide 21: Concessions

    VINCI “~ CONCESSIONS VINCI a”

  22. Slide 22: VINCI Airports

    VINCI Airports A key strategic focus for VINCI 23 airports managed A fast-growing, profitable business Revenue (in €m) 10 France 6.0 million pax 10 Portugal 35.1 million pax 3 Cambodia 5.7 million pax 170 629 717 2012 2013 PROFORMA 2014 Acquisition of 46.8 million 48% passengers in 2014 Ebitda margin

  23. Slide 23: VINCI Airports

    VINCI Airports VINCI Airports revenue breakdown by activity (2014): 4 1 Aviation Q Most of revenues are regulated: passenger & landing 1 Security/PRM fees 13% Aviation Drivers: passenger traffic, ATMs*, regulatory framework 46% Ground Handling 3 2 Non-Aviation Q Retail, real estate, car parks, car r

  24. Slide 24: VINCI Airports

    VINCI Airports End of VINCI Traffic Consoli- Country Name Description concession share risk dation* VINCI Airports Cambodia Phnom Penh Concession Siem Reap Concession 2014: 2040 70 % Yes FC 5,728 KPAX Sihanoukville Concession France Quimper Cornouaille DSP (2014: 100 KPAX) 2016 100% Yes FC Poitiers-Bi

  25. Slide 25: Other infrastructures conceded or operated in PPPs

    Other infrastructures conceded or operated in PPPs End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Road infrastructure Germany Motorway A4 Horselberg 45 km 2037 50% yes EM Germany Motorway A9 Thuringia/ 46.5 km 2031 50% no EM Bavarian border Germany A5 Malsch–

  26. Slide 26: Other infrastructures conceded or operated in PPPs

    Other infrastructures conceded or operated in PPPs End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Bridges and tunnels France Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM France Tunnel Prado Sud Road tunnel, Marseille 2055 58.5% yes EM Greece B

  27. Slide 27: Conceded or PPP infrastructure under construction

    Conceded or PPP infrastructure under construction End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Ground-train France Rail GSM-Rail communication system 2025 30% no EM on 14,000 km of track Operation and Bus TCSP Martinique maintenance of bus 2035 100% no FC r

  28. Slide 28: Contracting

    VINCI “~ Contracting

  29. Slide 29: Contracting Profile

    Contracting Profile 2014 Key figures 2014 revenue by geographical area Revenue 32,916 Germany 8% France 18,842 UK 8% Central and Eastern France 57% International 14,074 European 5% EBIT 1,148 RoE 6% as % of revenue 3.5% €32.9 bn Africa 5% Net income 588 Net financial surplus 1,606 Americas 6% RoW 5% Or

  30. Slide 30: VINCI Energies

    VINCI Energies 2014 Key figures 1,500 2014 revenue by geographical area (€ in millions) Business Units Germany 18% Revenue 9,309 France 5,258 France 56% Switzerland 4% International 4,051 Belgium 3% EBIT 519 Netherlands 3% €9.3 bn as % of revenue 5.6% Rest of Europe 8% Net income 330 Africa 3% Net fin

  31. Slide 31: Eurovia

    Eurovia 2014 Key figures 400 2014 revenue by geographical area Business (€ in millions) Germany 9% Units Revenue 8,188 UK 7% France 60% France 4,886 Central and Eastern International 3,302 Europe 10% EBIT 249 Rest of Europe 2% €8.2 bn as % of revenue 3.0% Canada 6% Net income 73 Rest of the Americas

  32. Slide 32: VINCI Construction

    VINCI Construction 2014 revenue 2014 Key figures 1,000 by geographical area (€ in millions) Business UK 11% Central and Eastern Revenue 15,419 Units Europe 5% France 8,698 Rest of Europe 3% France 56% International 6,721 Africa 9% EBIT 380 €15.4 bn as % of revenue 2.5% Americas 6% Net income 186 Net

  33. Slide 33: Exposure to traditional French construction and roadwork activities

    Exposure to traditional French construction and roadwork activities (2014) 2014 Group revenue breakdown VINCI Energies Rail works and other: €0.6 bn France Traditional roadworks: €4.3 bn 5.3 Eurovia 4.9 France Total: €11.3 bn 29% Contracting outside 14.1 €38.7 bn 8.7 VINCI of total Group revenue Fra

  34. Slide 34: Detailed consolidated financial statements

    Detailed consolidated financial statements

  35. Slide 35: Income statement

    Income statement (in € millions) 2014 2013 Δ∆ 14/13 Operating income from ordinary activities (EBIT) 3,642 3,670 (0.8%) % of revenue 9.4% 9.1% - share-based payment expense (IFRS 2) (102) (86) - operating income of equity-accounted cos. & other 96 93 Recurring operating income 3,637 3,677 (1.1%) Non

  36. Slide 36: Consolidated revenue

    Consolidated revenue Δ∆ 14/13 € in millions 2014 2013 Actual Comparable Concessions 5,823 5,616 +3.7% +4.5% VINCI Autoroutes 4,755 4,596 +3.5% +3.5% VINCI Airports 717 315 +127.4% +13.8% VINCI Park** 259 607 (57.3%) +3.1% Other Concessions 92 98 (6.2%) (6.2%) Contracting 32,916 34,636 (5.0%) (3.2%)

  37. Slide 37: Consolidated revenue – France

    Consolidated revenue – France Δ∆ 14/13 € in millions 2014 2013 Actual Comparable Concessions 5,101 5,191 (1.7%) +3.2% VINCI Autoroutes 4,736 4,581 +3.4% +3.4% VINCI Airports 105 99 +6.0% +6.0% VINCI Park** 180 423 (57.4%) +3.9% Other Concessions 81 88 (7.7%) (7.7%) Contracting 18,842 19,806 (4.9%) (

  38. Slide 38: Consolidated revenue – international

    Consolidated revenue – international Δ∆ 14/13 € in millions 2014 2013 Actual Comparable Concessions 722 426 +69.5% +13.8% VINCI Autoroutes 20 15 +28.4% +34.3% VINCI Airports 612 217 ns +15.3% VINCI Park** 78 183 (57.2%) +1.2% Other Concessions 11 11 +5.9% +5.9% Contracting 14,074 14,830 (5.1%) (1.1%

  39. Slide 39: Operating income from ordinary activities (EBIT)

    Operating income from ordinary activities (EBIT) GROUP CONCESSIONS CONTRACTING €3,642 mn Stable €2,428 mn +12.6% Margin: 9.4% +30 bp €1,148 mn -19.6% Margin: 41.7% +330 bp Margin: 3.5% -60 bp VINCI VINCI VINCI Park VINCI VINCI Autoroutes Airports & other Energies Eurovia Construction concessions 2,1

  40. Slide 40: EBIT by business line

    EBIT - operating income from ordinary activities by business line % of % of € in millions 2014 2013 Δ∆ 14/13 revenue* revenue* Concessions 2,428 41.7% 2,155 38.4 % + 12.6% VINCI Autoroutes 2,149 45.2% 2,031 44.2 % + 5.8% VINCI Airports 231 32.2% 65 20,5% + 257.3% VINCI Park** 86 33.2% 114 18,7% (24.

  41. Slide 41: Financial income/(expense)

    Financial income/(expense) € in millions 2014 2013 Δ∆ 14/13 Cost of net financial debt (616) (598) (18) Other financial income and expenses (61) (52) (9) Borrowing costs capitalised 17 21 (4) Discounting retirement obligations and provisions (80) (63) (17) Foreign exchange gains and losses 2 (10) +11

  42. Slide 42: Net income attributable to owners of the parent by business line

    Net income attributable to owners of the parent by business line € in millions 2014 % of rev* 2013 % of rev* Δ∆ 14/13 Concessions 1,779 30.5% 934 16.6 % + 90.4% VINCI Autoroutes 917 19.3% 798 17.4 % + 15.0% VINCI Airports 154 21.5% 151 47.8% + 2.4% VINCI Park** 45 17.3% 69 11.4% (35.5%) Other Conces

  43. Slide 43: EBITDA

    EBITDA* % of % of € in millions 2014 2013 Δ∆ 14/13 revenue** revenue** Concessions 3,823 65.6% 3,533 62.9 % + 8.2% VINCI Autoroutes 3,390 71.3% 3,231 70.3 % + 4.9% ASF/Escota 2,428 71.0% 2,316 70.0% +4.8% Cofiroute 927 72.2% 886 71.4% +4.7% VINCI Airports 342 47.7% 102 32,5% +234.4% VINCI Park*** 93

  44. Slide 44: Cash flow statement (1/2)

    Cash flow statement (1/2) of which: 2014 Concessions Contracting 2013 € in millions Cash flow from operations 5,561 3,823 1,624 5,596 Change in WCR and current provisions (158) 47 (185) 6 Income taxes paid (1,282) (780) (456) (1,408) Net interest paid (586) (654) (43) (605) Dividends received from com

  45. Slide 45: Cash flow statement (2/2)

    Cash flow statement (2/2) € in millions 2014 2013 Free cash flow (after investments) 2,197 2,180 Net financial investments* 585 (3,220) Other financial cash flows (268) (95) Cash flow before movements in share capital 2,515 (1,135) Share capital increases and other operations 441 783 Dividends (1,287) (1,

  46. Slide 46: Operating investments, net

    Operating investments, net € in millions 2014 2013 Δ∆ 14/13 Concessions 63 64 (1) VINCI Autoroutes 12 25 (13) Other Concessions 51 39 +13 Contracting 680 712 (32) VINCI Energies 108 108 (0) Eurovia 218 218 (0) VINCI Construction 354 385 (31) VINCI Immobilier and holdings 1 1 (0) Purchases of PP&E an

  47. Slide 47: Growth investments in concessions and PPPs

    Growth investments in concessions and PPPs € in millions 2014 2013 Δ∆ 14/13 Concessions 806 764 +42 VINCI Autoroutes 684 689 (5) O/w : ASF / Escota 553 553 (0) Cofiroute 130 132 (2) VINCI Airports 59 38 +21 Other Concessions 62 37 +25 Contracting (6) 39 (45) Growth investments in concessions and PPPs

  48. Slide 48: Consolidated balance sheet

    Consolidated balance sheet (in € millions) 31 Dec. 2014 31 Dec. 2013 Non-current assets – concessions 27,691 29,554 Non-current assets – contracting and other 8,838 8,434 WCR, provisions and other current assets & liabilities (5,962) (6,619) Capital employed 30,568 31,369 Equity (14,868) (14,260) No

  49. Slide 49: Net financial debt by business line

    Net financial debt by business line (in € millions) 31 Dec. 2014 31 Dec. 2013 Δ∆ 14/13 Concessions (19,920) (20,010) 90 VINCI Autoroutes (16,807) (15,387) (1,420) VINCI Concessions (3,112) (4,622) 1,510 Contracting 1,606 2,129 (524) Holding cos & VINCI Immobilier 5,033 3,777 1,256 Net financial debt (

  50. Slide 50: Change in net financial debt in 2014

    Change in net financial debt in 2014 (in € billions) +€0.8 bn Dividends (14.1) (1.3) Investments (13.3) Interest (1.4) Capital Taxes paid increases (1.9) Acquisitions Misc. Δ∆ WCR & disposals 0.4 (0.2) 0.3 Share EBITDA buybacks 5.6 (0.8) Free cash flow: €2.2 bn (+0.8%) Contracting Net financial debt at

  51. Slide 51: Maturity of gross financial debt

    Maturity of gross financial debt Average maturity of gross financial debt at end December 2014: 5.2 years (Concessions: 5.8 years) 3 000 Repayment schedule 2 500 at end December 2014 2 000 1 500 1 000 500 0 1H 15 2H 15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2030 ASF Co

  52. Slide 52: IR Contacts

    IR Contacts CONTACTS Alexandra Bournazel Alexandra.bournazel@vinci.com Tel: +33 1 47 16 33 46 52

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