Vinci SA · EURONEXT:DG
Vinci SA — FY2015 Earnings Presentation
76 slides from Vinci SA's earnings presentation, Feb 5, 2016
Slide 1: 2015 full year results
2015 full year results 5 February 2016
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
Slide 3: VINCI Airports enters world's top 5 airport operators
With its 2015 acquisitions of airports in France, Chile, Japan and Dominican Republic, VINCI Airports enters the world’s top 5 airport operators, with a total of 33 airports and more than 100 million passengers managed annually. Kansai international airport , Japan
Slide 4: VINCI Autoroutes Stimulus Plan investment
VINCI Autoroutes operates more than half of France’s motorways under concession and will invest €2bn in the frame of the Stimulus Plan. These additional investments will go towards VINCI Autoroutes’ effort to continuously modernise its network and demonstrate its added value as a service provider. Re
Slide 5: Regina Bypass Project
VINCI Concessions, Eurovia and VINCI Construction are working together on the Regina Bypass Project, which is the first transport infrastructure project to be awarded under a PPP scheme in the province of Saskatchewan. The construction works will last about 4 years. Regina Bypass, Canada (project) 5
Slide 6: VINCI Energies operations in more than 50 countries
VINCI Energies has operations in more than 50 countries and is now a major player in the Information and Communication Technology services, with its recent acquisitions of Imtech ICT and APX Intégration. Cloud infrastructure, Germany
Slide 7: Eurovia - Tours-Bordeaux HSL last rail laid
Eurovia - The last rail of the Tours-Bordeaux HSL has been laid in December 2015, ahead of schedule . Auxance viaduct, Tours-Bordeaux HSL,France 7
Slide 8: VINCI Construction renovation of Ministry building
VINCI Construction is currently working on the renovation of the former Ministry of the Merchant Marine Headquarter building, using digital technologies such as BIM (Building Information Modeling) and aiming for high environmental standards. Ilot Fontenoy-Ségur, Paris 8
Slide 9: Berjaya Central Park complex delivered
VINCI Construction Grands Projets has delivered the first tower of the Berjaya Central Park complex in Malaysia. This 180,000 sq.metres complex will include a nine-storey podium for car parks and two 38-storey towers built on top of the podium. Menara Bangkok Bank Tower, Malaysia 9
Slide 10: 2015 highlights
2015 highlights Xavier Huillard, Chairman and CEO
Slide 11: A solid performance and a record net income in 2015
A solid performance and a record net income in 2015 Stable Group revenue €38.5 bn -0.5% * Improvement of Group EBIT margin 9.8% +60 bp ** Strong increase of Group net income*** €2.1 bn +10.7% +3.0% Concessions Dynamic toll road traffic Strong airport passenger traffic +11.4% Contracting Order book at 31
Slide 12: Concessions in 2015
Concessions in 2015 Revenue: €5.8 bn (+3.9% lfl) EBITDA: €3.9 bn (+5.5%*) EBITDA margin: 67.8% 2015 vs 2014 2015 vs 2014 Revenue €4.9 bn +2.9% lfl Revenue €0.8 bn +11.3% lfl EBITDA €3.5 bn +4.0% EBITDA €0.4 bn +20.2% EBITDA Margin 72.2% +80 bp EBITDA Margin 50.2% +250 bp Traffic change y-o-y FY 2015 FY 2
Slide 13: Extension of the maturity of the concessions portfolio
Extension of the maturity of the concessions portfolio Remaining life (1) of the portfolio (number of years) 27 26 25 24 24 23 22 28 27 28 1 7 7 1 7 1 1 1 3 Extensions due to VINCI Airports development 27 26 Extensions due to VINCI 25 24 23 22 Autoroutes development and 21 20 19 stimulus packages 18
Slide 14: Growing internationalisation of the concessions portfolio
Growing internationalisation of the concessions portfolio Russia Canada Netherlands Poland Japan UK United States Belgium Germany France Slovakia Serbia Portugal Greece Iran Jamaica Cambodia Dominican Rep. Philippines Colombia Peru Existing portfolio Chile Pending financial closing New Zealand Main p
Slide 15: Contracting in 2015
Contracting in 2015 Revenue: €32.6 bn (-1.1%) EBIT: €1.1 bn (-4.2%) EBIT margin: 3.4% 2015 vs 2014 2015 vs 2014 2015 vs 2014 Revenue €10.2 bn +9.4% Revenue €7.9 bn -3.5% Revenue €14.5 bn -6.0% International France International 43% France International France 49% 48% +23.5% 51% -1.5% +3.4% 57% -8.3%
Slide 16: Contracting order intake
Contracting order intake Order intake up by 3% in 2015 thanks to very dynamic Q3 Quarterly breakdown by geographical area (in € bn) Δ∆ FY15/FY14 Breakdown by business lines (in € bn) -11% +16% +1% +3% +3% +8% 30.5 31.4 8.7 8.4 7.7 7.6 7.2 7.6 7.8 7.0 International +10% +6% +9% +18% stable +13% -1% F
Slide 17: 2015 revenue by geographical area
2015 revenue by geographical area 42% of 2015 revenue generated outside France (versus 38% in 2014) France -6% €22.4 bn 58% Central & Eastern Europe +7% €1.9 bn 5% Western Europe (excl. France) €8.1 bn +8% Asia/Middle East/Oceania 21% €2.3 bn +20% Americas +25% 6% €2.4 bn Africa -14% 6% €1.5 bn 4% +
Slide 18: 2015 financial data
2015 financial data Christian Labeyrie, Executive Vice-President and CFO
Slide 19: 2015 consolidated revenue
2015 consolidated revenue (in € millions) Concessions Contracting -0.3% -1.1% 38,703 Organic Scope FX Organic Scope FX 38,518 +3.9% -4.6% +0.4% -6.2% +3.1% +2.0% Revenue change: +0.2% excl. VINCI Park -0.5% actual Organic: -4.3% Scope: +2.0% FX: +1.8% 2014 2015 19
Slide 20: Operating income from ordinary activities (EBIT)
Operating income from ordinary activities (EBIT) Group EBIT: €3,758 m (+5.7% *) EBIT Margin: 9.8% (+60 bp **) Concessions Contracting EBIT: €2,576 m +10.0% * EBIT: €1,100 m -4.2% EBIT Margin: 44.4% +230 bp *** EBIT Margin: 3.4% -10 bp VINCI VINCI VINCI VINCI Autoroutes Airports Eurovia Construction
Slide 21: Income statement
Income statement (in € millions) 2015 2014 Δ∆ 2015/2014 Operating income from ordinary activities (EBIT) 3,758 3,642 +3.2% % of revenue 9.8% 9.4% - share-based payment expense (IFRS 2) (95) (102) - profit/loss of equity-accounted cos. & other 125 96 Recurring operating income 3,788 3,637 +4.2% Non-re
Slide 22: Change in net financial debt during 2015
Change in net financial debt during 2015 (in € billions) Capital EBITDA Share buy-backs increases * (13.3) 5.7 (0.7) (0.1) Investments (12.4) Interest & (1.5) misc. taxes paid 0.1 (1.5) Δ∆ WCR Dividends Acquisitions/ (1.0) 0.3 Disposals (0.4) Free cash flow: €3.0 bn FY 2014: €2.2 bn Contracting Net fin
Slide 23: Consolidated balance sheet
Consolidated balance sheet (in € millions) 31 Dec. 2015 31 Dec. 2014 Non-current assets – concessions 27,559 27,691 Non-current assets – contracting and other 9,121 8,838 WCR, provisions and other current assets & liabilities (6,548) (5,962) Capital employed 30,132 30,568 Equity (15,256) (14,868) No
Slide 24: Financial policy
Financial policy Good spread of gross financial Maintain credit rating and high level of debt maturities over time liquidity 2.6 August 2015: S&P confirms credit rating at 1.9 2.1 A- Outlook Stable 1.6 1.6 1.8 1.5 March 2015: Moody’s confirms credit rating at Baa1 Outlook Stable €4.1 bn net cash manage
Slide 25: 2016 outlook and strategy
2016 outlook and strategy Xavier Huillard, Chairman and CEO
Slide 26: VINCI Autoroutes: toll increases and traffic outlook
VINCI Autoroutes: toll increases and traffic outlook Toll increases applied on 1 February 2016 ASF +1.63% In line with the amendments to the Escota +1.18% concessions contracts approved by decree in Cofiroute (excl. A86 Duplex) +0.82% August 2015 Despite recent recovery HV traffic growth still below pre-
Slide 27: VINCI Airports, a key strategic focus for VINCI
VINCI Airports, a key strategic focus for VINCI 33* airports managed and > 100 million* passengers managed in 2015 >100 Passenger traffic (in million pax.) 11 airports in France Excluding ADP 3 airports in Cambodia 69 10 airports in Portugal 47 43 1 airport in Chile 2 airports in Japan ** 10 6 airport
Slide 28: Contracting order book
Contracting order book Stabilisation of the order book Breakdown by geographical area Δ∆ 15/14 Dec. Breakdown by business line Δ∆ 15/14 Dec. Actual Excl. SEA Actual Excl. SEA 27.9 27.7 -1% +1% 27.9 27.7 -1% +1% 6.4 6.3 6.1 -4% -3% 14.0 -4% stable 13.4 6.0 5.5 5.4 -3% +1% 7.5 +4% 7.8 16.1 16.3 +1% +3
Slide 29: 2016 trends
2016 trends Concessions Contracting ü VINCI Autoroutes revenue is likely to grow ü The time spread of the order books suggests at a similar rate to that seen in 2015, with stable revenue at VINCI Energies and a likely tariff increases offsetting probably weaker contraction of Eurovia and VINCI traffic
Slide 30: Dividend
Dividend 2015 Dividend* (all-cash) per share: €1.84 + 4.0% ** of which : § Paid on 12 November 2015 €0.57 § To be paid €1.27 § Ex-date: 26 April 2016 § Payment date 28 April 2016 * To be proposed to the shareholders’ General Meeting of 19 April 2016 ** Compared to €1.77 as of 2014 excluding exce
Slide 31: VINCI's strategic priorities for sustainable, profitable growth
VINCI’s strategic priorities for sustainable, profitable growth VINCI Airports ü Take advantage of ü Develop synergies worldwide air traffic Extract more growth ü Restructure under- value Special focus performing country- from our on growth ü Seek out greenfield and business current activities brown
Slide 32: Thank you for your attention
Thank you for your attention
Slide 33: Appendixes
Appendixes Structure and shareholder base Business line profiles Financial data
Slide 34: Structure and shareholder base
Structure and shareholder base
Slide 35: A global leader in concessions and contracting
VINCI – A global leader in concessions and contracting 185,500 €38.5 bn ~3,000 €34.8 bn employees 2015 Group revenue business units market cap. at end 2015 117,000 >110 280,000 61% employee shareholders countries where VINCI operates est. worksites shareholders outside France Concessions Contracting
Slide 36: Shareholder base at 31 December 2015
Shareholder base at 31 December 2015 France United Kingdom 8.1% 16.2% Individual investors 16.9% Rest of Europe 8.4% Institutional Investors 588.5 m 9.4% Employees 72.4 % Shares 4.0% Qatar Holding LLC 24.4% 5.8% United States 6.8% Treasury Shares Rest of the World Shareholding structure Significant m
Slide 37: Business line profiles
VINCI “ Business line profiles
Slide 38: Concessions Profile
Concessions Profile 2015 Key figures 2015 revenue by geographical area Revenue 5,804 France 5,053 RoW 3% International 751 Portugal 10% EBITDA 3,933 France 87% as % of revenue 67.8% Net income 1,295 Capital employed at 31 December 2015 26,246 €5.8 bn Free Cash Flow 1,464 o/w growth investments (917) H
Slide 39: VINCI Autoroutes
VINCI “ VINCI a” AUTOROUTES
Slide 40: VINCI Autoroutes: Europe's leading toll road concession operator
VINCI Autoroutes Europe’s leading Toll Road concession operator 2015 Key figures 4,398 km under concession (€ in millions) GCO* Revenue 4,881 approx. 50% EBITDA as % of revenue 3,524 72.2% of conceded French toll roads Net income 1,100 Capital employed at 31 Dec. 2015 21,868 Free Cash Flow 1,356 >35%
Slide 41: VINCI Autoroutes - Stimulus Plan (2015)
VINCI Autoroutes - Stimulus Plan (2015) Main terms of the amendments to the concession contracts approved by decree of 21 August 2015, included in the MoU signed on 9 April 2015 with the Grantor 1. Stimulus Package (approved by the European Commission in 2014) CAPEX of €2bn to be performed, compensa
Slide 42: Contractual framework of toll increases
VINCI Autoroutes Contractual framework of toll increases (LVs) ASF Escota Cofiroute excl. A86 Duplex End of concession 2036 2032 2034 2017* 70% x i + 0.945% 70% x i + 0.34% 70% x i + 0.32% 2018* 70% x i + 0.62% 70% x i + 0.62% 70% x i + 0.62% 2019 to 2023* 70% x i + 0.39% 70% x i + 0.25% 70% x i + 0.
Slide 43: Current capex forecast (including Stimulus Package)
VINCI Autoroutes Current capex forecast (including Stimulus Package) 1200 COFIROUTE ASF GROUP 1000 800 600 In € millions 400 200 0 2013 2014 2015 2016e 2017e 2018e 2019e 43
Slide 44: Stimulus package related projects
VINCI Autoroutes Stimulus package related projects 44
Slide 45: VINCI Airports
VINCI “ VINCI _? AIRPORTS
Slide 46: VINCI Airports
VINCI Airports VINCI AIRPORTS End of VINCI Traffic Consoli- Country Name Description KPAX in 2015 concession share risk dation* Phnom Penh Concession Cambodia Siem Reap Concession 6,470 2040 70 % Yes FC Sihanoukville Concession Quimper Cornouaille DSP* 89 2016 100% Yes FC Poitiers-Biard DSP* 123 2019
Slide 47: VINCI Concessions
VINCI “ CONCESSIONS VINCI a”
Slide 48: VINCI Highways
VINCI Highways VINCI HIGHWAYS End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Road Infrastructure Motorway A4 Horselberg 45 km 2037 50% yes EM Germany Motorway A9 Thuringia/Bavarian border 46.5 km 2031 50% no EM Motorway A5 Malsch–Offenburg 60 km 2039 54% yes E
Slide 49: VINCI Highways and other concessions
VINCI Highways and other concessions End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Bridges & Tunnels Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM France Tunnel Prado Sud Road tunnel, Marseille 2055 58.5% yes EM Netherlands Tunnel Cœntunnel Am
Slide 50: VINCI Concessions
VINCI Concessions VINCI RAILWAYS End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Rail RhônExpress 23 km light rail system, Lyon 2038 35% yes EM Ground-train communication system on Rail GSM-Rail 14,000 km of track 2025 30% no EM France Operation and maintenanc
Slide 51: Analysis of equity investment in concessions
Analysis of equity investment in concessions Equity to be Total Equity Key contributors by division invested in 2016 and Committed* onwards ASF + Escota 10,570 - Total Equity Equity to be invested Cofiroute 1,705 - in € millions committed* in 2016 and onwards ARCOUR 166 - ANA 1,127 - VINCI Autoroutes
Slide 52: Contracting
VINCI “ Contracting
Slide 53: Contracting Profile
Contracting Profile 2015 revenue 2015 Key figures by geographical area Revenue 32,570 Rest of World 3% Asia/Russia 4% France 17,187 Africa 5% International 15,382 France 53% Americas 7% EBIT 1,100 as % of revenue 3.4% Rest of Europe 6% Net income 682 Central & Eastern €32.6 bn Capital employed at 31 D
Slide 54: VINCI Energies
VINCI Energies 2015 revenue 2015 Key figures 1,700 by geographical area (€ in millions) Business Rest of the world 7% Units Africa 4% France 51% Revenue 10,180 France 5,178 Rest of Europe 9% International 5,002 Switzerland 4% EBIT 568 Netherlands 3% €10.2 bn as % of revenue 5.6% Belgium 3% Net income
Slide 55: Eurovia
Eurovia 2015 revenue 2015 Key figures 400 by geographical area Business Rest of the Americas 7% (€ in millions) Units Canada 5% France 57% Revenue 7,899 Rest of Europe 2% France 4,483 Central and International 3,416 Eastern Europe EBIT 233 12% €7.9 bn as % of revenue 3.0% UK 8% Net income 146 Net fina
Slide 56: VINCI Construction
VINCI Construction 2015 revenue 2015 Key figures 1,100 by geographical area (€ in millions) Business Rest of the world 5% Units Asia / Russia 7% Revenue 14,491 France 7,527 Africa 7% France 52% International 6,964 EBIT 299 Americas 9% €14.5 bn as % of revenue 2.1% Rest of Europe 3% Net income 164 Cen
Slide 57: 2015 major contracts awarded
2015 major contracts awarded Ilot Fontenoy-Ségur (Paris) Orly South-West junction building (Paris airport) VINCI Construction Epure project (Burgundy ) SNCF rail renewal contract (Greater Paris area) Eurovia La Santé prison (Paris) Roland Garros tennis complex (Paris) La Samaritaine (Paris) Trinity
Slide 58: VINCI Immobilier
VINCI “ VINCI Immobilier
Slide 59: VINCI Immobilier
VINCI Immobilier Present in 2015 reservations 2015 Key figures by destination (€ in millions) 15 Managed revenue 826 French cities Social, Institutional Buy to let Consolidated revenue (100% in France) 707 private 34% 37% EBIT 56 Investors as % of revenue 7.9% €0.7 bn Net income 41 Net financial debt
Slide 60: Financial Data
VINCI “ Financial Data
Slide 61: Consolidated revenue
Consolidated revenue Δ∆ 2015/2014 € in millions 2015 2014 Actual Comparable Concessions 5,804 5,564 +4.3% +3.9% VINCI Autoroutes 4,881 4,743 +2.9% +2.9% VINCI Airports 820 717 +14.4% +11.3% Other Concessions 102 104 -1.7% -3.7% Contracting 32,570 32,916 -1.1% -6.2% VINCI Energies 10,180 9,309 +9.4%
Slide 62: Consolidated revenue – France
Consolidated revenue – France Δ∆ 2015/2014 € in millions 2015 2014 Actual Comparable Concessions 5,053 4,921 +2.7% +2.7% VINCI Autoroutes 4,871 4,736 +2.9% +2.9% VINCI Airports 115 105 +10.0% +10.0% Other Concessions 67 81 -17.4% -17.4% Contracting 17,187 18,842 -8.8% -9.1% VINCI Energies 5,178 5,25
Slide 63: Consolidated revenue – international
Consolidated revenue – international Δ∆ 2015/2014 € in millions 2015 2014 Actual Comparable Concessions 751 643 +16.7% +12.6% VINCI Autoroutes 10 8 +27.8% +12.6% VINCI Airports 705 612 +15.2% +11.5% Other Concessions 35 23 +53.6% +40.4% Contracting 15,382 14,074 +9.3% -2.6% VINCI Energies 5,002 4,05
Slide 64: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of € in millions 2015 2014 Δ∆ 2015/2014 revenue* revenue* Concessions 2,576 44.4% 2,342 42.1% +10.0% VINCI Autoroutes 2,352 48.2% 2,148 45.3% +9.5% VINCI Airports 289 35.3% 231 32.2% +25.4% Other Concessions (65) (38) +74.3% Co
Slide 65: Recurring operating income by business line
ROI – Recurring operating income by business line % of % of € in millions 2015 2014 Δ∆ 2015/2014 revenue* revenue* Concessions 2,624 45.2% 2,352 42.3% +11.6% VINCI Autoroutes 2,342 48.0% 2,136 45.0% +9.6% VINCI Airports 320 39.0% 254 35.4% +26.3% Other Concessions (38) (38) +1.4% Contracting 1,067 3
Slide 66: Financial income/(expense)
Financial income/(expense) € in millions 2015 2014 Δ∆ 2015/2014 Cost of net financial debt (557) (616) 59 Other financial income and expenses (24) (61) 36 Borrowing costs capitalised 23 17 6 Discounting retirement obligations and provisions (49) (80) 31 Foreign exchange gains and losses 1 2 (1) Financ
Slide 67: Net income attributable to owners of the parent by business line
Net income attributable to owners of the parent by business line € in millions 2015 2014 Δ∆ 2015/2014 Concessions 1,295 1,779 -27.2% VINCI Autoroutes 1,100 916 +20.0% VINCI Airports 202 154 +30.9% Other Concessions and holding companies (7) 708 Contracting 682 588 +16.1% VINCI Energies 373 330 +13.1
Slide 68: EBITDA
EBITDA* % of % of € in millions 2015 2014 Δ∆ 2015/2014 revenue** revenue** Concessions 3,933 67.8% 3,730 67.0% +5.5% VINCI Autoroutes 3,524 72.2% 3,389 71.4% +4.0% VINCI Airports 412 50.2% 342 47.7% +20.2% Other Concessions (2) (1) Contracting 1,565 4.8% 1,624 4.9% -3.6% VINCI Energies 597 5.9% 562
Slide 69: Operating investments
Operating investments € in millions 2015 2014 Δ∆ 2015/2014 Concessions 29 63 (34) VINCI Autoroutes 10 12 (2) VINCI Airports 3 28 (25) VINCI Park 0 17 (17) Other Concessions 15 6 9 Contracting 713 680 33 VINCI Energies 121 108 13 Eurovia 226 218 8 VINCI Construction 366 354 12 VINCI Immobilier and ho
Slide 70: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 2015 2014 Δ∆ 2015/2014 Concessions 917 806 111 VINCI Autoroutes 784 684 100 O/w : ASF / Escota 673 553 120 Cofiroute 111 130 (19) VINCI Airports 109 59 51 VINCI Park 22 (22) Other Concessions 24 41 (17) Contracting (14) (6) (8) Growth investmen
Slide 71: Cash flow statement (1/2)
Cash flow statement (1/2) of which: 2015 2014 Concessions Contracting € in millions Cash flow from operations 5,664 3,933 1,565 5,561 Change in WCR and current provisions 307 (64) 493 (158) Income taxes paid (1,041) (908) (357) (1,282) Net interest paid (534) (629) (41) (586) Dividends received from c
Slide 72: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 2015 2014 Free cash flow (after investments) 2,995 2,197 Net financial investments and other cash flows (431) 318 Cash flow before movements in share capital 2,563 2,515 Share capital increases and other operations (71) 441 Dividends (1,044) (1,287) Share buy-backs
Slide 73: Net financial debt by business line
Net financial debt by business line (in € millions) 31 Dec. 2015 31 Dec. 2014 Δ∆ 2015/2014 Concessions (23,551) (19,920) (3,631) VINCI Autoroutes (20,246) (16,812) (3,434) Other Concessions (3,304) (3,108) (197) Contracting 1,034 1,606 (572) Holding cos & VINCI Immobilier 10,081 5,033 5,048 Net financ
Slide 74: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt (€16.6bn) at end December 2015: 4.6 years (Concessions: 5.1 years) Repayment schedule at end December 2015 3 000 2 500 2 000 1 500 1 000 500 0 S1 2016 S2 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 75: Average cost of future debt repayment
Average cost of future debt* repayment ASF Cofiroute Holdings and misc. Arcour Other concessions 3 000 2 500 2 000 1 500 1 000 500 0 2016 2017 2018 2019 2020 2021 Nominal amount 1,822 2,048 2,559 1,564 1,558 1,466 in € millions Average rate 3.65% 3.34% 4.09% 4.39% 1.54% 2.94% *After hedging 75
Slide 76: IR Contacts and Agenda
IR Contacts and Agenda CONTACT AGENDA 19 April 2016 Arnaud Palliez Arnaud.palliez@vinci.com Shareholders’ general meeting Tel: +33 1 47 16 45 07 26 April 2016 Final 2015 dividend* ex-date Alexandra Bournazel Alexandra.bournazel@vinci.com 28 April 2016 Tel: +33 1 47 16 33 46 § Final 2015 dividend* p