Vinci Sa · EURONEXT:DG
Vinci Sa — Investor Presentation (July 2006)
45 slides from Vinci Sa's investor presentation, Jul 27, 2006
Slide 1: Analysts presentation: Other concession assets
Analysts presentation Other concession assets 27 July 2006 David Azema, Senior Executive Vice President of VINCI Concessions Jean-Jacques Bancel, Chief Financial Officer of VINCI Concessions
Slide 2: Other concession assets
Other concession assets Position and organisation of VINCI Concessions Review and position of ”other concession assets” * Valuation of main assets Valuation summary Business development (*) Assets managed by VINCI Concessions, other than ASF, Cofiroute, Escota and VINCI Park 2
Slide 3: Position and organisation of VINCI Concessions
Position and organisation of VINCI Concessions
Slide 4: Clear and easily understandable organisation by business line
Clear and easily understandable organisation by business line Chairman: Y.-T. de Silguy Vice-Chairmen: B. Huvelin and B. Val CEO: X. Huillard J. Tavernier R. Francioli R. Martin J.-Y. Le Brouster D. Azéma Concessions Construction Roads Energy services 142,000 employees, of which 84,000 in France 4
Slide 5: Organisation of VINCI Concessions
Organisation of VINCI Concessions J. Tavernier, CEO D. Azema, Senior Executive Vice President Motorways, bridges & Motorways, bridges & tunnels tunnels Car parks Business International development France Europe Rest of the world 73.4% GEFYRA SCDI 19% Rion–-Antirion 53% Confederation 100% (*) 73.4% b
Slide 6: Review and position of other concession assets
Review and position of other concession assets
Slide 7: Financial structuring of a concession project
Financial structuring of a concession project Objective: value creation by exploiting internal synergies - the ability of construction and operating subsidiaries jointly to control risks (design, build, operate and maintain) by making the most of VINCI Concessions’ design-build-operate experience by
Slide 8: Projects with varying scope
Projects with varying scope Legal scope: the concessionaire’s contractual obligations can vary, particularly with respect to: infrastructure renewal, maintenance and upkeep investment, improvement, extension So can the concession grantor's guarantees, which vary according to project: minimum revenue
Slide 9: Illustration of project diversity
Illustration of project diversity Gefyra Stade de Lusoponte France Applicable accounting model User + User + Payment according to use of User Concession Concession the structure grantor grantor Minimum revenue guarantee by None Total Partial concession grantor Applicable accounting model(*) Intangib
Slide 10: Review of a concession project
Review of a concession project Risk level/ asset value CONSTRUCTION START-UP PHASE GROWTH MATURITY Risque Traffictrafic risk Valeur de l'actif Asset value Construction risk Risque construction Time 10
Slide 11: Vinci's diversified portfolio of concessions over the value chain
Vinci's diversified portfolio of concessions is positioned over the entire value chain Construction Start-up phase Growth Maturity Motorways Arcour Concessions Lusoponte Gefyra Severn Stade de France Structures Newport SCDI SMTPC Autopista del Bosque Airports SCA (3 airports in different phases) Ope
Slide 12: Presentation and valuation of main assets
Presentation and valuation of main assets
Slide 13: Valuation method
Valuation method The valuation covers 100% of equity Financial projection to the end of the concession Free cash flow discounted (Nopat - Capex) The discount rate used (variable WACC) takes account of the financial structure of the project company and a country-specific risk premium Total shareholde
Slide 14: Société Marseillaise du Tunnel Prado Carénage (France)
Société Marseillaise du Tunnel Prado Carénage (France) 14
Slide 15: Société Marseillaise du Tunnel Prado Carénage
Société Marseillaise du Tunnel Prado Carénage Built by VINCI and Eiffage between 1990 and 1993 (€166m) Commissioned: September 1993 Financing equity / subordinated convertible notes: €28m (VINCI 33%) bank and EIB financing: €148 m (maturing 2020 and 2009) 2005 key figures (100%) traffic: 15.1 millio
Slide 16: Prado Carénage: change in equity value over time
Société Marseillaise du Tunnel Prado Carénage (France) Change in equity value over time Total Shareholder Return = 12% Constru €m ction Start-up phase Growth Maturity 200 180 160 140 120 100 80 60 40 20 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
Slide 17: Prado Carénage: change in revenue and EBITDA
Société Marseillaise du Tunnel Prado Carénage Change in revenue and EBITDA over time (100%) in €m 2005 2006 2011 (actual) (estimated) (projected) Revenue 29 30 ~ 38 EBITDA 23 24 ~ 30 EBITDA/Revenue 80% 80% ~ 80% 17
Slide 18: Tagus bridges, Portugal
18 Tagus bridges, Portugal VINCI “? wy PT VT a —~y A — = a f= jj I
Slide 19: Tagus bridges, Portugal
Tagus bridges, Portugal Built by VINCI and other Portuguese and British construction companies between 1994 and 1998 (€770m of which VINCI 23%) Commissioned: March 1998 Financing: equity and subordinated debt: €100m (VINCI 31%) European subsidies: €295m bank and EIB financing: €392m (maturities 2019
Slide 20: Tagus bridges: change in equity value over time
Tagus bridges (Portugal) Change in equity value over time Total Shareholder Return= 13% €m Construction Start-up phase Growth Maturity 450 400 350 300 250 200 150 100 50 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 Equity value at 100% 2006-20
Slide 21: Tagus bridges: change in revenue and EBITDA
Tagus bridges (Portugal) Change in revenue and EBITDA over time (100%) en m€ 2005 2006 2011 (actual) (estimated) (projected) Revenue 88 83 ~106 of which subsidies 30 23 ~26 EBITDA 78 71 ~ 88 EBITDA/Revenue 88% 86% ~ 83% 21
Slide 22: Stade de France
Stade de France VINCI
Slide 23: Stade de France
Stade de France Built by VINCI and Bouygues between 1995 and 1997 for €360m Financing: equity: €30m government subsidies: €190m bank loan: €121m (maturity 2016) 25 major events between 1 July 2005 and 30 June 2006 rugby, football matches track and field events automobile races concerts and shows Sub
Slide 24: Stade de France: change in equity value over time
Stade de France Change in equity value over time Total Shareholder Return= 15% €m Construction Start-up phase Growth Maturity 140 120 100 80 60 40 20 0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Equity value at 100% 2006-2011 projection 24
Slide 25: Stade de France: change in revenue and EBITDA
Stade de France Change in revenue and EBITDA over time (100%) in €m 2005 2006 2011 (actual) (estimated) (projected) Revenue 85 103 ~ 92 EBITDA 26 28 ~ 25 EBITDA/Revenue 30% 27% ~ 27% 25
Slide 26: Airports in Cambodia
Airports in Cambodia Airports in Cambodia 26
Slide 27: Airports in Cambodia
Airports in Cambodia 3 airports with major potential Phnom-Penh (capital city) Siem Reap (Angkor site) Sihanoukville (under construction) Initial equity investment: $22m 2005 key figures (100%): traffic: 2.2m pax (+16% vs 2004) revenue: €34m EBITDA: 57% of revenue Strong growth outlook driven by dev
Slide 28: Airports in Cambodia: change in equity value over time
Airports in Cambodia Change in equity value over time Total Shareholder Return= 16% Constr $m uction Start-up phase Growth Maturity 300 250 200 150 100 50 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Equity value at 100% 2006-20
Slide 29: Airports in Cambodia: change in revenue and EBITDA
Airports in Cambodia Change in revenue and EBITDA over time (100%) in $m 2005 2006 2011 (actual) (estimated) (projected) Revenue 42 48 ~ 77 EBITDA 24 23 ~ 46 EBITDA/Revenue 57% 48% ~ 60% 29
Slide 30: Grenoble and Chambéry airports
Grenoble and Chambéry airports 30
Slide 31: Grenoble and Chambéry airports
Grenoble and Chambéry airports Operation of the Grenoble-Isère airport, public service delegation contract signed with the Isère General Council in 2004 Operation of Chambéry-Savoie airport, DSP public service delegation contract with the Savoie General Council starting in July 2004 2005 key figures
Slide 32: Rion-Antirion bridge (Greece)
Rion-Antirion bridge (Greece) 32
Slide 33: Rion-Antirion bridge (Greece) – Charilaos Trikoupis
Rion-Antirion bridge (Greece) – Charilaos Trikoupis Built by VINCI between 1998 and 2004 (€670m) A unique structure: length: 2.9 km water depth: 65 metres stringent seismic standards Financing: equity: €69m (VINCI 53%) Greek government subsidy: €385m EIB loan: €370m (Maturity 2025 to 2028) Promising
Slide 34: Rion-Antirion bridge: change in equity value over time
Rion-Antirion bridge (Greece) Change in equity value over time Total Shareholder Return= 12% €m Construction Start-up phase Growth Maturity 400 350 300 250 200 150 100 50 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Equity value
Slide 35: Rion-Antirion bridge: change in revenue and EBITDA
Rion-Antirion bridge (Greece) Change in revenue and EBITDA over time (100%) in €m 2005 2006 2011 (actual) (estimated) (projection) Revenue 41 48 ~ 54 EBITDA 30 31 ~ 41 EBITDA/Revenue 73% 71% ~ 75% 35
Slide 36: A19 (Arcour, France)
A19 (Arcour, France) VINCI “? 36
Slide 37: A19 (Arcour, France)
A19 (Arcour, France) 100% VINCI 101 km motorway between Orléans and Sens Cost of construction: €550m Financing equity: €125m subsidy: €85m debt: €509m (*) End of concession 2070 Expected traffic at commissioning: > 8,000 veh./day after 15 years: c.15,000 veh./day Schedule start of work Q1 2007 openi
Slide 38: Valuation summary
VINCI “2 Valuation summary
Slide 39: Other assets: estimated value of the VINCI holding
Other assets: estimated value of the VINCI holding Equity value in €m - 2006 Construction Start-up Growth Maturity Other phase 9 22 SCDI 9 SMTPC 56 Total Stade de France 68 “other” infra- structure concessions Lusoponte 105 SCA 96 €510m Gefyra 132 Arcour (*) 22 (*) Book value of equity 39
Slide 40: Assets being divested: status
Assets being divested: status Sale of 31.1% to Borealis (30 June 2006) SCDI The VINCI Concessions holding is reduced to 18.8% (from 49.9%) Confederation Capital gain of approximately €17m Bridge, Canada Initial investment ~ 0 Sale agreement (promesse de vente) signed ADB Due diligence under way Moto
Slide 41: Key figures and consolidation methods (2005)
Key figures and consolidation methods (2005) % 2005 2005 2005 2005 2005 Held Equity Financial debt Net profit Operating Cash flows m€ Name (attributable profit from from operations to Group) ordinary activities before tax and financing cost 31 Dec 2005 31 Dec 2005 31 Dec 2005 31 Dec 2005 31 Dec 2005
Slide 42: Business development
VINCI “2 Business development
Slide 43: Projects under study (1/2)
Projects under study (1/2) Project Country Description Estimated cost at 100% Concessionaire 2,600 metre suspension bridge between Chiloé designated Chiloé bridge Chile Island and mainland Chile €400 million Bid submitted Nîmes airport France Management for 5 years Nd Nice airport car hire facility
Slide 44: Projects under study (2/2)
Projects under study (2/2) Estimated Project Country Description cost at 100% Awaiting ~ €100 tender issue A88 France Falaise–Sées motorway (22 or 44 km) million Lighting of Rouen France Urban traffic management and lighting >€100m Widening of 100 km and maintenance of M25 motorway around M25 UK >€1
Slide 45: Analysts presentation: Other concession assets
Analysts presentation Other concession assets 27 July 2006 David Azema, DGD VINCI Concessions Jean-Jacques Bancel, Directeur financier VINCI Concessions