Vinci SA · EURONEXT:DG
Vinci SA — SGCIB Premium Conference 2010
38 slides from Vinci SA's conference presentation, Dec 2, 2010
Slide 1: SGCIB Premium Conference
SGCIB Premium Conference December 2, 2010
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking objectives and statements about VINCI’s financial situation, operating results, business activities and growth strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors
Slide 3: VINCI's Key Priorities
VINCI’s Key Priorities Objectives Improve resilience to economic cycles Take advantage of growth opportunities Create shareholder value over the long run Focus on margins Balanced development Consistent of concessions and financial policy contracting 3
Slide 4: Consistent Strategic Priorities to create long term shareholder value (1/3)
Consistent Strategic Priorities to create long term shareholder value (1/3) 1/ Priority of margins over volumes Concessions Contracting VINCI Autoroutes: Control operating Selective order-taking to protect expenses and investments margin and control risks VINCI Park: reinforcement of Adapt structure
Slide 5: Consistent Strategic Priorities to create shareholder value (2/3)
Consistent Strategic Priorities to create shareholder value (2/3) 2/ Balanced development of both business lines (1/2) Concessions 2006-2009 Greenfield development A-Modells & schools in Germany PPP in France (INSEP, Lucitea, Rhonexpress, MMArena…) Schools and hospitals PFI in the United Kingdom R1
Slide 6: Consistent Strategic Priorities to create long term shareholder value (2/3)
Consistent Strategic Priorities to create long term shareholder value (2/3) 2/ Balanced development of both business lines (2/2) Contracting Acquisitions 2006-2009 Targeted external growth Soletanche Bachy Entrepose Contracting ● Reinforce international positions with Nukem (UK) priorities on growin
Slide 7: Consistent Strategic Priorities to create long term shareholder value (3/3)
Consistent Strategic Priorities to create long term shareholder value (3/3) 3/ Prudent and consistent financial policy Maintain ‘investment grade’ credit ratings (S&P: BBB+; Moody’s: Baa1; stable outlook) Maintain high liquidity level Prudent debt management: about 75% of long term debt is at fixed
Slide 8: Looking back…
Looking back… 2006-2008 average 2009 Strong performance Good resilience in in growth market tough economic environment conditions Δ Revenue Y/Y-1 +13% (4.6%) o/w Organic change +8% (5.5%) Group EBIT Margin 10.1% 10.0% o/w Concessions 37.9% 39.1% o/w Contracting 4.8% 4.5% Δ Net profit Y/Y-1 +14.4% +0
Slide 9: VINCI Today
VINCI “ VINCI Today
Slide 10: Nine-month 2010: robust performance
Nine-month 2010 : robust performance As of 30 9M 10 Q3 10 September 2010 vs 9M 09 vs Q3 09 (in € billion) Continuing revenue growth 25.2 +6.9% +15.2% French motorway toll receipts 3.2 +4.4% +3.3% Contracting revenue 21.2 (1.8%) * +4.2% * Order intake > 22 +9% +7% Order book 28.3 +17% +18%** Net fina
Slide 11: Nine-month Growth in revenue: +6.9%
Nine-month Growth in revenue : +6.9% +6.9% +€1,634m 25,212 23,578 Impact of exchange rates Organic growth Consolidation +€294m -€131m scope +€1,471m 9M 09 9M 10 Exchange rates Change in 9M 10/09 change Organic growth Consolidation scope & misc. revenue Concessions +3.8% +0.5% +0.2% +4.5% Contracting
Slide 12: A diversified geographical exposure: about 40% of revenue outside France
A diversified geographical exposure : about 40% of revenue generated outside France Nine-Month 2010 Revenue : €25.2 billion Eastern Europe: 6.6% United Kingdom: 6.1% Germany: 5.2% Belgium: 3.4% France: 60.4% Contracting : 54% Rest of Europe: 4.8% Americas: 4.5% Africa:5.5% Rest of the world: 3.5% Co
Slide 13: VINCI Autoroutes: resumption of traffic growth
VINCI Autoroutes: resumption of traffic growth Continuation of increase in light-vehicle traffic Confirmation of return of growth in heavy-vehicle traffic Traffic on a stable network Light vehicles: (in no. of km travelled over 12 trailing months) up 2.0% during 9M 2010 10 5 Base 100: Q4 2007 Total
Slide 14: Strong order book at 30 Sept 2010: €28.3 billion
Strong order book at 30 Sept 2010: €28.3 billion Good commercial momentum overall Order book execution timeline extended due to the impact of major projects Good renewal of French order book in the 3 divisions More than 50% of work on order to be carried out in 2011 Æ Improved visibility Order book
Slide 15: 2010 Commercial Activity – Selected Projects
2010 Commercial Activity – Selected Projects 1st Half 2010 Contract Wins 3rd Quarter Contract Wins Total Value: ~ €2 bn Total value: ~ €0.8 bn Lee Tunnel UK Victoria Station UK HK-Guanzhou Rail PRC Tour Descartes FRA Tottenham Court UK Peninsula Hotel FRA PNG Pipeline PNG Sheraton Car Park QAT BSF S
Slide 16: Financial situation strengthened
Financial situation strengthened (in € billions) 30 Dec. 08 31 Dec. 09 30 June 10 EQUITY AND LIABILITIES 9.0 10,4 12.1 Equity 1.3 1,4 1.6 Non-current provisions and other long- term liabilities 20.2 19.7 19.8 Borrowings (A) WCR and current provisions 5.4 6.3 5.6 ASSETS Non-current assets – Concessio
Slide 17: First half 2010 change in net financial debt
First half 2010 change in net financial debt (in € billions) -1.3 Cash flow before tax and cost of Dividends (15.0) financing Operating (0.6) +0.1 (13.7) +2.2 investments Capital -0.4 increase & Investments misc.* Δ WCR Concessions: -0.5 -0.8 Interest & Financial: -0.3* taxes paid -1.0 Operation Inv
Slide 18: Outlook
Outlook
Slide 19: 2010 Outlook bolstered by nine-month performance
2010 Outlook bolstered by nine-month performance Increase in revenue of about 5% Stabilisation of margins ÆIncrease in operating profit in line with revenue Stabilisation of net financial debt 19
Slide 20: 2011 and beyond
2011 and beyond Concessions Contracting Traffic Visibility Strong order book Relationship with grantor Private sector recovery Inflation-linked tariffs Margin Management focus enhancement Flexible structure & cost base Greenfield developments Investment M&A growth driver: full-year Mega projects fin
Slide 21: Long term favorable and sustainable market drivers
Long term favorable and sustainable market drivers Urbanisation Energy Mobility Environment Important needs of infrastructure and public equipment in emerging markets Better acceptance of the ‘User-Payer’ principle / of the toll culture ÆDevelopment of PPP General ageing of public equipment in matur
Slide 22: Additional information
VINCI “ Additional information
Slide 23: VINCI: Simplified Organization Chart
VINCI: Simplified Organization Chart 2009 Revenue: €31.9 bn VINCI Staff: 190,000 at June 30, 2010 CONCESSIONS CONTRACTING VINCI VINCI AUTOROUTES PARKINGS EUROVIA CONSTRUCTION ENERGIES 2009 Rev. €4.1 bn €0.8 bn €14.0 bn € 8.0 bn € 4.9 bn Staff: 9,000 8,000 71,000 41,000 57,000 23
Slide 24: Integrated concession-construction model
Integrated concession-construction model Concessions Cash Contracting Long Cycles Short and Medium High Capital Intensity Low Project company financed with Operating cash flow leverage effect and without Financing Methods structurally positive recourse to shareholders Project financing Expertise Abi
Slide 25: A very resilient business model even in crisis period
A very resilient business model even in crisis period Revenue (in € billion) Net income (in € million) CAGR 09-06 : +7% CAGR 09-06 : +7.7% 1,591 1,596 33.5 31.9 1,461 30.4 1,277 26.0 655 843 884 801 21.5 25.7 28.5 26.9 668 680 756 745 4.3 4.6 4.8 4.9 2006 2007 2008 2009 2006 2007 2008 2009 Concessio
Slide 26: Key Figures: 2009 Highlights
Key Figures: 2009 Highlights of which (€ in millions) Total VINCI Concessions Contracting Revenue 31,928 4,899 26,891 Cash flow from operations (EBITDA)* 4,964 3,086 1,737 As % of revenue 15.5% 63.0% 6.5% Op. profit from ordinary activities (EBIT) 3,192 1,917 1,220 As % of revenue 10.0% 39.1% 4.5% N
Slide 27: Maturity profile of long-term gross debt
Maturity profile of long-term gross debt Average maturity of long-term gross debt (€19 billion): 7.1 years (of which Concessions: > 8 years) 3,000 2,500 2,000 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 > 2028 ASF ASF Holding Cofiroute
Slide 28: Shareholder base at June 30, 2010
Shareholder base at June 30, 2010 Dec. 31, June 30, 2009 2010 Institutional investors 70.4% 67.6% 3.7% 12.1% France 29.0% 24.1% 9.8% Rest of Europe 17.7% 18.3% 9.1% North America 12.1% 11.7% 11.7% United Kingdom 8.2% 9.8% 5.7% Rest of the world 3.4% 3.7% Individual shareholders 12.3% 12.1% 3.8% 1.7%
Slide 29: Additional information by business lines
Additional information by business lines
Slide 30: VINCI Autoroutes: resilience and visibility
VINCI Autoroutes: resilience and visibility Europe’s biggest motorway network A86 ASF Escota Cofiroute* Arcour Duplex Network under 2,714 459 1,100 101 10 concession (km) % owned by VINCI 100% 100% 83% 100% 83% No. of km in service 2,633 459 1,100 101 4.5 End of concession 2033 2027 2031 2070 75 yrs
Slide 31: VINCI Autoroutes: contractual framework of toll changes
VINCI Autoroutes: contractual framework of toll changes ASF Escota Cofiroute* Arcour End of concession 2033 2027 2031 2070 Annual minimum toll increase until end of concession: 70% * CPI Current master plan 2007-2011 2007-2011 Under discussion N/A – 2010 85% x CPI + 0.825% 85% x CPI + 0.9% 70% x CPI
Slide 32: VINCI Autoroutes: 2010-2020 investment programme
VINCI Autoroutes: 2010-2020 investment programme (in € millions) 1600 1400 1200 1000 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investment in new infrastructure Maintenance capex 32
Slide 33: Other concessions & PPPs in portfolio (1/2)
Other concessions & PPPs in portfolio (1/2) End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Other PPPs & concessions in France France Stadium Stade de France 80,000 seats 2025 67% yes PC Tunnel Prado Carénage Road tunnel in Marseilles 2025 33% yes EM Energy
Slide 34: Other concessions & PPPs in portfolio (2/2)
Other concessions & PPPs in portfolio (2/2) End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Other concessions outside of France United Bridge Severn Crossings 2 bridges 2016 35% yes EM Kingdom Portugal Bridge Bridges over the Tagus 2 bridges in Lisbon 2030 3
Slide 35: Energies – profile
Energies – profile Description Market leader in France and a major player in Europe in services associated with energy and information technologies Design, engineering, implementation, operation and maintenance of equipment: Power transmission and distribution infrastructure, public lighting, CCTV I
Slide 36: Eurovia – profile
Eurovia – profile Description 300 divisions and subsidiaries: Construction, repair and maintenance of transport infrastructure (roads, rail tracks, airports, etc.) Urban development, light rail, signalling Strategy of vertical integration towards materials production and recycling Production of 73 m
Slide 37: Construction – profile
Construction – profile Description Wide variety of expertise in building and civil engineering: Strong local presence in mainland and overseas France (network of 500 profit centres), rest of Europe (United Kingdom, Belgium, Central Europe) and longstanding operations in Africa Leadership position in
Slide 38: Investor relations contacts
Investor relations contacts Christopher Welton christopher.welton@vinci.com Tel: +33 1 47 16 45 07 Marie-Amélia Folch marie-amelia.folch@vinci.com Tel: +33 1 47 16 45 39 38