Vinci SA · EURONEXT:DG
Vinci SA — Cheuvreux Autumn Conference 2011
47 slides from Vinci SA's conference presentation, Sep 27, 2011
Slide 1: Cheuvreux Autumn Conference
Cheuvreux Autumn Conference Paris, 27 September 2011
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: 2011 so far
VINCI = 2011 so far
Slide 4: First half 2011 highlights
First half 2011 highlights Strong growth in revenue and profit (H1 2011 vs H1 2010) Revenue: +17.3% Operating profit from ordinary activities: +15.3% Net profit: +15.7% Earnings per share: +10.4% South Europe Atlantic high-speed line (LGV SEA): Concession contract signature and coming into force Wor
Slide 5: Revenue and profit growth
Revenue and profit growth First half Δ (in € millions) 2010 * 2011 actual H1 11/H1 10 Revenue** 14,771 17,323 +17.3% Cash flow from operations before tax and cost of 2,111 2,333 +10.5% financing (EBITDA) % of revenue** 14.3% 13.5% Operating profit from ordinary activities 1,360 1 569 +15.3% % of rev
Slide 6: South Europe Atlantic (SEA) high-speed line
South Europe Atlantic (SEA) high-speed line Concession contract signed with RFF on HSR 16 June and came into force on 30 June 2011 Existing lines Motorway Total investment: :7.8 billion Kilometre point of which works: :6.2 billion (within 73 months) VINCI share: :4.2 billion 50-year concession 302 k
Slide 7: Record order book: €30 billion at June 2011
Record order book: €30 billion at 30 June 2011 Change in order book (in € billions) France Order intake +18.7 Revenue International (14.8) Other +0.2 30.0 25.9 12.2 12.6 +16% 13.3 17.8 31 Dec. 2010 30 June 2011 Change (in € billions) at 30 June 2011 vs 31 Dec. 2010 France 17.8 34% International* 12.
Slide 8: 2011 management and financial policy
2011 management and financial policy Investment grade credit rating confirmed S&P: BBB+; Moody’s: Baa1/stable outlook Renewal of ‚corporate‛ credit facilities :4.5 billion, maturing 2016 Liquidity strengthened > :10 billion at 30 June 2011 Peace of mind for upcoming debt maturities 3Q11: :600 millio
Slide 9: 2011 outlook
2011 outlook Revenue: ~ +7% Motorway receipts < +4% Contracting revenue ~ +7-8% Margins Motorways (EBITDA) > 68.8% Contracting (EBIT) close to 4.5% Net income: ~ +5-6% Net Debt: slightly higher (:13.1 bn at 31/12/10) 9
Slide 10: Post 2011: quo vadimus?
VINCI = Post 2011: quo vadimus?
Slide 11: The strength of diversification
The strength of diversification 2010 Revenue by: Market Expertise 5% 13% 22% 19% 3% 37% 15% 12% 27% 9% 4% 3% 14% 23% Public Service Sector Motorways Other Concessions Electrical Energy IT Road work Quarries & Other Industry Retail/Other Residential Building Non-Res. Building Civil Engineering FM & R
Slide 12: The strength of VINCI Autoroutes
The strength of VINCI Autoroutes VINCI Autoroutes generates cash< % of % of (in € millions) H1 2010 H1 2011 Δ 11/10 revenue revenue Cash flow* 1,333 67.6% 1,403 68.3% + 5.2% of which ASF/Escota 949 66.8% 998 67.7% + 5.1% Cofiroute 376 70.2% 395 70.2% + 5.0% * Cash flow from operations before tax and
Slide 13: The strength of VINCI Autoroutes contracts
The strength of VINCI Autoroutes contracts Specific legal structure for changes in tax regime relating to motorway infrastructure has been consistently respected and applied: 2009: attempted increase in right-of-way tax (redevance domaniale) abandoned 2011: 100% compensation for increase in infr
Slide 14: What are we doing today in case times get tough?
What are we doing today in case times get tough? Exactly what we did in 2009: prudence and responsiveness Concessions CONCESSIONS CONTRACTING Contracting VINCI Autoroutes France Adapt structures and production Control operating expenses resources to anticipate market conditions Dialogue with gra
Slide 15: VINCI Longer Term Strategy
VINCI Longer Term Strategy: Grow Revenue, Expand Margins, Create Value by Pursuing international growth outside Europe in fast growing countries Strengthening synergies among the Group’s business lines Enhancing high technical value know-how Developing recurring revenue streams in contracting To get
Slide 16: Long-term Market Drivers
Long-term Market Drivers Urbanisation Energy Mobility Environment Important needs of infrastructure and public equipment in emerging markets Better acceptance of the ‘User-Payer’ principle and toll culture Development of PPP General ageing of public equipment in mature countries Increasing regulati
Slide 17: Appendixes
Appendixes Shareholder base at 30 June 2011 Additional information by business line Detailed consolidated financial statements
Slide 18: Shareholder base at June 2011
Shareholder base at 30 June 2011 31/12 30/06 2010 2011 Institutional investors 67.4% 65.1% France 23.9% 21.8% Rest of continental Europe 18.4% 17.9% North America 12.5% 13.2% United Kingdom 9.1% 8.5% Rest of the world 3.5% 3.7% Treasury shares 2.1% 4.1% Employees 9.0% 10.0% Qatari Diar 5.7% 5.6% Art
Slide 19: Appendixes: Concessions
VINCI “? Appendixes: Concessions
Slide 20: VINCI Autoroutes: resilience and visibility
VINCI Autoroutes: resilience and visibility Europe’s biggest motorway network 4,385 km under concession of which 4,310 km in service A86 ASF Escota Cofiroute* Arcour Duplex Network under 2,714 459 1,100 101 11 concession (km) % held by VINCI 100% 99% 83% 100% 83% No. of km in service 2,639 459 1,100
Slide 21: VINCI Autoroutes: key figures
VINCI Autoroutes: key figures ASF/ (in € millions) Total 2010 Cofiroute Arcour H1 2011 H1 2010 Escota Revenue 4,259 1,474 563 17 2,054 1,972 Cash flow from operations before 2,929 998 395 10 1,403 1,333 tax and cost of financing (EBITDA) as % of revenue 68.8% 67.7% 70.2% 58.1% 68.3% 67.6% Operating
Slide 22: VINCI Autoroutes: contractual framework for toll increases
VINCI Autoroutes: contractual framework for toll increases ASF Escota Cofiroute* Arcour End of concession 2033 2027 2031 2070 Minimum annual toll increase guaranteed until the end of the concession: 70% x i Current master plan 2007-2011 2007-2011 2011-2014 N/A - 2011 85% x i + 1.175% 85% x i + 1.2%
Slide 23: VINCI Park: key figures
VINCI Park: key figures (in € millions) 2010 H1 2010 S1 2011 Δ 11/10 1,416,000 spaces (of which 959,000 Revenue 596 289 301 4.2% outside France) managed in 12 - France 416 207 212 2.6% countries* - International 180 82 89 8.4% Op. profit from ordinary 111 59 69 17.5% 366,000 spaces under concessions
Slide 24: Other concessions & PPPs (1/2)
Other concessions & PPPs (1/2) End of VINCI Traffic Consoli- Country Type Name Description dation1 concession share risk Other concessions and PPPs in France France Stadium Stade de France, Paris 80,000 seats 2025 67% yes FC Tunnel Prado Carénage Road tunnel, Marseilles 2025 33% yes EM Energy Lucite
Slide 25: Other concessions & PPPs (2/2)
Other concessions & PPPs (2/2) End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Others concessions outside France Greece Bridge Rion–Antirion 2.9 km mainland- 2039 57.4% yes FC Peloponnese link Germany Motorway A4 Horselberg 45 km (A-Modell) 2037 50% yes EM C
Slide 26: Appendixes: Contracting
VINCI “? Appendixes: Contracting
Slide 27: Energy business line - Profile
Energy business line - Profile Market leader in France and a major player 2010 Revenue 2010 by geographical area in Europe in services associated with 5% energy and information technologies 3% 3% France 8% Infrastructure: power supply networks Germany (transmission and distribution), urban 4% Switze
Slide 28: Energy business line: first half highlights and key figures
Energy business line First half highlights and key figures Revenue: +43.1%, of which 5.6% organic growth France: good momentum in energy (transport and production) and telecommunications infrastructure; upturn in industrial sector VINCI Energies: good performance in Germany, the Benelux and Central
Slide 29: Eurovia - Profile
Eurovia - Profile 2010 Revenue by geographical area 300 divisions and subsidiaries: Construction, repair and maintenance 7% 1% 2% France of transport infrastructure (roads, rail 5% Central & Eastern tracks, airports, light rail, etc.) Europe 10% Urban development, signaling Germany United Kingdom St
Slide 30: Eurovia: first half highlights and key figures
Eurovia First half highlights and key figures Revenue: +13.7%, of which 10.4% organic growth France: steady business in public rail transport sector; traditional markets (coatings) tighter Growth in Poland, Germany and Slovakia; decline in the United Kingdom, Czech Republic and United States Operati
Slide 31: Construction - Profile
Construction - Profile 2010 Revenue by geographical area Wide variety of expertise in building and civil engineering: 5% France 12% United Kingdom Strong local presence in mainland and Central & Eastern Europe 4% overseas France (network of 470 profit Benelux 2% centres) and elsewhere (United Other
Slide 32: VINCI Construction: first half highlights and key figures
VINCI Construction First half highlights and key figures Revenue: +12.4%, of which 11.4% organic growth France: dynamic housing market; upturn in private non-residential sector; ramp-up of major civil engineering projects (Lyons metro, Bordeaux bridge, stadiums, etc.) Good performance of Soletanche
Slide 33: Appendixes: Detailed consolidated financial statements
Appendixes: Detailed consolidated financial statements
Slide 34: Consolidated revenue
Consolidated revenue 2010 H1 2010 Δ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 5,097 2,388 2,512 5.2% 5.1% VINCI Autoroutes 4,259 1,972 2,054 4.2% 4.2% VINCI Park 596 289 301 4,2% 2.7% Other concessions 242 127 157 23.7% 25.1% Contracting 28,150 12,339 14,792 19.9% 9
Slide 35: Consolidated revenue – France
Consolidated revenue – France 2010 H1 2010 Δ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 4,791 2,250 2,367 5.2% 5.2% VINCI Autoroutes 4,247 1,966 2,048 4.2% 4.2% VINCI Park 416 206 212 2.6% 2.5% Other concessions 129 78 106 37.2% 37.2% Contracting 15,911 7,115 8,703 2
Slide 36: Consolidated revenue – International
Consolidated revenue – International 2010 H1 2010 Δ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 306 138 146 5.5% 3.7% VINCI Autoroutes 12 6 6 ns ns VINCI Park 180 82 89 8.4% 3.3% Other concessions 114 50 51 2.5% 5.5% Contracting 12,239 5,223 6,089 16.6% 6.4% Energy bu
Slide 37: Operating profit from ordinary activities by entity
Operating profit from ordinary activities by entity 2010 % of H1 2010 % of H1 % of (in € millions) Δ 11/10 actual revenue* restated revenue* 2011 revenue* Concessions 2,094 41.1% 927 38.8% 1,004 40.0% 8.3% VINCI Autoroutes 1,923 45.2% 839 42.6% 893 43.5% 6.4% VINCI Park 111 18.6% 59 20.3% 69 22.9% 1
Slide 38: Net profit by entity
Net profit by entity 2010 % of H1 2010 (in € millions) H1 2011 Δ 11/10 actual revenue* restated Concessions 875 17.2% 388 435 12.1% VINCI Autoroutes 837 19.6% 342 382 11.7% VINCI Park 61 10.2% 28 37 30.1% Other concessions & concession (22) - 17 16 holding cos. Contracting 836 3.0% 287 362 26.2% Ene
Slide 39: Cash flow from operation before tax and cost of financing (EBITDA)
Cash flow from operation before tax and cost of financing (EBITDA) 2010 % of H1 2010 % of % of (in € millions) H1 2011 Δ 11/10 actual revenue* restated revenue* revenue* Concessions 3,197 62.7% 1,473 61.7% 1,557 62.0% 5.7% VINCI Autoroutes 2,929 68.8% 1,333 67.6% 1,403 68.3% 5.2% of which ASF/Escota
Slide 40: Net investments in operating assets
Net investments in operating assets 2010 H1 2010 (in € millions) H1 2011 Δ 11/10 actual restated Concessions 45 15 23 8 VINCI Autoroutes 15 5 9 4 VINCI Concessions 30 9 14 5 Contracting 647 313 283 (30) Energy business line 75 30 44 14 Eurovia 218 110 89 (21) VINCI Construction 354 174 151 (23) Hold
Slide 41: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs 2010 H1 2010 (in € millions) H1 2011 Δ 11/10 actual restated Concessions 852 325 490 165 VINCI Autoroutes 759 281 456 175 of which ASF / Escota 655 293 383 89 Cofiroute 99 (13) 73 86 VINCI Concessions 93 43 33 (10) of which VINCI Park 33 14 18 4 Contracting
Slide 42: Cash flow statement (1/2)
Cash flow statement (1/2) 2010 H1 2010 (in € millions) H1 2011 12 months restated Cash flow from operations 5,052 2,111 2,333 Change in WCR and current provisions (78) (808) (1,335) Income taxes paid (950) (516) (481) Net interest paid (693) (420) (376) Dividends received from equity-accounted entit
Slide 43: Cash flow statement (2/2)
Cash flow statement (2/2) H1 2010 (in € millions) 2010 H1 2011 restated Free cash flow (after investments) 1 919 (204) (602) Net financial investments (2,508)* (1,739)* (146) Other financial cash flows 14 11 9 Cash flow before movements in share capital (575) (1,932) (738) Capital increases and othe
Slide 44: Consolidated balance sheet
Consolidated balance sheet 30 June ’10 (in € millions) 31 Dec. ’10 30 June ’11 restated ASSETS Non-current assets – concessions 26,104 26,303 26,456 Non-current assets – other business lines 7,127 7,916 7,973 Current financial assets 38 48 39 Net cash managed 4,626 5,590 3,431 Total assets 37,895 39
Slide 45: Net financial debt by entity
Net financial debt by entity 30 June 2010 31 December Debt/ cash Δ vs (in € millions) 2011 restated 2010 flow* 31-12-2010 Concessions (15,877) (15,599) (15,864) 4.8 x (264) VINCI Autoroutes (14,143) (13,965) (14,292) 4.8 x (237) VINCI Park (794) (787) (760) 4.3 x 27 Other concessions (354) (385) (37
Slide 46: Breakdown of gross financial debt
Breakdown of gross financial debt Breakdown by lender type Breakdown of fixed/floating rate after hedging 30 June % of 31 Dec. 2011 total 2010 Fixed rate 9,709 55% 56% Capped/inflation-linked 2,685 15% 10% floating rate Total ‚protected‛ 12,394 70% 66% Floating rate 5,296 30% 34% 31-12-2010 30-6-201
Slide 47: 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 47