Eiffage SA · EURONEXT:FGR
Eiffage SA — H1 2016 Earnings Presentation
53 slides from Eiffage SA's earnings presentation, Aug 31, 2016
Slide 1: Financial analysts' meeting
Financial analysts’ meeting 31st August 2016
Slide 2: Highlights - Contracting
Highlights - Contracting Ongoing recovery of margins Energy Good acquisition dynamic Construction Upward inflection of the margin after a lowest point in 2015 Good backlog renewal Property Maintain a good level of reservations development 2
Slide 3: Highlights - Contracting
Highlights - Contracting Roads Stabilization of volume underway in France Civil engineering Upward inflection of order intake Metal Ongoing modernization of production facilities in Metal in France Brisk level of activity in Europe Integrated offering Major projects under control - BPL HSR, Grande A
Slide 4: Highlights - APRR & AREA
Highlights - APRR & AREA Exceptional events Network lengthening of 27 km • 15 km of motorways around Grenoble (A48/A480) • 10 km of motorways around Clermont-Ferrand (A75) • 2 km of roads in Saône-et-Loire (A406/RCEA) Operation Profitability improvement • Traffic increase of 4.1% • Decrease by 25% o
Slide 5: Highlights - Other concessions & PPP
Highlights - Other concessions & PPP Motorways • Further improvement in traffic (+6.3%) and profitability of the A65 concessions • Important traffic growth of « Autoroute de l’Avenir » in Senegal (+26.3%) PPP • Opening of Grand Lille Campus and Brittany digital Campus portfolio • Ongoing disposal of
Slide 6: Highlights – Group profile
Highlights – Group profile Innovation Continuation of the policy of innovation and modernization of the Group External growth Realization of small operations in France and neighbouring countries Shareholding Free float increase to over 61% of capital market profile Integration into the CAC Next 20,
Slide 7: Eiffage – June 2016
Eiffage – June 2016 Revenue €M Operating profit €M Net profit €M -1.6% +13.6% +68.4% 6,616 6,527 6,511 6,605 6,497 677 133 574 596 69 79 506 525 51 58 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 Change in WCR €M Financial ne
Slide 8: Outlook 2016
Outlook 2016 Slight decrease of activity New profit growth 8
Slide 9: Results by business line and financial results
Results by business line and financial results Christian Cassayre Chief Financial Officer 9
Slide 10: Revenue (excluding IFRIC 12)
Revenue (excluding IFRIC 12) BREAKDOWN CONCESSIONS / CONTRACTING (€M) BREAKDOWN BY GEOGRAPHICAL AREA (€M) 6,605 6,497 - 1.6% 6,605 6,497 -1.6% 165 175 1,159 +6.1% 1,220 + 5.4% +4.9% 1,010 1,057 +4.7% 5,430 5,265 5,446 5,277 - 3.1% -3.0% H1 2015 H1 2016 ∆16/15 H1 2015 H1 2016 ∆16/15 Concessions Contr
Slide 11: Contracting revenue (excluding IFRIC 12)
Contracting revenue (excluding IFRIC 12) CONTRACTING BREAKDOWN BREAKDOWN BY DIVISION (€M) BY GEOGRAPHICAL AREA (€M) AND % OF TOTAL 5,446 - 3.1% -3.5% 5,446 5,277 -3.1% 5,277 155 (3%) 163 (3%) +5.2% +4.7% 1,650 +4.8% +5.1% 1,010 (19%) +4.7% 1,729 1,057 (20%) 2,002 -3.8% -5.3% 4,281 (78%) 4,057 (77%)
Slide 12: Operating profit on ordinary activities and margins
Operating profit on ordinary activities and margins Growth of operating profit on ordinary activities of 13.6% to €M 677 (+€M 81) Operating margin increase by 140 bps to 10.4% of revenue H1 2015 H1 2016 €M % revenue €M % revenue ∆ 16/15 Construction 58 3.5% 64 3.7% +10.3% Infrastructures -43 -2.1% -
Slide 13: Evolution of the operating margin
Evolution of the operating margin Continuous growth of the operating profit and margin 677 596 574 10.4% 525 506 9.0% 8.8% 8.0% 7.6% H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 Operating profit (€M) and margin (%) 13
Slide 14: Construction: activity and results
Construction: activity and results Improvement of the operating margin up 20 bps to 3.7% Revenue up 4.8% (+5.1% lfl) REVENUE (€M) - OPERATING MARGIN ON ORDINARY ACTIVITIES France -3.7%, International +9.6% Property development Record high in reservations for the first half-year with 1,913 un
Slide 15: Crocodile jaw at work on the Aix-en-Provence Campus
Crocodile jaw at work on the Aix-en-Provence Campus 15
Slide 16: Infrastructures: activity and results
Infrastructures: activity and results Stable operational margin at -2.1% REVENUE (€M) - OPERATING MARGIN ON ORDINARY ACTIVITIES Revenue down 3.8% (-5.3% lfl) France -7.8%, International +7.6% 2,038 2,078 2,072 Ongoing stabilization of volume in Roads 2,002 1,925 Margin evolution Roads: ong
Slide 17: Eiffage team on the deck over the summer
Eiffage team on the deck over the summer 17
Slide 18: Energy: activity and results
Energy: activity and results Continuous growth of the operating margin over the last 5 years (+ 20 bps over the semester to 3.0%) Revenue down 9.5% (- 9.6% lfl) REVENUE (€M) - OPERATING MARGIN ON ORDINARY ACTIVITIES France -10.7% of which -12% due to the end of Cestas project • External growth t
Slide 19: Maintenance contract covering 1,513 post offices
Maintenance contract covering 1,513 post offices 19
Slide 20: Concessions: activity and results
Concessions: activity and results Increase of the operating margin up 360 bps to the high level of 50.5% Revenue up 5.3% (+5.4% lfl) REVENUE (€M) - OPERATING MARGIN ON ORDINARY ACTIVITIES APRR +5.6% at €M1,116 (details next slides) Motorways concessions (exc. APRR): +12.2% at €M 58.1 1,159 1,2
Slide 21: BPL HSR - Maintenance gantry
BPL HSR - Maintenance gantry 21
Slide 22: APRR: activity and results
APRR: activity and results Continuous growth of EBITDA but slight decrease of EBITDA margin due to taxation Revenue (Exc. Ifric 12) up 5.6% Total traffic increase up 4.1% (LV +3.7% and HGV +6.0%) REVENUE (€M) – EBITDA / REVENUE Application of the contractual toll increase in 2016 1,057 1,116 1
Slide 23: Nap bar on the « Poulet de Bresse» rest area on the A39
Nap bar on the « Poulet de Bresse» rest area on the A39 23
Slide 24: Consolidated income statement
Consolidated income statement Significant increase of results during the first half-year Decrease in the financial expenses of 20% In €M H1 2015 H1 2016 Δ 16/15 Revenue(1) 6,603 6,497 -1.6% Operating profit on ordinary activities 596 677 +13.6% Other operating income and expenses (49) (28) Operating
Slide 25: Consolidated and simplified balance sheet
Consolidated and simplified balance sheet In €M 18,342 18,399 ASSETS Non Current assets Concessions 13,951 13,997 Non Current assets Holding & Contracting 4,391 4,402 LIABILITIES 18,342 18,399 3,472 3,656 Capital and reserves FND Exc. Mtm of the swaps and CNA 11,591 11,868 WCR 710 309 Other liabilit
Slide 26: Financial net debt structure (€M)
Financial net debt structure (€M) 12,579 12,635 166 12,234 27 607 12,014 11,591 300 11,868 300 FND Holding 12,386 7 & Contracting 25 12 12,038 386 12 386 88 11,925 12,003 11,938 11,780 FND Concessions with recourse -4 -31 -334 FND Concessions without recourse 31/12/13 31/12/14 31/12/15 30/06/2014 30
Slide 27: Financial net debt evolution (€M)
Financial net debt evolution (€M) 297 11 (90) 57 11,868 11,591 (981) 541 67 Acquisitions Variations Dividends & without & 375 Net Capex disposals flows of Net Capex Capital Concessions Contracting funds transactions & Holding and Interest & misc. EBITDA taxes paid Change in WCR : CAPEX Holding & Con
Slide 28: Activity and commercial dynamism
Activity and commercial dynamism Strong order book at €12.1bn up 1.6% over one year (+4.7% Exc. BPL) ORDER BOOK (€bn) AND EQUIVALENT NUMBER OF BREAKDOWN BY DIVISION (€bn) MONTHS OF THE CONTRACTING TURNOVER 6 MONTHS VARIATIONS 12.3 11.8 11.9 12.1 12.1 +5.7% 11.4 11.4 4.8 +1.4% 4.7 12.4 12.2 12.2 12.0
Slide 29: Appendices
Appendices =) EIFFAGE 29
Slide 30: Group shareholding structure
Group shareholding structure SHAREHOLDERS AT 31/12/2015 (95.4 M Shares) SHAREHOLDERS AT 30/06/2016 (98.1 M Shares) BlackRock BlackRock 6.3% 6.1% Free Float Free Float 51.2% BPI 61.2% 5.7% BPI Treasury 13.9% shares 4.8% Treasury shares 4.9% Employees Employees 22.2% 23.7% 30
Slide 31: Revenue (excluding IFRIC 12)
Revenue (excluding IFRIC 12) REVENUE BREAKDOWN (€M) REVENUE BREAKDOWN IN EUROPE EXCLUDING FRANCE (€M) Spain 145 Germany Poland 307 87 Europe Exc. France 1,057 France Others 5,265 66 International Exc. Europe 175 Benelux 452 31
Slide 32: Consolidated balance sheet - Assets
Consolidated balance sheet - Assets In €M 30/06/2015 31/12/2015 30/06/2016 Property, plant and equipment 1,456 1,481 1,538 Investment property 6 4 4 Fixed assets held under concessions 11,844 11,701 11,537 Goodwill on acquisition 2,884 2,904 2,907 Other intangible assets 171 172 172 Investment accou
Slide 33: Consolidated balance sheet - Equity and liabilities
Consolidated balance sheet - Equity and liabilities In €M 30/06/2015 31/12/2015 30/06/2016 Share capital 369 382 392 Consolidated reserves 2,895 2,789 3,037 Profit & losses directly accounted for in equity (304) (286) (309) Net profit for the period 79 312 133 Total capital and reserves, attributabl
Slide 34: Concession financial net debt breakdown
Concession financial net debt breakdown Non recourse debt raised in dedicated SPVs for €11.8bn(*) NON RECOURSE FND BREAKDOWN (€M) NON RECOURSE FND STRUCTURE (€M) Eiffarie Macquarie 1,219 quasi equity APRR and 239 APRR Eiffarie 7,308 8,766 Millau viaduct A65 580 Other 823 motorway concessions Autorou
Slide 35: Consolidated income statement
Consolidated income statement In €M 30/06/2015 31/12/2015 30/06/2016 Revenue 6,603 14,060 6,567 Other income 1 6 2 Raw materials and consumables used (1,292) (2,775) (1,152) Staff costs (1,659) (3,240) (1,642) Other expenses (2,543) (5,463) (2,653) Taxes other than corporate tax (178) (426) (186) Am
Slide 36: Consolidated cash flow statement
Consolidated cash flow statement In €M 30/06/2015* 31/12/2015 30/06/2016 Cash flow generated by operations 567 1,261 603 Change in working capital in operating activities (394) 46 (375) Change in working capital interests and taxes (177) (77) (163) Net Capital expenditure Contracting & Holding (44)
Slide 37: Group financial structure
Group financial structure In €M 30/06/2014 31/12/2014 30/06/2015 31/12/2015 30/06/2016 Concessions - Financial debt 11,341 11,458 11,411 11,529 11,541 - Macquarie quasi equity 662 580 527 396 239 Sub-total without recourse 12,003 12,038 11,938 11,925 11,780 - With recourse 25 7 (4) - - Concessions f
Slide 38: Financial expenses and results
Financial expenses and results In €M Δ 16/15 30/06/2015 31/12/2015 30/06/2016 Concessions (333) (612) (267) -19.8% of which: APRR (145) (252) (110) -24.1% Eiffarie & Financière Eiffarie (126) (233) (91) -27.5% Financière Eiffarie Group (270) (485) (201) -25.4% A'Liénor (A65) (11) (20) (8) -27.3% VP1
Slide 39: Operational Capex
Operational Capex In €M 30/06/2015* 31/12/2015 30/06/2016 Contracting and Holding net Capex 44 111 67 Concessions Capex 300 637 297 Total operational Capex 344 748 364 * Pro forma of Capex reclassification 39
Slide 40: APRR - Traffic evolution
APRR - Traffic evolution 115 110 LV 105 100 Total 95 HGV 90 85 80 Km travelled, 12 months rolling average, rebased to Q4 2007 40
Slide 41: APRR & AREA: Tariff formulae 2016 - 2023
APRR & AREA: Tariff formulae 2016 - 2023 Contractual tariff increase and compensations 2017 2018 2019 2020 2021 2022 2023 Tariff increase 85% x I 85% x I 70% x I 70% x I 70% x I 70% x I 70% x I 1st of February 2016 + + + + + + + APRR 1.23% 0.59% 1.13% 0.25% 0.25% 0.25% 0.25% 0.25% AREA 1.27% 0.62% 1
Slide 42: APRR & AREA - 2015 & 2016 evolutions
APRR & AREA - 2015 & 2016 evolutions Concessions length Tariffs Development of investments Regulation Motorway stimulus Package Compensation of the 2015 Establishment of an and Integration of the Tunnel tariff freeze by an additional independent authority €720M of investments Maurice Lemaire in the
Slide 43: APRR & AREA - 2014 - 2018 Management contracts
APRR & AREA - 2014 - 2018 Management contracts €500M of capex covering growth and modernization of the network Major infrastructure projects Construction of the A89-A6 junction north of Lyon A43 / A41 / high speed urban road of Chambéry Three widenings on the A6 at Auxerre (southbound), on t
Slide 44: APRR & AREA - Stimulus plan
APRR & AREA - Stimulus plan €720M of Capex covering growth and modernization of the network Concessions contracts lengthening: APRR +25 months, AREA +45 months Major infrastructure projects Reconfiguration of three motorways interchanges: • A36 / N1019 / D437 Sévenans interchange • A6 / A406 /
Slide 45: APRR & Eiffarie – Financial structure (€M)
APRR & Eiffarie – Financial structure (€M) 9,790 9,596 9,496 708 9,062 9,229 580 662 527 8,766 396 239 Macquarie 2,331 1,246 1,203 2,220 2,203 1,219 quasi equity Eiffarie 7,420 7,499 7,308 6,751 6,696 6,731 APRR 31/12/2013 31/12/2014 31/12/2015 30/06/2014 30/06/2015 30/06/2016 Exc. Mtm of the CNA de
Slide 46: APRR - Debt profile
EMTN bonds details APRR - Debt profile Amount in €M Coupon Maturity Yield on 30/06/2016 1,000 5% 12/1/2017 0.011% Debt profile as at 30/06/2016 (€M) 500 5.125% 18/1/2018 0.011% 500 4.875% 21/1/2019 0.139% 500 Eur3m+0.75% 31/3/2019 500 Eur3m+0.70% 3/1/2020 500 2.25% 16/1/2020 0.200% 700 1.125% 15/1/2
Slide 47: PPP life cycle
PPP life cycle Eiffage Financial investor Value Financial structuring PPP contracts signing Length 1 3 to 6 1 to 2 15 to 20 in years TENDER CONSTRUCTION / OPERATION OPERATION CAPEX RAMP UP Call of tender 5% - 10% Equity Sale of equity 90% - 95% Debt Preservation of O&M contract Construction contract
Slide 48: Assets in Concessions
Assets in Concessions Name Type Country End of concession Status % Shares Consolidation method APRR Toll Concession FR 2035/2036 Operational 50.10% Full consolidation A65 Toll Concession FR 2067 Operational 65.00% Full consolidation Millau Viaduct Toll Concession FR 2079 Operational 51.00% Full cons
Slide 49: Assets in Concessions
Assets in Concessions Carrying value of assets held under concession (€M)* 30/06/2015 31/12/2015 30/06/2016 APRR 10,603 10,469 10,360 A65 1,017 1,013 1,011 Millau viaduct 367 365 363 Norscut motorway 43 18 20 Prado Carénage tunnel 21 23 22 Prado Sud tunnel 8 8 9 Autoroute de l’Avenir motorway 73 93
Slide 50: Revenue of the first half-year (€M)
Revenue of the first half-year (€M) Variations 30/06/2015 30/06/2016 Reported Like In €M basis for like CONSTRUCTION 1,650 1,729 + 4.8% +5.1% of which Property 305 331 INFRASTRUCTURES 2,002 1,925 -3.8% -5.3% ENERGY 1,794 1,623 -9.5% -9.6% TOTAL CONTRACTING 5,446 5,277 -3.1% -3.5% CONCESSIONS (hors I
Slide 51: Revenue 2nd quarter 2015 vs 2nd quarter 2016 (€M)
Revenue 2nd quarter 2015 vs 2nd quarter 2016 (€M) 2nd quarter 2015 2nd quarter 2016 Variation In €M CONSTRUCTION 861 917 +6.5% of which Property 175 206 INFRASTRUCTURES 1,158 1,112 -4.0% ENERGY 937 845 -9.8% ______________ ________________ ____________ TOTAL CONTRACTING 2,956 2,874 -2.8% CONCESSIONS
Slide 52: Investor relations contact and Agenda
Investor relations contact and Agenda Xavier Ombrédanne xavier.ombredanne@eiffage.com Phone: +33 (0)1 71 59 10 56 Register to receive press release at http://www.eiffage.com/communiques-de-presse Eiffage APRR rd Quarterly information and turnover for the 3 quarter 2016 07.11.2016 20.10.2016 th Quart
Slide 53: Disclaimer
Disclaimer This presentation may contain forward-looking statements and information about the financial situation, operating results, activities and development strategy of Eiffage. These statements and this information are based on assumptions that may prove incorrect and that are subject to major