Vinci SA · EURONEXT:DG
Vinci SA — Debt Investor Presentation (November 2011)
72 slides from Vinci SA's debt investor presentation, November 2011
Slide 1: Presentation to Bond Investors
Presentation to Bond Investors November 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: Table of contents
Table of contents Page Executive summary 4 Corporate structure 5-6 Key figures at 31/12/2010 7-15 2011 outlook and key figures at 30/09/2011 16-17 Strategy 18-20 Stock market indicators 21-22 Financial Policy and Data 23-32 Appendixes 33 Organizational Structure 34 Business Lines 35-57 2011 half yea
Slide 4: Executive summary
Executive summary Corporate Structure Key Figures Outlook Strategy Stock Market Indicators
Slide 5: VINCI: World Leader in Concessions and Contracting
VINCI: World Leader in Concessions and Contracting Concessions Contracting French Toll Roads Parking Facilities Construction Transportation Infrastructure Road & Rail Works Large Public Equipment Electrical Contracting VINCI designs, finances, builds and manages: Public and private buildings and equ
Slide 6: Simplified Organisation Chart
Simplified Organisation Chart 2010 Revenue (in € million) 33,376 CONCESSIONS CONTRACTING 5,097 28,150 VINCI VINCI VINCI VINCI AUTOROUTES CONCESSIONS ENERGIES EUROVIA CONSTRUCTION 4,259 838 7,102 7,930 13,118 Workforce at 31 December 2010 (~180 000 employees) 8,493 7,571 58,778 39,754 64,338 6
Slide 7: VINCI: 2010 Key figures
VINCI: 2010 Key figures 2010 of which of which (in € millions) actual Concessions Contracting Revenue* 33,376 5,097 28,150 % international 37% 6% 43% Cash flow from operations (EBITDA) 5,052 3,197 1,766 % of revenue* 15.1% 62.7% 6.3% Operating profit from ordinary activities 3,434 2,093 1,257 % of r
Slide 8: Balanced generation and resilience of Net income and Free cash flow
Balanced generation and resilience of Net income and Free cash flow from both Concessions and Contracting Net income (in € million) Free cash flow 2,276* 1,776 1,591 1,596 2,026 2,075 1,919 608 752 921 946 817 779 848 884 801 836 1,336 1,001 1,033 903 16 92 (110) 82 322** 322** 70 2009 2009 2008 200
Slide 9: A steady deleveraging since 2008 across the economic cycle
A steady deleveraging since 2008 across the economic cycle 31 December 31 December 31 December 31 December (in € million) 2009 2009 2010 2008 published restated * 15,371 13,684 13,130 13,060 Concessions Contracting 15,947 15,960 15,688 15,599 Holding cos & misc. 2,419 1,063 1,059 416 (2,995) (3,339)
Slide 10: Balance sheet strengthened
Balance sheet strengthened 31 Dec. ‘09 31 Dec. ‘09 31 Dec. ‘10 (in € millions) published restated EQUITY & LIABILITIES 10 440 10 467 13 025 Equity 1 401 1 443 1729 Non-current provisions and other long-term liabilities 19 706 18 650 19 017 Borrowings (A) WCR and current provisions 6 248 5 936 6 453
Slide 11: Concessions
Concessions VINGI a”
Slide 12: Concessions
Concessions Concessions 2010 Revenue: €5,097 million 2010 Net income: € 875 million 2010 Free Cash Flow: € 946 million VINCI Autoroutes: 4,385km network (half of French motorways under concession) VINCI Concessions develops and operates a unique portfolio of transport infrastructure and public facil
Slide 13: Contracting
Contracting 13
Slide 14: Contracting
Concessions Contracting 2010 Revenue: €28,150 million 2010 Net income: € 836 million 2010 Free Cash Flow: € 903 million VINCI Energies: European leader for electrical contracting, energy services and major player in facility management High service content solutions in electricity, information, ther
Slide 15: Largely diversified markets and expertises
Largely diversified markets and expertises 2010 Revenue by: Market Expertise 5% 13% 22% 19% 3% 37% 15% 12% 27% 9% 4% 3% 14% 23% Motorways Other Concessions Electrical Energy IT Public Service Sector Road work Quarries & Other Industry Retail/Other Residential Building Non-Res. Building Civil Enginee
Slide 16: 2011 outlook
2011 outlook Revenue: ~ +7% vs 2010 Motorway receipts < +4% Contracting revenue ~ +7-8% Margins Motorways (EBITDA) > 68.8% (2010 achievement) Contracting (EBIT) close to 4.5% (2010 achievement) Net income: ~ +5-6% vs 2010 Net Debt: slightly up vs 2010 (€13.1 bn at 31/12/10) 16
Slide 17: Key financial information as of 30 September 2011
Key financial information as of 30 September 2011 30 September 30 September ∆ 11/10 (in € millions) 2010 2011 actual comparable restated** actual Concessions 3,905 4,071 4.3% 4.3% Contracting 20,157 22,853 13.4% 6.6% Energies 4,831 6,238 29.1% 5.6% Eurovia 5,827 6,350 9.0% 6.0% Construction 9,499 10
Slide 18: 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 Rigorous operating cost control resources to anticipate market conditions Dialogue with gr
Slide 19: 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 20: 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 regulatio
Slide 21: Shareholder base at 30 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% 3.7% 4.1% 8.5% 10.0% Rest of continental Europe 18.4% 17.9% North America 12.5% 13.2% 5.6% United Kingdom 9.1% 8.5% 13.2% 3.7% Rest of the world 3.5% 3.7% Treasury shares 2.1% 4.1% 11.5% Emp
Slide 22: Stock market indicators
Stock market indicators Market cap as of 31 October 2011: €20 billion 15th market cap of CAC 40 Indexes: CAC 40, Euronext 100, Euronext FAS IAS, FTSEurofirst 80, Europe Dow, DJ Euro Stoxx 50, DJ Euro Stoxx Construction & Materials and Aspi Eurozone Share price over 24 months 45 40 VINCI CAC 40 35 Eu
Slide 23: Financial Policy and Data
Financial Policy and Data Financial policy objectives
Slide 24: Constant and conservative financial policy
Constant and conservative financial policy : Protecting VINCI’s credit rating Keeping strong liquidity level Lengthening average maturity of gross financial debt Diversifying sources of medium and long-term financing Limiting the Group’s exposure to interest rates changes through a cautious hedging
Slide 25: Protecting VINCI's credit rating (1/2)
1- Protecting VINCI’s credit rating (1/2) Long term credit ratings of VINCI unchanged at BBB+/Baa1 since they have been granted in April/May 2002 : Fitch S&P Moody's (not sollicited) LT Outlook CT LT Outlook CT LT Outlook CT VINCI BBB+ STABLE A-2 Baa1 STABLE P -2 BBB+ STABLE F2 Constant outperforman
Slide 26: Protecting VINCI's credit rating (2/2)
1- Protecting VINCI’s credit rating (2/2) S&P on Vinci’s BBB+ rating, January 2011: « Strong market positions in a wide variety of concession and construction activities » « Prudent debt management policy with manageable refinancing needs, a solid cash position and abundant long-term committed bank
Slide 27: Keeping strong liquidity level
2- Keeping strong liquidity level Liquidity position : ~€11.7 bn (as of 30 September 2011) : Net Cash Managed : ~ €5 bn Unused confirmed bank credit lines : €6.7 bn Renewal of all corporate credit facilities maturing in 2011 and 2012 finalised in H1 2011: Cofiroute: new €500 million credit line matu
Slide 28: Lengthening average maturity of gross financial debt
3- Lengthening average maturity of gross financial debt Average maturity of gross financial debt at 30 September 2011: 6.5 years (of which concessions: 7.5 years) 3 000 VINCI Group debt maturity profile (€ million) 2012 2013 2 500 2 000 1 500 1 000 500 0 Q4 S1 '12 S2 '12 S1 '13 S2 '13 2 014 2 015 2
Slide 29: Diversifying medium and long-term sources of financing
4- Diversifying medium and long-term sources of financing Reinforce « disintermediation » by refinancing the bulk of Breakdown of LT gross maturing CNA and bank loans in the bond market debt by lender type 2007 : EMTN Programme set up for ASF (€6 bn) 19% 2011 : EMTN Programme set up for VINCI (€3 bn
Slide 30: Limiting exposure to interest rate changes through hedging
5- Limiting the Group’s exposure to interest rates changes through a cautious hedging policy A significant portion of the debt is kept at fixed rate… …while maintaining a controlled sensitivity to floating rates, in order to hedge the structural excess cash position generated by contracting activiti
Slide 31: Dividend policy and Share buy-back
6- Dividend policy and Share buy-back Moderate dividend policy : Pay-out ratio at 50% since 2006 €670 million paid in H1 2011 Interim dividend for 2011 of €0.55 per share decided by the Board of Directors on 30 August 2011 -> up 5.8% (€0.52 per share in December 2010) Share buy-back programme Limite
Slide 32: VINCI Holding: a sound financial situation
7 - VINCI Holding: a sound financial situation Strong and resilient revenues from Low leverage (new debt aiming only at investments in subsidiaries and affiliates refinancing existing debt at maturity) Income from investments in subsidiaries and affiliates (excluding extraordinary dividends) VINCI H
Slide 33: Appendixes
Appendixes Organisational structure VINCI’s business lines 2011 Half year figures Additional financial information
Slide 34: Organizational Structure
Organizational Structure (*) 34
Slide 35: VINCI's business lines
VINCI Ws VINCI’s business lines
Slide 36: Concessions
VINCI Ws Concessions
Slide 37: Concessions: 2010 Key figures
Concessions: 2010 Key figures 2010 VINCI VINCI (in € millions) Concessions Autoroutes Concessions Revenue* 5,097 4,259 838 Cash flow from operations before cost of 3,197 2,929 268 financing and tax (EBITDA) % of revenue* 62.7% 68.8% 31.9% Operating profit from ordinary activities 2,093 1,923 171 % o
Slide 38: VINCI Autoroutes
VINCI “— VINCI Autoroutes
Slide 39: 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 40: VINCI Autoroutes: 2010 key figures by network
VINCI Autoroutes: 2010 key figures by network Total (in € millions) 2009 ASF/Escota Cofiroute Arcour 2010 Revenue 4,095 3,074 1,150 35 4,259 Cash flow from operations before cost 2,807 2,102 807 22 2,929 of financing and tax (EBITDA) as a % of revenue 68.5% 68.4% 70.2% 62.2% 68.8% Operating profit f
Slide 41: VINCI Autoroutes toll revenue growth
VINCI Autoroutes Toll revenue growth as of 30 September 2011: 3,5% Traffic growth on stable network +0.3% New sections (A86 Duplex & Arcour) +0.4% Toll price and other effects +2.8% Toll revenue +3.5% (9M 2011 vs 9M 2010) Change in traffic over 12 rolling months (number of km travelled) Light vehicl
Slide 42: A clear and protective legal framework
A clear and protective legal framework The concession contracts and their amendments define the overall contractual framework and the concessionaire’s responsibilities… Finance, design and build the structures under concession and related facilities Respect opening deadlines for the sections under c
Slide 43: 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 44: Parameters governing motorway traffic levels
Parameters governing motorway traffic levels Elasticity LV traffic Demographics approx. +1.0 Living standards > + 1.0 Fuel prices approx. – 0.3 Level of tolls approx. -0.3 Individual behaviour (attitude to car) non quantifiable Urbanisation impact > 0 HV traffic GDP (manufactured goods) +1.1 Level o
Slide 45: 2011-2020 investment programme
2011-2020 investment programme Investments scheduled from 2011 (in € billion) 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 2011 2012 2013 2014 2015 2016 2017 2018 45
Slide 46: VINCI Concessions
VINCI “? VINCI Concessions
Slide 47: VINCI Park: key figures
VINCI Park: key figures (in € millions) 2010 H1 2010 S1 2011 ∆ 11/10 1,416,000 spaces (of which 959,000 Revenue 596 289 301 4.2% outside France) managed in - France 416 207 212 2.6% 12 countries* - International 180 82 89 8.4% Op. profit from ordinary 111 59 69 17.5% 366,000 spaces under concessions
Slide 48: Other concessions & PPPs (1/3)
Other concessions & PPPs (1/3) End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 VINCI Airports Phnom Penh, Siem Reap Cambodia Airport 3 airports under concession 2040 70% yes FC & Sihanoukville France Airport Chambéry-Savoie Public service contract 2011 99% y
Slide 49: Other concessions & PPPs (2/3)
Other concessions & PPPs (2/3) Country Type Name Description End of VINCI Traffic Consoli- concession share risk dation1 Other concessions and PPPs in France France Stadium Stade de France 80,000 seats, Paris 2025 67% yes FC Tunnel Prado Carénage Road tunnel, Marseilles 2025 33% yes EM Energy Lucite
Slide 50: Other concessions & PPPs (3/3)
Other concessions & PPPs (3/3) 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 51: 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 52: Contracting
VINCI “_ Contracting
Slide 53: Contracting: 2010 Key figures
Contracting: 2010 Key figures 2010 VINCI (in € millions) Energy Eurovia Contracting Construction Revenue 28,150 7,102 7,930 13,118 of which France 15,911 4,439 4,568 6,904 of which International 12,239 2,663 3,362 6,214 Cash flow from operations before cost of 1,766 416 470 880 financing and tax (EB
Slide 54: Record order book: €30 billion at 30 September 2011
Record order book: €30 billion at 30 September 2011 Change in order book* (in € billions) Order intake Revenue France +26,9 (22,9) International Other 0.1 30.0 25.9 12.2 12.6 +16% 17.8 13.3 31 Dec. 2010 30 September 2011 at 30 September Nb of months of Change (in € billions) 2011 average activity vs
Slide 55: Energy business line - Profile
Energy business line - Profile Market leader in France and a major player 2010 Revenue by geographical area in Europe in services associated with energy and information technologies France Infrastructure: power supply networks Germany (transmission and distribution), urban Switzerland lighting, tran
Slide 56: Eurovia - Profile
Eurovia - Profile 2010 Revenue by geographical area 300 divisions and subsidiaries: Construction, repair and maintenance France of transport infrastructure (roads, rail Central & Eastern tracks, airports, light rail, etc.) Europe Urban development, signaling Germany United Kingdom Strategy of vertic
Slide 57: Construction - Profile
Construction - Profile 2010 Revenue by geographical area Wide variety of expertise in building and civil engineering: France United Kingdom Strong local presence in mainland and Central & Eastern Europe overseas France (network of 470 profit Benelux centres) and elsewhere (United Other Europe Kingdo
Slide 58: 2011 half year results
VINCI Ws 2011 half year results
Slide 59: Strong growth in revenue and profit
Strong growth in revenue and profit First half ∆ (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
Slide 60: 36% of revenue generated outside France
36% of revenue generated outside France (41% in Contracting) H1 2011 revenue by geographical area H1 2011 ∆ 11/10 Constant (in €m) Actual exchange rates Central & Eastern France 11,126 17.8% 17.8% Europe Central & Eastern Europe 1,027 22.9% 19.8% United Kingdom Germany United Kingdom 1,011 16.5% 16.
Slide 61: Income statement
Income statement First half ∆ 11/10 (in € millions) 2010 restated 2011 actual Revenue 14,771 17,323 +17.3% Operating profit from ordinary activities 1,360 1,569 +15.3% % of revenue 9.2% 9.1% Operating profit 1,389 1,554 +11.9% Financial income/(expense) (321) (304) - Income tax expense (306) (380) -
Slide 62: Improvement in operating margins
Improvement in operating margins as % of revenue and in € millions VINCI Autoroutes Contracting EBITDA*/revenue: Op. profit** /revenue: 68.3% vs 67.6% at H1 2010 3.7% vs 3.3% at H1 2010 Energy Eurovia Construction business line 283 1,403 258 1,333 223 149 67.6% 68.3% 5.2% 5.4% 4.2% 4.1% (2) 36 -0.1%
Slide 63: Growth in cash flow (EBITDA)
Growth in cash flow (EBITDA) Concessions Contracting Total VINCI Group +10.5% +5.7% 2,333 2,111 1,557 1,473 153 VINCI 139 Concessions +24.9% VINCI 762 1,333 1,403 Autoroutes 610 228 Energy 166 131 Eurovia 85 359 403 Construction H1 10 H1 11 H1 10 H1 11 H1 10 H1 11 EBITDA/ revenue 61.7% 62.0% 4.9% 5.
Slide 64: Change in working capital requirement and current provisions
Change in working capital requirement and current provisions (in € billions) H1 2010 H1 2011 ∆ Change in WCR and current provisions (0.8) (1.3) (0.5) * of which VINCI Construction (0.4) (0.7) (0.3) Eurovia (0.3) (0.4) (0.1) Energy business line (0.1) (0.3) (0.1) * of which Changes in consolidation s
Slide 65: First half 2011 change in net financial debt
First half 2011 change in net financial debt (in € billions) Dividends & share buy- Cash flow backs Operating (14.6) (EBITDA) (1.2) investments (13.1) +2.3 ∆ WCR (0.3) Capital (1.3) increase & Investments misc. Interest & Concessions: (0.5) +0.4 taxes paid Financial: (0.1) (0.8) (0.1) (0.6) (0.8) Ne
Slide 66: Additional financial information
Additional financial information
Slide 67: Cash flow statement (1/2)
Cash flow statement (1/2) 2009 2010 (in € millions) Concessions Contracting restated actual Cash flow from operations 4,771 5,052 3,197 1,766 Change in WCR and current provisions 524 (78) (8) (80) Income taxes paid (644) (950) (669) (243) Net interest paid (762) (693) (687) (15) Dividends received f
Slide 68: Cash flow statement (2/2)
Cash flow statement (2/2) 2009 2010 (in € millions) restated actual Free cash flow 2,276 1,919 Net financial investments (incl. net financial debt) (96) (2,425)* Other financial cash flows (31) (68) Cash flow before movements in share capital 2,148 (575) Capital increases & other operations 621 1,65
Slide 69: 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 70: Net financial debt by entity
Net financial debt by entity 30 June 2010 31 December Debt/ cash ∆ vs (in € millions) 30 June 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) (
Slide 71: Financial Covenants
Financial Covenants Some financing agreements include early repayment clauses applicable in the event of non- compliance with financial ratios, of which the main ones are described below : Financing Authorized Amoun Ratios Threshold Ratios at Amounts ts used agreements 31/12/10 (in M€) (in M€) VINCI
Slide 72: Contacts
Contacts Christian Labeyrie christian.labeyrie@vinci.com Tel: +33 1 47 16 35 23 Marie Bastart marie.bastart@vinci.com Tel: +33 1 47 16 45 81 72