Vinci SA · EURONEXT:DG
Vinci SA — H1 2013 Earnings Presentation
60 slides from Vinci SA's earnings presentation, Jul 31, 2013
Slide 1: 2013 first-half results
2013 first-half results 31 July 2013 meeting
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 th
Slide 3: Our thoughts are with them!
Thierry Dol, Marc Feret and Pierre Legrand, our colleagues from Sogea-Satom (VINCI Construction), along with Daniel Larribe, an employee of Areva, were taken hostage in Niger on 16 September 2010 Our thoughts are with them!
Slide 4: Contents
Contents 1. 2013 first-half highlights 2. Financial data 3. ANA acquisition 4. Outlook 4
Slide 5: 2013 first-half highlights
2013 first-half highlights Xavier Huillard – Chairman and CEO
Slide 6: Concessions: Signature of the ANA acquisition contract (Portugal)
Concessions Signature of the ANA acquisition contract (Portugal) February 2013 Signature of the acquisition contract for ANA, the Portuguese airports concession holder: a major step in VINCI’s airport sector international development strategy 6
Slide 7: Financial closing of the Ohio East End Crossing project (USA)
Concessions Financial closing of the Ohio East End Crossing project (USA) March 2013 $677 million private activity bond issuance to finance the Ohio East End Crossing in Indiana, USA 7
Slide 8: Contracting: Fondation Louis Vuitton (France)
Contracting Fondation Louis Vuitton (France) VINCI constructing the Fondation Louis Vuitton in Paris 8
Slide 9: Chernobyl containment dome (Ukraine)
Contracting Chernobyl containment dome (Ukraine) VINCI constructing a new arch-shaped containment dome to cover the existing Reactor 4 containment structure that was originally built in 1986 9
Slide 10: Allianz Riviera Stadium at Nice (France)
Contracting Allianz Riviera Stadium at Nice (France) VINCI completes construction of Allianz Riviera, Nice’s future s t a d i u m . Inauguration scheduled for the second semester of 2013. 10
Slide 11: Doha Metro contract (Qatar)
Contracting Doha Metro contract (Qatar) June 2013 VINCI awarded the design & build contract for the Red Line South of the Doha Metro in Qatar 11
Slide 12: Dynamo Moscow Stadium (Russia)
Contracting Dynamo Moscow Stadium (Russia) June 2013 VINCI signs a construction contract for the new Dynamo Moscow Stadium in Russia (27,000 seats, a 12,000-seat multi-function arena, a 30,000 m2 commercial center, and a multiplex movie theater) 12
Slide 13: 2013 first-half highlights
2013 first-half highlights Revenue growth in complex economic and poor weather +4.3% environments Revenue EBITDA* increase +1.5% EBITDA -2.7% -4.7% Limited decrease in operating and net incomes Operating Net income income Net financial debt reduction €1.2 bn Net financial debt reduction Liquidity stren
Slide 14: 2013 first-half key figures
2013 first-half key figures st st 1 half 1 half Full year € in millions 2013 2012 Δ∆ 13/12 2012 Revenue* 18,711 17,942 +4.3% 38,634 EBITDA 2,383 2,347 +1.5% 5,418 as a % of revenue 12.7% 13.1% 14.0% EBIT 1,487 1,547 -3.8% 3,679 as a % of revenue 7.9% 8.6% 9.5% Operating income 1,484 1,526 -2.7% 3,660
Slide 15: Consolidated revenue
Consolidated revenue Contracting Concessions Real Estate Dev. and eliminations +5.3% +1.4% Consolidation Organic 18,711 scope & FX rates growth 17,942 +36 -85 +2.1% +3.2% +315 +503 Revenue growth: +4.3% +€769 m H1 2012 H1 2013 € in millions H1 13 vs H1 12 Organic growth Consolidation scope Exchange
Slide 16: Revenue by geographical area
Revenue by geographical area Resilience in France, strong growth in areas outside of Eastern Europe France +3% 63% Eastern Europe -30% 3% Western +12% Europe (ex-France) Asia/ME/ 20% Oceania +29% Americas +6% 5% 4% Africa +10% 5% X% Contribution to 2013 first-half revenue +X% H1 2013 / H1 2012 change
Slide 17: EBIT by business line
EBIT as % of revenue and in € millions CONCESSIONS CONTRACTING €997 m €459 m or 38.7% of revenue or 2.8% of revenue VINCI VINCI VINCI VINCI Autoroutes Concessions Energies Eurovia Construction 900 891 285 307 43.5% 42.2% 230 235 91 105 5.5% 5.3% 3.9% 3.8% 19.2% 22.6% (14) (82) (0.4%) (2.3%) H1 2012
Slide 18: VINCI Autoroutes 2013 first-half key figures
VINCI Autoroutes 2013 first-half key figures* Traffic – intercity network: Toll revenue: EBITDA** : +0.3% +2.1% €1,474 m or 69.8% of revenue A86 Duplex traffic: Development capex: +12% €0.3 bn Average of 26,561 vehicles per business day 110 Change in total traffic over 12 trailing months (number of km trave
Slide 19: VINCI Concessions: Good momentum in France and internationally
VINCI Concessions Good momentum in France and internationally VINCI Airports Transport Infra & Stadiums VINCI Park ! +20% ! Allianz Riviera (Nice) ! Resilient Traffic growth at Cambodian End of construction Revenue ex-exceptional items airports holding up well both inside ! Stade de Bordeaux and outsi
Slide 20: Contracting order intake
Contracting order intake 2013 first-half order intake*: €16.9 Bn -1.2% yoy United Kingdom France BNP Paribas building at Kings Cross (London), 2nd tranche of the future SFR HQ (St. Denis), “Tokamak” Swansea Bay University buildings Reactor (ITER project), public housing project (Paris), DRPJ building
Slide 21: 2013 first-half financial data
2013 first-half financial data Christian Labeyrie - Executive Vice-President and CFO
Slide 22: Income statement (1/2)
Income statement (1/2) st st 1 half 1 half € in millions 2013 2012 Δ∆ 13/12 Revenue 18,711 17,942 +4.3% EBITDA 2,383 2,347 +1.5% as a % of revenue 12.7% 13.1% EBIT 1,487 1,547 -3.8% as a % of revenue 7.9% 8.6% of which: VINCI Autoroutes net amortisation charge (592) (538) Operating income 1,484 1,52
Slide 23: Income statement (2/2)
Income statement (2/2) st st € in millions 1 half 1 half 2013 2012 Δ∆ 13/12 Operating income 1,484 1,526 -2.7% Financial income/(expense) (307) (306) of which: - cost of net financial debt (295) (326) - borrowing costs capitalised 13 36 Income tax expense (385) (392) Effective tax rate 33.9% 32.9% Non
Slide 24: 2013 first-half change in net financial debt
2013 first-half change in net financial debt € in billions Share buybacks Capital increase (0.1) and misc. Interest and Concessions 0.7* taxes paid investments EBITDA (1.1) (0.4) (13.0) (12.5) 2.4 Δ∆ WCR (0.9) Dividends Financial investments (0.7)* Operating investments (0.2) (0.3) Free cash flow: €(0.
Slide 25: Consolidated balance sheet
Consolidated balance sheet € in millions 30 June 2013 31 Dec. 2012 30 June 2012 Non-current assets – concessions 26,300 26,459 26,719 Non-current assets – contracting and other 8,797 8,848 8,471 WCR and current provisions (5,515) (6,699) (5,686) Capital employed 29,582 28,608 29,504 Equity (14,386)
Slide 26: Net financial debt by entity
Net financial debt by entity 30 June NFD/ 30 June NFD/ 31 Dec. € in millions 2013 EBITDA* 2012 EBITDA* Δ∆ 13/12 2012 Concessions (17,589) 5.1 x (18,857) 5.6 x 1,268 (18,058) VINCI Autoroutes (16,091) 5.1 x (17,090) 5.6 x 999 (16,617) VINCI Concessions (1,498) 5.3 x (1,766) 5.7 x 268 (1,441) Contracti
Slide 27: Financial debt management
Financial debt management Refinancing carried out in good Optimised maturity profile of gross debt conditions Average maturity of gross financial debt at ! Reduction of gross debt cost: end June 2013: 5.9 years 3.63% at 31 Dec. 2012 3.34% 2013-2019 maturity schedule at 30 June 2013 (€ in bns): 2.7 1.9
Slide 28: ANA acquisition
ANA acquisition Xavier Huillard – Chairman and CEO
Slide 29: A major strategic acquisition
A major strategic acquisition A structurally important step in VINCI’s strategy to expand its airport business internationally P To benefit from the growth in air traffic P To make the most of the potential for improving the performance of existing Why invest in assets airport P To meet the considerabl
Slide 30: ANA in brief
ANA in brief Scope of transaction 10 airports The Azores Porto 2012 revenue: €350m Flores 100% 100% Horta Ponta Delgada Santa Maria Lisbon Madeira Beja Porto Santo Airports in Madeira Ground services Faro Madeira/Funchal 2012 revenue: €36m 2012 revenue: €43m 2012 key figures 2012 Δ∆ 12/11 Passenger t
Slide 31: Dynamic traffic with levers for growth
Dynamic traffic with levers for growth Dynamic, diversified traffic Levers for growth P ANA traffic in H1 2013: +3.8% Development of Low Cost offer 2012 traffic by airport (mpax) Porto Development of Short City Break 6.1 Lisbon 15.3 (Lisbon, Faro) Faro 5.7 30.5 mpax +4.4% Significant VFR traffic* in H1 201
Slide 32: A portfolio of diversified activities with strong potential
A portfolio of diversified activities with strong potential for performance improvement Aeronautical activities 62% 38% Non-æronautical activities 2012 revenue Transparent regulation with incentives for Not regulated performance improvement Average revenue per passenger currently Application o
Slide 33: Limited future investment required
Limited future investment required Previous investment Forecast investment € in millions Over the next ten years: 150 100 Approx. €50 m / yr Average annual investment 50 0 These investments will allow to increase 2007 2008 2009 2010 2011 2012 Lisbon airport (Portela) capacity to 25 mpax Longer t
Slide 34: Outlook
Outlook Xavier Huillard – Chairman and CEO
Slide 35: Contracting backlog
Contracting backlog €31.8 bn +1.7% > 90% at end June 2013 vs. 31/12/12 of 2013 forecast activity in +4.0% ex-Tours-Bordeaux HSR hand at end June 2013 Breakdown by geography Breakdown by business line No. of months of average business activity 33.2 33.2 31.3 31.8 31.3 31.8 12 7.3 6.8 7.1 9 18.7 17.2
Slide 36: Contracting - Tours–Bordeaux HSR
Contracting - Tours–Bordeaux HSR Work progress on-track despite very poor weather during the first half of 2013 2011 €0.2 bn Achieved 2012 €0.6 bn 2013 H1: €0.6 bn ~ €1.3 bn Forecast 2014 ~ €1.3 bn >2014 ~ €0.8 bn ! 7,400 people currently on-site ! All of the Group’s expertise employed ! Prudent marg
Slide 37: Outlook: 2013 top priorities
Outlook 2013 top priorities ! VINCI Autoroutes: press ahead with discussions with the grantor regarding the terms of a stimulus capex plan Concessions ! VINCI Airports: integrate ANA ! Tours-Bordeaux HSR: targeting 50% contract completion at the end of 2013 Contracting ! Cost reduction plans to adap
Slide 38: Outlook: 2013 trends
Outlook 2013 trends ! Slight increase in Group revenue on a comparable basis Revenue ! VINCI Autoroutes: confirmation of upturn in traffic ! VINCI Airports: continuation of sustained traffic growth ! EBITDA* progression ! Operating income and net income limited decline: Results Despite the negative imp
Slide 39: 2013 interim dividend: unchanged
2013 interim dividend: unchanged ! Interim dividend: €0.55 per share (as decided by the Board of directors on 30 July 2013) ! Ex-date: 11 November 2013 ! Payment date: 14 November 2013 39
Slide 40: Thank you for your attention
Thank you for your attention
Slide 41: Appendixes
Appendixes Shareholder base Additional information by business line Financial data
Slide 42: Shareholder base at 30 June 2013
Shareholder base at 30 June 2013 France 16.7% Individual investors United Kingdom 7.8% 10.3% Employees Institutional Rest of Europe 17.3% 10.3% investors 65.6% 5.3% Qatari Diar 1.4% Artemis* United States 7.1% 19.6% 4.2% Treasury shares Rest of World ! Over 500 institutional investors ! Almost 240,0
Slide 43: VINCI Autoroutes: First half 2013 toll revenue
VINCI Autoroutes First half 2013 toll revenue: +2.1% YoY change Q1 Q2 H1 2012 Q3 Q4 2012 Q1 Q2 H1 2013 Traffic - intercity -1.3% -2.4% -1.9% -1.0% -2.2% -1.7% -0.3% +0.7% +0.3% network of which: Light vehicles -1.2% -2.0% -1.7% -0.6% -2.1% -1.4% +0.4% +0.9% +0.7% Heavy vehicles -2.1% -4.7% -3.5% -4.6%
Slide 44: VINCI Autoroutes current capex forecast
VINCI Autoroutes Current capex forecast VINCI Autoroutes planned capex 2013 - 2018 Including the ASF and Escota 5-year plans (2012-2016) 1.2 1,2 0,8 0.8 € in billions 0,4 0.4 0,0 0.0 2012 2013 2014 2015 2016 2017 2018 44
Slide 45: ANA – Economic regulation
ANA – Economic regulation Assumed change in æronautical charges 2013-2022 3,0% 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% 2013e 2014e 2015e 2016e 2017e 2018e 2019e 2020e 2021e 2022e Lisbon, Azores, Madeira Porto Faro Inflation rate assumption (HIPC): 2% p.a. 45
Slide 46: Contracting quarterly revenue comparison
Contracting Quarterly revenue comparison € in millions +5.5% 8,898 8,436 +5.2% 7,231 6,874 Q1 2012 Q1 2013 Q2 2012 Q2 2013 External growth & FX Organic growth Change 13/12 Q1 Q2 H1 2013 Total +5.2% +5.5% +5.3% Organic growth +2.4% +3.9% +3.2% External growth & FX +2.8% +1.6% +2.1% 46
Slide 47: Detailed consolidated financial statements
Detailed consolidated financial statements
Slide 48: Consolidated revenue
Consolidated revenue Δ∆ 13/12 € in millions H1 2013 H1 2012 Actual Comparable Concessions 2,577 2,542 +1.4% +2.0% VINCI Autoroutes 2,112 2,066 +2.2% +2.2% VINCI Concessions 465 476 -2.2% +1.0% Contracting 16,129 15,310 +5.3% +3.2% VINCI Energies 4,419 4,177 +5.8% -0.4% Eurovia 3,603 3,832 -6.0% -6.3
Slide 49: Consolidated revenue – France
Consolidated revenue – France Δ∆ 13/12 € in millions H1 2013 H1 2012 Actual Comparable Concessions 2,427 2,386 +1.8% +1.8% VINCI Autoroutes 2,105 2,060 +2.2% +2.2% VINCI Concessions 323 326 -1.0% -1.0% Contracting 9,367 9,005 +4.0% +3.5% VINCI Energies 2,652 2,656 -0.1% -0.8% Eurovia 2,308 2,360 -2.
Slide 50: Consolidated revenue – international
Consolidated revenue – international Δ∆ 13/12 € in millions H1 2013 H1 2012 Actual Comparable Concessions 150 156 -4.1% +6.5% VINCI Autoroutes 8 6 +14.8% +22.1% VINCI Concessions 142 150 -4.9% +5.8% Contracting 6,761 6,305 +7.2% +2.8% VINCI Energies 1,766 1,522 +16.1% +0.1% Eurovia 1,295 1,472 -12.1
Slide 51: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of € in millions H1 2013 H1 2012 Δ∆ 13/12 revenue* revenue* Concessions 997 38.7% 991 39.0% +0.6% VINCI Autoroutes 891 42.2% 900 43.5% -0.9% VINCI Concessions 105 22.6% 91 19.2% +15.2% Contracting 459 2.8% 502 3.3% -8.5% VINCI
Slide 52: Financial income/(expense)
Financial income/(expense) € in millions H1 2013 H1 2012 Δ∆ 13/12 Cost of net financial debt (295) (326) (30) Concessions (319) (343) 24 Contracting 3 10 (7) Holding companies and misc. 20 6 14 Other financial income and expenses (12) 20 (32) Capitalised borrowing costs for investments in progress 13
Slide 53: Net income attributable to owners of the parent by business line
Net income attributable to owners of the parent by business line % of % of € in millions H1 2013 H1 2012 Δ∆ 13/12 revenue* revenue* Concessions 407 15.8% 404 15.9% +0.8% VINCI Autoroutes 340 16.1% 350 16.9% -2.7% VINCI Concessions 67 14.3% 54 11.4% +23.1% Contracting 275 1.7% 316 2.1% -13.0% VINCI E
Slide 54: EBITDA by business line
EBITDA - cash flow from operations before tax and financing costs by business line % of % of € in millions H1 2013 H1 2012 Δ∆ 13/12 revenue* revenue* Concessions 1,628 63.2% 1,581 62.2% +3.0% VINCI Autoroutes 1,474 69.8% 1,424 68.9% +3.5% ASF/Escota 1,054 69.3% 1,014 68.4% +3.9% Cofiroute 407 71.0% 397
Slide 55: Operating investments, net
Operating investments, net € in millions H1 2013 H1 2012 Δ∆ 13/12 Concessions 32 26 +6 VINCI Autoroutes 17 13 +4 VINCI Concessions 15 13 +2 Contracting 327 387 (60) VINCI Energies 48 40 +8 Eurovia 106 110 (4) VINCI Construction 173 237 (64) VINCI Immobilier and holdings 1 0 1 Purchases of PP&E and i
Slide 56: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions H1 2013 H1 2012 Δ∆ 13/12 Concessions 362 583 (221) VINCI Autoroutes 348 544 (196) ASF / Escota 283 441 (158) Cofiroute 63 102 (39) VINCI Concessions 14 39 (25) Contracting 37 15 22 Growth investments in concessions and PPPs (net) 399 598 (199)
Slide 57: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions H1 2013 Concessions Contracting H1 2012 Cash flow from operations 2,383 1,628 730 2,347 Change in WCR (801) (5) (804) (802) Change in current provisions (80) 0 (78) (118) Income taxes paid (690) (358) (315) (511) Net interest paid (372) (373) (25) (346) Dividend
Slide 58: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions H1 2013 H1 2012 Free cash flow (after investments) (233) (359) Net financial investments (135)* (390)** Other financial cash flows (79) (32) Cash flow before movements in share capital (447) (780) Share capital increases and other operations 689 302 Dividends (701)
Slide 59: Maturity of gross financial debt
Maturity of gross financial debt ! Average maturity of gross financial debt at end June 2013: 5.9 years (Concessions: 6.3 years) 3 000 Repayment schedule at end June 2013 2 500 2 000 1 500 1 000 500 0 2H 13 1H 14 2H 14 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 > 2028 ASF Cofirout
Slide 60: IR Contacts and Agenda
IR Contacts and Agenda CONTACTS AGENDA G. Christopher Welton 24 October 2013 christopher.welton@vinci.com 3rd quarter 2013 information press release Tel: +33 1 47 16 45 07 11 November 2013 Interim dividend ex-date Thomas Guillois thomas.guillois@vinci.com 14 November 2013 Tel: +33 1 47 16 33 46 Inte