Vinci Sa · EURONEXT:DG
Vinci Sa — Non-Deal Roadshow (June 2006)
63 slides from Vinci Sa's roadshow presentation, Jun 14, 2006
Slide 1: Roadshow Paris and London
Roadshow Paris and London Conference calls with US investors 14 and 15 June 2006 Xavier HUILLARD, CEO Christian LABEYRIE, Executive Vice President and CFO
Slide 2: Acquisition of ASF
VINCI “- Acquisition of ASF
Slide 3: Key dates (1/2)
Key dates (1/2) 28 March 2002: market flotation of ASF April 2002: acquisition by VINCI of 17% of ASF 29 June 2004: ASF and VINCI sign an industrial co-operation agreement November 2004: VINCI’s shareholding increased to 23% VINCI obtains one seat on the Board of Directors 14 December 2005: the Fren
Slide 4: Key dates (2/2)
Key dates (2/2) February 2006: issue of €500 million undated deeply subordinated bonds (TSS) 6 March 2006: promulgation of the law integrating the Lyons-Balbigny section into ASF’s concession 9 March 2006: sale of shares held by the French government and Autoroutes de France in ASF (50,4% du capital
Slide 5: VINCI-ASF: world's n°1 concessionaire – integrated builder
VINCI-ASF: world’s n°1 concessionaire – integrated builder Transformation of the Group’s financial profile Revenue Cash flow from operations Capital employed Property Concessions Property Construction 2% 1% Roads -6% Property 9% 6% 2% Construction Energy Pre-acquisition Energy 31% Concessions 40% 2%
Slide 6: Geographical breakdown of VINCI + ASF sales
Geographical breakdown of VINCI + ASF sales 2005 pro forma revenues % of total revenues France 65.6% Germany 6.6% UK 7.4% Eastern & central Europe 6.5% Benelux 3.7% Rest of Europe 2.6% North America 3.2% Rest of the world 4.4% 100% Total revenues €24.0 bn O/w : France €15.8 bn O/w : outside of Franc
Slide 7: VINCI-ASF: Europe's leading motorway and transport infrastructure concessionaire
VINCI-ASF: Europe’s leading motorway and transport infrastructure concessionaire (*) 2005 pro forma figures Motorway network Revenue EBITDA under concession (in € billions) (in € billions) (in km) VINCI-ASF VINCI-ASF 4,0 VINCI-ASF Concessions 4 687 Concessions Concessions 2,4 ** Abertis / Autostrade
Slide 8: A leading player in France
VINCI-ASF: Europe’s leading motorway and transport infrastructure concessionaire A leading player in France, with a very dense network, especially in high-growth regions No. 1 motorway concessionaire (4,300 km, of which 350 km under construction) No. 1 car park concessionaire, with 445,000 spaces ma
Slide 9: A diversified concessions portfolio outside France
VINCI-ASF: Europe’s leading motorway and transport infrastructure concessionaire A diversified concessions portfolio outside France: 4,700 km of motorway under concession (of which 4,300 km in Europe), 800,000 car park spaces managed (of which 708,000 in Europe), 4 airports managed 9
Slide 10: Concessions portfolio at varying stages of maturity
VINCI-ASF: Europe’s leading motorway and transport infrastructure concessionaire A diversified concessions portfolio at varying stages of maturity in complementary market segments Residual term of contracts: 11 to 75 years ASF (France) 27 Cofiroute intercity network (France) 25 ASF Escota (France) 2
Slide 11: Diversified shareholder structure
Diversified shareholder structure with significant proportion of shares publicly held Shareholder structure at 31 December 2005 (196.6 million shares *) Employees Balanced spread between 8.5% 3.5% French, European and North Treasury shares 25.1% American institutional Individual shareholders 12.2% i
Slide 12: Integration of ASF into VINCI
Integration of ASF into VINCI
Slide 13: ASF joins VINCI
ASF joins VINCI Sioule viaduct (A89) 13
Slide 14: The VINCI business model: integrated concessions and construction
The VINCI business model: integrated concessions and construction Concessions and Construction: complementary business activities Concessions Construction Capital employed Free cash flow Long business cycles Short business cycles Significant capital employed Low capital employed Financing with stron
Slide 15: Rion–Antirion bridge (Greece)
Rion–Antirion bridge (Greece) 15
Slide 16: Organisation by business line
The VINCI business model: integrated concessions and construction Clear and easily understandable organisation by business line Chairman: YT. De Silguy Vice-chairman: B. Huvelin and B. Val CEO: X. Huillard J. Tavernier R. Francioli R. Martin J-Y. Le Brouster D. Azéma Concessions Construction Roads E
Slide 17: Organisation of VINCI Concessions
Organisation of VINCI Concessions Motorways, Motorways, bridges & tunnels bridges & tunnels Car parks Business International development France Europe Rest of the world 73.4% Confederation About 20 new Rion–-Antirion bridge (Greece) 53% Bridge (Canada) 50% 100% projects being studied 73.4% Tagus bri
Slide 18: Synergies identified
VINCI-ASF: Europe’s leading motorway and transport infrastructure concessionaire Synergies identified Two management teams sharing the same strategic vision Cost synergies Simplification and rationalisation of organisation (business development expense, pooling of head office resources) Exchange of
Slide 19: Financial data
VINCI “- Financial data
Slide 20: VINCI alone: 2005 key figures
VINCI alone: 2005 key figures Key figures 05/04 In € millions 2004 2005 change Revenue 19,520 21,543 +10.4% Operating profit from ordinary activities 1,300 1,568 +20.6% as % of revenue 6.7% 7.3% Net profit attributable to VINCI shareholders 732 871 +19.1% as % of revenue 3.7% 4% Cash flow from opera
Slide 21: ASF: 2005 key figures
ASF: 2005 key figures 05/04 In € millions 2004 2005 change Revenue 2,389 2,474 +3.6% Operating profit 1,045 1,076 +3% as % of revenue 43.7% 43.5% Net profit attributable to ASF shareholders 398 443 +11.2% as % of revenue 16.7% 17.9% Cash flow from operations (*) 1,491 1,568 +3.3% as % of revenue 62.
Slide 22: 2005 pro forma key figures (1/2)
2005 pro forma key figures (1/2) Impact of the In € millions VINCI ASF VINCI-ASF transaction * Revenue 21,543 2,474 - 24,017 Operating profit from ordinary activities 1,568 1,076 - 2,644 as % of revenue 7.3% 43.5% 11% Net profit before allocation of ASF goodwill (a) - in € millions 871 443 (216) 1,0
Slide 23: 2005 pro forma key figures (2/2)
2005 pro forma key figures (2/2) Impact of the In € millions VINCI ASF VINCI-ASF transaction * Cash flow from operations 2,150 1,568 - 3,718 Net investments (excl. financial) 1,415 498 - 1,913 of which concessions 811 498 1,309 Equity (incl. minority interest) (236) 5,319 3,657 8,740 Net financial d
Slide 24: 2005 pro forma financial ratios
2005 pro forma financial ratios After In € millions capital increase * Net financial debt at 31 December 2005 15,876 Net financial debt/cash flow from operations x 4.27 Cash flow from operations/net interest expense x 5.56 Net financial debt/equity 182% Long-term ratings of VINCI SA: - Moody’s Baa1
Slide 25: Acquisition financing at VINCI SA level
Acquisition financing at VINCI SA level Total amount to finance (maximum): €9.1 billion Acquisition of government-held shares: €5.9 billion Acquisition of minority-held shares: €3.2 billion Capital increase €2.5 billion 27% 7-year acquisition loan €3.8 billion Available resources €2.8 billion 73% €9
Slide 26: VINCI's markets outlook
VINCI “- VINCI’s markets outlook
Slide 27: Markets show long-term growth promise: construction and roads
VINCI’s markets show long-term growth promise CONSTRUCTION AND ROADS FRANCE: VINCI’s biggest market (60% of total revenue) Demographic growth higher than European average Significant shortage of public infrastructure and housing Development of urban public transport Creation of AFITF* / new infrastr
Slide 28: Energy services / communications networks
VINCI’s markets show long-term growth promise ENERGY SERVICES / COMMUNICATIONS NETWORKS Expansion and modernisation of power transmission networks Continuous increase in energy consumption (> GDP) Growing Interconnection of power transmission networks Deregulation of energy market Continuous expansi
Slide 29: Concessions / PPP
VINCI’s markets show long-term growth promise CONCESSIONS / PPP Transport: Increase in cross-border people and freight movement within the European Union Extension of public-private partnerships (PPP) to non-road transport Car parks: Growing demand for tailored car parks in urban areas (city centres
Slide 30: An extending array of services
VINCI’s markets show long-term growth promise AN ARRAY OF SERVICES THAT IS EXTENDING: Upstream Customer demand for global players with broader market coverage (skills, business activities, geographical areas) Downstream Outsourcing trend (multi-technical maintenance for industrial sites, buildings a
Slide 31: Outlook for 2006
VINCI “- Outlook for 2006
Slide 32: VINCI Concessions: outlook for 2006
VINCI Concessions: outlook for 2006 Completion of the acquisition of ASF Acquisition of the State’s shareholding Public bid to minority shareholders First refinancing transactions Implementation of the VINCI-ASF business plan ASF: integration of the Lyon-Balbigny section (A89) in the concession Cofi
Slide 33: Projects under study (1/2)
Projects under study (1/2) Project Country Description Estimated cost at 100% Concessionaire 2,600 metre suspension bridge between Chiloé Island designated Chiloé bridge Chile and mainland Chile €400 million Bid submitted A65 motorway (ASF) France Langon–Pau (150 km) >€1 billion Birmingham PFI UK Re
Slide 34: Projects under study (2/2)
Projects under study (2/2) Estimated Project Country Description cost at 100% Awaiting tender issue Coentunnel Netherlands Widening of tunnel on Amsterdam ring road >€800 million A88 France Falaise–Sées motorway (22 or 44 km) ~ €100 million Nîmes Airport France Management for 5 years Nd Lighting of
Slide 35: VINCI Energies: outlook for 2006
VINCI Energies: outlook for 2006 Durably buoyant markets Development of network-based offers Continuation of external growth in Europe 35
Slide 36: Eurovia: outlook for 2006
Eurovia: outlook for 2006 More moderate growth of activity expected in and outside France in markets that remain attractive Organic growth in Europe driven by new contractual arrangements: A – Modell in Germany (motorway widening financed under “shadow toll” arrangement): first tenders to be submitt
Slide 37: VINCI Construction: outlook for 2006
VINCI Construction: outlook for 2006 Record order book provides excellent visibility: 13 months’ activity at 31 December 2005 Priority to organic growth and improvement of added value (comprehensive offers, new services) Increase in PPPs in France Buoyant markets in Europe thanks to investments in t
Slide 38: Q1 2006 revenue
The activity remains well oriented in all business lines Q1 2006 revenue In millions of euros Q1 2005 Q1 2006 Change Change actual actual excl. ASF Construction 2,088 2,290 +9.7% +9.7% Roads 1,030 1,164 +13% +13% Energy 752 852 +13.2% +13.2% Concessions and services 458 644 +40.7% +10.8% Miscellaneo
Slide 39: Order book at 30 April 2006
A very promising 2006 year for VINCI’s other business lines Order book at 30 April 2006 Average Change Change 30 April months' In millions of euros against against 2006 activity April 05 Dec.05 Energy 1,765 5.9 +11% +22% Roads 4,887 8.9 +16% +14% Construction 10,810 12.7 +18% +6% Total 17,443 10.6 +
Slide 40: Conclusion: A market leader with growth potential
Conclusion: A market leader with growth potential
Slide 41: VINCI-ASF: a new market leader – concessions
VINCI-ASF: a new market leader CONCESSIONS High value assets: Toll motorways and very well located car park concessions A portfolio with a good spread of long-maturity contracts Recognised know-how: Complementary skills both as a developer-builder and as a concessionaire-operator Synergies with VINC
Slide 42: VINCI-ASF: a new market leader – construction, roads, energy
VINCI-ASF: a new market leader CONSTRUCTION – ROADS – ENERGY First-rate positioning: Strong positions in France, where the market is sound, profitable and set for long-term improvement A network of European business units providing synergy opportunities Significant presence in the most dynamic count
Slide 43: Stronger stock market status
Stronger stock market status Highest market capitalisation in the European concessions segment (biggest float, number one in terms of liquidity) Revaluation potential linked to strengthened position of concessions in VINCI’s business mix Wider coverage by equity research analysts and increased prese
Slide 44: Stade de France
Stade de France 44
Slide 45: Appendices
a VINCI ” Appendices
Slide 46: ASF / VINCI alone / VINCI-ASF
Slide no. ASF 47 to 49 VINCI alone 50 to 56 VINCI-ASF 57 to 62
Slide 47: ASF: biggest French motorway concessionaire
ASF: biggest French motorway concessionaire The ASF-ESCOTA network (3,160 km) represents almost 40% of the motorway network under concession in France Located at the crossroads of Mediterranean and Northern Europe In a densely populated and high demographic growth area (+19% by 2030) Provence, Alps,
Slide 48: Income statement ASF
Income statement ASF Change In millions of euros 2004 2005 05/04 Revenue 2,389 2,474 +3.6% EBITDA 1,520 1,569 +3.2% as % of revenue 63.6% 63.4% Operating profit 1,045 1,076 +3.0% as % of revenue 43.7% 43.5% Net financial income / (expense) (435) (397) Income tax expense (210) (236) Effective tax rat
Slide 49: Cash flow statement ASF
Cash flow statement ASF Change In millions of euros 2004 2005 05/04 Cash flow statement (*) 1,491 1,568 +77 Change in WCR (104) (15) +189 Tax and net financial expenses paid (627) (644) (17) Net investments in operating assets 4 2 (2) Free cash flow 764 911 +147 Growth investments in concessions (64
Slide 50: Strong business activity in France and Central and Eastern Europe
Strong business activity in France and Central and Eastern Europe VINCI stand alone / 2005 revenue by geographical area Rest of the world 2005/2004 (Africa 2.5%; Asia 0.8%) change North America (USA 2.8%; Canada 0.7%) 5% France +10% Rest of Europe 3.5% (Spain 1.5%) 3% Germany -3% 4.1% UK +16% 61.7%
Slide 51: Income statement (1/2) VINCI stand-alone
Income statement (1/2) VINCI stand-alone Change In millions of euros 2004 2005 05/04 Revenue 19,520 21,543 +10.4% Operating profit from ordinary 1,300 1,568 +20.6% activities as % of revenue 6.7% 7.3% Share-based payments (IFRS 2), impairment of goodwill, non-recurring (92) (84) items Operating prof
Slide 52: Income statement (2/2) VINCI stand-alone
Income statement (2/2) VINCI stand-alone Change In millions of euros 2004 2005 05/04 Operating profit 1,208 1,484 +22.9% as % of revenue 6.2% 6.9% Net financial income / (expense) (4) (106) Income tax expense (380) (462) Effective tax rate 29.6% 31.6% Equity-accounted investments 14 87 * Minority in
Slide 53: Cash flow statement (1/2) VINCI stand-alone
Cash flow statement (1/2) VINCI stand-alone Change In millions of euros 2004 2005 05/04 Cash flow from operations (*) 2,018 2,150 +132 Change in WCR 370 120 (250) Tax and net financial expenses paid (544) (594) (50) Net investments in operating assets (476) (604) (128) Free cash flow 1,368 1,072 (29
Slide 54: Cash flow statement (2/2) VINCI stand-alone
Cash flow statement (2/2) VINCI stand-alone Change In millions of euros 2004 2005 05/04 Net cash flows before 575 289 (286) transactions relating to share capital Changes in share capital (231) (100) +131 Conversion of the Oceane bonds - 1,096 +1,096 Dividends (343) (390) Other cash flows 93 (41) Ch
Slide 55: VINCI Construction
VINCI Construction No. 1 in France A very dense network of local companies in Europe providing synergy opportunities Targeted presence outside Europe (major projects, Freyssinet, dredging) A broad array of skills (design, construction, maintenance) 2005 revenue by business line 2005 revenue by geogr
Slide 56: Eurovia
Eurovia Leader in Europe for roadworks and materials production and recycling Barriers to entry/industrial integration: 210 quarries, 460 coating plants, 60 binder plants, 110 recycling units Annual production : 55 million tonnes; 30 years’ reserves (1.6 billion tonnes) Recurring business/good distr
Slide 57: VINCI Energies
VINCI Energies First French group A European network of 700 business units Diversified customer base (industry, service sector, local authorities, telecoms operators) Mainly recurring business spread over a large number of small contracts (average size: €20,000) Markets with strong potential: busine
Slide 58: VINCI Concessions
VINCI Concessions Dual skills in the field of transport infrastructure: Specialist in project engineering and construction of major public infrastructure under long-term contracts (concessions, BOT, PFI, PPP) Professional operator of outsourced public services Present mainly in France; promising out
Slide 59: Income statement 2005 VINCI-ASF pro forma
Income statement 2005 VINCI-ASF pro forma In € millions 2005 Revenue 24,017 Operating profit from ordinary activities before impairment of 2,644 goodwill on contracts as % of revenue 11 % Impairment of goodwill on ASF contracts (252) Share-based payments (IFRS 2), impairment of goodwill, (84) non-re
Slide 60: Balance sheet 2005 VINCI-ASF pro forma
Balance sheet 2005 VINCI-ASF pro forma In € billions 31 Dec. 2005 8.7 Equity (incl. minority interest) 4.2 Non-current provisions and misc. long-term Non-current assets 28.9 – concessions 18.7 Long-term financial debt* Other non-current assets 3.1 3.2 WCR and current Net cash 2.8 provisions Assets E
Slide 61: Maturity of debt at more than one year
Maturity of debt at more than one year Maturity of debt at more than one year (€18.7 billion): In € millions 4,300 2,200 2,000 1,600 1,300 1,400 1,100 1,300 900 1,000 800 800 2006 2007 2008 2009 2010 2011 2012 2013- 2016 2017 2018 >2019 2015 ASF Cofiroute Other concessions Other business lines & hol
Slide 62: A fine financial track record
A fine financial track record 2000/2005 financial data (€ millions) Operating profit from Revenue ordinary activities Net profit CAGR 2000-2005*: +5% p.a. CAGR 2000-2004: +11% p.a. CAGR 2000-2004: +15% p.a. French GAAP IFRS French GAAP IFRS (Operating income) 2 644 24 017 1 006 21 543 871 19 520 19
Slide 63: Roadshow Paris and London
Roadshow Paris and London Conference calls with US investors 14 and 15 June 2006 Xavier HUILLARD, CEO Christian LABEYRIE, Executive Vice President and CFO