Eiffage SA · EURONEXT:FGR
Eiffage SA — H1 2014 Earnings Presentation
56 slides from Eiffage SA's earnings presentation, Aug 27, 2014
Slide 1: Results for the semester ended 30 June 2014
Results for the semester ended 30 June 2014 Financial analysts’ meeting, 27 August 2014
Slide 2: Semester Highlights
SEMESTER HIGHLIGHTS Pierre Berger – Chairman and Chief Executive Officer
Slide 3: Eiffage 1st Half 2014 – Highlights
EIFFAGE 1st HALF 2014 – HIGHLIGHTS Group debt ‐ Down by €M 595 over 1 year (and €M 1,132 over 3 years) Major Projects ‐ Progress in line with expectations Property development ‐ Satisfactory performance with 1,661 bookings of housing units International ‐ Increase in order intake 3
Slide 4: Orders Intake
EIFFAGE 1st HALF 2014 – HIGHLIGHTS Orders Intake Back up engines – EDF CESTAS – NEOEN €M 548 (Eiffage share 44%) €M 284 (Eiffage share 75%) A9 – ASF Ligne 14 – RATP Lyon Turin Ferroviaire €M 134 (Eiffage share 100%) €M 230 (Eiffage share 55%) €M 390 (Eiffage share 30 %) 4
Slide 5: APRR/AREA, PPP and other concessions
EIFFAGE 1st HALF 2014 – HIGHLIGHTS APRR/AREA ‐ Ebitda at the historically high level of 71 % ‐ Finalisation of the stimulus package expected by year end ‐ Refinancing of Eiffarie brought forward by 2 years Objective of a significant bank debt margin reduction PPP and other concessions ‐ Very good po
Slide 6: Eiffage 1st Half 2014
EIFFAGE 1st HALF 2014 Revenue €M Operating profit €M Net profit €M 6,606 6,616 6,527 ‐0.2 % 518 556 +7.3 % 58 68 +17.2 % 6,511 499 51 451 43 H1 2011 H1 2012 H1 2013 H1 2014 H1 2011 H1 2012 H1 2013 H1 2014 H1 2011 H1 2012 H1 2013 H1 2014 Change in WCR €M Financial net debt €M Order book €M H1 2011 H1
Slide 7: Outlook for 2014
EIFFAGE 1st HALF 2014 – OUTLOOK Eiffage : Outlook for 2014 Slight increase in revenues Increase in operating and net profit Decrease of Group net debt 7
Slide 8: =) FIFFAGE
=) FIFFAGE
Slide 9: Results by Business Segment and Financial Results
RESULTS BY BUSINESS SEGMENT AND FINANCIAL RESULTS Christian Cassayre – Chief Financial Officer
Slide 10: Revenue (excluding IFRIC 12)
REVENUE (excluding IFRIC 12) BREAKDOWN CONCESSIONS / CONTRACTING (€M) BREAKDOWN BY GEOGRAPHICAL AREA (€M) 6,527 6,511 ‐0.2% 6,527 6,511 ‐0.2% 129 108 ‐16.3% 1,074 1,115 +3.8% 844 979 +16.0% 5,453 5,396 ‐1.0% 5,554 5,424 ‐2.3% H1 2013 H1 2014 ∆14/13 H1 2013 H1 2014 ∆14/13 International excluding Euro
Slide 11: Contracting Revenue (excluding IFRIC 12)
CONTRACTING REVENUE (excluding IFRIC 12) BREAKDOWN BY BRANCH (€M) CONTRACTING BREAKDOWN BY GEOGRAPHICAL AREA (€M) AND % OF TOTAL 5,453 5,396 ‐1,0% 5,453 5,396 ‐1,0% 127 (2%) 99 (2%) ‐22.0% 1,696 1,770 +4.4% 844 979 +16.0% (16%) (18%) 1,806 1,787 ‐1.1% 4,482 4,318 ‐3.7% 1,550 1,418 ‐8.5% (82%) (80%)
Slide 12: Operating Profit on Ordinary Activities and Margins
OPERATING PROFIT ON ORDINARY ACTIVITIES AND MARGINS Growth of profit on ordinary activities up 7,3% at €M 556 and margin increase by 60 bps to 8.5% of revenue H1 2013 €M (% of revenue) H1 2014 €M (% of revenue) ∆14/13 Construction 71 (4.2%) 70 (4.0%) ‐1.4% Public Works ‐39 (‐2.2%) ‐36 (‐2.0%) +7.7%
Slide 13: Breakdown of Margins
BREAKDOWN OF MARGINS Increase of the Group operating margin of 60bps Total 8.5% 7.9% 7.5% 6.8% 6.4% H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 Concessions Contracting 41.2% 42.7% 41.6% 38.1% 1.7% 1.6% 1.6% 1.7% 1.5% 35.5% H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 1
Slide 14: Construction: Activity and Results
CONSTRUCTION: ACTIVITY AND RESULTS Upholding of the operating margin at the high level of 4.0% of revenue slightly down by 20bps in an increasingly competitive environment REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES Revenue up 4.4% (+4.5% lfl) – Activity in France, up 5.0% at €M 1,435 1
Slide 15: Majunga Tower, La Défense
Majunga Tower, La Defense =) FIFFAGE
Slide 16: Public Works: Activity and Results
PUBLIC WORKS: ACTIVITY AND RESULTS Increase of the operating margin up 20bps at ‐2.0% of revenue in uncertain environment of public orders REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES Revenue down 1.1% (‐1.1% lfl) – France: activity down 0.7% at €M 1,511 1,819 1,796 1,806 1,764 1,787 – E
Slide 17: HSL Bretagne-Pays de la Loire
HSL Bretagne-Pays de la Loire 17
Slide 18: Energy: Activity and Results
ENERGY: ACTIVITY AND RESULTS Ongoing recovery of the operating margin up 40 bps at 3.2% of revenue Revenue down 8.5% (‐7.5% lfl) REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES – In France, decline in revenue of 10.8% to €M 1,131 in first half but noticeable increase in order intakes 1,541
Slide 19: Optic fiber, Cantal
Optic fiber, Cantal =) FIFFAGE
Slide 20: Metal: Activity and Results
METAL: ACTIVITY AND RESULTS Decrease of the operating margin by 70bps 2.8% of revenue Revenue up 5.0% (‐20.2% lfl) REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES – In France, decrease of revenue by 26.2% to €M 240 with 427 401 421 the completion of some major projects 366 380 – In Europe,
Slide 21: Wind, Smulders
Wind, Smulders =) FIFFAGE
Slide 22: APRR: Activity and Results
APRR: ACTIVITY AND RESULTS Increase of the EBIDTA margin of 60bps to the historically high level of 71.0% of revenue REVENUE (€M) – EBITDA MARGIN Toll receipts up 2.8% as a result of the traffic improvement 1,029 973 983 1,001 931 and the February 2014 tariff increase – Total traffic up 2.0 % (LV
Slide 23: APRR
=) FIFFAGE
Slide 24: Concessions: Activity and Results
CONCESSIONS: ACTIVITY AND RESULTS Increase of the operating margin by 150bps to the historically high level of 42.7% of revenue Revenue up 3.8% (+3.4% lfl) REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES – Motorways concessions (exc APRR) with revenue up 29.5% 1,074 1,115 to €M 47.9 1,032 1
Slide 25: University, Aix-en-Provence
University, Aix-en-Provence 25
Slide 26: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Growth in operating profit of 7.3% and in net result of 17.2% in millions euros H1 2013 H1 2014 Δ 14/13 Revenue (1) 6,527 6,511 ‐0.2% Operating profit on ordinary activities 518 556 +7.3% (% of revenue) (7.9%) (8.5%) Other operating income and expenses (29) (28) Operati
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET In billions euros 31-Dec-2013 30-Jun-2014 ASSETS Non current assets ‐ Concessions 14.3 Non current 14.0 Non current assets : 18.6 assets : 18.4 Non current assets ‐ Contracting & Contracting 4.3 4.4 Net cash ‐ Holding & Contracting 0.9 0.8 6.6 6.9 Other assets EQUITY AND L
Slide 28: Financial Net Debt Evolution
FINANCIAL NET DEBT EVOLUTION Stability of the financial net debt despite the seasonal increase of the WCR Change in net debt since 31/12/2013 (€M) 313 (354) 593 73 (112) 12,579 (5) 12,635 (893) Capex Capex Disposals, Concessions Variations Contracting inc CHSF (332) Dividends & 431 & Holding without
Slide 29: Financial Net Debt Structure
FINANCIAL NET DEBT STRUCTURE Financial net debt down €M 595 over 1 year A financial structure characterised by the importance of the Concessions and the seasonality of the Contracting 13,230 12,645 12,469 12,579 12,949 12,635 FND Holding & 132 131 911 Contracting 166 593 632 607 41 44 27 57 51 25 FN
Slide 30: Financial Net Debt Structure Breakdown
FINANCIAL NET DEBT STRUCTURE BREAKDOWN Financial net debt largely non recourse and raised in dedicated SPVs FINANCIAL NET DEBT STRUCTURE (€M) NON RECOURSE FND BREAKDOWN (€M) Eiffarie APRR and 2,331 APRR Eiffarie Macquarie 6,751 9,596 quasi 76% equity Holding & Contracting 708 607 Senegal 5% motorway
Slide 31: Financing and Refinancing of the Eiffage Group
FINANCING AND REFINANCING OF THE EIFFAGE GROUP Increase of the Holding liquidity and anticipation of financial needs Holding and Contracting – Completion of a 5 years private placement of €M 100 – Ramp up of the commercial paper programme Concessions and PPP – Financial closing of the universiti
Slide 32: Activity and Commercial Dynamism
ACTIVITY AND COMMERCIAL DYNAMISM High order book at €12.3 bn at 30 June 2014, up by 4.8% over 6 months ORDER BOOK (€bn) BREAKDOWN BY BRANCH (€bn) 12 MONTHS ROLLING AVERAGE 6 MONTHS VARIATIONS 12.5 11.7 12.3 +4.8% 12.2 12.3 4.7 4.7 ‐0.8% 11.7 ‐9.7% ‐7.7% ‐4.1% ‐1.5% 3.7 +5.7% 3.5 2.6 2.9 +11.1% 0.9 1
Slide 33: 2014 Outlook
2014 OUTLOOK BREAKDOWN CONCESSIONS / CONTRACTING (€M) BREAKDOWN BY CONTRACTING BRANCH (€M) 14,264 14,400 +1.0% 12,003 12,050 +0.4% 2,261 2,350 +3.9% 3,715 3,850 +3.6% 4,215 4,150 ‐1.5% 12,003 12,050 +0.4% 3,159 3,100 ‐1.9% 914 950 +3.9% 2013 2014 ∆14/13 2013 2014 ∆14/13 Construction Concessions Publ
Slide 34: Appendices – Eiffage Group
APPENDICES Eiffage Group =) FIFFAGE
Slide 35: Organisation Chart
ORGANISATION CHART Eiffage carries on five activities – Construction, Public Works, Energy, Metal and Concessions – organised into operational branches under the Holding CONSTRUCTION PUBLIC WORKS CONCESSIONS ENERGY METAL 50% ≤50% +1 share 51% 65% 100% BPL TP Ferro Financière Eiffarie Verdun Particip
Slide 36: Group Shareholding Structure
GROUP SHAREHOLDING STRUCTURE SHAREHOLDERS AT 31 DECEMBER 2013 (89.4M shares) SHAREHOLDERS AT 30 JUNE 2014 (92.3M shares) BlackRock BlackRock 5.7% 6.5% Free float 38.2% Free float 40.0% BPI BPI 20.1% 19.5% Eiffaime Eiffaime 5.5% 5.3% Treasury Employees Treasury shares 28.1% shares Employees 2.4% 2.2%
Slide 37: Revenue (excluding IFRIC 12)
REVENUE (excluding IFRIC 12) INTERNATIONAL REVENUE BREAKDOWN (€M) REVENUE BREAKDOWN IN EUROPE EXCLUDING FRANCE (M€) Spain 129 Germany Poland 292 77 Other Europe 115 France excluding France 5,424 979 83% 15% International excluding Europe 108 2% Benelux 366 37
Slide 38: Consolidated Balance Sheet – Assets
CONSOLIDATED BALANCE SHEET ‐ ASSETS In millions euros 30/06/2013 31/12/2013 30/06/2014 Property, plant and equipment 1,408 1,474 1,446 Investment property 6 6 6 Fixed assets held under concessions 12,496 12,415 12,243 Goodwill on acquisition 2,850 2,849 2,850 Other intangible assets 168 172 170 Inve
Slide 39: Consolidated Balance Sheet – Equity and Liabilities
CONSOLIDATED BALANCE SHEET – EQUITY AND LIABILITIES In millions euros 30/06/2013 31/12/2013 30/06/2014 Share capital 358 358 369 Consolidated reserves 2,400 2,429 2 673 Profit & losses directly accounted for in equity (428) (340) (331) Net profit for the period 58 257 68 Total capital and reserves,
Slide 40: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT In millions euros H1 2013 2013 H1 2014 Revenue 6,578 14,272 6,597 Other income 2 6 2 Raw materials and consumables used (1,233) (2,627) (1,170) Staff costs (1,701) (3,357) (1,699) Other expenses (2,622) (5,767) (2,650) Taxes other than corporate tax (184) (398) (197) Am
Slide 41: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT In millions euros H1 2013 2013 H1 2014 Cash flow generated by operations 451 1,055 486 Change in working capital in operating activities (639) (160) (431) Change in working capital in non operating activities (220) (125) (186) Capital expenditure (413) (1,014) (386)
Slide 42: Group Financial Structure
GROUP FINANCIAL STRUCTURE Financial net debt largely non recourse and raised in dedicated SPVs, down €M 595 over 1 year In millions euros 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 Concessions Financial debt 11,570 11,565 11,532 11,678 11,341 Macquarie quasi equity 729 729 736 708 662 Su
Slide 43: APRR & Eiffarie Financial Structure
APRR & EIFFARIE FINANCIAL STRUCTURE Ongoing deleveraging of the APRR and Eiffarie group with financial net debt down by €M 190 over 6 months 10,328 9,971 9,790 10,067 9,786 710 9,596 729 708 729 736 662 3,522 2,482 2,331 2,461 2,386 2,203 Macquarie quasi equity Eiffarie APRR 6,760 6,751 6,877 6,664
Slide 44: Financial Result
FINANCIAL RESULT In millions euros H1 2013 2013 H1 2014 Concessions (348) (723) (367) Of which: APRR (167) (335) (170) Eiffarie & Financière Eiffarie (111) (244) (129) Financière Eiffarie Group (278) (579) (299) A'Liénor (A65) (22) (44) (22) VP1 (Millau Viaduc) (15) (27) (12) Héveil, Hanvol and H'en
Slide 45: Capex
CAPEX In millions euros H1 2013 2013 H1 2014 Intangible 17 30 7 Concessions 322 845 313 Tangible 41 99 50 Financial 33 41 16 TOTAL 413 1,014 386 45
Slide 46: Contracting: Market Segmentation in 2013
CONTRACTING: MARKET SEGMENTATION IN 2013 Civil Construction engineering Public Works Civil engineering 10% 16% Earthworks Equipements 12% / Non residential Residential Roads 52% 38% 60% Environment 9% Railways and other 3% Metallic construction Energy Maintenance and industrial Climatic contracting
Slide 47: Contracting: Customer Segmentation in 2013
CONTRACTING: CUSTOMER SEGMENTATION IN 2013 Construction Public Works Motorways and concessions Private 19% 21% Public National 42% companies 12% Private 58% State Local 4% authorities 44% Metallic construction Energy Public 16% Public Private 48% 52% Private 84% 47
Slide 48: Appendices – Concessions
APPENDICES Concessions =) FIFFAGE
Slide 49: PPP Life Cycle
PPP LIFE CYCLE Eiffage Financial investor Length in 1 3‐6 1‐2 15‐20 Years Value in € TENDER CONSTRUCTION / OPERATION OPERATION CAPEX RAMP UP Financial structuring PPP contracts signing Call for tender 5%‐10% Equity Sale of the equity 90%‐95% Debt Maintaining maintenance contract Construction contrac
Slide 50: Assets in Concessions
ASSETS IN CONCESSIONS End of Name Type Country Status Shareholders Consolidation method concession APRR Toll concession FR 2032 Operational 50.1% Full consolidation A65 Toll concession FR 2067 Operational 65.0% Full consolidation Millau Viaduc Toll concession FR 2079 Operational 51.0% Full consolida
Slide 51: Assets in Concessions
ASSETS IN CONCESSIONS Carrying value of assets held under Concession (€M)* 30/06/2013 31/12/2013 30/06/2014 APRR 11,216 11,134 10,957 A65 1,031 1,028 1,024 Millau Viaduc 374 373 371 Norscut 26 30 33 Prado Carénage Tunnel 20 22 20 Prado SouthTunnel 9 9 7 Dakar – Diamniadio Highway 60 80 80 HSR Perpig
Slide 52: APRR – Debt Schedule and Bond Yields
APRR – DEBT SCHEDULE AND BOND YIELDS Debt profile as at 31 December 2013 Coupon at launch Yield on 30th June 2014 €M 700 – 7.5% 2015 0.5% €M 500 – 4.375% 2016 0.7% €M 300 – FRN 2016 0.5% 200 €M 1,000 – 5.0% 2017 0.9% 300 €M 500 – 5.125% 2018 1.0% 500 500 1,000 €M 500 – 4.875% 2019 1.1% €M 500 – FRN
Slide 53: APRR – Traffic Evolution
APRR – TRAFFIC EVOLUTION CHANGE IN TRAFFIC (KMS TRAVELLED, 12 MONTHS ROLLING AVERAGE, REBASED TO Q4 2007) 108 LV 104 100 Total 96 HGV 92 88 84 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q
Slide 54: APRR & AREA – 2014-2018 Management Contract
APRR & AREA – 2014‐2018 MANAGEMENT CONTRACT Tariff formulae • 85% X inflation(1) + 0.37% for APRR and 0.41% for AREA (1) Inflation excluding tobacco, from October Y‐2 to October Y‐1 • In 2014, average increase of 0.80% for APRR and 0.84 % for AREA Around €M 500 of capex covering growth and modernisa
Slide 55: Investor Relations Contact and Agenda
INVESTOR RELATIONS CONTACT AND AGENDA Xavier Ombrédanne xavier.ombredanne@eiffage.com Phone : +33 (0)1 41 32 81 44 Register to receive press release at http://www.eiffage.com/press‐releases EIFFAGE APRR Quarterly information and turnover for the 3rd quarter of 2014 10.11.2014 20.10.2014 Quarterly in
Slide 56: 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