Vinci SA · EURONEXT:DG
Vinci SA — H1 2011 Earnings Presentation
62 slides from Vinci SA's earnings presentation, Aug 31, 2011
Slide 1: 2011 half-year results
2011 half-year results Analysts meeting – 31 August 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 th
Slide 3: First half 2011 highlights
VINCI “ First half 2011 highlights
Slide 4: Strong growth in revenue and profit (H1 2011 vs H1 2010)
First half 2011 highlights Strong growth in revenue and profit (H1 2011 vs H1 2010) ! Revenue: +17.3% ! Operating profit from ordinary activities: +15.3% ! Net profit: +15.7% ! Earnings per share: +10.4% South Europe Atlantic high-speed line (LGV SEA): ! Concession contract signature and coming into fo
Slide 5: Strong growth in revenue and profit
Strong growth in revenue and profit First half Δ∆ (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 6: 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 7: First half highlights by business line
First half highlights by business line
Slide 8: VINCI Autoroutes: Revenue growth 4.2%
VINCI Autoroutes Revenue growth: 4.2% ! Traffic growth on stable network +0.9% ! New sections (A86 Duplex & Arcour) +0.5% ! Toll price and other effects +2.8% Revenue +4.2% (H1 2011 vs H1 2010) Change in traffic on stable network over 12 rolling months (number of km travelled) Light vehicles: +0.7% at H1
Slide 9: VINCI Autoroutes First half highlights
VINCI Autoroutes First half highlights ! Growth in cash flow* % of % of (in € millions) H1 2010 H1 2011 Δ∆ 11/10 revenue revenue Cash flow* 1,333 67.6% 1,403 68.3% + 5.2% of which ASF/Escota 949 66.8% 998 67.7% + 5.1% Cofiroute 376 70.2% 395 70.2% + 5.0% * Cash flow from operations before tax and cost o
Slide 10: South Europe Atlantic high-speed line (SEA) between Tours and Bordeaux
VINCI Concessions South Europe Atlantic high-speed line (SEA) between Tours and Bordeaux ! 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)
Slide 11: VINCI Concessions First half highlights
VINCI Concessions First half highlights ! VINCI Park ! Revenue growth: 4.2% (of which organic growth: 2.7%) ! France: +2.6% ! International: +8.4% (consolidation of Meteor in the UK) ! Operating profit growth of 17.5% (22.9% of revenue) ! 1.4 million spaced managed, of which 365,600 under concession
Slide 12: Contracting: Sound organic growth
Contracting: Sound organic growth Improvement in operating margins ! Revenue: +19.9%, of which: ! Organic growth: 9.5% ! External growth (Cegelec, Faceo, Tarmac): 10.2% ! Strong growth in operating profit (34%) and net profit (26%) ! Energy business line: operating margin increased to 5.4% ! Eurovia:
Slide 13: Record order book: €30 billion at 30 June 2011
Record order book: €30 billion at 30 June 2011 Change in order book (in € billions) France Order intake +18.7 Revenue International (14.8) Other +0.2 30.0 25.9 12.2 12.6 +16% 13.3 17.8 31 Dec. 2010 30 June 2011 Change (in € billions) at 30 June 2011 vs 31 Dec. 2010 France 17.8 34% International* 12.
Slide 14: Contracting: Good order intake momentum
Contracting Good order intake momentum ! Order intake: +32% (€18.7 billion) +24% excluding changes in consolidation scope Significant projects ! France: ! High-speed line between Tours and Bordeaux ! Terrasses du Port, Marseilles: shopping centre, offices and car parks ! EDF terminal in Dunkirk: 3 cryo
Slide 15: Consolidated half-year financial statements
Consolidated half-year financial statements Christian Labeyrie Executive Vice-President and Chief Financial Officer
Slide 16: Income statement
Income statement First half Δ∆ 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 17: Financing income/(expense)
Financing income/(expense) First half Δ∆ 11/10 (in € millions) 2010 2011 actual restated Cost of net financial debt (328) (318) 10 Concessions (326) (324) 2 of which VINCI Autoroutes (304) (303) 1 Contracting 5 8 3 Holding cos. & misc. (7) (2) 5 Other financial income and expenses 7 14 7 Capitalised b
Slide 18: 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 VINCI 153 139 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% 5.1
Slide 19: Change in working capital requirement and current provisions
Change in working capital requirement and current provisions (in € billions) H1 2010 H1 2011 Δ∆ 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
Slide 20: First half 2011 change in net financial debt
First half 2011 change in net financial debt (in € billions) Dividends & share buy- backs Cash flow Operating (EBITDA) investments (1.2) (14.6) (13.1) +2.3 Δ∆ 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) Net
Slide 21: Consolidated balance sheet
Consolidated balance sheet 30 June ’10 31 Dec. ’10 30 June ’11 (in € millions) restated EQUITY AND LIABILITIES 12,173 13,025 13,055 Equity 1,768 1,729 1,797 Non-current provisions and other long-term liabilities 18,663 18,650 17,989 Borrowings (A) WCR and current provisions 5,291 6,453 5,057 ASSETS
Slide 22: Net financial debt by entity
Net financial debt by entity Net Net 31 Dec. financial Δ∆ 30 June 30 June financial (in € millions) 2010 30-6-11 / debt/ 2010* 2011 debt/ 30-6-10 EBITDA EBITDA** Concessions (15,599) 4.9 x (15,877) (15,864) 4.8 x 13 VINCI Autoroutes (13,965) 4.8 x (14,143) (14,292) 4.8 x (149) VINCI Park (787) 4.4 x (7
Slide 23: First half 2011 management and financial policy (1/2)
First half 2011 management and financial policy (1/2) ! Renewal of “corporate” credit facilities ! Cofiroute: €500 million, maturing February 2016 ! VINCI: €4 billion, maturing June 2016 (+ option for a 2-year extension) Liquidity strengthened > €10 billion at 30 June 2011 (including unused confirmed
Slide 24: First half 2011 management and financial policy (2/2)
First half 2011 management and financial policy (2/2) ! Reduction in sensitivity to interest rate risk ! 70% of gross long-term debt is at fixed, capped or inflation-indexed rates (66% at 31-12-2010) ! 85% of net debt is therefore protected ! Optimised cost of financing ! Average cost of long-term debt:
Slide 25: Outlook
VINCI “ Outlook
Slide 26: Recent indicators
Recent indicators VINCI Autoroutes (total to 21 August 2011) ! Motorway traffic: +0.5% ! Light vehicles: +0.4% ! Heavy vehicles: +1.2% ! Toll revenue: +3.7% Contracting ! Order book at 31 July: €29.7 billion* Up 14.5% from 31 December 2010 ! France: +31% ! International: -3% * Excluding DEME and QDVC:
Slide 27: 2011 outlook: Concessions
2011 outlook: Concessions ! VINCI Autoroutes ! Assumption of slightly below 4% growth in toll receipts ! Objective of improvement in EBITDA/revenue ratio maintained ! Start of discussions on new ASF/Escota master plan ! VINCI Concessions ! About 30 greenfield projects under study ! France: stadiums,
Slide 28: 2011 outlook: Contracting
2011 outlook: Contracting ! Revenue growth between 7% and 8% in 2011 ! Of which about 3% attributable to organic growth ! Energy markets still positive, especially in France ! Stabilisation of road-building business in Europe ! Significant order book in construction ! Operating profit from ordinary ac
Slide 29: 2011 outlook
2011 outlook ! Estimated revenue growth of about 7% (assuming revenue stability in the second half of 2011 compared with the high level achieved in the second half of 2010) ! Net income growth expected between 5% and 6% ! Slight increase in net financial debt * compared to 31 December 2010 due princi
Slide 30: Decision of the Board of Directors on 30 August 2011
Decision of the Board of Directors on 30 August 2011 ! Interim dividend of €0.55 per share up 5.8% (€0.52 per share in December 2010) ! Ex-date: 12 December 2011 ! Cash payment on 15 December 2011 30
Slide 31: Appendixes
Appendixes Shareholder base at 30 June 2011 Additional information by business line Detailed consolidated financial statements
Slide 32: 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% Rest of continental Europe 18.4% 17.9% North America 12.5% 13.2% United Kingdom 9.1% 8.5% Rest of the world 3.5% 3.7% Treasury shares 2.1% 4.1% Employees 9.0% 10.0% Qatari Diar 5.7% 5.6% Art
Slide 33: Appendixes: Concessions
VINCI “ Appendixes: Concessions
Slide 34: 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
Slide 35: VINCI Autoroutes: key figures
VINCI Autoroutes: key figures ASF/ (in € millions) Total 2010 Cofiroute Arcour H1 2011 H1 2010 Escota Revenue 4,259 1,474 563 17 2,054 1,972 Cash flow from operations before 2,929 998 395 10 1,403 1,333 tax and cost of financing (EBITDA) as % of revenue 68.8% 67.7% 70.2% 58.1% 68.3% 67.6% Operating profi
Slide 36: VINCI Autoroutes: 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% 8
Slide 37: VINCI Park: key figures
VINCI Park: key figures (in € millions) 2010 H1 2010 S1 2011 Δ∆ 11/10 ! 1,416,000 spaces (of which 959,000 Revenue 596 289 301 4.2% outside France) managed in 12 - France 416 207 212 2.6% - International 180 82 89 8.4% countries* ! 366,000 spaces under concessions Op. profit from ordinary 111 59 69 17
Slide 38: Other concessions & PPPs (1/2)
Other concessions & PPPs (1/2) End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Other concessions and PPPs in France France Stadium Stade de France, Paris 80,000 seats 2025 67% yes FC Tunnel Prado Carénage Road tunnel, Marseilles 2025 33% yes EM Energy Lucitea
Slide 39: Other concessions & PPPs (2/2)
Other concessions & PPPs (2/2) 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 Can
Slide 40: Appendixes: Contracting
VINCI “ Appendixes: Contracting
Slide 41: Energy business line First half highlights and key figures
Energy business line First half highlights and key figures ! Revenue: +43.1%, of which 5.6% organic growth ! France: good momentum in energy (transport and production) and telecommunications infrastructure; upturn in industrial sector ! VINCI Energies: good performance in Germany, the Benelux and Cen
Slide 42: Eurovia First half highlights and key figures
Eurovia First half highlights and key figures ! Revenue: +13.7%, of which 10.4% organic growth ! France: steady business in public rail transport sector; traditional markets (coatings) tighter ! Growth in Poland, Germany and Slovakia; decline in the United Kingdom, Czech Republic and United States !
Slide 43: VINCI Construction First half highlights and key figures
VINCI Construction First half highlights and key figures ! Revenue: +12.4%, of which 11.4% organic growth ! France: dynamic housing market; upturn in private non-residential sector; ramp-up of major civil engineering projects (Lyons metro, Bordeaux bridge, stadiums, etc.) ! Good performance of Soleta
Slide 44: Appendixes: Detailed consolidated financial statements
Appendixes: Detailed consolidated financial statements
Slide 45: Growth in revenue
Growth in revenue +17.3% +€2,552m 17,323 14,771 Exchange rates Consolidation +€20m Organic growth scope +€1,374m +€1,158m H1 2010 H1 2011 Exchange rates and Change in H1 11/10 change Organic growth Consolidation scope misc. revenue Concessions +5.1% +0.1% - +5.2% Contracting +9.5% +10.2% +0.2% +19.9
Slide 46: 36% of revenue generated outside France
36% of revenue generated outside France (41% in Contracting) H1 2011 revenue by geographical area H1 2011 Δ∆ 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 47: Consolidated revenue
Consolidated revenue 2010 H1 2010 Δ∆ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 5,097 2,388 2,512 5.2% 5.1% VINCI Autoroutes 4,259 1,972 2,054 4.2% 4.2% VINCI Park 596 289 301 4,2% 2.7% Other concessions 242 127 157 23.7% 25.1% Contracting 28,150 12,339 14,792 19.9%
Slide 48: Consolidated revenue – France
Consolidated revenue – France 2010 H1 2010 Δ∆ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 4,791 2,250 2,367 5.2% 5.2% VINCI Autoroutes 4,247 1,966 2,048 4.2% 4.2% VINCI Park 416 206 212 2.6% 2.5% Other concessions 129 78 106 37.2% 37.2% Contracting 15,911 7,115 8,703
Slide 49: Consolidated revenue – International
Consolidated revenue – International 2010 H1 2010 Δ∆ 11/10 (in € millions) H1 2011 actual restated actual comparable Concessions 306 138 146 5.5% 3.7% VINCI Autoroutes 12 6 6 ns ns VINCI Park 180 82 89 8.4% 3.3% Other concessions 114 50 51 2.5% 5.5% Contracting 12,239 5,223 6,089 16.6% 6.4% Energy b
Slide 50: Increase in operating profit and improvement in margins
Increase in operating profit and improvement in margins Concessions Contracting Total VINCI Group +15.3% +8.3% 1,569 1,360 1,004 927 +34.0% VINCI 111 Concessions 87 542 VINCI 839 893 Autoroutes 405 223 Energy 149 36 Eurovia (2) 258 283 Construction H1 10 H1 11 H1 10 H1 11 H1 10 H1 11 Op. profit/ 38.8%
Slide 51: Operating profit from ordinary activities by entity
Operating profit from ordinary activities by entity 2010 % of H1 2010 % of H1 % of (in € millions) Δ∆ 11/10 actual revenue* restated revenue* 2011 revenue* Concessions 2,094 41.1% 927 38.8% 1,004 40.0% 8.3% VINCI Autoroutes 1,923 45.2% 839 42.6% 893 43.5% 6.4% VINCI Park 111 18.6% 59 20.3% 69 22.9% 1
Slide 52: Net profit by entity
Net profit by entity 2010 % of H1 2010 (in € millions) H1 2011 Δ∆ 11/10 actual revenue* restated Concessions 875 17.2% 388 435 12.1% VINCI Autoroutes 837 19.6% 342 382 11.7% VINCI Park 61 10.2% 28 37 30.1% Other concessions & concession holding cos. (22) - 17 16 Contracting 836 3.0% 287 362 26.2% Ene
Slide 53: Cash flow from operation before tax and cost of financing (EBITDA)
Cash flow from operation before tax and cost of financing (EBITDA) 2010 % of H1 2010 % of % of (in € millions) H1 2011 Δ∆ 11/10 actual revenue* restated revenue* revenue* Concessions 3,197 62.7% 1,473 61.7% 1,557 62.0% 5.7% VINCI Autoroutes 2,929 68.8% 1,333 67.6% 1,403 68.3% 5.2% of which ASF/Escota
Slide 54: Net investments in operating assets
Net investments in operating assets 2010 H1 2010 (in € millions) H1 2011 Δ∆ 11/10 actual restated Concessions 45 15 23 8 VINCI Autoroutes 15 5 9 4 VINCI Concessions 30 9 14 5 Contracting 647 313 283 (30) Energy business line 75 30 44 14 Eurovia 218 110 89 (21) VINCI Construction 354 174 151 (23) Hol
Slide 55: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs 2010 H1 2010 (in € millions) H1 2011 Δ∆ 11/10 actual restated Concessions 852 325 490 165 VINCI Autoroutes 759 281 456 175 of which ASF / Escota 655 293 383 89 Cofiroute 99 (13) 73 86 VINCI Concessions 93 43 33 (10) of which VINCI Park 33 14 18 4 Contracting
Slide 56: Cash flow statement (1/2)
Cash flow statement (1/2) 2010 H1 2010 (in € millions) H1 2011 12 months restated Cash flow from operations 5,052 2,111 2,333 Change in WCR and current provisions (78) (808) (1,335) Income taxes paid (950) (516) (481) Net interest paid (693) (420) (376) Dividends received from equity-accounted entitie
Slide 57: Cash flow statement (2/2)
Cash flow statement (2/2) H1 2010 (in € millions) 2010 H1 2011 restated Free cash flow (after investments) 1 919 (204) (602) Net financial investments (2,508)* (1,739)* (146) Other financial cash flows 14 11 9 Cash flow before movements in share capital (575) (1,932) (738) Capital increases and other oper
Slide 58: 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 59: Net financial debt by entity
Net financial debt by entity 30 June 2010 31 December 2011 Debt/ cash Δ∆ vs (in € millions) 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) (385) (372
Slide 60: Maturity of gross financial debt
Maturity of gross financial debt ! Average maturity of gross financial debt at 30 June 2011: 6.4 years (of which concessions: 7.4 years) ASF group ASF Holding Cofiroute Arcour Other concessions Holding cos. & misc. 60
Slide 61: Breakdown of gross financial debt
Breakdown of gross financial debt Breakdown by lender type Breakdown of fixed/floating rate after hedging 30 June % of 31 Dec. 2011 total 2010 Fixed rate 9,709 55% 56% Capped/inflation-linked 2,685 15% 10% floating rate Total “protected” 12,394 70% 66% Floating rate 5,296 30% 34% 31-12-2010 30-6-2011 Tot
Slide 62: Investor relations contacts
Investor relations contacts Christopher Welton christopher.welton@vinci.com Tel: +33 1 47 16 45 07 Marie-Amélia Folch marie-amelia.folch@vinci.com Tel: +33 1 47 16 45 39 62