Vinci SA · EURONEXT:DG
Vinci SA — Q1 2013 Earnings Presentation
62 slides from Vinci SA's earnings presentation, June 2013
Slide 1: 1st Quarter 2013 Update
1st Quarter 2013 Update
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: Contents
Contents 1. 1st Quarter 2013 update 2. Outlook 3
Slide 4: 1st Quarter 2013 update
VINCI “ 15* Quarter 2013 update
Slide 5: 1st quarter 2013 update
1st quarter 2013 update Good activity level in a difficult economic climate, particularly in Europe +3.4% Revenue PRevenue up POrder intake up +5.5% Order intake PBacklog up +1.5% PNet debt down Backlog External growth in 2012 and 2013 in line with the Group’s strategic priorities ü 2012: targete
Slide 6: 1st quarter 2013 consolidated revenue
1st quarter 2013 consolidated revenue Concessions Real Estate Devt. Contracting and eliminations +5.2% +0.5% Consolidation Organic scope & exchange growth 8,423 rates 8,147 +6 -88 +2.4% +2.8% +165 +193 Revenue growth: +3.4% +€276m 1Q12 € in millions 1Q13 Change in 13/12 change Organic growth Consoli
Slide 7: 1st quarter 2013 revenue by geographical area
1st quarter 2013 revenue by geographical area Stable in France, Eastern Europe shrinking, double-digit growth everywhere else France stable 63% Eastern Europe -27% Western 3% Europe +12% (excl. France) Asia/Middle East/ 20% Oceania +24% Americas +25% 5% 4% Africa +12% 5% X% Contribution to 1Q13 reve
Slide 8: 1st quarter 2013 VINCI Autoroutes
1st quarter 2013 VINCI Autoroutes Total traffic: Revenue: Investments: A86 Duplex traffic: -0.3% +1.3% €0.9 bn +10% Y-o-Y Y-o-Y planned in 2013 25,215 vehicles/weekday on average in 1Q13 Change in total traffic over 12 rolling months (number of km travelled) 110 Light vehicles 105 +0.4% in 1Q13 100 Total
Slide 9: 1st quarter 2013: Concessions
1st quarter 2013: Concessions Good trend in France and abroad " VINCI Airports: traffic +12% ANA contract signed Open day on the A89 on 15 December 2012 " VINCI Autoroutes: opening of the A89 (Lyon-Balbigny) " LGV Tours-Bordeaux: project ramp-up 2013 planned revenue: ~€1.3 bn (€0.6 bn in 2012) " Comme
Slide 10: 1st quarter 2013: Contracting
1st quarter 2013: Contracting Good trend in France and abroad " 1Q13 order intake: €9.1bn +5.5% Y-o-Y USA: UK: ü Ohio River Bridges Project ü Swansea Bay University buildings ü Salem Creek Connector road ü London commercial office building project France: Jamaica: ü ITER reactor building ü Water
Slide 11: Outlook
VINCI “ Outlook
Slide 12: VINCI Autoroutes outlook
VINCI Autoroutes 2013 traffic " Partial visibility on 2013 stable network traffic (1st quarter 2013 traffic) " Opening of A89 extension (Lyon–Balbigny) Robust economic model " Firm control over operating expenses " Average toll increase on 1 Feb. 2013: close to 2% " Finalisation of 5-year plans (2012-2016
Slide 13: Concessions - Acquisition of ANA in Portugal
Concessions - Acquisition of ANA in Portugal A major step in VINCI’s growth strategy for the airport sector P Perfect fit with VINCI’s acquisition strategy Archipelago of the Azores Porto Flores PA high quality asset with strong growth Horta Ponta Delgada potential Santa Maria Lisbon P50 year conc
Slide 14: The acquisition of ANA fits perfectly with VINCI's strategy
The acquisition of ANA fits perfectly with VINCI’s strategy 2012 pro forma Airports: 13 Airports: 10 Airports: 23 PAX: 9.6 mn PAX: 30.5 mn PAX: 40.1 mn Revenue: €167 mn Revenue: €429 mn EBITDA: € 64 mn EBITDA: €203 mn Revenue: €596 mn 2012 data EBITDA: €267 mn Concessions 6% 13 % business: Accelerate
Slide 15: Contracting - order book close to all-time high
Contracting - order book close to all-time high* €33.1 bn at 31 March 2013, of which approx. 57% to be executed in 2013 Good visibility on activity level € in billions Development of International Breakdown by business line No. of months of average Activity 13/12 change 13/12 business change activit
Slide 16: Contracting - Tours–Bordeaux high-speed rail line
Contracting - Tours–Bordeaux high-speed rail line Work level to reach maximum intensity in 2013 Project Revenue 2011 €0.2 bn 2012 €0.6 bn Forecast project revenue 2013 1Q13 ~ €1.3 bn 2014 ~ €1.3 bn >2014 ~ €0.8 bn Represents incremental spending for France’s public works market in 2013 and 2014 4,50
Slide 17: Strategic priorities
Strategic priorities In a challenging economic environment, especially in Europe: Strict management Reinforcement of synergies n Margin discipline reinforced selectivity of n Optimisation of offers through synergies of order intake Group expertises n Project execution: target better practices n E
Slide 18: 2013 outlook
Outlook 2013 outlook P High level of the Contracting order book P Ramp-up of Tours-Bordeaux HSR P FY impact of 2012 acquisitions Revenue ? Motorway traffic bottoming out Revenue* at least stable * Excluding the impact from ANA or other potential M&A transactions 18
Slide 19: Dividend
Dividend 2012 Dividend: €1.77 per share " Interim dividend of €0.55 per share paid on 15 Nov. 2012 4.9% 2012 dividend " Final dividend: €1.22 per share yield* " 23 April 2013: ex-date " 22 May 2013: payment date Shareholder option: cash or scrip (€32.51 per share) dividend €/share: 1.62 1.62 1.67 1.
Slide 20: Appendixes
Appendixes Structure Business line profiles Financial data Financial management
Slide 21: Structure
VINCI “ Structure
Slide 22: Simplified Organisation Chart
Simplified Organisation Chart 2012 Revenue | Net income * (€ in millions) 38,634 | 1,917 CONCESSIONS CONTRACTING 5,354 | 886 33,090| 915 4,439 | 827 915| 59 9,017| 327 8,747 | 167 15,327 | 421 Headcount at 31 December 2012 (>192,700 employees) 8,015 7,435 64,005 41,193 71,324 * After tax; attributabl
Slide 23: 2012 revenue by market and expertise
2012 revenue by market and expertise 2012 Revenue by: Market Expertise Of which: - France: ~20% - International: ~15% 23
Slide 24: Shareholder base at December 2012
Shareholder base at 31 December 2012 Rest of the world Individual investors United Kingdom North America Employees Institutional Qatari Diar investors 65.2% Rest of Europe Artémis* Treasury shares France " Over 500 institutional investors " Almost 260,000 individual shareholders " 110,000 employees
Slide 25: Business line profiles
VINCI “ Business line profiles
Slide 26: Concessions
Concessions
Slide 27: VINCI Autoroutes
VINCI “ VINCI oo AUTOROUTES
Slide 28: VINCI Autoroutes: Europe's biggest motorway network
VINCI Autoroutes: Europe’s biggest motorway network Key figures (€ in millions) 2012 2011 Δ∆ 12/11 Revenue 4,439 4,409 +0.7% EBITDA 3,087 3,058 +1.0% as % of revenue 69.5% 69.4% Net income 827 820 +0.9% Operating cash flow * 1,744 1,688 +3.3% Investments in concessions (1,049) (1,016) (33) Net debt**
Slide 29: VINCI Autoroutes: Contractual framework of toll increases
VINCI Autoroutes Contractual framework of toll increases ASF Escota Cofiroute* Arcour End of concession 2033 2027 2031 2070 Minimum annual toll increase until end of concession: 70% x i ** Current master plans 2012-2016 2012-2016 2010-2014 N/A - 2013 (light vehicles) *** +2.24% +1.74% +1.91% +5.50% 8
Slide 30: VINCI Autoroutes: Transparent and robust legal framework
VINCI Autoroutes Transparent and robust legal framework " Concessions contracts and their riders define the general framework and the concession company’s missions: " To finance, design and build infrastructure under concession and associated facilities " To meet delivery dates for sections under conc
Slide 31: VINCI Autoroutes
VINCI Autoroutes Y/Y-1 change Q1 Q2 Q3 Q4 2012 1Q13 Traffic - Intercity network -1.3% -2.4% -1.0% -2.2% -1.7% -0.7% of which: Light vehicles -1.2% -2.0% -0.6% -2.1% -1.4% 0.0% Heavy vehicles -2.1% -4.7% -4.6% -2.6% -3.5% -3.8% New sections +0.3% +0.2% +0.1% +0.1% +0.2% +0.4% Toll prices and other effec
Slide 32: VINCI Concessions
VINCI “ VINCI “? CONCESSIONS
Slide 33: VINCI Concessions
Key figures (€ in millions) 2012 2011 Δ∆ 12/11 2012 revenue by geographical area Revenue 915 888 +3.1% United Kingdom 6% France 618 602 +2.7% France 68% International 296 285 +3.8% Rest of Europe 12% EBITDA 285 308 (7.5%) N. America 6% as % of revenue 31.1% 34.7% €0.9 bn Net income 59 32 +84.4% Asia
Slide 34: VINCI Park
Key figures (€ in millions) 2012 2011 Δ∆ 12/11 Revenue 615 599 +2.6% France 429 422 +1.5% " 1,513,000 spaces managed (of which International 186 177 +5.3% 1,063,000 outside France) in 12 countries EBITDA 210 201 +4.6% as % of revenue 34.2% 33.5% " 360,000 spaces under concession or Net income 51 50 +
Slide 35: VINCI Airports
End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 VINCI Airports Cambodia Airport Phnom Penh Concession 2012: Airport Siem Reap Concession 4,313 KPAX 2040 70 % Yes FC Airport Sihanoukville Concession France Airport Chambéry-Savoie DSP (2012: 228 KPAX) 2013 99 %
Slide 36: Other concessions & PPPs in service: France
Other concessions & PPPs in service: France End of VINCI Traffic Consoli- Type Name Description dation1 concession share risk Stadium Stade de France 80,000 seats, Paris 2025 67% yes FC Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM Energy Lucitea Public lighting, Rouen 2027 100% no FC R
Slide 37: Other concessions & PPPs in service: International
Other concessions & PPPs in service: International End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Portugal Bridge Lusoponte Vasco da Gama & 25 de Abril 2030 37.3% yes EM bridges, Lisbon Canada Bridge Confederation Bridge Link to Prince Edward Island 2032 19%
Slide 38: Concessions & PPPs under development
Concessions & PPPs under development End of VINCI Traffic Consoli- Country Type Name Description 1 concession share risk dation Ground-train communication France Rail Synerail system on 14,000 km of 2025 30% no EM track Stadium Allianz Riveria 35,000 seats, Nice 2040 50% yes EM Stadium Dunkirk Arena 1
Slide 39: Contracting
Contracting
Slide 40: Contracting Profile
Contracting Profile Key figures (€ in millions) 2012 2011 Δ∆ 12/11 2012 revenue by geographical area Germany 7% Revenue 33,090 31,495 +5.1% UK 7% France 19,054 18,334 +3.9% France 58% CEE 6% International 14,036 13,161 +6.6% RoE 8% Op. income from ordinary activities 1,403 1,435 (2.2%) €33.1 bn as % o
Slide 41: Contracting 2012 key figures
Contracting 2012 key figures 2012 VINCI VINCI € in millions Eurovia Contracting Energies Construction Revenue 33,090 9,017 8,747 15,327 France 19,054 5,486 5,159 8,410 International 14,036 3,531 3,588 6,917 EBITDA 1,875 532 467 876 as % of revenue 5.7% 5.9% 5.3% 5.7% Operating income from ordinary ac
Slide 42: VINCI Energies key figures
Key figures (€ in millions) 2012 2011 Δ∆ 12/11 Revenue 9,017 8,666 +4.0% Germany 16% France 5,486 5,507 (0.4%) France 61% Switzerland 4% International 3,531 3,160 +11.7% Belgium 4% Op. income from ordinary activities 502 483 +4.0% Netherlands 2% €9.0 bn as % of revenue 5.6% 5.6% RoE 7% Net income 327
Slide 43: Eurovia key figures
Key figures (€ in millions) 2012 2011 Δ∆ 12/11 2012 revenue by geographical area Revenue 8,747 8,722 +0.3% Germany 10% France 5,159 5,098 +1.2% UK 4% International 3,588 3,624 (1.0%) CEE 12% France 59% Op. income from ordinary activities 277 322 (14.2%) RoE 2% €8.7 bn as % of revenue 3.2% 3.7% Canada
Slide 44: VINCI Construction key figures
Key figures (€ in millions) 2012 2011 Δ∆ 12/11 2012 revenue by geographical area Revenue 15,327 14,107 +8.6% UK 12% France 8,410 7,729 +8.8% Belgium 5% France 55% International 6,917 6,378 +8.5% RoE 8% Op. income from ordinary activities 625 630 (0.9%) €15.3 bn as % of revenue 4.1% 4.5% Africa 9% Net
Slide 45: 2012 consolidated financial statements
2012 consolidated financial statements
Slide 46: 2012 revenue: geographic split
2012 revenue: geographic split Revenue growth in France and outside of Europe France % of 2012 revenue CEE +3.2% vs 2011 France €24.3 bn UK Germany 37% Europe ex-France RoE Americas +0.4% vs 2011 Africa €9.3 bn RoW International ex-Europe +21.5% vs 2011 €5.0 bn 46
Slide 47: Income statement (1/2)
Income statement (1/2) € in millions 2012 2011 Δ∆ 12/11 Revenue * 38,634 36,956 +4.5 % Cash flow from operations (EBITDA) 5,418 5,366 +1.0 % % of revenue 14.0 % 14.5 % Operating income from ordinary activities (EBIT) 3,671 3,660 +0.3 % % of revenue 9.5 % 9.9 % Operating income 3,651 3,601 +1.4 % % of
Slide 48: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of € in millions 2012 2011 Δ∆ 12/11 revenue* revenue* Concessions 2,159 40.3% 2,149 40.6% +0.5% VINCI Autoroutes 2,019 45.5% 2,018 45.8% +0.1% VINCI Concessions 139 15.2% 130 14.7% +6.6% Contracting 1,403 4.2% 1,435 4.6% (2.2%)
Slide 49: Income statement (2/2)
Income statement (2/2) € in millions 2012 2011 Δ∆ 12/11 Operating income 3,651 3,601 +1.4 % Financial income/(expense) (657) (621) Income tax expense (969) (984) Effective tax rate 33.3 % 33.6 % Non-controlling interests (109) (92) Net income attributable to owners of 1,917 1,904 +0.7 % the parent %
Slide 50: Financial income/(expense)
Financial income/(expense) € in millions 2012 2011 Δ∆ 12/11 Cost of net financial debt (638) (647) 9 Concessions (668) (719) 51 Contracting 14 14 0 Holding companies and misc. 17 58 (41) Other financial income and expenses (19) 25 (44) Capitalised borrowing costs for investments in progress 71 61 10 D
Slide 51: 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 2012 2011 Δ∆ 12/11 revenue* revenue* Concessions 886 16.6% 852 16.1% +4.0% VINCI Autoroutes 827 18.6% 820 18.6% +0.9% VINCI Concessions 59 6.4% 32 3.6% +84.4% Contracting 915 2.8% 968 3.1% (5.4%) VINCI Energies
Slide 52: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions 2012 Concessions Contracting 2011 Cash flow from operations 5,418 3,372 1,875 5,366 Change in WCR (75) 35 (93) (47) Change in current provisions 38 2 53 140 Income taxes paid (979) (743) (394) (936) Net interest paid (595) (656) (25) (643) Dividends received fro
Slide 53: EBITDA by business line
EBITDA - cash flow from operations before tax and financing costs by business line % of % of € in millions 2012 2011 Δ∆ 12/11 revenue* revenue* Concessions 3,372 63.0% 3,366 63.6% +0.2% VINCI Autoroutes 3,087 69.5% 3,058 69.4% +1.0% ASF/Escota 2,207 69.1% 2,185 68.9% +1.0% Cofiroute 856 70.8% 848 70.6%
Slide 54: Operating investments, net
Operating investments, net € in millions 2012 2011 Δ∆ 12/11 Concessions 58 57 1 VINCI Autoroutes 30 26 4 VINCI Concessions 27 31 (4) Contracting 809 697 112 VINCI Energies 95 94 1 Eurovia 258 223 34 VINCI Construction 457 380 76 VINCI Immobilier et holdings 4 3 1 Purchases of PP&E and intangible ass
Slide 55: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 2012 2011 Δ∆ 12/11 Concessions 1,125 1,109 16 VINCI Autoroutes 1,046 1,017 29 ASF / Escota 861 841 20 Cofiroute 182 172 10 VINCI Concessions 79 91 (12) VINCI Park 46 49 (3) VINCI Airports 31 39 (8) Contracting 14 27 (12) Growth investments in c
Slide 56: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 2012 2011 Free cash flow (after investments) 1,983 2,134 Net financial investments (700)* (172) Other financial cash flows (50) (96) Cash flow before movements in share capital 1 233 1,866 Share capital increases and other operations 340 359 Dividends (1,057) (1,036
Slide 57: Consolidated balance sheet
Consolidated balance sheet € in millions 31 Dec. 2012 31 Dec. 2011 Non-current assets – concessions 26,459 26,590 14.9% Non-current assets – contracting and other 8,921 8,226 ROE (return on equity) WCR and current provisions (6,697) (6,817) Capital employed 28,683 27,999 Equity (14,070) (13,615) 9.0
Slide 58: Financial management
VINCI “ Financial management
Slide 59: Financial debt management
Financial debt management Optimise average maturity of gross debt 2013-2019 maturity schedule (in € bn): 2.7 2.1 1.6 6.1 years 1.3 1.4 1.0 0.9 Average maturity of gross financial debt at end March 2013 H2 H1 2013 2014 2015 2016 2017 2018 2019 Optimise cost of financing Diversify sources of financing "
Slide 60: Net financial debt by entity
Net financial debt by entity Net Net financial financial debt/ debt/ € in millions 2012 EBITDA* 2011 EBITDA* Δ∆ 12/11 Concessions (18,058) 5.4x (18,895) 5.6x 838 VINCI Autoroutes (16,617) 5.4x (17,157) 5.6x 540 VINCI Concessions (1,441) 5.1 x (1,738) 5.6x 298 Contracting 2,095 - 2,914 - (819) Holding c
Slide 61: Maturity of gross financial debt
Maturity of gross financial debt " Average maturity of gross financial debt at end March 2013: 6.1 years (Concessions: 6.4 years) ASF Cofiroute Arcour Other concessions Holdings and misc. 61
Slide 62: IR Contacts and Agenda
IR Contacts and Agenda CONTACTS AGENDA G. Christopher Welton 30 July 2013 christopher.welton@vinci.com 1st half 2013 financial results press release Tel: +33 1 47 16 45 07 31 July 2013 Analyst Meeting (Paris) Thomas Guillois thomas.guillois@vinci.com 24 October 2013 Tel: +33 1 47 16 33 46 Quarterly i