Vinci SA · EURONEXT:DG
Vinci SA — H1 2016 Earnings Presentation
71 slides from Vinci SA's earnings presentation, Jul 29, 2016
Slide 1: 2016 first half results
2016 first half results 29 July 2016 Gare Eole CNIT – La Défense (project)
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking objectives and statements about VINCI’s financial situation, operating results, business activities and expansion strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty facto
Slide 3: A9 motorway rerouting near Montpellier
To reduce congestion and improve traffic flows around the access to Montpellier, VINCI Autoroutesis rerouting the A9 motorway. The existing section will become an urban bypass. Construction works are expected to be completed in 2017. A9 motorway - France 3
Slide 4: VINCI Airports acquires AERODOM
VINCI Airports has acquired 100% of AERODOM, the operator of 6 airports concessions in Dominican Republic. The company has been consolidated in VINCI’s accounts since April 2016. La Isabela Airport - Dominican Republic 4
Slide 5: Auckland urban lighting contract
VINCI Energies has won the contract to operate, maintain and renew the urban lighting provision in the northern and western areas of Greater Auckland. This 4-year contract calls for the maintenance of an estate of 37,000 light sources and its power supply network. It includes replacing a minimum of
Slide 6: D3 motorway section in Slovakia
A consortium led by Eurovia is building a new section of the D3 motorway, in the north of Slovakia. This new 4.2 km section will link Strážov and Brodno, on the outskirts of Žilina. D3 motorway – Slovakia 6
Slide 7: La Cité du Vin, Bordeaux
After almost three years of works, the Cité du Vin in Bordeaux built by VINCI Construction France was opened on 31 May 2016. La Cité du Vin – Bordeaux 7
Slide 8: Chernobyl confinement shelter
VINCI Construction Grands Projets together with Bouygues Travaux Publics has designed and built a new confinement shelter in the form of an arch of exceptional dimensions, to permit the future dismantling of the old sarcophagus and wreckage of the reactor that exploded on 26 April 1986. Chernobyl –
Slide 9: Fehmarnbelt tunnel contract
VINCI Construction has signed a conception-construction contract with the Danish government Nouvelle for the building of the 18 photo synergies km immersed Fehmarnbelt tunnel, which will connect concessions Denmark and Germany. construction Fehmarnbelt tunnel, Denmark (project) 9
Slide 10: 2016 first half highlights
2016 first half highlights Xavier Huillard, Chairman and CEO
Slide 11: First semester 2016 key figures
First semester 2016 key figures Vs. H1 2015 Group Revenue €17.6 bn -1.5% Concessions Toll road traffic +3.3 % Airport passenger traffic +10.2 %* Contracting Order book at 30 June 2016 €29.2 bn +2 % vs. 30 June 2015 Order intake in H1 2016 €16.9 bn +11 % Group EBIT margin 9.8 % +120 bp Group net inco
Slide 12: Concessions overview in H1 2016
Concessions overview in H1 2016 Revenue : €2.9 bn (+6.8 %) EBITDA : €2.0 bn (+7.4 %) EBITDA/Revenue : 70.1 % Revenue €0.5 bn +18.6 % Revenue €2.4 bn +4.9 % EBITDA €0.2 bn +20.7 % EBITDA €1.8 bn +5.3 % Passenger traffic Traffic H1 2016/ H1 2015/ Change y-o-y H1 2015 H1 2014 H1 2016/ H1 2015/ Change y
Slide 13: VINCI Autoroutes: toll increases and traffic outlook
VINCI Autoroutes: toll increases and traffic outlook Toll increases applied on 1 st February 2016 H1 Capex (€m) 359 ASF +1.63 % 307 Escota +1.18 % Cofiroute (excl. A86 Duplex) +0.82 % In line with the amendments to the concessions contracts approved by decree in August 2015 H1 2015 H1 2016 HV traffi
Slide 14: Contracting overview in H1 2016
Contracting overview in H1 2016 Revenue : €14.7 bn (-3.6 %) EBIT : €0.3 bn (+7.5 %) EBIT Margin : 2.3 % Of which 47 % outside France €5.0 bn +3.4 % actual -4.7 % actual -7.9 % actual Revenue Revenue €3.3 bn Revenue €6.5 bn +0.4 % lfl* -3.8 % lfl* -8.6 % lfl* France International France France Intern
Slide 15: Contracting order intake
Contracting order intake Order intake up by 11 % compared to H1 2015 Breakdown by business Quarterly breakdown by geographical area (in € bn) lines (in € bn) +16 % +1 % +12 % +9 % +11 % 15.3 16.9 8.7 8.4 7.8 7.7 7.6 8.2 7.6 +5 % 7.2 stable +21% -5% +18% +15 % +12 % +15% +3% +6% +22% H1 2015 H1 2016
Slide 16: First half 2016 revenue by geographical area
First half 2016 revenue by geographical area 41.3 % of H1 2016 revenue generated outside France (40.6 % in H1 2015) France €10.3 bn -3 % 59 % Central & Eastern Europe -11 % €0.6 bn Western Europe 4% (excl. France) €3.8 bn +2 % Asia/Middle East/Oceania 22 % €1.1 bn +0% Americas +1 % 6% €1.1 bn Africa
Slide 17: 2016 first half financial data
2016 first half financial data Christian Labeyrie, Executive Vice-President and CFO
Slide 18: First half 2016 consolidated revenue
First half 2016 consolidated revenue (in € millions) Concessions Contracting +6.8 % -3.6 % 17,880 Organic Scope Organic Scope FX 17,619 +5.8 % +1.0 % -4.7 % +2.5 % -1.4 % Revenue change: -1.5 % Organic: -2.6 % Scope: +2.3 % FX: -1.2 % H1 2015 H1 2016 18
Slide 19: Operating income from ordinary activities (EBIT)
Operating income from ordinary activities (EBIT) Group EBIT: €1,720 m (+€180 m; +11.7 %) EBIT Margin: 9.8 % (+120 bp ) Concessions Contracting EBIT: €1,361 m +€175 m (+14.7 %) EBIT: €338 m +€24 m (+7.5 %) EBIT Margin: 47.2% +320 bp EBIT Margin: 2.3% +20 bp VINCI VINCI VINCI VINCI Eurovia Autoroutes
Slide 20: Income statement
Income statement (in € millions) 1H 2016 1H 2015 Δ 16/15 Operating income from ordinary activities (EBIT) 1,720 1,540 +11.7 % % of revenue 9.8% 8.6% - share-based payment expense (IFRS 2) (43) (36) - profit / loss of equity-accounted cos. & miscellaneous 25 82 Recurring operating income 1,702 1,586
Slide 21: Change in net financial debt during first half 2016
Change in net financial debt during the first half of 2016 (in € billions) Share buy-backs Capital increases (0.3) 0.3 (14.4) Interest & taxes Investments (12.4) EBITDA 2.6 paid (0.7) Δ WCR (0.8) (1.1) misc. Acquisitions/ Dividends (0.1) Disposals (0.7) (1.0) Free cash flow: €(38) m H1 2015: €247 m
Slide 22: Consolidated balance sheet
Consolidated balance sheet (in € millions) 30 June 2016 31 Dec. 2015 30 June 2015 Non-current assets – Concessions 28,493 27,559 27,470 Non-current assets – Contracting and other 9,025 9,121 8,983 WCR, provisions and other current assets & liabilities (5,388) (6,548) (5,251) Capital employed 32,130
Slide 23: Financial policy
Financial policy Good spread of gross financial Credit rating upgrade debt maturities over time May 2016: Moody’s upgrades credit rating at 2.1 2.6 2.1 A3 (LT); P-1 (ST); outlook Stable 1.2 1.6 1.5 1.8 August 2015: S&P confirms credit rating at A- (LT); A-2 (ST); outlook Stable H2 2016 2017 2018 201
Slide 24: Outlook and strategy
Outlook and strategy Xavier Huillard, Chairman and CEO
Slide 25: Contracting order book
Contracting order book Stabilisation of the order book with longer time-spread Breakdown by geographical area Breakdown by business line Δ June 16/ June 15 Δ June 16 / June 15 Actual Excl. SEA* Actual Excl. SEA* 28.7 29.2 +2 % +3 % 27.7 28.7 29.2 +2 % +3 % 27.7 13.9 13.4 14.9 +7 % +10 % 6.8 6.1 6.4
Slide 26: 2016 Outlook
2016 Outlook Concessions Contracting ü VINCI Autoroutes revenue should grow at a slightly ü The time spread of the order books and the H1 2016 higher rate than last year, in view of the H1 2016 achievements confirm stable revenue at VINCI Energies performance and a slight contraction of Eurovia and
Slide 27: 2016 interim dividend
Dividend 2016 interim dividend Interim dividend (all-cash) per share: €0.63 Compared to €0.57 as of 1H 2015 (+10.5 %) § Ex-date: 8 November 2016 § Payment date: 10 November 2016 27
Slide 28: VINCI's strategic priorities for sustainable, profitable growth
VINCI’s strategic priorities for sustainable, profitable growth VINCI Airports ü Take advantage of worldwide air traffic growth ü Restructure under-performing Extract more country-business value Special focus ü Seek out greenfield and combinations from our on growth brownfield opportunities ü Reinfo
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Slide 30: Appendixes
Appendixes Structure and shareholder base Business line profiles Financial data
Slide 31: Structure and shareholder base
Structure and shareholder base
Slide 32: A global leader in concessions and contracting
VINCI – A global leader in concessions and contracting 185,500 €38.5 bn ~3,500 €38.2 bn employees 2015 Group revenue business units market cap. at June 30, 2016 117,000 >110 280,000 61% employee shareholders countries where VINCI operates estimated worksites shareholders outside France Concessions R
Slide 33: Shareholder base at June 2016
Shareholder base at 30 June 2016 France United Kingdom 12.1 % 16.5 % Individual investors Rest of Europe 8.0 % Institutional investors 18.2 % 594,9 m Employees shares 9.3 % 72.1 % 4.0 % Qatar Holding LLC North America 6.6 % 19.0 % Treasury Shares 6.3 % Rest of the World Shareholding structure Over 5
Slide 34: Business line profiles
VINCI Ws Business line profiles
Slide 35: Concessions Profile
Concessions Profile 2015 Key figures 2015 revenue by geographical area Revenue 5,804 RoW 3 % France 5,053 Portugal 10 % International 751 EBITDA 3,933 as % of revenue 67.8% Net income 1,295 France 87 % Capital employed at 31 December 2015 26,246 €5.8 bn Free Cash Flow 1,464 o/w growth investments (9
Slide 36: Extension of the maturity of the concessions portfolio
Extension of the maturity of the concessions portfolio Remaining life (1) of the portfolio (number of years) 27 26 25 24 24 23 22 28 27 28 1 7 7 1 7 1 1 1 3 Extensions due to VINCI Airports development 27 26 Extensions due to VINCI 25 24 23 22 Autoroutes development and 21 20 19 stimulus packages 18
Slide 37: VINCI Autoroutes
VINCI Ws VINEI a” AUTOROUTES
Slide 38: Autoroutes: France's leading toll road concession operator
VINCI Autoroutes France’s leading Toll Road concession operator 2015 Key figures 4,398 km under concession (€ in millions) GCO* Revenue 4,871 approx. 50 % EBITDA as % of revenue 3,522 72.3% of conceded French toll roads Net income 1,100 Capital employed at 31 Dec. 2015 21,866 Free Cash Flow 1,355 >3
Slide 39: Contractual framework of toll increases
VINCI Autoroutes Contractual framework of toll increases (LVs) ASF Escota Cofiroute excl. A86 Duplex End of concession 2036 2032 2034 2016 (applied on Feb. 1st ) 1.63 % 1.18 % 0.82 % 2017* 70% x i + 0.945 % 70% x i + 0.34 % 70% x i + 0.32 % 2018* 70% x i + 0.62 % 70% x i + 0.62 % 70% x i + 0.62 % 20
Slide 40: Current capex forecast
VINCI Autoroutes Current capex forecast (including Stimulus Plan signed in August 2015) 1000 ASF Group Cofiroute 900 800 700 600 500 In € millions 400 300 200 100 0 2015 2016e 2017e 2018e 2019e 40
Slide 41: Autoroutes - Stimulus Plan (2015)
VINCI Autoroutes - Stimulus Plan (2015) Main terms of the amendments to the concession contracts approved by decree of 21 August 2015, included in the MoU signed on 9 April 2015 with the Grantor 1. Stimulus Package (approved by the European Commission in 2014) CAPEX of €2 bn to be performed, compens
Slide 42: Stimulus package related projects
VINCI Autoroutes Stimulus package related projects 42
Slide 43: VINCI Airports
VINCI Ws VINCI a” AIRPORTS
Slide 44: VINCI Airports, a key strategic focus for VINCI
VINCI Airports, a key strategic focus for VINCI 34 airports managed and > 115 million* passengers managed >100 Passenger traffic (in million pax.) 12 airports in France Excluding ADP 69 3 airports in Cambodia 10 airports in Portugal 47 43 1 airport in Chile 10 2 airports in Japan 6 airports in Domin
Slide 45: VINCI Airports concessions list
VINCI Airports VINCI AIRPORTS VINCI Country Name Description KPAX in 2015 End of concession Traffic risk Consolidation* share Phnom Penh Concession Cambodia Siem Reap Concession 6,470 2040 70% Yes FC Sihanoukville Concession Quimper Cornouaille DSP* 89 2016 100% Yes FC Poitiers-Biard DSP* 123 2019 1
Slide 46: Highways and other concessions
VINCI Highways and other concessions
Slide 47: VINCI Highways
VINCI Highways VINCI HIGHWAYS Country Type Name Description End of concession VINCI share Traffic risk Consolidation* Road Infrastructure Motorway A4 Horselberg 45 km 2037 50% yes EM Germany Motorway A9 Thuringia/Bavarian border 46.5 km 2031 50% no EM Motorway A5 Malsch–Offenburg 60 km 2039 54% yes
Slide 48: Highways and other concessions
VINCI Highways and other concessions End of VINCI Traffic Country Type Name Description Consolidation* concession share risk Bridges & Tunnels Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM France Tunnel Prado Sud Road tunnel, Marseille 2055 58.5% yes EM Netherlands Tunnel Coentunnel A
Slide 49: VINCI Concessions: railways and other
VINCI Concessions VINCI RAILWAYS VINCI Traffic Country Type Name Description End of concession Consolidation* share risk Rail Rhônexpress 23 km light rail system, Lyon 2038 35% yes EM Rail GSM-Rail Ground-train communication system on 14,000 km of track 2025 30% no EM France Bus TCSP Martinique Oper
Slide 50: Contracting
VINCI Ws Contracting
Slide 51: Contracting Profile
Contracting Profile 2015 Key figures 2015 revenue by geographical area (in € millions) Revenue 32,570 Asia/Russia 4% Rest of World 3% France 17,187 Africa 5% International 15,382 France 53% Americas 7% EBIT 1,100 as % of revenue 3.4 % Rest of Europe 6% Net income 682 €32.6 bn Capital employed at 31
Slide 52: VINCI Energies
VINCI Energies 2015 Key figures 1,600 2015 revenue by geographical area Business Rest of the world 7% (in € millions) Units Africa 4% France 51% Revenue 10,180 Rest of Europe 9% France 5,178 Switzerland 4% International 5,002 Netherlands 3% €10.2 bn EBIT 568 Belgium 3% as % of revenue 5.6 % Net inco
Slide 53: Eurovia
Eurovia 2015 Key figures 400 2015 revenue by geographical area (in €millions) Business Rest of the Americas 7% Revenue 7,899 Units Canada 5% France 57% Rest of Europe 2% France 4,483 International 3,416 Central and Eastern Europe 12% EBIT 233 €7.9 bn as % of revenue 3.0 % UK 8% Net income 146 Net fi
Slide 54: VINCI Construction
VINCI Construction 2015 Key figures 1,100 2015 revenue by geographical area (in € millions) Business Rest of the world 5% Units Asia / Russia 7% Revenue 14,491 Africa 7% France 52% France 7,527 International 6,964 Americas 9% EBIT 299 €14.5 bn as % of revenue 2.1 % Rest of Europe 3% Net income 164 C
Slide 55: VINCI Immobilier
VINCI Ws VINCI Immobilier
Slide 56: VINCI Immobilier
VINCI Immobilier 2015 Key figures Presence in 2015 reservations by destination (€ in millions) 15 Managed revenue 826 French cities Social, Institutional Buy to let Consolidated revenue (100% in France) 707 private 34% 37% EBIT 56 Investors as % of revenue 7.9 % €0.7 bn Net income 41 Net financial d
Slide 57: Financial Data
VINCI Ws Financial Data
Slide 58: Consolidated revenue
Consolidated revenue Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 2,882 2,699 +6.8 % +5.8 % 5,804 VINCI Autoroutes 2,365 2,253 +4.9 % +4.9 % 4,871 VINCI Airports 455 384 +18.6 % +11.4 % 820 Other Concessions 62 62 +0.5 % +1.3 % 112 Contracting 14,695 15,244 -3.6 % -4.7
Slide 59: Consolidated revenue – France
Consolidated revenue – France Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 2,465 2,356 +4.6 % +4.6 % 5,053 VINCI Autoroutes 2,365 2,253 +4.9 % +4.9 % 4,871 VINCI Airports 64 59 +9.2 % +9.2 % 115 Other Concessions 36 44 -17,6 % -17,6 % 67 Contracting 7,830 8,318 -5.9 %
Slide 60: Consolidated revenue – international
Consolidated revenue – international Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 417 343 +21.6 % +13.7 % 751 VINCI Airports 391 325 +20.3 % +11.8 % 705 Other Concessions 26 18 +44.5 % +48.5 % 45 Contracting 6,866 6,926 -0.9 % -2,1 % 15,382 VINCI Energies 2,332 2,225 +
Slide 61: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of Δ 16/15 % of € in millions 1H 2016 1H 2015 FY 2015 revenue* revenue* €m % revenue* Concessions 1,361 47.2 % 1,186 44.0 % 175 +14.7 % 2,576 44.4 % VINCI Autoroutes 1,205 51.0 % 1,070 47.5 % 135 +12.7 % 2,350 48.2 % VINCI Airp
Slide 62: ROI – Recurring operating income by business line
ROI – Recurring operating income by business line % of % of Δ 16/15 % of € in millions 1H 2016 1H 2015 FY 2015 revenue* revenue* €m % revenue* Concessions 1,389 48.2 % 1,216 45.1 % 173 +14.2 % 2,627 45.3 % VINCI Autoroutes 1,199 50.7 % 1,068 47.4 % 132 +12.3 % 2,341 48.1 % VINCI Airports 187 41.0 %
Slide 63: Financial income/(expense)
Financial income/(expense) € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Cost of net financial debt (262) (277) 15 (557) Other financial income and expenses (21) (4) -17 (24) Borrowing costs capitalised 18 11 8 23 Discounting retirement obligations and provisions (26) (27) 1 (49) Foreign exchange ga
Slide 64: EBITDA
EBITDA* % of Δ 16/15 % of € in millions 1H 2016 % of revenue* 1H 2015 FY 2015 revenue* €m % revenue* Concessions 2,019 70.1 % 1,879 69.6 % 140 +7.4 % 3,933 67.8 % VINCI Autoroutes 1,766 74.7 % 1,678 74.4 % 89 +5.3 % 3,522 72.3 % VINCI Airports 239 52.6 % 198 51.7 % 41 +20.7 % 412 50.2 % Other Conces
Slide 65: Operating investments, net
Operating investments, net € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Concessions 16 17 -0 29 VINCI Autoroutes 4 5 -1 10 VINCI Airports 6 5 1 3 Other Concessions 7 7 0 15 Contracting 331 310 21 713 VINCI Energies 48 44 4 121 Eurovia 127 97 30 226 VINCI Construction 156 169 -13 366 VINCI Immobilie
Slide 66: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Concessions 419 385 +34 917 VINCI Autoroutes 359 307 +52 784 O/w : ASF 217 195 +22 398 Escota 55 51 +4 274 Cofiroute 62 60 +2 111 VINCI Airports 55 53 +2 109 Other Concessions 5 25 -20 24 Contracting 17 11 +5 (1
Slide 67: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions 1H 2016 1H 2015 FY 2015 EBITDA* 2,606 2,471 5,664 Change in WCR and current provisions (1,137) (831) 307 Income taxes paid (495) (465) (1,041) Net interest paid (331) (331) (534) Dividends received from companies accounted for under the equity method 54 73 125
Slide 68: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 1H 2016 1H 2015 FY 2015 Free cash flow (after investments) (38) 247 2,995 Net financial investments and other cash flows (1,038) (161) (431) Cash flow before movements in share capital (1,075) 86 2,564 Share capital increases and other operations 321 311 (71)
Slide 69: Net financial debt by business line
Net financial debt by business line (in € millions) 30 June 2016 31 Dec. 2015 Δ 16/15 30 June 2015 Concessions (23,884) (23,551) -333 (19,777) VINCI Autoroutes (19,643) (20,247) +605 (16,738) VINCI Airports (3,826) (2,812) -1,014 (2,901) Other Concessions (415) (492) +77 (138) Contracting (94) 1,034
Slide 70: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt (€17.1 bn) at end June 2016: 4.5 years (Concessions: 4.9 years) Repayment schedule at end June 2016 3 000 2 500 2 000 1 500 1 000 500 0 S2 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 > 2032
Slide 71: IR Contacts and Agenda
IR Contacts and Agenda CONTACT AGENDA 29 July 2016 1st half 2016 results Arnaud Palliez 25 October 2016 Arnaud.palliez@vinci.com 3rd quarter 2016 information Tel: +33 1 47 16 45 07 8 November 2016 Interim dividend ex-date Alexandra Bournazel November 2016 10 Alexandra.bournazel@vinci.com Interim div