Vinci SA · EURONEXT:DG
Vinci SA — H1 2009 Earnings Presentation
56 slides from Vinci SA's earnings presentation, Sep 1, 2009
Slide 1: 2009 Half-Year Results
2009 Half-Year Results Analyst Meeting – 1 September 2009 Xavier Huillard Director and Chief Executive Officer Christian Labeyrie Executive Vice-President and Chief Financial Officer
Slide 2: First Half 2009 Highlights
First Half 2009 Highlights First Half 2009 Highlights 2009 Interim Financial Statements / Financial Policy Conclusion Appendixes
Slide 3: First Half 2009 Key Figures
First Half 2009 Key Figures € in millions H1 2008 H1 2009 ∆ 09/08 Revenue* 15,716 15,155 -3.6% Operating profit from ordinary activities 1,462 1,358 -7.1% % of revenue* 9.3% 9.0% Net profit attributable to owners of the parent 733 690 -5.8% Cash flow from operations 2,179 2,147 -1.4% % of revenue* 13.9
Slide 4: Slight Decline in Revenue
Slight Decline in Revenue Revenue*: -3.6% € in millions H1 2008 H1 2009 ∆ 09/08 ∆ 09/08 actual comparable Concessions 2,277 2,297 +0.8% +0.5% Organic VINCI Energies 2,222 2,122 -4.5% -5.3% decrease -5.6% FX Eurovia 3,639 3,464 -4.8% -7.5% 15,716 -1.3% VINCI Construction 7,530 7,315 -2.9% -5.2% 15,15
Slide 5: Stronger International Business: almost 38% of revenue generated outside France
Stronger International Business: almost 38% of revenue generated outside France First Half Revenue by Geographical Area ∆ at H1 ∆ 09/08 constant € in millions actual exchange 2009 rates France 9,435 -6.3% -6.3% United Kingdom 1,097 +4.2% +16.6% Central and Eastern Europe 859 -15.0% -3.6% Germany 757
Slide 6: Good Resilience of Operating Margins
Good Resilience of Operating Margins Op. profit: -7.1% € in millions H1 2008 H1 2009 Concessions 901 856 % of revenue** 37.3%* 37.3% 1,462 1,358 VINCI Energies 111 106 Eurovia 76 36 VINCI Construction 362 325 Contracting 548 466 % of revenue 4.1% 3.6% Holding companies & misc. 13 35 Op. profit 1,462 1
Slide 7: VINCI Motorways: First Half 2009 Highlights
VINCI Motorways: First Half 2009 Highlights Recovery in light vehicle traffic in 2nd quarter / stabilisation of HGV traffic decline Traffic on a stable network: light vehicles Traffic on a stable network: heavy vehicles Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 H1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 H1 09 Toll
Slide 8: VINCI Motorways: First Half 2009 Highlights
VINCI Motorways: First Half 2009 Highlights A19 (Arcour) opened on 16 June 2009, 4 months ahead of schedule First section of A86 Duplex opened on 1 July 2009 8
Slide 9: Concessions: First Half 2009 Highlights
Concessions: First Half 2009 Highlights VINCI Park: good resilience of revenue (€322 million) and margins Organic growth: +4.3% (of which +2.2% in France and +8.4% elsewhere) External growth: +2.1% (North America) EBITDA/revenue ratio stable at 30.7% 1,247,000 spaces managed, of which 370,000 under
Slide 10: Concessions: First Half 2009 Highlights
Concessions: First Half 2009 Highlights Good access to financing Almost €1.2 billion in 10-year loans raised by ASF Financial close for 2 new concession / PPP projects: A5 Malsch Offenburg (A-Modell) in Germany: € 0.4 billion R1 express road in Slovakia: about € 1 billion 10
Slide 11: Contracting: First Half 2009 Highlights
Contracting: First Half 2009 Highlights Fall in revenue in line with forecast: -3.7% Organic decrease: -5.9% Changes in consolidation scope (mainly ETF & Taylor Woodrow Construction): +3.8% Impact of exchange rates: -1.6% (£ sterling and Central European currencies) Limited decline in operating marg
Slide 12: Contracting: First Half 2009 Highlights
Contracting: First Half 2009 Highlights Order book maintained at high level Greater proportion of international business (major contracts and specialised activities in particular) Operating units responded well and adapted to new market conditions objective: protect margins Order book (€ in bn): O
Slide 13: 2009 Interim Financial Statements and Financial Policy
2009 Interim Financial Statements and Financial Policy First Half 2009 Highlights 2009 Interim Financial Statements / Financial Policy Conclusion Appendixes
Slide 14: Income Statement
Income Statement € in millions H1 2008 H1 2009 ∆ 09/08 Revenue 15,716 15,155 -3.6% Operating profit from ordinary activities 1,462 1,358 -7.1% % of revenue* 9.3%** 9.0% Operating profit 1,432 1,356 -5.3% Financial income/(expense) (281) (322) Income tax expense (356) (295) Non-controlling interests (6
Slide 15: Financial income/(expense)
Financial income/(expense) € in millions H1 2008 H1 2009 Cost of net financial debt (395) (379) Concessions (388) (369) Contracting 35 9 Holding companies and misc. (42) (19) Other financial income and expenses 114 57 Capitalised borrowing costs for investments in concessions 66 70 Gain/(loss) on sale
Slide 16: Cash flow from operations
Cash flow from operations Concessions account for 65% of total Cash flow*: -1.4% cash flow (63% in the first half of 2008) 2,179 2,147 € in millions H1 H1 ∆ 09/08 2008 2009 Concessions 1,370 1,396 +2.0% % of revenue** 60.1% 60.8% VINCI Energies 126 123 -2.2% Eurovia 158 132 -16.6% VINCI Construction 515
Slide 17: Change in net financial debt
Change in net financial debt € in billions Cash flow from operations (0.3) before tax and Dividends financing costs -0.6 (15.7) (15.4) +2.1 Financial: -0.1 Capital Concessions: -0.6 increase and Operation: -0.4 misc. -0.7 +0.6 ∆ WCR Interest and -0.7 taxes paid Operation Investment Financial +0.7 (1.1)
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet 30 June 31 Dec. 30 June € in millions 2008 2008 2009 LIABILITIES 9,026 9,733 8,508 Equity 1,278 1,088 1,242 Non-current provisions and other long-term liabilities 19,879 20,173 20,887 Financial debt WCR and current provisions 4,253 5,409 4,775 ASSETS 25,913 26,242 26,553 N
Slide 19: Net financial debt
Net financial debt Debt is held mainly in concession assets Excluding concession project financing without recourse to VINCI SA, net financial debt reduced €1.4 billion since 30 June 2008 30 June 31 Dec. 30 June Debt/ Cash € in millions flow ∆09/08 2008 2008 2009 Concessions (15,368) (15,523) (15,458) 5
Slide 20: Financial Policy
Financial Policy Appropriate early action to meet future refinancing needs ASF: almost €1.2 billion in new 10-year financing raised during the first half of 2009 Repayment of VINCI 2002 bond (€1 billion) in July 2009 No significant debt repayments before 2012 (€1.1 billion in 2010; €0.9 billion in 2011)
Slide 21: Conclusion
Conclusion First Half 2009 Highlights 2009 Interim Financial Statements / Financial Policy Conclusion Appendixes
Slide 22: Recent indicators
Recent indicators Motorway traffic on a stable network (total at 23 August 2009): +0.9% Light vehicles: +3.3% Confirmation of improving trend Heavy vehicles: -12.8% Stabilisation of traffic decline Order book at 31 July remained at high level 94% of 2009 activity contracted for at the end of July About 6
Slide 23: 2009 Outlook (1/2)
2009 Outlook (1/2) Priorities remain unchanged: prudence and responsiveness CONCESSIONS CONTRACTING VINCI Autoroutes France Select new business carefully Control operating expenses Adapt structures and and investments production resources to Dialogue with concession anticipated decline in business g
Slide 24: 2009 Outlook (2/2)
2009 Outlook (2/2) Priorities remain unchanged: prudence and responsiveness FINANCIAL GOALS Preserve margins Stabilise financial debt Plan the next stages of debt refinancing 24
Slide 25: Decision of the Board of Directors on 31 August 2009
Decision of the Board of Directors on 31 August 2009 Interim dividend of €0.52 per share Ex-dividend date: 14 December 2009 Payment in cash on 17 December 2009 25
Slide 26: Shareholder Base at 30 June 2009
Shareholder Base at 30 June 2009 at 31 Dec. at 30 June 2008 2009 Employees 8.2% 9.1% Treasury shares 4.6% 4.0% Individual shareholders 12.5% 12.6% Artemis 4.2% 4.1% Predica 2.4% 2.4% French institutionals 25.7% 25.9% UK institutionals 6.9% 8.0% Other European institutionals 15.6% 16.5% North America
Slide 27: Appendixes
Appendixes First half 2009 highlights and key figures by business line Detailed consolidated financial statements at 30 June 2009
Slide 28: Resilience of operating margins
Resilience of operating margins Revenue*: -3.6% Op. profit: -7.1% Cash flow: -1.4% 15,716 15,155 1,462 4,2 2,179 2,147 1,358 13.9% of rev.* 14.2% of rev* 2,277 +0.8% 2,297 9.0%** of rev.* % 9.0% of rev.* 1,370 1,396 13,391 -3.7% 12,901 901 856 60.1% 60.8% 37.3%** 37.3% 548 466 799 732 4.1% 3.6% 6.0% 5
Slide 29: First Half 2009 Highlights and Key Figures by Business Line
Appendixes First Half 2009 Highlights and Key Figures by Business Line First half 2009 highlights and key figures by business line Detailed consolidated financial statements at 30 June 2009
Slide 30: VINCI Autoroutes France
VINCI Autoroutes France Europe's biggest motorway network ASF Escota Cofiroute Arcour Network under 2,714 459 1,100 101 concession (km) No. of km in service 2,633 459 1,100 101 End of concession 2032 2026 2030 2070 Opened No. of km travelled 27,644 6,513 10,576 in June in 2008 (in millions) 2009 Exce
Slide 31: VINCI Autoroutes France: clearly defined contractual framework for toll prices
VINCI Autoroutes France: clearly defined contractual framework for toll prices ASF Escota Cofiroute Arcour End of concession 2032 2026 2030 2070 Minimum annual toll increase until end of concession: 70% x CPI Contract under way 2007–2011 2007–2011 Under discussion N/A • 2009 85% x CPI + 0.825% 85% x C
Slide 32: VINCI Autoroutes France: First Half 2009 Highlights
VINCI Autoroutes France: First Half 2009 Highlights Toll revenue stability and improvement in light vehicle traffic during the second quarter First-half 2009 change in toll revenue ASF Escota Cofiroute Total Traffic on a stable network -0.5% -1.0% -0.8% -0.7% Light vehicles +2.3% +0.1% +2.2% +1.9% He
Slide 33: Arcour – A19 (France): illustration of VINCI's business model
Arcour – A19 (France): illustration of VINCI's business model 101 km of motorway between Orleans and Sens via Montargis, forming southern bypass around Paris region Respect for sustainable development 100% VINCI; operated by Cofiroute Key dates Contract signed on 31 March 2005 Opened to traffic on 16 J
Slide 34: VINCI Park: First Half 2009 Highlights
VINCI Park: First Half 2009 Highlights € in millions H1 2008 H1 2009 ∆09/08 As of 30 June 2009, VINCI Park was Revenue 303 322 +6.2% operating over 1.2 million parking - France 201 206 +2.2% - International 102 116 +14.2% spaces in 12 countries Op. profit 60 59 -1.7% 370,000 under concession or freeh
Slide 35: Other Concessions (1/2)
Other Concessions (1/2) End of VINCI Consolid- Country Type Name Description concession share ation 1 Other concessions France France Tunnel Prado Carénage Tunnel in Marseilles 2025 33% EM Tunnel Prado Sud Tunnel in Marseilles 2054 58.5% PC Light rail Rhônexpress 15 km light rail system in Lyons 203
Slide 36: Other Concessions (2/2)
Other Concessions (2/2) End of VINCI Consoli- Country Type Name Description concession share dation 1 Other concessions Greece Greece Bridge Rion–Antirion 2.9 km link between 2039 57.4% FC Peloponnese and mainland Greece Motorway Maliakos–Kleidi 230 km 2037 14% EM Motorway Athens–Patras–Corinth 365
Slide 37: VINCI Energies: First Half 2009 Highlights
VINCI Energies: First Half 2009 Highlights € in millions H1 2008 H1 2009 ∆09/08 Good resilience of infrastructure Revenue 2,222 2,122 -4.5% (energy and transport) and business - France 1,546 1,480 -4.3% - International 676 642 -5.1% communications sectors Op. profit 111 106 -4.3% Service and industri
Slide 38: Eurovia: First Half 2009 Highlights
Eurovia: First Half 2009 Highlights € in millions H1 2008 H1 2009 ∆09/08 France: anticipated decline in business Revenue 3,639 3,464 -4.8% and impact of weather during 1st quarter - France 2,332 2,134 -8.5% - International 1,307 1,330 +1.8% Business outside France driven by major Op. profit 76 36 -53
Slide 39: VINCI Construction: First Half 2009 Highlights
VINCI Construction: First Half 2009 Highlights € in millions H1 2008 H1 2009 ∆09/08 Decline of business in building sector Revenue 7,530 7,315 -2.9% - France 4,009 3,722 -7.2% Structures and production resources - International 3,521 3,593 +2.0% adapted to market changes, if and Op. profit 362 325 -1
Slide 40: Detailed 2009 interim consolidated financial statements
Appendixes Detailed 2009 interim consolidated financial statements Half-year 2009 highlights and key figures by business line Detailed 2009 interim consolidated financial statements
Slide 41: Income Statement
Income Statement € in millions 2008 H1 2008 H1 2009 ∆ 09/08 Revenue, of which 33,930 15,952 15,391 -3.5% Revenue excluding construction revenue related to Concession 33,458 15,716 15,155 -3.6% subsidiaries External construction revenue related to Concession subsidiaries 472 236 236 +0.3% Operating p
Slide 42: Consolidated revenue
Consolidated revenue ∆09/08 ∆09/08 € in millions 2008 H1 2008 H1 2009 actual comparable Concessions 4,781 2,277 2,297 +0.8% +0.5% VINCI Autoroutes France 3,972 1,874 1,877 +0.2% +0.2% VINCI Park 619 303 322 +6.2% +4.3% Other infrastructure 190 100 97 -2.8% -5.1% Contracting 28,520 13,391 12,901 -3.7
Slide 43: Consolidated revenue - France
Consolidated revenue - France ∆09/08 ∆09/08 € in millions 2008 H1 2008 H1 2009 actual comparable Concessions 4,467 2,129 2,128 -0.0% -0.0% VINCI Autoroutes France 3,962 1,871 1,871 +0.0% +0.0% VINCI Park 406 201 206 +2.2% +2.1% Other infrastructure 100 56 51 -9.1% -9.1% Contracting 16,288 7,887 7,33
Slide 44: Consolidated revenue - International
Consolidated revenue - International ∆09/08 ∆09/08 € in millions 2008 H1 2008 H1 2009 actual comparable Concessions 315 149 169 +13.5% +7.5% VINCI Autoroutes France 11 3 6 +115% +99% VINCI Park 213 102 116 +14.2% +8.4% Other infrastructure 91 44 47 +5.2% -0.4% Contracting 12,232 5,504 5,565 +1.1% -2
Slide 45: Concessions subsidiaries' construction revenue (application of IFRIC 12)
Concessions subsidiaries’ construction revenue (application of IFRIC 12) € in millions 2008 H1 2008 H1 2009 ∆09/08 ASF/Escota 345 161 179 +11.1% Cofiroute 272 163 82 -49.5% Arcour 281 111 82 -25.9% VINCI Park 33 16 18 +10.7% Other infrastructure 81 26 79 ns Concession subsidiaries’ construction reven
Slide 46: Operating profit from ordinary activities by business line
Operating profit from ordinary activities by business line 2008 % H1 2008 % H1 2009 % ∆ 09/08 € in millions of rev.* of rev.* of rev.* Concessions 1,966 38.6%* * 901 39.6% 856 37.3% -5.0% ASF/Escota 1,223 38.1%** 545 36.2%** 503 36.9% +2.0%*** * Cofiroute 584 54.2% 274 53.5% 266 51.8% -2.9% Arcour - -
Slide 47: Net profit by business line
Net profit by business line 2008 % H1 2008 H1 2009 ∆ 09/08 € in millions of rev. Concessions 756 15.8% 345 340 -1.4% ASF / Escota 478* 16.5%* 202 183 -9.2% Cofiroute 269 25.0% 130 123 -6.0% Arcour (1) (1) (1) VINCI Park 68 11.0% 26 26 +1.5% Other infrastructure (59) (12) 9 Contracting 884 3.1% 362 302
Slide 48: Cash flow from operations by business line
Cash flow from operations by business line 2008 % H1 2008 % H1 2009 % ∆ 09/08 € in millions of rev.* of rev.* of rev.* Concessions 2,936 61.4% 1,370 60.1% 1,396 60.8% +2.0% ASF/Escota 1,902 65.7% 880 64.6% 895 65.6% +1.6% Cofiroute 772 71.6% 364 71.3% 358 69.8% -1.7% Arcour 1 - - (0) - - VINCI Park 20
Slide 49: Operating cash flow generation
Operating cash flow generation € in millions 2008 H1 2008 H1 2009 ∆09/08 Cash flow from operations before tax and 4,872 2,179 2,147 -1.4% financing costs Change in working capital requirement 733 (390) (757) and current provisions Net financial expenses paid (882) (463) (471) Income tax paid (582) (349)
Slide 50: Investments in operating assets
Investments in operating assets € in millions 2008 H1 2008 H1 2009 Investments in operating assets 993 510 481 VINCI Construction 540 274 272 Eurovia 330 168 156 VINCI Energies 75 38 31 VINCI Concessions 45 30 20 - Holding companies and misc. 3 2 Proceeds from sales of property, plant and (95) (37)
Slide 51: Purchases of concession fixed assets & external growth
Purchases of concession fixed assets & external growth € in millions 2008 H1 2008 H1 2009 Operating cash flow 3,244 503 272 Investments in concessions & PPP (1,218) (532) (585) of which : ASF / ESCOTA (424) (226) (264) Cofiroute (excluding A86) (184) (89) (91) A86 (164) (85) (63) Arcour (A19) (273) (91
Slide 52: Cash Flow Statement
Cash Flow Statement € in millions 2008 H1 2008 H1 2009 Free cash flow after investments 1,819 (135) (371) Dividends (829) (523) (553) Capital increases 387 290 529 Share buy-backs (200) (223) - Changes in share capital (642) (456) (24) Net cash flow for the period 1,177 (591) (395) Other cash flows and
Slide 53: Consolidated Balance Sheet
Consolidated Balance Sheet € in millions 30 June 2008 31 Dec. 2008 30 June 2009 ASSETS Non-current assets – concessions 25,913 26,242 26,553 Non-current assets – other business lines 4,593 4,765 4,882 Current financial assets 40 41 52 Net cash managed 3,182 4,802 5,186 Total Assets 33,728 35,850 36,6
Slide 54: Net financial debt
Net financial debt 30 June 31 Dec. 30 June Net debt / in € millions ∆ vs 12-08 2008 2008 2009 Cash flow Concessions (15,368) (15,523) (15,458) 5.2x +65 ASF + Escota (10,679) (10,451) (10,372) 5.4x +79 Cofiroute (3,270) (3,259) (3,217) 4.2x +42 Arcour (260) (507) (572) NS -65 VINCI Park (803) (853) (844
Slide 55: Gross medium/long-term debt maturity schedule
Gross medium/long-term debt maturity schedule Average maturity of long-term debt (€ 20.4bn) : 6.9 years Concessions : 7.8 years Holding companies and other business lines : 2.4 years ASF ASF Holding Cofiroute Arcour Other concessions Holding companies and misc. 55
Slide 56: VINCI IR contacts
VINCI IR contacts G. Christopher WELTON +33 1 47 16 45 07 christopher.welton@vinci.com Marie-Amélia FOLCH +33 1 47 16 45 39 marie-amelia.folch@vinci.com 56