Vinci SA · EURONEXT:DG
Vinci SA — Investor Day (July 2012)
80 slides from Vinci SA's investor day presentation, Jul 2, 2012
Slide 1: VINCI Investor Day
VINCI INVESTOR DAY London, 2 July 2012
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
Slide 3: VINCI Investor Day: London, 2 July 2012
VINCI Investor Day: London, 2 July 2012 08:00 – 08:30 Registration 11:30 – 12:00 Q&A 08:30 – 10:00 Session 1 12:00 – 13:00 Lunch Christian LABEYRIE, CFO VINCI Bruno DUPETY, Chairman SF 13:00 – 13:30 Transit to Lee Tunnel Martin PRATT, EVP SB Jérôme STUBLER, CEO SF 13:30 – 14:00 LT Presentation Keith
Slide 4: Introduction
Introduction Christian LABEYRIE Executive Vice President and CFO of VINCI
Slide 5: Soletanche Freyssinet, a VINCI Group company
Soletanche Freyssinet, a VINCI Group company Revenue | Net Income * (2011) in € millions 36,956 | 1,904 CONCESSIONS CONTRACTING 5,297 | 852 31,495 | 968 8,666 | 315 8,722 | 220 14,107 | 433 VINCI Construction VINCI Construction Sogea-Satom VINCI Construction Entrepose France Other Europe (Afrique) G
Slide 6: Contracting - Strategic priorities
Contracting - Strategic priorities 3 main acquisition target areas: • Energies: Ø Growth potential in mature and new economies Ø High margins Ø Scope for market consolidation • Oil & Gas: Ø Energy market growth profile Ø Benefit from oil companies’ capex plans (IOCs & NOCs) • Specialised Civil
Slide 7: Soletanche Freyssinet within VINCI Construction
Soletanche Freyssinet within VINCI Construction Revenue Revenue EBIT Net profit 6% 8% 9% 2006 94% 92% 91% Total VINCI Construction: €10.6bn Total VINCI Construction: €496m Total VINCI Construction: €342m 14% 17% 23% 2011 86% 83% 77% Total VINCI Construction: €14.1bn Total VINCI Construction: €630m To
Slide 8: Film
MS SOLETANCHE FREySSINeT
Slide 9: What exactly is Soletanche Freyssinet?
What exactly is Soletanche Freyssinet ? Bruno DUPETY Chairman of Soletanche Freyssinet CEO of VINCI Construction - International Operations
Slide 10: Soletanche Freyssinet revenue 2011
Soletanche Freyssinet, a Vinci Group company Revenue* (2011) in € millions 2,403 1,278 177 573 160 215 * Management books - including jointly controlled entities 10
Slide 11: Profile
Profile • A culture of specialisation in soils, structures and nuclear activities covering: • An active engineering, innovation and R&D policy with 350 inventions and 1,500 patents filed • A strategy focused on high added-value solutions • Vertical integration of equipment and materials specific to
Slide 12: Specialised civil engineering value chain
Specialised civil engineering value chain Maintenance Dismantling Design Supply Construction Repair Decommissioning 12
Slide 13: Key figures
Key figures * Revenue Operating profit from Net profit ** ordinary activities ** in € millions and as a % of in € millions in € millions and as a % of revenue revenue 2 403 2 194 2 105 136 134 5.7 % 98 1 202 112 6.1 % 88 4.1 % 985 1 170 5.3 % 71 4.0 % 3.4 % 547 651 519 573 506 549 2009 2010 2011 200
Slide 14: A strong and diversified international presence
A strong and diversified international presence Europe 50 % of which France North America 23% Asia 14 % 15 % Middle East 5% Latin America Oceania 9% 5% Africa x% of 2011 revenue * 2% * Management books - including jointly controlled entities 14
Slide 15: 2011 revenue breakdown by type of work
2011 revenue breakdown by type of work 15
Slide 16: Management principles and values
Management principles and values • A culture constantly focused on margin and cash • Culture of safety • Constant innovation and R&D investment • Professionalism and technical excellence • Empowerment and autonomy at local business unit level • Sustainable development policy 16
Slide 17: Innovation
Innovation In each of its business activities, Soletanche Freyssinet focuses on innovation. Our R&D teams devise and develop new, more efficient, more competitive and more sustainable solutions to constantly improve our ability to meet clients’ needs and give them the benefit of the latest technolog
Slide 18: Martin Pratt
Martin PRATT MARTIN PRATT Executive VP of Northern Europe & Middle East Soletanche Bachy
Slide 19: Soletanche Bachy 2011 Revenue
Soletanche Bachy 2011 Revenue * = €1,278 million France: 24% / ROE: 26% / ROW: 50% • Over 9,000 people • Foundations and ground technologies Jet 2% Grouting 5% Diaphragm wall 31% Piles 21% Drilling 2% Underground works 5% Anchors 6% Soil Improvement Other specialities 7% 21% Hydraulic grab * Managem
Slide 20: Diaphragm walls
Diaphragm walls SPAIN - Valencia - Corte Inglés - Diaphragm wall 54m deep POLAND - Warsaw - Prosta Center - 3,600m2 of diaphragm wall 0.60m thick 20
Slide 21: Piles
Piles Starsol piles, and cased piles 21
Slide 22: Soil mixing
Soil mixing Geomix Springsol Trenchmix 22
Slide 23: Foundations: C803, Hong Kong
Foundations: C803, Hong Kong Construction of part of the foundations of the future Kowloon station (diaphragm walls, cut-and-cover tunnel, piles) 23
Slide 24: Foundations: Tour Odéon, Monaco
Foundations: Tour Odéon, Monaco, France The tallest building in the Principality of Monaco at 160 meters, with 48 storeys and 10 underground levels Micro-piles, shotcrete, anchors Sheet-piles, shotcrete, anchors Temporary retaining wall for Diaphragm wall installation of the drilling fluid plant 24
Slide 25: Underground car parks: Cardinet, Paris
Underground car parks: Cardinet Car park, Paris, France 609 spaces and 6 underground levels (2011) 25
Slide 26: Small diameter hydraulic tunnels
Small diameter hydraulic tunnels IFT, Colombia Design and building of a 9.4 km long tunnel and of 16 connection shafts for a main sewer with an earth pressure tunnel boring machine CLP Hong-Kong Tunnels for the 132 kV power cables beneath dense urban environment and under the sea 26
Slide 27: Wolf Creek Dam, Kentucky, USA
Wolf Creek Dam, Kentucky, USA Dam renovation: diaphragm wall, piles, grouting curtain etc. 27
Slide 28: Bruno Dupety
Bruno DUPETY Chairman of Soletanche Freyssinet CEO of VINCI Construction - International Operations
Slide 29: Menard 2011 Revenue
Menard 2011 Revenue * = €177 million France: 12% / ROE: 19% / ROW: 69% • Over 600 people • Soil improvement techniques Controlled modulus columns 26% Other soil improvement techniques Stone 5% columns 7% Piles 12% Vibroflotation 9% Other specialities 7% Dynamic compaction 34% Port Botany, Australia
Slide 30: Soil improvement
Soil improvement • Objectives: • Increase soil bearing capacity and stability • Limit subsidence following construction • Reduce the risk of liquefaction (seismic risk) • Advantages: • Alternative to deep foundations Tower of Pisa, Italy • Avoids soil substitution • Global treatment, saving time Soi
Slide 31: Menard Clients – Solutions for…
Menard Clients – Solutions for… Housing Development Plants Roads and Railways Kuweit New Cities - Kuweit Camau Power plant – Vietnam Gdansk Ringway – Poland Dynamic Compaction (DC) / Replacement Vacuum Controlled ModulusColumn (CMC) & Vertical Drains Warehouses Tanks Ports and Airports Trois rivière
Slide 32: Jérôme Stubler, CEO of Soletanche Freyssinet
Jérôme STUBLER CEO of Soletanche Freyssinet
Slide 33: Freyssinet 2011 Revenue
Freyssinet 2011 Revenue * = €573 million France: 22% / ROE: 29% / ROW: 49% • Over 5,500 people • Structures new build and repair Structural strenghtening 15% Handling 5% Protection & Cable Regeneration Structure 16% 5% Structural fittings 13% Prestressing & Other Post-‐ specialities tensioning 11%
Slide 34: Activities: New build
Activities §New build Stay Cable & suspension bridge structures Prestressing & Post-tensioning VERTICALLY INTEGRATED: - Concrete-made tanks - Nuclear containment vessels § DESIGN - Bridges - Buildings § CONSTRUCTION METHODS § MANUFACTURING & SUPPLY OF ACCESSORIES § INSTALLATION ON SITE 34
Slide 35: Stay Cable bridge structures: Pont de Térénez
Stay Cable bridge structures: Pont de Térénez, France Freyssinet designed, supplied and installed the stay cables (300 tonnes) and prestressing (146 tonnes) 35
Slide 36: Stay Cable bridge structures: Russky Island Bridge
Stay Cable bridge structures: Russky Island Bridge, Vladivostok, Russia Main span: 1,104 meters (world record); 320 meter high pylons; longest stay: 590 m (19 to 85 strands – 3,700 tons); super compact 36
Slide 37: Stay Cable bridge structures: BC Place, Vancouver
Stay Cable bridge structures: BC Place, Vancouver, Canada The world’s largest stay cable roof 37
Slide 38: Prestressing & Post-tensioning
Prestressing & Post-tensioning Prestressed slab (Ireland) Post- tensioned jack Pluto LNG Tanks Nuclear plant, Tangshan (Australia) (China) 38
Slide 39: Activities: Repair
Activities § Repair Structural repair solutions § Inspection Electrochemical treatment §Repair solution design §Manufacturing of materials Protection systems & §Work implementation Maintenance structures §Durability waranty 39
Slide 40: Structural repair solutions
Structural repair solutions Channel Tunnel (France) Underpinning the Louvre Museum (France) Dam repair (France) 40
Slide 41: Jérôme Stubler
Jérôme STUBLER MARTIN PRATT CEO of Soletanche Freyssinet
Slide 42: Terre Armée 2011 Revenue
Terre Armée 2011 Revenue * = €160 million France: 1% / ROE: 4% / ROW: 95% • Over 700 people • Design and supply of retaining wall systems Retaining walls with GeoStrap reinf. 8% Other mechanically stabilized Retaining earth 13% walls with steel strips Soil and reinf. 67% structure systems 4% Precast
Slide 43: Reinforced Earth: Basic principles
Reinforced Earth®: Basic principles Reinforced earth®: a composite material with artificial cohesion Origin of the logo reinforced earth Composite material based on friction between reinforcement and fill 43
Slide 44: References
References Port Louis (South Africa) Brisbane (Australia) Mbabane Bypass (South Africa) Chessy (France) Badarpur (India) Double Track (Malaysia) 44
Slide 45: Coors Interchange, Albuquerque NM, USA
Coors Interchange, Albuquerque NM, USA 45
Slide 46: TechSpan
TechSpan TechSpan generates a very competitive alternative system for the construction of bridges, culverts, rail/ roadway tunnels, mining/industrial tunnels and pedestrian/animal crossings. Construction of TechSpan is simple, rapid, and predictable with a small crew and conventional equipment. The
Slide 47: Keith Collett, CEO of Nuvia Limited
Keith COLLETT MARTIN PRATT CEO of Nuvia Limited
Slide 48: Nuvia 2011 Revenue
Nuvia 2011 Revenue * = €215 million France: 47% / ROE: 51% / ROW: 2% • Over 2,100 people • A niche player in nuclear construction, maintenance and decommissioning New build 31% Life extension 25% Waste management 5% Radiological protection 12% Decommissioning Decontamination, La Hague, France 27% *
Slide 49: Nuvia, nuclear niche specialist
Nuvia, nuclear niche specialist An unrivalled range of expertise Specialised Seismic Decommissioning civil works protection Security Flood Logistics HVAC protection Fire Radiation Waste mgt and Health physics protection protection Packaging 49
Slide 50: International Development
International Development • Chernobyl (Ukraine) – Safety cases • Ling Ao + Qinshan (China) – Fire protection supply • Ispra (European Joint Research Center) (Italy) – Decommissioning • Koeberg (South Africa) – Decontamination, repair • Andreeva Bay (Russia) – Remediation and refurbishment • Several
Slide 51: Sellafield, United Kingdom
Sellafield, United Kingdom Working within an integrated project team with Nuvia Limited, Sellafield Ltd and Nuvia have successfully designed and manufactured full scale test rigs that are now being used to run the testing programmes for waste handling, tipping, screening and mixing A pluri-annual co
Slide 52: Global Threat Reduction Programme, DECC
Global Threat Reduction Programme, DECC Decommissioning of Russian submarines 52
Slide 53: MS Soletanche Freyssinet
MS SOLETANCHE FREySSINeT
Slide 54: VINCI Investor Day
VINCI INVESTOR DAY London, 2 July 2012
Slide 55: Film
MS SOLETANCHE FREySSINeT
Slide 56: Financials
Financials Yann GROLIMUND CFO of Soletanche Freyssinet
Slide 57: A track record of profitable growth
A track record of profitable growth 2004 to 2011 Revenue: +23% CAGR EBIT: +30% CAGR EBIT margin: 3.5% 4.1% 7.0% 8.3% 6.8% 5.3% 6.1% 5.7% 2,550 2,480 2,403 2,194 2,105 1,419 Revenue: 508 619 460 2004 2005 2006 2007 2008 2009 2010 2011 2012 target Outside France France CAGR: compound annual growth rat
Slide 58: Revenue evolution by geographical area
Soletanche Freyssinet revenue evolution by geographical area ¹ Pro forma including Soletanche Bachy 58
Slide 59: Backlog
Backlog In € billions 2.3 2.1 2.1 2.2 2.0 1.8 1.7 1.6 International France Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 Dec 11 May 12 2.3 billion Euros at 31 May 2012 Growing backlog = improved visibility Of which: ü 8.5 months of average activity in 2008 ü France: 21% ü About 11 months of averag
Slide 60: 2011 consolidated income statement (1/2)
2011 consolidated income statement* (1/2) % of 2010 % of 2011 in € millions 2010 revenue 2011 revenue Revenue 2,021 2,244 Personnel costs (546) 27.0% (615) 27.4% Purchases (648) 32.1% (710) 31.6% Subcontracting and outside personnel (365) 18.1% (385) 17.1% External services and leases (281) 13.9% (3
Slide 61: 2011 consolidated income statement (2/2)
2011 consolidated income statement* (2/2) % of 2010 % of 2011 in € millions 2010 revenue 2011 revenue Operating Profit from Ordinary Activities (EBIT) 76 3.8% 126 5.6% Share-‐based payment expense (IFRS2) (4) (7) Share of profit/loss of associates 2 6 Operating Profit 74 3.6% 125 5.6% Op. profit ex
Slide 62: Strong cash flow generation
Strong cash flow generation* in € millions 2009 2010 2011 EBITDA** 166 181 206 as a % of revenue 8.6% 9.0% 9.2% Change in WCR and current provisions 61 (12) (17) Income tax paid (29) (18) (24) Net interest paid (9) (6) (2) Dividend received 6 6 4 Cash flow from operating activities 194 151 166 Net o
Slide 63: A solid balance sheet
A solid balance sheet* 398 362 Equity Capital employed: 557m Intangible assets € Non-‐current 77 provisions & liabilities Tangible assets 118 Net debt ** 288 Other non-‐ 229 WCR current assets 100 At 31 December 2011 In € millions * IAS format (jointly-controlled entities accounted for under equit
Slide 64: ROCE and key profitability indicators
ROCE and key profitability indicators ROCE € millions 250 15% 18% 12% 11% 18% 234 200 200 194 168 168 150 158 126 100 117 107 99 98 71 76 50 57 36 0 2007 ¹ 2008 2009 (IAS 31) 2010 (IAS 31) 2011 (IAS 31) Net profit EBIT EBITDA X%% ROCE ¹ 2007 data includes 5 months of Soletanche Bachy only 64
Slide 65: M&A history
M&A history € millions 2,500 Soletanche Bachy Nuvia 2,000 Menard Terre Armée 1,500 Freyssinet 1,000 500 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* 2008 2009 2010 2011 Revenue from 1998 to 2011 * 2007 revenue includes 5 months of Soletanche Bachy only 65
Slide 66: SF revenue growth analysis from 1999 to 2011
SF revenue growth analysis from 1999 to 2011 € millions 2,500 544 2,000 247 1,500 590 2,403 1,000 Organic: 837 1,022 500 0 1999 ¹ Organic -‐ Organic -‐ new Acquisitions 2011 existing subsidiaries subsidiaries created ¹ Pro forma as if Freyssinet + Terre Armée + Menard + Soletanche Bachy + Nuvia we
Slide 67: Strategy and outlook
Strategy and outlook Bruno DUPETY Chairman of Soletanche Freyssinet CEO of VINCI Construction - International Operations
Slide 68: Growth drivers
Growth drivers NEEDS AND ISSUES OUR SOLUTIONS Access and exploitation of mining resources Tunnel, retaining walls, foundations Windmills, hydro turbines, construction Development of sustainable alternative energies methods, storage (foundations, underground reservoirs, prestressing) • Longer bridges
Slide 69: Strategy and development model
Strategy and development model • Maintain our market leadership via technological innovation • Accelerate growth through acquisitions and subsidiaries start up in new territories • Develop synergies within Soletanche Freyssinet and VINCI Group EBIT MARGIN TARGET: 6%+… WHILE MAINTAINING > 5% GROWTH R
Slide 70: Innovation
Innovation • Strengthen and expand our capacity for innovation and engineering • Develop high added-value service offerings through integrated or specialised solutions • Improve vertical integration of our techniques and processes by controlling the manufacturing of strategic supplies, materials or
Slide 71: Acquisitions: a long and successful track record
Acquisitions: a long and successful track record From 1998 to 2012, SF has completed more than 30 acquisitions A few big moves to add new specialities • Reinforced Earth in 1998 • Menard in1999 • Nukem (Nuvia UK) in 2007 • Soletanche Bachy in 2007 A string of mid-size acquisitions to Ø get a footho
Slide 72: Acquisition strategy
Acquisition strategy • Targets are companies that fit with our culture and values, usually local partners and/or competitors identified by local business units • Presently reviewing opportunities... Ø in a variety of countries with high infrastructure needs and vast investment plans: • Brazil • Nor
Slide 73: Synergy levers
Synergy levers The Resonance action plan for Soletanche Freyssinet R&D, innovation Engineering, calculations, software Techniques and products è Laboratories, materials Industries Geographical networks è Operations and locations Clients, consultants, engineers Projects, markets Knowledge sharing è
Slide 74: Synergies within Soletanche Freyssinet
Synergies within Soletanche Freyssinet Penn Park, Pennsylvania (USA) 74
Slide 75: Synergies within Soletanche Freyssinet
Synergies within Soletanche Freyssinet Port Botany (Australia) 75
Slide 76: Synergies within Soletanche Freyssinet
Synergies within Soletanche Freyssinet Port Mann Highway (Canada) 76
Slide 77: Synergies with other VINCI Group companies
Synergies with other VINCI Group companies Examples of integrated offers: Port of Cotonou, Benin With Sogea-Satom and EMCC Crossrail, UK El Teniente mine tunnels, Chile With VINCI Construction With VINCI Construction Grands Projets Grands Projets 77
Slide 78: Conclusions
Conclusions The focus is on: • Innovation, R&D, technologies • International development • Our actions plans for margins improvement Our imperatives: • Safety • Increase our management capabilities • Risk management • Customer care • Synergies: Extend to other VINCI companies 78
Slide 79: MS Soletanche Freyssinet
MS SOLETANCHE FREySSINeT
Slide 80: VINCI Investor Day
VINCI INVESTOR DAY London, 2 July 2012