Vinci SA · EURONEXT:DG
Vinci SA — FY2008 Earnings Presentation
72 slides from Vinci SA's earnings presentation, Mar 4, 2009
Slide 1: 2008 annual results
2008 annual results Analysts meeting on 4 March 2009 Yves-Thibault de Silguy, Chairman of the Board of Directors Xavier Huillard, Director and CEO Christian Labeyrie, Executive Vice-President and CFO
Slide 2: Introduction: 2008 VINCI on track, 2009 solid advantages
Introduction 2008: VINCI on track 2009: solid advantages Strong fundamental long-term growth drivers: Urban development Mobility Energy Environment 2
Slide 3: Corporate governance
Corporate governance A present, active and confident Board of Directors In 2008: 8 board meetings 4 Strategy and Investment Committee meetings 5 Audit Committee meetings Strategy approved by the Board of Directors 3
Slide 4: A diversified shareholder base
A diversified shareholder base Shareholder base at 31 December 2008 At 31 Dec. At 31 Dec. 2007 2008 Employees 8.2% 8.2% Treasury shares 3.7% 4.6% Individual shareholders 11.5% 12.5% Artemis 5.0% 4.2% Predica 2.5% 2.4% Carlo Tassara International 2.0% 0.4% French institutionals 29.3% 25.7% UK institut
Slide 5: The VINCI Group in 2008
The VINCI Group in 2008 The VINCI Group in 2008 2008 financial statements and policy Outlook 2009 Appendixes
Slide 6: 2008: excellent performance overall
2008: excellent performance overall 2007 In € millions 2007 PF 2008 ∆ 08/07 PF published Revenue* 30,428 30,338 33,458 +10.3% Operating profit from ordinary 3,113 3,118 3,378 +8.3% activities As a % of revenue* 10.2% 10.3% 10.1% Net profit attributable to equity 1,461 1,455 1,591 +9.4% holders of the
Slide 7: Revenue: up 10.3%
Revenue: up 10.3%* In € millions +10.3% Group growth 33,458 External : +6.6% 30,338 Organic : +4.6% +11.1% 28,520 25,660 VINCI 4,614 Energies 4,301 8,183 Eurovia 7,706 +4.5% VINCI 4,781 15,722 Construction 4,574 13,653 Concessions Contracting VINCI Group PF = pro forma: after application of IFRIC 12
Slide 8: Geographical diversification continues / Growth in all areas
Geographical diversification continues / Growth in all areas 2008 revenue by geographical area In € millions 2008 ∆ 08/07 PF* France 20,936 6.6% Central & Eastern Europe 2,468 1.1% United Kingdom 2,279 30.7% Germany 1,732 6.8% Belgium 998 20.8% Rest of Europe 1,489 19.1% Europe (excl. France) 8,966 1
Slide 9: Operating profit: margins holding up well
Operating profit : margins holding up well Op. profit = Operating profit from ordinary activities (in € millions) +5.6%* +5.4%* 3,378 3,118 +5.7% 1,966 1,751 1,363 1,289 VINCI 229 245 Energies 346 Eurovia 392 VINCI 773 Construction 668 Op. profit/ 38.3% 38.6%* 5.0% 4.8% 10.3% 9.8%* revenue** Concessions
Slide 10: Reduction of net financial debt
Reduction of net financial debt In € billions €0.9 bn Cash flow from operations (16.3) +4.9 Dividends (15.4) -0.8 Financial assets: -0.2 Other -0.1 Operating assets: -0.9 Concession assets: -1.2 WCR +0.7 -1.5 Interest & taxes paid Operation Investment Financial +€4.1 bn -€2.3 bn -€0.9 bn Net debt at N
Slide 11: Targeted external growth
Targeted external growth New areas of expertise: Eurovia Travaux Ferroviaires (formerly Vossloh Infrastructure Services): railway sector works International expansion: Taylor Woodrow Construction in the United Kingdom Car parks in the United States, Canada and Czech Republic VINCI Energies: Central
Slide 12: Concessions: financing still accessible for quality assets
Concessions: financing still accessible for quality assets 2008 €3.8 billion* financing for new concession projects: Athens–Patras–Corinth: €1.6 bn, of which €1.2 bn over 13 years Liefkenshœk Tunnel: €0.7 bn over 35 years (maximum maturity) Arcour (A19): €0.6 bn (€0.2bn over 37 years/€0.4bn over 10 ye
Slide 13: New successes in PPP and concessions
New successes in PPP and concessions Infrastructure: Liefkenshœk Tunnel (Antwerp, Belgium) Prado Sud Tunnel (Marseilles, France) MMArena Stadium (Le Mans, France) Various public infrastructure in France, Germany and the United Kingdom Airport management: 2 new contracts: Clermont-Ferrand (7 years) a
Slide 14: Order book remains at high level
Order book remains at high level No. of months of At 31 December Versus In € billions average business 2008 31 Dec. 2007 activity VINCI Energies 2.4 +11% 6 Eurovia 4.8 -5% 7 VINCI Construction 16.0 +12% 12 Total 23.2 +8% 10 France 11.1 +1% 8 International 12.1 +15% 13 40 projects, each of €50 millio
Slide 15: 2008 financial statements and policy
2008 financial statements and policy The VINCI Group in 2008 2008 financial statements and policy Outlook 2009 Appendixes
Slide 16: Income statement
Income statement 2007 In € millions 2007 PF 2008 ∆ 08/07 PF published Total revenue, of which: 30,428 30,874 33,930 +9.9% Revenue (excl. concession operators' construction revenue) 30,428 30,338 33,458 +10.3% Concession operators' external construction revenue 536 472 Operating profit from ordinary a
Slide 17: Financial income/(expense)
Financial income/(expense) 2007 In € millions 2007 PF 2008 published Net financial expense (811) (811) (863) Concessions (730) (730) (845) Contracting 70 70 67 Holding companies and miscellaneous (150) (150) (85) Other financial income and expenses 132 119 57 Capitalised borrowing costs for investment
Slide 18: Income statement
Income statement 2007 In € millions 2007 PF 2008 ∆ 08/07 PF published Total revenue, of which: 30,428 30,874 33,930 +9.9% Revenue (excl. concession operators' construction revenue) 30,428 30,338 33,458 +10.3% Concession operators' external construction revenue 536 472 Operating profit from ordinary a
Slide 19: Cash flow from operations: up 8%
Cash flow from operations: up 8% Cash flow = cash from operations before tax and financing costs In € millions +7.9% +3.6% 4,872 4,513 2,832 2,936 +9.0% 1,809 1,659 VINCI 249 250 Energies 501 Eurovia 514 VINCI 1,059 Construction 895 Cash flow/ 61.9% 61.4% 6.5% 6.3% 14.9% 14.6% revenue* Concessions Contr
Slide 20: Strong operating cash flow generation
Strong operating cash flow generation 2007 In € millions 2007 PF 2008 ∆ 08/07 PF published Cash flow from operations before tax and 4,515 4,513 4,872 +7.9% financing costs Net financial expenses paid (836) (836) (882) Income tax paid (783) (783) (582) Change in WCR and current provisions 687 687 733 Net
Slide 21: Concessions investments continue / external growth under control
Concessions investments continue / external growth under control In € millions 2007 PF 2008 Operating cash flow 2,899 3,244 Investments in concessions & PPP (1,281) (1,218) of which: ASF / ESCOTA (403) (424) Cofiroute (hors A86) (352) (184) A86 (208) (164) Arcour (A19) (234) (273) VINCI Park (36) (60)
Slide 22: Changes in share capital and net financial debt
Changes in share capital and net financial debt In € millions 2007 2008 Free cash flow before financing operations (105) 1,815 Dividends (713) (829) Capital increases 372 387 Share buy-backs (939) (200) Changes in share capital (1,280) (642) Net cash flow for the period (1,385) 1,173 Other cash flows and
Slide 23: Balance sheet
Balance sheet in € millions 31 Dec. 2007 PF 31 December 2008 Equity 8,114 9,026 Non-current provisions and other LT liabilities 1,242 1,179 Gross financial debt WCR and current 25,723 26,242 provisions Non-current assets 20,363 20,173 (concessions) Other non-current assets (contracting) 4,515 4,806 N
Slide 24: Net financial debt: reduced in spite of increased inflow of new projects
Net financial debt: reduced in spite of increased inflow of new projects Group's debt is held mainly in the concessions division without recourse to VINCI and scaled to the cash flows generated by its entities In € millions Debt/ Cash 31 Dec. 2007 31 Dec. 2008 flow* ASF (10,667) (10,451) 5.5x Cofiroute (
Slide 25: Stable and prudent financial policy
Stable and prudent financial policy Very strong liquidity maintained (> €11 bn at 31 December 2008): €4.8 billion cash managed €7 billion in unused confirmed credit facilities No need for refinancing until 2012 Prudent management of interest rate risk At 31 December 2008, 82% of gross debt is hedged (o
Slide 26: Outlook 2009
Outlook 2009 The VINCI Group in 2008 2008 financial statements and policy Outlook 2009 Appendixes
Slide 27: Concessions: 2009 challenges and outlook
Concessions: 2009 challenges and outlook Start-up of works and operation of recent concessions Finalisation of new contracts Openings: A19 (Sens–Orleans) and A86 tunnel (VL1 section: Rueil– Vaucresson) Contractual discussions with motorways concession grantor Traffic evolution 27
Slide 28: Contracting: 2009 challenges and outlook
Contracting: 2009 challenges and outlook for Selectivity in order intake / Protection of operating margins Vigilance on order book replenishment Just in time adaptation of business units Optimisation of management of working capital requirement and investment policy Strengthening of expertise Respon
Slide 29: VINCI's strengths in a more difficult economic climate
VINCI's strengths in a more difficult economic climate Leadership positions in all its business lines Good diversification geographical locations customers business activities and know-how Healthy, sound financial situation Experienced, proactive management 29
Slide 30: 2008 dividend
2008 dividend Pay-out ratio: 50% of net profit attributable to equity holders of the parent; in line with commitments Dividend proposed to the Shareholders' Meeting on 14 May 2009: €1.62 per share (+6.6%) Dividend balance of €1.10 to be paid on 18 June 2009 (interim dividend of €0.52 paid on 18 Decem
Slide 31: 2008 dividend: payment in shares option
2008 dividend : payment in shares option* Price of new shares: a discount up to 10% could be applied to the average opening price covering the 20 trading days preceding the annual general meeting of 14 May 2009 Ex-date: 22 May 2009 Payment in shares option exercise period: from 22 May up to and incl
Slide 32: Appendixes
VINEI “_? Appendixes
Slide 33: VINCI: revenue and operating margins since 1995
VINCI : revenue and operating margins since 1995 In € billions Change in operating margins Revenue in % revenue 33.5 30.4 10.1% 21.5 7.3% 14.0 5.1% 4.8% 4.5% 6.9 3.1% Concessions Contracting VINCI Group Contracting 33
Slide 34: Appendixes: VINCI's business lines
Appendixes: VINCI's business lines
Slide 35: VINCI Concessions: 2008 highlights
VINCI Concessions: 2008 highlights Good performance despite decline in motorway traffic during the second half of the year Investments maintained at a high level: €1.2 billion €3.8 billion in new financing secured for new projects plus €0.5 billion in long-term financing for ASF and Cofiroute New PPP and
Slide 36: Concessions / PPP: a well diversified portfolio of assets
Concessions / PPP: a well diversified portfolio of assets 36
Slide 37: VINCI Motorways France
VINCI Motorways France Europe's biggest motorway network ASF Escota Cofiroute Network under 2,714 459 1,100 concession (km) No. of km in service 2,633 459 1,100 End of concession 2032 2026 2030 No. of km travelled in 27,644 6,513 10,576 2008 (in millions) Excellent location at the crossroads of natio
Slide 38: VINCI Motorways France: a clearly defined contractual framework for toll prices
VINCI Motorways France: a clearly defined contractual framework for toll prices ASF Escota Cofiroute End of concession 2032 2026 2030 Minimum tariff increase guaranteed: 70% x CPI (up to the end of the concession) Contract under way 2007–2011 2007–2011 Under discussion Approved price formulas - Current
Slide 39: VINCI Motorways France: 2008 highlights
VINCI Motorways France: 2008 highlights Good performance despite the decline in traffic during the second half of the year Change in toll revenue in 2008 ASF ESCOTA Cofiroute Total Traffic on a stable network -1.4% -1.3% -1.4% -1.4% New sections +0.3% - +3.3% +1.0% Price increases and other impacts +3.7%
Slide 40: VINCI Park: key indicators
VINCI Park: key indicators In € millions 2007 2008 ∆ 08/07 1.2 million parking spaces managed PF (1,700 car parks and 1,800 km of on-street Revenue 559 619 +10.7% parking) of which international 166 213 +28.8% Operations in 12 countries, 170 towns in Operating profit from ordinary 130 126 -2.8% activ
Slide 41: VINCI Park: 2008 highlights
VINCI Park: 2008 highlights Good resilience in a more difficult economic climate Steady external growth, particularly in North America (LAZ Parking, Ideal Parking) and Central Europe Focus on developing low capital intensive service activities No. of spaces managed Revenue: +10.7% Operating profit from
Slide 42: PPP and concession projects under study (1/3): VINCI preferred bidder
PPP and concession projects under study (1/3): VINCI preferred bidder Estimated VINCI total project Project Country value share planned* (in € bn) GSM Rail: 14,000 km mobile telecommunications network France 0.95 30% CDG Express: Paris–Charles de Gaulle airport rail link France 1.2 38.5% (32 km) A5
Slide 43: PPP and concession projects under study (2/3): bids submitted or to be submitted in 2009
PPP and concession projects under study (2/3): bids submitted or to be submitted in 2009 Estimated total Project Country project value (in € bn) D1–3 motorway: 28 km (PPP) Slovakia 2.5 Comarnic Brasov motorway: 58 km (PPP) Romania 1.7 RDIP: French air force telecom networks France 0.3 Caia Porceira
Slide 44: Other PPP and concession projects under study (3/3)
Other PPP and concession projects under study (3/3): awaiting tender issue or in prequalification phase Estimated total Project Country project value (in € bn) Notre Dame des Landes Airport, Nantes France 0.5 Nimes–Montpellier railway bypass France 1.4 Brittany–Pays de Loire high speed line (PPP) Fra
Slide 45: VINCI Energies: 2008 highlights
VINCI Energies: 2008 highlights Good level of business in France: 2.6% organic growth Continuation of expansion by acquisition in rest of Europe: About 10 companies acquired in 2008 (in the Czech Republic, Netherlands and Romania in particular), generating full-year revenue in the order of €85 milli
Slide 46: VINCI Energies: trends and characteristics
VINCI Energies: trends and characteristics Characteristics Revenue by business line Design, engineering, implementation, operation and maintenance of equipment in: Infrastructure: electrical energy and transports Infrastructure Industry: multi-technical maintenance Telecommunications Service sector:
Slide 47: Eurovia: 2008 highlights
Eurovia: 2008 highlights Slowdown in business activity and orders in France during 2nd half of the year (municipal elections, credit crisis and asphalt prices) Good development of international business (Germany, Central Europe, North America) Move into railway sector in France (ETF) and road equipm
Slide 48: Eurovia: trends and characteristics
Eurovia: trends and characteristics Characteristics Revenue by business line Recurring contracts: 35,000 projects a year (~70% of revenue) Road and railway works Vertical integration and strong positions in Materials production materials production and recycling: Services and Aggregates : controlled
Slide 49: VINCI Construction: 2008 highlights
VINCI Construction: 2008 highlights 6% organic growth Operating margins maintained at a good level Replenishment of order book: 12 months of average business activity Integration of recent acquisitions completed Acquisition of Taylor Woodrow Construction (United Kingdom) Order book: +12% Revenue: +1
Slide 50: VINCI Construction: trends and characteristics
VINCI Construction: trends and characteristics Characteristics Revenue by business line Profit centres firmly rooted in their local markets in France and the rest of Europe, and long-established operations in Africa Leadership in specialist activities in France and Building the rest of the world: Frey
Slide 51: Appendixes: Detailed financial statements
Appendixes: Detailed financial statements
Slide 52: Consolidated revenue
Consolidated revenue 2007 ∆08/07 ∆08/07 In € millions 2007 PF 2008 actual comparable published Concessions 4,580 4,574 4,781 +4.5% +3.8% ASF/Escota 2,811 2,811 2,895 +3.0% +2.6% Cofiroute 1,039 1,039 1,077 +3.7% +3.8% VINCI Park 562 559 619 +10.7% +6,0% Other infrastructure 168 165 190 +15.6% +17.7%
Slide 53: Concession operators' construction revenue (application of IFRIC 12)
Concession operators' construction revenue (application of IFRIC 12) In € millions 2007 PF 2008 ∆08/07 ASF/Escota 337 345 +2.2% Cofiroute 431 272 -36.8% VINCI Park 23 33 +44% Other infrastructure 328 362 +10.4% of which Arcour – A19 285 281 -1.3% Concession operators' total construction revenue 1,119
Slide 54: Consolidated revenue – France
Consolidated revenue – France 2007 ∆08/07 ∆08/07 In € millions 2007 PF 2008 actual comparable published Concessions 4,321 4,318 4,467 +3.4% +3.3% ASF/Escota 2,811 2,811 2,890 +2.8% +2.6% Cofiroute 1,032 1,032 1,072 +3.8% +3.8% VINCI Park 396 394 406 +3.1% +3.1% Other infrastructure 81 81 100 +23.1% +
Slide 55: Consolidated revenue – International
Consolidated revenue – International 2007 ∆08/07 ∆08/07 In € millions 2007 PF 2008 actual comparable published Concessions 259 256 315 +23.1% +12.4% ASF/Escota - - 5 - - Cofiroute 6 6 6 -5.0% +3.8% VINCI Park 166 166 213 +28.8% +12.6% Other infrastructure 87 84 91 +8.4% +12.4% Contracting 10,483 10,4
Slide 56: Operating profit from ordinary activities by business line
Operating profit from ordinary activities by business line In € millions 2007 % of 2007 % of % of 2008 revenue* ∆ 08/07 PF published revenue PF revenue* Concessions 1,747 38.1% 1,751 38.3% 1,966 41.1% +12.3% ASF/Escota*** 1,002 35.6% 994 35.3% 1,223** 42.2%** +23% Cofiroute 563 54.2% 576 55.5% 584 54.
Slide 57: Net profit by business line
Net profit by business line In € millions 2007 % of 2007 % of % of 2008 revenue ∆ 08/07 published revenue PF revenue PF Concessions 680 14.8% 674 14.7% 756 15.8% +12.2% ASF / Escota 353 12.5% 342 12.2% 478* 16.5%* +39.7% Cofiroute 280 27.0% 285 27.4% 269 25.0% -5.6% VINCI Park 64 11.3% 63 11.2% 68 11.
Slide 58: Cash flow from operations by business line
Cash flow from operations by business line In € millions 2007 % of 2007 % of % of 2008 revenue* ∆ 08/07 PF published revenue PF revenue* Concessions 2,834 61.9% 2,832 61.9% 2,936 61.4% +3.6% ASF / Escota 1,842 65.5% 1,840 65.4% 1,902 65.7% +3.4% Cofiroute 733 70.6% 736 70.8% 772 71.6% +4.9% VINCI Park
Slide 59: Cash flow statement (1/2)
Cash flow statement (1/2) 2007 In € millions 2007 PF 2008 published Cash flow from operations 4,515 4,514 4,872 Change in WCR and current provisions 687 687 733 Income taxes paid (783) (783) (582) Net interest paid (836) (836) (881) Net cash flows (used in)/from operating 3,583 3,582 4,141 activities N
Slide 60: Investments in operating assets and growth investments
Investments in operating assets and growth investments In € millions 2007 PF 2008 Investments in operating assets 816 993 VINCI Construction 449 540 Eurovia 258 330 VINCI Energies 65 75 VINCI Concessions 38 45 Holding companies and miscellaneous 6 3 Sales of property, plant and equipment, and intang
Slide 61: Cash flow statement (2/2)
Cash flow statement (2/2) In € millions 2007 2008 Free cash flow before financing (105) 1,815 Dividends (713) (829) Capital increases 372 387 Share buy-backs (939) (200) Changes in share capital (1,280) (642) Net cash flow for the period (1,385) 1,173 Other cash flows and impact of changes in (122) (241)
Slide 62: Simplified balance sheet
Simplified balance sheet 31 Dec. In € millions 2007 31 Dec. 2007 PF 31 Dec. 2008 published ASSETS Non-current assets – Concessions 25,494 25,723 26,242 Other non-current assets 4,450 4,450 4,765 Current financial assets 63 65 41 Net cash managed 4,060 4,060 4,802 Total assets 34,067 34,298 35,850 SHAR
Slide 63: Net financial debt
Net financial debt In € millions 31 Dec. Debt/ cash Debt/cash 31 Dec. 2008 ∆ 08/07 2007 flow* flow* Concessions (15,368) 5.4x (15,523) 5.3x (155) ASF/Escota (10,667) 5.8x (10,451) 5.5x 216 Cofiroute (3,264) 4.5x (3,259) 4.2x 5 VINCI Park (857) 4.4x (853) 4.3x 4 Other infrastructure (project (580) 7.2x (
Slide 64: Prudent management of interest rate risk
Prudent management of interest rate risk 100% of net financial debt at fixed or capped rates In € millions 31 Dec.2007 % of LT % of 31 Dec. % of LT % of debt net 2008 debt net debt debt Fixed rates (12,369) 62% 76% (12,987) 67% 84% Capped + inflation indexed (4,134) 21% 25% (2,886) 15% 19% rates Protec
Slide 65: Maturity of medium- and long-term gross debt
Maturity of medium- and long-term gross debt Average maturity of long-term debt (€19.9 billion): 7 years Concessions: 7.9 years Holding companies and other business lines: 2.8 years ASF ASF Holding Cofiroute Other concessions Holding companies and other business lines 65
Slide 66: Application of Interpretation IFRIC 12, Service Concession Arrangements
Appendice: Application of Interpretation IFRIC 12, Service Concession Arrangements
Slide 67: Application of IFRIC 12: the concession operator's two activities
Application of Interpretation IFRIC 12, Service Concession Arrangements The concession operator conducts two activities: Construction on behalf of the concession grantor Infrastructure operation and maintenance Construction revenue is recognised using the stage of completion method and includes work
Slide 68: IFRIC 12: intangible asset and financial asset methods
Application of Interpretation IFRIC 12, Service Concession Arrangements Two different accounting methods are used to value the conceded infrastructure asset. The method used depends upon whether or not the concession operator's remuneration is dependent on the asset’s usage. Intangible asset method F
Slide 69: IFRIC 12: impact on consolidated financial statements (balance sheet)
Application of Interpretation IFRIC 12, Service Concession Arrangements Impact on consolidated financial statements BALANCE SHEET PRO FORMA at 1 January 2007 Assets previously recorded as concession intangible assets reclassified as tangible assets: €1,14 billion If ‘financial asset method’, assets pre
Slide 70: IFRIC 12: impact on consolidated financial statements (P&L)
Application of Interpretation IFRIC 12, Service Concession Arrangements Impact on consolidated financial statements P&L PRO FORMA 2007 In € million 2007 Revenue: 446 - Concessions construction revenue performed by third 536 parties - Eliminations and other reclassifications (90) Operating profit from a
Slide 71: IFRIC 12: classification of VINCI's assets
Application of Interpretation IFRIC 12, Service Concession Arrangements Classification of VINCI's assets Intangible asset method: ASF, Escota, Cofiroute, A19, "A-Modell’ Car parks managed by VINCI Park under concession contracts* Cambodian airports, Rion–Antirion bridge, Stade de France, Le Mans stadi
Slide 72: 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 72