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Vinci SA — Société Générale Infrastructure, Construction & Building Materials Conference 2010
68 slides from Vinci SA's conference presentation, May 19, 2010
Slide 1: Société Générale Infrastructure, Construction & Building Materials Conference
Société Générale Infrastructure, Construction & Building Materials Conference Paris, 19 May 2010
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 in 2009
VINCI in 2009 VINCI in 2009 2010 Outlook
Slide 4: 2009: sound performance illustrating the Group's robustness
2009: sound performance illustrating the Group's robustness Net profit maintained despite revenue decline Concessions French motorways: - Revenue growth - 2009 EBITDA/revenue targets exceeded Other concessions: new commercial successes Contracting Revenue and operating margins held up well Good repl
Slide 5: 2009: key figures
2009: key figures (in € millions) 2008 2009 Δ 09/08 Revenue* 33,458 31,928 -4.6% Cash flow from operations (EBITDA)** 4,872 4,964 +1.9% As % of revenue* 14.6% 15.5% Operating profit from ordinary activities 3,378 3,192 -5.5% As % of revenue* 10.1% 10.0% Net profit attributable to 1,591 1,596 +0.3% e
Slide 6: Revenue: growth in concessions, limited decline in contracting
Revenue: - growth in concessions - limited decline in contracting In € millions 09/08 change: (4.6%) (4.6%) - Organic (5.5%) - Consolidation scope +2.5% (5.7%) 33,458 - FX impact (1.6%) 31,928 28,520 26,891 4,614 4,339 VINCI Energies 8,183 8,003 Eurovia +2.4% 15,722 14,549 VINCI 4,781 4,899 Construc
Slide 7: Growth of international business: over 38% of revenue
Growth of international business: over 38% of revenue generated outside France (44.5% in contracting) 2009 revenue by geographical area Δ at constant Δ 09/08 (in € millions) 2009 actual exchange rates France 19,621 -6.3% -6.3% Central & Eastern Europe 2,160 -12.5% -2.8% 6,8% 6,7% United Kingdom 2,14
Slide 8: Resilience of operating margins
Resilience of operating margins Operating profit from ordinary activities (in € millions and as % of revenue*) Concessions + Contracting = VINCI Group Op. profit/ 38.6%** 39.1% 4.8% 4.5% 9.8%** 10.0% revenue* 3,378 3,192 1,966 1,917 Other concessions 159 124 1,363 1,220 245 230 VINCI Energies VINCI
Slide 9: Improvement in cash flow from operations
Improvement in cash flow from operations Cash flow from operations before cost of financing and tax (similar to EBITDA) (in € millions and as % of revenue*) Concessions + Contracting = VINCI Group Cash flow/ 61.4% 63.0% 6.3% 6.5% 14.6% 15.5% revenue* 4,872 4,964 3,086 2,936 Other concessions 262 279
Slide 10: Change in net financial debt in 2009
Change in net financial debt in 2009 (in € billions) Cash flow* +€1.7 bn (15.4) +5.0 Dividends -0.9 (13.7) Capital Interest and increase and misc. taxes paid Investments +0.6 Δ WCR -1.5 +0.6 Operating Concessions: -1.2 investments Financial: -0.1 -0.8 Operational Development Financial +€3.3 bn -€1.3
Slide 11: Financial management
Financial management Good access to financing despite the financial crisis ASF refinancing: almost €1.9 billion in 10 or 15 year financing raised on the bond markets New concessions: €1.9 billion in non-recourse project financing (A5 motorway in Germany, R1 expressway in Slovakia, GSM-R) Optimisatio
Slide 12: 2010 Outlook
2010 Outlook VINCI in 2009 2010 Outlook
Slide 13: 2010 outlook: French motorways: stronger visibility
2010 outlook French motorways : stronger visibility Relations with concession grantor: good momentum "Green package": sustainable development investment of about €750 million to be made over the period 2010-2012 in exchange for a one-year extension to the concession contracts A86 Duplex: compensatio
Slide 14: 2010 outlook: Other Concessions
2010 outlook Other Concessions Negotiations under way: SEA (South Europe Atlantic) high-speed train line CDG Express Moscow–St Petersburg motorway Responses expected to proposals submitted: France: BPL high-speed line, Notre Dame des Landes airport Other Europe: high-speed train line in Portugal Som
Slide 15: 2010 outlook: Contracting revenue and order book
2010 outlook Contracting : revenue and order book at 31 March 2010 (in € billions) Q1 Revenue: -10.5% Order book: +7,7% 5,9 5,3 25.9 24.0 1.1 2.6 2.3 1.0 1.3 5.9 6.3 1.2 3.6 3.1 15.8 16.9 Q1 2009 Q1 2010 31-12-2009 31-3-2010 VINCI Energies Eurovia VINCI Construction Q1 2010 revenue impacted by sever
Slide 16: 2010 outlook: Contracting
2010 outlook: Contracting Careful selection of new business and protection of margins Responsiveness of operating units in the face of declining business activity Strict management of WCR and investments Further strengthening of international business Development of growth market segments and areas
Slide 17: VINCI–Cegelec tie-up
VINCI–Cegelec tie-up VINCI becomes 100% shareholder of Cegelec on 14 April 2010 Qatari Diar becomes VINCI shareholder (5.8% stake) Creation of a European market leader in the energy services sector Skills in the management of major projects in promising sectors: transport systems, defence, nuclear,
Slide 18: 2010 outlook: summary
2010 outlook: summary Revenue: Growth of motorway concessions Limited decline in contracting on a comparable structure basis Positive impact of integration of Cegelec and Tarmac Æ Slight increase in total revenue Profit: French motorways: 2009 EBITDA margin maintained Contracting: targeting stabilis
Slide 19: Appendixes
Appendixes 2010: 10-year overview of VINCI Shareholder base at 30 April 2010 (pro forma) VINCI's business lines Detail of 2009 consolidated financial statements
Slide 20: 2010: 10-year overview of VINCI
2010: 10-year overview of VINCI Revenue (€ billions) Operating profit (€ millions) 3,192 31.9 10.0% of rev. x 2.3 x 4.4 Contracting 14.1 722 5.1% of rev. Concessions 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net profit (€ millions) 1,596 Share price 70 60 VINCI: +246% x 5.3 50 CAC 40: -34% 4
Slide 21: Shareholder base at 30 April 2010 (pro forma)
Shareholder base at 30 April 2010 (pro forma) 31 Dec. 30 April 2009 2010* Employees 9,2% 8,8 % 3,3% 8,8% 11,6% 1,6% Treasury shares 4,0% 1,6 % Individual shareholders 12,3 % 12,5 % 12,5% Qatari Diar - 5,8% 16,9% Artemis 4,0 % 3,9 % 5,8% French institutionals 29,0% 27,8 % 3,9% UK institutionals 8,2%
Slide 22: VINCI business lines
VINCI business lines VINCI in 2009 2009 consolidated financial statements Outlook Conclusion
Slide 23: Concessions
Concessions French motorways VINCI Park Other concessions
Slide 24: A diversified and unrivalled portfolio
A diversified and unrivalled portfolio 24
Slide 25: VINCI Autoroutes
VINCI Autoroutes
Slide 26: French motorways: resilience and visibility
French motorways: resilience and visibility Europe's biggest motorway network Cofi- A86 ASF Escota Arcour route* Duplex Network under 2,714 459 1,100 101 10 concession (km) % held by VINCI 100 100 83 100 83 No. of km in service 2,633 459 1,100 101 4.5 75 End of concession 2033 2027 2031 2070 yrs** N
Slide 27: French motorways: contractual framework of toll increases
French motorways: 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% * CPI Current master plan 2007-2011 2007-2011 Under discussion N/A - 2010 85% x CPI + 0.825% 85% x CPI + 0.9% 70% x C
Slide 28: French motorways: key figures
French motorways: key figures ASF/ Total (in € millions) Total 2008 Escota Cofiroute Arcour 2009 Δ 09/08 Revenue 3,972 2,967 1,111 18 4,095 +3.1% Op. profit from ordinary activities 1,807 1,189 597 7 1,793 40.1% 53.7% 39.6% 6.2%* as % of revenue 42.5%* 43.8% Net profit 746 480 260 (7) 733 -1.8% Cash
Slide 29: French motorways: return of traffic growth
French motorways: return of traffic growth +1.2% on a stable network in 2009 Traffic growth on a stable network 8% (trailing 12 months) 6% 4% 2% 0% -2% Δ 2008/2007 Δ 2009/2008 -4% -6% -1.4% +1.2% -8% - 10 % - 12 % 1-08 3-08 5-08 7-08 9-08 1-09 3-09 5-09 7-09 9-09 1-10 3-10 11-08 11-09 Light vehicles
Slide 30: French motorways: 2009 margin targets exceeded
French motorways: 2009 margin targets exceeded Cash flow from operations before cost of financing and tax (similar to EBITDA) (in € millions and as % of revenue*) ASF/Escota Cofiroute 2009 target: 67% 2009 target: 69% 67.3% 65.4% 65.7% 65.1% 63.5% 72.0% 1,997 68.6% 70.8% 71.6% 1,840 1,902 67.2% 1,57
Slide 31: French motorways: new sections opened in 2009
French motorways: new sections opened in 2009 Arcour (A19) between Artenay and Courtenay (101 km) opened on 16 June 2009 Total value of project: €847 million End of concession: 2070 First section of A86 between Rueil-Malmaison and Vaucresson opened on 1 July 2009 Concession period > 75 years Arcour
Slide 32: VINCI Concessions
VINCI Concessions
Slide 33: Other concessions: growth and new projects
Other concessions: growth and new projects VINCI Park France: revenue resilient (growth in monthly space rentals) Acceleration of international growth Increased proportion of lower capital intensity service contracts New projects won A5 motorway in Germany: total value €600 million (VINCI: 50%) R1 e
Slide 34: VINCI Park: key figures
VINCI Park: key figures (in € millions) 2008 2009 Δ 09/08 2009 revenue by geographical area Revenue 619 623 +0.5% - France 406 413 +1.7% 5% - International 213 210 -1.6%* 7% France Op. profit from ordinary activities 126 101 -19.6% 5% as % of revenue 20.4% 16.3% Germany 5% United Kingdom Net profit
Slide 35: Other concessions and PPP (1/2)
Other concessions and PPP (1/2) End of VINCI Consolid- County Type Name Description concession share ation1 Other PPP & concessions in France France Tunnel Prado Carénage Tunnel in Marseilles 2025 33% EM Tunnel Prado Sud Tunnel in Marseilles 2054 58.5% PC Light rail RhônExpress 15km light rail syste
Slide 36: Other concessions and PPP (2/2)
Other concessions and PPP (2/2) End of VINCI Consolid- Country Type Name Description concession share ation1 Concessions Greece Greece Bridge Rion–Antirion 2.9 km between Peloponnese and 2039 57.4% FC mainland Motorway Maliakos–Kleidi 230 km 2038 14% EM Motorway Athens–Patras–Corinth 365 km 2038 36%
Slide 37: Concessions & PPP: projects under study (1/2)
Concessions & PPP: projects under study (1/2) Country Project VINCI preferred bidder/final negotiations under way France SEA LGV: high-speed rail line (Tours–Bordeaux) France CDG Express: rail link between Charles de Gaulle airport and Paris Russia 1st section of Moscow–St Petersburg motorway: 43 km
Slide 38: Concessions & PPP: projects under study (2/2)
Concessions & PPP: projects under study (2/2) Country Project VINCI prequalified/bids in preparation France LGV Nîmes–Montpellier: railway bypass A63: Bordeaux–Bayonne motorway (102 km) Vélodrome stadium in Marseilles Germany A9 motorway (A-Modell) Greece Kastelli airport (Crete) Prequalification un
Slide 39: Contracting
Contracting VINCI Energies Eurovia VINCI Construction
Slide 40: Contracting: key figures
Contracting: key figures 2009 revenue by geographical area (in € millions) 2008 2009 Δ 09/08 Revenue 28,520 26,891 -5.7% - France 16,288 14,927 -8.4% 7,9% France 7,9% 6,5% - International 12,232 11,964 -2.2% Central Europe Operating profit 1 363 1 220 -10.5% 8,9% United Kingdom as % of revenue 4,8%
Slide 41: VINCI Energies
VINCI Energies
Slide 42: VINCI Energies: key figures
VINCI Energies: key figures (in € millions) 2008 2009 Δ 09/08 2009 revenue by geographical area Revenue 4,614 4,339 -6.0% - France 3,161 3,004 -5.0% - International 1,453 1,335 -8.1% France Germany Operating profit 245 230 -6.2% as % of revenue 5.3% 5.3% Switzerland Benelux Net profit 148 161 +8.9%
Slide 43: VINCI Energies: profile
VINCI Energies: profile Description Market leader in France and a major player in Europe in energy and information technology services Design and engineering, implementation, operation and maintenance in four business lines: Electrical power supply infrastructure (production and distribution), publi
Slide 44: VINCI Energies: 5.3% operating margin maintained
VINCI Energies: 5.3% operating margin maintained Revenue: €4.3 billion Operating profit: €230 million Net profit: €161 million Δ09-08: -6.0% 5.3% of revenue (stable) Δ09-08: +8.9% 4,614 4,339 1,453 1,335 245 230 3,161 3,004 5.3% 5.3% 161 148 3.7% 3.2% 2008 2009 2008 2009 2008 2009 France Internation
Slide 45: Eurovia
Eurovia
Slide 46: Eurovia: key figures
Eurovia: key figures (in € millions) 2008 2009 Δ 09/08 2009 revenue by geographical area Revenue 8,183 8,003 -2.2% - France 4,905 4,639 -5.4% - International 3,278 3,364 +2.6% Operating profit 346 319 -7.8% France as % of revenue 4.2% 4.0% Central Europe Net profit 209 206 -1.5% Germany United Kingd
Slide 47: Eurovia: profile
Eurovia: profile Description 300 works divisions and subsidiaries: Construction and maintenance of transport infrastructure (roads, railways, …) Urban development, dedicated transport systems (light trains, tramways), traffic signs and road marking. Vertical integration strategy in materials product
Slide 48: Eurovia: resilience of revenue and margin
Eurovia: resilience of revenue and margin (4.0% of revenue in 2009) Revenue: €8.0 billion Operating profit: €319 million Net profit: €206 million Δ09-08: -2.2% 4.0% of revenue (-20bp) Δ09-08: -1.5% 8,183 8,003 3,278 3,364 346 319 4.2% 4.0% 4,905 4,639 209 206 2.6% 2.6% 2008 2009 2008 2009 2008 2009
Slide 49: VINCI Construction
VINCI Construction
Slide 50: VINCI Construction: key figures
VINCI Construction: key figures (in € millions) 2008 2009 Δ 09/08 2009 revenue by geographical area Revenue 15,722 14,549 -7.5% - France 8,221 7,284 -11.4% - International 7,501 7,265 -3.1% France Operating profit 773 671 -13.2% United Kingdom as % of revenue 4.9% 4.6% Central Europe Net profit 527
Slide 51: VINCI Construction: profile
VINCI Construction: profile Description Large array of expertise in building, civil engineering and hydraulic engineering: Strong roots in mainland and overseas France (network of 500 profit centres), Europe (United Kingdom, Germany, Belgium and Central Europe) and longstanding operations in Africa
Slide 52: VINCI Construction: slight decrease in margin to 4.6% in 2009
VINCI Construction: slight decrease in margin to 4.6% in 2009 Revenue: €14.5 billion Operating profit: €671 million Net profit: €434 million Δ09-08: -7.5% 4.6% of revenue (-30bp) Δ09-08: -17.6% 15,722 14,549 7,501 7,265 773 671 4.9% 4.6% 527 434 8,221 7,284 3.4% 3.0% 2008 2009 2008 2009 2008 2009 Fr
Slide 53: Detailed 2009 financial consolidated statements
Detailed 2009 financial consolidated statements
Slide 54: Consolidated income statement
Consolidated income statement (in € millions) 2008 2009 Δ 09/08 Revenue* 33,458 31,928 -4.6% Operating profit from ordinary activities 3,378 3,192 -5.5% As % of revenue* 10.1% 10.0% Operating profit 3,276 3,145 -4.0% Net financial income/(expense) (806) (702) Income tax expense (771) (745) Non-contr
Slide 55: Revenue by business line
Revenue by business line (in € millions) 2008 2009 Δ 09/08 Δ 09/08 actual comparable French motorways 3,972 4,095 +3.1% +3.1% VINCI Park 619 623 +0.5% +3.3% Other concessions 190 181 -4.9% -5.7% CONCESSIONS 4,781 4,899 +2.4% +2.8% VINCI Energies 4,614 4,339 -6.0% -6.6% Eurovia 8,183 8,003 -2.2% -3.7
Slide 56: Operating profit by business line
Operating profit by business line (in € millions) 2008 as % of 2009 as % of Δ 09/08 revenue* revenue* French motorways 1,807 42.5%** 1,793 43.8% +6.2%** VINCI Park 126 20.4% 101 16.3% -19.6% Other concessions 33 23 CONCESSIONS 1,966 38.6%** 1,917 39.1% +3.8%** VINCI Energies 245 5.3% 230 5.3% -6.2%
Slide 57: Net financial income/(expense)
Net financial income/(expense) (in € millions) 2008 2009 Cost of net financial debt (863) (743) Concessions (845) (742) of which French motorways (769) (681) Contracting 67 7 Holding companies and misc. (85) (9) Other financial income/(expenses) 57 41 Capitalised borrowing costs on concessions inves
Slide 58: Net profit attributable to equity holders by business line
Net profit attributable to equity holders of the parent by business line as % of as % of (in € millions) 2008 2009 Δ 09/08 revenue* revenue* French motorways 746 18,8% 733 17.9% (1,8%) VINCI Park 68 10.9% 41 6.6% -39.2% Other concessions 23 12.0% 18 9.8% -22.0% Holdings cos. concessions (81) (47) CO
Slide 59: Cash flow from operations by business line
Cash flow from operations* by business line (in € millions) 2008 as % of 2009 as % of Δ 09/08 revenue** revenue** French motorways 2,674 67.3% 2,807 68.5% +5.0% VINCI Park 200 32.2% 203 32.6% +1.6% Other concessions 63 76 CONCESSIONS 2,936 61.4% 3,086 63.0% +5.1% VINCI Energies 249 5.4% 256 5.9% +3.
Slide 60: Cash flow statement (1/3): Operating cash flow
Cash flow statement (1/3) : Operating cash flow (in € millions) 2008 2009 Δ 09/08 Cash flow from operations* 4,872 4,964 +1.9% Interest paid (882) (784) Income taxes paid (582) (690) Change in WCR and current provisions 733 609 Cash flows from operating activities 4,141 4,100 -1.0% Gross investments
Slide 61: Cash flow statement (2/3): Investments in concessions
Cash flow statement (2/3): Investments in concessions growth and financial investments (in € millions) 2008 2009 Δ 09/08 Operating cash flow 3,244 3,302 +1.8% Investments in concession assets and PPP contracts (1,218) (1,227) Gross financial investments (480) (186) Sale of shares in subsidiaries and
Slide 62: Investments in concessions & PPP growth
Investments in concessions & PPP growth (in € millions) 2008 2009 ASF/Escota (424) (524) Cofiroute (excl. A86) (183) (144) A86 Duplex (165) (171) Arcour (A19) (273) (106) VINCI Park (60) (36) Other (113) (246) of which A-Modell A4 and A5 (Germany) (35) (57) Locorail (Belgium) (9) (77) R1 expressway
Slide 63: Cash flow statement (3/3)
Cash flow statement (3/3) (in € millions) 2008 2009 Δ 09/08 Free cash flow after investments 1,819 1,958 139 Dividends (829) (873) (44) Capital increases 387 654 267 Share buy-backs (200) (2) 198 Movements in share capital (642) (221) 421 Net cash flow for the period 1,177 1,737 560 Other and impact
Slide 64: Consolidated balance sheet: financial structure strengthened
Consolidated balance sheet: financial structure strengthened (in € millions) 31 Dec. 2008 31 Dec. 2009 EQUITY & LIABILITIES 9,026 10,440 Equity 1,305 1,401 Non-current provisions and other long-term liabilities 20,173 19,706 Borrowings WCR and current provisions 5,409 6,248 ASSETS 26,242 26,681 Non-
Slide 65: Net financial debt by business line
Net financial debt by business line Debt/ Debt/ (in € millions) 2008 cash flow* 2009 cash flow* Δ 09/08 French motorways (14,217) x 5.3 (14,029) x 5.0 188 VINCI Park (853) x 4.3 (830) x 4.1 23 Other concessions (453) x 5.8 (611) x 7,9 (158) Holding concessions companies (1 931) (2,447) (516) CONCESS
Slide 66: Maturity of long-term gross debt
Maturity of long-term gross debt Average maturity of long term debt (€18.9 billion): 7.1 years Concessions: 8 years Holding companies and other business lines: > 3 years 3 000 2 500 2 000 1 500 1 000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 > 20
Slide 67: Breakdown of long-term debt
Breakdown of long-term debt Breakdown by nature of debt Breakdown fixed/floating rate after hedging Good diversification of sources of medium- and long-term financing 11% 2009 % of total cf. 2008 28% Fixed rate 12,419 66% 67% Capped/inflation- 2,798 15% 15% linked floating rate 30% Total "protected"
Slide 68: VINCI IR Contact
VINCI IR Contact Christopher WELTON christopher.welton@vinci.com Tel: +33 1 47 16 45 07 Marie-Amélia FOLCH marie-amelia.folch@vinci.com Tel: +33 1 47 16 45 39 68
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