Vinci SA · EURONEXT:DG
Vinci SA — Cheuvreux Autumn Conference 2012
68 slides from Vinci SA's conference presentation, Sep 20, 2012
Slide 1: Cheuvreux Autumn Conference
Cheuvreux Autumn Conference Paris, 20 September 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 th
Slide 3: Current environment
VINCI “ Current environment
Slide 4: Current environment
Current environment Business holding up despite negative newsflow on economic climate, particularly in France Commercial momentum still intact Order book remains at all-time high level Selective international development continues Financial debt optimisation: Good access to credit markets Ear
Slide 5: 1st half 2012 key figures
1st half 2012 key figures st st 1 half 2012 1 half 2011 Δ∆ 12/11 (in € millions) Revenue 17,942 17,323 +3.6 % EBITDA 2,347 2,333 +0.6 % % of revenue 13.1 % 13.5 % Operating income from ordinary activities 1,542 1,569 -1.7 % % of revenue 8.6 % 9.1 % Adjusted op. income from ordinary activities* 1,577
Slide 6: Operating margins
Operating margins* (as % of revenue and in € millions) VINCI Autoroutes Contracting EBITDA/revenue: Op. income/revenue: 69.0% versus 68.3% in H1 2011 3.5% versus 3.7% in H1 2011 1,403 1,427 283 292 244 223 68.3% 69.0% 4.1% 4.0% 5.4% 5.8% 36 (7) 0.9% -0.2% H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2
Slide 7: All-time high order book
Contracting All-time high order book €33.2 bn at end June 2012 +9 % vs. 31/12/11 +11 % vs. 30/06/11 (in € billions) Order book by geographical area Order book by business line No. of months of average business activity 33.2 June 12/ 33.2 12 Dec.11 change 30.0 30.6 30.0 30.6 7.3 10 6.8 6.4 18.7 +4 %
Slide 8: 1st half 2012 financial management and policy
1st half 2012 financial management and policy Optimisation of financial debt " New bond issues and placements: almost " Average debt maturity at end June 2012: 6.4 €1.5 bn years " Average rate at issue (before fixed- " Average cost: 3.90 % at 30/06/12 to floating rate swaps): 3.71 % " 2012-2017 repaymen
Slide 9: 2012 outlook
2012 outlook VINCI well prepared to face a possible deterioration in economic conditions over the 2nd half of 2012 VINCI POperating costs kept under control Autoroutes O Slight decrease in motorway traffic P All-time high order book P Cost flexibility, variable for the most part P Good resilience of VI
Slide 10: Tax and social measures in France
Tax and social measures in France Main new tax and social measures put forward in France " 3% tax on dividends " Applies to dividends paid outside group tax regime Enacted " Effect from August 2012 " Increase in employer’s social contribution on incentive plans " From 8% to 20% Enacted " Incentive pl
Slide 11: Strategic priorities
VINCI “ Strategic priorities
Slide 12: VINCI's key priorities remain unchanged
VINCI’s key priorities remain unchanged Key strategic priorities to create shareholder value over the long run Balanced development of Prudence and concessions and responsiveness contracting Grow revenue and improve margins Adjust to any environment Consistent and prudent Targeted international finan
Slide 13: Strategic priorities: balanced development in concessions and contracting
Strategic priorities VINCI is targeting balanced development in its concessions and contracting activities Strategic priorities Concessions Contracting " Acquire brownfield concessions: 3 main acquisition target areas: To accelerate the Group’s development in the airport sector and in emerging mark
Slide 14: What can we do if times get tougher?
What can we do if times get tougher? Exactly what we did in 2009: prudence and responsiveness " Adapt structures and production resources to anticipate market conditions " Pay rigorous attention to WCR " Control motorways operating expenses tightly " Select new business carefully " Adjust investment
Slide 15: Consistent and prudent financial policy
Consistent and prudent financial policy Safeguard investment grade rating Optimise cost of financing " Average cost of gross debt over time: BBB+ - Stable outlook - Baa1 12.2009 12.2010 12.2011 06.2012 S&P Moody’s 3.94% 3.71% 3.93% 3.90% Credit ratings confirmed and " 72% of gross debt is at fixed or ca
Slide 16: International development
International development Targeted international development through acquisitions and technological leadership Revenue outside France Emphasis on fast-growing geographies €13.4bn €10.7bn in 2011 in 2007 > 75% of revenue acquired in 2011 is outside France Location of major recent acquisitions Expansi
Slide 17: Appendixes
Appendixes Additional 1st half 2012 business data 1st half 2012 financial data Structure & shareholders Business line profiles
Slide 18: Additional 1st half 2012 business data
Additional 1st half 2012 business data
Slide 19: 1st half 2012 revenue: +3.6%
1st half 2012 revenue: +3.6 % (in € millions) Contracting Concessions VINCI Immobilier and eliminations +3.5 % +1.2 % €17,942m +2.3 % €17,323m +1.2 % €30m €70m Other changes Organic growth €338m €181m +3.6 % +620 m€ H1 2011 H1 2012 H1 12 vs H1 11 Organic growth Other changes Change in revenue Conces
Slide 20: 1st half 2012 revenue by geographical area
1st half 2012 revenue by geographical area Revenue growth in France and outside Europe France (as % of H1 2012 revenue) France 64% Central and Eastern Europe 5% +3.3 % vs H1 2011 i.e. €11.5 bn United Kingdom 6% Germany 5% Rest of Europe 7% 36% Europe excl. France Americas 4% -1.1 % vs H1 2011 Africa
Slide 21: VINCI Autoroutes: slight growth in toll revenue
VINCI Autoroutes: slight growth in toll revenue in 1st half 2012 " Toll revenue: +0.5 % in H1 2012 despite 1.9 % decline in traffic " Increasing A86 Duplex traffic : 23,780 vehicles/working day in H1 +28 % " Average increase in toll prices applied on 1 February 2012: 2.2 % " ASF and Escota master plans:
Slide 22: 1st half 2012: continued good commercial momentum - Concessions
1st half 2012: continued good commercial momentum Concessions " Strong traffic growth at VINCI Airports (+11 %) " Complete opening of R1 motorway in Slovakia R1 motorway in Slovakia " Tours-Bordeaux High-speed rail line: ramp-up of project work " Commercial successes " PFI contracts in the UK: Hounslo
Slide 23: 1st half 2012: continued good commercial momentum - Contracting
1st half 2012: continued good commercial momentum Contracting " Order intake: €17.1 bn in 1 half 2012 st " +17 % vs. 1st half 2011 at constant perimeter and excl. Tours-Bordeaux high-speed rail line " Good commercial momentum in France and outside France France: Jussieu campus (Paris), RTE United Ki
Slide 24: Contracting projected order book execution timeline
Contracting Projected order book execution timeline (in € billions) Order book at 30/06/12 2012 2013 2014 and beyond 33.2 7.3 6.9 13.9 11.9 42 % of total 36 % of total 7.4 19.0 4.1 22 % of total 2.0 3.0 1.9 1.2 6.8 8.0 2.0 4.2 VINCI Energies Eurovia VINCI Construction 24
Slide 25: 1st half 2012 financial data
VINCI “ 1°* half 2012 financial data
Slide 26: Income statement (1/2)
Income statement (1/2) st st 1 half 1 half (in € millions) Δ∆ 12/11 2011 2012 2011 Revenue 17,942 17,323 +3.6 % 36,956 Cash flow from operations before tax 2,347 2,333 +0.6 % 5,366 and financing costs (EBITDA) % of revenue 13.1 % 13.5 % 14.5% Operating income from ordinary 1,542 1,569 -1.7 % 3,660 act
Slide 27: Financial income/(expense)
Financial income/(expense) st st 1 half 1 half (in € millions) Δ∆ 12/11 2011 2012 2011 Cost of financial debt (326) (318) (7) (647) Concessions (343) (346) 3 (719) VINCI Autoroutes (326) (324) (2) (678) VINCI Concessions (16) (21) 5 (41) Contracting 10 8 3 14 Holding companies and misc. 6 20 (13) 58
Slide 28: Income statement (2/2)
Income statement (2/2) st st 1 half 1 half (in € millions) Δ∆ 12/11 2011 2012 2011 Operating income and expenses 1,521 1,554 -2.1 % 3,601 Financial income/(expense) (303) (304) (621) Tax (391) (380) (984) Effective rate 32.9 % 31.0 % 33.6% Non-controlling interests (43) (57) (92) Net income attributa
Slide 29: Consolidated revenue
Consolidated revenue Δ∆ 12/11 st st 1 half 1 half (in € millions) Actual Comparable 2011 2012 2011 Concessions 2,542 2,512 +1.2 % +1.1 % 5,297 VINCI Autoroutes 2,066 2,054 +0.6 % +0.6 % 4,409 VINCI Concessions 476 458 +3.8 % +3.3 % 888 Contracting 15,310 14,792 +3.5 % +1.2 % 31,495 VINCI Energies 4,
Slide 30: Consolidated revenue – France
Consolidated revenue – France Δ∆ 12/11 st st 1 half 1 half (in € millions) Actual Comparable 2011 2012 2011 Concessions 2,386 2,367 +0.8 % +0.8 % 5,000 VINCI Autoroutes 2,060 2,048 +0.5 % +0.5 % 4,397 VINCI Concessions 326 318 +2.5 % +2.4 % 602 Contracting 9,005 8,703 +3.5 % +3.4 % 18,334 VINCI Ener
Slide 31: Consolidated revenue – international
Consolidated revenue – international Δ∆ 12/11 st st 1 half 1 half (in € millions) Actual Comparable 2011 2012 2011 Concessions 156 146 +7.3 % +5.3 % 297 VINCI Autoroutes 6 6 +16.2 % +7.8 % 12 VINCI Concessions 150 140 +6.9 % +5.2 % 285 Contracting 6,305 6,089 +3.5 % -1.8 % 13,161 VINCI Energies 1,52
Slide 32: Operating income from ordinary activities by business line
Operating income from ordinary activities by business line st st 1 half % of 1 half % of % of (in € millions) Δ∆ 12/11 2011 2012 rev.* 2011 rev.* rev.* Concessions 993 39.1 % 1,004 40.0 % -1.1 % 2,149 40.6% VINCI Autoroutes 902 43.6 % 893 43.5 % +1.0 % 2,018 45.8% VINCI Concessions 91 19.2 % 111 24.
Slide 33: Net income attributable to owners of the parent by business line
Net income attributable to owners of the parent by business line st st 1 half % of 1 half % of % of (in € millions) Δ∆ 12/11 2011 2012 rev.* 2011 rev.* rev.* Concessions 405 15.9 % 420 16.7 % -3.6 % 852 16.1% VINCI Autoroutes 351 17.0 % 367 17.9 % -4.5 % 820 18.6% VINCI Concessions 54 11.4 % 53 11.5
Slide 34: EBITDA by business line
Cash flow from operations before tax and financing costs (EBITDA) by business line st st 1 half % of 1 half % of % of (in € millions) Δ∆ 12/11 2011 2012 revenue* 2011 revenue* revenue* Concessions 1,581 62.2 % 1,556 62.0 % +1.6 % 3,366 63.6% VINCI Autoroutes 1,424 68.9 % 1,403 68.3 % +1.5 % 3,058 69.4
Slide 35: Net operating investments
Net operating investments st st 1 half 1 half (in € millions) Δ∆ 12/11 2011 2012 2011 Concessions 26 23 +3 57 VINCI Autoroutes 13 9 +4 26 VINCI Concessions 13 14 (1) 31 Contracting 387 284 +103 697 VINCI Energies 40 44 (4) 94 Eurovia 110 89 +21 223 VINCI Construction 237 151 +86 380 VINCI Immobilier
Slide 36: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs st st 1 half 1 half (in € millions) Δ∆ 12/11 2011 2012 2011 Concessions 583 489 +94 1 ,109 VINCI Autoroutes 544 456 +88 1,017 of which: ASF/Escota 441 383 +58 841 Cofiroute 102 73 +29 172 VINCI Concessions 39 33 +6 91 of which: VINCI Park 22 18 +4 49 Contrac
Slide 37: Cash flow statement (1/2)
Cash flow statement (1/2) st st 1 half of which: of which: 1 half (in € millions) 2011 2012 Concessions Contracting 2011 Cash flow from operations 2,347 1,581 722 2,333 5,366 Change in WCR and current provisions (921) (18) (874) (1,335) 93 Income taxes paid (511) (398) (253) (481) (936) Net interest p
Slide 38: Cash flow statement (2/2)
Cash flow statement (2/2) st st 1 half 1 half (in € millions) 2011 2012 2011 Free cash flow (after investments) (359) (602) 2,134 Net financial investments (390)* (31) (172) Other financial cash flows (32) (105) (96) Cash flow before movements in share capital (780) (738) 1,866 Share capital increases and
Slide 39: Consolidated balance sheet
Consolidated balance sheet (in € millions) 30 June 2012 30 June 2011 31 Dec. 2011 Non-current assets – Concessions 26,720 26,456 26,590 Non-current assets – other 8,522 7,973 8,226 WCR and current provisions (5,685) (5,057) (6,817) Capital employed 29,557 29,372 27,999 Equity (13,363) (13,055) (13,6
Slide 40: Net financial debt by business line
Net financial debt by business line Net Net 30 June Financial 30 June Financial Δ∆ June 12/ 31 Dec. (in € millions) 2012 2011 June 11 2011 Debt/ Debt/ EBITDA EBITDA Concessions (18,857) 5.6 x (17,373) 5.3 x (1,484) (18,895) VINCI Autoroutes (17,090) 5.6 x (15,801) 5.3 x (1,289) (17,157) of which: ASF
Slide 41: Change in net financial debt in 1st half 2012
Change in net financial debt in 1st half 2012 (in € billions) Capital increase Share & misc. buy-backs Concession 0.4 (0.5) Interest & taxes investments EBITDA (0.8) (0.6) (14.2) (12.6) 2.3 Δ∆ WCR (0.9) Dividends Acquisitions (0.7) Operating (0.4)* investments (0.4) Free cash flow: €0.4 bn H1 2011: €0
Slide 42: Maturity of gross financial debt
Maturity of gross financial debt " Average maturity of gross financial debt at end June 2012: 6.4 years €m Repayment schedule 3,000 at end June 2012 2,500 2,000 1,500 1,000 H2 H1 500 0 H2 '12 H1 '13 H2 '13 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 > 2028 2013 ASF ASF Holdin
Slide 43: Structure & shareholders
VINCI “ Structure & shareholders
Slide 44: Simplified Organisation Chart
Simplified Organisation Chart 2011 Revenue | Net Income * (in € million) 36,956 | 1,904 CONCESSIONS CONTRACTING 5,297 | 852 31,495 | 968 VINCI VINCI VINCI AUTOROUTES CONCESSIONS EUROVIA CONSTRUCTION 4,409 | 820 888 | 32 8,666 | 315 8,722 | 220 14,107 | 433 Workforce at 31 December 2011 (>183 000 empl
Slide 45: 2011 revenue by market and expertise
2011 revenue by market and expertise 2011 Revenue by: Market Expertise 22% 3% 22% 5% 35%: France ~20% Int’l ~15% 12% 5% 5% 10% 18% 29% 14% 3% 4% 12% 2% Motorways Other Concessions Energy - Electric Public Service Sector Industry Retail/Other Energy - Other IT Road work Quarries & Other Residential B
Slide 46: Shareholder base at June 2012
Shareholder base at 30 June 2012 Rest of the world Individual shareholders United Kingdom 3.7% 6.8% 11.0% North America 16.8% Employees 10.4% Institutional Qatari Diar investors 5.5% 65.2 % Rest of Europe 1.4% Artemis 18.6% 6.5% 19.2% Treasury shares France " Over 500 institutional shareholders " Al
Slide 47: Business line profiles
VINCI “ Business line profiles
Slide 48: Concessions
Concessions
Slide 49: VINCI Autoroutes
VINCI “ VINCI oo AUTOROUTES
Slide 50: VINCI Autoroutes: Resilience and visibility
VINCI Autoroutes Resilience and visibility " Europe’s biggest motorway network " 4,385 km under concession " of which 4,310 km in service A86 ASF Escota Cofiroute * Arcour Duplex Network under 2,714 459 1,100 101 11 concession (km) Km in service 2,639 459 1,100 101 11 End of concession 2033 2027 2031
Slide 51: VINCI Autoroutes 2011 Key figures
VINCI Autoroutes* 2011 Key figures of which of which of which (in € millions) 2010 2011 ASF/ Cofiroute Arcour Escota Revenue 4,259 4,409 3,170 1,202 37 EBITDA 2,929 3,058 2,185 848 23 as % of revenue 68.8% 69.4% 68.9% 70.6% 60.7% Operating income from ordinary activities 1,923 2,018 1,394 608 16 as %
Slide 52: VINCI Autoroutes: Contractual framework of toll increases
VINCI Autoroutes 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% x i ** Current master plan 2012-2016 2012-2016 2011-2014 N/A In regularization phase In regularization phase - 2012 (li
Slide 53: VINCI Autoroutes: Transparent and robust legal framework
VINCI Autoroutes Transparent and robust legal framework " Concessions contracts and their riders define the general framework and the concession company’s missions: " To finance, design and build infrastructure under concession and associated facilities " To meet delivery dates for sections under conc
Slide 54: VINCI Autoroutes capex projections
VINCI Autoroutes Capex projections VINCI Autoroutes capex projections (includes ASF/Escota 2012-2016 master plans currently being finalised) € in bn 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2011 2012 2013 2014 2015 2016 2017 2018 54
Slide 55: VINCI Autoroutes: Quarterly change in toll revenue
VINCI Autoroutes Quarterly change in toll revenue H1 Y/Y-1 change Q1 Q2 Q3 Q4 2011 Q1 Q2 2012 Traffic on a stable network +3.3 % -0.9 % -0.6 % 1.6 % 0.6 % -1.3 % -2.4 % -1.9 % of which: Light vehicles +3.2 % -1.1 % -0.6 % 2.5 % 0.7 % -1.2 % -2.0 % -1.7 % Heavy vehicles +3.8 % +0.8 % -0.9 % -3.4 % 0.1
Slide 56: VINCI Concessions
VINCI “ VINCI “? CONCESSIONS
Slide 57: VINCI Concessions: 2011 revenue by geographical area
2011 revenue by geographical area Key figures (€ millions) 2010 2011 Δ∆ 11/10 Revenue 838 888 +5.9% United Kingdom 6% France 545 602 +10.6% France 67% Greece 5% International 294 285 -2.8% EBITDA 268 308 +24.8% Rest of Europe 10% as % of revenue 31.9% 34.7% N. America 8% Net income 39 32 -17.9% Asia
Slide 58: VINCI Park key figures
Key figures* (€ millions) 2010 2011 Δ∆ 11/10 Revenue 596 599 +0.5% " 1,461,000 spaces managed (of which - France 416 423 +1.6% - International 180 177 -2.1% 1,001,000 outside France) in 12 countries* Op. income from ordinary 111 107 -3.2% activities " 365,000 spaces under concession or as % of revenu
Slide 59: VINCI Airports
VINCI Airports End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 VINCI Airports Cambodia Airport Phnom Penh Concession 2011: Airport Siem Reap Concession 3,667 KPAX 2040 70 % Yes FC Airport Sihanoukville Concession France Airport Chambéry-Savoie DSP (2011: 234 K
Slide 60: Other concessions & PPPs in service
Other concessions & PPPs in service End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Other PPPs and concessions in France France Stadium Stade de France 80,000 seats 2025 67% yes FC Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM Energy Lucitea Pub
Slide 61: Concessions & PPPs under development
Concessions & PPPs under development End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation1 Ground-train communication France Rail GSM-Rail 2025 30% no EM system on 14,000 km of track Stadium Nice 35,000 seats 2040 50% yes EM Stadium Bordeaux Atlantique 40,000 seats
Slide 62: South Europe Atlantic high-speed rail line Tours-Bordeaux
South Europe Atlantic (SEA) high-speed rail line between Tours and Bordeaux (www.lgv-sea-tours-bordeaux.fr) " 50-year concession HSR Existing lines " 302 km new high-speed line + 38 km connecting lines Motorways " Paris–Bordeaux journey time reduced to 2 hrs 05 Kilometre (currently 3 hrs 00) " Total
Slide 63: Contracting
Contracting
Slide 64: Contracting Profile
Contracting Profile Key figures (€ millions) 2010 2011 Δ∆ 11/10 2011 revenue by geographical area Revenue 28,150 31,495 +11.9% Germany 7% France 15,911 18,334 +15.2% UK 6% France 58% International 12,239 13,161 +7.5% CEE 8% Op. income from ordinary activities 1,257 1,435 +14.2% Rest of Europe 8% as %
Slide 65: VINCI Energies: 2011 revenue by geographical area
Key figures (€ millions) 2010 2011 Δ∆ 11/10 2011 revenue by geographical area Revenue 7,102 8,666 +22.0% Germany 13% France 4,439 5,507 +24.1% UK 1% France 64% International 2,663 3,160 +18.6% CEE 2% Op. income from ordinary activities 387 483 +24.8% as % of revenue 5.4% 5.6% Rest of Europe 14% Net i
Slide 66: Eurovia: 2011 revenue by geographical area
Key figures (€ millions) 2010 2011 Δ∆ 11/10 2011 revenue by geographical area Revenue 7,930 8,722 +10.0% Germany 11% France 4,568 5,098 +11.6% UK 4% International 3,362 3,624 +7.8% France 58% Op. income from ordinary activities 285 322 +12.9% CEE 17% as % of revenue 3.6% 3.7% Net income 187 220 +17.5
Slide 67: VINCI Construction: 2011 revenue by geographical area
Key figures (€ millions) 2010 2011 Δ∆ 11/10 2011 revenue by geographical area Revenue 13,118 14,107 +7.5% UK 11% France 6,904 7,729 +12.0% CEE 6% France 55% International 6,214 6,378 +2.6% Rest of Europe 8% Op. income from ordinary activities 584 630 +7.9% as % of revenue 4.5% 4.5% Africa 10% Net inc
Slide 68: Investor relations contacts
Investor relations contacts G. Christopher Welton christopher.welton@vinci.com Tel: +33 1 47 16 45 07 Thomas Guillois thomas.guillois@vinci.com Tel: +33 1 47 16 33 46 68