Vinci SA · EURONEXT:DG
Vinci SA — Corporate Update (April 2024)
16 slides from Vinci SA's corporate update, Apr 29, 2024
Slide 1: Update on Latest Strategy Development
UPDATE ON LATEST STRATEGY DEVELOPMENT VINCI CONCESSIONS CONFERENCE CALL Aerodom Northwest Parkway Edinburgh 29 April 2024
Slide 2: Aerodom: Strong Performance and Value Creation
AERODOM STRONG PERFORMANCE AND VALUE CREATION
Slide 3: Aerodom Overview: Strong Performance Since 2016
AERODOM OVERVIEW STRONG PERFORMANCE SINCE 2016 Highlights of the initial deal and the concession Strong EBITDA margin, the highest within VINCI Airports’ portfolio1 • Acquisition of 6 Dominican airports (out of 9 in the country) from Advent in 2016 In €m 2018 2019 2020 2021 2022 2023 2024 (BR (payme
Slide 4: Transaction Overview: Extension of Aerodom's Concession by 30 Years
TRANSACTION OVERVIEW EXTENSION OF THE AERODOM’S CONCESSION BY 30 YEARS UNTIL MARCH 2060 Characteristics and parameters of the extension • Upfront fee: $775m; $300m paid in January and $475m expected to be paid at financial close (Mid 2024) • Capex commitments • New terminal to be built in Santo Domi
Slide 5: Strategic Rationale
STRATEGIC RATIONALE • Mature asset with long track record • Favorable and resilient traffic mix, good traffic outlook • US-like asset: US-linked traffic, Dominican Republic’s economy linked to US, 90% concession revenues in USD with USD financing incl. US banks and bondholders • Capitalizing on VINC
Slide 6: Northwest Parkway: Breakthrough in the US Highways Market
NORTHWEST PARKWAY BREAKTHROUGH IN THE US HIGHWAYS MARKET
Slide 7: Project Overview: A Stretch of Denver's Beltway
PROJECT OVERVIEW A STRETCH OF DENVER’S BELTWAY Strategic rationale Asset Highlights • Key asset located in a fast-growing corridor in Denver in one of the most ▪ 8.6 miles (part of Denver beltway), c. 20,000 transactions per day dynamic state in the US ▪ Tolls: $5.50 (mainline for 2-axle vehicles) s
Slide 8: A Strategic Location
A STRATEGIC LOCATION POSITIVE TRAFFIC OUTLOOK IN THE CORRIDOR OF THE PARKWAY Population and GDP Growth to Outpace the U.S. One of the U.S.’ Fastest Growing Regions CAGR 2010 - 2023 2024 - 2050 Catchment Area 1.3% 1.1% U.S. Average 0.6% 0.4% 19th 6th +56% Fastest growing city in NWP Region’s Median M
Slide 9: Protective Contractual Terms: Toll Indexation Formula
PROTECTIVE CONTRACTUAL TERMS TOLL INDEXATION FORMULA PROVIDES EXPOSURE TO MACRO-ECONOMICS GROWTH AND PROTECTION TO POTENTIAL DOWNSIDE Among best tolls indexation formula in the US Toll expected to continue to grow at a higher pace than inflation - Tolls (1) only to be notified to the Grantor, and (2
Slide 10: Protective Contractual Terms: Proven Track Record
PROTECTIVE CONTRACTUAL TERMS PROVEN TRACK RECORD TOWARD REVENUES AND EBITDA GROWTH Past performance over the last 10 years Past performance toll growth Traffic* Tarifs 2.0 2.7 3.1 3.0 3.4 3.1 3.5 3.1 2.1 3.6 4.7 3.6 2.0 10.5 8.7 6.1 2% floor has only been triggered twice: Financial crisis post Lehma
Slide 11: Synergies, Opportunities and Development
SYNERGIES, OPPORTUNITIES AND DEVELOPMENT Industrial synergies Driver of the EBITDA growth Revenues optimization ▪ Implementation of variable tolling: ▪ Allows concessionaire to apply toll levels based on the time of the day CPI ▪ Already used on Denver’s Express Lanes and other assets (e.g. 407 ETR)
Slide 12: Edinburgh Airport: Freehold, Fully Deregulated, Scotland's #1 Airport
EDINBURGH AIRPORT FREEHOLD, FULLY DEREGULATED, AND SCOTLAND’S #1 AIRPORT
Slide 13: Transaction Summary
TRANSACTION SUMMARY Transaction Context Key Figures (£m, local GAAP1) ▪ “Gatwick-like” structure: 2018 2019 2020 2021 2022 2023 ▪ Acquisition of a 50.01% stake allowing full consolidation Traffic (mPax) 14.3 14.7 3.5 3.0 11.3 14.4 ▪ Alongside a GIP-managed block of 49.99% Traffic growth 7% 3% (76%)
Slide 14: Asset Presentation: #1 Airport in Scotland
ASSET PRESENTATION #1 AIRPORT IN SCOTLAND AND 6TH IN THE UK Key Elements Historical Traffic traffic comparison ComparisonEdinburgh Edinburghvs vsGlasgow Glasgow(M (MPax) Pax) ▪ Main Scottish airport (57% of 2023 traffic) vs Glasgow (29%): 4.2m catchment area ▪ 12km from Edinburgh (0.9m inhab) and 84
Slide 15: Investment Case: Landmark Airport with Further Growth Potential
INVESTMENT CASE LANDMARK AIRPORT WITH FURTHER GROWTH POTENTIAL ▪ UK is the 2nd country for VINCI: €5.9bn of revenues (8.6% of total 2023) ▪ Well-performing UK airports: London Gatwick and Belfast International Attractive UK airport market ▪ Full traffic recovery expected in 2024 ▪ Proven ability of
Slide 16: Clear and Robust Value Creation Strategy
CLEAR AND ROBUST VALUE CREATION STRATEGY Strategic Objectives ▪ Strong market potential ▪ Quality catchment with continued growth in market share Traffic ▪ Volume / growth committed commercial contracts ▪ Expand the route network and benefit from sustainable competition ▪ Continuation of tariff stra