Vinci SA · EURONEXT:DG
Vinci SA — H1 2010 Earnings Presentation
59 slides from Vinci SA's earnings presentation, Sep 1, 2010
Slide 1: 2010 half-year results
2010 half-year results Analysts meeting – 1 September 2010 Xavier Huillard Chairman and Chief Executive Officer Christian Labeyrie Executive Vice-President and Chief Financial Officer
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: First half 2010 highlights
First half 2010 highlights First half 2010 highlights 2010 half-year financial statements Outlook
Slide 4: First half 2010 highlights
First half 2010 highlights ! Return of revenue growth ! Improvement in operating profit, cash flow and net profit ! Growth of French motorway traffic ! Major commercial successes ! Strengthening of Energies business line ! Order book at its highest ever level ! Net financial debt under control 4
Slide 5: First half 2010: key figures
First half 2010: key figures (in € millions) H1 2009 H1 2010 Δ∆ 10/09 Revenue* 15,155 15,505 +2.3% Cash flow from operations before tax 2,147 2,229 +3.8% and cost of financing (EBITDA) % of revenue* 14.2% 14.4% Operating profit from ordinary activities 1,358 1,423 +4.8% % of revenue* 9.0% 9.2% Net profit
Slide 6: Growth in revenue
Growth in revenue +2.3% +€350m 15,505 15,155 Organic growth Impact of Consolidation -€456m exchange rates scope +€146m +€660m H1 09 H1 10 Exchange rates Change in H1 10/09 change Organic growth Consolidation scope & misc. revenue Concessions +4.3% +0.5% -0.4% +4.4% Contracting -5.1% +5.0% +1.2% +1.1
Slide 7: International growth: 39% of revenue generated outside France
International growth: 39% of revenue generated outside France (Contracting: 45%) First half 2010 revenue by geographical area H1 2010 Δ∆ 10/09 United At constant Kingdom Central Europe (in €m) Actual exchange Germany rates France 9,469 +0.4% +0.4% Rest of Europe United Kingdom 966 -12.0% -14.3% Amer
Slide 8: Op. profit: sharp rise in Concessions, stability in Contracting
Op. profit: – sharp rise in Concessions – stability in Contracting Concessions Contracting Total VINCI Group Op. profit/ 37.3% 38.7% 3.6% 3.6% 9.0% 9.2% revenue +4.8% +8.5% 1,423 1,358 929 856 -0.3% VINCI Park & 90 Other 88 concessions VINCI 466 465 Autoroutes 768 839 121 150 Energies 36 3 Eurovia 309
Slide 9: VINCI Autoroutes: resumption of traffic growth
VINCI Autoroutes: resumption of traffic growth ! Continuation of increase in light-vehicle traffic ! Confirmation of return of growth in heavy-vehicle traffic Traffic on a stable network Light vehicles: (in no. of km travelled over 12 trailing months) up 2.1% in H1 2010 Base 100: Q4 2007 Total traffic: up 2.2%
Slide 10: VINCI Autoroutes: good improvement in margins and continuation of investments
VINCI Autoroutes: good improvement in margins and continuation of investments ! Revenue growth: up 5% ! Improvement in EBITDA % of % of % of (in € millions) 2009 H1 2009 H1 2010 Δ∆ 10/09 revenue revenue revenue EBITDA 2,807 68.5% 1,252 66.7% 1,333 67.6% +6.5% of which: ASF/Escota 1,997 67.3% 895 65.
Slide 11: VINCI Autoroutes: relations with concession grantor
VINCI Autoroutes- Relations with concession grantor: good momentum ! “Green motorway package” came into force ! €750 million to be invested over three years ! One-year extension to the concession contracts (Escota: 2027; Cofiroute: 2031; ASF: 2033) ! Toll increases applied on 1 February 2010 in line
Slide 12: Development of new concessions
Development of new concessions ! Projects under construction ! Start-up of GSM-Rail ! Continuation of works under way (R1 expressway in Slovakia, German motorways, tunnel in Antwerp, etc.) ! €212 million invested during the first half of 2010 (against €54 million in H1 2009) ! Projects awarded: closi
Slide 13: Contracting: operating margin stable at 3.6%
Contracting: operating margin stable at 3.6% Revenue: €13.0 billion Op. profit from ordinary Net profit: €287 million Δ∆ H1 10-09: +1.1% activities: €465 million Δ∆ H1 10-09: -5.1% 3.6% of revenue 12,901 13,040 (in € millions and as % of revenue) 5,565 5,886 466 465 3.6% 3.6% 7,336 7,154 302 287 2.3%
Slide 14: Order book at record high: €28.4 billion at June 2010
Order book at record high: €28.4 billion at 30 June 2010 ! Growing share of international business ! Consolidation of Cegelec: order book of €1.9 billion ! Good commercial momentum overall Order book (in € billions) Order intake (in € billions) +18% against Dec. 09 and over 12 months +9% against H1
Slide 15: Contracting: Energies
Contracting: Energies ! Creation of the Energies division ! Consolidation of Cegelec on 14 April 2010 (2009 revenue: €2.8 billion) ! Consolidation of Faceo on 1 August 2010 (2009 revenue: €430 million) ! Creation of VINCI Facilities as part of Energies (estimated full year revenue: €1.2 billion) A E
Slide 16: Contracting: Eurovia
Contracting: Eurovia ! Early part of the year marked by very unfavourable weather conditions ! Activity picked up in the second quarter ! Finalisation of the acquisition of Tarmac quarries in Continental Europe (consolidation forecast from 1 September 2010) ! Operating margin under competitive press
Slide 17: Contracting: Construction
Contracting: Construction ! France: good commercial activity ! 52% of business generated in international arena ! Vitality of Entrepose Contracting, Freyssinet, Dredging and Sogea Satom (Africa) ! Decline in the United Kingdom and Central Europe ! Improvement in operating profit from ordinary activit
Slide 18: 2010 consolidated half-year financial statements
2010 consolidated half-year financial statements First half 2010 highlights 2010 half-year financial statements Outlook
Slide 19: Consolidated income statement
Consolidated income statement (in € millions) H1 2009 H1 2010 Δ∆ 10/09 Revenue 15,155 15,505 +2.3% Operating profit from ordinary activities 1,358 1,423 +4.8% % of revenue 9.0% 9.2% Operating profit 1,356 1,414 +4.2% Financial income/(expense) (322) (342) Income tax expense (295) (315) Non-controlling
Slide 20: Financial income/(expense)
Financial income/(expense) (in € millions) H1 2009 H1 2010 Cost of net financial debt (379) (350) Concessions (369) (361) of which VINCI Autoroutes (311) (304) Other (58) (57) Contracting 9 (3) Holding companies and property (19) 14 Other financial income and expenses 57 8 Capitalised borrowing costs
Slide 21: EBITDA: 3.8% growth
EBITDA: 3.8% growth Concessions Contracting Total VINCI Group EBITDA/ 60.8% 61.7% 5.7% 5.5% 14.2% 14.4% revenue +3.8% 2,229 2,147 +6.0% 1,480 1,396 VINCI Park & 144 147 -1.5% other concessions 732 721 VINCI 139 167 Energies Autoroutes 1,333 132 93 Eurovia 1,252 66.7% 67.6% 461 461 Construction H1 09
Slide 22: First half 2010 change in net financial debt
First half 2010 change in net financial debt (in € billions) -1.3 Op. profit before tax and cost of Dividends +0.1 (15.0) financing Operating (0.6) (13.7) +2.2 investments Capital -0.4 increase & Investments misc.* Δ∆ WCR Concessions: -0.5 -0.8 Interest & taxes Financial: -0.3* paid -1.0 Operation Inve
Slide 23: Financial situation strengthened
Financial situation strengthened (in € millions) 30 June 09 31 Dec. 09 30 June 10 EQUITY AND LIABILITIES 9,733 10,440 12,132 Equity 1,339 1,401 1,606 Non-current provisions and other long-term liabilities 20,887 19 706 19,787 Borrowings (A) WCR and current provisions 4,775 6,248 5,544 ASSETS Non-cur
Slide 24: Net financial debt by entity
Net financial debt by entity (in € billions) 30 June 09 31 December 09 30 June 10 (13.7)* (15.7)* (15.0)* 3.3 1.9 2.0 -2.2 -1.6 -1.2 -1.3 -1.4 -1.7 Contracting Holding cos. & misc. VINCI Park & Other concessions -14.2 -14.0 -14.1 VINCI Autoroutes * of which non-recourse project financing (1.0) (1.2) (
Slide 25: Management and financial policy
Management and financial policy ! Good access to financing: ! ASF: €500 million, 10-year bond issue (coupon: 4.125%) ! New concessions: GSM-Rail project financing completed (€0.5 billion over 15 years) ! SEA / Moscow–St Petersburg: financing under way ! No significant maturities before 2012 ! Very high l
Slide 26: Outlook
Outlook First half 2010 highlights 2010 half-year financial statements Outlook
Slide 27: Recent indicators
Recent indicators ! Motorway traffic on a stable network (total to 22 August 2010): +2.1% ! Light vehicles: +2.0% ! Heavy vehicles: +2.5% Confirmation of trends observed end of June ! Order book at very high level at 31 July ! 95% of 2010 activity contracted for at end July ! Almost 60% of work on orde
Slide 28: 2010 Outlook: priorities unchanged
2010 Outlook Priorities unchanged: prudence and responsiveness CONCESSIONS CONTRACTING ! VINCI Autoroutes: ! Selective order-taking: priority ! Control operating expenses of margins over volumes and investments ! Adapt structures, production ! Dialogue with concession resources and investments to gr
Slide 29: 2010 Outlook – Overview
2010 Outlook – Overview ! Increase in revenue of about 5% ! VINCI Autoroutes’ growth raised to 4% ! Limited decline in Contracting on a comparable structure basis ! Significant impact of acquisitions (about €2.3 billion in 2010) ! Operating profit growth in line with revenue ! Stabilisation of EBITDA
Slide 30: Decision of the Board of Directors on 31 August 2010
Decision of the Board of Directors on 31 August 2010 ! Interim dividend of €0.52 per share ! Ex-dividend date: 13 December 2010 ! Cash payment on 16 December 2010 30
Slide 31: Appendixes
Appendixes Shareholder base at 30 June 2010 Detailed consolidated half-year financial statements Additional information by business lines
Slide 32: Shareholder base at 30 June 2010
Shareholder base at 30 June 2010 31 Dec. 2009 30 June 2010 Institutional investors 70.4% 67.6% France 29.0% 24.1% Rest of Europe 17.7% 18.3% North America 12.1% 11.7% United Kingdom 8.2% 9.8% Rest of the world 3.4% 3.7% Individual shareholders 12.3% 12.1% Employees 9.2% 9.1% Qatari Diar - 5.7% Artem
Slide 33: Appendixes: Detailed consolidated half-year financial statements
Appendixes: Detailed consolidated half-year financial statements
Slide 34: Consolidated revenue by business activity
Consolidated revenue by business activity H1 09 H1 10 Δ∆ 10/09 Δ∆ 10/09 (in € millions) actual comparable VINCI Autoroutes 1,877 1,972 +5.0% +5.0% VINCI Park 322 318 -1.0% +1.2% Other concessions 97 108 +11.0% +1.0% CONCESSIONS 2,297 2,399 +4.4% +4.3% Energies 2,370 2,873 +21.3% -3.1% Eurovia 3,464
Slide 35: Consolidated revenue by business activity – France
Consolidated revenue by business activity – France H1 09 H1 10 Δ∆ 10/09 Δ∆ 10/09 (in € millions) actual comparable VINCI Autoroutes 1,871 1,966 +5.0% +5.0% VINCI Park 206 206 +0.4% +0.4% Other concessions 51 61 +19.3% +0.4% CONCESSIONS 2,128 2,233 +4.9% +4.5% Energies 1,533 1,842 +20.1% -0.7% Eurovi
Slide 36: Consolidated revenue by business activity – international
Consolidated revenue by business activity – international H1 09 H1 10 Δ∆ 10/09 Δ∆ 10/09 (in € millions) actual comparable VINCI Autoroutes 6 6 +2.1% +1.7% VINCI Park 116 112 -3.5% +2.9% Other concessions 47 47 +1.9% +1.7% CONCESSIONS 169 166 -1.8% +2.5% Energies 836 1,031 +23.3% -7.4% Eurovia 1,331
Slide 37: Operating profit from ordinary activities by business activity
Operating profit from ordinary activities by business activity (in € millions) 2009 % of H1 2009 % of H1 2010 % of Δ∆ 10/09 revenue* revenue* revenue* VINCI Autoroutes 1,793 43.8% 768 40.9% 839 42.6% +9.3% VINCI Park 101 16.3% 59 18.4% 60 18.8% +1.1% Other concessions 23 29 30 CONCESSIONS 1,917 39.1%
Slide 38: Net profit attributable to owners of the parent by business activity
Net profit attributable to owners of the parent by business activity (in € millions) 2009 % of revenue* H1 2009 H1 2010 Δ∆ 10/09 VINCI Autoroutes 733 17.9% 305 342 +12.2% VINCI Park 41 6.6% 26 28 +9.0% Other concessions 18 9.8% 26 23 -12.6% Concessions holding cos. (48) (17) (19) CONCESSIONS 745 15.2
Slide 39: EBITDA by business activity
Cash flow from operations before tax and cost of financing (EBITDA) by business activity (in € millions) 2009 % of H1 2009 % of H1 2010 % of Δ∆ 10/09 revenue* revenue* revenue* VINCI Autoroutes 2,807 68.5% 1,252 66.7% 1,333 67.6% +6.5% VINCI Park 203 32.6% 99 30.7% 97 30.3% -2.2% Other concessions 76
Slide 40: Cash flow statement (1/3): Operating cash flow
Cash flow statement (1/3) Operating cash flow (in € millions) 2009 H1 2009 H1 2010 Δ∆ 10/09 Cash flow from operations before tax and cost of 4,964 2,147 2,229 81 financing (EBITDA) Interest paid (784) (471) (438) 33 Income taxes paid (690) (205) (538) (333) Change in WCR and current provisions 609 (757)
Slide 41: Operating investments
Operating investments (in € millions) 2009 H1 2009 H1 2010 Δ∆ 10/09 VINCI Autoroutes (16) (7) (5) 2 VINCI Park and other concessions (33) (13) (16) (3) Concessions (49) (20) (21) (1) Energies (75) (33) (30) 3 Eurovia (250) (156) (112) 44 Construction (516) (270) (283) (13) Contracting (841) (459) (4
Slide 42: Cash flow statement (2/3)
Cash flow statement (2/3) Investments in concessions growth and financial investments (in € millions) 2009 H1 2009 H1 2010 Δ∆ 10/09 Operating cash flow 3 302 272 16 (256) Investments in concession assets and PPP (1,227) (585) (507) 78 contracts Gross financial investments (186) (82) (110)* (28) Sale of
Slide 43: Investments in growth of concessions and PPPs
Investments in growth of concessions and PPPs (in € millions) 2009 H1 2009 H1 2010 ASF/Escota (524) (264) (293) Cofiroute (315) (160) +13* Arcour (A19) (106) (80) (1) VINCI Park (44) (27) (14) Other** (238) (54) (212) Investments in concession assets and (1,227) (585) (507) PPP contracts * Net of €12
Slide 44: Cash flow statement (3/3)
Cash flow statement (3/3) (in € millions) 2009 H1 2009 H1 2010 Δ∆ H1 10/09 Free cash flow after investments 1,958 (371) (781) (410) Dividends (873) (553) (625) (72) Share capital increases 654 529 232* (297) Share buy-backs (2) (5) (5) Movements in share capital (221) (24) (398) (374) Net cash flow for
Slide 45: Consolidated balance sheet
Consolidated balance sheet 30 June 31 Dec. (in € millions) 30 June 2010 2009 2009 ASSETS Non-current assets – concessions 26,553 26,681 26,676 Non-current assets – other business activities 4,943 5,057 7,557 Current financial assets 52 35 41 Net cash managed 5,186 6,022 4,795 Total assets 36,734 37,7
Slide 46: Net financial debt by business activity
Net financial debt by business activity (in € millions) 30 June 31 Dec. Debt/ cash 30 June Debt/ cash against Dec. 2009 2009 flow* 2010 flow* 09 VINCI Autoroutes (14,161) (14,029) x 5.0 (14,143) x 4.9 (114) VINCI Park (844) (830) x 4.1 (816) x 4.1 14 Others concessions (453) (611) x 7.9 (880) x 9.5 (26
Slide 47: Maturity of long-term gross debt
Maturity of long-term gross debt ! Average maturity of long-term gross debt (€19 billion): 7.1 years (of which Concessions: > 8 years) ASF ASF Holding Cofiroute Arcour Other concessions Holding companies and other business activities 47
Slide 48: Breakdown of long-term gross debt
Breakdown of long-term gross debt Breakdown by nature of debt Breakdown by fixed/floating rate Good diversification of sources of long-term after hedging financing 30 June cf. % of total 2009 2010 Fixed rate 11,423 60% 66% Capped/inflation- 2,405 13% 15% linked floating rate Total “protected” 13,828 73% 8
Slide 49: Appendixes: Additional information by business lines
Appendixes: Additional information by business lines
Slide 50: VINCI Autoroutes: 5.0% revenue growth in first half 2010
VINCI Autoroutes: 5.0% revenue growth in first half 2010 VINCI ASF Escota Cofiroute Arcour Autoroutes Revenue (in € millions) 1,119 302 536 15 1,972 Δ∆ H1 10/H1 09 +4.2% +4.4% +4.5% - +5.0% Light vehicles +2.2% +1.6% +2.3% - +2.1% Heavy vehicles +2.0% +5.5% +3.6% - +2.8% Traffic on stable network +2.2%
Slide 51: VINCI Park: first-half 2010 highlights
VINCI Park: first-half 2010 highlights Key figures ! 1,324,000 spaces managed in 12 countries (in € millions) 2009 H1 09 H1 10 ! 377,000 under concession or freehold (+1% Revenue 623 322 318 against Dec. 09) and 947,000 under service – France 413 206 206 contracts (+8% against Dec. 09) – International
Slide 52: Contracting – key figures
Contracting – key figures 2009 revenue by geographical area Key figures France Central Europe (in € millions) 2009 S1 09 S1 10 United Kingdom Germany Revenue 26,891 12,901 13,040 Rest of Europe – France 14,927 7,335 7,154 Americas – International 11,964 5,565 5,886 Africa Asia/Middle East/ Op. profit f
Slide 53: Energies: first-half 2010 key figures
Energies: first-half 2010 key figures Op. profit from ordinary Revenue: €2.9 billion Net cash at activities: €150 million Δ∆ H1 10-09: +21% 30 June 5.2% of revenue (+10 bp) (in € millions and as % of revenue) (in € millions) 2,873 2,370 561 836 787 122 150 753 5.2% 638 1,533 1,525 5.1% H1 09 H1 10 H1 0
Slide 54: Energies: first-half 2010 key figures
Energies: first-half 2010 key figures Order book: €5.8 billion Order intake: €3.8 billion Δ∆ against Dec. 09: +28% Δ∆ against H1 09: +25% excl. Cegelec excl. Cegelec 3.8 5.8 0.6 1.9 2.5 0.9 3.0 0.8 1.1 1.0 2.3 1.7 2.8 2.0 Dec. 09 June 10 H1 09 H1 10 France International Cegelec 54
Slide 55: Eurovia: first-half 2010 key figures
Eurovia: first-half 2010 key figures Op. profit from ordinary Revenue: €3.4 billion Net financial debt at activities: €3 million Δ∆ H1 10-09: -0.7% 30 June 0.1% of revenue (in € millions) (in € millions and as % of revenue) 3,464 3,440 1,330 1,332 (10) 36 2,134 2,108 1.0% (103) 3 0.1% H1 09 H1 10 H1 09
Slide 56: Eurovia: first-half 2010 key figures
Eurovia: first-half 2010 key figures Order book: €6.4 billion Order intake: €3.7 billion Δ∆ against Dec. 09: +7% Δ∆ against H1 09: -9% 6.4 4.1 5.9 3.7 1.7 1.4 3.8 4.0 2.1 2.4 2.4 2.3 Dec. 09 June 10 H1 09 H1 10 France International 56
Slide 57: Construction: first-half 2010 key figures
Construction: first-half 2010 key figures Op. profit from ordinary Revenue: €6.7 billion activities: €312 million Net cash at 30 June Δ∆ H1 10-09: -4.8% 4.6% of revenue (+20 bp) (in € millions) (in € millions and as % of revenue) 7,067 6,726 3,523 6,8 3,399 312 309 1,369 4.6% 1,258 3,668 4.4% 3,203 H1
Slide 58: Construction: first-half 2010 key figures
Construction: first-half 2010 key figures Order book: €16.2 billion Order intake: €7.2 billion Δ∆ against Dec. 09: +8% Δ∆ against H1 09: +5% 16.2 7.2 15.1 6.8 8.3 9.4 3.3 3.2 6.7 6.8 3.5 4.0 Dec. 09 June 10 H1 09 H1 10 France International 58
Slide 59: Investor relations contacts
Investor relations contacts 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 59