Vinci Sa · EURONEXT:DG
Vinci Sa — FY2014 Earnings Presentation
45 slides from Vinci Sa's earnings presentation, Feb 5, 2015
Slide 1: 2014 full year results
2014 full year results 5 February 2015
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking objectives and statements about VINCI’s financial situation, operating results, business activities and expansion strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty facto
Slide 3: 2014 highlights
2014 highlights Xavier Huillard Chairman and CEO
Slide 4: 2014 activity highlights
2014 activity highlights Good progress on operational and strategic fronts Stake in Cofiroute increased to 100% Opening of 75% of VINCI Park’s capital Recovery plan to redress UK construction activities Financial close of Imtech ICT and Electrix acquisitions Construction on SEA approaches 80% comple
Slide 5: 2014 financial highlights
2014 financial highlights Resilient performance in a deteriorating environment in France -2.0% France: Revenue Like for like International: Concessions, Energies, Eurovia: EBIT -0.8% Construction: Net Excl. non recurring items: stable income +26.7% Reported: VINCI Park capital gain Concessions: FCF
Slide 6: Concessions in 2014
Concessions in 2014 Revenue: €5.8 bn (+4.5% lfl) EBITDA: €3.8 bn (+8.2%) OTHER CONCESSIONS Revenue €4.8 bn +3.5% lfl Revenue €0.7 bn +13.8% lfl Revenue €0.4 bn +0.4% lfl EBITDA €3.4 bn +4.9% EBITDA €0.3 bn +234.4% EBITDA €0.1 bn -54.4% EBITDA EBITDA EBITDA Margin 71.3% +100 bp Margin 47.7% +1,520 bp
Slide 7: Contracting in 2014
Contracting in 2014 Revenue: €32.9 bn (-3.2% lfl) EBIT: €1.1 bn (-19.6%) Revenue €9.3 bn -2.5% lfl Revenue €8.2 bn -4.6% lfl Revenue €15.4 bn -2.8% lfl EBIT €519 mn +0.3% EBIT €249 mn +8.3% EBIT €380 mn -44.1% EBIT EBIT EBIT Margin 5.6% stable Margin 3.0% +30 bp Margin 2.5% -160 bp Backlog €6.3 bn s
Slide 8: 2014 revenue by geographical area
2014 revenue* by geographical area Slowdown in France and Africa; growth or stability elsewhere Revenue breakdown: 2014 2013 France 62% 62% Int’l 38% 38% France -5% 62% Central & Eastern Europe +5% Western 5% Europe stable** (excl. France) 19% Asia/Middle East/Oceania +12% Americas +9% 5% 5% Africa
Slide 9: 2014 financial data
2014 financial data Christian Labeyrie Executive Vice-President and CFO
Slide 10: 2014 consolidated revenue
2014 consolidated revenue Concessions Contracting Immobilier & eliminations +3.7% -5.0% Scope Organic Scope * Organic 40,338 & FX growth & FX growth -0.8% +4.5% -1.7% 38,703 -42 +248 -658 -3.2% -121 -1,062 Revenue change (l-f-l): -2.0% -€788 mn 2013 2014 Euros in millions Change 14/13 Organic growth
Slide 11: Operating income from ordinary activities (EBIT)
Operating income from ordinary activities (EBIT) GROUP CONCESSIONS CONTRACTING €3,642 mn Stable €2,428 mn +12.6% Margin: 9.4% +30 bp €1,148 mn -19.6% Margin: 41.7% +330 bp Margin: 3.5% -60 bp VINCI VINCI VINCI Park VINCI VINCI Autoroutes Airports & other Energies Eurovia Construction concessions 2,1
Slide 12: Income statement
Income statement (in € millions) 2014 2013 Δ 14/13 Operating income from ordinary activities (EBIT) 3,642 3,670 (0.8%) % of revenue 9.4% 9.1% - share-based payment expense (IFRS 2) (102) (86) - operating income of equity-accounted cos. & other 96 93 Recurring operating income 3,637 3,677 (1.1%) Non-
Slide 13: Change in net financial debt in 2014
Change in net financial debt in 2014 (in € billions) +€0.8 bn Dividends (14.1) (1.3) Investments (13.3) Interest (1.4) Capital Taxes paid increases (1.9) Acquisitions Misc. Δ WCR & disposals 0.4 (0.2) 0.3 Share EBITDA buybacks 5.6 (0.8) Free cash flow: €2.2 bn (+0.8%) Contracting Net financial debt
Slide 14: Consolidated balance sheet
Consolidated balance sheet (in € millions) 31 Dec. 2014 31 Dec. 2013 Non-current assets – concessions 27,691 29,554 Non-current assets – contracting and other 8,838 8,434 WCR, provisions and other current assets & liabilities (5,962) (6,619) Capital employed 30,568 31,369 Equity (14,868) (14,260) No
Slide 15: Financial policy
Financial policy Optimise average gross financial Maintain high level of liquidity debt maturity 2015-2020 maturity schedule (in € bn) 2.6 €10.5 bn liquidity at 31 Dec. 2014 1.9 2.1 1.6 1.6 €4.5 bn managed cash 1.3 €6.0 bn unused bank credit lines (maturing 05/19 following post 2014 renego) 2015
Slide 16: 2015 outlook
2015 outlook Xavier Huillard Chairman and CEO
Slide 17: Concessions
Concessions Traffic Passenger traffic Change (y-o-y) 2013 2014 Change (y-o-y) 2013* 2014 Intercity network +1.1% +2.1% Total +6.6% +9.1% Light vehicles +1.3% +2.2% Cambodia +17.7% +12.8% Heavy vehicles -0.2% +1.7% France +6.9% +3.5% Portugal +5.0% +9.5% Decision by the Grantor to suspend February
Slide 18: VINCI Autoroutes: traffic expected to grow in 2015
VINCI Autoroutes Traffic expected to grow in 2015 although at a lower pace than in 2014 Change in total traffic over 12 trailing months (number of km travelled) 120 LV HV Total Δ 4Q14 vs 1Q08 115 110 +7% 105 +5% 100 95 -10% 90 85 80 75 18
Slide 19: Contracting order book evolution
Contracting Order book evolution affected by decrease in French order intake, HSR Tour Bordeaux contract progress and redeployment on international markets Breakdown by geographical area Breakdown by business line Δ 14/13 Δ 14/13 Δ 14/13 Dec. Dec. Ex-SEA Dec. 29.4 29.6 27.9 -5% -1% 29.4 29.6 27.9 -5
Slide 20: 2015 trends
2015 trends “IN 2015, VINCI IS TARGETING A NET INCOME, EXCLUDING NON RECURRING ITEMS, THAT IS MORE OR LESS UNCHANGED COMPARED TO 2014 EVEN THOUGH THE GROUP’S REVENUE IS EXPECTED TO DECLINE SLIGHTLY. THE SHARE OF CONTRACTING REVENUE GENERATED OUTSIDE OF FRANCE SHOULD INCREASE.” Concessions: growth in
Slide 21: 2014 dividend
Dividend 2014 dividend Dividend* (all-cash) per share: €2.22 (+25%)** Yield *** : 4.9% of which : Paid on 14 November 2014 €1.00 ** To be paid €1.22 Ex-date: 27 April 2015 Payment date: 29 April 2015 * To be proposed to shareholders at the GM on 14 April 2015 ** Of which €0.45 per share exceptio
Slide 22: Strategic priorities
Strategic priorities VINCI’s priorities for sustainable, profitable growth Special focus on growth Expand Extract more value activities international footprint from our current in all business lines positions VINCI Airports Take advantage of worldwide Build on local knowledge & Develop synergi
Slide 23: Thank you for your attention
* Thank you for your attention
Slide 24: Appendixes
Appendixes Structure and shareholder base Financial data Additional information by business line
Slide 25: Structure and shareholder base
Structure and shareholder base
Slide 26: VINCI – A global leader in concessions and contracting
VINCI – A global leader in concessions and contracting 185,300 €38.7 bn 3,000 €27 bn employees 2014 Group revenue business units market cap. at end 2014 114,000 >110 260,000 61% employee shareholders countries where VINCI operates worksites shareholders outside France Concessions Contracting 2014 re
Slide 27: Shareholder base at 31 December 2014
Shareholder base at 31 December 2014 France 10.2% 16.4% Individual investors United Kingdom 9.3% 15.9% Employees Institutional Rest of Europe investors 9.7% 69.7% Qatari Diar 5.3% United States 20.5% 6.0% 6.7% Treasury shares Rest of World Over 500 institutional investors Approximately 203,000 indiv
Slide 28: Detailed consolidated financial statements
Detailed consolidated financial statements
Slide 29: Consolidated revenue
Consolidated revenue Δ 14/13 € in millions 2014 2013 Actual Comparable Concessions 5,823 5,616 +3.7% +4,5% VINCI Autoroutes 4,755 4,596 +3.5% +3,5% VINCI Airports 717 315 +127.4% +13,8% VINCI Park** 259 607 (57.3%) +3,1% Other Concessions 92 98 (6.2%) (6,2%) Contracting 32,916 34,636 (5.0%) (3,2%) V
Slide 30: Consolidated revenue – France
Consolidated revenue – France Δ 14/13 € in millions 2014 2013 Actual Comparable Concessions 5,101 5,191 (1.7%) +3.2% VINCI Autoroutes 4,736 4,581 +3.4% +3.4% VINCI Airports 105 99 +6.0% +6.0% VINCI Park** 180 423 (57.4%) +3.9% Other Concessions 81 88 (7.7%) (7.7%) Contracting 18,842 19,806 (4.9%) (4
Slide 31: Consolidated revenue – international
Consolidated revenue – international Δ 14/13 € in millions 2014 2013 Actual Comparable Concessions 722 426 +69.5% +13.8% VINCI Autoroutes 20 15 +28.4% +34.3% VINCI Airports 612 217 ns +15.3% VINCI Park** 78 183 (57.2%) +1.2% Other Concessions 11 11 +5.9% +5.9% Contracting 14,074 14,830 (5.1%) (1.1%)
Slide 32: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of € in millions 2014 2013 Δ 14/13 revenue* revenue* Concessions 2,428 41.7% 2,155 38.4 % + 12.6% VINCI Autoroutes 2,149 45.2% 2,031 44.2 % + 5.8% VINCI Airports 231 32.2% 65 20,5% + 257.3% VINCI Park** 86 33.2% 114 18,7% (24.4
Slide 33: Financial income/(expense)
Financial income/(expense) € in millions 2014 2013 Δ 14/13 Cost of net financial debt (616) (598) (18) Other financial income and expenses (61) (52) (9) Borrowing costs capitalised 17 21 (4) Discounting retirement obligations and provisions (80) (63) (17) Foreign exchange gains and losses 2 (10) +11
Slide 34: Net income attributable to owners of the parent by business line
Net income attributable to owners of the parent by business line € in millions 2014 % of rev* 2013 % of rev* Δ 14/13 Concessions 1,779 30.5% 934 16.6 % + 90.4% VINCI Autoroutes 917 19.3% 798 17.4 % + 15.0% VINCI Airports 154 21.5% 151 47.8% + 2.4% VINCI Park** 45 17.3% 69 11.4% (35.5%) Other Concess
Slide 35: EBITDA
EBITDA* % of % of € in millions 2014 2013 Δ 14/13 revenue** revenue** Concessions 3,823 65.6% 3,533 62.9 % + 8.2% VINCI Autoroutes 3,390 71.3% 3,231 70.3 % + 4.9% ASF/Escota 2,428 71.0% 2,316 70.0% +4.8% Cofiroute 927 72.2% 886 71.4% +4.7% VINCI Airports 342 47.7% 102 32,5% +234.4% VINCI Park*** 93
Slide 36: Operating investments, net
Operating investments, net € in millions 2014 2013 Δ 14/13 Concessions 63 64 (1) VINCI Autoroutes 12 25 (13) Other Concessions 51 39 +13 Contracting 680 712 (32) VINCI Energies 108 108 (0) Eurovia 218 218 (0) VINCI Construction 354 385 (31) VINCI Immobilier and holdings 1 1 (0) Purchases of PP&E and
Slide 37: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 2014 2013 Δ 14/13 Concessions 806 764 +42 VINCI Autoroutes 684 689 (5) O/w : ASF / Escota 553 553 (0) Cofiroute 130 132 (2) VINCI Airports 59 38 +21 Other Concessions 62 37 +25 Contracting (6) 39 (45) Growth investments in concessions and 799
Slide 38: Cash flow statement (1/2)
Cash flow statement (1/2) of which: 2014 Concessions Contracting 2013 € in millions Cash flow from operations 5,561 3,823 1,624 5,596 Change in WCR and current provisions (158) 47 (185) 6 Income taxes paid (1,282) (780) (456) (1,408) Net interest paid (586) (654) (43) (605) Dividends received from c
Slide 39: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 2014 2013 Free cash flow (after investments) 2,197 2,180 Net financial investments* 585 (3,220) Other financial cash flows (268) (95) Cash flow before movements in share capital 2,515 (1,135) Share capital increases and other operations 441 783 Dividends (1,28
Slide 40: Net financial debt by business line
Net financial debt by business line (in € millions) 31 Dec. 2014 31 Dec. 2013 Δ 14/13 Concessions (19,920) (20,010) 90 VINCI Autoroutes (16,807) (15,387) (1,420) VINCI Concessions (3,112) (4,622) 1,510 Contracting 1,606 2,129 (524) Holding cos & VINCI Immobilier 5,033 3,777 1,256 Net financial debt
Slide 41: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt at end December 2014: 5.2 years (Concessions: 5.8 years) 3 000 Repayment schedule 2 500 at end December 2014 2 000 1 500 1 000 500 0 1H 15 2H 15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2030 ASF
Slide 42: Additional information by business line
Additional information by business line
Slide 43: VINCI Autoroutes: contractual framework of toll increases
VINCI Autoroutes Contractual framework of toll increases (LVs) ASF Escota Cofiroute* Arcour End of concession 2033 2027 2031 2070 Base annual toll increase until end of concession: 70% x i ** Current master plans 2012-2016 2012-2016 N/A N/A Additional Additional Additional Base Base Base increase in
Slide 44: Exposure to traditional French construction and roadwork activities
Exposure to traditional French construction and roadwork activities (2014) 2014 Group revenue breakdown VINCI Energies Rail works and other: €0.6 bn France Traditional roadworks: €4.3 bn 5.3 Eurovia 4.9 France Total: €11.3 bn 29% Contracting outside 14.1 €38.7 bn 8.7 VINCI of total Group revenue Fra
Slide 45: IR Contacts and Agenda
IR Contacts and Agenda CONTACTS AGENDA 14 April 2015 G. Christopher Welton Shareholders’ general meeting christopher.welton@vinci.com Tel: +33 1 47 16 45 07 23 April 2015 1st quarter 2015 information Thomas Guillois 27 April 2015 thomas.guillois@vinci.com Final 2014 dividend* ex-date Tel: +33 1 47 1