Vinci SA · EURONEXT:DG
Vinci SA — 9M 2016 Earnings Presentation
64 slides from Vinci SA's earnings presentation, 2016
Slide 1: 2016 nine months highlights
2016 nine months highlights Bogota – Girardot motorway - Colombia
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: 2016 nine months highlights
VINCI Ws 2016 nine months highlights
Slide 4: First nine months 2016 key figures
First nine months 2016 key figures Vs. 9M 2015 Group Revenue €27.6 bn -2.0% Concessions Toll road traffic +3.1% Airport passenger traffic +10.5% Contracting Order book at 30 September 2016 €27.9 bn -2% Order intake 9M 2016 €23.8 bn +1% Net financial debt as of September 30, 2016 €13.0 bn +€0.2 bn vs
Slide 5: First nine months 2016 consolidated revenue
First nine months 2016 consolidated revenue Δ 16/15 € in millions 9M 2016 9M 2015 Actual Comparable FY 2015 Concessions 4,790 4,459 +7.4% +6.1% 5,804 VINCI Autoroutes 3,933 3,760 +4.8% +4.8% 4,871 VINCI Airports 764 622 +22.7% +12.9% 820 Other Concessions 94 77 +10.9% +12.4% 112 Contracting 22,733 2
Slide 6: First nine months 2016 consolidated revenue change
First nine months 2016 consolidated revenue (in € millions) Concessions Contracting +7.4 % -4.1 % 28,180 Organic Scope Organic Scope FX 27,628 +6.1 % +1.4 % -5.0 % +2.2 % -1.4 % Revenue change: -2.0 % Organic: -2.9 % Scope: +2.1 % FX: -1.2 % 9M 2015 9M 2016 6
Slide 7: First nine months 2016 revenue by geographical area
First nine months 2016 revenue by geographical area 41 % of 9M 2016 revenue generated outside France France €16.3 bn -2 % 59 % Central & Eastern Europe -15 % €1.1 bn 4% Western Europe (excl. France) €5.9 bn +1 % Asia/Middle East/Oceania 22 % €1.3 bn -6 % Americas +4 % 6% €1.8 bn Africa -7 % 6% €0.9
Slide 8: Concessions overview – First nine months 2016
Concessions overview – First nine months 2016 Revenue : €4.8 bn (+7.4 %) Revenue €3.9 bn +4.8 % Revenue €0.8 bn +22.7 % Traffic Passenger traffic Change y-o-y 9M 2016 9M 2015 FY 2015 Change y-o-y 9M 2016 9M 2015 FY 2015 VINCI Airports * +10.5% +11.3% +11.4 % Intercity network +3.1% +2.9% +3.0% Portu
Slide 9: VINCI Autoroutes: traffic outlook
VINCI Autoroutes: traffic outlook HV traffic close to pre-Lehman crisis level Change since Q4 2007 Change in traffic over 12 trailing months (number of km travelled) as of Q3 2016 120 Light vehicles 115 +14.1 % 110 Total traffic +11.5 % 105 100 Heavy vehicles 95 -3.1 % 90 85 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: Contracting overview – First nine months 2016
Contracting overview – First nine months 2016 Revenue : €22.7 bn (-4.1 %) Revenue €7.4 bn +1.3 % actual Revenue €5.6 bn -3.9 % actual Revenue €9.8 bn -8.0 % actual -1.6 % lfl* -2.8 % lfl* -8.4 % lfl* International 47% 53% France International 44% 56% France International 48% 52% France +1.2 % +1.4 %
Slide 11: Contracting order intake
Contracting order intake Order intake stabilisation compared to 9M 2015 Breakdown by business lines (in € bn) Breakdown by geographical area (in € bn) 23.7 +1 % 23.8 23.7 +1 % 23.8 +4 % -3 % +3 % +4 % -3 % 9M 2015 9M 2016 9M 2015 9M 2016 VINCI Energies France Eurovia International VINCI Construction
Slide 12: Outlook and strategy
VINCI Ws Outlook and strategy
Slide 13: 2016 Outlook – Main trends confirmed
2016 Outlook – Main trends confirmed Concessions Contracting VINCI Autoroutes revenue growth in excess of the A small increase in revenue at VINCI Energies, but with 2015 figure the possibility of a like-for-like decline VINCI Airports like-for-like revenue growth close to A slightly larger
Slide 14: Contracting order book
Contracting order book Stabilisation of the order book with longer time-spread Breakdown by geographical area Breakdown by business line Δ 16 / 15 Sept. Δ 16 / 15 Sept. Actual Excl. SEA* Actual Excl. SEA* 28.5 27.7 27.9 -2 % -1 % 28.5 27.7 27.9 -2 % -1 % 6.5 -4 % -3 % 6.1 6.2 14.0 13.4 14.4 +3 % +6
Slide 15: 2016 interim dividend
Dividend 2016 interim dividend Interim dividend (all-cash) per share: €0.63 Compared to €0.57 as of 1H 2015 (+10.5 %) Ex-date: 8 November 2016 Payment date: 10 November 2016 15
Slide 16: Financial policy
Financial policy Good spread of gross financial Credit rating upgrade debt maturities over time May 2016: Moody’s upgrades credit rating at 2016-2022 maturity schedule as of 30 June 2016 (in € bn): A3 (LT); P-1 (ST); outlook Stable 2.1 2.6 2.1 1.6 1.8 1.5 August 2015: S&P confirms credit rating at 1
Slide 17: VINCI's strategic priorities for sustainable, profitable growth
VINCI’s strategic priorities for sustainable, profitable growth VINCI Airports Take advantage of worldwide air traffic growth Restructure under-performing Extract more country-business value Special focus Seek out greenfield and combinations from our on growth brownfield opportunities current
Slide 18: 18
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Slide 19: Appendixes
Appendixes Structure and shareholder base Business line profiles H1 2016 Financial data
Slide 20: Structure and shareholder base
Structure and shareholder base
Slide 21: A global leader in concessions and contracting
VINCI – A global leader in concessions and contracting 185,500 €38.5 bn ~3,500 €40.6 bn employees 2015 Group revenue business units market cap. at September 30, 2016 117,000 >110 280,000 61% employee shareholders countries where VINCI operates estimated worksites shareholders outside France Concessi
Slide 22: Shareholder base at June 2016
Shareholder base at 30 June 2016 France United Kingdom 12.1 % 16.5 % Individual investors Rest of Europe 8.0 % Institutional investors 18.2 % 594,9 m Employees shares 9.3 % 72.1 % 4.0 % Qatar Holding LLC North America 6.6 % 19.0 % Treasury Shares 6.3 % Rest of the World Shareholding structure Over 5
Slide 23: Business line profiles
VINCI Ws Business line profiles
Slide 24: Concessions Profile
Concessions Profile 2015 Key figures 2015 revenue by geographical area Revenue 5,804 RoW 3 % France 5,053 Portugal 10 % International 751 EBITDA 3,933 as % of revenue 67.8% Net income 1,295 France 87 % Capital employed at 31 December 2015 26,246 €5.8 bn Free Cash Flow 1,464 o/w growth investments (9
Slide 25: Extension of the maturity of the concessions portfolio
Extension of the maturity of the concessions portfolio Remaining life (1) of the portfolio (number of years) 27 26 25 24 24 23 22 28 27 28 1 7 7 1 7 1 1 1 3 Extensions due to VINCI Airports development 27 26 Extensions due to VINCI 25 24 23 22 Autoroutes development and 21 20 19 stimulus packages 18
Slide 26: VINCI Autoroutes
VINCI Ws VINCI a” AUTOROUTES
Slide 27: Autoroutes: France's leading toll road concession operator
VINCI Autoroutes France’s leading Toll Road concession operator 2015 Key figures 4,398 km under concession (€ in millions) GCO* Revenue 4,871 approx. 50 % EBITDA as % of revenue 3,522 72.3% of conceded French toll roads Net income 1,100 Capital employed at 31 Dec. 2015 21,866 1,355 >35 % Free Cash F
Slide 28: Autoroutes: contractual framework of toll increases
VINCI Autoroutes Contractual framework of toll increases (LVs) ASF Escota Cofiroute excl. A86 Duplex End of concession 2036 2032 2034 2016 (applied on Feb. 1st) 1.63 % 1.18 % 0.82 % 2017* 70% x i + 0.945 % 70% x i + 0.34 % 70% x i + 0.32 % 2018* 70% x i + 0.62 % 70% x i + 0.62 % 70% x i + 0.62 % 201
Slide 29: Autoroutes: current capex forecast
VINCI Autoroutes Current capex forecast (including Stimulus Plan signed in August 2015) 1000 ASF Group Cofiroute 900 800 700 600 500 In € millions 400 300 200 100 0 2015 2016e 2017e 2018e 2019e 29
Slide 30: Autoroutes - Stimulus Plan (2015)
VINCI Autoroutes - Stimulus Plan (2015) Main terms of the amendments to the concession contracts approved by decree of 21 August 2015, included in the MoU signed on 9 April 2015 with the Grantor 1. Stimulus Package (approved by the European Commission in 2014) CAPEX of €2 bn to be performed, compens
Slide 31: Stimulus package related projects
VINCI Autoroutes Stimulus package related projects 31
Slide 32: VINCI Airports
VINCI Ws VINCI * AIRPORTS
Slide 33: VINCI Airports, a key strategic focus for VINCI
VINCI Airports, a key strategic focus for VINCI 34 airports managed and > 115 million* passengers managed >100 Passenger traffic (in million pax.) 12 airports in France Excluding ADP 69 3 airports in Cambodia 10 airports in Portugal 47 43 1 airport in Chile 10 2 airports in Japan 6 airports in Domin
Slide 34: VINCI Airports portfolio
VINCI Airports VINCI AIRPORTS VINCI Country Name Description KPAX in 2015 End of concession Traffic risk Consolidation* share Phnom Penh Concession Cambodia Siem Reap Concession 6,470 2040 70% Yes FC Sihanoukville Concession Quimper Cornouaille DSP* 89 2016 100% Yes FC Poitiers-Biard DSP* 123 2019 1
Slide 35: Highways and other concessions
VINCI Highways and other concessions
Slide 36: VINCI Highways
VINCI Highways VINCI HIGHWAYS Country Type Name Description End of concession VINCI share Traffic risk Consolidation* Road Infrastructure Motorway A4 Horselberg 45 km 2037 50% yes EM Germany Motorway A9 Thuringia/Bavarian border 46.5 km 2031 50% no EM Motorway A5 Malsch–Offenburg 60 km 2039 54% yes
Slide 37: Highways and other concessions
VINCI Highways and other concessions End of VINCI Traffic Country Type Name Description Consolidation* concession share risk Bridges & Tunnels Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM France Tunnel Prado Sud Road tunnel, Marseille 2055 58.5% yes EM Netherlands Tunnel Coentunnel A
Slide 38: VINCI Railways and other concessions
VINCI Concessions VINCI RAILWAYS VINCI Traffic Country Type Name Description End of concession Consolidation* share risk Rail Rhônexpress 23 km light rail system, Lyon 2038 35% yes EM Rail GSM-Rail Ground-train communication system on 14,000 km of track 2025 30% no EM France Bus TCSP Martinique Oper
Slide 39: Contracting
VINCI Ws Contracting
Slide 40: Contracting Profile
Contracting Profile 2015 Key figures 2015 revenue by geographical area (in € millions) Revenue 32,570 Rest of World 3% Asia/Russia 4% France 17,187 Africa 5% International 15,382 France 53% Americas 7% EBIT 1,100 as % of revenue 3.4 % Rest of Europe 6% Net income 682 €32.6 bn Capital employed at 31
Slide 41: VINCI Energies
VINCI Energies 2015 Key figures 1,600 2015 revenue by geographical area Business Rest of the world 7% (in € millions) Units Africa 4% France 51% Revenue 10,180 Rest of Europe 9% France 5,178 Switzerland 4% International 5,002 Netherlands 3% €10.2 bn EBIT 568 Belgium 3% as % of revenue 5.6 % Net inco
Slide 42: Eurovia
Eurovia 2015 Key figures 400 2015 revenue by geographical area (in €millions) Business Rest of the Americas 7% Revenue 7,899 Units Canada 5% France 57% Rest of Europe 2% France 4,483 International 3,416 Central and Eastern Europe 12% EBIT 233 €7.9 bn as % of revenue 3.0 % UK 8% Net income 146 Net fi
Slide 43: VINCI Construction
VINCI Construction 2015 Key figures 1,100 2015 revenue by geographical area (in € millions) Business Rest of the world 5% Units Asia / Russia 7% Revenue 14,491 Africa 7% France 52% France 7,527 International 6,964 Americas 9% EBIT 299 €14.5 bn as % of revenue 2.1 % Rest of Europe 3% Net income 164 C
Slide 44: VINCI Immobilier
VINCI Ws VINCI Immobilier
Slide 45: VINCI Immobilier
VINCI Immobilier 2015 Key figures Presence in 2015 reservations by destination (€ in millions) 15 Managed revenue 826 French cities Social, Institutional Buy to let Consolidated revenue (100% in France) 707 private 34% 37% EBIT 56 Investors as % of revenue 7.9 % €0.7 bn Net income 41 Net financial d
Slide 46: H1 2016 Financial Data
VINCI Ws H1 2016 Financial Data
Slide 47: Consolidated revenue
Consolidated revenue Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 2,882 2,699 +6.8 % +5.8 % 5,804 VINCI Autoroutes 2,365 2,253 +4.9 % +4.9 % 4,871 VINCI Airports 455 384 +18.6 % +11.4 % 820 Other Concessions 62 62 +0.5 % +1.3 % 112 Contracting 14,695 15,244 -3.6 % -4.7
Slide 48: Consolidated revenue – France
Consolidated revenue – France Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 2,465 2,356 +4.6 % +4.6 % 5,053 VINCI Autoroutes 2,365 2,253 +4.9 % +4.9 % 4,871 VINCI Airports 64 59 +9.2 % +9.2 % 115 Other Concessions 36 44 -17,6 % -17,6 % 67 Contracting 7,830 8,318 -5.9 %
Slide 49: Consolidated revenue – international
Consolidated revenue – international Δ 16/15 € in millions 1H 2016 1H 2015 Actual Comparable FY 2015 Concessions 417 343 +21.6 % +13.7 % 751 VINCI Airports 391 325 +20.3 % +11.8 % 705 Other Concessions 26 18 +44.5 % +48.5 % 45 Contracting 6,866 6,926 -0.9 % -2,1 % 15,382 VINCI Energies 2,332 2,225 +
Slide 50: First half 2016 consolidated revenue
First half 2016 consolidated revenue (in € millions) Concessions Contracting +6.8 % -3.6 % 17,880 Organic Scope Organic Scope FX 17,619 +5.8 % +1.0 % -4.7 % +2.5 % -1.4 % Revenue change: -1.5 % Organic: -2.6 % Scope: +2.3 % FX: -1.2 % H1 2015 H1 2016 50
Slide 51: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of Δ 16/15 % of € in millions 1H 2016 1H 2015 FY 2015 revenue* revenue* €m % revenue* Concessions 1,361 47.2 % 1,186 44.0 % 175 +14.7 % 2,576 44.4 % VINCI Autoroutes 1,205 51.0 % 1,070 47.5 % 135 +12.7 % 2,350 48.2 % VINCI Airp
Slide 52: Income statement
Income statement (in € millions) 1H 2016 1H 2015 Δ 16/15 Operating income from ordinary activities (EBIT) 1,720 1,540 +11.7 % % of revenue 9.8% 8.6% - share-based payment expense (IFRS 2) (43) (36) - profit / loss of equity-accounted cos. & miscellaneous 25 82 Recurring operating income 1,702 1,586
Slide 53: ROI – Recurring operating income by business line
ROI – Recurring operating income by business line % of % of Δ 16/15 % of € in millions 1H 2016 1H 2015 FY 2015 revenue* revenue* €m % revenue* Concessions 1,389 48.2 % 1,216 45.1 % 173 +14.2 % 2,627 45.3 % VINCI Autoroutes 1,199 50.7 % 1,068 47.4 % 132 +12.3 % 2,341 48.1 % VINCI Airports 187 41.0 %
Slide 54: Financial income/(expense)
Financial income/(expense) € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Cost of net financial debt (262) (277) 15 (557) Other financial income and expenses (21) (4) -17 (24) Borrowing costs capitalised 18 11 8 23 Discounting retirement obligations and (26) (27) 1 (49) provisions Foreign exchange ga
Slide 55: EBITDA
EBITDA* % of Δ 16/15 % of € in millions 1H 2016 % of revenue* 1H 2015 FY 2015 revenue* €m % revenue* Concessions 2,019 70.1 % 1,879 69.6 % 140 +7.4 % 3,933 67.8 % VINCI Autoroutes 1,766 74.7 % 1,678 74.4 % 89 +5.3 % 3,522 72.3 % VINCI Airports 239 52.6 % 198 51.7 % 41 +20.7 % 412 50.2 % Other Conces
Slide 56: Operating investments, net
Operating investments, net € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Concessions 16 17 -0 29 VINCI Autoroutes 4 5 -1 10 VINCI Airports 6 5 1 3 Other Concessions 7 7 0 15 Contracting 331 310 21 713 VINCI Energies 48 44 4 121 Eurovia 127 97 30 226 VINCI Construction 156 169 -13 366 VINCI Immobilie
Slide 57: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 1H 2016 1H 2015 Δ 16/15 FY 2015 Concessions 419 385 +34 917 VINCI Autoroutes 359 307 +52 784 O/w : ASF 217 195 +22 398 Escota 55 51 +4 274 Cofiroute 62 60 +2 111 VINCI Airports 55 53 +2 109 Other Concessions 5 25 -20 24 Contracting 17 11 +5 (1
Slide 58: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions 1H 2016 1H 2015 FY 2015 EBITDA* 2,606 2,471 5,664 Change in WCR and current provisions (1,137) (831) 307 Income taxes paid (495) (465) (1,041) Net interest paid (331) (331) (534) Dividends received from companies accounted for 54 73 125 under the equity method
Slide 59: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 1H 2016 1H 2015 FY 2015 Free cash flow (after investments) (38) 247 2,995 Net financial investments and other cash flows (1,038) (161) (431) Cash flow before movements in share capital (1,075) 86 2,564 Share capital increases and other operations 321 311 (71)
Slide 60: Consolidated balance sheet
Consolidated balance sheet (in € millions) 30 June 2016 31 Dec. 2015 30 June 2015 Non-current assets – Concessions 28,493 27,559 27,470 Non-current assets – Contracting and other 9,025 9,121 8,983 WCR, provisions and other current assets & liabilities (5,388) (6,548) (5,251) Capital employed 32,130
Slide 61: Net financial debt by business line
Net financial debt by business line (in € millions) 30 June 2016 31 Dec. 2015 Δ 16/15 30 June 2015 Concessions (23,884) (23,551) -333 (19,777) VINCI Autoroutes (19,643) (20,247) +605 (16,738) VINCI Airports (3,826) (2,812) -1,014 (2,901) Other Concessions (415) (492) +77 (138) Contracting (94) 1,034
Slide 62: Change in net financial debt during the first half of 2016
Change in net financial debt during the first half of 2016 (in € billions) Share buy-backs Capital increases (0.3) 0.3 (14.4) Interest & taxes Investments (12.4) EBITDA 2.6 paid (0.7) Δ WCR (0.8) (1.1) misc. Acquisitions/ Dividends (0.1) Disposals (0.7) (1.0) Free cash flow: €(38) m H1 2015: €247 m
Slide 63: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt (€17.1 bn) at end June 2016: 4.5 years (Concessions: 4.9 years) Repayment schedule at end June 2016 3 000 2 500 2 000 1 500 1 000 500 0 S2 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 > 2032
Slide 64: IR Contacts and Agenda
IR Contacts and Agenda CONTACT AGENDA Arnaud Palliez Arnaud.palliez@vinci.com 8 November 2016 Tel: +33 1 47 16 45 07 Interim dividend ex-date 10 November 2016 Alexandra Bournazel Interim dividend payment date Alexandra.bournazel@vinci.com 2 December 2016 Tel: +33 1 47 16 33 46 Investor Day VINCI Ene