Vinci Sa · EURONEXT:DG
Vinci Sa — H1 2015 Earnings Presentation
67 slides from Vinci Sa's earnings presentation, Jul 31, 2015
Slide 1: 2015 first half results
2015 first half results 31 July 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: VINCI Airports operating 24 airports
VINCI Airports is operating 24 airports in Portugal, France, Cambodia and won a new 25-year concession for Toulon Hyères since April 2015. Together, these handle a total of more than 47 million passengers a year. Nuevo Pudahuel Airport (project) – Santiago de Chile
Slide 4: VINCI Autoroutes operates half of France's motorways
With a 4,386 km network, VINCI Autoroutes operates half of France’s motorways under concession and has invested around €9 bn in the construction, widening and improvement of its infrastructure since 2006. The works on the A9 duplication near Montpellier should be completed by 2017.
Slide 5: Ohio East End Crossing
VINCI Concessions and VINCI Construction are working together on the Ohio East End Crossing. This PPP includes the construction of a 765 metre cable-stayed bridge, with works scheduled for completion in autumn 2016. 5
Slide 6: VINCI Energies network of 1,500 business units
VINCI Energies, with its exceptionally dense network of 1,500 business units in more than 50 countries, combines global reach with local service. An automation training center of VINCI Energies at Acta in Antwerp, Belgium.
Slide 7: Eurovia Northwest Corridor project in Atlanta
Eurovia is working on the Northwest Corridor project in Atlanta, which is scheduled to open in 2018. The design- build project involves the construction of reversible express lanes along a 48 km stretch and the construction of 39 bridges. 7
Slide 8: VINCI Construction Yamal LNG storage tanks
VINCI Construction is working on the construction of four liquefied natural gas storage tanks, in the Ob estuary, some 400 km inside the Arctic Circle, on behalf of the Yamal LNG consortium. 8
Slide 9: 2015 first half highlights
2015 first half highlights Xavier Huillard, Chairman and CEO
Slide 10: A solid economic performance on a global scale
A solid economic performance on a global scale Good resilience of Group revenue -1.8% * Improvement of Group EBIT margin 8.6% +40bp * Increase of Group net income +6.3% ** Concessions Dynamic toll road traffic +2.7% Strong airport passenger traffic +11.7% Contracting Order intake in 1H 2015 €15.3 bn
Slide 11: Concessions overview in 1H 2015
Concessions overview in 1H 2015 Revenue: €2.7 bn (+3.8% lfl) EBITDA: €1.9 bn (+7.6% *) 1H 2015 vs 1H 2014 1H 2015 vs 1H 2014 Revenue €2.3 bn +2.9% lfl Revenue €0.4 bn +11.3% lfl EBITDA €1.7 bn +4.1% EBITDA €0.2 bn +32.7% EBITDA Margin 74.3% +80 bp EBITDA Margin 51.7% +780 bp Traffic Passenger Change
Slide 12: VINCI Autoroutes traffic
VINCI Autoroutes Change in traffic over 12 trailing months (number of km travelled) Change since Q4 2007 as of Q2 2015 115 Light vehicles 110 +9.7% Total traffic 105 +7.0% 100 95 Heavy vehicles -7.9% 90 85 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1
Slide 13: VINCI Autoroutes stimulus package
VINCI Autoroutes The amendments to the original concession contracts based on the terms of the MoU signed on 9 April 2015 are currently awaiting validation by the French High Court Stimulus Package (approved by the European Commission in 2014) CAPEX of €2bn to be performed, compensated by an extensi
Slide 14: Contracting overview in 1H 2015
Contracting overview in 1H 2015 Revenue: €15.2 bn (-2.4%) EBIT: €0.3 bn (-14.6%) Revenue €4.8 bn +10.1% Revenue €3.4 bn -5.4% Revenue €7.0 bn -8.1% International France International 40% France International 47% 53% France 46% +27.2% 54% -1.4% +4.6% 60% -11.1% -0.9% -13.8% EBIT €260m +13.2% EBIT € (
Slide 15: Contracting - Tours–Bordeaux HSL
Contracting - Tours–Bordeaux HSL SEA construction reaching 85% completion ahead of the schedule 2011 €0.2 bn 2012 €0.6 bn Achieved 2013 €1.3 bn 2014 €1.1 bn 1H 2015 ~ €0.6 bn Forecast 2015 > 2016 ~ €0.4 bn All Group’s expertise employed Completion of earthworks and civil engineering works for the 34
Slide 16: First half 2015 revenue by geographical area
First half 2015 revenue by geographical area Contraction in France, sharp decline in Africa, growth everywhere else France -9% 59% Central & Eastern Europe +1% Western 4% Europe +7% (excl. France) 21% Asia/Middle East/Oceania +21% Americas +37% 6% 6% Africa -27% 4% +X% 1H 2015 / 1H 2014 change X% Co
Slide 17: Contracting order intake
Contracting order intake Increase of the order intake in Q2 2015 after a contraction in Q1 2015 Quarterly breakdown by geographical area Half-year breakdown by business line Δ∆ 15/14 June 8.7 -11% +8% 15.7 7.6 15.3 7.7 -2.5% -2.5% 7.0 -12% +9% +23% International +17% +9% +6% -15% +3% -20% France -11
Slide 18: 2015 first half financial data
2015 first half financial data Christian Labeyrie, Executive Vice-President and CFO
Slide 19: 2015 first half consolidated revenue
2015 first half consolidated revenue (in € millions) Concessions Contracting -5.4% -2.4% 18,464 Organic Scope & FX Organic Scope & FX 17,880 3.8% -9.2% -8.3% 5.9% Revenue change: -1.8% excl. VINCI Park -3.2% actual Organic: -6.7% Scope: + 1.2% FX: + 2.3% 1H 2014 1H 2015 19
Slide 20: Recurring operating income (ROI)
Recurring operating income (ROI) Group ROI: €1,586m +6.3% * Of which EBIT: €1,540m +2.9% * EBIT Margin: 8.6% +40 bp * Concessions Contracting ROI: €1,216m +10.7% * ROI: €327m -11.0% EBIT Margin: 44.0% +120 bp * EBIT Margin: 2.1% -30 bp VINCI VINCI VINCI VINCI Eurovia Autoroutes Airports Energies Con
Slide 21: Income statement
Income statement (in € millions) 1H 2015 1H 2014 Δ∆ 15/14 Δ∆ 15/14 excl. VINCI Park Operating income from ordinary activities (EBIT) 1,540 1,582 (2.7%) +2.9% % of revenue 8.6% 8.6% +40 bp - share-based payment expense (IFRS 2) (36) (42) - operating income of equity-accounted cos. & other 82 37 Recur
Slide 22: Change in net financial debt during the first half of 2015
Change in net financial debt during the first half of 2015 (in € billions) Capital Share buy-backs increases & (0.5) misc. (13.9) (13.3) 0.6 EBITDA 2.5 Investments (0.7) Dividends Interest & Acquisitions/ (0.7) Δ∆ WCR taxes paid Disposals (0.8) (0.7) (0.2) Free cash flow: €0.2 bn 1H 2014: €(0.5) bn
Slide 23: Consolidated balance sheet
Consolidated balance sheet (in € millions) 30 June 2015 31 Dec. 2014 30 June 2014 Non-current assets – concessions 27,470 27,691 27,892 Non-current assets – contracting and other 8,983 8,838 8,317 WCR, provisions and other current assets & (5,251) (5,962) (4,762) liabilities Capital employed 31,202
Slide 24: Financial policy
Financial policy Optimise average gross financial Anti-dilution strategy debt maturity 2015-2021 maturity schedule (in € bn): 2.6 €466m share buy-backs in 1H 2015 1.9 2.1 (8.8 mn shares) 1.6 1.6 1.1 1.5 TSS Treasury stock : 42.2m shares as at 30 June 2015 2H (7.1% of capital) 2015 2016 2017 2018 201
Slide 25: Outlook and strategy
Outlook and strategy Xavier Huillard, Chairman and CEO
Slide 26: Contracting order book
Contracting order book Stable order book between 30 June 2015 and 30 June 2014 * Breakdown by geographical area Breakdown by business line Δ∆ 15/14 June Δ∆ 15/14 June Actual Excl. SEA Actual Excl. SEA 29.6 28.7 -2.8% stable 29.6 28.7 -2.8% stable 27.9 27.9 6.8 +2% +3% 6.6 6.3 16.0 14.0 13.9 -13% -8%
Slide 27: 2015 outlook
2015 outlook Concessions An increase in Concessions revenue*, including upwards adjustment of traffic growth: now expected to be Slight decline equivalent to that achieved in 2014 for both VINCI (actual) Autoroutes (>2%) and VINCI Airports (almost 9%). Revenue Overall evolution in Contracting revenu
Slide 28: 2015 interim dividend
Dividend 2015 interim dividend Interim dividend (all-cash) per share: €0.57 Compared to €0.55* as of 1H 2014 § Ex-date: 10 November 2015 § Payment date: 12 November 2015 * excluding exceptional dividend of €0.45 28
Slide 29: VINCI's strategic priorities for sustainable, profitable growth
VINCI’s strategic priorities for sustainable, profitable growth VINCI Airports ü Take advantage of ü Develop synergies worldwide air traffic Extract more growth ü Restructure under- value Special focus performing country- from our on growth ü Seek out greenfield and business current activities b
Slide 30: Thank you for your attention
Thank you for your attention
Slide 31: Appendixes
Appendixes Structure and shareholder base Business line profiles Financial data
Slide 32: Structure and shareholder base
Structure and shareholder base
Slide 33: 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 34: Shareholder base at 30 June 2015
Shareholder base at 30 June 2015 France United Kingdom 8.3% 14.9% Individual Investors 8.7% Institutional 17.1% Rest of Europe Employees Investors 9.8% 69.1 % 5.3% Qatar Holding LLC United States 21.0% 7.1% 7.8% Treasury Shares Rest of World Over 500 institutional investors Approximately 185,000 ind
Slide 35: Business line profiles
VINCI “ Business line profiles
Slide 36: Concessions
VINCI “ Concessions
Slide 37: Concessions Profile
Concessions Profile 2014 Key figures 2014 revenue by geographical area Revenue 5,823 Portugal 9% France 5,101 RoW 4% France 87% International 722 EBITDA 3,823 as % of revenue 65.6% €5.8 bn Net income 1,779* Capital employed 26,474 Free Cash Flow 1,597 OTHER CONCESSIONS Toll Road operator in France R
Slide 38: VINCI Autoroutes
VINCI “ VINCI ws AUTOROUTES
Slide 39: VINCI Autoroutes
VINCI Autoroutes Europe’s leading Toll Road concession operator 4,386 km under concession 2014 Key figures (€ in millions) approx. 50% Revenue EBITDA 4,743 3,389 of conceded French toll roads as % of revenue 71.4% Net income 916 Capital employed 22,049 Free Cash Flow 1,467 >35% Headcount at 31 Decem
Slide 40: VINCI Concessions
VINCI “ VINCI “ CONCESSIONS
Slide 41: VINCI Airports
VINCI Airports A key strategic focus for VINCI 23 airports managed * A fast-growing, profitable business Revenue (in €m) 10 France 629 717 6.0 million pax 10 Portugal 3 35.1 million pax Cambodia 170 5.7 million pax 2012 2013 PROFORMA 2014 Acquisition of 46.8 million 48% passengers in 2014 Ebitda mar
Slide 42: VINCI Airports revenue breakdown by activity
VINCI Airports VINCI Airports revenue breakdown by activity (2014): 4 1 Aviation Q Most of revenues are regulated: passenger & landing 1 Security/PRM fees 13% Aviation Drivers: passenger traffic, ATMs*, regulatory framework 46% Ground Handling 3 2 Non-Aviation 15% Q Retail, real estate, car parks,
Slide 43: VINCI Airports
VINCI Airports End of VINCI Traffic Consoli- Country Name Description concession share risk dation* VINCI Airports Cambodia Phnom Penh Concession 2014: Siem Reap Concession 2040 70 % Yes FC 5,728 KPAX Sihanoukville Concession France Quimper Cornouaille DSP (2014: 100 KPAX) 2016 100% Yes FC Poitiers-
Slide 44: Other infrastructures conceded or operated in PPPs
Other infrastructures conceded or operated in PPPs End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Road infrastructure Germany Motorway A4 Horselberg 45 km 2037 50% yes EM Germany Motorway A9 Thuringia/ Bavarian 46.5 km 2031 50% no EM border Germany Motorway
Slide 45: Other infrastructures conceded or operated in PPPs
Other infrastructures conceded or operated in PPPs End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Bridges and tunnels France Tunnel Prado Carénage Road tunnel, Marseille 2025 33% yes EM France Tunnel Prado Sud Road tunnel, Marseille 2055 58.5% yes EM 2.9 km
Slide 46: Other infrastructures conceded or operated in PPPs
Other infrastructures conceded or operated in PPPs End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Stadiums and public equipment France Stadium Stade de France 80,000 seats, Paris 2025 67% yes FC France Stadium MMArena 25,000 seats, Le Mans 2043 100% yes FC
Slide 47: Conceded or PPP infrastructure under construction
Conceded or PPP infrastructure under construction End of VINCI Traffic Consoli- Country Type Name Description concession share risk dation* Ground-train communication France Rail GSM-Rail system on 14,000 km of 2025 30% no EM track Operation and maintenance Bus TCSP Martinique 2035 100% no FC of bus
Slide 48: Contracting
VINCI “ Contracting
Slide 49: Contracting Profile
Contracting Profile 2014 Key figures 2014 revenue by geographical area Revenue 32,916 Germany 8% France 18,842 UK 8% Central and Eastern France 57% International 14,074 European 5% EBIT 1,148 RoE 6% as % of revenue 3.5% €32.9 bn Africa 5% Net income 588 Net financial surplus 1,606 Americas 6% RoW 5%
Slide 50: VINCI Energies
VINCI Energies 2014 Key figures 1,500 2014 revenue by geographical area (€ in millions) Business Units Germany 18% Revenue 9,309 France 5,258 France 56% Switzerland 4% International 4,051 Belgium 3% EBIT 519 Netherlands 3% €9.3 bn as % of revenue 5.6% Rest of Europe 8% Net income 330 Africa 3% Net f
Slide 51: Eurovia
Eurovia 2014 Key figures 400 2014 revenue by geographical area Business (€ in millions) Germany 9% Units Revenue 8,188 UK 7% France 60% France 4,886 Central and Eastern International 3,302 Europe 10% EBIT 249 Rest of Europe 2% €8.2 bn as % of revenue 3.0% Canada 6% Net income 73 Rest of the Americas
Slide 52: VINCI Construction
VINCI Construction 2014 revenue 2014 Key figures 1,000 by geographical area (€ in millions) Business UK 11% Units Central and Eastern Revenue 15,419 Europe 5% France 8,698 Rest of Europe 3% France 56% International 6,721 Africa 9% EBIT 380 €15.4 bn as % of revenue 2.5% Americas 6% Net income 186 Net
Slide 53: Detailed consolidated financial statements
Detailed consolidated financial statements
Slide 54: Consolidated revenue
Consolidated revenue Δ∆ 15/14 € in millions 1H 2015 1H 2014 Actual Comparable FY 2014 Concessions 2,699 2,594 4.0% 3.8% 5,564 VINCI Autoroutes 2,258 2,194 3.0% 2.9% 4,743 VINCI Airports 384 340 12.7% 11.3% 717 Other Concessions 57 60 (6.2%) (8.1%) 104 Contracting 15,244 15,620 (2.4%) (8.3%) 32,916 V
Slide 55: Consolidated revenue – France
Consolidated revenue – France Δ∆ 15/14 € in millions 1H 2015 1H 2014 Actual Comparable FY 2014 Concessions 2,356 2,296 2.6% 2.6% 4,921 VINCI Autoroutes 2,254 2,190 2.9% 2.9% 4,736 VINCI Airports 59 56 4.8% 4.8% 105 Other Concessions 44 50 (12.8%) (12.8%) 81 Contracting 8,319 9,202 (9.6%) (9.8%) 18,8
Slide 56: Consolidated revenue – international
Consolidated revenue – international Δ∆ 15/14 € in millions 1H 2015 1H 2014 Actual Comparable FY 2014 Concessions 343 299 14.9% 12.6% 643 VINCI Autoroutes 5 4 32.2% 13.9% 8 VINCI Airports 325 284 14.3% 12.5% 612 Other Concessions 13 10 26.2% 12.7% 23 Contracting 6,925 6,418 7.9% (6.4%) 14,074 VINCI
Slide 57: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of % of € in millions 1H 2015 1H 2014 Δ∆ 15/14 FY 2014 revenue* revenue* revenue* Concessions 1,186 44.0% 1,110 42.8% 6.9% 2,342 42.1% VINCI Autoroutes 1,071 47.4% 994 45.3% 7.7% 2,148 45.3% VINCI Airports 138 35.9% 112 32.8% 2
Slide 58: ROI – Recurring operating income by business line
ROI – Recurring operating income by business line % of % of % of € in millions 1H 2015 1H 2014 Δ∆ 15/14 FY 2014 revenue* revenue* revenue* Concessions 1,216 45.1% 1,099 42.4% 10.7% 2,352 42.3% VINCI Autoroutes 1,068 47.3% 991 45.2% 7.8% 2,136 45.0% VINCI Airports 151 39.3% 120 35.3% 25.5% 254 35.4%
Slide 59: Financial income/(expense)
Financial income/(expense) € in millions 1H 2015 1H 2014 Δ∆ 15/14 FY 2014 Cost of net financial debt (277) (304) 27 (616) Other financial income and expenses (4) (23) 19 (61) Borrowing costs capitalised 11 8 2 17 Liability discount cost (27) (32) 4 (80) Foreign exchange gains and losses 13 0 13 2 Fi
Slide 60: EBITDA
EBITDA* % of % of % of € in millions 1H 2015 1H 2014 Δ∆ 15/14 FY 2014 revenue* revenue* revenue* Concessions 1,879 69.6% 1,746 67.3% 7.6% 3,730 67.0% VINCI Autoroutes 1,679 74.3% 1,612 73.5% 4.1% 3,389 71.4% VINCI Airports 198 51.7% 149 43.9% 32.7% 342 47.7% Other Concessions 3 4.6% (16) (25.8%) (1)
Slide 61: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions 1H 2015 1H 2014 FY 2014 EBITDA* 2,471 2,429 5,561 Change in WCR and current provisions (831) (1,250) (158) Income taxes paid (465) (696) (1,282) Net interest paid (331) (348) (586) Dividends received from companies 73 50 99 accounted for under the equity metho
Slide 62: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 1H 2015 1H 2014 FY 2014 Free cash flow (after investments) 247 (469) 2,197 Net financial investments and other cash flows (161) 774* 317 Cash flow before movements in share capital 86 305 2,515 Share capital increases and other operations 312 345 441 Dividends
Slide 63: Operating investments, net
Operating investments, net € in millions Δ∆ 15/14 1H 2015 1H 2014 FY 2014 Concessions 17 27 (11) 63 VINCI Autoroutes 5 6 (1) 12 VINCI Airports 5 3 1 28 VINCI Park 0 17 (17) 17 Other Concessions 7 1 6 6 Contracting 310 296 14 680 VINCI Energies 44 48 (4) 108 Eurovia 97 93 4 218 VINCI Construction 169
Slide 64: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 1H 2015 1H 2014 Δ∆ 15/14 FY 2014 Concessions 385 385 0 806 VINCI Autoroutes 307 321 (14) 684 O/w : ASF / Escota 246 257 (11) 553 Cofiroute 61 64 (3) 130 VINCI Airports 53 31 22 59 VINCI Park 0 22 (22) 22 Other Concessions 25 11 14 41 Contracti
Slide 65: Net financial debt by business line
Net financial debt by business line (in € millions) 30/06/15 31/12/14 Δ∆ 15/14 30/06/14 Concessions (19,777) (19,920) 142 (19,492) VINCI Autoroutes (16,737) (16,812) 75 (17,609) Autres Concessions (3,040) (3,107) 68 (1,882) Contracting 635 1,606 (971) 531 Holding cos & VINCI Immobilier 5,267 5,033 2
Slide 66: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt at end June 2015: 4.9 years (Concessions: 5.3 years) Repayment schedule 3 000 at end June 2015 2 500 2 000 1 500 1 000 500 0 S2 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ASF Cofiroute TSS Arcou
Slide 67: IR Contacts and Agenda
IR Contacts and Agenda CONTACT AGENDA 22 October 2015 3rd quarter 2015 information press release Alexandra Bournazel 10 November 2015 Alexandra.bournazel@vinci.com Interim dividend ex-date Tel: +33 1 47 16 33 46 12 November 2015 Interim dividend payment date 67