Vinci SA · EURONEXT:DG
Vinci SA — FY2010 Earnings Presentation
68 slides from Vinci SA's earnings presentation, Mar 2, 2011
Slide 1: 2010 annual results
2010 annual results Analysts meeting, 2 March 2011
Slide 2: 2010 highlights
2010 highlights Xavier Huillard, Chairman and CEO
Slide 3: 2010 highlights
2010 highlights Return to growth Improvement of financial results Revenue: +9% Operating profit from ordinary activities: +11% Net profit: +11% External growth Cegelec, Faceo, Tarmac Full year additional revenue: :3.7 billion Order intake: + 8% Good cash flow generation Debt well under control 3
Slide 4: Growth in revenue and profit
Growth in revenue and profit 2009 2010 (in : millions) Δ 10/09 restated actual Revenue* 30,741 33,376 +8.6% Cash flow from operations (EBITDA) 4,771 5,052 +5.9% % of revenue* 15.5% 15.1% Operating profit from ordinary activities 3,100 3,434 +10.8% % of revenue* 10.1% 10.3% Net profit attributable to
Slide 5: Improved operating margins
Improved operating margins VINCI Autoroutes Contracting Cash flow*/revenue: Operating profit**/revenue: 68.8% vs. 68.5% in 2009 4.5% vs. 4.3% in 2009 Energies Eurovia Construction 4.5% 68.8% 4.1% 68.5% 5.4% 3.9% 3.6% 5.5% 2,807 2,929 266 387 309 285 532 584 2009 2010 2009 2010 2009 2010 2009 2010 as
Slide 6: 2010: major external growth operations
2010: major external growth operations :2.4 billion invested (enterprise value), of which :1.4 billion paid in VINCI shares (Cegelec) Additional full-year revenue: about :3.7 billion, of which 45% generated outside France With VINCI Energies, creation of European leader for energy services FY 2010 r
Slide 7: Steady commercial activity: Concessions
Steady commercial activity Concessions GSM-Rail Airports: Rennes-Dinard, Notre Dame des Landes (Nantes)* Nice Stadium* South Europe Atlantic high-speed rail line* Moscow–St. Petersburg motorway* Total project value > :10 billion VINCI’s share of equity about :500 million VINCI’s share of works about
Slide 8: Steady commercial activity: Contracting
Steady commercial activity Contracting High level of new orders (: 28.5 billion): +8%* Large number of successes in major international projects: Papua New Guinea: 450 km pipeline United Kingdom: refurbishment of tube stations in London Hong Kong: special foundations for express rail link United Sta
Slide 9: 2010 financial statements
2010 financial statements Christian Labeyrie, Executive Vice-President and CFO
Slide 10: Growth in revenue: +8.6%
Growth in revenue: +8.6% +8.6% +2,635 m€ 33,376 30,741 Exchange rate effects Organic growth External growth +€407 million -€272 million +€2,500 million 2009 2010 Exchange rates and 10/09 change Organic growth External growth Change misc. Concessions +3.6% +0.5% +0.2% +4.3% Contracting -1.7% +9.6% +1
Slide 11: 37% of 2010 revenue generated outside France
37% of 2010 revenue generated outside France (€ 12.5 billion) 2010 Δ 10/09 2010 revenue by geographical area at constant (in :m) actual exchange rates France 20,922 6.7% 6.7% Central and Eastern Europe Central and Eastern Europe 2,283 9.4% 4.4% United Kingdom United Kingdom 1,864 -8.8% -12.1% 6.8%5.
Slide 12: Improvement in operating margins
Improvement in operating margins Concessions Contracting Total VINCI Group Op. profit/ 39.6% 41.1% 4.3% 4.5% 10.1% 10.3% revenue +10.8% +8.1% 3,434 3,100 2,094 1,937 171 +13.5% VINCI 144 Concessions 1,257 VINCI 1,107 Autoroutes 1,793 1,923 387 Energies 266 309 285 Eurovia 532 584 Construction 2009 2
Slide 13: Income statement
Income statement 2009 2009 2010 (in : millions) Δ 10/09 published restated actual Revenue 31,928 30,741 33,376 8.6% Operating profit from ordinary activities 3,192 3,100 3,434 10.8% % of revenue 10.0% 10.1% 10.3% Operating profit 3,145 3,110 3,429 10.2% Financial income/(expense) (702) (680) (681) -
Slide 14: Net financial income/(expense)
Net financial income/(expense) 2009 2009 2010 (in : millions) Δ 10/09 published restated actual Cost of net financial debt (743) (714) (636) 78 Concessions (690) (677) (640) 37 of which VINCI Autoroutes (629) (629) (599) 30 Contracting 7 23 11 (12) Holding companies and other. (60) (60) (7) 54 Other
Slide 15: Growth in cash flow from operations (EBITDA)
Growth in cash flow from operations (EBITDA) Concessions Contracting Total VINCI Group EBITDA/ 63.2% 62.7% 6.0% 6.3% 15.5% 15.1% revenue +5.9% +3.5% 5,052 4,771 3,197 3,089 +14.6% VINCI 282 268 Concessions 1,766 VINCI 1,541 2,807 2,929 Autoroutes 416 Energies 294 498 470 Eurovia 749 880 Construction
Slide 16: Change in net financial debt in 2010
Change in net financial debt in 2010 (in € billions) Unchanged over 12 months Development CAPEX Capital Concessions: -0.9 increase & EBITDA** other* Financial: -2.4* (13.1) +5.1 +1.5 (13.1) Interest and taxes paid Dividends -1.6 -1.0 Δ WCR -0.1 Operating CAPEX -0.6 Operation Investments Financial +:
Slide 17: Balance sheet strengthened
Balance sheet strengthened 31 Dec. ‘09 31 Dec. ‘09 31 Dec. ‘10 (in € millions) published restated EQUITY & LIABILITIES 10,440 10,467 13,025 Equity 1,401 1,443 1,729 Non-current provisions and other long-term liabilities 19,706 19,017 18,669 Borrowings (A) WCR and current provisions 6,248 5,936 6,453
Slide 18: Net financial debt by entity
Net financial debt by entity 2009 Debt/cash 2010 Debt/cash (in : millions) Δ 10/09 restated flow* actual flow* Concessions (15,688) 5.1 x (15,599) 4.9 x 89 VINCI Autoroutes (14,029) 5.0 x (13,965) 4.8 x 64 VINCI Park (819) 4.1 x (787) 4.4 x 32 Other concessions (351) 4.3 x (408) 4.2 x (57) Concessio
Slide 19: 2010 management and financial policy
2010 management and financial policy Good access to financing: ASF: :650 million 10-year bond issue (coupon: 4.125%) Project financing concluded: :650 million (GSM-Rail, Nice Stadium) with maturity between 14 and 30 years Very high level of liquidity maintained: :12.6 billion at 31 December 2010 Net
Slide 20: 2010 management and financial policy
2010 management and financial policy Optimisation of cost of financing within framework of prudent financial management Average cost of long-term debt: 3.71% at 31 December 2010 (3.94% at 31 December 2009 ) 66% of gross long-term debt is at fixed or capped/inflation rates (> 90% of net debt) 2011 ob
Slide 21: VINCI's business lines: highlights and outlook
VINCI’s business lines: highlights and outlook Xavier Huillard, Chairman and CEO
Slide 22: VINCI Autoroutes: 2010 growth in revenue
VINCI Autoroutes 2010 growth in revenue: 4.0% Change in traffic on a stable network: +2.0% ) New sections (A86 Duplex & Arcour): +0.4% ) Revenue: +4.0% Toll price effects and miscellaneous: +1.6% ) Traffic growth on a stable network (number of km travelled over 12 rolling months) Base 100: Q4 2007
Slide 23: VINCI Autoroutes: improved margins and contractual momentum
VINCI Autoroutes Improved margins and good contractual momentum Improvement in EBITDA* margin: 68.8% of revenue % of % of (in : millions) 2009 2010 Δ 10/09 revenue revenue Cash flow (EBITDA)* 2,807 68.5% 2,929 68.8% +4.4% of which ASF/Escota 1,997 67.3% 2,102 68.4% +5.3% Cofiroute 800 72.0% 807 70.2
Slide 24: VINCI Autoroutes 2011 outlook
VINCI Autoroutes 2011 outlook Toll increases applied on 1 February 2011 In line with contractual terms and conditions 100% compensation, spread over 2011 and 2012, of the increase in infrastructure tax (taxe d’aménagement du territoire) Estimated average contractual increase: 2.4% (light vehicles)
Slide 25: VINCI Concessions: pipeline of new projects
VINCI Concessions Significant pipeline of new projects under study In VINCI’s established areas of operation France: Nîmes–Montpellier rail bypass, L2 road bypass in Marseilles, stadiums, administrative buildings Germany: motorways United Kingdom: road PFIs In new markets India United States Targete
Slide 26: Contracting: diversified and resilient business lines
Contracting: diversified and resilient business lines Energies business line: Significant organic and external growth potential Strong operating margin resilience/potential for improvement Strengthening of recurring business: PPPs, facilities management, services Eurovia: good adjustment to new mark
Slide 27: Order book at 31 December 2010
Order book at 31 December 2010 Good visibility for 2011 France/International By business line Δ 10/09 Δ 10/09 Months of average +15% +15% business 25.9* 25.9* activity 22.6 22.6 6.3 +108% 9 12.6 +7% 3.0 11.7 5.7 5.2 -10% 8 10.9 13.3 +23% 13.9 14.5 +4% 13 France International Energies Eurovia Constru
Slide 28: Outlook
Outlook Xavier Huillard, Chairman and CEO
Slide 29: 2011 outlook
2011 outlook Growth in revenue of at least 5% VINCI Autoroutes: about 4% Contracting: Full-year effect of 2010 acquisitions Start-up of works on new concession projects Improvement in energies and construction markets, in particular in France Further improvement of results VINCI Autoroutes: further
Slide 30: Proposed dividend in respect of 2010
Proposed dividend in respect of 2010: €1.67 per share, up 3.1% Final dividend of :1.15 per share following payment of interim dividend of :0.52 on 16 December Ex-dividend date: 6 June 2011 Payment date (cash only): 9 June 2011 EPS Dividend Cagr 06-10: +4.5% Cagr 06-10: +6.0% 3.30 3.21 3.30 2.78 3.02
Slide 31: Strategy: growth and resilience
Strategy: growth and resilience Pursue international growth, especially outside Europe Strengthen synergies between the Group’s business lines Capacity to respond to bigger and more complex projects Broaden the value creation chain: from design to maintenance Enhancement of high technical value know
Slide 32: Powerful vectors for growth
Powerful vectors for growth VINCI has a solid position in markets with high growth over the medium and long term in both mature and emerging economies Urban development Mobility Energy efficiency and environmental issues 32
Slide 33: A model for social responsibility
A model for social responsibility Total workforce at 31 December 2010: 180,000 employees 2010 achievements 2011 commitments 16,800 people hired on permanent contracts (+28%) Continue to create permanent jobs and Employment of which more than 7,000 in France set in place social integration actions Tr
Slide 34: 2010 Photo Album
2010 Photo Album 34
Slide 35: Appendixes
Appendixes Shareholder base at 31 December 2010 Additional data by business line Detailed consolidated financial statements
Slide 36: Shareholder base at 31 December 2010
Shareholder base at 31 December 2010 31 Dec. 31 Dec. 2009 2010 3.5% 9.1% 12.0% Institutional investors 70.4% 67.4% France 29.0% 23.9% 9.0% Rest of Europe (excl. France and UK) 17.7% 18.4% 12.5% North America 12.1% 12.5% United Kingdom 8.2% 9.1% 5.7% Rest of world 3.4% 3.5% 3.8% Individual shareholde
Slide 37: Appendixes: Concessions
VINCI “? Appendixes: Concessions
Slide 38: VINCI Autoroutes: resilience and visibility
VINCI Autoroutes: resilience and visibility Europe’s biggest motorway network 4,385 km under concession of which 4,310 km in service A86 ASF Escota Cofiroute* Arcour Duplex Network under 2,714 459 1,100 101 11 concession (km) % held by VINCI 100% 99% 83% 100% 83% No. of km in service 2,639 459 1,100
Slide 39: VINCI Autoroutes: key figures
VINCI Autoroutes: key figures Total (in : millions) 2009 ASF/Escota Cofiroute Arcour 2010 Revenue 4,095 3,074 1,150 35 4,259 Cash flow from operations before cost 2,807 2,102 807 22 2,929 of financing and tax (EBITDA) as a % of revenue 68.5% 68.4% 70.2% 62.2% 68.8% Operating profit from ordinary 1,7
Slide 40: VINCI Autoroutes: contractual framework of toll increases
VINCI Autoroutes: contractual framework of toll increases ASF Escota Cofiroute* Arcour End of concession 2033 2027 2031 2070 Minimum annual toll increase until the end of the concession: 70% * CPI Current master plan 2007-2011 2007-2011 2011-2014 N/A - 2011 85% x CPI + 1.175% 85% x CPI + 1.2% 85% x
Slide 41: Duplex A86
Duplex A86 Total investment: : 2.2 billion Concession end: 31 December 2086 Start date 1st section Rueil-A13 (VL1): 1 July 2009 2nd section A13-Vélizy: 9 January 2011 Concession holder retains tariff adjustment flexibility Adjustment in relation to hour and day of the week (232 hourly possibilities)
Slide 42: VINCI Park: 2010 key figures
VINCI Park: 2010 key figures Key figures (: millions) 2009 2010 Δ 10/09 1,391,000 spaces managed in 12 countries*, Revenue 576 596 +3,5% of which: - France 413 416 +0.8% 383,000 under concession or freehold (+2% vs - International 163 180 +10.5% Dec. ‘09) and 1,008,000 under service contracts Operat
Slide 43: LISEA: South Europe Atlantic high-speed line
LISEA: South Europe Atlantic high-speed line The biggest transport infrastructure project HSR ever awarded as a concession in Europe Existing lines Motorways Estimated total value: >:7 billion Kilometer 303 km of new high-speed rail line 1,300 km of tracks and 1 million sleepers 46 millions m3 of sp
Slide 44: Appendixes: Contracting
VINCI “? Appendixes: Contracting
Slide 45: Contracting: improvement in operating margins
Contracting Improvement in operating margins from 4.3% to 4.5% Revenue: +9.4% Organic growth resumed in the 3rd quarter 2010 Strong impact of external growth (:2.4 billion) Operating margins Improvement in construction Very good resilience in the energy business line Slight decline in Eurovia Revenu
Slide 46: Energies: solid growth potential
Energies: solid growth potential Successful and rapid integration of Cegelec and Faceo Creation of VINCI Facilities (full-year revenue: :1.2 billion) Growing needs for energy and communication infrastructure Geographical diversification outside Europe Strong resilience of operating margins/potential
Slide 47: Eurovia: adjustment and control
Eurovia: adjustment and control Revenue: Unfavourable impact of weather conditions at the beginning and end of 2010 France: growth in rail business (light rail, etc.) International: steady business in Slovakia and Poland Limited decline in operating margins: -30 bp to 3.6% Adjustment of structures t
Slide 48: VINCI Construction: diversification and specialisation
VINCI Construction: diversification and specialisation France: Firm performance in public building sector (health care, sports) and residential buildings (subsidised housing in particular): the worst is behind us Growth in order intake, especially in private buildings International Very good perform
Slide 49: VINCI Immobilier: 2010 highlights
VINCI Immobilier: 2010 highlights Revenue: +8.0%, including: Residential (: 475 million): +12.7% Commercial (: 114 million): -9.0% Residential RE: 34% increase in units sold: 4,194 signed closings in 2010 Inventory of potential units: about 9,400 lots at 31 December 2010 (+13% versus 2009) Commercia
Slide 50: Appendixes: Detailed consolidated financial statements
Appendixes: Detailed consolidated financial statements
Slide 51: Key figures
Key figures 2009 2009 2010 (in : millions) Δ 10/09 published restated actual Revenue 31,928 30,741 33,376 +8.6% Cash flow from operations 4,964 4,771 5,052 +5.9% % of revenue* 15.5% 15.5% 15.1% Operating profit from ordinary activities 3,192 3,100 3,434 +10.8% % of revenue* 10.0% 10.1% 10.3% Net pro
Slide 52: Consolidated revenue
Consolidated revenue 2009 2010 Δ 10/09 (in : millions) actual comparable restated actual Concessions 4,889 5,097 4.3% 3.5% VINCI Autoroutes 4,095 4,259 4.0% 4.0% VINCI Park 576 596 3.5% 0.7% Other concessions 218 242 11.0% 3.0% Contracting 25,729 28,150 9.4% -1.7% Energies 4,862 7,102 46.1% -0.3% Eu
Slide 53: Consolidated revenue – France
Consolidated revenue – France 2009 2010 Δ 10/09 (in : millions) restated actual actual comparable Concessions 4,617 4,791 3.8% 3.4% VINCI Autoroutes 4,083 4,247 4.0% 4.0% VINCI Park 413 416 0.8% 0.8% Other concessions 121 129 6.3% -5.2% Contracting 14,844 15,911 7.2% -1.9% Energies 3,110 4,439 42.7%
Slide 54: Consolidated revenue – outside France
Consolidated revenue – outside France 2009 2010 Δ 10/09 (in : millions) restated actual actual comparable Concessions 272 306 12.4% 5.0% VINCI Autoroutes 12 12 1.6% -4.2% VINCI Park 163 180 10.5% 0.4% Other concessions 97 114 16.8% 14.2% Contracting 10,885 12,239 12.4% -1.5% Energies 1,752 2,663 52.
Slide 55: Operating profit from ordinary activities by entity
Operating profit from ordinary activities by entity 2009 % 2010 % (in : millions) Δ 10/09 restated of revenue* actual of revenue* Concessions 1,937 39.6% 2,094 41.1% 8.1% VINCI Autoroutes 1,793 43.8% 1,923 45.2% 7.3% VINCI Park 98 17.0% 111 18.6% 13.6% Other concessions 46 NS 60 NS 28.4% Contracting
Slide 56: Net profit by entity
Net profit by entity 2009 % 2010 % Δ (in : millions) restated of revenue actual of revenue 10/09 Concessions 779 15.9% 875 17.2% 12.4% VINCI Autoroutes 733 17.9% 837 19.6% 14.1% VINCI Park 41 7.2% 61 10.2% 47.3% Other concessions 18 8.2% 29 11.9% 62.3% Concession holding (13) - (51) - companies Cont
Slide 57: EBITDA by entity
Cash flow from operations before cost of financing and tax (EBITDA) by entity 2009 2010 % of (in : millions) % of revenue* Δ 10/09 restated actual revenue* Concessions 3,089 63.2% 3,197 62.7% 3.5% VINCI Autoroutes 2,807 68.5% 2,929 68.8% 4.4% of which ASF/Escota 1,997 67.3% 2,102 68.4% 5.3% Cofirout
Slide 58: Net investments in operating assets
Net investments in operating assets 2009 2009 2010 (in : millions) Δ 10/09 published restated actual Concessions 49 47 45 (2) VINCI Autoroutes 16 16 15 (1) VINCI Park & other concessions 33 31 30 (1) Contracting 841 655 647 (8) Energies 75 75 75 - Eurovia 250 243 218 (25) Construction 516 338 354 16
Slide 59: Growth investments in PPP contracts and concessions
Growth investments in PPP contracts and concessions 2009 2009 2010 (in : millions) Δ 10/09 published restated actual Concessions 1,167 1,029 852 (177) VINCI Autoroutes 945 945 759 (186) of which ASF / Escota 524 524 655 131 Cofiroute 315 315 99 (216) Arcour 106 106 5 (101) VINCI Park 44 44 33 (11) O
Slide 60: Cash flow statement (1/2)
Cash flow statement (1/2) 2009 2010 (in : millions) Concessions Contracting restated actual Cash flow from operations 4,771 5,052 3,197 1,766 Change in WCR and current provisions 524 (78) (8) (80) Income taxes paid (644) (950) (669) (243) Net interest paid (762) (693) (687) (15) Dividends received f
Slide 61: Cash flow statement (2/2)
Cash flow statement (2/2) 2009 2010 (in : millions) restated actual Free cash flow 2,276 1,919 Net financial investments (incl. net financial debt) (96) (2,425)* Other financial cash flows (31) (68) Cash flow before movements in share capital 2,148 (575) Capital increases & other operations 621 1,65
Slide 62: Consolidated balance sheet
Consolidated balance sheet 31 Dec. ‘09 31 Dec. ‘09 (in : millions) 31 Dec. ‘10 published restated ASSETS Non-current assets – concessions 26,681 26,235 26,303 Non-current assets – other business lines 5,057 4,706 7,916 Current financial assets 35 35 48 Net cash managed 6,022 5,887 5,609 Total assets
Slide 63: Net financial debt by entity
Net financial debt by entity 2009 2009 2010 Debt/ cash (in : millions) Δ 10/09 published restated actual flow* Concessions (15,960) (15,688) (15,599) 4.9 x 89 VINCI Autoroutes (14,029) (14,029) (13,965) 4.8 x 64 VINCI Park (830) (819) (787) 4.4 x 32 Other concessions (611) (351) (408) 4.2 x (57) Con
Slide 64: Maturity of gross financial debt
Maturity of gross financial debt Average maturity of gross financial debt at 31 December 2010: 6.6 years of which concessions: 7.5 years 3 000 2 500 2 000 1 500 1 000 500 0 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 2 019 2 020 2 021 2 022 2 023 2 024 2 025 2 026 2 027 > 2028 ASF ASF Holding Co
Slide 65: Breakdown of gross financial debt
Breakdown of gross financial debt Breakdown by nature of debt Breakdown of fixed/floating rate after Good diversification of sources of medium- hedging and long-term financing 31 Dec. ’09 31 Dec.‘10 % of total restated 12% 12% Fixed rate 10,146 56% 65% 28% 29% Capped/inflation- 1,855 10% 15% linked
Slide 66: Financial indicators
Financial indicators 31 Dec. ‘09 (in : millions) 31 Dec. ‘10 restated Capital employed 25,005 27,766 of which: 25,066 25,121 Concessions Contracting (30) 2,580 ROCE – Return on capital employed 9.0% 9.3% Equity attributable to owners of the parent 9,811 12,304 ROE – Return on equity 18.9% 18.1% Net
Slide 67: 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 68: 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 68