Vinci SA · EURONEXT:DG
Vinci SA — Non-Deal Roadshow (June 2001)
30 slides from Vinci SA's roadshow presentation, June 2001
Slide 1: ROADSHOW USA - June 2001
ROADSHOW USA - June 2001 1
Slide 2: Disclaimer
This presentation has been prepared by VINCI for information purposes only. It is based on sources we believe to be reliable but neither its accuracy nor completeness is guaranteed. Opinions expressed herein reflect the current judgement of the Company and may change without notice. This presentatio
Slide 3: Management presenters
Antoine Zacharias Chairman and CEO Bernard Huvelin Managing Director Jérôme Tolot Managing Director Christian Labeyrie Chief Financial Officer 3
Slide 4: A balanced business mix
A balanced business mix 2000 net sales breakdown by activity (17.3 billion euros) Concessions and services 12% Construction Energy- (building & civil Information engineering) 21% 34% Roads 33% 4
Slide 5: 85% of operating income derived from recurring activities
85% of operating income derived from recurring activities 2000 operating income breakdown by business line (966 million euros) Construction 15% Roads Concessions 16% 57% Energy- Information 12% 5
Slide 6: A European Group
A European Group Rest of the world 6% North America 4% Other European countries 11% France 62% UK 7% Germany 10% 2000 net sales: 17.3 bilion euros 6
Slide 7: An organisational structure based on business lines
An organisational structure based on business lines Antoine Zacharias Chairman and CEO Jérôme Tolot Bernard Huvelin Managing Director Managing Director 7
Slide 8: An unrivalled portfolio of concessions
An unrivalled portfolio of concessions Toll-paying Large structures Car parks motorways and facilities Airports 1960 1970 1980 1990 2000 725,000 1,200 km 8 bridges 25 airports spaces Cofiroute and tunnels Stade de France Growth paralleled the evolution of the ways in which people travelled 8
Slide 9: An unrivalled portfolio of concessions
An unrivalled portfolio of concessions Long residual duration – Car parks 27 years – Airports 42 years – Bridges 38 years High medium-term visibility – Cofiroute 29/70 years Majority holdings – Car parks 100% – Cofiroute 65% Financial and operational control – Chilean motorway 81% – Rion-Antirion br
Slide 10: Energy - Information
Energy - Information Number 1 in France for electrical engineering and works Strong positions in services related to new information and communication technologies (telecom infrastructure, manufacturing information systems, business communication systems) A European network of 700 companies France T
Slide 11: Roads
Roads European leader in roadworks and one of the largest European producers of road materials Major player in demolition and construction waste recycling A strong network of locations in Europe (Germany, UK, Spain, Belgium, Central Europe) Significant operations in North and South America Environme
Slide 12: Construction
Construction A very wide range of skills and capabilities An exceptionally dense network of local contractors Outstanding expertise in design-and-build projects Strong positions in added-value businesses (specialised civil engineering, project management, maintenance) France Building 55% 42% Civil S
Slide 13: An enhanced stock market value
An enhanced stock market value Largest market capitalisation in Europe in the construction sector (around 6 billion euros) Greatly improved liquidity: 20 million euros traded every day (x 5 since the announcement of the merger with GTM and the pull-out of majority shareholders Vivendi Universal and
Slide 14: A refashioned shareholder structure
A refashioned shareholder structure VINCI early 2000 GTM early 2000 41% 49% 46% 49% 7% 3% VINCI today 2% 3% market cap.: 8.5% market cap.: 5.0% 1.9 bn euros 1.5 bn euros 5.3% 8.5% Vivendi Universal* 72.7% Suez** Employees Treasury stock Float market cap.: around 6 bn euros (+80%) * In February 2001,
Slide 15: Excellent share performance
Excellent share performance 2000 results 75 Announcement of the merger +57% 70 with GTM 65 60 Suez 55 Vivendi pull-out 50 pull-out 45 -3% 40 -12% 35 1 Jan. 2000 15 June 2001 VINCI SBF 120 DJ Stoxx Construction 15
Slide 16: Continuing improvement of VINCI's profitability
Continuing improvement of VINCIs profitability 2000 pro forma change forecast million euros 1999/2000 2001 Net sales 17,331 + 10% Operating income 966 + 23% Pre-tax income excluding non-recurring items 535 + 15% Net income 423 + 55% Free cash flow (before 461 n.a. investment in infrastructure conce
Slide 17: Operating income up 23% in 2000
Operating income up 23% in 2000 Operating income (million euros) +23% 966 +10% +25% +41% +83% 787 568 518 118 110 156 150 94 82 Concessions Energy- Roads Construction Total Information 1999 2000 17
Slide 18: Improved profitability in all business lines
Improved profitability in all business lines Operating margin (operating income / net sales) 42.4% 42.3% 5.6% 5.0% 3.8% 3.4% 2.9% 2.3% 2.1% 1.3% Concessions Energy- Roads Construction Total Information 1999 2000 18
Slide 19: Balance sheet: concessions create solid asset base
Balance sheet: concessions create solid asset base in millions of euros 2000 of which proforma concessions Fixed assets 7,480 4,687 of which special concession amortisation (985) (985) Shareholders equity 2,317 * 1,699 Grants and other long term debt 471 407 Pension commitments 429 4 Provisions 1,9
Slide 20: A group creating shareholder value
A group creating shareholder value Capital employed Return on capital employed - ROCE 5.9 billion euros (operational income after tax / capital employed) Energy- Information, Roads, Concessions 9.2% Construction 26% Other 22.8% !ROCE 12.7% Concessions 74% !WACC 7.5% Return on equity - ROE 23.1% 20
Slide 21: A strategy focused on growing profitability
A strategy focused on growing profitability Optimise existing operations – upgrade all business lines by focusing on the most profitable sectors – leverage synergies – stick to a strict risk management and selective order-taking policy – anticipate structural adjustments, focusing on light-weight an
Slide 22: Greater than expected synergies
Greater than expected synergies Initial target of 70 million euros revised upwards: 50 million euros in 2001 More than 100 million euros by 2003 (before tax) Purchasing and Concessions and holdings capital expenditure 15% 20% Streamlining and elimination of duplication 50% Roads Optimisation 25% Con
Slide 23: Ensure sustainable development
Ensure sustainable development Promote innovation and environmental friendly attitude – innovation and R&D – quality and safety – environmental protection Reinforce staff motivation – increase variable part in salaries – incentives: stock options / employee savings plan Increase transparency (
Slide 24: Concessions
Concessions Operate for maximum value the existing portfolio of concessions Selective growth (airports and car parks) Action focus million euros – Car parks Launch of VINCI Park 2000 trend Focus on new services and private pro forma 2001-2004 customers in France Sales 1,342 Growth in oth
Slide 25: Energy - Information
Energy - Information Speed up internal and external growth in information and commmunication technologies million euros Reinforce offerings for industrial clients (manufacturing information 2000 trend systems, maintenance) pro forma 2001-2004 Sales 3,096 Complete the network of locations EBITD
Slide 26: Roads
Roads Reinforce materials production capacity Develop environment-related activities (recycling of building site waste, demolition/deconstruction) millions euros Complement network in Europe and on 2000 trend pro forma 2001-2004 the American continent through Sales 5,355 targeted external grow
Slide 27: Construction
Construction Selectivity – Margin before volume – Reduce exposure to major civil engineering projects outside France – Risk control millions euros Strategic repositioning 2000 trend – Partnership contracts (PPP in the UK, pro forma 2001-2004 private clients in France) Sales 7,176 – Design-and-bu
Slide 28: 2001 off to a good start
2001 off to a good start Sustained business level in the first quarter, with concessions leading the way in growth in millions of euros Q1 2001 Q1 2000 Var. Var. pro forma like-with-like Concessions 308 289 +7% +6% Energy-Information 708 696 +2% +5% Roads 1,037 994 +4% +4% Construction 1,565 1,494 +
Slide 29: Good outlook for 2001
Good outlook for 2001 Order backlog up 8% on 31 March 2001 31 March 2001 Months of Var. / million euros activity 31 March 2000 Energy-Information 1,229 4.6 + 9% Roads 2,946 6.5 +12% Construction 6,382 10.6 + 5% Total 10,557 + 8% 29
Slide 30: 2001 targets confirmed
2001 targets confirmed Growth in net sales deliberately kept moderate Pre-tax income excluding non-recurring items +20% Net income higher in 2001 than in 2000 - despite higher income tax - excluding exceptional capital gains 30