Vinci Sa · EURONEXT:DG
Vinci Sa — 9M 2015 Earnings Presentation
60 slides from Vinci Sa's earnings presentation, October 2015
Slide 1: 2015 nine month highlights
2015 nine month highlights ITER Project
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: 2015 nine month highlights
VINCI “~ 2015 nine month highlights
Slide 4: A solid economic performance on a global scale
A solid economic performance on a global scale 9M 2015 vs 9M 2014 Good resilience of Group revenue stable* +2.9% Concessions Dynamic toll road traffic Strong airport passenger traffic +11.3%** €23.7 bn +3.5% Contracting Order intake 9M 2015 Order book at 30 September €28.5 bn +2.3%*** vs 30 Sept. 20
Slide 5: Consolidated revenue
Consolidated revenue Δ 15/14 € in millions 9M 2015 9M 2014 Actual Comparable FY 2014 Concessions 4,459 4,289 +4.0% +3.8% 5,564 VINCI Autoroutes 3,760 3,656 +2.8% +2.8% 4,743 VINCI Airports 622 554 +12.3% +11.7% 717 Other Concessions 77 78 (1.4%) (3.5%) 104 Contracting 23,713 23,959 (1.0%) (6.7%) 32,
Slide 6: 2015 first nine month consolidated revenue
2015 first nine month consolidated revenue (in € millions) Concessions Contracting -1.9% -1.0% 28,433 Organic Scope & FX Organic Scope & FX 28,180 +3.8% -5.8% -6.7% +5.6% Revenue change: stable excl. VINCI Park -0.9% actual Organic: -4.9% Scope: +2.0% FX: +2.0% 9M 2014 9M 2015 6
Slide 7: Concessions overview - 9M 2015
Concessions overview - 9M 2015 Revenue: €4.5 bn (+4.0% * ) 9M 2015 vs 9M 2014 9M 2015 vs 9M 2014 Revenue €3.8 bn +2.8% Revenue €0.6 bn +12.3% Traffic Passenger traffic 9M 2015: 40.3 m** Change (y-o-y) 9M 2015 Q3 2015 FY 2014 Change (y-o-y) 9M 2015 Q3 2015 FY2014 Intercity network +2.9% +3.1% +2.1% T
Slide 8: VINCI Autoroutes
VINCI Autoroutes Change in traffic over 12 trailing months (number of km travelled) Change since Q4 2007 as of Q3 2015 115 Light vehicles 110 +10.8% Total traffic 105 +8.1% 100 95 Heavy vehicles -7.0% 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
Slide 9: Contracting overview – 9M 2015
Contracting overview – 9M 2015 Revenue: €23.7 bn (-1.0%) Revenue €7.3 bn +10.0% Revenue €5.8 bn -4.8% Revenue €10.6 bn -5.5% International France International 43% France International 48% France 47% +27.0% 53% -1.8% +4.4% 57% -10.7% +4.0% 52% -12.9% • Sharp growth outside France • Reduced activity
Slide 10: Contracting - Tours–Bordeaux HSL
Contracting - Tours–Bordeaux HSL SEA construction reaching 90% completion ahead of the schedule 2011 €0.2 bn €0.6 bn Achieved 2012 2013 €1.3 bn 2014 €1.1 bn ~ €0.6 bn Forecast 2015 9M 2015 > 2016 ~ €0.4 bn All Group’s expertise employed Completion in July 2015 of earthworks and civil engineering wor
Slide 11: Contracting order intake
Contracting order intake Order intake up by 3.5% for 9M 2015 thanks to very dynamic Q3 Quarterly breakdown by geographical area Nine-month breakdown by Δ 15/14 9M business line -11% +16% +3.5% 8.7 +8% 8.4 7.7 7.6 7.0 7.2 International +12% +6% +13% +18% -20% France +3% +15% -3% Q1 Q1 Q2 Q2 Q3 Q3 9M
Slide 12: Contracting order book
Contracting order book Order book up by 2.3% year-on-year (excluding SEA) Breakdown by geographical area Breakdown by business line Δ 15/14 Sept. Δ 15/14 Sept. Actual Excl. SEA Actual Excl. SEA 28.7 27.9 28.5 stable +2% 28.7 27.9 28.5 stable +2% 6.4 6.5 +2% +3% -7% -2.5% 6.3 15.1 14.0 14.0 6.0 5.5 5
Slide 13: Outlook and strategy
VINCI “~ Outlook and strategy
Slide 14: 2015 outlook – Main trends confirmed
2015 outlook – Main trends confirmed Concessions Near stable Revenue growth in Concessions*, driven by a slight (actual) acceleration in traffic growth relative to 2014**. Revenue Revenue generated Change in Contracting revenue, comparable to that outside France Contracting recorded for the first ni
Slide 15: 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 15
Slide 16: Financial policy
Financial policy Optimise average gross financial Anti-dilution strategy debt maturity 2015-2021 maturity schedule as of 30 June 2015 (in € bn): 2.6 12m treasury shares to be cancelled before year- 1.9 2.1 end 2015 1.6 1.6 1.1 1.5 (21st October Board of Directors decision) TSS 2H Treasury stock: 5.8
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 Develop synergies Extract more growth Restructure under- value Special focus from our on growth Seek out greenfield and performing country- current activities brownfield bus
Slide 18: Thank you for your attention
Thank you for your attention
Slide 19: Appendixes
Appendixes Structure and shareholder base Business line profiles 1H 2015 Financial data
Slide 20: Structure and shareholder base
Structure and shareholder base
Slide 21: 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 22: 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 23: Business line profiles
VINCI “~ Business line profiles
Slide 24: Concessions
VINCI “~ Concessions
Slide 25: 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 8
Slide 26: VINCI Autoroutes
VINCI “~ VINCI a” AUTOROUTES
Slide 27: 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 28: VINCI Autoroutes
VINCI Autoroutes Main terms of the MoU signed on 9 April 2015 with the grantor: Stimulus Package (approved by the European Commission in 2014) CAPEX of €2bn to be performed, compensated by an extension of the duration of the VINCI 1 concessions as follows: Entity Extension End of concession * CAPEX
Slide 29: Concessions
VINCI “~ CONCESSIONS VINCI a”
Slide 30: 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 31: VINCI Airports
VINCI Airports VINCI Airports revenue breakdown by activity (2014): 4 1 Aviation 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 Retail, real estate, car parks, car r
Slide 32: VINCI Airports
VINCI Airports End of VINCI Traffic Consoli- Country Name Description dation* concession share risk 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 33: 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 34: 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 35: 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 36: 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 37: Contracting
VINCI “~ Contracting
Slide 38: 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% €32.9 bn as % of revenue 3.5% Africa 5% Net income 588 Net financial surplus 1,606 Americas 6% RoW 5%
Slide 39: 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 40: 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 41: VINCI Construction
VINCI Construction 2014 revenue 2014 Key figures 1,000 by geographical area (€ in millions) Business UK 11% Central and Eastern Revenue 15,419 Units 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 42: 2015 first half detailed consolidated financial statements and other information
2015 first half detailed consolidated financial statements and other information
Slide 43: 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 VI
Slide 44: 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%) 18,84
Slide 45: 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 6,926 6,418 7.9% (6.4%) 14,074 VINCI E
Slide 46: 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 47: EBIT - operating income from ordinary activities 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% 23
Slide 48: 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 Recurri
Slide 49: 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% O
Slide 50: 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 Fin
Slide 51: 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 52: 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 53: 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 54: 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 55: 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 Contractin
Slide 56: 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 57: 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 23
Slide 58: 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 C
Slide 59: 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 60: IR Contacts and Agenda
IR Contacts and Agenda CONTACT AGENDA Arnaud Palliez 10 November 2015 [email protected] Interim dividend ex-date Tel: +33 1 47 16 45 07 12 November 2015 Interim dividend payment date Alexandra Bournazel 27 November 2015 [email protected] Investor Day VINCI Concessions Tel: +33 1 4