Vinci SA · EURONEXT:DG
Vinci SA — SG CIB European ESG & SRI Conference 2019
38 slides from Vinci SA's conference presentation, November 2019
Slide 1: SG CIB European ESG & SRI conference
VINCI SG CIB European ESG & SRI conference November 2019
Slide 2: Table of contents
Table of contents 1 The VINCI Group 2 Social performance 3 Environmental performance 4 Corporate governance 2
Slide 3: The VINCI Group
VINCI Ws The VINCI Group
Slide 4: History: from pioneer to global leader
History: from pioneer to global leader 2014 2013 Acquisition of ANA Disposal of VINCI Park 2010 (airports of Portugal) 2006 Acquisition of Acquisition of the Cegelec French toll-roads MERGER ASF / Escota 2002 Entry into the CAC 40 2015 to 2019 2000 Acceleration of the development of VINCI is born VI
Slide 5: Presentation of the VINCI Group
Presentation of the VINCI Group Concessions Real estate Contracting Revenue: €7.3 bn Revenue: €1.1 bn Revenue: €35.8 bn 17,701 people 854 people 192,315 people VINCI Autoroutes Other VINCI VINCI Airports VINCI Immobilier VINCI Energies Eurovia concessions Construction 6,168 people 10,025 people 1,50
Slide 6: VINCI's DNA
VINCI’s DNA ü Decentralised management ü The men and women at the heart of actions and organisations ü A local and global approach, rooted in all territories ü A global performance 6
Slide 7: The VINCI integrated concession-construction model
The VINCI integrated concession-construction model Synergy in expertise between concessions and contracting businesses to win new infrastructure projects 7
Slide 8: A combination of two complementary business profiles
A combination of two complementary business profiles REVENUE EMPLOYEES EBITDA** €43.5 bn* 211,233 €6.9 bn 1% 17% 17% 1% 8% 2% 1% 2% 26% 11% 15% 82% 82% 91% 72% * o/w 43% outside France **Cash flow from operations before tax and financing costs FREE CASH FLOW CAPITAL EMPLOYED NET RESULT €3.2 bn €38.3
Slide 9: VINCI from 2007 to 2018
VINCI from 2007 to 2018 Revenue by business Net result by business 2007 2018 2007 2018 €30.4 bn €43.5 bn €3.0 bn 35% €1.5 bn Contracting* 83% Contracting* 85% 56% 65% Concessions 44% 15% Concessions 17% *including VINCI Immobilier 9
Slide 10: VINCI's constant strategy
VINCI’s constant strategy LEVERAGE THE STRENGTHS OF OUR INTEGRATED CONCESSIONS/CONTRACTING BUSINESS MODEL CONCESSIONS CONTRACTING ü Focus on airports and motorways ü Prioritise margin over revenue growth (greenfield, yellowfield and brownfield projects) ü Focus on high value added segments ü Extend
Slide 11: Strong free cash flow generation and sound cash allocation principles
Strong free cash flow generation and sound cash allocation principles Free cash flow generation from 2007 to 2018: €28 bn total 3 500 CASH ALLOCATION POLICY 3 000 CAGR: +6.3% 2 500 DIVIDENDS SHARE BUY BACK ACQUISITIONS 2 000 ü 50% payout ratio ü Eliminate ü Execution of Group 1 500 shareholder’s str
Slide 12: An attractive dividend policy
An attractive dividend policy 2019 interim dividend per share €0.79 Execution date 5 November 2019 (all-cash) up 5.3% Payment date 7 November 2019 Dividend per share since 2009 (in €) +65% CAGR +5.7% 0.45** 2.67 2.45 2.10 1.67 1.77 1.77 1.77 1.77 1.84 1.62 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 13: Alignment of the shareholder's, the employee's and the group's best interests
Alignment of the shareholder’s, the employee’s and the group’s best interests France United Kingdom Market capitalisation 12.3% 14.2% 8 November 2019 Rest of Europe Individual investors Institutional 17.1% 7.4% investors 600.3 m 72.5% 8.7% Employees €60.6 bn shares 7.7% Treasury shares North America
Slide 14: 9M 2019 highlights
9M 2019 highlights Passenger numbers still buoyant at VINCI Airports (+6.8%) Traffic levels at VINCI Autoroutes slightly down for LV (-0.6%), growing further for HV (+2.1%) Good business momentum accross VINCI Energies, Eurovia, VINCI Construction and VINCI Immobilier Growth in the order intake (+17
Slide 15: Outperformance of French and sectorial indexes since 10 years
Outperformance of french and sectorial indexes since 10 years Share price evolution from 31 October 2009 to 31 October 2019 110,00 100,00 VINCI :+182% 90,00 80,00 European sectorial index*: +99% 70,00 60,00 CAC 40 : +59% 50,00 40,00 30,00 20,00 10/31/2009 10/31/2010 10/31/2011 10/31/2012 10/31/2013
Slide 16: Aim for a global performance
Aim for a global performance Our goal is global performance, our managerial model drives our growth, and we believe in humanistic values 16
Slide 17: Social performance
VINCI 2 Social performance
Slide 18: Ethics and Human Rights
Ethics and Human Rights Documents available in 30 languages and for 99 % of employees 18
Slide 19: Zero accidents on worksites
Zero accidents on worksites • An in-house network of health and safety coordinators • Committed managers • Trainings and best practices 19
Slide 20: Equality and diversity
Equality and diversity • An in-house diversity network of 300 people • Promoting gender equality (multiply by 2 the number of women in steering committees) • Fostering the employment of people with disabilities 20
Slide 21: Encouraging teams' professional fulfilment
Encouraging teams’ professional fulfilment Employee training, sharing the benefits of performance (97% of employees benefited from profit-sharing plans in 2018) as well as initiatives to encourage integration (VINCI Insertion Emploi) and civic engagement are key to encourage our teams professional f
Slide 22: Environmental performance
VINCI -_? Environmental performance
Slide 23: Environmental targets to answer climate challenges
Environmental targets to answer climate challenges Energy consumption reduction and renewable energy Ecological engineering to avoid biodiversity loss Circular economy to tackle ressources challenge 23
Slide 24: Our commitments recognised
Our commitments recognised 24
Slide 25: Corporate governance
VINEI “ Corporate governance
Slide 26: Summary of corporate governance in 2018
Summary of corporate governance in 2018 Defines the Company’s strategic choices and ensures they are properly Board of Directors implemented (15 members) Xavier Huillard Chairman and Chief Executive Officer Maintains the balance of power Yannick Assouad Lead Director Reinforce the connection Yves-Th
Slide 27: An active and diversified Board of Directors
An active and diversified Board of Directors Independent 9 meetings in 2018 Average attendance rate Women Directors Foreign national Directors Directors* (seven ordinary and two extraordinary) 92 % 46 % 47 % 83 % Composition of the Board of Directors at 31 December 2018 P 15 Directors, including : P
Slide 28: Directors' expertise in line with VINCI's strategy
Directors’ expertise in line with VINCI’s strategy 28 28
Slide 29: A Chairman and CEO
A Chairman and CEO Corporate governance appropriate to a decentralised Group needing decisions to be made centrally and strong executive management Clear objectives : Unify Group Create a direct representation link Combined Roles of Chairman and Rationalise the CEO Increase decision- making efficien
Slide 30: An independent Lead Director and a Vice-Chairman
Two key members of the Board : An independent Lead Director and a Vice-Chairman Appointment of an independent Lead Director since November 1st 2018 to better align with shareholders’ expectations Yannick Assouad, independent Lead Director Yves-Thibault de Silguy, Vice-Chairman Missions: Missions: P
Slide 31: The Board Committees: Audit Committee
The Board Committees Audit Committee (5 meetings in 2018) Composition Main assignments 2018 activity Independent Chairman : ü Monitor the process of compiling ü Review of the Group’s parent company Robert Castaigne financial information and consolidated financial statements prepared during the year,
Slide 32: The Board Committees: Strategy and CSR Committee
The Board Committees Strategy and CSR Committee (7 meetings in 2018) Composition Main assignments 2018 activity Chairman : ü Formulation of an opinion to Executive ü 12 acquisition projects in contracting Yves-Thibault de Silguy Management on proposed acquisitions or disposals of a value exceeding ü
Slide 33: Acquisitions: a bottom-up and collective decision process
Acquisitions: a bottom-up and collective decision process M&A and PPP projects initiated and executed at HIGHWAYS the business line level… but reviewed by the Board above certain thresholds Thresholds Review by Investments or committments Strategy and CSR committee > €50 millions (Board committee) I
Slide 34: The Board Committees: Remuneration Committee
The Board Committees Remuneration Committee (3 meetings in 2018) Composition Main assignments 2018 activity Independent Chairman : ü Make recommendations to the ü Evaluation of the performance of Pascale Sourisse Board concerning remuneration, executive company officers, pension and insurance plans,
Slide 35: Principles and guidelines of the CEO remuneration policy 2019 – 2022
Principles and guidelines of the CEO remuneration policy 2019 – 2022 A balanced, capped and demanding remuneration policy More detail given p.156 to p.158 of VINCI annual report 35
Slide 36: The Board Committees: Appointments and Corporate Governance Committee
The Board Committees Appointments and Corporate Governance Committee (6 meetings in 2018) Composition Main assignments 2018 activity Independent Chairman: ü Make proposals on the selection of ü Consider Directors’ terms of office Yannick Assouad Directors ending in 2019 Members: ü Make recommendatio
Slide 37: Succession plans: a monitored process
Succession plans : a monitored process PThe Appointments and Corporate Governance Committee makes sure that it always has a succession plan in place for the Chairman and Chief Executive Officer in the event of the latter’s incapacity. PThe natural succession process for the Chairman and Chief Execut
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