Vinci SA · EURONEXT:DG
Vinci SA — H1 2008 Earnings Presentation
59 slides from Vinci SA's earnings presentation, Sep 1, 2008
Slide 1: 2008 Interim results
2008 Interim results Analysts meeting - 1 September 2008 Xavier Huillard Director – Chief Executive Officer Christian Labeyrie Chief Financial Officer
Slide 2: Half-year highlights
Half-year highlights Half-year highlights 2008 interim financial statements and financial policy Conclusion Appendixes
Slide 3: Key figures - first half 2008
Key figures - first half 2008 in € millions H1 2007 H1 2008 Δ 08/07 Revenue 13,665 15,737 +15% Operating profit from ordinary activities 1,306 1,460 +12% % of revenue 9.6% 9.3% Net profit attributable to equity holders 614 731 +19% of the parent Cash flow from operations 1,975 2,182 +11% % of revenu
Slide 4: Half year highlights: Strong business growth
Half year highlights Strong business growth Robust organic growth Integration of acquired companies International expansion Contracting Robust operating margins Good order book replenishment Still just as many projects Concessions Increase in motorway revenue despite a weaker traffic due to economic
Slide 5: Strong business growth
Strong business growth in € millions Concessions revenue Contracting revenue VINCI Group revenue Energy Roads +6.4% +17.3% Construction +15.2% 13,391 15,737 11,414 2222 13,665 1983 3639 3383 2 147 2 285 7 530 6 047 H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 VINCI: a growth share 5
Slide 6: Robust organic growth and integration of acquired companies
Robust organic growth and integration of acquired companies in € billions Acquisitions Other +10% -1.1% €15.7bn Organic growth +6.3% €13.7bn +15.2% H1 2007 revenue H1 2008 revenue VINCI: a growth share 6
Slide 7: International expansion
International expansion First-half revenue by geographical region in € millions H1 2008 Δ 08/07 France 10,093 +9.4% Central & Eastern Europe 1,011 +5.4% United Kingdom 1,054 +17.4% Germany 731 +3.5% Belgium 505 +26.6% Rest of Europe 698 48.7% Europe (excl. France) 4,000 +16.6% Americas 544 +45.6% Af
Slide 8: Targeted acquisitions
Targeted acquisitions Objectives: Strengthen Group's international positions Diversify into highly-technical and high-growth businesses Find targets of reasonable size and price H1 2008 realisations: Around 30 acquisitions in H1 2008 in all businesses, representing investment of app. €150m and full-
Slide 9: Robust operating margins
Robust operating margins in € millions Concessions op. profit Contracting op. profit VINCI Group op. profit +14% +15% +12% Energy 1,460 Roads 1,306 899 Construction 789 548 Op. profit 477 111 105 76 90 282 362 H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 % of rev. 36.7% 39.3% 4.2% 4.1% 9.6% 9.3%
Slide 10: Robust operating margins
Robust operating margins % H1 2008 % in € millions H1 2007 of rev. of rev. Δ 08/07 Concessions 789 36.7% 899 39.3% +13.9% ASF /Escota * 437 33.6% 548 40.2% +25% Cofiroute 258 53.7% 266 52.0% +2.9% VINCI Park 62 22.3% 61 19.9% -1.6% Other infrastructure 32 24 Contracting 477 4.2% 548 4.1% +15.1% VINC
Slide 11: Good order book turnover
Good order book turnover Orders Contracting in € billions revenue* intake €14.5bn €13.4bn €22.7bn €21.5bn +5% Order book at Order book at 31 December 2007 30 June 2008 Order book rise despite high level of revenue Good commercial activity momentum both in France and outside France * VINCI Constructi
Slide 12: Order book continued to grow
Order book continued to grow No. of months vs. of average in € millions At 31 July 2008 31 Dec. 07 business activity VINCI Energies 2,638 +21% 7 Eurovia 5,017 0% 8 VINCI Construction 15,533 +9% 12 Total 23,187 +8% 10 France 11,354 +6% 9 International 11,833 +10% 11 Good visibility on 2008 and 2009 1
Slide 13: Still just as many projects, often of significant size: In France
Still just as many projects, often of significant size In France Prado Sud Tunnel in Marseilles MMArena stadium in Le Mans Police stations Biarritz Ocean: marine museum Robust and diversified sales momentum 13
Slide 14: Still just as many projects: International
Still just as many projects, often of significant size INTERNATIONAL Rail tunnel in Delft (CFE) Dam in the United States (Solétanche) Cœntunnel in Amsterdam Friendship Bridge Qatar–Bahrain Pipeline in South Africa (ENTC) Artificial island in UAE (DEME) WWTP in Warsaw Robust and diversified sales mom
Slide 15: Increase in motorway revenue despite weaker traffic
Increase in motorway revenue despite a weaker traffic due to economic conditions Oil prices increase and truck drivers’ demonstrations depressed traffic on stable network in June and July Improving trend in August Resilient heavy vehicle traffic Positive impact of newly-opened sections, in particula
Slide 16: New successes in PPPs and concessions
New successes in PPPs and concessions France Prado Sud tunnel in Marseilles Le Mans stadium (MMArena) Marine Museum in Biarritz Exclusive negotiations on CDG Express International Two Greek concession contracts came into effect (600 km of motorway) Schools in Germany (Bergneustadt, Jülich) Paphos Po
Slide 17: 2008 Interim financial statements and financial policy
2008 Interim financial statements and financial policy Half-year highlights 2008 interim financial statements and financial policy Conclusion Appendixes
Slide 18: Income statement
Income statement in € millions H1 2007 H1 2008 Δ 08/07 Revenue 13,665 15,737 +15% Operating profit from ordinary activities 1,306 1,460 +12% % of revenue 9.6% 9.3% Operating profit 1,270 1,430 +13% Net financial expense (296) (283) Income tax expense (300) (355) Minority interests (60) (61) Net prof
Slide 19: Net financial expense
Net financial expense in € millions H1 2007 H1 2008 Cost of net financial debt (363) (395) Concessions (326) (388) Contracting 33 33 Holding companies and other (70) (40) Other financial income and expenses 67 112 Capitalised borrowing costs for investments in concessions 60 66 Gain/(loss) on share
Slide 20: Improvement in cash flow from operations
Improvement in cash flow from operations in € millions Concessions Contracting VINCI Group +4% +28% +11% 2,182 Energy 1,975 1,373 Roads 1,319 Construction 799 Cash flow* 126 625 from 107 158 operations 141 515 377 H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 % of revenue 61.4% 60.1% 5.5% 6.0% 14.
Slide 21: Cash flow statement (1/2)
Cash flow statement (1/2) in € millions H1 2007 H1 2008 Δ 08/07 Cash flow from operations 1,975 2,182 +207 Net interest and income taxes paid (817) (812) Changes in working capital requirement and current (400) (392) provisions Cash flow from operating activities 758 977 +219 Gross investments in op
Slide 22: Cash flow statement (2/2)
Cash flow statement (2/2) in € millions H1 2007 H1 2008 Net cash flow before financing activities (1,210) (136) Dividends (433) (523) Capital increases 409 290 Share buybacks (891) (223) Movements in share capital (915) (456) Net cash flow during the period (2,125) (592) Other changes and impact of
Slide 23: Very sound balance sheet
Very sound balance sheet in € millions 30 June 2007 31 Dec. 2007 30 June 2008 Equity 8 197 8 588 7 586 Non-current provisions and miscellaneous long- 1 292 1 207 term 1 285 25 489 25 722 Financial debt 25 200 WCR and current 19 897 19 799 provisions 20 187 Non-current assets (concessions) 3 285 4 45
Slide 24: Optimised financial structure
Optimised financial structure Concessions represent all Group debt Leverage maximised and cost of capital optimised Financing terms optimised (rates, maturity) Credit rating protected (BBB+ / Baa1) in € billions €16.8 bn €16.3 bn €16.7 bn 2,0 2,6 2,0 -2,3 -2,4 -2,2 -0,4 -0,8 -0,6 -0,9 -0,6 -0,8 -3,1
Slide 25: Financing still available for high-quality assets and projects
Financing still available for high-quality assets and projects Group still has access to credit on favourable terms owing to the quality of its projects and assets Financing of PPPs and concessions previously attributed secured: A4 Horselberg (A-Modell): €216m for 28.5 years (EIB and banks) Cœntunne
Slide 26: Conservative debt management, limiting exposure to market risks
Conservative debt management, limiting the Group's exposure to market risks Very high liquidity maintained: More than €10bn available at 30 June 2008 (€7.2bn in confirmed lines of credit and €3bn in cash managed) No financing need before 2012 (average maturity of debt = 7.2 years) Low sensitivity to
Slide 27: Conclusion
Conclusion Half-year highlights 2008 interim financial statements and financial policy Conclusion Appendixes
Slide 28: 2008 Outlook
2008 Outlook Concessions Investments to be launched in concessions recently granted in France (Prado Sud Tunnel, Le Mans stadium) and abroad (Athens–Patras–Tsakona, Cœntunnel, etc.) New greenfield projects (more than 20 projects under study or being submitted) Cofiroute 2009-2013 master plan negotia
Slide 29: 2008 objectives
2008 objectives Growth in full year 2008 revenue close to 10% Operating margins maintained Net financial debt stabilised 29
Slide 30: Decisions of the Board of Directors on 29 August 2008
Decisions of the Board of Directors on 29 August 2008 Interim dividend increase to €0.52/share, up 10.6% Ex-dividend date: 15 December 2008 Payment date: 18 December 2008 30
Slide 31: Appendixes
Appendixes Half-year 2008 highlights and key figures by business line Detailed 2008 interim consolidated financial statements
Slide 32: Half-year 2008 highlights and key figures by business line
Appendixes Half-year 2008 highlights and key figures by business line Half-year 2008 highlights and key figures by business line Detailed 2008 interim financial statements
Slide 33: Half-year 2008 highlights
Half-year 2008 highlights Revenue: +15% Op. profit*: +12% 1,460 15,737 1,306 9.3% of rev. 13,665 9.6% of rev. 4.2% Net profit: +19% Cash flow**: +11% 2,182 1,975 13.9% of rev. 731 14.5% of rev. 614 * Operating profit from ordinary activities Concessions ** Cash flow from operations before financing
Slide 34: VINCI Concessions: half-year key figures
VINCI Concessions: half-year key figures Revenue: + 6.4% +5.7% on a comparable basis Operating profit: +14% 2,285 2,147 2,000 International France 36.7% 39.3% Net profit: +15% Cash flow from operations: +4% 13.8% 15.0% 61.4% 60.1% 34
Slide 35: VINCI Autoroutes France
VINCI Autoroutes France Traffic Light vehicles traffic growth declined on June and July Light vehicles traffic got restored in August Resilience in heavy vehicle traffic (+1.8% in H1) Positive impact of newly-opened sections, especially for Cofiroute H1 2008 toll revenue ASF Escota Cofiroute Total S
Slide 36: VINCI Autoroutes France
VINCI Autoroutes France Operating margins New labour agreements to promote employee mobility and skills management Automatic transactions continued to rise: 75% overall in H1 2008 (ASF 75%, Escota 78%, Cofiroute 68%) EBITDA margins: 2009 objectives maintained Cash flow from operations H1 2007 H1 200
Slide 37: VINCI Park: half-year highlights
VINCI Park: half-year highlights in € millions H1 2007 H1 2008 More than 1.1 million car park spaces Revenue 275 304 of which international 79 102 managed at 30 June 2008 Operating profit from activities 62 61 Significant business development outside % of revenue 22.3% 19.9% France through low capit
Slide 38: VINCI Energies: half-year key figures
VINCI Energies: half-year key figures Revenue: +12.1% Operating profit: + 6% +2.2% on a comparable basis 2,222 1,983 1,740 International France 5.3% 5.0% Net profit: +5% Cash flow from operations: +17% 3.2% 3.0% 5.4% 5.7% 38
Slide 39: VINCI Energies: half-year highlights
VINCI Energies: half-year highlights Resilience in infrastructure (energy, transport, telecommunications), industry and telecommunications. Service sector more difficult. Growing international presence: Etavis integrated well Acquisitions in Czech Republic and Netherlands Profitability impacted by s
Slide 40: Eurovia: half-year key figures
Eurovia: half-year key figures Revenue: +7.6% Operating profit*: (16%) +6.2% on a comparable basis 3,639 3,383 3,122 International France 90 76 2.7% 2.1% Net profit*: (27%) Cash-flow from operations: +13% *Given the highly seasonal nature of the road industry, full-year results can not be projected
Slide 41: Eurovia: half-year highlights
Eurovia: half-year highlights In France, business is growing despite: Municipal elections (March 2008) Completion of several urban development projects (light rail systems) International business driven by large projects Germany: A4 Horselberg (A-Modell); Berlin airport Czech Republic: rail and road
Slide 42: VINCI Construction: half-year key figures
VINCI Construction: half-year key figures Revenue: +24.5% Operating profit: +29% +8.5% on a comparable basis 7,530 6,047 4,928 International 4.7% 4.8% France Net profit: +26% Cash-flow from operations: +37% 3.3% 3.3% 6.2% 6.8% 42
Slide 43: VINCI Construction: half-year highlights
VINCI Construction: half-year highlights Strong business growth, both organically (+8.5%) and through acquisitions (+18%) Order book continued to grow, driven by large international projects: €15.5bn at 31 July 2008 (12 months of business activity) Operating margins maintained at high level 2007 acq
Slide 44: Detailed 2008 interim consolidated financial statements
Appendixes Detailed 2008 interim consolidated financial statements Half-year 2008 highlights and key figures by business line Detailed 2008 interim consolidated financial statements
Slide 45: Income statement (1/2)
Income statement (1/2) in € millions 2007 H1 2007 H1 2008 Δ 08/07 Revenue 30,428 13,665 15,737 +15.2% Operating profit from ordinary 3,113 1,306 1,460 +11.7% activities % of revenue 10.2% 9.6% 9.3% Share-based payment (IFRS 2) (118) (45) (40) Goodwill impairment (6) - - Share of profit/(loss) of ass
Slide 46: Consolidated revenue
Consolidated revenue in € millions 2007 H1 2007 H1 2008 Δ08/07 Concessions 4,580 2,147 2,285 +6.4% ASF/Escota 2,811 1,301 1,363 +4.8% Cofiroute 1,039 481 511 +6.4% VINCI Park 562 275 304 +10.6% Other infrastructure 168 91 106 +16.7% Contracting 25,660 11,414 13,391 +17.3% VINCI Energies 4,301 1,983
Slide 47: Consolidated revenue - France
Consolidated revenue - France in € millions 2007 H1 2007 H1 2008 Δ 08/07 Concessions 4,321 2,024 2,134 +5.5% ASF/Escota 2,811 1,301 1,363 +4.8% Cofiroute 1,032 478 509 +6.5% VINCI Park 396 196 203 +3.5% Other infrastructure 81 50 60 +21.3% Contracting 15,177 7,090 7,887 +11.2% VINCI Energies 3,040 1
Slide 48: Consolidated revenue - International
Consolidated revenue - International in € millions 2007 H1 2007 H1 2008 Δ 08/07 Concessions 259 124 150 +22.0% ASF/Escota 0 0 0 Cofiroute 6 3 3 -9.5% VINCI Park 166 79 102 +28.3% Other infrastructure 87 41 46 +11.2% Contracting 10,483 4,324 5,504 +27.3% VINCI Energies 1,260 511 676 +32.5% Eurovia 2,
Slide 49: Operating profit from ordinary activities by business line
Operating profit from ordinary activities by business line in € millions 2007 % H1 % H1 % Δ 08/07 of rev. 2007 of rev. 2008 of rev. Concessions 1,747 38.1% 789 36.7% 899 39.3% +13.9% ASF/Escota (*) 1,002 35.6% 437 33.6% 548** 40.2% +25% Cofiroute 563 54.2% 258 53.7% 266 52.0% +2.9% VINCI Park 131 23
Slide 50: Net profit by business line
Net profit by business line in € millions 2007 % H1 2007 H1 2008 Δ 08/07 of revenue Concessions 680 14.8% 298 343 +15.2% ASF/Escota 353 12.5% 144 203 +41% Cofiroute 280 27.0% 121 126 +4.7% VINCI Park 64 11.3% 27 26 -5.5% Other infrastructure (16) 6 (12) Contracting 843 3.3% 323 362 +12.0% VINCI Ener
Slide 51: Cash flow from operations by business line
Cash flow from operations by business line in € millions 2007 % of % of H1 2007 revenue H1 % of Δ 08/07 revenue 2008 revenue Concessions 2,834 61.9% 1,319 61.4% 1,373 60.1% +4.1% ASF/Escota 1,842 65.5% 852 65.5% 884 64.9% +6.6% Cofiroute 733 70.6% 338 70.3% 360 70.5% +3.8% VINCI Park 194 34.6% 94 34
Slide 52: Cash flow statement (1/2)
Cash flow statement (1/2) in € millions 2007 H1 2007 H1 2008 Cash flow from operations 4,515 1,975 2,182 Change in working capital requirement and current 687 (400) (392) provisions Taxes paid (783) (365) (349) Net interest paid (836) (452) (463) Cash flow from operating activities 3,583 758 977 Net
Slide 53: Investments in operating assets and purchases of concession fixed assets
Investments in operating assets and purchases of concession fixed assets in € millions 2007 H1 2007 H1 2008 Investments in operating assets 816 361 510 VINCI Construction 449 202 274 Eurovia 258 114 168 VINCI Energies 65 28 38 VINCI Concessions 38 14 30 - Holding companies and other 6 2 Proceeds fro
Slide 54: Cash flow statement (2/2)
Cash flow statement (2/2) in € millions 2007 H1 2007 H1 2008 Free cash flow before movements in share (105) (1,210) (136) capital Dividends (713) (433) (523) Capital increases 372 409 290 Share buybacks (939) (891) (223) Movements in share capital (1,280) (915) (456) Net cash flow during the period
Slide 55: Change in net financial debt
Change in net financial debt in € billions Net change: - €0.4bn Dividends Other -0.5 +0.4 Cash -0.2 (16.7) flow Net investments in (16.3) +2.2 operating assets Share -0.1 buybacks -0.5 Net financial -0.5 investments Change in -0.8 Purchases of WCR concession assets -0.4 Interest and tax paid Operati
Slide 56: Net financial debt
Net financial debt Net debt/ 30 June in € millions 30 June 2007 31 Dec. 2007 Δ 08/07 cash flow 2008 Concessions (16,432) (16,540) 5.8x (16,497) 43 ASF + ASF Holding (12,088) (11,839) 6.4x (11,786) 53 Cofiroute (3,098) (3,264) 4.5x (3,270) (6) VINCI Park (833) (857) 4.4x (803) 57 Other infrastructure
Slide 57: Consolidated balance sheet
Consolidated balance sheet in € millions 30 June 2007 31 Dec. 2007 30 June 2008 ASSETS Non-current assets – concessions 25,200 25,489 25,722 Non-current assets – other business lines 3,285 4,455 4,598 Current financial assets 45 63 38 Net cash 3,431 3,594 3,062 Total Assets 31,961 33,601 33,420 EQUI
Slide 58: Gross medium/long-term debt maturity schedule
Gross medium/long-term debt maturity schedule Average maturity of long-term debt (€20.0bn): 7.1 years Concessions: 8.1 years Holding & others: 3.6 years ASF ASF Holding Cofiroute Other concessions Holding companies and other 58
Slide 59: 2008 interim results
2008 interim results Analysts meeting, 1 September 2008 Xavier Huillard Director – Chief Executive Officer Christian Labeyrie Chief Financial Officer