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VINCI - 2014 ANNUAL RESULTS

  • EBIT margin increases to 9.4% despite a slight decline in revenue (-2.0% like-for-like)
  • Slight increase in net income excluding non-recurring items: €1.9 billion (+0.4%)
  • Net income attributable to owners of the parent (including non-recurring items, of which the impact of VINCI Park disposal): €2.5 billion
  • Proposed dividend: €2.22 per share (+25%), of which €0.45 exceptional

RUEIL-MALMAISON, France, Feb. 4, 2015 (GLOBE NEWSWIRE) --

Key figures

Euros in millions 2014 2013 2014/2013
change
Revenue (1) 38,703 40,338 (2.0%) (2)
Cash flow from operations (EBITDA) 5,561 5,596 (0.6%)
% of revenue 14.4 % 13.9 %
Operating income from ordinary activities (EBIT) 3,642 3,670 (0.8%)
% of revenue 9.4% 9.1%
Recurring operating income 3,637 3,677 (1.1%)
% of revenue 9.4% 9.1%
Net income excluding non-recurring items 1,906 1,898 +0.4%
% of revenue 4.9% 4.7%
Net income attributable to owners of the parent 2,486 1,962 +26.7%
Diluted earnings per share (in €) 4.43 3.54 +25.1%
Proposed dividend per share (in €) 2.22(3) 1.77
Net financial debt (in € billions) (13.3) (14.1) +0.8
Change in motorway traffic +2.1% +1.1%
Change in airport passenger traffic(4) +9.1% +6.6%
Order book at 31 December (in € billions) 27.9 29.4 (5.0%)

VINCI's Board of Directors, chaired by Xavier Huillard, met on 4 February 2015 to finalise the 2014 financial statements(5) which will be submitted for approval at the Shareholders' General Meeting on 14 April 2015.

Key financial data:

VINCI's overall performance in 2014 was robust: the continued upturn in motorway traffic, the sharp increase in airport traffic and the good momentum in the Group's activities outside Europe allowed the Group to reduce the impacts of the deterioration in the French economic environment that affected the Contracting business from the second quarter as well as the difficulties in UK construction activities. As a result, net income excluding non-recurring items amounted to €1,906 million, slightly up (+0.4%) compared to 2013.

Net income attributable to owners of the parent rose almost 27% to €2,486 million, or €4.43 per share, thanks to the capital gain from the opening of 75% of VINCI Park's capital.

Consolidated revenue totalled €38.7 billion, representing a limited decline of 2% on a like-for-like basis. On an actual basis - taking into account changes in the consolidation scope and particularly the deconsolidation of CFE at the end of 2013 - revenue was down 4.1%.

The Concessions business reported revenue of €5.8 billion, up 4.5% like-for-like (+3.7% actual), due to a good performance at VINCI Autoroutes (+3.5%) and VINCI Airports (+13.8% like-for-like). VINCI Park was deconsolidated on 4 June 2014.

The Contracting business, consisting of VINCI Energies, Eurovia and VINCI Construction, posted revenue of €32.9 billion, down 3.2% like-for-like (-5.0% actual).

In France, Group revenue was down 2.9% like-for-like to €23.9 billion (-4.7% actual).

International revenue was mostly unchanged like-for-like and at constant exchange rates (-0.5%) at €14.8 billion (-3% actual). Revenue outside France accounted for 38.2% of the Group total.

EBITDA(6) totalled €5.6 billion (-0.6%) with the EBITDA margin increasing to 14.4% (13.9% in 2013) thanks to improvements at VINCI Autoroutes and VINCI Airports.

Operating income from ordinary activities (EBIT), which measures the operating performance of fully consolidated subsidiaries, was €3.6 billion (-0.8%), representing an EBIT margin of 9.4% (9.1% in 2013). In Concessions, the EBIT margin rose to 41.7% (38.4% in 2013). In Contracting, the EBIT margin fell to 3.5% (4.1% in 2013), mainly because of losses in UK construction activities. Excluding this impact, margins held up at VINCI Construction, were stable at VINCI Energies and improved at Eurovia.

Operating income totalled €4.2 billion, up 12.7% with respect to 2013. The figure includes €0.6 billion of non-recurring items, mainly consisting of the pre-tax capital gain from the opening up of the capital of VINCI Park.

Free cash flow after investments in Concessions was €2.2 billion (+0.8% versus 2013). After taking into account financial investments - mainly the buyout of non-controlling interests in Cofiroute - and the sale of a 75% stake in VINCI Park, available cash flow was €2.5 billion (as opposed to -€1.1 billion in 2013). €1.6 billion was returned to shareholders through dividend payments and share buybacks(7) in 2014 (€0.9 billion in 2013).

Net financial debt fell €0.8 billion during the year to €13.3 billion at 31 December 2014 (€14.1 billion at 31 December 2013).

In March 2014, Standard & Poor's upgraded its credit ratings on VINCI as well as on its subsidiaries, ASF and Cofiroute, from BBB+ to A- with stable outlook. Moody's confirmed its credit ratings of Baa1 with stable outlook.

At the next Shareholders' General Meeting, the Board of Directors will propose a dividend of €2.22 per share(8) with respect to 2014. Given the interim dividend of €1.00 paid in November 2014, a final dividend of €1.22 will be paid in cash on 29 April 2015 if approved.

The consolidated financial statements for the year ended 31 December 2014 are available on the VINCI website: www.vinci.com/vinci.nsf/en/finance.htm

Operational performance

Traffic at VINCI Autoroutes rose 2.1% in 2014 (light vehicles up 2.2%, heavy vehicles up 1.7%). The positive trend in the first nine months of the year continued in the fourth quarter, and notably renewed growth in heavy-vehicle traffic was confirmed.

VINCI Airports' passenger traffic (46.8 million passengers) grew 9.1%(9) in 2014. There were very strong performances in Portugal (up 9.5% including a 13.3% increase at Lisbon airport) and Cambodia (up 12.8%), along with good momentum in French airports (up 3.5%).

In Contracting, several large projects were completed in 2014, including the new section of the Cairo metro's Line 3 in Egypt, the Triptis Schleiz section of the A9 motorway in Germany, the Liefkenshoek tunnel in the port of Antwerp in Belgium, and the first section of the M11 motorway between Moscow and St Petersburg in Russia. Furthermore, the progress on the HSR Tours Bordeaux (SEA) project neared 80% at the end of 2014.

Several new contracts were added to the order book in 2014. They included the construction of a viaduct, a dam and an interchange for the new coastal highway on Reunion Island, a road maintenance contract for Milton Keynes Council in the UK, the North West Corridor project in Atlanta, USA, the construction of a waste processing centre in North Yorkshire, UK, and the construction of two metro stations and related tunnels in Singapore. The order book stood at €27.9 billion at 31 December 2014 and represented approximately 10 months of average Contracting activity. Over 12 months, it is down 5% (-7% excluding SEA in France; +4% internationally).

Strategic initiatives

  • January 2014: VINCI Autoroutes acquired Colas' 16.67% stake in Cofiroute, taking its interest to 100%.
  • June 2014: opening of 75% of VINCI Park's capital. VINCI Concessions now has a 24.7% stake in VINCI Park, alongside Ardian (37%), Crédit Agricole Assurances (37%) and management. The transaction was based on an enterprise value of €2 billion. It reduced the Group's net financial debt by €1.7 billion and boosted its consolidated net income by almost €0.7 billion.
  • October 2014: VINCI Energies acquired Imtech ICT, the information and communication technologies arm of the Imtech group, and Electrix, an electrical works company operating in Australia and New Zealand. The two acquisitions represent additional annual revenue of around €900 million, all of which is generated outside France.

2015 Trends

VINCI forecasts a slight decrease of consolidated revenue in 2015:

  • In Concessions, VINCI Autoroutes and VINCI Airports should continue to generate traffic growth, but at a slower rate than in 2014 because of the higher base for comparison.
  • In Contracting, VINCI expects that revenue in France will fall between 5% and 10%. That decrease is likely to be offset partly by the Group's international expansion. This should result in an increase in the proportion of Contracting revenue generated outside France, in line with the Group's strategy.

The Group also expects the Contracting business EBIT margin to rise overall because of improved performance in loss-making operations, particularly in the UK.

Overall, net income attributable to owners of the parent, excluding non-recurring items, could be similar to that achieved in 2014.

Parent company results and dividend

Parent company VINCI reported net income of €2,792 million in 2014.

The Board of Directors has decided to propose a 2014 dividend of €2.22 to the Shareholders' General Meeting on 14 April 2015.

Since an interim dividend of €1 per share (of which €0.45 per share is exceptional) was paid in November 2014, the final dividend payment on 29 April 2015 will be €1.22 per share (all cash) if approved.

Diary

Press conference: 08.30 CET on Thursday, 5 February 2015 at Pavillon Ledoyen, 1 avenue Dutuit, 75008 Paris, followed by an Analysts' meeting at 11.00 CET at the same location.

This press release is available in French and English on VINCI's website: www.vinci.com.

Contacts Press Investors
Tel:
Email:
Maxence Naouri
+33 1 47 16 31 82
maxence.naouri@vinci.com

Thomas Guillois
+33 1 47 16 33 46
thomas.guillois@vinci.com
Christopher Welton
+33 1 47 16 45 07
christopher.welton@vinci.com

APPENDIXES

APPENDIX A : CONSOLIDATED FINANCIAL STATEMENTS

Income statement
€ in millions 2014 2013 2014/2013 change
Revenue excluding revenue derived from concession subsidiaries' works 38,703 40,338 (4.1%)
Revenue derived from concession subsidiaries' works 1 340 403 (15.6%)
Total revenue 39,043 40,740 (4.2%)
Operating income from ordinary activities 3,642 3,670 (0.8%)
% of revenue 2 9.4% 9.1%
Share-based payments (IFRS 2) (102) (86)
Profit/(loss) of companies accounted for under the equity method & other 96 93
Recurring operating income 3,637 3,677 (1.1%)
Non-recurring operating items 607 90
Operating income 4,243 3,767 +12.7%
Cost of net financial debt (616) (598)
Other financial income and expense (61) (52)
Income tax expense (1,050) (1,070)
Non-controlling interests (30) (84)
Net income attributable to owners of the parent 2,486 1,962 +26.7%
% of revenue 2 6.4% 4.9%
Net income attributable to owners of the parent excl. non-recurring items 1,906 1,898 +0.4%
% of revenue 2 4.9% 4.7%
Earnings per share (in €) 3 4.43 3.54 +25.1%
Net income excl. non-recurring items per share(in €) 3 3.39 3.42 (0.9%)
Dividend per share (in €) 4 2.225 1.77

1 In application of IFRIC 12, Service Concession Arrangements.
2 % calculated on revenue excluding revenue derived from concession subsidiaries' works.
3 After taking dilutive instruments into account.
4 Proposal to be submitted at the shareholders' meeting on 14 April 2015.
5 Of which €0.45 per share is exceptional

Simplified balance sheet

at 31 December
€ in millions 2014 2013
Non-current assets - Concessions 27,691 29,554
Non-current assets - Contracting and other 8,838 8,434
WCR, provisions and other current debt & receivables (5,962) (6,619)
Capital employed 30,567 31,369
Equity attributable to owners of the parent (14,742) (14,142)
Non-controlling interests (125) (118)
Total equity (14,867) (14,260)
Non-current provisions and other long-term liabilities (2,419) (3,005)
Long-term borrowings (17,286) (17,265)
Financial debt (17,821) (18,212)
Net cash managed 4,540 4,108
Net financial debt (13,281) (14,104)

Cash flow statement

€ in millions 2014 2013
Cash flow from operations before tax and financing costs (EBITDA) 5,561 5,596
Change in operating WCR and current provisions (158) 6
Income taxes paid (1,282) (1,408)
Net interest paid (586) (605)
Dividends received from companies accounted for under the equity method 99 57
Cash flows (used in)/from operating activities 3,633 3,648
Operating investments (net of disposals) (637) (665)
Operating cash flow 2,997 2,983
Growth investments in concessions and PPPs (799) (803)
Free cash flow 2,197 2,180
Net financial investments 585 (3,220)
Other (268) (95)
Net cash flows before movements in share capital 2,515 (1,135)
Increases in share capital and other 442 783
Share buy-backs (810) (222)
Dividends paid (1,287) (1,072)
Net cash flows for the period 860 (1,647)
Other changes (38) 70
Change in net financial debt 823 (1,577)
Net financial debt at beginning of period (14,104) (12,527)
Net financial debt at end of period (13,281) (14,104)

APPENDIX B: ADDITIONAL INFORMATION ON THE CONSOLIDATED REVENUE

Revenue by business line

2014/2013 change
€ in millions 2014 2013 Actual Like-for-like
Concessions 5,823 5,616 +3.7% +4.5%
VINCI Autoroutes 4,755 4,596 +3.5 % +3.5%
VINCI Airports 717 315 +127.4% +13.8%
VINCI Park* 259 607 (57.3%) +3.1%
Other Concessions 92 98 (6.2%) (6.2%)
Contracting 32,916 34,636 (5.0%) (3.2%)
VINCI Energies 9,309 9,248 +0.7% (2.5%)
Eurovia 8,188 8,613 (4.9%) (4.6%)
VINCI Construction 15,419 16,775 (8.1%) (2.8%)
VINCI Immobilier 587 816 (28.1%) (10.8%)
Eliminations and adjustments (623) (731)
Total revenue** 38,703 40,338 (4.1%) (2.0%)
of which :
France
23,936 25,111 (4.7%) (2.9%)
Europe excl. France 9,245 9,823 (5.9%) (0.5%)
International excl. Europe 5,522 5,403 +2.2%

* VINCI Park fully consolidated until 4 June 2014.
** Excluding concession subsidiaries' works revenue.

Revenue for the fourth quarter

2014/2013 change
€ in millions 2014 2013 Actual Like-for-like
Concessions 1,276 1,392 (8.3%) +4.7%
VINCI Autoroutes 1,090 1,062 +2.7% +2.7%
VINCI Airports 163 148 +10.1% +21.7%
VINCI Park 0 160 (100%) (100%)
Other Concessions 23 22 +2.3% +2.3%
Contracting 8,958 9,362 (4.3%) (5.0%)
VINCI Energies 2,666 2,506 +6.3% (2.4%)
Eurovia 2,124 2,368 (10.3%) (10.8%)
VINCI Construction 4,169 4,487 (7.1%) (3.2%)
VINCI Immobilier 240 244 (1.8%) +25.9%
Eliminations and adjustments (204) (195)
Total revenue* 10,270 10,802 (4.9%) (3.4%)
of which:
France
6,066 6,558 (7.5%) (4.9%)
Europe excl. France 2,609 2,731 (4.5%) (1.0%)
International excl. Europe 1,594 1,514 +5.3%

* Excluding concession subsidiaries' works revenue.

Revenue* by geographical area and by business line

2014/2013 change
€ in millions 2014 2013 Actual Like-for-like
FRANCE
Concessions 5,101 5,191 (1.7%) +3.2%
VINCI Autoroutes 4,736 4,581 +3.4% +3.4%
VINCI Airports 105 99 +6.0% +6.0%
VINCI Park 180 423 (57.4%) +3.9%
Other Concessions 81 88 (7.7%) (7.7%)
Contracting 18,842 19,806 (4.9%) (4 .6%)
VINCI Energies 5,258 5,455 (3.6%) (3.0%)
Eurovia 4,886 5,229 (6.6%) (6.6%)
VINCI Construction 8,698 9,122 (4.6%) (4.4%)
VINCI Immobilier 587 816 (28.1%) (10.8%)
Eliminations and adjustments (595) (701) ns ns
Total France 23,936 25,111 (4.7%) (2.9%)
INTERNATIONAL
Concessions 722 426 +69.5% +13.8%
VINCI Autoroutes 20 15 +28.4% +34.3%
VINCI Airports 612 217 ns +15.3%
VINCI Park 78 183 (57.2%) +1.2%
Other Concessions 11 11 +5.9% +5.9%
Contracting 14,074 14,830 (5.1%) (1.1%)
VINCI Energies 4,051 3,793 +6.8% (1.9%)
Eurovia 3,302 3,384 (2.4%) (1.5%)
VINCI Construction 6,721 7,653 (12.2%) (0.5%)
Eliminations and adjustments (28) (30) ns ns
Total International 14,767 15,226 (3.0%) (0.5%)

* Excluding concession subsidiaries' works revenue.

APPENDIX C: OTHER INFORMATION BY BUSINESS LINE

Operating income from ordinary activities (EBIT) by business line/operating income

€ in millions 2014 % of revenue* 2013 % of revenue* 2014/2013 change
Concessions 2,428 41.7% 2,155 38.4% +12.6%
VINCI Autoroutes 2,149 45.2% 2,031 44.2% +5.8%
VINCI Airports 231 32.2% 65 20.5% +257%
VINCI Park 86 33.2% 114 18.7% (24.4%)
Other Concessions (38) (54) (29.2%)
Contracting 1,148 3.5% 1,427 4.1% (19.6%)
VINCI Energies 519 5.6% 517 5.6% +0.3%
Eurovia 249 3.0% 230 2.7% +8.3%
VINCI Construction 380 2.5% 680 4.1% (44.1%)
VINCI Immobilier 28 4.7% 59 7.2% (52.6%)
Holding companies 38 29
Operating income from ordinary activities (EBIT) 3,642 9.4% 3,670 9.1% (0.8%)
Share-based payments (IFRS 2) (102) (86)
Income/(loss) of companies accounted for under the equity method and other 96 97
Recurring operating income 3,637 9.4% 3,677 9.1% (1.1%)
Non-recurring operating items 607 90
Operating income 4,243 11.0% 3,767 9.3% +12.7%

* Excluding concession subsidiaries' works revenue.

Net income attributable to owners of the parent, by business line

€ in millions 2014 2013 2014/2013 change
Concessions 1,779 934 +90.4%
VINCI Autoroutes 917 798 +15.0%
VINCI Airports 154 151 +2.4%
VINCI Park 45 69 (35.5%)
Other Concessions and holding companies 663 (83) ns
Contracting 588 963 (39.0%)
VINCI Energies 330 318 +3.7%
Eurovia 73 121 (40.0%)
VINCI Construction 186 524 (64.6%)
VINCI Immobilier 36 37 (2.8%)
Holding companies 84 27
Net income attributable to owners of the parent 2,486 1,962 +26.7%
Of which non-recurring items 581 64
Net income attributable to owners of the parent excl. non-recurring items 1,906 1,898 +0.4%

EBITDA by business line

€ in millions 2014 % of revenue* 2013 % of revenue* 2014/2013 change
Concessions 3,823 65.6% 3,533 62.9% +8.2%
VINCI Autoroutes 3,390 71.3% 3,231 70.3% +4.9%
VINCI Airports 342 47.7% 102 32.5% +234%
VINCI Park 93 36.0% 209 34.4% (55.4%)
Other Concessions (2) (10) (76.4%)
Contracting 1,624 4.9% 1,898 5.5 % (14.5%)
VINCI Energies 562 6.0% 536 5.8% +4.9%
Eurovia 437 5.3% 431 5.0% +1.3%
VINCI Construction 625 41% 931 5.6% (32.9%)
VINCI Immobilier 26 4.5% 58 7.1% (54.7%)
Holding companies 88 108
EBITDA 5,561 14.4% 5,596 13.9% (0.6%)

* Excluding concession subsidiaries' works revenue.

Net financial debt by business line

€ in millions 2014 2013 2014/2013 change
Concessions (19,920) (20,010) +90
VINCI Autoroutes (16,807) (15,387) (1,420)
VINCI Airports (2,967) (2,927) (41)
VINCI Park (0) (673) +672
Other Concessions (144) (1,023) +878
Contracting 1,606 2,129 (524)
VINCI Energies (264) (64) (200)
Eurovia 133 26 +107
VINCI Construction 1,736 2,167 (431)
Holding companies and miscellaneous 5,033 3,777 1,256
Net financial debt (13,281) (14,104) +823

APPENDIX D: VINCI AUTOROUTES ET VINCI AIRPORTS INDICATORS

Change of VINCI Autoroutes 2014 revenue

VINCI Autoroutes Of which:
ASF Escota Cofiroute
Light vehicles +2.2% +2.3% +1.6% +2.2%
Heavy vehicles +1.7% +2.0% +0.6% +1.4%
Traffic (Intercity network) +2.1% +2.3% +1.5% +2.1%
A86 Duplex +0.1% - - +0.2%
Tariff effects +1.1% +1.2% +0.9% +0.8%
Toll revenue (€ in millions) 4,637 2,648 685 1,257
2014/2013 change +3.3% +3.5% +2.4% +3.1%
Total revenue (€ in millions) 4,755 2,724 697 1,284
2014/2013 change +3.5% +3.7% +2.3% +3.4%

Total traffic on motorway concessions (10)

Fourth quarter Total at 31 December
Millions of km travelled 2014 2013 Change 2014 2013 Change
VINCI Autoroutes 10,646 10,420 +2.2% 47,500 46,501 +2.1%
Light vehicles 9,123 8,914 +2.3% 41,372 40,476 +2.2%
Heavy vehicles 1,524 1,506 +1.1% 6,128 6,025 +1.7%
of which:
ASF 6,504 6,350 +2.4% 29,379 28,723 +2.3%
Light vehicles 5,496 5,357 +2.6% 25,336 24,757 +2.3%
Heavy vehicles 1,009 993 +1.5% 4,044 3,966 +2.0%
Escota 1,537 1,519 +1.2% 6,778 6,675 +1.5%
Light vehicles 1,394 1,376 +1.3% 6,187 6,088 +1.6%
Heavy vehicles 143 144 (0.3%) 591 588 +0.6%
Cofiroute (intercity network) 2,540 2,488 +2.1% 11,056 10,828 +2.1%
Light vehicles 2,177 2,127 +2.4% 9,597 9,389 +2.2%
Heavy vehicles 363 361 +0.6% 1,459 1,439 +1.4%

VINCI Airports' passenger traffic

Fourth quarter Total at 31 December
Thousands of people 2014 2013 2014/2013 change* 2014 2013 2014/2013 change*
VINCI Airports * 10,557 9,640 +9.5% 46,790 42,889 +9.1%
of which:
ANA (Portugal) 7,709 7,001 +10.1% 35,088 32,039 +9.5%
Lisbon 4,270 3,762 +13.5% 18,142 16,009 +13.3%
Cambodia 1,612 1,420 +13.5% 5,728 5,077 +12.8%
France 1,236 1,219 +1.4% 5,973 5,773 +3.5%

* pro forma change, including ANA for all of 2013.

VINCI Airports' aircraft movements

Fourth quarter Total at 31 December
2014 2013 2014/2013 change* 2014 2013 2014/2013 change*
VINCI Airports * 105,079 101,098 +3.9% 450,710 428,080 +5.3%
of which:
ANA (Portugal) 68,876 64,813 +6.3% 300,567 284,163 +5.8%
Lisbon 37,096 34,121 +8.7% 152,333 142,333 +7.0%
Cambodia 16,941 16,279 +4.1% 64,630 58,743 +10.0%
France 19,262 20,006 (3.7%) 85,513 85,174 +0.4%

* pro forma change, including ANA for all of 2013.

APPENDIX E: CONTRACTING ORDER BOOK

at 31 December
€ in billions 2014 2013 2014/2013 change
VINCI Energies 6.3 6.4 (0.0)
Eurovia 5.5 5.8 (0.3)
VINCI Construction 16.1 17.3 (1.2)
Total Contracting 27.9 29.4 (1.5)
of which:

France 14.0 16.0 (2.0)
France ex- SEA 13.0 13.9 (0.9)
International 14.0 13.4 +0.6
Europe excl. France 7.5 7.8 (0.3)
Rest of the world 6.5 5.6 +0.9
Total Contracting excl. SEA 26.9 27.3 (0.3)

(1) Excluding concession subsidiaries' construction work carried out by non-Group companies

(2) Like-for-like

(3) Of which €0.45 per share exceptional

(4) On a pro forma basis including ANA for all of 2013

(5) The consolidated financial statements have been audited, and the Statutory Auditors' report is in the process of being published.

(6) Cash flow from operations before tax and net financing costs.

(7) Net of capital increases.

(8) Including an exceptional dividend of €0.45 per share.

(9) On a pro forma basis including ANA for all of 2013.

(10) excluding A86 Duplex

VINCI - PR 2014 annual results http://hugin.info/165789/R/1891801/669968.pdf

HUG#1891801

Source:VINCI