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Vinci: Quarterly Information at 30 September 2015

RUEIL-MALMAISON, France, Oct. 22, 2015 (GLOBE NEWSWIRE) -- PDF VERSION

Rueil Malmaison, 22 October 2015

QUARTERLY INFORMATION AT 30 SEPTEMBER 2015

  • Revenue up 2.8% in the third quarter of 2015
  • Higher proportion of revenue coming from outside France (41%)
  • Firm traffic growth at VINCI Autoroutes and VINCI Airports
  • Upturn in order intake
  • Net financial debt down by €0.8 billion over 12 months
  • Confirmation of 2015 general trends

Consolidated revenue
First nine months First nine months 2015/2014 change
(in € millions) 2015 2014 Actual Like-for-like
Concessions 4,459 4,289 +4.0% +3.8%
VINCI Autoroutes 3,760 3,656 +2.8% +2.8%
VINCI Airports 622 554 +12.3% +11.7%
Other concessions 77 78 (1.4%) (3.5%)
Contracting 23,713 23,959 (1.0%) (6.7%)
VINCI Energies 7,309 6,643 +10.0% (1.5%)
Eurovia 5,774 6,065 (4.8%) (6.4%)
VINCI Construction 10,631 11,251 (5.5%) (10.0%)
VINCI Immobilier 396 347 +14.3% +14.3%
Eliminations and adjustments (389) (419)
Group total* excluding VINCI Park 28,180 28,174 +0.0% (4.9%)
of which:
France
16,582

17,689
(6.3%) (6.4%)
International 11,597 10,486 +10.6% (2.5%)
Europe excluding France 7,165 6,576 +9.0% (2.3%)
International excluding Europe 4,432 3,910 +13.3% (3.0%)
Group total revenue* 28,180 28,433 (0.9%) (4.9%)
Order intake (in € billions) 23.7 22.9 +3.5%
Order book** (in € billions) 28.5 28.7 (0.4%)
Excluding the Tours-Bordeaux HSL project 28.0 27.4 +2.3%
Net financial debt** (in € billions) (13.2) (14.0) +0.8

* Excluding concession subsidiaries' construction work carried out by non-Group companies.
** End of period.

Xavier Huillard, VINCI's Chairman and CEO, announced: "In the third quarter of 2015, VINCI's revenue growth resumed after five consecutive quarterly declines. The Group's overall performance was solid, and the good fit between our business lines smoothed out the mixed evolutions between activities and geographical zones. Continuing the trend seen in previous quarters, Concessions revenue rose due to better-than-expected traffic growth at VINCI Autoroutes and VINCI Airports. The Contracting business was again adversely affected by tough market conditions in France, but supported by faster growth outside France, partly as a result of acquisitions during the last 12 months. The Group now generates 41% of its total revenue from outside France. Net financial debt at 30 September was down sharply year on year. This strong overall performance is the result of our sound business strategy, while an upturn in order intake in the third quarter suggests that a recovery could be underway. Accordingly, VINCI is confident about its ability to hit its full-year guidance."

I. Key figures

VINCI's consolidated revenue in the third quarter of 2015 amounted to €10.3 billion, up 2.8% compared with the third quarter of 2014 on an actual basis (down 1.5% like-for-like). Growth continued in Concessions, with revenue up 3.9% thanks to strong performances at VINCI Autoroutes and VINCI Airports. Contracting revenue, after falling for five consecutive quarters, rose 1.6% on an actual basis, driven by acquisitions at VINCI Energies and general business growth outside France.

Consolidated revenue in the first nine months of the year came to €28.2 billion[1], down 0.9% on an actual basis and stable excluding VINCI Park, which was deconsolidated on 4 June 2014. After stripping out the positive impact of exchange-rate movements (2.0%) and changes in the consolidation scope (2.0%), revenue was down 4.9% like-for-like.

Concessions revenue totalled €4.5 billion, up 3.8% like-for-like. Revenue rose 2.8% at VINCI Autoroutes, where traffic growth continued in the third quarter of 2015, and jumped 11.7% at VINCI Airports, where passenger traffic growth remained strong.

Contracting revenue (VINCI Energies, Eurovia, VINCI Construction) was €23.7 billion, down 1.0% on an actual basis and down 6.7% like-for-like.

In France, the VINCI group's revenue was €16.6 billion, down 6.4% on a constant structure basis (down 7.2% on an actual basis). Of that decline, 2 percentage points were attributable to progress with the Tours-Bordeaux HSL (Sud Europe Atlantique) project, which is now almost 90% complete.

Outside France, consolidated revenue rose 9.8% to €11.6 billion on an actual basis, but fell 2.5% like-for-like. Revenue was supported by the positive effect of exchange-rate movements (5.2%) arising from the decline in the euro, and the larger consolidation scope (7.1%), mainly at VINCI Energies. Revenue from outside France now accounts for more than 41% of the total (37% at 30 September 2014). In Contracting alone, revenue from outside France now accounts for almost 47% of the total (42% at 30 September 2014).

After recovering in the second quarter, Contracting order intake rose 16% in the third to €8.4 billion, with strong growth across all three business lines, both in France (15%) and other markets (18%). Overall, in the first nine months of 2015, order intake grew 3.5% year-on-year to €23.7 billion, although performance varied between business lines with a 5% decline at Eurovia, a 9% increase at VINCI Energies and renewed growth of 5% at VINCI Construction. Order intake fell 3% in France but rose 12% outside France.

The order book at 30 September 2015 amounted to €28.5 billion, up 2.2% since the start of the year and almost unchanged over 12 months. That represents almost 11 months of average business activity in the Contracting business. Adjusted for progress with the SEA project, the order book was up 2.3% year-on-year.

II. Confirmation of 2015 general trends

After the first nine months of the year, VINCI confirms the general trends expected in full-year 2015:

- Near stability in consolidated revenue on an actual basis, as opposed to the previous forecast of a slight decline, taking into account:

  • revenue growth in Concessions[2], driven by a slight acceleration in traffic growth relative to 2014[3];
  • change in Contracting revenue comparable, on an actual basis, to that recorded in the first nine months of 2015, with a decline of around 10% in France and strong growth outside France due to acquisitions and currency effects;
  • increase in revenue generated outside France, which should exceed 40% of total revenue

- Ebit margin growth, including an increase in the contribution from Concessions and a slight erosion of Contracting margin. That erosion is attributable to VINCI Construction, due to lower earnings in France and a decline in business levels in the oil and gas sector.

- Net income attributable to owners of the parent slightly higher than that achieved in 2014 excluding non-recurring items.

III. Analysis of revenue in the first nine months of 2015 by business line

CONCESSIONS: €4,459 million (-1.9% actual; +4.0% actual excluding VINCI Park; +3.8% like-for-like)

VINCI Autoroutes: €3,760 million (+2.8% both actual and like-for-like)

The intercity networks managed by VINCI Autoroutes continued to achieve good traffic growth. After the increases in the first quarter (2.0%) and the second (3.2%), traffic grew 3.1% in the third. Light-vehicle traffic rose 3.0%, boosted by lower fuel prices and also by higher tourist numbers in France, while heavy-vehicle traffic was up 3.8%, partly due to the economic upturn in Spain. In the first nine months of 2015, traffic rose 2.9% (2.8% for light vehicles and 3.1% for heavy vehicles).

VINCI Airports: €622 million (+12.3% actual; +11.7% like-for-like)

Airport traffic continued to grow at a firm pace (10.7% in the third quarter and 11.3%[4] in the first nine months of 2015), due to rapid increases in Portugal (10.7%) and Cambodia (14.8%) and steady growth in France (3.6% excluding Toulon-Hyères) in the first nine months of the year.

CONTRACTING: €23,713 million (-1.0% actual; -6.7% like-for-like)

VINCI Energies: €7,309 million (+10.0% actual; -1.5% like-for-like)

In France, revenue totalled €3,841 million, down 1.8% on an actual basis (down 2.3% like-for-like). Performance varied between client sectors, with growth in manufacturing, a slight decrease in the tertiary sector, and a sharper decline in information and communication technology and infrastructure.

Outside France, revenue rose 27% to €3,468 million, driven by the integration of companies acquired in Europe (Imtech ICT) and the Pacific region (Electrix) in late 2014, and in Brazil (Orteng) in the first half of 2015. Like-for-like, revenue was almost unchanged (down 0.6%), with declines in Germany, the UK, Sweden and Belgium being offset by increases in Switzerland, Central Europe, Southern Europe and Morocco.

VINCI Energies' order book at 30 September 2015 amounted to €6.5 billion, up 2.5% since the start of the year and up 2% over 12 months. That represents eight months of VINCI Energies' average business activity.

Eurovia: €5,774 million (-4.8% actual; -6.4% like-for-like)

In France, revenue was €3,287 million, down 10.7% on an actual basis or down 11.0% like-for-like. The traditional roads business continued to contract because of local authority budget cuts, but the decline was partly offset by growth in rail works (Tours-Bordeaux HSL and East European HSL).

Outside France, revenue rose 4.4% to €2,487 million, up 4.4% on an actual basis including positive currency effects. Like-for-like revenue growth was 0.4%, with declines in Germany, Poland, the United States and Canada being offset by increases in Chile, the UK, Slovakia and the Czech Republic.

Eurovia's order book at 30 September 2015 amounted to €5.6 billion, up 1.8% since the start of the year and down 6.8% over 12 months. That figure represents almost eight months of Eurovia's average activity.

VINCI Construction: €10,631 million (-5.5% actual; -10.0% like-for-like)

In France, revenue totalled €5,534 million, down 12.9% both on an actual basis and like-for-like. The contraction was due to a fall in order intake (around 12% on a rolling 12-month basis), along with the completion of civil engineering and excavation works on the SEA HSL project.

Outside France, revenue was €5,097 million, up 4.0% because of positive currency effects and acquisitions at Soletanche Freyssinet, VINCI Construction International Network and Entrepose. Like-for-like, revenue fell 6.5%, mainly because of falling prices in the oil and gas market. That prompted certain producer countries to reduce their budgets, which affected Sogea Satom's business in Africa. Business levels also fell in the UK at VINCI Plc following the completion of the Nottingham tram project and because of a more selective approach to taking on new orders. Good performances at Soletanche Freyssinet and VINCI Construction Grands Projets partly made up for those declines.

VINCI Construction's order book at 30 September 2015 amounted to €16.4 billion, representing over 13 months of average business activity. Excluding the impact of the SEA project, the order book was up around 4% since the start of the year and over 12 months.

VINCI Immobilier: €396 million (+14.3% actual and like-for-like)

VINCI Immobilier's revenue grew strongly, driven mainly by the upturn in the residential market in France. Revenue was boosted by reservations, which rose by 40% to over 2,700 units, and by the start of works on new programmes. Business levels in commercial property were lower after the completion of several office projects, which have not yet been replaced by new ones.

IV. Financial position

Consolidated net financial debt at 30 September 2015 amounted to €13.2 billion, down €0.1 billion since the start of the year and down €0.8 billion over 12 months.

The seasonal increase in working capital requirement in the Contracting business lines was smaller than in 2014, which helped push down net debt despite an increase in concession investments, due to the implementation of the motorway stimulus plan.

At 30 September 2015, the Group had total liquidity of €9.8 billion, consisting of €3.8 billion of net cash managed and €6.0 billion of unused credit facilities due to expire in 2020.

On 8 October 2015, VINCI SA announced an intention to redeem early all perpetual subordinated bonds in issue, which had an initial nominal amount of €500 million. Those bonds were issued by VINCI SA on 13 February 2006 and are listed on the Luxembourg stock exchange. They will be redeemed on 13 November 2015.

V. Highlights

  • Motorway stimulus plan

Amendments to the concession contracts held by motorway concession companies were approved by decree on 21 August 2015 and published in France's official journal on 23 August 2015. Those amendments notably include the motorway stimulus plan, which was approved by the European Commission on 28 October 2014, along with arrangements for compensating companies for the 2015 tariff freeze and the increase in the "redevance domaniale" state fee in 2013.

  • Commercial successes

New public-private partnerships

- Financing secured and contract finalised for the construction of sections 7 and 8 of the Moscow-St Petersburg motorway under a 27-year public-private partnership (VINCI Concessions 40%, VTB Group 60%).
- Signature of a 30-year public-private partnership for the construction and operation of the motorway bypassing Regina, in the Saskatchewan province, Canada (VINCI Concessions 37.5%, Canadian partners 62.5%).
- 20-year contract for the consortium consisting of VINCI Airports (40%), Aéroports de Paris (45%) and Astaldi (15%) to operate Santiago airport in Chile from 1 October 2015.

Other significant contract wins
- Construction of two tunnel sections as part of the Eastern works package of the Thames Tideway sewerage tunnel in London;
- Fourth "suite rapide" rail renewal operation for SNCF in the Greater Paris area (Ile de France region);
- Renovation of the Samaritaine property complex in Paris;
- Construction of a building connecting the west and south terminals of Paris-Orly airport.

  • New developments

July 2015: formation of a strategic partnership between VINCI and Constructora Conconcreto, a leading player in Colombia in the construction and property development markets.

September 2015: announcement regarding VINCI's acquisition of French cloud builder APX Intégration, which operates in the information and communication technologies sector.

VI. Cancellation of treasury shares
On 19 October 2015, VINCI's Board of Directors decided to cancel 12 million treasury shares (2% of the share capital at 30 September 2015) by 31 December 2015. After that cancellation and based on the number of shares in issue at 30 September 2015, VINCI's capital would consist of 587.8 million shares, including 34.2 million treasury shares (5.8% of the capital).

**********

Upcoming events
10 November 2015 2015 interim ex dividend date
12 November 2015 Payment of the 2015 interim dividend (€0.57 per share)
27 November 2015 VINCI Concessions investor day in Rueil-Malmaison

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About VINCI
VINCI is a global player in concessions and construction, employing more than 185,000 people in some 100 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, above and beyond economic and financial results, we are committed to operating in an environmentally and socially responsible manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities.
www.vinci.com

INVESTOR RELATIONS
Arnaud Palliez
Tel.: +33 1 47 16 45 07
arnaud.palliez@vinci.com


Alexandra Bournazel
Tel.: +33 1 47 16 33 46
alexandra.bournazel@vinci.com

PRESS CONTACT
Paul-Alexis Bouquet
Tel.: +33 1 47 16 31 82
paul-alexis.bouquet@vinci.com

APPENDIXES

APPENDIX A. VINCI CONSOLIDATED REVENUE

Consolidated revenue* in the first nine months of the year - Breakdown by region and business line

At 30 September At 30 September 2015/2014 change
€ in millions 2015 2014 Actual Like-for-like
FRANCE
Concessions** 3,895 3,796 +2.6% +2.6%
VINCI Autoroutes 3,752 3,651 +2.8% +2.8%
VINCI Airports 88 82 +7.0% +7.0%
Other Concessions 56 63 (11.8%) (11.8%)
Contracting 12,662 13,947 (9.2%) (9.4%)
VINCI Energies 3,841 3,913 (1.8%) (2.3%)
Eurovia 3,287 3,682 (10.7%) (11.0%)
VINCI Construction 5,534 6,352 (12.9%) (12.9%)
VINCI Immobilier 396 347 +14.3% +14.3%
Eliminations and adjustments (371) (400)
Total France excl. VINCI Park 16,582 17,689 (6.3%) (6.4%)
VINCI Park - 180
Total France 16,582 17,869 (7.2%) (6.4%)
INTERNATIONAL
Concessions** 564 493 +14.3% +13.0%
VINCI Autoroutes 7 6 +30.3% +13.0%
VINCI Airports 535 472 +13.3% +12.5%
Other Concessions 22 15 +41.4% +27.0%
Contracting 11,051 10,012 +10.4% (3.2%)
VINCI Energies 3,468 2,731 +27.0% (0.6%)
Eurovia 2,487 2,382 +4.4% +0.4%
VINCI Construction 5,097 4,899 +4.0% (6.5%)
Eliminations and adjustments (18) (20)
Total International excl. VINCI Park 11,597 10,486 +10.6% (2.5%)
VINCI Park - 78
Total International 11,597 10,564 +9.8% (2.5%)

* Excluding concession subsidiaries' works revenue.
** Excluding contribution of VINCI Park deconsolidated from 4 June 2014.

Consolidated revenue in the third quarter

Third quarter Third quarter 2015/2014 change
€ in millions 2015 2014 Actual Like-for-like
Concessions* 1,760 1,694 +3.9% +3.9%
VINCI Autoroutes 1,501 1,463 +2.6% +2.6%
VINCI Airports 239 214 +11.7% +12.3%
Other Concessions 21 18 +14.7% +11.6%
Contracting 8,469 8,339 +1.6% (3.6%)
VINCI Energies 2,514 2,287 +9.9% (1.1%)
Eurovia 2,329 2,423 (3.9%) (4.9%)
VINCI Construction 3,626 3,628 (0.1%) (4.4%)
VINCI Immobilier 135 112 +20.4% +20.4%
Eliminations and adjustments (65) (129)
Total revenue* 10,300 10,016 +2.8% (1.5%)
of which:
France


5,961


6,229


(4.3%)


(4.4%)
Europe excl. France 2,719 2,450 +11.0% +2.9%
International excl. Europe 1,619 1,337 +21.1%

* Excluding concession subsidiaries' works revenue.

APPENDIX B. VINCI AUTOROUTES AND VINCI AIRPORTS INDICATORS

Change of VINCI Autoroutes revenue

at 30 September 2015 VINCI Autoroutes Of which:
ASF Escota Cofiroute
Light vehicles +2.8% +3.0% +2.5% +2.6%
Heavy vehicles +3.1% +3.6% +2.4% +2.0%
Total traffic - intercity network +2.9% +3.0% +2.5% +2.5%
Price effects +0.0% +0.3% (0.4%) (0.1%)
A86 Duplex +0.1% - - +0.6%
Toll revenue (€ in millions) 3,684 2,116 538 990
2015/14 change +3.0% +3.3% +2.1% +3.0%
Revenue (€ in millions) 3,760 2,162 547 1,001
2015/14 change +2.8% +3.0% +1.9% +2.9%

Total traffic on motorway concessions[5]

Third quarter Nine months to 30 September
in millions of km travelled 2015 Change 2015 Change
VINCI Autoroutes 15,787 +3.1% 37,904 +2.9%
Light vehicles 14,231 +3.0% 33,158 +2.8%
Heavy vehicles 1,557 +3.8% 4,746 +3.1%
of which:
ASF 9,981 +3.2% 23,572 +3.0%
Light vehicles 8,952 +3.1% 20,428 +3.0%
Heavy vehicles 1,029 +4.4% 3,144 +3.6%
Escota 2,102 +2.8% 5,373 +2.5%
Light vehicles 1,949 +2.8% 4,915 +2.5%
Heavy vehicles 153 +3.6% 459 +2.4%
Cofiroute (intercity network) 3,605 +2.9% 8,728 +2.5%
Light vehicles 3,239 +3.0% 7,611 +2.6%
Heavy vehicles 367 +2.5% 1,118 +2.0%

VINCI Airports' passenger traffic

Third quarter Nine months to 30 September Rolling 12-month period
Thousands of passengers 2015 2015/2014 change 2015 2015/2014 change 2015 2015/2014 change
VINCI Airports 16,214 +10.7% 40,343 +11.3% 50,900 +11.0%
Excl. Toulon Hyères 16,037 +9.5% 39,940 +10.2% 50,496 +10.1%
Of which:
ANA 12,766 +9.2% 30,305 +10.7% 38,014 +10.6%
Lisbon 6,156 +8.4% 15,410 +11.1% 19,680 +11.6%
Cambodia 1,469 +15.6% 4,724 +14.8% 6,336 +14.5%
France 1,978 +18.0% 5,314 +12.2% 6,550 +10.1%
Excl. Toulon Hyères 1,801 +7.4% 4,911 +3.6% 6,146 +3.3%

Including traffic at Toulon Hyères airport from 1 January 2015, managed by VINCI Airports since 1 April 2015.

VINCI Airports' aircraft movements

Third quarter Nine months to 30 September Rolling 12-month period
2015 2015/2014 change 2015 2015/2014 change 2015 2015/2014 change
VINCI Airports 141,542 +9.5 % 373,835 +8.2 % 478,914 +7.2 %
Excl. Toulon Hyères 136,997 +6.0 % 364,943 +5.6 % 470,022 +5.2 %
Of which:
ANA 97,762 +5.7 % 246,057 +6.2 % 314,933 +6.2 %
Lisbon 46,223 +5.3 % 122,782 +6.5 % 159,878 +7.0 %
Cambodia 16,885 +14.0 % 51,655 +8.3 % 68,596 +7.2 %
France 26,895 +22.5 % 76,123 +14.9 % 95,385 +10.6 %
Excl. Toulon Hyères 22,350 +1.8 % 67,231 +1.5 % 86,493 +0.3 %

Including aircraft movements at Toulon Hyères airport from 1 January 2015, managed by VINCI Airports since 1 April 2015.

APPENDIX C: CONTRACTING ORDER BOOK





at 30 September Change at Change
in € billions 2015 2014 over 12 months 31 Dec. 2014 vs 31 Dec. 2014
VINCI Energies 6.5 6.4 +1.9% 6.3 +2.5%
Eurovia 5.6 6.0 (6.8%) 5.5 +1.8%
VINCI Construction 16.4 16.3 +1.1% 16.1 +2.1%
Total Contracting 28.5 28.7 (0.4%) 27.9 +2.2%
of which:
France 14.0 15.1 (7.2%) 14.0 +0.0%
France excl. SEA 13.5 13.8 (2.5%) 13.0 +3.7%
International 14.6 13.6 +7.1% 14.0 +4.3%
Europe excl. France 8.0 7.5 +6.4% 7.5 +6.6%
Rest of the world 6.6 6.1 +8.1% 6.5 +1.7%
Total Contracting excl. SEA 28.0 27.4 +2.3% 26.9 +4.0%

[1] Excluding concession subsidiaries' construction work carried out by non-Group companies. Including construction work performed by external companies on behalf of the Group's concession subsidiaries, in accordance with IFRIC 12, VINCI's revenue totalled €28.7 billion in the first nine months of 2015, stable year-on-year and down 3.9% like-for-like.

[2] Excluding VINCI Park, which was deconsolidated on 4 June 2014

[3] Growth of 2.1% for VINCI Autoroutes and 9.1% for VINCI Airports in full-year 2014

[4] Including 1.1% from the new Toulon-Hyères airport concession won in April 2015

[5] Excluding the A86 Duplex

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Source:VINCI