Earnings Release • Oct 25, 2016
Earnings Release
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Rueil-Malmaison, 25 October 2016
| First nine months | 2016/2015 change | |||
|---|---|---|---|---|
| in € millions | 2016 | 2015 | Actual | Like-for-like1 |
| Concessions | 4,790 | 4,459 | +7.4% | +6.1% |
| VINCI Autoroutes | 3,933 | 3,752 | +4.8% | +4.8% |
| VINCI Airports | 764 | 622 | +22.7% | +12.9% |
| Other concessions | 94 | 85 | +10.9% | +12.4% |
| Contracting | 22,733 | 23,713 | -4.1% | -5.0% |
| VINCI Energies | 7,406 | 7,309 | +1.3% | -1.6% |
| Eurovia | 5,551 | 5,774 | -3.9% | -2.8% |
| VINCI Construction | 9,776 | 10,631 | -8.0% | -8.4% |
| VINCI Immobilier | 438 | 396 | +10.4% | +10.4% |
| Eliminations and adjustments |
(333) | (389) | ||
| VINCI Group total* | 27,628 | 28,180 | -2.0% | -2.9% |
| of which: France | 16,270 | 16,582 | -1.9% | -2.6% |
| International | 11,358 | 11,597 | -2.1% | -3.2% |
| Europe excl. France | 7,040 | 7,165 | -1.8% | +0.3% |
| International excl. Europe | 4,318 | 4,432 | -2.6% | -8.5% |
| Order intake (in € billions) |
23.8 | 23.7 | +1% | |
| Order book** (in € billions) | 27.9 | 28.5 | -2% | |
| Excl. the Tours-Bordeaux HSL (SEA project) | 27.7 | 28.0 | -1% | |
| Net financial debt** (in € billions) | (13.0) | (13.2) | +0.2 |
* Excluding concession subsidiaries' construction work carried out by non-Group companies.
** Period-end.
1 Like-for-like = At constant scope and exchange rates: impact of scope changes neutralised by removing from the 2016 scope companies that joined the Group in 2016 and removing from the 2015 scope, companies that left the Group in 2015 and 2016, while considering the full-year contribution of companies joining the Group in 2015. Currency effect neutralised by applying 2016 exchange rates to 2015 foreign-currency revenues.
This press release is an official VINCI group reporting document.
The business indicators for the first nine months of 2016 confirm the trends previously indicated:
Order intake at the end of September rose slightly compared to the same period las year, stabilising the order book despite the substantial completion of the works on the Tours-Bordeaux high-speed rail line (SEA – Sud Europe Atlantique project).
The Group stepped up development in Concessions with the acquisition – currently being finalised – of LAMSAC, which holds the concession for a section of the Lima ring road in Peru. VINCI was also named preferred bidder – as part of a consortium with Caisse des Dépôts and Crédit Agricole Assurances – for the French State's stake in Aéroports de Lyon, and is the future concession-holder of a motorway in Colombia with its partner Conconcreto.
In Contracting, VINCI continued to make adjustments in units affected by lower business levels, mainly in France and in oil-producing countries, in order to achieve a gradual recovery in margins. At the same time, we started new developments in more buoyant market segments, particularly outside France.
As regards financing, the Group carried out a bond issue on Cofiroute, taking advantage of particularly favourable market conditions.
Based on this good work, VINCI is confirming the guidance previously given regarding full-year 2016: a slight decline in revenue and an increase in operating income and net income.
Consolidated revenue in the first nine months of the year came to €27.6 billion2 , down 2.0% on an actual basis. After adjusting for changes in the consolidation scope (+2.1%) and currency movements (-1.2%), revenue was down 2.9% like-for-like.
Concessions revenue totalled €4.8 billion, up 7.4% on an actual basis or 6.1% like-for-like, due to firm growth in traffic at VINCI Autoroutes (+3.1%) and passenger numbers at VINCI Airports (+10.5%).
Contracting revenue (VINCI Energies, Eurovia, VINCI Construction) was €22.7 billion, down 4.1% on an actual basis and down 5.0% like-for-like.
In France, consolidated revenue was €16.3 billion, down 1.9% on an actual basis (down 2.6% like-for-like). The decline was partly due to progress with the Tours-Bordeaux high-speed rail line project, which is expected to be completed in July 2017.
Outside France, revenue was €11.4 billion, down 2.1% on an actual basis and 3.2% like-for-like. Changes in scope (positive effect of 4.0%), mainly at VINCI Energies and VINCI Airports were partly offset by currency effects (negative effect of 2.9%) caused by the euro's rise against most other currencies.
VINCI's consolidated revenue in the third quarter of 2016 amounted to €10.0 billion, slightly down 2.8% compared with the third quarter of 2015 on an actual basis (down 3.4% like-for-like). Concessions revenue rose 8.4% thanks to very strong performances at VINCI Autoroutes and VINCI Airports. In Contracting, revenue fell 5.1% on an actual basis, with declines of 2.7% at VINCI Energies, 2.6% at Eurovia and 8.3% at VINCI Construction.
2 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 €28.0 billion in the first nine months of 2016, down 2.5% year-on-year and down 3.5% like-for-like.
In Contracting, order intake in the first nine months of 2016 totalled €23.8 billion, slightly more than in the first nine months of 2015. Performance varied between business lines and geographical areas, with increases of 4% at VINCI Energies and 3% at Eurovia, but a 3% fall at VINCI Construction. In France, order intake increased by 4%, but it fell by 3% outside France.
However, the evolutions of the third quarter of 2016 do not accurately reflect these trends because of the high base for comparison, caused by several large orders that were won in summer 2015.
The order book at 30 September 2016 amounted to €27.9 billion, representing a slight decline year-on-year but a 1% increase since the start of the year. The order book represents almost 11 months of average business activity in the Contracting business.
Performance at the end of September 2016 supports the full-year guidance previously given:
The market is stabilising in France in Contracting but remains uncertain in various regions of the world dependent on oil prices, and the competitive environment remains tough. However, productivity efforts made by VINCI companies suggest a slight margin increase.
Under these circumstances, VINCI is confirming its previous guidance regarding full-year 2016, i.e. a slight decline in revenue and an increase in operating income and net income.
Concessions: €4,790 million (up 7.4% actual or 6.1% at constant scope and exchange rates)
Traffic on VINCI Autoroutes' intercity networks remained buoyant in summer 2016. After the 3.3% increase in the first half of the year, traffic rose 2.9% in the third quarter. Light-vehicle traffic increased 3.0%, boosted by good weather conditions and fuel prices, while heavy-vehicle traffic was up 2.4%. In the first nine months of 2016, traffic rose 3.1% (2.9% for light vehicles and 4.3% for heavy vehicles).
Airport traffic continued to grow at a firm pace (11.4%3 in the third quarter and 10.5%3 in the first nine months of 2016), with passenger numbers continuing to rise strongly in Portugal (up 12.4% in the first nine months), Cambodia (up 6.2%), France (up 5.5%) and in the Dominican Republic4 (up 6.3%).
3 Up 10.9% excluding Aerodom in the third quarter 2016 and up 10.9% excluding Aerodom in the first nine months of 2016
4 Aerodom has been consolidated since April 2016
In France, revenue amounted to €3,897 million, up 1.4% on an actual basis including APX in the new technologies of information and communications. Like-for-like, revenue fell 1.9%, with performance varying between sectors. Revenue was almost unchanged in the tertiary sector, but fell slightly in infrastructure and manufacturing, while telecoms saw a sharper decline.
Outside France, revenue rose 1.2% to €3,509 million, driven by the integration of Brazilian company Orteng since March 2015 and J&P Richardson in Australia, since February 2016. Like-for-like, revenue fell 1.2%. Business levels grew at a good pace in Southern Europe, Belgium and the Netherlands, but fell in Germany, Central Europe and outside Europe.
VINCI Energies' order book at 30 September 2016 amounted to €6.2 billion, up 3% since the start of the year but down 4% over 12 months. It represents 7 months of VINCI Energies' average business activity.
In France, revenue totalled €3,129 million, down 4.8% both on an actual basis and like-for-like. The decline was due largely to a fall in rail work on the SEA project, which will soon be completed.
Outside France, revenue was €2,422 million, down 2.6% on an actual basis due to adverse currency effects, but stable like-for-like. Growth in the United States, Chile, Germany and the United Kingdom offset declines in Central Europe, Spain and Canada.
Eurovia's order book at 30 September 2016 amounted to €5.6 billion, up 4% since the start of the year but down 1% over 12 months. It represents almost nine months of Eurovia's average activity.
In France, revenue totalled €5,041 million, down 8.9% both on an actual basis and like-for-like. The contraction was due to the situation in the French construction market, where trends varied between business lines and regions, and to the completion of civil engineering and excavation works on the SEA project; without that effect, revenue would have fallen only 6.5%. VINCI Construction France won its first orders as part of the Grand Paris project, and saw an upturn in activity in the residential construction sector.
Outside France, revenue totalled €4,735 million, down 7.1% or 8.0% like-for-like. As well as the high base for comparison in 2015, business levels outside France continued to suffer from lower oil and gas prices, which mainly affected Entrepose and some branches of Sogea-Satom in Africa.
VINCI Construction's order book at 30 September 2016 amounted to €16.1 billion, representing over 14 months of average business activity. Excluding the impact of the SEA project, the order book was stable relative to the start of the year and down 1% over 12 months.
VINCI Immobilier's revenue rose 10.4%, driven by France's buoyant residential real-estate market. More than 3,500 units were reserved in the first nine months of 2016, up 29% compared with the year-earlier period.
Consolidated net financial debt at 30 September 2016 amounted to €13.0 billion, up €0.6 billion since the start of the year and down €0.2 billion over 12 months.
However, it should be noted that the debt figure does not include the impact of VINCI's latest acquisitions – mainly LAMSAC and Aéroports de Lyon – which are likely to be completed by the end of the year.
At 30 September 2016, the Group had total liquidity of €11 billion, consisting of €5 billion of net cash managed and €6 billion of unused credit facilities due to expire in 2021.
In early September, Cofiroute successfully issues a €1.3 billion bond in two tranches of €650 million each, at 8.5 and 12 years. The coupons were 0.375% for the first tranche and 0.75% for the second.
VINCI, along with its ASF and Cofiroute subsidiaries, have the following credit ratings: "A-; stable"from Standard & Poor's and "A3; stable" from Moody's.
VINCI Construction Grands Projets and EMCC (VINCI Construction subsidiaries), as part of a consortium with dredging company Jan de Nul, won the contract to extend the port of Kingston, Jamaica, worth \$147 million (around €130 million).
Eurovia, via its ETF subsidiary, was selected by SNCF Réseau for its 2018-2022 national rail network renovation programme. The work involved in this contract, consisting of replacing almost 200km of rail lines per year, will be largely automated using a specialist "high output renewal train".
VINCI sold its remaining 24.6% stake in Indigo (formerly VINCI Park) to Ardian Infrastructure and Crédit Agricole Assurances.
VINCI Airports, as part of a consortium with Caisse des Dépôts and Crédit Agricole Assurances, was named as preferred bidder by the French State to acquire its 60% stake in Aéroports de Lyon.
International developments:
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| Diary | |||||
|---|---|---|---|---|---|
| 8 November 2016 | Ex-dividend date for the 2016 interim dividend | ||||
| 10 November 2016 | Payment of the 2016 interim dividend (€0.63 per share) | ||||
| 2 December 2016 | VINCI Energies Institutional Investor Day in Brussels |
**********
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. Based on that approach, VINCI's ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.
www.vinci.com
Arnaud Palliez Tel: +33 (0)1 47 16 45 07 [email protected] Alexandra Bournazel Tel: +33 (0)1 47 16 33 46 [email protected]
Paul-Alexis Bouquet Tel: +33 (0)1 47 16 31 82 [email protected]
| At 30 September |
At 30 September |
2016/2015 change | ||
|---|---|---|---|---|
| in € millions | 2016 | 2015 | Actual | Like-for-like |
| FRANCE | ||||
| Concessions | 4,079 | 3,895 | +4.7% | +4.7% |
| VINCI Autoroutes | 3,933 | 3,752 | +4.8% | +4.8% |
| VINCI Airports | 96 | 88 | +9.0% | +9.0% |
| Other concessions | 51 | 56 | -7.8% | -7.8% |
| Contracting | 12,066 | 12,662 | -4.7% | -5.7% |
| VINCI Energies | 3,897 | 3,841 | +1.4% | -1.9% |
| Eurovia | 3,129 | 3,287 | -4.8% | -4.8% |
| VINCI Construction | 5,041 | 5,534 | -8.9% | -8.9% |
| VINCI Immobilier | 438 | 396 | +10.4% | +10.4% |
| Eliminations and adjustments | (313) | (371) | ||
| Total France | 16,270 | 16,582 | -1.9% | -2.6% |
| INTERNATIONAL | ||||
| Concessions | 711 | 564 | +26.1% | +15.5% |
| VINCI Airports | 668 | 535 | +25.0% | +13.6% |
| Other concessions | 43 | 29 | +46.6% | +52.5% |
| Contracting | 10,666 | 11,051 | -3.5% | -4.1% |
| VINCI Energies | 3,509 | 3,468 | +1.2% | -1.2% |
| Eurovia | 2,422 | 2,487 | -2.6% | -0.2% |
| VINCI Construction | 4,735 | 5,097 | -7.1% | -8.0% |
| Eliminations and adjustments | (19) | (18) | ||
| Total International | 11,358 | 11,597 | -2.1% | -3.2% |
* Excluding concession subsidiaries' works revenue.
| Third quarter | Third quarter | 2016/2015 change | ||
|---|---|---|---|---|
| in € millions | 2016 | 2015 | Actual | Like-for-like |
| Concessions* | 1,908 | 1,760 | +8.4% | +6.6% |
| VINCI Autoroutes | 1,568 | 1,499 | +4.6% | +4.6% |
| VINCI Airports | 309 | 239 | +29.4% | +15.4% |
| Other concessions | 32 | 23 | +38.7% | +42.7% |
| Contracting | 8,038 | 8,469 | -5.1% | -5.4% |
| VINCI Energies | 2,446 | 2,514 | -2.7% | -5.4% |
| Eurovia | 2,268 | 2,329 | -2.6% | -1.4% |
| VINCI Construction | 3,324 | 3,626 | -8.3% | -8.1% |
| VINCI Immobilier | 172 | 135 | +27.6% | +27.6% |
| Eliminations and adjustments | (110) | (65) | ||
| Total revenue* | 10,009 | 10,300 | -2.8% | -3.4% |
| of which: | ||||
| France | 5,922 | 5,961 | -0.7% | -1.4% |
| International | 4,087 | 4,339 | -5.8% | -6.3% |
* Excluding concession subsidiaries' works revenue.
| at 30 September | Change | Change | ||||
|---|---|---|---|---|---|---|
| in € billions | 2016 | 2015 | over 12 months | 31 Dec. 2015 | vs. 31 Dec. 2015 | |
| VINCI Energies | 6.2 | 6.5 | -4% | 6.1 | +3% | |
| Eurovia | 5.6 | 5.6 | -1% | 5.4 | +4% | |
| VINCI Construction | 16.1 | 16.4 | -2% | 16.3 | -1% | |
| Total Contracting | 27.9 | 28.5 | -2% | 27.7 | +1% | |
| of which: | ||||||
| France | 14.4 | 14.0 | +3% | 13.4 | +8% | |
| France excl. SEA | 14.3 | 13.5 | +6% | 13.0 | +10% | |
| International | 13.5 | 14.6 | -7% | 14.3 | -6% | |
| Europe excl. France | 7.8 | 8.0 | -2% | 7.8 | +0% | |
| Rest of the world | 5.7 | 6.6 | -13% | 6.5 | -13% | |
| Total Contracting excl. SEA | 27.7 | 28.0 | -1% | 27.3 | +2% |
| Of which: | |||||||
|---|---|---|---|---|---|---|---|
| at 30 September 2016 | VINCI Autoroutes | ASF | Escota | Cofiroute | Arcour | ||
| Total traffic - intercity network | +3.1% | +3.5% | +3.1% | +2.2% | +5.5% | ||
| Price effects | +1.7% | +1.9% | +1.4% | +1.4% | +1.6% | ||
| A86 Duplex | +0.0% | +0.2% | |||||
| Toll revenue (in € millions) | 3,862 | 2,230 | 563 | 1,028 | 42 | ||
| 2016/15 change | +4.8% | +5.4% | +4.5% | +3.8% | +7.1% | ||
| Revenue (in € millions) | 3,933 | 2,276 | 571 | 1,040 | 42 | ||
| 2016/15 change | +4.8% | +5.3% | +4.5% | +3.9% | +7.0% |
| Third quarter | Nine months to 30 September |
||||
|---|---|---|---|---|---|
| in millions of km travelled | 2016 | Change | 2016 | Change | |
| VINCI Autoroutes | 16,246 | +2.9% | 39,086 | +3.1% | |
| Light vehicles | 14,652 | +3.0% | 34,136 | +2.9% | |
| Heavy vehicles | 1,594 | +2.4% | 4,950 | +4.3% | |
| of which: | |||||
| ASF | 10,292 | +3.1% | 24,389 | +3.5% | |
| Light vehicles | 9,240 | +3.2% | 21,105 | +3.3% | |
| Heavy vehicles | 1,052 | +2.3% | 3,284 | +4.4% | |
| Escota | 2,136 | +1.6% | 5,538 | +3.1% | |
| Light vehicles | 1,980 | +1.6% | 5,055 | +2.9% | |
| Heavy vehicles | 157 | +2.7% | 482 | +5.2% | |
| Cofiroute (intercity network) | 3,711 | +2.9% | 8,916 | +2.2% | |
| Light vehicles | 3,335 | +3.0% | 7,760 | +2.0% | |
| Heavy vehicles | 376 | +2.5% | 1,156 | +3.4% | |
| Arcour | 106 | +7.1% | 243 | +5.5% | |
| Light vehicles | 97 | +7.4% | 216 | +5.4% | |
| Heavy vehicles | 9 | +3.6% | 28 | +7.1% |
* Excluding A86 duplex
| Third quarter | Nine months to 30 September |
Rolling 12-month period | ||||
|---|---|---|---|---|---|---|
| thousands of passengers | 2016 | 2016/2015 change |
2016 | 2016/2015 change |
2016 | 2016/2015 change |
| ANA (Portugal) | 14,447 | 13.2% | 34,074 | +12.4% | 42,717 | +12.4% |
| of which Lisbon | 6,905 | 12.2% | 16,831 | +9.2% | 21,511 | +9.3% |
| France2 | 1,847 | 4.9% | 5,055 | +5.5% | 6,311 | +5.1% |
| Cambodia | 1,602 | 9.0% | 5,015 | +6.2% | 6,762 | +6.7% |
| Aerodom, Dominican Republic2 | 1,202 | 4.4% | 3,585 | +6.3% | 4,678 | +7.3% |
| Total fully consolidated subsidiaries | 19,097 | 11.4% | 47,729 | +10.5% | 60,467 | +10.5% |
| Excluding Aerodom | 17,897 | 11.9% | 44,145 | +10.9% | 55,789 | +10.8% |
| Rennes-Dinard, France | 252 | 13.8% | 585 | +12.2% | 732 | +11.0% |
| Santiago (Chile)2 | 4,826 | 11.1% | 14,100 | +11.2% | 18,648 | +10.8% |
| Kansai, Japan2 | 10,729 | 5.1% | 30,003 | +6.7% | 39,657 | +7.6% |
| Total equity-accounted subsidiaries | 15,807 | 7.0% | 44,688 | +8.2% | 59,037 | +8.6% |
| Total passengers managed by VINCI Airports |
34,904 | 9.3% | 92,417 | +9.4% | 119,505 | +9.6% |
1 Figures at 100%, not taking into account ownership percentages
2 2015 and 2016 including full-year airport traffic
| Third quarter | Nine months to 30 September |
Rolling 12-month period | ||||
|---|---|---|---|---|---|---|
| 2016 | 2016/2015 change |
2016 | 2016/2015 change |
2016 | 2016/2015 change |
|
| ANA (Portugal) | 109,364 | +11.9% | 274,286 | +11.5% | 348,621 | +10.7% |
| of which Lisbon | 51,396 | +11.2% | 134,424 | +9.5% | 173,684 | +8.6% |
| France2 | 24,163 | +3.6% | 67,895 | +1.8% | 85,957 | +1.6% |
| Cambodia | 17,308 | +2.5% | 53,080 | +2.8% | 71,983 | +4.9% |
| Aerodom, Dominican Republic2 | 11,212 | +4.7% | 33,619 | +7.6% | 44,392 | +6.4% |
| Total fully consolidated subsidiaries | 162,047 | +9.0% | 428,880 | +8.4% | 550,953 | +8.1% |
| Excluding Aerodom | 150,835 | +9.3% | 395,261 | +8.5% | 506,561 | +8.2% |
| Rennes-Dinard, France | 4,157 | +16.6% | 10,708 | +13.6% | 13,646 | +10.7% |
| Santiago (Chile)2 | 31,910 | +5.5% | 93,314 | +5.1% | 124,430 | +4.3% |
| Kansai, Japan2 | 81,429 | +2.2% | 236,833 | +5.2% | 314,720 | +6.2% |
| Total equity-accounted subsidiaries | 117,496 | +3.5% | 340,855 | +5.4% | 452,796 | +5.8% |
| Total aircraft movements managed by VINCI Airports |
279,543 | +6.6% | 769,735 | +7.1% | 1,003,749 | +7.0% |
1 Figures at 100%, not taking into account ownership percentages
2 2015 and 2016 including full-year airport traffic
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