Vinci: 2010 Annual Financial Statements

Mar 01, 2011, 12:11 ET from Vinci

    Return To growth

      2010 Achievements:

      - Net Profit up 11.3% at EUR1,776 Million

      - Higher Dividend: EUR1.67 Per Share

      - Successful Integration of New Acquisitions: Cegelec, Faceo, Tarmac

      - Order Book: +15%

      - Debt Well Controlled (Unchanged Over 12 Months) and Financial
        Situation Strengthened

      - 2011 Objectives:

      - Growth in Revenue of at Least 5%

      - Improvement in Concessions EBITDA Margin

      - Maintenance of Contracting's Margin at Current High Level

    Key figures (in EUR millions)                  2009        2010   change
                                             restated[1]               in %
    Revenue[2]                                   30,741     33,376     +8.6%
    Operating profit from ordinary
    activities                                    3,100      3,434    +10.8%
    as a % of revenue                              10.1%      10.3%
    Net profit attributable to owners of the
    parent                                        1,596      1,776    +11.3%
    as a % of revenue                               5.2%       5.3%
    Earning per share (in EUR)[3]                  3.21       3.30     +2.9%
    Dividend per share (in EUR)                    1.62       1.67[4]  +3.1%
    Cash flow from operations[5]                  4,771      5,052     +5.9%
    Net financial debt                          (13,130)   (13,060)     +70
    Capital employed                             25,005     27,766   +2,761
    ROCE (Return on capital employed)[6]            9.0%       9.3%
    Order book at 31 December (in EUR
    billions)                                      22.6       25.9      +15%

VINCI's Board of Directors, chaired by Xavier Huillard, met on 1 March 2011 to finalise the annual financial statements[7] for the year ended 31 December 2010 prior to submitting them for approval at the next Shareholders' Meeting on 2 May 2011. The Board also examined the outlook for 2011.

VINCI achieved a solid performance in 2010, marked by significant growth in revenue and profit.

The Group's 2010 consolidated revenue amounted to EUR33.4 billion, up 8.6%. This increase was attributable to the impact of the external growth operations carried out in 2010, the good momentum of motorway concessions and the resilience of the contracting businesses.

The 4.3% increase in concessions revenue reflects in particular the positive traffic trend on VINCI Autoroutes' motorways.

In contracting (Energies, Eurovia, VINCI Construction), the return to growth was confirmed during the second half of the year.

The integration of Cegelec and Faceo broadened the scope of the Energies business line, which accounted for almost 25% of the Group's total revenue. The business line also includes a new division, VINCI Facilities, which is positioned in the buoyant facilities management market.

These operations are part of the strategy VINCI launched several years ago aimed at international growth, strengthening the Group's technological expertise and increasing business that generates recurring revenue streams.

Over 37% of VINCI's revenue was generated outside France (43% in contracting).

Revenue growth was accompanied by a 5.9% increase in cash flow from operations before cost of financing and tax (EBITDA) to almost EUR5.1 billion, which represented 15.1% of revenue. VINCI Autoroutes' EBITDA/revenue ratio exceeded the previously set target of stability, increasing from 68.5% in 2009 to 68.8% in 2010.

Operating profit from ordinary activities (EBIT) rose 10.8% to EUR3.4 billion and represented 10.3% of revenue (10.1% in 2009). In contracting, the EBIT/revenue ratio improved from 4.3% in 2009 to 4.5% in 2010.

Net profit attributable to owners of the parent increased 11.3% to EUR1,776 million and represented 5.3% of revenue, compared with 5.2% in 2009. In addition to the good performance of all of the Group's businesses, there was a reduction in the cost of financing, attributable to keeping debt under control debt and to lower interest rates.

Net financial debt remained stable over the 12-month period, amounting to EUR13.1 billion at 31 December 2010. The EUR2.8 billion operating cash flow covered all of the French motorway growth and development capex, external growth transactions as well as dividends paid during the year, most of which, unlike the previous year, were paid in cash. The Group's financial situation was strengthened, with equity standing at the same level as net financial debt.

There were numerous commercial successes during 2010, significant contracts being won by exploiting the synergies between VINCI's concessions and contracting businesses. Examples include the high-speed rail line between Tours and Bordeaux (SEA), the new Notre-Dame-des-Landes airport in Nantes, Nice Stadium and the first section of the Moscow-St. Petersburg motorway. Thanks to their geographical redeployment into areas offering growth potential and their technical expertise, contracting subsidiaries were able to take advantage of new opportunities that opened up in France and other countries.

The order book for contracting (Energies, Eurovia, VINCI Construction) stood at EUR25.9 billion at 31 December 2010, up almost 15% over the year (up 3% on a constant consolidation scope basis). This figure does not include the major concession contracts mentioned above for which completion of financing arrangements is under way.

2011 outlook

VINCI has moved into 2011 with the strengths and determination needed to go on building its business activities in a balanced manner by continuing to improve their overall performance.

In 2011, the Group expects revenue to grow at least 5%.

The motorway concessions should see revenue growth of about 4%, driven by a moderate increase in traffic, the full opening of the A86 Duplex and the impact of toll increases as defined in their contracts.

Contracting businesses, meanwhile, in addition to their sound order book, should benefit in 2011 from the full-year operation of acquisitions made in 2010, the start-up of works on recently won major concession projects and an improvement in the construction and energy markets, particularly in France.

Against this backdrop, VINCI has set itself the objective of achieving a further improvement in net profit, close to the expected growth in revenue. This objective takes account of a slight improvement in VINCI Autoroutes' EBITDA/revenue ratio and contracting businesses maintaining their EBIT/revenue ratio at the high level achieved in 2010.

Annual results[8]

Revenue growth of almost 9%

VINCI's 2010 consolidated revenue amounted to EUR33.4 billion[9], up 8.6% compared with 2009. This increase was attributable to the positive impacts of external growth (8.2%) and exchange rate fluctuations (1.3%). On a comparable consolidation scope basis, revenue declined 0.9%.

Concessions revenue rose 4.3% (+3.5% on a comparable structure basis) to EUR5.1 billion, thanks mainly to VINCI Autoroutes (+4.0%).

Revenue generated by the Contracting business lines (Energies, Eurovia, VINCI Construction) increased 9.4% to EUR28.2 billion, driven by external growth. On a comparable structure basis, revenue declined 1.7% compared with 2009.

In France, revenue was EUR20.9 billion, up 6.7% (down 0.3% on a constant consolidation scope basis). Concessions revenue rose 3.8%, while that of contracting rose 7.2%.

Outside France, revenue amounted to EUR12.5 billion, up 11.9% (down 1.8% on a constant consolidation scope and exchange rate basis). Revenue generated outside France accounted for 37% of total Group revenue (43% in contracting).

    Revenue by entity

                                                             2010/2009 change
    (in EUR millions)             2009 restated      2010   Actual Comparable
    Concessions                           4,889     5,097    +4.3%      +3.5%
    VINCI Autoroutes                      4,095     4,259    +4.0%      +4.0%
    VINCI Park                              576       596    +3.5%      +0.7%
    Other concessions                       218       242   +11.0%      +3.0%
    Contracting                          25,729    28,150    +9.4%      -1.7%
    Energies                              4,862     7,102   +46.1%      -0.3%
    Eurovia                               7,851     7,930    +1.0%      -1.7%
    Construction                         13,016    13,118    +0.8%      -2.2%
    Property                                558       603    +8.0%      +8.0%
    Internal eliminations                 (435)     (475)        -          -
    Total revenue*                       30,741    33,376    +8.6%      -0.9%
    Concession subsidiaries' works          813       913   +12.3%     +12.3%
    Internal eliminations                 (376)     (286)        -          -
    Concession subsidiaries'               437       627    +43.6%     +43.5%
    revenue derived from works
    carried out by non-Group
    Total revenue (IFRIC 12)**          31,178    34,003     +9.1%      -0.3%

* Excluding concession subsidiaries' revenue derived from works carried out by third parties (IFRIC 12).

** Including concession subsidiaries' revenue derived from works carried out by third parties (IFRIC 12).

Improvement in operating margins/Increase in net profit

2010 operating profit from ordinary activities (EBIT) amounted to EUR3,434 million, up 10.8% compared with 2009 (EUR3,100 million). It represented 10.3% of revenue, as against 10.1% in 2009.

    Operating profit from ordinary activities (EBIT) by entity

                                    2009         %                  %   in %
    (in EURmillions)            restated  revenue*    2010   revenue*   10/09
    Concessions                    1,937     39.6%   2,094      41.1%   +8.1%
    VINCI Autoroutes               1,793     43.8%   1,923      45.2%   +7.3%
    VINCI Park                        98     17.0%     111      18.6%  +13.6%
    Other concessions &               46         -      60          -       -
    holding cos.
    Contracting                    1,107      4.3%   1,257       4.5%  +13.5%
    Energies                         266      5.5%     387       5.4%  +45.3%
    Eurovia                          309      3.9%     285       3.6%   -7.6%
    Construction                     532      4.1%     584       4.5%   +9.8%
    Property                          51      9.1%      76      12.6%  +50.8%
    Holding cos.                       5                 7                  -
    Operating profit from          3,100     10.1%   3,434      10.3%  +10.8%
    ordinary activities
    Share-based payment               10               (5)                  -
    expense (IFRS 2),
    profit/(loss) of
    equity-accounted companies
    and goodwill impairment
    Operating profit               3,110     10.1%   3,429      10.3%  +10.2%

* Excluding concession subsidiaries' revenue derived from works carried out by third parties (IFRIC 12).

The concessions EBIT amounted to EUR2,094 million (41.1% of revenue), against EUR1,937 million in 2009 (39.6% of revenue). This 8.1% increase is attributable to the improvement in VINCI Autoroutes' EBIT, which was due to an increase in toll revenue, control of operating expenses and the positive impact on the amortisation expense of the one-year extension to the contracts as part of the environmental investment programme ("Green motorway package") agreed at the beginning of 2010.

The contracting businesses recorded at 13.5% increase in EBIT in 2010 to EUR1,257 million (EUR1,107 million in 2009) and an improvement in their EBIT margin, which stood at 4.5% of revenue (4.3% in 2009). This performance confirms the relevance of the strategy aimed at strengthening highly technical businesses and expanding in the international arena. The main acquisitions during the year (Cegelec, Faceo and Tarmac) contributed EUR94 million to 2010 EBIT.

The Energies business line's EBIT increased 45% to EUR387 million (EUR266 million in 2009). It included a contribution of EUR88 million from Cegelec and Faceo. Overall, despite the integration costs of new acquisitions, the business line's EBIT margin remained virtually flat at 5.4% compared with 5.5% in 2009.

Eurovia's EBIT was EUR285 million, down 7.6% against 2009 (EUR309 million). There was only a limited decline in the EBIT margin: 3.6% of revenue in 2010 against 3.9% in 2009. It was affected by the difficult weather conditions at the beginning and end of the year in France and the rest of Europe, as well as by industrial action in October in France.

VINCI Construction's EBIT amounted to EUR584 million (4.5% of revenue), up 10% against 2009 (EUR532 million and 4.1% of revenue). EBIT margins remained high in most divisions both in France and elsewhere, with an improvement at Sogea Satom and Entrepose Contracting.

VINCI Immobilier's EBIT was EUR76 million, up more than 50%. Business was particularly brisk in the residential sector with about 4,200 units sold in 2010 (+34%).

After taking account of share-based payment expense (IFRS 2), goodwill impairment expense and VINCI's share of the profit or loss of equity-accounted companies, operating profit was EUR3,429 million in 2010. It represented EUR10.3% of revenue, up 10.2% against 2009 (EUR3,110 million).

The cost of net financial debt fell EUR78 million to EUR636 million (against EUR714 million in 2009). This improvement was due to lower interest rates and a reduction in average outstanding debt.

Other financial income and expenses amounted to a net expense of EUR45 million, which included a provision for financial risk associated with VINCI's holdings in two concession companies in Greece, namely Aegean Motorway and Olympia Odos.

Net profit attributable to owners of the parent was EUR1,776 million in 2010, up 11.3% against 2009 (EUR1,596 million).

    Diluted earnings per share amounted to EUR3.30, up 2.9% (EUR3.21 per
share in 2009).
    Net profit by entity

                                                                  change in %
    (in EUR millions)                    2009 restated      2010      10/09
    Concessions                                    779       875       +12.4%
    VINCI Autoroutes                               733       837       +14.1%
    VINCI Park                                      41        61       +47.3%
    Other concessions and concession
    holding cos.                                     5       (22)           -
    Contracting                                    801       836        +4.4%
    Energies                                       190       242       +27.3%
    Eurovia                                        206       187        -9.0%
    Construction                                   405       407        +0.4%
    Property                                        34        48       +40.2%
    Holding cos.                                   (18)       17            -
    Net profit attributable to owners of         1,596     1,776       +11.3%
    the parent

Finance and balance sheet items

Cash flow from operations before cost of financing and tax (EBITDA) increased 5.9% to EUR5,052 million in 2010, compared with EUR4,771 million in 2009. It represented 15.1% of revenue, against 15.5% in 2009.

In concessions, the main contributor to the Group's EBITDA (63% of total), it increased 3.5% to EUR3.2 billion, representing 62.7% of revenue (against EUR3.1 billion in 2009 and 63.2% of revenue). VINCI Autoroutes' EBITDA rose 4.4% to EUR2,929 million, representing 68.8% of revenue (against EUR2,807 million and 68.5% of revenue in 2009).

EBITDA for contracting business activities increased 14.6% to EUR1,766 million (EUR1,541 million in 2009). The ratio of EBITDA to revenue was 6.3%, up against the 2009 figure (6.0% of revenue).

The net change in working capital requirement and current provisions was an outflow of EUR78 millions in 2010, compared with an inflow of EUR524 million in 2009. This result, which concerned mainly VINCI Construction, was due in particular to the net use of advances on some major projects, the continued application of the LME Act in France (shorter supplier payment terms) and the increase in receivables generated by the good level of business during the fourth quarter.

After taking account of investments in operating assets net of disposals of EUR595 million, down 3% against 2009 (EUR616 million), operating cash flow[10] was EUR2,790 million (EUR3,320 million in 2009).

Growth investments in concessions amounted to EUR871 million (EUR1,044 million in 2009). This figure included EUR759 million at VINCI Autoroutes (net of the EUR100 million subsidy received by Cofiroute in respect of the A86 Duplex and application of the EU tunnel directive) and EUR112 million for other projects under construction.

Free cash flow was EUR1,919 million (against EUR2,276 million in 2009), of which EUR946 million was generated by concessions and EUR903 million by contracting.

Net financial investments (including the net debt of acquired companies) represented EUR2,425 million (EUR96 million in 2009). This figure included the total investment in Cegelec amounting to EUR1,626 million, of which EUR1,385 million for the acquisition of shares paid for by VINCI shares.

Dividends paid during the year totalled EUR965 million. This was made up of EUR590 million in respect of VINCI SA's 2009 final dividend and EUR282 million in respect of the 2010 interim dividend paid in December.

Consolidated capital employed amounted to EUR27.8 billion at 31 December 2010, up 11% compared with the end of 2009. This change was due mainly to the acquisitions made in 2010. Concessions accounted for 90% of total capital employed. The ROCE (Return on capital employed) was 9.3% in 2010, compared to 9.0% in 2009.

Consolidated equity, including non-controlling interests, was EUR13.0 billion at 31 December 2010, compared with EUR10.5 billion at 31 December 2009.

Net financial debt was EUR13.1 billion at 31 December 2010. On the whole, it was flat over the entire year. Net financial debt of concessions amounted to EUR15.6 billion, while contracting business activities recorded a net financial surplus of almost EUR3.0 billion.

The Group's liquidity remained very high, with EUR12.6 billion at 31 December 2010. It included net cash managed of EUR5.6 billion at the end of December and EUR7 billion in unused confirmed bank credit facilities.

The Group's financial situation was further strengthened. The net financial debt/equity ratio fell from 1.3 at 31 December 2009 to 1.0 at 31 December 2010. Net financial debt/EBITDA was 2.6 at 31 December 2010 compared with 2.8 at the end of 2009.

Parent company results

The parent company's net profit for 2010 was EUR1,849 million, compared with EUR1,641 million in 2009.


The Board of Directors has decided to propose a dividend of EUR1.67 per share in respect of 2010 at the next Shareholders' Meeting. This represents a 3.1% increase over the 2009 dividend of EUR1.62 per share.

Following payment of the interim dividend of EUR0.52 per share in December, the final dividend to be paid on 9 June will be EUR1.15 per share. This final dividend will be paid in cash only. The ex-dividend date has been set as 6 June 2011.

Board of Directors

At the Shareholders' Meeting of 2 May 2011, the Board of Directors will propose the renewal of the terms of office of three directors: Mrs Pascale Sourisse and Mr Robert Castaigne, members of the Audit Committee, and Mr Jean-Bernard Levy, chairman of the Remuneration Committee.

In addition, it will propose the appointment of a new director representing employee shareholders following the resignation of Mr Denis Vernoux, who will continue as director until the next Shareholders' Meeting.


Analysts meeting

08.30 on Wednesday, 2 March: Pavillon Ledoyen, 1 avenue Dutuit, 75008 Paris.

This press release and the presentation to analysts are available in French and English on VINCI's website at

[1] After application of the change in accounting policy related to consolidating jointly controlled entities using the equity method in accordance with IAS 31 "Interests in Joint Ventures".

[2] Excluding concession subsidiaries' revenue derived from works carried out by third parties; revenue calculated in accordance with IFRIC 12, including works carried out by non-Group companies, amounted to EUR34,003 million in 2010, compared with EUR31,178 million in 2009.

[3] After taking account of share options.

[4] Dividend proposed to the Shareholders' Meeting of 2 May 2011.

[5] Cash flow from operations before cost of financing and tax (EBITDA)

[6] ROCE (Return on Capital employed) is the NOPAT (Net operating profit after tax) divided by the average capital employed at the opening and closing balance sheet dates for the year under consideration.

[7] The consolidated financial statements have been audited, and the certification report will be issued before the registration document (document de référence) is filed.

[8] VINCI has elected to apply, as from the financial year ended 31 December 2010, the option to consolidate jointly controlled entities using the equity method, in accordance with IAS 31, "Interests in Joint Ventures". The 2009 financial statements have been restated to reflect this change in accounting policy and enable comparisons to be made from one year to the next.

[9] Excluding concession subsidiaries' revenue derived from works carried out by third parties (in application of IFRIC 12).

[10] Operating cash flow = cash flow from operations adjusted for changes in working capital requirement and current provisions, interest paid, income taxes paid, dividends received from equity-accounted companies, and net investments in operating assets.


    (in EUR millions)                            2009 restated   2010  change
                                                                        in %
    Total revenue                                      31,178  34,003   9.1%
    - Revenue excluding concession
    subsidiaries' revenue derived from works
    carried out by third parties                       30,741  33,376   8.6%
    France                                             19,614  20,922   6.7%
    International                                      11,127  12,454  11.9%
    - Concession subsidiaries' revenue derived
    from works carried out by third parties (1)           437     627  43.6%
    Operating profit from ordinary activities           3,100   3,434  10.8%
    as a % of revenue (2)                               10.1%   10.3%
    Share-based payment expense (IFRS 2)                 (63)    (71)
    Goodwill impairment expense                          (12)     (2)
    Profit/(loss) of associates                           85      68
    Operating profit                                   3,110   3,429   10.2%
    as a % of revenue (2)                               10.1%   10.3%
    Cost of net financial debt                          (714)   (636)
    Other financial income and expenses                   34     (45)
    Income tax expense                                  (727)   (847)
    Non-controlling interests                           (107)   (125)
    Net profit attributable to owners of the
    parent                                              1,596   1,776   11.3%
    as a % of revenue (2)                                5.2%    5.3%

    Earnings per share (in EUR) (3)                     3.21    3.30    2.9%

    Dividend per share (in EUR)                         1.62    1.67(4) 3.1%

    (1) In application of IFRIC 12, Service Concession Arrangements.

(2) Calculated based on revenue excluding concession subsidiaries' revenue derived from works carried out by third parties.

    (3) After taking account of dilutive instruments.
    (4) Dividend proposed to the Shareholders Meeting of 2 May 2011.

    (in EUR millions)                       31 December 2009 31 December 2010

    Non-current assets - concessions                 26,235           26,303
    Non-current assets - other businesses             4,706            7,916
    Current financial assets                             35               48
    Net cash managed                                  5,887            5,609
    Total assets                                     36,863           39,876

    Equity attributable to owners of the              9,811           12,304
    Non-controlling interests                           656              721
    Total equity                                     10,467           13,025
    Non-current provisions and miscellaneous
    long-term liabilities                             1,443            1,729
    Borrowings                                       19,017           18,669
    WCR and current provisions                        5,936            6,453
    Total equity and liabilities                     36,863           39,876

    Net financial debt at 31 December               (13,130)         (13,060)


    (in EUR millions)                                 2009 restated    2010
    Cash flow from operations before cost of financing
    and tax (EBITDA)                                        4,771     5,052
    Changes in WCR and current provisions                      524      (78)
    Income taxes paid                                         (644)    (950)
    Net interest paid                                         (762)    (693)
    Dividends received from equity-accounted companies          47       54
    Cash flows (used in)/from operating activities           3,936    3,385
    Net investments in operating assets                       (616)    (595)
    Operating cash flow                                      3,320    2,790
    Investments in concession assets and PPP contracts      (1,044)    (871)
    Free cash flow                                           2,276    1,919
    Net financial investments                                 (96)   (2,425)*
    Other                                                      (31)     (68)
    Cash flow before movements in share capital              2,148     (575)
    Share capital increases and reductions                     621    1,658*
    Share buybacks                                                -    (107)
    Dividends paid                                            (876)    (965)
    Cash flow for the period                                 1,893       11
    Other changes                                              (22)      59
    Change in debt                                           1,871       70

    * Including the payment of Cegelec's acquisition in VINCI shares:
EUR1,385 million.

    (in EUR billions)       31 December 09 31 December 10  change
                                  restated                  in %

    Energies                           3.0            6.3   +108%
    Eurovia                            5.7            5.2    (10%)
    Construction                      13.9           14.5     +4%
    Total contracting                 22.6           25.9    +15%
    of which:
                                      10.9           13.3    +23%
    International                     11.7           12.6     +7%