ROADSHOW USA - June 2001

Transcription

1 ROADSHOW USA - June

2 This presentation has been prepared by VINCI for information purposes only. It is based on sources we believe to be reliable but neither its accuracy nor completeness is guaranteed. Opinions expressed herein reflect the current judgement of the Company and may change without notice. This presentation should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment and neither it nor anything it contains shall form the basis of any contract whatsoever. This report may not be copied, transmitted or distributed to any other party without the permission of the Company. 2

3 Antoine Zacharias Chairman and CEO Bernard Huvelin Managing Director Jérôme Tolot Managing Director Christian Labeyrie Chief Financial Officer 3

4 A balanced business mix 2000 net sales breakdown by activity (17.3 billion euros) Construction (building & civil engineering) 34% Concessions and services 12% Energy- Information 21% Roads 33% 4

5 85% of operating income derived from recurring activities 2000 operating income breakdown by business line (966 million euros) Construction 15% Roads 16% Concessions 57% Energy- Information 12% 5

6 A European Group North America 4% Rest of the world 6% Other European countries 11% UK 7% France 62% Germany 10% 2000 net sales: 17.3 bilion euros 6

7 An organisational structure based on business lines Antoine Zacharias Chairman and CEO Jérôme Tolot Managing Director Bernard Huvelin Managing Director 7

8 An unrivalled portfolio of concessions Car parks Toll-paying motorways Large structures and facilities Airports ,000 spaces 1,200 km Cofiroute 8 bridges and tunnels Stade de France 25 airports Growth paralleled the evolution of the ways in which people travelled 8

9 An unrivalled portfolio of concessions Long residual duration Car parks 27 years Airports 42 years Bridges 38 years Cofiroute 29/70 years Majority holdings Car parks 100% Cofiroute 65% Chilean motorway 81% Rion-Antirion bridge 53% High medium-term visibility Financial and operational control Good balance between cash-generating and young concessions Cofiroute 30 years Chilean motorway 1 year Cash flow recycling 9

10 Energy - Information Number 1 in France for electrical engineering and works Strong positions in services related to new information and communication technologies (telecom( infrastructure, manufacturing information systems,, business communication systems) A European network of 700 companies Thermal activities 30% Electrical engineering 41% Information and communications technologies 29% Sweden, Netherlands, UK 11% Germany 20% France 69% 10

11 Roads European leader in roadworks and one of the largest European producers of road materials Major player in demolition and construction waste recycling A strong network of locations in Europe (Germany, UK, Spain, Belgium, Central Europe) Significant operations in North and South America Environment 17% Roadworks 66% France 59% Quarries and materials 17% North and South America 11% Other European countries 16% Germany 14% 11

12 Construction A very wide range of skills and capabilities An exceptionally dense network of local contractors Outstanding expertise in design-and and-build projects Strong positions in added-value businesses (specialised civil engineering, project management, maintenance) Building 42% France 55% Services 8% Hydraulic works 8% Specialised civil engineering 10% Civil engineering 32% Rest of the world 14% Other European countries 12% UK 10% Belgium 9% 12

13 An enhanced stock market value Largest market capitalisation in Europe in the construction sector (around 6 billion euros) Greatly improved liquidity: : 20 million euros traded every day (x 5 since the announcement of the merger with GTM and the pull-out of majority shareholders Vivendi Universal and Suez) Major increase in number of shareholders (2.000 institutional investors,, individual shareholders including employees) Target: join the CAC 40 index 13

14 A refashioned shareholder structure VINCI early 2000 GTM early % 49% 46% 49% 7% 3% market cap.: 1.9 bn euros 72.7% VINCI today 8.5% 5.0% 5.3% 8.5% market cap.: around 6 bn euros (+80%) 2% 3% market cap.: 1.5 bn euros Vivendi Universal* Suez** Employees Treasury stock Float * In February 2001, Vivendi Universal issued 5-year bonds exchangeable into VINCI shares, covering its full interest in VINCI. ** In April 2001, Suez issued 2.5-year bonds exchangeable into VINCI shares, representing 3.7% of VINCI's capital stock. 14

15 Excellent share performance Announcement of the merger with GTM 2000 results +57% Vivendi pull-out Suez pull-out -3% -12% 35 1 Jan VINCI SBF 120 DJ Stoxx Construction 15 June

16 Continuing improvement of VINCIs profitability 2000 pro forma million euros change 1999/2000 forecast 2001 Net sales Operating income Pre-tax income excluding non-recurring items Net income Free cash flow (before investment in infrastructure concessions) 17, % + 23% + 15% + 55% n.a. 16

17 Operating income up 23% in 2000 Operating income (million euros) +23% % +25% +41% +83% Concessions Energy- Information Roads Construction Total

18 Improved profitability in all business lines 42.4% 42.3% Operating margin (operating income / net sales) 5.0% 5.6% 3.4% 3.8% 2.3% 2.9% 1.3% 2.1% Concessions Energy- Information Roads Construction Total

19 Balance sheet: concessions create solid asset base in millions of euros Fixed assets of which special concession amortisation Shareholders equity Grants and other long term debt Pension commitments Provisions WCR Net financial debt Concessions Other businesses Resources * of which minority interest: 482 million euros 2000 proforma 7,480 (985) 2, , ,475 (620) 1,855 7,480 * of which concessions 4,687 (985) 1, (24) 2,475 4,687 19

20 A group creating shareholder value Energy- Information, Roads, Construction 26% Capital employed 5.9 billion euros Return on capital employed - ROCE (operational income after tax / capital employed) Concessions Other 9.2% 22.8% Concessions 74%!ROCEROCE!WACCWACC 12.7% 7.5% Return on equity - ROE 23.1% 20

21 A strategy focused on growing profitability Optimise existing operations upgrade all business lines by focusing on the most profitable sectors leverage synergies stick to a strict risk management and selective order-taking policy anticipate structural adjustments, focusing on light-weight and responsive structures Continue to grow VINCI in businesses offering strong potential for sustainable growth (concessions, services, energy- information) organic growth targeted and rapidly earnings-enhancing enhancing acquisitions divestment of non-strategic business activities accelerate rebalancing of business mix 21

22 Greater than expected synergies Initial target of 70 million euros revised upwards: More than 50 million euros in 2001 than 100 million euros by 2003 (before tax) Purchasing and capital expenditure 20% Optimisation and best practices 30% Concessions and holdings 15% Streamlining and elimination of duplication 50% Roads 25% Construction 60% 22

23 Ensure sustainable development Promote innovation and environmental friendly attitude innovation and R&D quality and safety environmental protection Reinforce staff motivation increase variable part in salaries incentives: : stock options / employee savings plan Increase transparency (corporate governance) 23

24 Concessions Operate for maximum value the existing portfolio of concessions Selective growth (airports and car parks) Action focus Car parks Launch of VINCI Park Focus on new services and private customers in France Growth in other countries Airports Acquisition of concessions (medium sized airports) Development of airport services Partnership with ADP Bridges and tunnels Selective prospecting (Korea,, UK, Canada ) Sales EBITDA % EBITA % million euros 2000 trend pro forma , % % 24

25 Energy - Information Speed up internal and external growth in information and commmunication technologies Reinforce offerings for industrial clients (manufacturing( information systems,, maintenance) Sales million euros 2000 trend pro forma ,096 Complete the network of locations through acquisitions in Europe EBITDA % % Expand brand policy throughout Europe EBITA % % 25

26 Roads Reinforce materials production capacity Develop environment-related related activities (recycling of building site waste, demolition/deconstruction deconstruction) millions euros Complement network in Europe and on the American continent through targeted external growth (local players with materials production facilities) Optimise presence in France through development of synergies (fixed costs cutting, materials production and capital expenditure optimisation) Sales EBITDA % EBITA % 2000 trend pro forma , % % 26

27 Construction Selectivity Margin before volume Reduce exposure to major civil engineering projects outside France Risk control millions euros Strategic repositioning Partnership contracts (PPP in the UK, private clients in France) Design-and and-build projects Specialised niche markets (Freyssinet) New activities (facility management, telecom infrastructure) Asset disposals Sales EBITDA % EBITA % 2000 trend pro forma , % % Recurrence - Profitability 27

28 2001 off to a good start Sustained business level in the first quarter, with concessions leading the way in growth in millions of euros Q Q pro forma Var. Var. like-with-like Concessions Energy-Information Roads Construction Miscellaneous Total ,037 1, , , ,550 +7% +2% +4% +5% +5% +6% +5% +4% +4% +5% 28

29 Good outlook for 2001 Order backlog up 8% on 31 March March 2001 million euros Months of activity Var.. / 31 March 2000 Energy-Information Roads Construction Total 1,229 2,946 6,382 10, % +12% + 5% + 8% 29

30 2001 targets confirmed Growth in net sales deliberately kept moderate Pre-tax income excluding non-recurring items +20% Net income higher in 2001 than in despite higher income tax - excluding exceptional capital gains 30