Annual revenue at 31 December 2009 2 February 2010

Rueil-Malmaison, 2 February 2010 Press release ANNUAL REVENUE AT 31 DECEMBER 2009 • 2009 consolidated revenue: €31.9 billion (-4.6%) (1)    • Growth in concessions: €4.9 billion (+2.4%)    • Limited decline in contracting: €26.9 billion (-5.7%) • Growth of order book to €24 billion (+4% over 12 months) VINCI’s business activities held up well […]

Rueil-Malmaison, 2 February 2010

Press release

ANNUAL REVENUE AT 31 DECEMBER 2009

• 2009 consolidated revenue: €31.9 billion (-4.6%) (1)
   • Growth in concessions: €4.9 billion (+2.4%)
   • Limited decline in contracting: €26.9 billion (-5.7%)
• Growth of order book to €24 billion (+4% over 12 months)


VINCI’s business activities held up well in 2009, confirming the trends previously indicated by the Group and despite the economic and financial crisis.

In the motorway concession business, light vehicle traffic started to pick up in the second quarter and compensated for heavy vehicle traffic which remained affected by the downturn in industrial activity.

In the contracting divisions, the reduction in order intake, attributable in large part to the impact of the economic climate on Europe’s building markets, was limited thanks to the commercial successes involving new infrastructure projects, particularly outside France. The reduction in new orders also reflects the Group’s decision to protect its margins.

VINCI’s integrated concession-construction business model is proving to be robust and well suited to the Group’s changing markets in the current uncertain economic climate. VINCI is also reaping the benefits of the investments made in recent years, in particular Soletanche-Bachy, Entrepose Contracting, Etavis and ETF-Eurovia Travaux Ferroviaires, to increase the value added of its products and services and to accelerate its geographical diversification.

 

Revenue at 31 December 2009

VINCI’s 2009 consolidated revenue amounted to €31.9 billion, off 4.6% from the 2008 figure. On a comparable structure basis, revenue was down 5.5% after adjustments for the impact of external growth (+2.5%) and exchange rate fluctuations (-1.6%).

VINCI Concessions’ revenue increased 2.4% (up 2.8% on a comparable structure basis) to €4.9 billion.

The Contracting divisions’ revenue declined 5.7% to €26.9 billion (-6.8% on a comparable structure basis). The fourth quarter 2009 activity continued along the trend set in the previous quarter: decline in VINCI Construction and VINCI Energies; stabilisation of Eurovia.

In France, revenue totalled €19.6 billion, down 6.3% (-7.1% on a constant consolidation scope basis), reflecting a 2.6% increase in revenue generated by VINCI Concessions and an 8.4% decline in Contracting.

Outside France, there was a slight revenue decline (1.7%) to €12.3 billion (-2.7% on a comparable structure basis). Business was good at Eurovia, Entrepose Contracting and VINCI Construction Grands Projets.
The proportion of revenue generated outside France continued to increase: from 37.4% of total revenue in 2008 to 38.5% in 2009. For the contracting division, it represented 44.5% in 2009 compared to 42.9% in 2008.


Breakdown by division

VINCI Concessions: €4,899 million (+2.4%)

Revenue increased 3.1% to €4,095 million at the four French motorway networks managed by VINCI. Stable network traffic rose 1.2% overall, with a 3.2% increase in light vehicle traffic and, in line with expectations, a 10% decline in heavy vehicle traffic. Positive impacts also came from the opening of new sections (0.6%) and pricing effects.

In the fourth quarter, traffic growth was 3.1%, confirming the upturn in light vehicle traffic that started in the second quarter. Heavy vehicle traffic registered a smaller sequential decline (-3.7%). In total, revenue generated by VINCI Autoroutes France, including new sections (the A19 motorway and the A86 Duplex), increased 4.7% over the quarter.

Revenue by network:

€ in millions Q4 2009 Δ 2009/2008 At 31 Dec. 2009 Δ 2009/2008
ASF 531 +3.0% 2,357 +2.3%
Escota 140 +5.6% 610 +3.2%
Cofiroute 258 +4.7% 1,111 +3.1% *
Arcour ** 7 - 18 -
VINCI Autoroutes France 937 +4.7% 4,095 +3.1%

* The opening in July 2009 of the first section of the A86 Duplex, between Rueil-Malmaison and Vaucresson, represented 0.3% of Cofiroute’s revenue in 2009.
** The A19 motorway between Artenay and Courtenay opened in June 2009.

 

VINCI Park’s revenue rose 0.5% to €623 million (up 3.3% on a comparable structure basis). In France, revenue rose 1.7% to €413 million, attributable to resilient hourly occupancy in Paris and growth in long-term space rentals. Outside France, revenue increased 6.8% on a comparable basis to €210 million, mainly due to business growth in North America.


VINCI Energies: €4,339 million (-6.0%)

In France, revenue was off 5.0% to €3,004 million (-5.4% on a comparable structure basis), due mainly to the decline in investment in service sector property and weak industrial demand. Energy production and transmission infrastructure, on the other hand, held up well.

Outside France, revenue of €1,335 million was down 8.1% (-9% on a comparable structure basis), with situations varying geographically: decline in Northern Europe, Central Europe and Spain; resilience in Germany, Switzerland and Belgium.
VINCI Energies’ order book at 31 December 2009 stood at €2.3 billion, down 3% over 12 months. It represented about 6.5 months of average business activity for the division.


Eurovia: €8,003 million (-2.2%)

In France, revenue of €4,639 million declined 5.4% (-8.5% on a constant consolidation scope basis). Business activity stabilised in the fourth quarter due mainly to the economic stimulus packages launched by local authorities. The year was also marked by the completion of several major motorway projects and by the vitality in the rail sector, in which ETF is one of the main players.

Outside France, revenue grew 2.6% to €3,364 million (+4.1% on a comparable structure basis and at constant exchange rates). There was a moderate downturn in activity in the United Kingdom and United States, and demand remained steady in the Czech Republic and Canada. Meanwhile, there was strong growth in Germany, Poland and Slovakia, driven by major motorway projects, the biggest of which were won within the framework of public-private partnerships in conjunction with VINCI Concessions.
Eurovia’s order book at 31 December 2009 amounted to €5.9 billion, up strongly against the previous year end (+24%). This figure includes the contracts won with VINCI Concessions in Germany (A5 motorway) and Slovakia (R1 expressway). It represented almost 9 months of average business activity for the division.


VINCI Construction: €14,548 million (-7.5%)

In France, revenue was €7,283 million, down 11.4%. This change reflects the decline in building activities and the completion of several major projects (A19 motorway, Rhine-Rhône high-speed rail line, the first section of the A86 Duplex and projects in Reunion), partially offset by the start-up of new projects (widening of the A63 motorway, tunnels on the A89, and A65 excavation works).

Outside France, there was a more moderate decline (-3.1%) to €7,265 million (-5.3% on a comparable structure basis). Although building activities in Belgium and Central Europe were affected by the fall in the market, business activity in the United Kingdom held up well thanks to the integration of recent acquisitions (Taylor Woodrow Construction and Haymills). VINCI Construction Grands Projets and Entrepose Contracting benefitted from the vitality of the infrastructure market and the oil and gas sector, especially in the Middle East.

VINCI Construction’s order book at 31 December 2009 amounted to €15.8 billion, relatively unchanged (-2%) compared to the 2008 year-end figure. It represented over one year of average business activity for the division. Roughly two-thirds of VINCI Construction’s order book will be executed during 2010.


Outlook

In total, despite the more difficult economic climate, the order intake of VINCI’s contracting divisions (energy, roads, construction) matched the revenue they generated in 2009.
Having maintained its principle of strict control over project selection, VINCI nevertheless started 2010 with an order book of €24 billion, up almost 4% compared with 31 December 2008.

The increasing share of major complex projects, especially outside France, in transport, energy and the environment, is extending the execution timeline of the order book. Overall, almost 70% of the backlog is to be executed in 2010.

At the same time, the concessions’ activities displayed again their sturdiness.

VINCI’s performance illustrates the relevance of its growth model, which is based on the complementarity of its construction and infrastructure operation businesses, its wide range of expertise and the quality of its international network. These advantages, combined with its many market-leading positions, should allow VINCI to benefit from those medium term growth drivers which remain intact: urbanisation, mobility, energy needs and environmental essentials.

 

VINCI will publish its 2009 annual results after the close of NYSE Euronext Paris trading on 3 March 2010.

 

(1) In application of IFRIC 12, VINCI’s total revenue, including concession subsidiaries’ external construction revenue (work carried out by non-Group companies on behalf of concession grantors), amounted to €32.5 billion in 2009 (compared with €33.9 billion in 2008).

Press contact: Estelle FERRON-HUGONNET
Tel: 01 47 16 32 41 / Fax: 01 47 16 33 88
Email: estelle.ferron@vinci.com

Investors relations  : Christopher WELTON
Tel: +33 1 47 16 45 07
Email: christopher.welton@vinci.com

Marie-Amélia FOLCH
Tel: 01 47 16 45 39
Email: marie-amelia.folch@vinci.com

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

  12 months Change 2009/2008
2008 2009 Actual Comparable
  VINCI Autoroutes France 3,972.0 4,095.0 3.1% 3.1%
  VINCI Park & other concessions 809.4 803.5 (0.7%) 1.1%
Subtotal Contracting 4,781.4 4,898.5 2.4% 2.8%
         
  VINCI Energies 4,614.3 4,339.1 (6.0%) (6.5%)
  Eurovia 8 183.1 8,002.9 (2.2%) (3.7%)
  VINCI Construction 15,722.4 14,548.3 (7.5%) (8.5%)
Subtotal Contracting 28,519.8 26,890.3 (5.7%) (6.8%)
         
VINCI Immobilier 558.5 559.3 0.1% 0.1%
Eliminations (401.8) (419.8)    
         
Total excluding construction revenue related
to concession subsidiaries  (IFRIC 12)
33,457.9 31,928.2 (4.6%) (5.5%)
Construction Revenue related
to concession subsidiaries
1,012.6 981.6 (3.1%) (3.1%)
Internal Eliminations (540.2) (458.0)    
3rd Party construction revenue related
to concession subsidiaries
472.5 523.6 10.8% 10.7%
TOTAL* 33,930.3 32,451.8 (4.4%) (5.3%)

 

Geographical breakdown
(In € millions)

  12 months Change 2009/2008
2008 2009 Actual Comparable
France
Concessions 4,466.8 4,582.4 2.6% 2.6%
  VINCI Energies 3,160.8 3,003.9 (5.0%) (5.4%)
  Eurovia 4,905.2 4,639.4 (5.4%) (8.5%)
  VINCI Construction 8,221.6 7,283.3 (11.4%) (11.6%)
Contracting 16,287.6 14,926.6 (8.4%) (9.5%)
Eliminations and miscellaneous 181.9 113.2    
Total 20,936.3 19,622.2 (6.3%) (7.1%)
3rd Party construction revenue related
to concession subsidiaries
422.2 472.4 11.9% 11.9%
Total France * 21,358.5 20,094.5 (5.9%) (6.8%)
 
International
Concessions 314.6 316.1 0.5% 5.5%
  VINCI Energies 1,453.5 1,335.2 (8.1%) (9.0%)
  Eurovia 3,277.9 3,363.5 2.6% 4.1%
  VINCI Construction 7,500.8 7,264.9 (3.1%) (5.3%)
Contracting 12,232.2 11,963.7 (2.2%) (3.3%)
Eliminations and miscellaneous (25.2) 26.2    
Total 12,521.6 12,306.0 (1.7%) (2.7%)
3rd Party construction revenue related
to concession subsidiaries
50.3 51.2 2.0% 0.9%
Total International * 12,571.9 12,357.3 (1.7%) (2.7%)

* Total Revenue includes 3rd party construction revenue related to concessions subsidiaries, according to the application of the IFRIC 12 interpretation “Service Concession Arrangements” (applicable to concessions and PPPs).


4th Quarter Consolidated Revenue
(In € millions)

  Q4 Change 2009/2008
2008 2009 Actual Comparable
  VINCI Autoroutes France 894.9 936.5 4.7% 4.7%
  VINCI Park & other concessions 209.6 202.3 (3.5%) (0.2%)
Subtotal Contracting 1,104.5 1,138.8 3.1% 3.8%
         
  VINCI Energies 1,259.4 1,168.8 (7.2%) (7.6%)
  Eurovia 2,169.7 2,166.8 (0.1%) 1.2%
  VINCI Construction 4,187.3 3,713.1 (11.3%) (9.0%)
Subtotal Contracting 7,616.4 7,048.7 (7.5%) (5.8%)
         
VINCI Immobilier 165.1 204.3 23.7% 23.7%
Eliminations (136.5) (41.7)    
         
Total excluding construction revenue related
to concession subsidiaries  (IFRIC 12)
8,749.5 8,350.1 (4.6%) (3.0%)
Construction Revenue related
to concession subsidiaries
218.8 293.4 34.1% 23.8%
Internal Eliminations (111.7) (181.3)    
3rd Party construction revenue related
to concession subsidiaries
107.2 112.1 4.7% 5.0%
TOTAL 8,856.7 8,462.2 (4.5%) (2.9%)

 

Contracting Order Book (VINCI Energies, Eurovia, VINCI Construction)
(In € billions)

  31 December 200831 December 08 Δ versus 31-12-08
VINCI Energies 2.4 2.3 -3%
Eurovia 4.8 5.9 +24%
VINCI Construction 16.0 15.8 -2%
Total Contracting 23.2 24.0 +4%
dont France 11.1 10.9 -2%
Total Contracting 12.1 13.1 +9%

 

12 Months 2009 French Motorway Revenue Variations

  ASF Escota Cofiroute VINCI Autoroutes France
Light vehicles 3.6% 1.6% 3.4% 3.2%
Heavy vehicles -10.0% -7.2% -11.3% -10.0%
Stable Network Traffic 1.4% 0.7% 1.1% 1.2%
New sections - - 1.0% 0.6% (*)
Other Impacts 1.2% 2.5% 1.1% 1.5%
Toll Receipts 2.6% 3.2% 3.2% 3.3%
         
Revenue 2.3% 3.2% 3.1% 3.1%

(*) of which Arcour: +0.5% and Duplex A86: +0.1%

 

French Motorway Traffic
(in millions of km travelled)

  Network 12 months  
2008 2009 Change
ASF
Light vehiclesStable 23,252 24,080 3.6%
Heavy vehiclesStable 4,392 3,954 -10.0%
Total km travelledStable 27,644 28,034 1.4%
 
ESCOTA
Light vehiclesStable 5,882 5,976 1.6%
Heavy vehiclesStable 631 586 -7.2%
Total km travelledStable 6,513 6,562 0.7%
 
Cofiroute (intercity network)
Light vehiclesStable 8,547 8,840 3.4%
Evolutif 8,914 9,290 4.2%
Heavy vehiclesStable 1,606 1,424 -11.3%
Evolutif 1,666 1,484 -10.9%
Total km travelledStable 10,153 10,264 1.1%
Evolutif 10,580 10,774 1.8%
 
Arcour
Light vehicles     121  
Heavy vehicles     15  
Total km travelled     136  
 
VINCI Autoroutes France
Light vehiclesStable 37,680 38,896 3.2%
Evolutif 38,048 39,467 3.7%
Heavy vehiclesStable 6,630 5,964 -10.0%
Evolutif 6,690 6,039 -9.7%
Total km travelledStable 44,310 44,860 1.2%
Evolutif 44,737 45,506 1.7%