Quarterly information at 31 march 2011 28 April 2011

Rueil-Malmaison, 28 April 2011 Press release VINCI – QUARTERLY INFORMATION AT 31 MARCH 2011 • 25% increase in 1st quarter 2011 revenue (+9,5% on a comparable structure basis)    – Positive impact of 2010 acquisitions (Cegelec, Faceo, Tarmac): +15%    – Solid growth in concessions: +5,6%    – Strong organic growth in contracting: +11,2% • Increase in order […]

Rueil-Malmaison, 28 April 2011

Press release

VINCI - QUARTERLY INFORMATION AT 31 MARCH 2011

• 25% increase in 1st quarter 2011 revenue (+9,5% on a comparable structure basis)
   - Positive impact of 2010 acquisitions (Cegelec, Faceo, Tarmac): +15%
   - Solid growth in concessions: +5,6%
   - Strong organic growth in contracting: +11,2%
• Increase in order book to €26.6 billion at 31 March 2011, up 3% since 31 December 2010
• Net financial debt of €13.6 billion at 31 March 2011
• Top line growth target bolstered for full year

VINCI’s consolidated revenue amounted to €7.7 billion1 in the first quarter of 2011, an increase of 25.4% compared to that of the first quarter of 2010.

In addition to a favourable exchange rate effect (+0.9%), the acquisitions made during 2010, mainly Cegelec and Faceo within the Energy business line and Tarmac at Eurovia, had a positive impact. These three companies contributed revenue of €0.8 billion in the first quarter.

On a comparable structure basis, revenue rose by 9.5%, reflecting strong growth in the contracting businesses (+11.2%) and a solid performance in concessions (+5.6%).
The mild weather recorded in the first quarter of 2011 stood in contrast to the particularly severe weather conditions during the winter of 2010, which had a strong negative impact on the contracting businesses in Europe and North America.

In view of the importance of these seasonal factors, business trends at the start of the year cannot be extrapolated to the year as whole. In addition, the impact of 2010 acquisitions on the revenue of the nine remaining months of 2011 should be less material, as Cegelec was consolidated from the second half of April 2010, Faceo from August 2010 and Tarmac from October 2010.

In France, revenue amounted to nearly €5 billion, an increase of 23.4% compared to the first quarter of 2010 (+10% on comparable structure basis).

Outside France, revenue increased by 29.2% to €2.7 billion (+8.4% at constant scope and exchange rates). The share of revenue from outside France was close to 36% (41% in contracting).

On top of buoyant business activity, the intake of new orders boosted the order book by nearly 3% during the first quarter. The order book now represents about 11 months of average business activity - an amount of €26.6 billion – and does not include the works that should come from recent infrastructure concession contracts awarded to the Group: the Sud Europe Atlantique high-speed rail line, the future Nantes airport and Nice Stadium, which together represent a volume of business of about €4.5 billion for the Group.


Revenue by business line

CONCESSIONS: €1,147 million (+6.4% actual; +5.6% on comparable structure basis)

VINCI Autoroutes (ASF, Escota, Cofiroute, Arcour): Toll receipts in the first quarter of 2011 amounted to €899 million, a rise of 6.2%. Traffic on a stable network increased by 3.3% (+3.2% for light vehicles, +3.8% for heavy vehicles). In addition, the impact of toll increases  (+2.5%) and the opening of new sections (+0.4%) – primarily that of the second section of the A86 Duplex that opened on 9 January 2011 - took total revenue to €918 million, an increase of 6.1%.

VINCI Park: Revenue increased to €151 million, up by 6.4% (+0.7% on a comparable structure basis). In France, revenue rose by 2.1%. Outside France, revenue was driven by acquisitions, the integration of Meteor Parking in the United Kingdom compensating for the end of the Karstadt contract in Germany.


CONTRACTING: €6,564 million (+30.7% actual; +11.2% on a comparable structure basis)

Energy business line: €1,985 million (+81.7% actual; +5.5% on a comparable structure basis)

In France, revenue amounted to €1,267 million, up by 73% on an actual basis (+5.4% at constant scope). VINCI Energies France and Cegelec France recorded a revenue increase of nearly 8% on a comparable structure basis. As in 2010, the energy infrastructure and telecommunications markets remained buoyant. Furthermore, the industry market began to recover and also had a positive impact on revenue.

Outside France, revenue amounted to €717 million, an increase of 5.7% on a comparable structure basis and 100% on an actual basis. Most European markets enjoyed brisk growth, particularly Germany, the Netherlands and Central Europe.

The Energy business line order book at 31 March 2011 totalled €6.7 billion, with Cegelec affiliated companies contributing €1.9 billion and those of Faceo €0.8 billion. The order book has expanded by 6% since the start of the year and represents almost 10 months of average business activity for this business line.


Eurovia: €1,433 million (+21.5% actual; +18.0% on a comparable structure basis)

It should be noted first of all that Eurovia’s business activity is more subject to seasonal influences than that of VINCI’s other business lines. The performance recorded in the first quarter cannot therefore be extrapolated to the year as a whole.

In addition, the very different weather conditions in the first quarter of 2011 compared to those in the first quarter of 2010 do not make a comparison of the revenue figures from the two quarters very meaningful.

In France, revenue for the first quarter amounted to €974 million, up by 23.8% on an actual basis and 22.7% on a comparable structure basis. Following a very disappointing first quarter in 2010 as a result of the harsh weather conditions in January and February, business activity started growing again and was higher than that of the first quarter of 2009.

Outside France, revenue amounted to €459 million, an increase of 16.9% on an actual basis (+9.3% at constant scope and exchange rates). Business activity grew strongly in Germany and Central Europe (Poland, Slovakia) but declined in the United Kingdom and the United States.
Eurovia’s order book at 31 March 2011 stood at €5.4 billion, an increase of more than 5% since the start of the year and represents 8 months of average business activity of the business line.


VINCI Construction: €3,146 million (+14.4% actual; +11.9% on a comparable structure basis)

In France, the market turnaround observed in the 2nd half of 2010 was confirmed. Revenue amounted to €1,656 million, up by 13.8% on a comparable structure basis. There was an improvement in public works and civil engineering, which benefitted from a favourable basis of comparison, whereas building construction recorded strong growth thanks to higher demand for both social and private residential housing and a resumption of investments in non-residential buildings, particularly office buildings.
Outside France, revenue increased by 14.1% to €1,490 million (+10% at constant scope and exchange rates). Growth was particularly brisk at Soletanche-Freyssinet, VINCI Plc in the United Kingdom, VINCI Construction Grands Projets and Central European subsidiaries.

The Construction business line’s order book at 31 March 2011 stood at €14.5 billion and has remained stable since the start of the year. It represents almost 13 months of average business activity.


Highlights of the 1st quarter

Concessions: opening of the A86 Duplex

On 9 January 2011, Cofiroute opened the second part of the A86 Duplex (VL2), six months ahead of schedule. This 5.5 km long section between Vaucresson and Vélizy, to the west of Paris, completes the A86 circular motorway, which is now the second ring road in the Ile de France after the Paris ring road (boulevard périphérique). The A86 Duplex tunnel enables drivers to cover the 10 km between Rueil-Malmaison (Hauts-de-Seine) and Vélizy (Yvelines) in less than 10 minutes, compared to an average of more than 45 minutes on the normal roads. The tunnel, designed, built, financed and operated by Cofiroute under a concession contract running until 2086, represents an overall investment of €2.2 billion.

Financial information

Net consolidated financial debt at 31 March 2011 stood at €13.6 billion, compared to €13.4 billion at 31 March 2010 and €13.1 billion at 31 December 2010. The increase since 31 December 2010 is mainly due to the seasonal variation in operating cash and further share buybacks (4.5 million shares were purchased during the quarter).
The Group’s liquidity remained at a very high level of more than €11 billion at 31 March 2011, comprising €5 billion of net cash holdings and more than €6 billion of confirmed and undrawn bank credit facilities with most maturities falling between March 2012 and February 2016. In February, Cofiroute concluded an agreement with a banking consortium for a new 5 year credit line of €500 million.


2011 outlook

The target of revenue growth of at least 5% announced in March 2011, on the occasion of the publication of VINCI’s annual results, is bolstered by the good results of the first quarter. However, account must be taken of the favourable basis of comparison with 2010 and the particularly mild weather at the start of the year.


Upcoming event

Annual Shareholders’ Meeting: 2 May 2011 at 3.00 pm, Salle Pleyel, 75008 Paris.

 

(1) In accordance with IFRIC Interpretation 12, VINCI’s total revenue, including concession subsidiaries’ construction works performed by non-Group companies, amounted to €7,867 million at 31 March 2011, up 25.7% compared with the first three months of 2010 (+10.1% on a comparable structure basis).

 


Press contacts: Estelle FERRON-HUGONNET
Tel: +33 1 47 16 32 41
e-mail: estelle.ferron@vinci.com

Maxence NAOURI
Tel: +33 1 47 16 31 82
e-mail: maxence.naouri@vinci.com

Investor relations: Christopher WELTON
Tel: +33 1 47 16 45 07
e-mail: christopher.welton@vinci.com

Marie-Amélia FOLCH
Tel: +33 1 47 16 45 39
e-mail: marie-amelia.folch@vinci.com

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

 

APPENDIXES

Consolidated revenue for the 1st quarter
In € millions

 1er quarter2011/2010 change
 2010 restated*2011ActualComparable
   VINCI Autoroutes 865.6918.1 6.1% 6.1%
   VINCI Park & other concessions 212.4228.9 7.8% 3.8%
S/T Concessions 1,078.0 1,147.06.4% 5.6%
   Energy business line 1,092.5 1,984.781.7% 5.5%
   Eurovia 1,179.2 1,433.021.5% 18.0%
   VINCI Construction 2,749.8 3,146.1 14.4% 11.9%
S/T Contracting 5,021.5 6,563.7 30.7% 11.2%
VINCI Immobilier 107.294.4 (11.9%) (11.9%)
Internal eliminations (78.5)(120.0)  
Total excluding concession subsidiaries’ construction revenue (IFRIC 12) 6,128.2 7,685.2 25.4% 9.5%
Concession subsidiaries’ construction revenue 164.3 224.1 36.4% 36.4%
Internal eliminations (36.0) (42.4)  
Concession subsidiaries’ external construction revenue128.2181.741.7%41.7%
Total 6,256.5 7,866.925.7%10.1%

 

Revenue by geographical area
In € millions

 1er quarter 2011/2010 change
 2010 restated*2011ActualComparable
France    
Concessions 1,009.9 1,071.76.1%6.1%
   Energy business line733.2 1,267.372.9%5.4%
   Eurovia786.7974.223.8%22.7%
   VINCI Construction 1,443.9 1,655.914.7%13.8%
Contracting 2,963.8 3,897.431.5%12.9%
Eliminations and miscellaneous42.7(11.6)  
Total 4,016.3 4,957.623.4%10.0%
Concession subsidiaries’ external construction revenue126.0175.539.3%39.3%
Total France 4,142.3 5,133.123.9%10.8%
International    
Concessions68.175.310.5%(1.4%)
   Energy business line359.4717.399.6%5.7%
   Eurovia392.5458.816.9%9.3%
   VINCI Construction 1,305.8 1,490.214.1%10.0%
Contracting 2,057.7 2,666.329.6%8,7%
Eliminations and miscellaneous(14.0)(14.0)  
Total 2,111.9 2,727.629.2%8.4%
Concession subsidiaries’ external construction revenue2.26.2175.3%172.9%
Total International 2,114.1 2,733.829.3%8.6%

* Restated: In order to enable comparisons to be made from one year to the next, 1st quarter 2010 information has been restated pursuant to the choice made by VINCI to account for jointly controlled companies using the equity method as from financial year 2010, in accordance with IAS 31 ‘Interests in Joint Ventures’, as well as the grouping under the Energy business line of most of its facilities management activities within the division VINCI Facilities. These activities were previously split between VINCI Energies and VINCI Construction.


Change in VINCI Autoroutes’ revenue in the 1st quarter of 2011

 ASFEscotaCofirouteArcourVINCI Autoroutes
Light vehicles3.5%3.0%2.7%-3.2%
Heavy vehicles4.3%4.6%2.0%-3.8%
Traffic on a stable network3.6%3.2%2.6%-3.3%
New sections--1.7%*NS0.4%**
Other impacts2.5%2.9%1.8%-2.5%
Toll receipts (in € millions)5061422448899
2011/2010 change6.1%6.1%6.1%14.6%6.2%
      
Revenue (in € millions)5181442488918
2011/2010 change6.0%6.1%5.9%14.6%6.1%

* A86 Duplex
** A86 Duplex and Arcour A19


Traffic on French motorway concessions (excluding A86 Duplex)
(in millions of km travelled)

 1er quarter
 20102011Change
ASF 5,453 5,650 3.6%
Light vehicles 4,458 4,612 3.5%
Heavy vehicles995 1,038 4.3%
Escota 1,408 1,453 3.2%
Light vehicles 1,259 1,297 3.0%
Heavy vehicles1491564.6%
Cofiroute (intercity network) 2,114 2,168 2.6%
Light vehicles 1,730 1,777 2.7%
Heavy vehicles3833912.0%
Traffic on stable network 8,975 9,271 3.3%
Light vehicles 7,448 7,686 3.2%
Heavy vehicles 1,527 1,585 3.8%
Arcour46509.5%
Light vehicles39429.5%
Heavy vehicles789.7%
Traffic on actual network 9,021 9,321 3.3%
Light vehicles 7,486 7,729 3.2%
Heavy vehicles 1,534 1,592 3.8%

 

Contracting order book (Energy business line, Eurovia, VINCI Construction)
(in € billions)

  31 March 2010 restated* 31 december 2010 31 march 2011 Versus 31 March 2010 Versus 31 december 2010
Energy business line*3.36.36.7101%6%
Eurovia6.15.25.4(11%)5%
VINCI Construction *14.914.514.5(3%)0%
Total24.425.926.69%3%
o/w France11.413.313.821%4%
o/w International12.912.612.8(1%)2%

*1st quarter 2010 information has been restated pursuant to the choice made by VINCI to account for jointly controlled companies using the equity method as from financial year 2010, in accordance with IAS 31 ‘Interests in Joint Ventures’, as well as the grouping under the Energy business line of most of its facilities management activities in the division VINCI Facilities. These activities were previously split between VINCI Energies and VINCI Construction.