Certain terms, including some financial terms, related to the VINCI group's activities are defined below.
Average invested capital - Calculation based on five measurement points, i.e. half of invested capital at 1 January plus invested capital at the end of the first, second and third quarters, plus half of invested capital at the end of the year, divided by four.
Average visible equity - Calculation based on five measurement points, i.e. half of equity attributable to holders of capital securities (shareholders) at 1 January plus equity attributable to holders of capital securities at the end of the first, second and third quarters, plus half of equity attributable to holders of capital securities at the end of the year, divided by four.
Basic earnings per share - Net income attributable to owners of the parent divided by the weighted average number of shares outstanding during the period less the weighted average number of treasury shares.
Big Data - A very data set, structured or otherwise, which requires suitable analysis tools. The "big data" phenomenon relates to new uses, such as social media, online video and connected objects, which every day create billions of bytes of data that can no longer be stored, processed and analysed using traditional tools.
BIM (Building Information Modelling) - A digital model allowing collaborators to integrate, manage and visualise all the data needed to design and build a building up to the operation and maintenance phase.
BU (Business Unit) - Profit centre.
Business - The group consists of three core businesses – concessions , energy and construction – which each consist of business lines.
Capital employed - Non-current assets less the working capital requirement including current provisions and less tax payable.
Cash flow from operating activities - Cash flow from operations adjusted for changes in operating working capital requirement and current provisions, interest paid, income taxes paid and dividends received from companies accounted for under the equity method.
Cash flow from operations before tax and financing costs (Ebitda) - Ebitda corresponds to recurring operating income adjusted for additions to depreciation and amortisation, changes in non-current provisions and non-current asset impairment, gains and losses on asset disposals. It also includes restructuring charges included in non-recurring operating items. The reconciliation between this indicator and consolidated net income for the period is presented in the cash flow statement.
Castor - An employee savings plan open to group staff. the plan is invested in vinci shares, which are offered on preferential terms.
Cloud computing - The use of remote it storage servers, rented on demand, via the internet.
Concession subsidiaries’ revenue from works done by non-Group companies - This indicator relates to construction work done by concession companies as programme manager on behalf of concession grantors. Consideration for that work is recognised as an intangible asset or financial asset depending on the accounting model applied to the concession contract, in accordance with IFRIC 12 “Service Concession Arrangements”. It excludes work done by Contracting business lines.
Concessions - All activities that consist of designing, financing and operating transport infrastructure and public amenities under public-private partnerships. the main concessions business lines are vinci autoroutes and vinci airports.
Consolidated invested capital - Total assets minus non-interest-bearing liabilities.
Consolidated return on invested capital - Operating income plus net financial income/expense expressed as a percentage of average invested capital.
Cookie - A cookie is a small text file stored, with your permission, on your device (computer, mobile or tablet) when you visit a website or click on an ad. It is used to collect information about your browsing actions and send you services adapted to your device (computer, mobile or tablet).
Cost of net financial debt - The cost of net financial debt comprises all financial income and expense relating to net financial debt as defined above. It therefore includes interest expense and income from interest rate derivatives allocated to gross debt, along with financial income from investments and cash equivalents. The reconciliation between this indicator and the income statement is detailed in the notes to the Group’s consolidated financial statements.
CSR (corporate social responsibility) - Approach through which workforce-related, social and environmental issues are integrated into the group's activities.
Data center - Physical site where hardware making up an organisation's information system (central servers, storage servers etc.) is located.
Design Thinking - An approach based on innovation and innovation management. It involves a combination of analytical thinking and intuitive thinking, and relies on a co-creative process in which the end-user also contributes to the discussion.
Diluted earnings per share - To calculated diluted earnings per share, the weighted average number of shares outstanding is adjusted for the potentially dilutive effect of all equity instruments issued by the company, in particular share subscription options and performance shares. the dilution resulting from the exercise of share subscription options and from performance shares is determined using the method defined in ias 33. in accordance with this standard, plans in which the stock market price is greater than the average price during the period are excluded from the diluted earnings per share calculation.
Dividend - Remuneration paid to shareholders of a company in return for their equity investment. the dividend is set in a shareholders' general meeting by the shareholders, who decide how to appropriate earnings for the relevant period based on the proposals of the board of directors. the dividend is paid to each holder of a unit or share.
EBIT - Operating income from ordinary activities - This indicator is included in the income statement. Ebit measures the operational performance of fully consolidated Group subsidiaries. It excludes share-based payment expense (IFRS 2), other recurring operating items (including the share of the income or loss of companies accounted for under the equity method) and non-recurring operating items.
Ebitda - Cash flow from operations before tax and financing costs - Ebitda corresponds to recurring operating income adjusted for additions to depreciation and amortisation, changes in non-current provisions and non-current asset impairment, gains and losses on asset disposals. It also includes restructuring charges included in non-recurring operating items. The reconciliation between this indicator and consolidated net income for the period is presented in the cash flow statement.
Ebitda margin, Ebit margin and recurring operating margin - Ratios of Ebitda, Ebit, or recurring operating income to revenue excluding concession subsidiaries’ revenue from works done by non-Group companies.
Eco-design - Approach intended to factor in the environment when designing a building and through all stages of the building's life cycle.
Employee Shareholders’ Circle - Group consisting of employee shareholders who have access to exclusive benefits such as site visits, meetings, project-related events and specific publications.
Energy-positive building - A building that produces more energy (in the form of electricity or heat) than is consumed in running it.
Equity per share - Visible equity attributable to shareholders divided by the number of shares in issue at the end of the year.
Equity/asset ratio - Visible equity including non-controlling interests as a percentage of total assets.
Free cash flow - Free cash flow is made up of operating cash flow and growth investments in concessions and PPPs. The reconciliation between this indicator and consolidated net income for the period is presented in the Group’s cash flow statement.
Gearing - Net interest-bearing debt divided by visible equity including non-controlling interests.
Hackathon - An IT developer event taking place over several days and at least one night, in which developers collaborate on specific, innovative programming issues, using a highly rigorous method with the aim of creating a ready-to-use prototype application.
Innovation Awards - Participatory innovation initiative that encourages all group employees to innovate together as part of regional competitions. practical initiatives may win awards in regional rounds and in the final awards ceremony.
Intrapreneur - A member of a company that, in agreement with the company and while remaining an employee, transforms an idea or project into a business that is profitable and attractive for the company.
IR - Investor Relations.
LEED® (Leadership in Energy and Environmental Development) - An international system for the environmental certification of buildings, based on resource use, location, design and indoor climate of buildings as well as minimisation of energy consumption and waste provide.
Life cycle analysis - Assessment of a building's environmental impact throughout its life cycle, from the acquisition of the raw materials used to build it to its use.
Like-for-like revenue growth - This indicator measures the change in revenue at constant scope and exchange rates. ¡¡Constant scope: the scope effect is neutralised by the following methodology: – The revenue of year N is adjusted from companies that joined the Group in year N. – The revenue of year N-1 includes the full-year revenue of companies joining the Group in year N-1, and excludes the contributions from companies that left the Group in years N-1 and N. Constant exchange rates: the currency effect is neutralised by applying exchange rates in year N to foreign currency revenue in year N-1.
LTAR (Lost Tıme Accident Rate) - A measure of work time lost due to accidents. it is calculated by taking the number of lost time accidents, multiplying by 1,000,000 hours and dividing by the total number of work hours.
Managed services - The outsourcing of some or all of a company’s IT resources under a contract.
Net financial surplus/debt - It corresponds to the difference between financial assets and financial debt. If the assets outweigh the liabilities, the balance represents a net financial surplus, and if the liabilities outweigh the assets, the balance represents net financial debt. Financial debt includes bonds and other borrowings and financial debt (including finance lease transactions and liabilities relating to financial instruments). Financial assets include cash and cash equivalents and assets relating to derivative instruments. The reconciliation between this indicator and balance sheet items is detailed in the notes to the Group’s consolidated financial statements.
Net income excluding non-recurring items attributable to owners of the parent - Net income excluding non-recurring operating items after tax, attributable to owners of the parent.
Net operating financial assets/liabilities - Accounts in debit/liabilities that bear net interest, with the exception of construction loans to co-operative housing associations and retirement benefit obligations that do not bear net interest.
NOPAT (net operating income after tax) - Recurring operating income less theoretical tax expense.
Open Data - Data that an organisation makes available to all, in the form of digital files, so that they can be reused.
Open innovation - Mode of innovation based on sharing and co-operation between group companies and their ecosystems (partners, students, researchers, startups etc.).
Operating cash flow - Operating cash flow is a measurement of cash flows generated by the Group’s ordinary activities. It is made up of Ebitda, the change in operating working capital requirement and current provisions, interest paid, income taxes paid, dividends received from companies accounted for under the equity method and net operating investments net of disposals. Operating cash flow does not include growth investments in concessions and public-private partnerships (PPPs). The reconciliation between this indicator and consolidated net income for the period is presented in the cash flow statement.
Operating income - this indicator is included in the income statement.
Operating income is calculated by taking recurring operating income and adding non-recurring income and expense (see above).
Operating income from ordinary activities - EBIT - This indicator is included in the income statement. Ebit measures the operational performance of fully consolidated Group subsidiaries. It excludes share-based payment expense (IFRS 2), other recurring operating items (including the share of the income or loss of companies accounted for under the equity method) and non-recurring operating items.
Order book - The order book in the Contracting business (VINCI Energies, Eurovia, VINCI Construction) represents the volume of business yet to be carried out on projects where the contract is in force (in particular after service orders have been obtained or after conditions precedent have been met) and financed. At VINCI Immobilier, the order book corresponds to the revenue, recognised on a progress towards completion basis, that is yet to be generated on a given date with respect to property sales confirmed by a notarised deed or with respect to property development contracts on which the works order has been given by the project owner.
Order intake - In the Contracting business lines (VINCI Energies, Eurovia, VINCI Construction), a new order is recorded when the contract has been not only signed but is also in force (for example, when the service order has been obtained or when conditions precedent have been met) and when the project’s financing is in place. The amount recorded in order intake corresponds to the contractual revenue. At VINCI Immobilier, order intake corresponds to the value of properties sold off-plan or sold after completion in accordance with a notarised deed, or revenue from property development contracts where the works order has been given by the project owner. For joint property developments: - If VINCI Immobilier has sole control over the development company, it is fully consolidated. In that case, 100% of the contract value is included in order intake. - If the development company is jointly controlled, it is accounted for under the equity method and its order intake in not included in the total.
Overall performance - Combination of results achieved by the Group, generated by the positive interaction between strategy, financial results and the implementation of effective workforce-related, social and environmental solutions.
PPE (Personal Protective Equipment) - Safety gear that people are required to use on-site.
PPP - Public-private partnership – concessions and partnership contracts - Public-private partnerships are forms of long-term publicsector contracts through which a public authority calls upon a private-sector partner to design, build, finance, operate and maintain a facility or item of public infrastructure and/or manage a service.
In France, a distinction is drawn between concessions (for works or services) and partnership contracts.
Outside France, there are categories of public contracts – known by a variety of names – with characteristics similar to those of the French
concession and partnership contracts.
In a concession, the concession-holder receives a toll (or other form of remuneration) directly from users of the infrastructure or service, on terms defined in the contract with the public-sector authority that granted the concession. The concession-holder therefore bears “traffic level risk” related to the use of the infrastructure.
In a partnership contract, the private partner is paid by the public authority, the amount being tied to performance targets, regardless of the infrastructure’s level of usage. The private partner therefore bears no traffic level risk.
Proof of concept (POC) - Practical preliminary experiment carried out on a method or idea to show its feasibility. A POC is carried out well ahead of the development process for a new product or process, and is an important step on the way to a fully functioning prototype.
Recurring operating income - This indicator is included in the income statement. Recurring operating income is intended to present the Group’s operational performance excluding the impact of non-recurring transactions and events during the period. It is obtained by taking operating income from ordinary activities (Ebit) and adding the IFRS 2 expense associated with share-based payments (Group savings plans and performance share plans), the income or losses of subsidiaries accounted for under the equity method, and other recurring operating income and expense. The latter category includes recurring income and expense relating to companies accounted for under the equity method and to non-consolidated companies (financial income from shareholder loans and advances granted by the Group to some of its subsidiaries, dividends received from non-consolidated companies, etc.).
Renewable energies - Sources of energy that are replenished naturally and quickly enough that they are considered inexhaustible on a human time scale.
Research & Development (R&D) - A set of activities carried out in a systematic way in order to increase the sum of knowledge, including knowledge about humans, culture and society, in order to create new applications.
Resilience - The Group's ability to adjust to variations in the economic climate by relying on its concession/construction business model.
Return on capital employed (ROCE) - NOPAT excluding non-recurring items, divided by the average capital employed at the opening and closing balance sheet dates for the financial year in question.
Return on equity - Income attributable to shareholders expressed as a percentage of average visible equity attributable to shareholders.
Return on equity (ROE) - Net income for the current period attributable to owners of the parent, divided by equity excluding non-controlling interests at the previous year end.
Return on invested capital in core businesses, markets and operating units - Operating income plus net financial income/expense minus interest income from the VINCI group's cash position and other financial items, expressed as a percentage of average invested capital. Capitalised interest expense is deducted from total assets for the residential and commercial real-estate development businesses.
RSS (Really Simple Syndication) - System of notifications alerting users to updates made to the vinci website.
Shareholders’ Club - Group consisting of individual shareholders who have access to exclusive benefits such as site visits, meetings, project-related events and specific publications.
Sustainable development - Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. this concept of the common good has been developing since the end of the 20th century.
The City Factory - An endowment fund and think-tank focusing on urban transition, contributing to the debate about urban innovation by supporting pioneering initiatives.
Transport infrastructure - Facilities, organised into networks, designed to help people and goods move around. the creation of transport infrastructure is a major component of town and country planning and often requires heavy investment.
VINCI Airports aircraft movements - This is the number of commercial aircraft movements recorded at a VINCI Airports airport during a given period.
VINCI Airports passenger traffic - This is the number of passengers who have travelled on commercial flights from a VINCI Airports airport during a given period.
VINCI Autoroutes motorway traffic - This is the number of kilometres travelled by light and heavy vehicles on the motorway network managed by VINCI Autoroutes during a given period.
VINCI Foundation for the Community - Corporate citizenship foundation focused on combating exclusion.
VINCI manifesto - Public and written declaration of vinci's eight commitments as a private-sector partner that works in the public interest.