Concessions
Outlook
Barring exceptional events, traffic on the French motorway network should prove resilient and remain comparable to 2022 levels. Long-term growth trends show that road transport is and will remain the predominant mode of transportation in France.
Traffic on road infrastructure outside France is also expected to continue its growth trend.
In the airports sector, the recovery in airport traffic gathered pace throughout 2022. Several hubs in Europe and the Americas are currently operating at close to, or above, 2019 levels. Passenger traffic in the Group’s airports should continue to recover but is not expected to return to 2019 levels in 2023 due to the lag observed in Asia.
For the medium and long term, structural mobility needs will continue to drive growth in airport activities.
The concessions business lines will work towards reducing their direct environmental impact and help all their stakeholders meet their shared goal to decarbonise and develop the climate-resilience of infrastructure.
In light of these in-depth transformations, the concession contract model appears all the more appropriate and particularly well-suited for this type of investment, as do the Group’s long-term strategy and positioning as a player at the centre of global mobility challenges.
VINCI Autoroutes’ competitive position
Motorway networks under concession in Europe (in km)
| Network | Km |
|---|---|
| Atlantia | 9,400 |
| VINCI Autoroutes | 4,443 |
| Eiffage | 2,642 |
| Brisa | 1,363 |
Sources: internal studies, company communication.
VINCI Airports’ competitive position
VINCI Airports is the leading private operator and the most geographically diversified, with 65 airports operated worldwide in 2022. The main listed airport operators in Europe are Aena, Groupe ADP and Fraport.
In Europe, VINCI Airports operates 10 airports in Portugal (55.7 million passengers) and 12 airports in France (16.0 million passengers), including Lyon-Saint Exupéry (8.6 million passengers). It also operates London Gatwick (32.8 million passengers) and Belfast International (4.8 million passengers) in the United Kingdom and Belgrade airport in Serbia (5.6 million passengers).
In Asia, VINCI Airports operates the three airports in Cambodia (2.4 million passengers) and holds the concession, as part of a consortium with Japanese partners, for the three airports in the Kansai region of Japan (22.2 million passengers).
In Latin America, VINCI Airports holds concessions for eight airports in Brazil (11.2 million passengers), Guanacaste airport in Costa Rica (1.4 million passengers) and six airports in the Dominican Republic (6.0 million passengers). In Chile, as part of a consortium with Groupe ADP and Astaldi, VINCI Airports operates the international airport in Santiago (18.7 million passengers).
In December 2022, VINCI Airports became the largest shareholder of OMA, a group operating 13 airports in Mexico (23.2 million passengers). In the United States, VINCI Airports operates five airports under concession or management contracts (9.7 million passengers).
Sources: internal studies, company literature.
Energy
Outlook
The Energy business will continue to capitalise on the growing focus on energy issues and to leverage the global digital transformation momentum.
Many countries are increasing the share of electricity, particularly from renewable sources, in their energy mix.
Thanks to their position across the entire electric power value chain – in production, transmission, transformation and distribution – these business lines can play a key role in this fundamental trend, which the current energy sufficiency agenda is helping to consolidate.
Combined with the need for digital transformation, this deep-seated shift will require considerable investments aimed at accelerating the renewal of buildings, networks and production sites.
VINCI Energies is playing an active role in this process by emphasising the environmental dimension of its solutions in order to help its customers reduce their carbon footprint.
Thanks to a buoyant environment, a robust order book and full integration of its latest acquisitions, VINCI Energies should enjoy further growth in its business volume and a stronger operating margin in 2023.
For its part, Cobra IS expects revenue to increase by at least 10%, driven both by the ramp-up of recently won major EPC (Engineering, Procurement and Construction) projects – which are in direct relation with the energy transition – and by a good level of performance in its flow business.
In renewable energy production, 2023 will open a new chapter for the Group as the 0.6 GW Belmonte photovoltaic complex in Brazil begins producing electricity.
Construction on projects in Spain and Latin America totalling a further 1.4 GW is expected to start in the coming months.
Competitive position
FRANCE
VINCI Energies is a major player in the French market, where it competes mainly with Spie, Bouygues Energies & Services/Equans, SNEF and Eiffage Énergie Systèmes.
EUROPE
VINCI Energies is a top player in Germany, where it generated revenue of over €2.6 billion in 2022, as well as in Switzerland, Scandinavia (Sweden, Finland and Norway), Belgium, the Netherlands, Spain, Portugal, the United Kingdom and Romania. In the rest of Europe, such as Austria, Italy, the Czech Republic or Poland, VINCI Energies is a significant player in certain business activities.
Cobra IS has a strong presence in Spain, its domestic market, where it generated close to €2.5 billion in revenue in 2022. Its main competitors in the engineering, construction and services sectors are Elecnor, Acciona and Técnicas Reunidas. Several large groups, such as Iberdrola, are also active in the development of renewable energy projects. Cobra IS has a long[1]established presence in Portugal and regularly applies its expertise elsewhere in Europe – Germany, Belgium, Scandinavia, Italy and the United Kingdom. Source: company literature.
OUTSIDE EUROPE
VINCI Energies is a long-time player in Africa, where it is a leader in Morocco and expanding its operations in West Africa. VINCI Energies also operates in the Middle East and has a solid foothold in New Zealand and Australia, as well as in South East Asia, with operations in Indonesia and Singapore. With the acquisition of Transelec Common Inc. in Canada in 2020 and that of PrimeLine Utility Services in 2018, VINCI Energies is expanding its presence in North America. In South America, VINCI Energies mainly operates in Brazil.
Cobra IS is a long-established player in Brazil, where it regularly carries out large EPC (Engineering, Procurement and Construction) projects and develops renewable energy assets. Its competitors include Tabocas, Elastri and Planova. Broadly speaking, Latin America – especially Mexico and Colombia – is a key market for Cobra IS.
Sources: internal studies, company literature.
Construction
Outlook
At the end of 2022, VINCI Construction’s order book stood at a historically high €33.8 billion, with a higher proportion of recurring business and small- or medium-sized contracts than in previous years.
This places the business line in a strong position, enabling it to take a more selective approach to new business and focus primarily on operational excellence and improving its margin. The macroeconomic environment will most likely remain challenging in 2023, as fears over price increases and limited supply of materials and power have not yet abated, particularly in Europe.
Its resilient business model – which has proven an effective bulwark against the ups and downs of the global economy –, its geographical diversification and its efficient decentralised organisation provide VINCI Construction with the means to focus on operational performance while promoting cross-business synergies.
In the medium and long term, VINCI Construction will continue to benefit from buoyant trends in all its markets. The energy and environmental transition, which accounts for a growing proportion of projects, generates considerable demand for construction, rehabilitation and renovation of buildings, urban improvements and infrastructure. The growing need for transport of all types, and the changes in the way we live and work arising from society-wide shifts, will open up significant opportunities for the construction industry.
VINCI Construction will address these challenges by speeding up the deployment of sustainable and innovative solutions, while pushing ahead with its efforts to reduce its direct footprint.
Competitive position
SPECIALTY NETWORKS
Soletanche Freyssinet, world leader in specialist civil engineering, operates in more than 100 countries and is active on a very fragmented market. Its competitors include Trevi, Bauer and Keller in special foundations, and VSL (a Bouygues subsidiary) in prestressing and stay cable systems.
FRANCE
VINCI Construction is the leader in the building and civil engineering sectors in France, ahead of Bouygues Construction, Eiffage Construction, Fayat, NGE and Spie Batignolles. The remaining market is divided among several medium-sized regional companies (including Demathieu Bard and Léon Grosse) and a large number of small contractors. In the transport infrastructure and urban development sectors, VINCI Construction is a market leader alongside Colas (Bouygues group) and Eiffage Infrastructures. The market is otherwise shared by a large number of local and regional companies. VINCI Construction is also market leader in aggregates, where its competitors include roadworks companies and cement groups such as Holcim, GSM (HeidelbergCement group) and Cemex, along with a number of local producers.
GERMANY
VINCI Construction, through Eurovia GmbH, is one of the sector’s main players with Strabag, in a market made up mainly of regional players.
UNITED KINGDOM
VINCI Construction operates in the United Kingdom through its subsidiaries specialising in the building, civil engineering, road, long-term maintenance services (road infrastructure) and facility management (building) markets. Its main competitors are Balfour Beatty, Kier, Morgan Sindall, Laing O’Rourke, Tarmac (CRH group), Amey (Ferrovial group), FM Conway, Sir Robert McAlpine, Aggregate Industries (Holcim) and Hanson (HeidelbergCement group).
CENTRAL EUROPE
VINCI Construction operates in the region through its local subsidiaries, notably in Poland, the Czech Republic and Slovakia. VINCI Construction is among the leaders in road and rail works in the Czech Republic. Its main competitors are Porr, Metrostav and Strabag
NORTH AMERICA
In Canada, VINCI Construction, together with its local entities, is one of the major players in road infrastructure works in Quebec, Alberta and British Columbia. Its main competitors are subsidiaries of Colas, CRH and Holcim, as well as local companies. In the United States, VINCI Construction, together with its local entities, is a market leader in roadworks on the east coast, with operations in 10 eastern states and in Texas. For construction works, its main competitors are Archer Western Contractors (Walsh Group) and Lane Construction (Webuild); for the manufacture and application of asphalt concrete, it competes against Preferred Materials (CRH) and a large number of regional players.
AFRICA
Operating in 23 countries, VINCI Construction is a major player, through its subsidiary Sogea-Satom, in Central Africa, West Africa, Equatorial Africa and East Africa.
OCEANIA
VINCI Construction is a major player in the New Zealand and Australian infrastructure markets through its subsidiaries HEB Construction and Seymour Whyte.Source: internal studies, company literature.