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Competitive position and Outlook

Concessions

Outlook

Visibility remains extremely low at the beginning of 2021, as concessions activities depend on the evolving health situation and potential resulting restrictions. At this stage, it is impossible to offer reliable traffic forecasts for the next few quarters, either for VINCI Airports or VINCI Autoroutes.

For VINCI Autoroutes, traffic was still impacted by travel restrictions at the beginning of 2021. However, levels could return to normal relatively fast once measures are lifted, as was observed in the summer of 2020.

For VINCI Airports, recovery will be more gradual. The main indicators show that activity will fall further in 2021 compared to pre-pandemic levels.

Given the circumstances, VINCI’s concessions business lines will continue to implement their cost optimisation and investment plans, while honouring their contractual and regulatory obligations.

Over and above short-term uncertainties, concessions should be analysed with respect to their long-cycle economic rationale, whether this means their business model, fundamental mobility needs underlying their markets, public service projects they undertakefor authorities, or their relations with users. Building on that analysis, VINCI’s concessions business lines will continue to strengthen their partnerships with the regions in which they operate as key players, and develop services that improve mobility and the travel experience, thanks in particular to digital technology.

The same long-term vision will guide their environmental approach. In line with its commitments,VINCI pledges to make an active contribution to ecological transition in the mobility sector by transforming its infrastructure and fostering new practices that reduce the carbon footprint of travel.

VINCI Autoroutes’ competitive position

Motorway networks under concession in Europe (in km)

Sources: internal studies, company communication.

VINCI Airports’ competitive position

VINCI Airports is the leading private operator and the most geographically diversified, with 45 airports operated worldwide.
The main listed airport operators in Europe are Aena, Groupe ADP and Fraport.
In Europe, VINCI Airports operates 10 airports in Portugal (18.0 million passengers) and 11 airports in France (6.8 million passengers), including Lyon-Saint Exupéry (3.6 million passengers). It also operates London Gatwick Airport (10.2 million passengers) and Belfast International Airport (1.7 million passengers) in the United Kingdom, Belgrade Airport in Serbia (1.9 million passengers) and Stockholm Skavsta Airport in Sweden (0.6 million passengers).
In Asia, VINCI Airports operates the three airports in Cambodia (2.2 million passengers) and holds the concession, as part of a consortium with Japanese partners, for the three airports in the Kansai region of Japan (15.8 million passengers).
In Latin America, VINCI Airports holds concessions for the Salvador airport in Brazil (3.9 million passengers), the Guanacaste airport in Costa Rica (0.5 million passengers) and six airports in the Dominican Republic (2.5 million passengers).
In Chile, as part of a consortium with Groupe ADP and Astaldi, VINCI Airports operates the international airport in Santiago (8.5 million passengers).
In the United States, VINCI Airports operates five airports under concession or management contracts (4.0 million passengers).

Source: internal studies, company literature.

Energy

Outlook

In spite of the uncertainties surrounding the global health crisis, VINCI Energies should continue to display resilience in 2021.Its diverse business lines and geographies, combined with a network-based management model, will contribute to improving economic performance in the short term, as VINCI Energies’ business units continue to adapt to their customers’ evolving requirements.
In all its markets, VINCI Energies will gain from buoyant medium- and long-term trends. The expanding ecological transition will impact all activities; at the same time, advances in digital technologies, in particular as regards data analysis and processing, will drive the transformation of energy and transport infrastructure, industrial processes, buildings and communication networks.
VINCI Energies will support these developments by offering ever more environmentally beneficial solutions and services to assist its customers in reducing their carbon footprint, while also working on shrinking its own emissions.
In this context, by combining environmental impact management, operating performance, new services and user comfort, VINCI Energies will step up its position as a technology integrator with the capacity to offer its customers the most efficient and sustainable solutions.

VINCI Energies' competitive position

France

VINCI Energies is a major player in the French market, where it competes mainly with Spie, Engie Solutions, SNEF, Eiffage Énergie and Bouygues Energies & Services.

Europe

VINCI Energies is a top player in Germany, where it generated revenue of over €2 billion in 2020, 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, for instance in Austria, Italy, the Czech Republic or Poland, VINCI Energies is a significant player in certain business activities.

Outside Europe

VINCI Energies is a long-time player in the African market, where it is a leader in Morocco and growing its operations in West Africa. VINCI Energies also operates in the Middle East and has a solid foothold in Oceania, through its presence 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, following that of PrimeLine Utility Services in 2018, VINCI Energies is expanding its presence in energy infrastructure services in North America. In South America, VINCI Energies mainly operates in Brazil

Source: company literature.

Construction

Outlook

VINCI Construction: VINCI Construction’s order book, up 24% year on year, reached an all-time record of €24 billion at the end of 2020. In 2021, while growth will ultimately depend on how and when the health and economic situations improve, the business line will focus on significantly improving its results, particularly in France, by applying selective order-taking to bid on the projects that create the most value.
VINCI Construction will seek to maintain a balance between major projects that leverage its design-build model and its ability to carry out complex operations, as illustrated by the many sizeable contracts it won in 2020, and, on the other hand, smaller- scale projects that strengthen its regional roots. These two pillars contribute to effective synergies within the business line as well as with the Group’s other entities.
VINCI Construction France expects a slowdown in the office building market in the medium term, but should reap the benefits of robust activity in the Greater Paris area thanks to the major building projects under way or recently won (including The Link in La Défense) and the Grand Paris rail projects.
Business levels for local subsidiary networks outside France are expected to vary from one region to another, declining in Africa, remaining stable in Central Europe and the United Kingdom, and expanding in Oceania.
Following record order intake in 2019 and 2020, the Major Projects Division is expected to post strong growth; 2021 will see work commencing on several significant projects won recently. The division will also gain from the contribution of the energy infrastructure and waste-to-energy activities previously carried out by Entrepose.
Slight growth is expected in Soletanche Freyssinet’s specialist activities, which are employed on a wide variety of projects.
In accordance with the Group’s commitments, VINCI Construction will accelerate its efforts to reduce the environmental footprint of its activities and develop more environmentally conscious products and services for its customers.

Eurovia: The order book at the end of the year suggests that revenue in 2021 will be comparable to 2020. Eurovia could benefit, in most of the countries where it has operations, from the recovery plans introduced by governments in response to the crisis. These measures may start to produce positive effects for Eurovia in the near term as a large proportion of the company’s revenue is generated by activities that are eligible for public investments.
Eurovia will strive to continue to improve operational performance and maintain a high level of earnings. To achieve this, it will draw on the agile, market-driven organisation which has lent it the resilience it needed to weather the current crisis and downturns in the past.
In France, after a doubly exceptional year in 2020 due to the public health and electoral context, local authorities and their elected representatives are expected to step up much-needed investments in the modernisation and maintenance of infrastructure and urban facilities. The demand for sustainable transport will generate a growing number of projects to adapt roads and public spaces across all regions. In the Greater Paris area, activity should also be supported by the major railway projects under way or recently won as part of the Grand Paris programme.
Eurovia will benefit from similarly strong trends in other European countries and in the Americas, taking advantage of its operations spanning a wide variety of markets across mobility infrastructure and urban amenities.
In line with the Group’s commitments, Eurovia will accelerate the environmental transformation of its business activities, products and services, by developing processes aimed at reducing the carbon footprint of roadworks operations, systematically incorporating circular economy principles in its materials production activities, and broadening its expertise in the protection of natural habitats and ecological engineering. This will significantly reduce the direct environmental impact of its operations while contributing to the ecological transition of the sector as a whole.

Competitive position

VINCI Construction

FRANCE
VINCI Construction is the leader in a market estimated to be worth revenue of around €200 billion, 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.

UNITED KINGDOM
VINCI Construction UK is a company of significant size in the United Kingdom’s building and civil engineering sectors. Its main competitors are Balfour Beatty, Kier, Laing O’Rourke, Interserve and Sir Robert McAlpine. The British market is estimated to be worth revenue of around £150 billion.

CENTRAL EUROPEVINCI Construction operates in the region through its medium-sized local subsidiaries, notably in Poland, the Czech Republic and Slovakia. Its main competitors are Strabag, Skanska and Porr, as well as Budimex (Ferrovial group) in Poland and Metrostav in the Czech Republic.

AFRICA
Operating in 23 countries, Sogea-Satom is a major player in Central Africa, West Africa, Equatorial Africa and East Africa. Its main competitors are European, Asian (particularly Chinese) and African companies.

OCEANIA
VINCI Construction is a major player in New Zealand’s infrastructure market through its subsidiary HEB Construction. Since the end of 2017, VINCI Construction has ramped up its presence in Australia with the acquisition of Seymour Whyte.

SPECIALIST MARKETS
Soletanche Freyssinet is world leader in specialist civil engineering, 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.

Source: Euroconstruct, November 2019 (market size), company literature.

Eurovia

FRANCE
Eurovia is one of the leaders in the road and rail works market with Colas and Eiffage Infrastructures. The market is otherwise shared by a large number of local and regional contractors. Eurovia is market leader in aggregates, where its competitors include roadworks companies and cement groups such as LafargeHolcim, GSM (HeidelbergCement Group) and Cemex, along with several hundred local producers.

GERMANY
Eurovia GmbH is one of the sector’s main players with Strabag, in a market made up mainly of numerous regional players. In addition, Eurovia’s rail works subsidiary ETF is expanding its business in Germany following the acquisition of THG Baugesellschaft GmbH.

UNITED KINGDOM
Eurovia UK, through its subsidiary Ringway, is a major player in long-term road maintenance contracts. Its main competitors are Amey (Ferrovial group), Kier and Balfour Beatty. Eurovia UK also operates in conventional roadworks in competition with Balfour Beatty and Tarmac (CRH Group), Aggregate Industries (LafargeHolcim), Hanson (Heidelberg) and Conway

CZECH REPUBLIC
Eurovia CS is among the leaders in road and rail works. Its main competitors are Porr, Metrostav and Strabag.

NORTH AMERICA
In Canada, Eurovia is one of the major players in road infrastructure works in Quebec, Alberta and British Columbia through subsidiaries Eurovia Québec Construction, Carmacks and BA Blacktop. Its main competitors are subsidiaries of Colas, CRH and LafargeHolcim, as well as local companies. In the United States, Eurovia is a market leader in roadworks on the east coast, with operations in 12 states, and in Texas. For construction works, its main competitors are Archer Western Contractors (Walsh Group) and Lane Construction (Salini Impregilo); for the manufacture and application of asphalt concrete, it competes against Preferred Materials (CRH) and a large number of regional players.

Source: company literature

Last updated: 17/05/2021