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First half 2012 financial results

31 July 2012 - Finances

Financial results globally in line with Group objectives despite tougher economic situation:
- Revenue: €17.9 billion (+3.6%)
- Net income:
    - €784 million (-3.6%)
    - €821 million, adjusted1 (+1.0%)

- Earnings per share (EPS):
    - €1.44 (-2.6%)
    - €1.51, adjusted1 (+2.0%)

- 2012 interim dividend: €0.55 per share (stable)
- Order book: €33.2 billion (+11% over 12 months)
- Successful debt refinancing

2012 outlook:
- Slight revenue growth
- Operating income and net income close to levels achieved in 2011, before planned increase in tax and social charges in France

  First half 2012/11 Full year
Key figures (in € millions)       2012     2011 change 2011
Revenue2 17,942 17,323 +3.6% 36,956
Operating income from ordinary activities3 1,542 1,569 -1.7% 3,660
   % of revenue 8.6% 9.1%   9.9%
Adjusted operating income from ordinary activities4 1,577 1,569 +0.5% 3,660
   % of revenue 8.8% 9.1%   9.9%
Net income attributable to owners of the parent 784 814 -3.6% 1,904
Adjusted net income attributable to owners of the parent1 821 814 +1.0% 1,904
EPS (in €)5 1.44 1.48 -2.6% 3.48
Adjusted EPS (in €)1,5 1.51 1.48 +2.0% 3.48
Interim dividend per share (in €) 0.55 0.55 - 1.77
Cash flow from operations3,6 2,347 2,333 +0.6% 5,366
Net financial debt (14,239) (14,558) +319 (12,590)
Order book at period end (in € billions) 33.2 30.0 +10.7% 30.6

VINCI’s Board of Directors, chaired by Xavier Huillard, met on 31 July 2012, to finalise the 1st half 2012 financial statements at 30 June 2012. The Board also examined the outlook for the current year and approved the payment of a 2012 interim dividend in the amount of €0.55 per share, unchanged from the 2011 interim dividend paid in December 2011.


I. 1st half 2012 key figures

VINCI’s 1st half 2012 financial results are globally in line with full year objectives despite a more difficult economic environment, especially in Europe.

They are testimony to the strength of the Group’s concession-construction business model as well as its fundamental qualities: solid commercial positions in all of its business lines, diverse and complementary skill sets, a worldwide footprint based on vast, locally established networks, and conservative financial management.

    Consolidated revenue: €17,942 million (+3.6% actual; +1.6% on a comparable basis)

Group revenue increased primarily thanks to organic growth of 1.6%, external growth of +1.5% and a positive foreign exchange impact.

Concessions revenue rose 1.2% and was a combination of a 0.6% increase at VINCI Autoroutes, despite a slightly negative traffic evolution (-1.9%) during the 1st half, and 3.8% growth at VINCI Concessions, due mostly to VINCI Airports.

Contracting (VINCI Energies, Eurovia, VINCI Construction) revenue grew 3.5% and was driven by particularly strong performances at VINCI Construction France and the start-up of work at the Tours-Bordeaux high speed rail link, together with international external growth operations at the end of 2011 by Soletanche Freyssinet and the beginning of 2012 by Eurovia (NAPC in India and Carmacks in Canada).

36% of VINCI’s total revenue was generated outside France during the first six months of 2012 (41% in Contracting).

    Operating income from ordinary activities (EBIT): €1,542 million (-1.7% pre-adjustement4; +0.5% post-adjustment4)

First half 2012 EBIT represented 8.6% of revenue (9.1% for the 1st half of 2011) and includes a €35 million annual charge relating to the profit-sharing bonus implemented in France in the 2nd half of 2011. VINCI recorded this annual charge for a similar amount in the 2nd half of last year. Adjusting for this timing difference, 1st half 2012 EBIT increased by 0.5% year-on-year to €1,577 million (8.8% of revenue).

EBIT margins at VINCI Autoroutes and VINCI Energies are up slightly.

VINCI Construction experienced a limited decline of its margin due in large part to certain Entrepose Contracting projects.

Eurovia’s 1st half 2012 EBIT margin, not very representative due to the strong seasonal nature of its road-building activity, was particularly impacted by poor weather conditions.

Finally, VINCI Immobilier significantly improved its margin thanks to several commercial property projects.

    Net income attributable to owners of the parent: €784 million (-3.6 pre-adjustment1;+1% post-adjustment1)

Representing 4.4% of revenue, 1st half 2012 net income integrates both the after-tax impact of both the already mentioned profit-sharing bonus and the exceptional 5% tax increase on French corporations with revenue in excess of €250 million which was implemented in the 2nd half of 2011 and retroactive to 1 January 2011. Together these two items combine for an estimated negative impact of €37 million. Adjusted for them, net income rose 1.0% year-on-year to €821 million.
Diluted EPS was €1.44 (-2.6%), while post-adjusted diluted EPS was €1.51 (+2.0%).

    Cash flow from operations before tax and financing costs (EBITDA): €2,347 million (+0.6%)

At 13.1% of revenue, first half 2012 EBITDA rose slightly compared to the 1st half of 2011 as the VINCI Autoroutes margin improvement continued (68.9% vs. 68.3% in the 1st half of 2011) thanks to tight cost control. Excluding the profit-sharing bonus charge, VINCI Autoroutes’ 1st half 2012 EBITDA margin would have been 69.0%.

    Net financial debt: €14.2 billion at 30 June 2012

Net financial debt increased by €1.65 billion compared to 31 December 2011, but was down more than €300 million compared to 30 June 2011.
Other than the seasonal variation of cash flow from operations, the 6-month net debt increase was due to the high levels of concessions development capex (€598 million), external growth capex (€390 million) and share buybacks (€456 million).  First half 2012 operating cash flow increased significantly to €240 million compared with an outflow of €(110) million year before, the improvement coming mainly from the change in the working capital requirement.

Successful refinancing
In the 1st half of 2012, the Group succeeded in making several public and private debt issues totalling close to €1.5 billion with an average interest rate at issue of 3.71% (before hedging). As a result, the Group reimbursed in advance €1.8 billion of bank loans established when ASF was acquired. The average debt maturity now stands at 6.4 years, and the refinancing of debt maturing in 2012 and 2013 is largely covered.

The Group continues to be able to access credit at good conditions, as witnessed earlier this month when ASF closed a new €1.8 billion syndicated banking facility to replace one maturing at the end of 2013.

Group liquidity at the end of June 2012 was €10.6 billion, of which €3.9 billion in net cash managed and €6.7 billion of unused, confirmed bank credit lines.

    Order intake: €17.1 billion

On a like-for-like basis and excluding the exceptional Tours-Bordeaux high speed rail project (SEA) booked in June 2011, 1st half 2012 order intake was up nearly 17% compared to the same period last year due to a dynamic commercial environment both in and outside France.

    Order book: €33.2 billion at 30 June 2012 (+9% compared with 31 December 2011; +11% compared with 30 June 2011)

Reaching a new all-time high at the end of June 2012, the Group’s order book is equivalent to more than 12 months of average business activity.  A little more than 40% is expected to be executed by year-end 2012, and about one-third is scheduled for 2013.


II. 2012 outlook

In an economic context marked by the sovereign debt crises of several European Union countries, global economic activity could deteriorate in the 2nd half of 2012. At the same time, several European states are increasing fiscal discipline in order to reduce their public deficits.  New business-related tax and social charge increases in France have been announced.

Against this backdrop, VINCI is well prepared to make the necessary adjustments while actively pursuing its targeted growth strategy.

Traffic on French motorways under concession may continue to decline along the lines seen in the 1st half of 2012. Furthermore, a 2nd half 2012 decline in public spending could occur which could impact the workload of some Contracting businesses in 2013.

Nonetheless, given the other parameters impacting motorway revenue (tariff changes and the A86 Duplex), our very high order book, including its projected execution timeline, and the positive impact coming from external growth transactions, VINCI feels it is still aiming for a slight increase in the Group’s top line in 2012.

VINCI will also take advantage of the variability of its cost base such that order intake will continue to place quality ahead of volume.

Against this backdrop, the Group targets 2012 operating income and net income close to their 2011 levels, before taking into account the new increase in tax and social charges planned in France.


III. Parent company results

The parent company’s net income was €302 million in the 1st half of 2012, compared with €1,313 million for the same period in 2011.


IV. Dividend

An interim dividend of €0.55 per share in respect of 2012 will be paid in cash on 15 November 2012 (ex-date: 12 November 2012).

Analyst meeting
Tuesday, 31 July 2012 at 19:00 at VINCI’s head office, 1 cours Ferdinand de Lesseps, 92500 Rueil-Malmaison, France.


1 Excluding a profit-sharing bonus charge and an exceptional 5% increase of the French corporate tax rate for a combined, estimated after-tax impact of €37 million in the 1st half of 2012 (€0.07 per share). These charges were decided on and put into effect at the end of 2011, retroactive to  1 January 2011, and therefore did not impact the 1st half 2011 accounts.
2 Excluding concession companies’ revenue derived from works carried out by non-Group companies. Revenue calculated according to IFRIC 12, including works carried out by non-Group companies, totalled €18,222 million in the 1st half of 2012 (€17,692 million in the 1st half of 2011).
3 Including the profit-sharing bonus charge estimated at -€35 million in the 1st half of 2012 (€0 in the 1st half of 2011).
4 Before  the profit-sharing bonus charge estimated at -€35 million in the 1st half of 2012 (€0 in the 1st half of 2011).
5 After taking stock options into account.
6 Cash flow from operations before tax and financing costs (EBITDA).




 1st half 
(in € millions)201220112012/11
Revenue excluding concession subsidiaries’ revenue derived from works
carried out by non-Group companies
Concession subsidiaries’ revenue derived from works carried out by non-Group
Total revenue18,22217,692+3.0%
Operating income from ordinary activities1,5421,569-1.7%
% of revenue28.6%9.1% 
Share-based payment expense (IFRS 2)(49)(41) 
Goodwill impairment expense(1)- 
Profit/(loss) of associates2926 
Operating income1,5211,554-2.1%
% of revenue1 8.5%9.0%  
Cost of net financial debt(326)(318) 
Other financial income and expense2214 
Income tax expense(391)(380) 
Non-controlling interests(43)(57) 
Net income attributable to owners of the parent784814-3.6%
% of revenue2 4.4%4.7% 
Earnings per share (in €)31.441.48-2.6%
Interim dividend per share (in €) 0.550.55-

1 In application of IFRIC 12, Service Concession Arrangements.
2 % calculated based on revenue excluding concession subsidiaries' works revenue derived from works carried out by non-Group companies.
3After taking dilutive instruments into account.



(in € millions)30 June 201231 Dec. 201130 June 2011
Non-current assets - concessions26,72026,59026,456
Non-current assets - other8,5228,2267,973
WCR and current provisions(5,685)(6,817)(5,057)
Capital employed29,55727,99929,372
Equity attributable to owners of the parent(12,667)(12,890)(12,329)
Non-controlling interests(696)(725)(726)
Total equity(13,363)(13,615)(13,055)
Non-current provisions and other long-term liabilities (1,955)(1,794)(1,758)
Long-term financing(15,318)(15,409)(14,814)
Borrowings(18,134) (18,654)(17,989)
Net cash managed3,8956,0643,431
Net financial debt at 30 June(14,239)(12,590)(14,558)



 1st half
(in € millions)20122011
Cash flow from operations before tax and financing costs (EBITDA)2,3472,333
Change in operating WCR and current provisions (921)(1,335)
Income taxes paid(511)(481)
Net interest paid(346)(376)
Dividends received from companies accounted for under the equity method2821
Cash flows (used in)/from operating activities597162
Net investments in operating assets(358)(272)
Operating cash flow240(110)
Growth investments in concessions and PPPs (598)(492)
Free cash flow(359)(602)
Net financial investments(390)1(31)
Other (32)(105)
Cash flow before movements in share capital(780)(738)
Share capital increases and reductions302343
Share buy-backs(456)(505)
Dividends paid(698)(670)
Net cash flow for the period (1,632)(1,570)
Other changes(18)72
Change in net financial debt(1,650)(1,498)
Net financial debt at beginning of period(12,590)(13,060)
Net financial debt at end of period(14,239)(14,558)

1 Including purchase of Entrepose Contracting minority interests.



Total traffic on motorway concessions (excluding A86 Duplex)
(in millions of km travelled)

 Second quarterCumulative at 30 June
Light vehicles6,1136,260-2.4%10,66810,873-1.9%
Heavy vehicles1,0181,062-4.1%2,0412,100-2.8%
Light vehicles1,5421,570-1.7%2,8352,866-1.1%
Heavy vehicles157165-5.0%308321-4.0%
Light vehicles2,4422,477-1.4%4,1904,254-1.5%
Heavy vehicles371395-6.2%747786-5.1%
Cofiroute (Intercity network)2,8132,872-2.1%4,9365,041-2.1%
Light vehicles6059+1.0%103102+1.3%
Heavy vehicles88-4.0%1616-3.5%
Light vehicles10,15710,367-2.0%17,79618,095-1.7%
Heavy vehicles1,5531,630-4.7%3,1113,223-3.5%
Total VINCI Autoroutes11,71011,997-2.4%20,90821,318-1.9%



Order Book

  At 30 June At 31 December
in € billions201220112012/11 change 2011
VINCI Energies7.36.7+8%6.4
VINCI Construction19.017.4+9%18.3
Total Contracting33.230.0+11%30.6


Projected order book execution timeline

in € billionsOrder book at
30 June 2012
2nd half 201220132014
and after
VINCI Energies7.
VINCI Construction19.
Total Contracting33.213.911.97.4
% of total100%42%36%22%




VINCI is a global player in concessions, energy and construction businesses, employing more than 260,000 people in nearly 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.

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