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Home > Media > Press releases > First half 2016 financial results (29/07/2016)

First half 2016 financial results

29 July 2016 - 7:01 am - Finances

- Slight decline (1.5%) in revenue to €17.6 billion
  - Sustained traffic growth at VINCI Autoroutes and VINCI Airports
  - Stable business level at VINCI Energies
  - Revenue contraction at Eurovia and VINCI Construction
- Increase in order intake, particularly in France
- Increase in operating income from ordinary activities (11.7% to €1.7 billion) and net income (12.4% to €920 million)
- Interim dividend: €0.63 per share (up 10.5%)
- Confirmation of good outlook for full-year 2016

Key figures

(in € millions)First half Full Year
Cash flow from operations (Ebitda) 2,6062,471+5.5%5,664
% of revenue14.8%13.8% 14.7%
Operating income from ordinary activities1,7201,540+11.7%3,758
% of revenue9.8%8.6% 9.8%
Recurring operating income1,7021,586+7.3%3,788
Net income attributable to owners of the parent920819+12.4%2,046
Earnings per share (in €)21.651.47+12.1%3.66
Interim dividend per share (in €)0.630.57+10.5%1.84
Net financial debt (in € billions)(14.4)(13.9)-0.5(12.4)
Change in motorway traffic+3.3%+2.7% +3.0%
Change in airport passenger traffic+10.2%3+11.7% +11.4%
Order book at end of period (in € billions)29.228.7+1.8%27.7


Xavier Huillard, VINCI’s chairman and CEO, announced:

“Performance in the first half of 2016 confirms the major trends previously reported: an increase in Concessions revenue, with higher than projected traffic growth at VINCI Autoroutes and VINCI Airports; a slight decline in Contracting revenue; and a confirmed upturn in order intake, particularly in France.

In line with its strategy, the Group continued to expand internationally: in Concessions, VINCI Airports has become one of the top five players worldwide in airport management following the start of the concession operations for two airports in Japan and the acquisition of the concession-holding company of six airports in the Dominican Republic. In Contracting, new acquisitions have been made by VINCI Energies in Australia and by Eurovia in Canada.

The effectiveness of our concession-construction business model led to our winning the concession for the A355, a new motorway section bypassing Strasbourg to the west. The Group has also been named preferred bidder on the A45 motorway, which will link Saint Etienne to the Lyon urban area.
Lastly, continuing its efforts to refocus on road and airport infrastructure, the Group is selling its remaining shares in car park operator Indigo.

The Group’s financial position remains very sound, as borne out by Moody’s decision to raise its credit ratings to A3 (long term) and P-1 (short term), with a stable outlook.

Based on this good start to the year, and despite the unstable economic environment and tough competition climate in Contracting, VINCI confirms its forecast for higher earnings in 2016.”

VINCI’s Board of Directors, chaired by Xavier Huillard, met on 28 July 2016 to finalise the financial statements for the six months ended 30 June 2016. The Board also approved the payment of a 2016 interim dividend of €0.63 per share, representing an increase of 10.5%.


I. Good financial performance overall:

VINCI’s consolidated financial statements for the first half of 2016 show a slight decline in revenue but an increase in Ebitda4, recurring operating income and net income attributable to owners of the parent.

Consolidated revenue amounted to €17.6 billion, down 1.5% relative to the first half of 2015. This change was due to a 2.6% fall in revenue on a like-for-like basis, excluding a 1.2% negative currency effect and a positive 2.3% effect from changes in consolidation scope (acquisitions of Aerodom by VINCI Airports, of Orteng, APX and J&P Richardson by VINCI Energies, of GRK and HEB by VINCI Construction, and of Rail Cantech by Eurovia).

 - Concessions revenue totalled €2.9 billion, up 6.8% on an actual basis or up 5.8% like-for-like. This increase includes 18.6% growth in VINCI Airports’ revenue (up 11.4% like-for-like, excluding Aerodom, which was consolidated on 1 April 2016) and 4.9% growth in VINCI Autoroutes’ revenue.

 - Contracting revenue was €14.7 billion, down 3.6% actual or down 4.7% like-for-like, with performances varying from one business line to another. VINCI Energies’ revenue grew 3.4% on an actual basis and was stable like-for-like, Eurovia’s declined 4.7% or 3.8% like-for-like and VINCI Construction fell 7.9% or 8.6% like-for-like.

 - In France, revenue amounted to €10.3 billion, down 2.6% actual or 3.3% at constant consolidation scope. Of this decline, 1.8 points were attributable to the Tours–Bordeaux high-speed line (SEA project), which was 94% complete at the end of June 2016.

 - Outside France, revenue was €7.3 billion, up 0.2% on an actual basis but down slightly (1.4%) on a like-for-like basis. Business during the first half of the year benefited from the integration of recently acquired companies, that positive effect being partly offset by the depreciation of several currencies – mainly sterling – against the euro.

The proportion of total revenue generated outside France rose to 41.3% (40.6% in the first half of 2015); in Contracting, it was 47% (45% in the first half of 2015).

In the second quarter, the decline in revenue was limited to 1.2% (1.9% like-for-like): Concessions continued to grow, with a 5.2% increase in revenue, while in Contracting, the 4.1% decrease in revenue at constant scope and exchange rates was less pronounced than in the first quarter.

EBITDA rose 5.5% to €2.6 billion, equal to 14.8% of revenue (up 100 basis points relative to the first half of 2015), boosted by the good performances of VINCI Autoroutes and of VINCI Airports.

Operating income from ordinary activities (Ebit) increased 11.7% to €1.7 billion, representing 9.8% of revenue, compared with 8.6% in the first half of 2015. Ebit margin in the Concessions business improved to 47.2% (44.0% in the first half 2015) and that in Contracting to 2.3% (2.1% in the first half of 2015).

Performance in the Concessions business reflects good momentum in traffic at both VINCI Autoroutes and VINCI Airports. At VINCI Autoroutes, Ebit amounted to €1,205 million (€1,070 million in the first half of 2015), up 12.7%. Its Ebit margin rose from 47.5% in the first half of 2015 to 51.0%. This increase was driven by higher revenue and a firm grip on operating expenses. In addition, as a result of the concession contract extensions under the motorway stimulus plan agreed in France in August 2015, depreciation charges are spread over a longer period.

The increase in margin in the Contracting business is the result of progress at VINCI Energies and Eurovia. Lower business levels in France (amplified as the SEA project nears completion) and Africa affected VINCI Construction’s margin, offsetting the positive impact of the return to breakeven of VINCI Construction plc in the UK.

Recurring operating income, which includes the impact of share-based payment expense (IFRS 2), the Group’s share in the income or loss of companies accounted for under the equity method and other recurring operating income and expense, was €1,702 million, up 7.3%.

Net income attributable to owners of the parent amounted to €920 million, up 12.4% relative to that of the first half of 2015 (€819 million). Earnings per share After taking account of dilutive instruments. amounted to €1.65, up 12.1% (€1.47 in the first half of 2015).

Net financial debt at 30 June 2016 was €14.4 billion, up €515 million year-on-year and €2.0 billion relative to 31 December 2015.

The increase in debt over the first six months of the year was due mainly to:
 - financial investments of €1 billion during the period (Kansai Airports in Japan, Aerodom, JPR, Rail Cantech);  - payment of the final dividend for 2015 (€0.7 billion);
 - investment programmes in the Concessions business for €0.4 billion, mainly at VINCI Autoroutes.

Operating cash flow (excluding growth investments in concessions) was €0.4 billion (€0.6 billion in the first half of 2015). The seasonal increase in working capital requirement was greater than in the first half of 2015, following an exceptional improvement in operating cash flow at the end of 2015.

In the first half of 2016, VINCI created 6.4 million new shares relating to Group savings plans and share subscription option plans, and purchased 5.5 million shares in the market.
VINCI held 39.5 million treasury shares at 30 June 2016, representing 6.6% of the share capital at that date.

The Group’s liquidity amounted to €8.7 billion, comprising €2.7 billion of managed net cash and €6 billion of undrawn confirmed credit lines expiring in 2021.


II. Operating performance: good momentum in Concessions and stabilisation of Contracting

After the exceptional 7.2% increase in traffic recorded in the first quarter of 2016, boosted by the leap-year effect and Easter weekend falling in March, VINCI Autoroutes’ traffic stabilised in the second quarter of 2016 (up 0.3%). Light-vehicle traffic held up well, with a 0.6% decline due to the lower number of public holidays in May compared with 2015 and to poor weather. Heavy-vehicle traffic continued its clear upward trend, with growth of 6.2%. Over the whole six-month period, traffic on VINCI Autoroutes’ network increased 3.3% (light vehicles up 2.9%; heavy vehicles up 5.2%).

Passenger traffic at VINCI Airports continued to grow apace, with a 9.8% increase in the second quarter of 2016 (excluding Aerodom, which was consolidated on 1 April 2016) and 10.2% over the six-month period. There was a strong performance in Portugal, where passenger traffic rose 11.9%, and solid growth continued in France (5.7%) and Cambodia (4.9%).

In Contracting, order intake increased for the fifth consecutive quarter. Over the first half of 2016, it totalled €16.9 billion, up almost 11% compared with the first half of 2015, with 14% growth in France and 7% in international markets. All business lines showed progress: Eurovia up 15%, VINCI Construction up 12% and VINCI Energies up 5%. This growth was driven by business in France, where several significant contracts were signed in the second quarter, including construction of the new Eole train station and adjacent tunnels under the CNIT in La Défense and a high-rise building that will become the headquarters of the Saint-Gobain group.

The order book at 30 June 2016 stood at €29.2 billion, up 2% over 12 months. It increased 7% in France despite the near completion of the Tours–Bordeaux HSL project and declined slightly (3%) internationally. Because major projects account for a large proportion of the total, work to complete orders already in the order book will be spread over a longer timeframe.

VINCI Immobilier continued to record brisk growth in the number of apartment reservations in the first half of 2016 (24% to more than 2,300 units) and works were launched on several new projects. Revenue growth in the residential market in France offset the decline in commercial property business, attributable to the timing or project phases.


III. Key events

· Strategic initiatives

 - Early April 2016: start of concessions operations at the two airports in the Kansai region of Japan in partnership with Orix and at six airports in the Dominican Republic following the acquisition of Aerodom;

 - Signature of the A355 Strasbourg western bypass concession contract;

 - Agreement finalised on the sale of VINCI’s 24.6% stake in Indigo (formerly VINCI Park) to Ardian and Crédit Agricole Assurances (without impact on the Group’s results for the first half of 2016);

 - Strengthening of the Contracting business’s operations outside France with the acquisition of Canadian company Rail Cantech by Eurovia and of Australian company J&P Richardson by VINCI Energies. Eurovia also increased its stake in Chilean company Bitumix CVV from 50% to 100%.

· New contracts

 - Construction of three sections of onshore pipeline in Greece and Albania as part of the Trans-Adriatic Pipeline (TAP) project;

 - Road maintenance contract in Wiltshire and Swindon in the UK;

 - Design-build of an immersed road and rail tunnel between Denmark and Germany (Femern Link). The start of construction work is conditional until the German building permits are in place;

 - Construction of the new CNIT-La Défense train station and adjacent tunnels (extension of RER E - Eole Line);

 - New construction contract for the Cairo metro (phase 3 of Line 3);

 - Deployment of very high speed optical fibre infrastructure to cover the Moselle département (VINCI Energies);

 - Designated as preferred bidder for the concession contract on the A45 motorway between St Etienne and the Lyon urban area.

· Financial policy

 - Moody’s upgraded VINCI’s credit rating to A3 (long term) and P-1 (short term), with stable outlook;

 - ASF successfully issued €500 million of 10-year bonds;

 - ASF took out a €390 million, 17-year repayment loan from the European Investment Bank.


IV. 2016 outlook: higher earnings expected

Despite the unstable economic climate, VINCI is starting the second half of the year with confidence.

In Concessions, based on its performance to 30 June, VINCI Autoroutes’ revenue should grow at a slightly higher rate than last year. VINCI Airports’ revenue growth is expected to remain steady at constant perimeter although less pronounced than in 2015.

In Contracting, at constant consolidation scope and exchange rates, the achievements of the first half and the order book confirm stability in revenue for VINCI Energies and a slight decline for Eurovia and VINCI Construction. In a market that is stabilising in France and remains uncertain in some countries outside France, the priority of the Group’s companies is still to improve margins in a highly competitive environment.

These trends underpin the indications previously given for full-year 2016, i.e. a slight decline in consolidated like-for-like revenue but growth in operating income and net income.


V. Interim dividend

A 2016 interim dividend of €0.63 per share, 10.5% up on last year’s interim dividend, will be paid in cash on 10 November 2016 (ex-date: 8 November 2016).

1 Excluding concession subsidiaries’ revenue derived from works carried out by non-Group companies.
2 After taking account of dilutive instruments
3 Excluding Aerodom (consolidated on 1 April 2016)
4 After taking account of dilutive instruments.


29 July 2016Press conference: 08.30
Analysts meeting: 11.00
25 October 2016Quarterly information at 30 September 2016
 8 November 20162016 interim dividend ex-date
10 November 2016Payment of 2015 interim dividend
2 December 2016VINCI Energies Investor Day

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


APPENDIXES: see pdf version of press release


The first-half 2016 results slide presentation and half-year financial report at 30 June 2016 will also be available on that website before the press conference.


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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