Vinci Sa Act

Good afternoon. Thank you for standing by, and welcome to the Winchee 9-Month 2023 Revenue Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero. At this time, I would like to turn the conference over to Mr. Grigoire Thibault, Head of Investor Relations. Please go ahead, sir.

Thank you. Hello, everybody, for attending this conf call. I'm today with the investor relations team, Boris Vallée and Marie Echard. And as usual, we'll try to be brief to have more time for the Q&A. And because I know there are other conf calls this evening for some of you. So what are the key takeaways of this publication? First, a solid operating performance overall in Q3. strong business levels with Q3 revenue of 18.3 billion euros, up 9% year-on-year. This trend confirms the nihilism of Vinci's businesses, both in France and abroad. I will give you more granularity later in my presentation. In the first nine months of 2023, total revenue amounted to 50.6 billion euros, up 12% year-on-year and 10% like-for-like. International revenue made up a new record 57% of the group total. International revenue is up 18% and up 15% life-for-life. Changes in scope were boosted mostly by OMA in Mexico for energy imports and by the recent acquisition made by Vinci Energy, including Contron AG and Otera AS in Norway. Exchange rate movements had a slightly negative impact on revenue, because the euro rose against several currencies, of which the sterling and the dollars. Brent, 43% of the total revenue, was up 5% in nine months. Point number two. Groups ordering tech were well-oriented. 47.8 billion euros in the first nine months, plus 16% year-on-year, of which a robust plus 13% in Q3 23 versus Q3 22. This good momentum is due to strong flow business and several recent large contracts. In total, the order book of Vinci reached a new all-time high level of more than 63 billion euros at the end of September. This is plus 10% year-on-year, representing 14 months of average activity. International made up 68% of the order book. Such a large order boom gives good visibility, serenity, and enables Vinci to remain selective in terms of new business. Point number three, regarding the financial position, the net financial debt of Vinci at the end of September is under control. It amounted to 18.6 billion euros, down 1.5 billion euros year on year, and almost stable relative to the levels seen at the end of 2022, despite the acquisition completed during the period and despite the payments of the final dividend 2022. It means, in other words, that the cash generation was robust in Q3 and year-to-date. Vinci's liquidity remains substantial, with a managed net cash of €10.6 billion and €8 billion of RCF, As a result, with such a sound financial position, Vinci is well prepared to continue its developments. Last but not least, in view of its solid performance year-to-date, the group revised upwards its free cash flow guidance for 2023. The free cash flow is now expected to be of at least 4.5 billion euros. Let's now have a quick and closer look at the main division. Vinci Autoroute's nine-month revenue up 5% to 4.9 billion euros. In September 23 versus September 22, traffic was up 2.2%, including a 3% increase for light vehicles, fueled by exceptional summer-like weather conditions in France in September. As a result, Q3 23 traffic reached a high level, stable versus Q3 22. Overall, in the first nine months, traffic is up 1.3%, of which cars plus 1.7% despite high fuel prices. Truck traffic was slightly down, partly because of negative calendar effects with two fewer working days year-to-date compared to last year. Vinci Airport, nine-month revenue of 3 billion euros plus 49% on an actual basis, and plus 27% life-for-life. You have already seen the traffic figures published two weeks ago. They confirm the continued strong recovery in air traffic in Q3. Many airports achieve record passenger numbers in Portugal, Serbia, Mexico, and the Dominican Republic. In Japan, fax numbers continue to show a fear of recovery on international routes. Overall, passengers' numbers in 9 months, 23, equal 93% of the levels seen in 9 months, 19, before the sanitary crisis, of which 97% in Q3 and 99% in September. Vinci Energy, 9 months revenue of €13.9 billion, more than what was generated on the full year 2019. That remaining nine months' revenue was up 17% and 12% like for life. As a wrap-up for you to take away, after a very robust H1, Vinci Energy continued to deliver strong revenue growth in Q3, plus 15% versus Q3 22. International growth even accelerated relative to the Q2, both on an actual basis and like for life. Order intake of Vinci Energy also remained very strong, hitting a new record on a rolling 12-month basis of more than €20 billion. In the first nine months, order intake of Vinci Energy were up 19%, of which plus 17% in Q3. Vinci Energy order book amounted to €14.7 billion, plus 16% share on-year, representing more than nine months of average activity. This outstanding overall performance reflects the very solid position of Vinci Energy's companies, perfectly fitted to the energy and digital transition megatrends, both in France and abroad. Finally, please note that Vinci Energy remained active on the M&A front, having completed 25 acquisitions in the first nine months of 2013. representing a cumulative annual revenue of around €350 million. Cobra IS. Nine-month revenue of €4.7 billion, up 14%, with 46% coming from Spain and 32% from Latin America. In Spain, revenue was up 16%. Outside Spain, revenue was up 13%. As a wrap-up, please note that Cobra 8 increased its revenue sharply in the Q3 with growth of 13%, beating its Q2 growth figure of 9%. This momentum is being driven by its strong performance in most of its geographies, both in slow business and in EPC projects. Order intake for Cobra 8 in nine months rose 31% here on air, running at record levels due in particular to large contracts related to energy transition. In particular, the first of the three offshore wind energy converter platforms, or TENEX, the contract which had been announced in April 2023. So the first platform is now in the order book. Order book amounted to 14.9 billion euros, plus 33% year-on-year, representing a record two years and a half of average activity. About renewable energy production, in addition to the 0.6 GW Belmonte solar farm in Brazil, which started generating electricity in late July this year, works began in Q3 on new solar projects in Brazil and Spain with total capacity of 0.6 and 0.2 GW respectively. Thus, at the end of September, The capacity in operation or under construction in Cobra IS portfolio totaled 1.4 gigawatts. Finally, remember that we will organize a CMT dedicated to Cobra IS next 12th December in Madrid. Welcome. Vinci Construction, nine months revenue of 23.4 billion euros, up 9% and 10% life on life. In a nutshell, Vinci Construction business levels were robust, driven by civil engineering and public works activities. Growth remains very strong in the Q3 outside France, with international revenue up 12% like for life, compared to Q3 22. While in France, the revenue stabilized at a high level. Vinci Construction also achieved a high level of new orders, plus 10% in nine months 23. due to good performance in slow business across its main geographical strongholds, along with several recent large contracts, such as the section of Line 15 West of the Grand Paris Express alongside Vinci Energy. Vinci Construction Order Book emptied the cross of stables year on year at a high level of almost €34 billion, representing 13 months of average activity. Vinci Immobilier, probably the only snag of Vinci, even if figures are small for the Vinci Group. Vinci Immobilier nine-month revenue amounted to 836 million euros, down 24%. As already mentioned previously, the significant decline in Vinci Immobilier revenue and number of housing units in France, minus 46% in nine months, are the result of very difficult conditions in the French property development sector, which is suffering in particular from high interest rates. In conclusion, the group confirmed that for 2023, it expects a further increase, assumed more limited than in 2022, in revenue and operating income. It expects, as well, a net income slightly higher than the level achieved in 2022. despite a substantial increase in financial costs. The outlook for the free cash flow, as I told you in introduction, has been revised upwards. It should now be of at least 4.5 billion euros in 2023. In addition, forecasts for concession traffic have been updated. Vinci Autoroutes now expects traffic levels in 2023 to be slightly higher than in 2022. Vinci Airports, is forecasting a further recovery in passengers' numbers, which should be close in the Q4-23 to the level seen in the Q4-19. We would like to thank you for your attention, and we are now ready to take your questions.

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove your staff from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Jean-Christophe Lefebvre-Moulin with CIC. Please go ahead. Hello.