Vinci Sa Act

Thanks for joining us for the full year results of 2024. I'm with Christian Labéry, probably the last time. That's for me. You have all the ex-co and the heads of... Divisions and Pierre Angelras, also José María Castillo, who's there at the back of the room and will be available to answer your questions. So, first of all, a few images. An image of the Vinci Auto Route's charging stations that are all equipped with... 2,100 charging stations, 90% ultra-fast, not just in rest areas, service areas. 21 are equipped. So I think we can say that we're the best equipped global network in charging stations. Just to encourage you to buy a new vehicle, especially once you've bought the vehicle, you take the Ulysse electric option, which allows you not only to identify all the charging stations on the highway network and also off the highway, making... Its power and availability allows you to pay with your badge, and that is a tremendous ease of use. Next, Lisbon Airport. You'll recall that when we arrived... In 2013, Lisbon had 15 million passengers and now handles 35 million last year, led the Portuguese government to ask us first and foremost to look at the setting up of a new airport at Alcocete. You'll recall a former military firing range and to launch a major modernization program of the existing airport not to improve quality of service. Next photograph illustrates our highway strategy in Brazil. Two or three years ago, we acquired Entrevias, which had the concession for 570 kms of highway in Brazil. The works for this first concession are ending, and We have positioned ourselves on new tenders and we successfully won the 30-year concession of the BR040 highway on the Belo Horizonte-Brazilia route for some 600 kilometers. What does that mean? It means that the highway... Toll concessions with traffic risk in Brazil are greater than coffee route in France and that of Escota. It's beginning to grow. Next, Vinci Energy is an ICT component, which acquired a few months back, for now, one of the leaders, if not the leader in cloud and cyber security services in Germany and Switzerland. And I'll tell you more about Axios and Vinci Energy. Since the acquisition, that's about 4.5 billion in revenue, which is quite significant. Here, a image of an open cycle gas power plant, one by Cobra for the Irish electricity board, 300 megawatt. This type of equipment is vital in some geographies, so as to ensure stability and resilience of the electricity system with the growing injection of internal intermittent renewable sources. This is necessary to ensure stability and of course it's good news for Cobra because Cobra has genuine expertise in gas turbine combined cycle or open cycle plants. It's built more than 10 gigawatts of such projects across the world. Lastly, Vinci Construction that confirms its fine breakthrough in Australia. This is a great contract to modernise and extend a wastewater treatment plant in Canberra. And lastly, if you have some savings, you know where to go. to invest them. Pierre Angelras, Virginie Leroy and Prince Albert, with our partner Marzocco, inaugurated an impressive and highly technical prestige property complex in Monaco. There are five villas on the rooftops. Virginie can tell you the discount she will offer you if you're interested in acquiring one of those properties. We're looking at hundreds of millions, but it's really not very much. 24 performance, we can say that was excellent quality. Revenue and earnings are up, reaching record levels, and this, despite the impact of the new tax on French motorways, shows that we fought hard. long and hard in France and outside of France, that in spite of the tax, we're able to grow our net income. What's also important, we continue to expand internationally, which now accounts 58% of our business and over half our net earnings. Fully in line with our roadmap doesn't mean that we're neglecting France. We continue to grow faster internationally than in France, and The year was rich in new developments, particularly in concessions. Big cherry on the cake is, of course, free cash flow generation coming in at an exceptional level. And the order book, which was already very strong at the end of 23, continued to grow significantly with 70% of orders coming from outside France. All this to say that Once again, we're extremely resilient for two main reasons. We have the right model for creating value in our three core businesses, concessions, energy and construction. And equally important, we have the organizational management model fit for purpose, making us highly committed, agile and responsible businesses. Diving deeper into the business lines, Vinci Auto Routes, traffic was disrupted the beginning of the year, demonstrations by farmers and livestock breeders. It recovered in Q4, 2% growth versus Q4 in 2023, enabling us... to return to exactly the same level as in 2023. Thanks in particular, and it hasn't been said thus far, owing to a strong growth in foreign traffic crossing France, either heading on holiday or for light or heavy vehicles since the pre-COVID period started. Foreign traffic has grown by 40%. That's quite extraordinary, offsetting a slight weakness for French traffic. Vinci Auto routes revenue up 4.1%. EBITDA, EBIT and net income are down because of the 284 million tax. We continue to challenge, but we have to pay in the meantime. And I'd stress once again the fact that roads are our country's vital network. It's the case for most countries. Nine out of ten trips... by road in France will not be able to meet its commitments in terms of decarbonizing road transport if it doesn't make efforts to achieve net zero on its roads and highways so as to accommodate electric mobility including trucks, adapt the infrastructure and better car sharing, public transport on highways and intermodality between the various modes of transport and of course all this we've begun but the efforts that need to be undertaken are out of all proportion in terms of scale and capex compared to what we've already done and it'll all be a Thank you very much. miss the net zero target by 2050, but it can't be done within the current contractual framework. Moving to Vinci Airport, excellent year in the airport sector, particularly Q4. We confirmed that the world's leading private airport operator, 318 million passengers in 2024, up 8.5% over the previous year. Good traffic levels across all geographies, particularly for those of you who had a doubt on the two latest acquisitions, Budapest and Edinburgh, acceleration in Asia with the marked resumption of traffic with China. And, of course, it impacts our Japanese airports. Ebitda Vinci Airport reaches an all-time high close to 3.3%. Free cash flows crossed this symbolic 1 billion mark despite significant CapEx expenditure after the freeze brought about by COVID. We're well on the way to becoming a net zero emissions airport. Vinci Airports, with its good results since 2020, has decided to revise upwards its ambition for aiming for a two-thirds reduction in CO2 emissions by 2030 as compared with 2018, before it was 50%. Our highway development through Vinci Highways is confirmed internationally with the acquisition of a section of the Denver Beltway. It's a concession project. of a residual life. I'd be 152 when it expires. We plan to extend the average lifetime of the portfolio so that I can reach the grand old age of 200 when it reaches maturity. That's 80 years. and that's fully consistent with part of our strategy, which is constantly to seek to increase the average residual duration of our long-term portfolio, be it highways or airports concessions. Lastly, a point I've already mentioned. In Brazil, Vinci Airports paved the way. Other group entities are following suit. Vinci Airways... taking over a cluster of airports around Salvador and around Manaus in the Amazon. So we're comfortable with Brazil. In the meantime, Cobra arrived with excellent knowledge of Brazil. Cobra's done a lot over the past 20 years in terms of PPP, high-voltage power lines, renewable power. So it made us comfortable and at ease to begin highway development in Brazil. Lastly, to end on Vinci Highways, Nicolas Nodbar and Pierre Angelras inaugurated with the local authorities the first highway PPP in the Czech Republic. Four years' work was inaugurated a few weeks ago. We always felt that the Czech Republic would modernize its infrastructure, thank in part to European money, but that wouldn't last. And after that, quite naturally, the Czech government would discover the model will allow them to continue to modernize their transport infrastructure. which economic growth accelerators is to use the PPP model, blended financing between public and private finance. So that was very important. Next, Vinci Energy. If you combine Vinci Energy and Cobra, that's $27 billion, not far from what we achieved with Vinci Construction. We're a global player. probably the biggest. We're a full suite player on businesses that are fully driven by the mega trends of energy transition and digital transformation. Through, first of all, Vinci Energy, which in 2024 turned in an excellent performance with business exceeding the symbolic threshold of 20 billion euros growing faster internationally, which now counts 59% of total Vinci Energy business. Vinci Energy also delivered record free cash flow in excess of 1.6 billion. Further increase in the EBIT margin, up 20 basis points to 7.2%. Order intake up 6%. and a fine year of M&A with 34 acquisitions, various in size, some bigger, like Fernauer that I mentioned, representing €740 million full year that we find in 2025. And... ICT that I mentioned earlier today, as I indicated, in information communication technology, $4 billion revenue within the $20 billion of energy businesses that have the wind in their sails. Cobra is riding the same favorable wave benefiting from the surge in EPC engineering procurement construction projects particular high-voltage power lines, a lot in Brazil, but also Australia. And Cobra benefits from the fact that Spain held up very well in 2024. Spain is far more dynamic than other European countries. In Spain, at Cobra, we achieved plus 13% of our business with A large number of networks. Cobra is pretty much the equivalent of Vinci Energy in France. It's the biggest in energy services in Spain. And, of course, benefits from great... momentum in Spain currently the EBIT margin at Cobra up once again to 7.8% up 30 basis points that's great order intake very good topping the 10 billion mark giving us excellent visibility just to end on Cobra on a road map for the development of renewable energy fields. 3.5 gigawatts in operation are under construction by the end of 2024. 248 megawatts in the U.S. Texas should come on stream during the course of 25 and 26 and a set of projects under development confirming our capacity to accumulate every year 1.5 gigawatts of new fields. These are peak gigawatts for the purists. You have the slides giving you the details. The new Vinci construction continues to deliver on its promises. business slightly up 32 billion 56 percent from outside France outside France there are places where we're suffering a bit such as Africa because of the destabilization of a number of African countries also another development that affects a number of geographies including France it's the phasing of major projects for example in France where only just beginning line 15. That's a line that we won just over a year, a year and a half ago on design and build, whereas we ended the major sections of the Grand Paris Express. So we're in a dip in terms of revenue generation, which will, of course, change as the project evolves. completes on the ground. And that, of course, explains that there are a number of divisions at Vinci construction that are slightly weaker in terms of growth than others. and that's due to the phasing of major projects. But road, hydraulic, engineering, and rail business is faring particularly well in France, notably. Vinci Construction continues to implement its step-by-step growth strategy of the operating margin, reaching 4.1% several volt on acquisitions per In North America, order intake up 10% thanks in large part to the award of an interesting contract of Vinci Construction Major Project with our U.S. partner, Walsh, for a design and built contract in Chicago. transit contract. We finalised the acquisition of FM Conway in the UK road and engineering sector with sales of 700 million annually. That was finalised and settled at the end of January. Vinci Construction, the keyword is selectivity We're not at all aiming for volume or market share. We want to continue to develop operational excellence and performance, and there's no doubt that the quality and volume of our order books gives us the peace of mind we need to continue to be extremely selective. Finally, Vinci Real Estate. is still going through a very serious crisis. A few rays of hope. Bookings improved in 2024 over 23, driven by block sales to social landlord, but overall the country is well below the housing stock that we need collectively and which was being implemented before the The crisis glimmer of hope is that this government and the last government are now, I believe, fully aware of the social gravity of this situation. And the Minister for Housing, who's a first-rate professional who knows the construction, Valérie Letard. Final point, the adjustment efforts at Vinci Real Estate. Over the past two, three years are beginning to bear fruit. Recurring operating income has turned slightly positive in 2024. Over to Christian Labéry and I'll come back later for the 2025 guidance.

Thank you very much, Xavier. Now, there are lots of numbers for me to share. I won't comment on all of them. Now, as it comes to revenue, basically in line with what Xavier just shared, overall growth 4%, about 3% organic. That is differentiated depending on business line. Concessions and energy are up about 5% on an organic base. Construction 1%. And Vinci Real Estate actually went down 7%, but the situation is looking up a little bit at the end of the year with 4% on revenue up at the final quarter. Scope variations account for about 1% of growth. Major transactions are Edinburgh that Vinci Airport purchased a more than 50% stake in. That's four-year revenue, a little bit more than 200 million. In the second half, Edinburgh was consolidated from the 1st of July onwards. Acquisitions for Vinci Energies in 2023 for full year in 2024, which is a part year consolidation, account for an extra 300 million euros in revenue roughly. And Vinci Construction, 100 or so million euros. in large part due to transactions in Canada and in America. On the next slide, you can see a comparison between France and our international business. You can see that we're at plus 6% internationally with plus 2% in France. This goes to explain why the share of international revenue is pushing towards 58%. It's going up every year, fully in line with the strategy that we implemented a couple of decades ago. Forex didn't have much of an impact this year with the depreciation. Sorry, the sterling going up was offset by the euro versus other currencies. It is important to note that the major countries for Vinci beyond France, which accounts for 30 billion, are the UK, the second largest, 6.7 billion euros. That is likely to increase in 2025 with F.M. Conway. Germany accounts for 5.6 billion. Once again, that's likely to increase in the future with for now, for the full year in 2025, Spain for 3.8 billion, the United States 3.3 billion, and if you add Canada, which is not yet the 51st state of the US, 5.5 billion. On the next slide, you can see EBIT's operating income for ordinary activities, $9 billion, up about 8%, so better than for revenue. And that is despite the new long-distance motorway tax. If you offset for that, the growth would have actually been higher than 10%. Vinci Autoroute does have a drop in contribution, but only a couple of hundred million, so to speak, so less than the impact of the tax itself, which means that Vinci Autoroute has been able to offset some of that tax with other optimizations. Vinci Airport is significantly up in terms of contribution, more than $440 million. That is a margin of more than 50% of revenue, so it's now higher than Vinci Autoroute when it comes to percentage of revenue. This is due to higher traffic volumes, of course, an increase in revenue per passenger, tight control of operating costs, and the impact of the integration of Edinburgh. Energy and construction divisions, as Xavier said... improved their contribution with margins that are up for both 7.2%. Cobra is at 7.8% which construction is up 4.1%. Vinci Real Estate is down 57 million. This is entirely due to non-recurring charges such as restructuring costs and depreciation of stock in large part for non-residential holdings. If you compensate for that, we're actually slightly back in the black around 2%. On the next slide, you can see other components of the income statement. Some main takeaways from this. The increase in revenue from airports such as Kansai. So this is net income attributable to owners of the parent. About 80 million from Kansai. Also an increase of the contribution of Demi. It's a Belgian company that's become one of the world leaders in the installation of offshore wind farms. Also an important item on the income statement is the increase in financial costs. I believe I already touched on this. About 300 million extra in financial costs. More than half of that is due to a product that we booked in 2023 when we restructured the acquisition debt related to Gatwick. and the rest is related to acquisitions undertaken in 2024, including the consolidation of the financial debt related to the newly acquired companies. The tax comes in at more than €2 billion, a 29% effective rate. I'd like to remind you that we cannot write off the motorway tax. It should have been nearer 27%, 28%. Out of that 2 billion, France accounts for about half. Minority stakes are what we pay out to our partners such as to Gatwick GIP and Edinburgh. Overall, 4.4 billion, up 3%. excluding the motorway tax, it would have been higher than 5 billion, which would have been a more than 10% increase versus 2023. Another very important thing to note is that for the very first time, profit from outside of France is higher than 50%. In fact, it's now 53%. On the next slide, we have changes in debt. It's up about 4 billion euros across the year. Free cash flow, as Xavier discussed, is at a historic high, 6.8 billion in FCF, in large part explained by EBITDA being up 12.7, a 700 million increase despite those 200 and so million of extra taxes on French motorways. It's also important to note the way it's spread across our business lines. About 60% of the total is generated by our concessions business. Within that, we have motorways accounting for 60%, so 60% of 60%, about 35%. Vinci airports and other concessions, around 40%. Furthermore, Vinci Energy and Cobra IS account for 20% of EBITDA and construction and holdings, Vinci Real Estate, about 20%. So basically, I'd like you to take away from this a good spread across our business lines, which is not something that just randomly happened. This is due to a consistent strategy that's been applied for years now. Also important to note, the share of EBITDA generated outside of France, which is about 50% of the total. Another factor explaining our good cash flow is change in WCR and current provisions, which had a positive impact on the financial year, 2.3 billion there. This is something that we have seen in the past once during COVID in 2020. But I would like to remind you that interest rates were negative at the time. So it was a little bit harder to get clients to pay up on their invoices because they just wanted to get rid of the money as quickly as they could at the time. That money isn't burning a hole in their pockets quite so much these days. But despite that, we were able to achieve this excellent FCF performance with WCR and provisions which account for 2.3 billion. It's now been five years that Vinci has been able to improve its WCR and provisions year on year. As a reminder, since 2020, we've been able to generate about 9 billion in cash due to that. Some of you, especially analysts, feared maybe a backlash period after COVID, especially a spike in interest rates. It has to be said at this point that that has not happened. However, let's remain modest. Given the size of the group, given the variety of our businesses, the diversity in our geographical locations, and the diversity in the types of projects that we undertake, including the contractual forms and the types of projects, so the way regulations can apply. Sometimes we get paid throughout the contract before or after. It's very difficult to establish reliable WCR forecasts more than a few months out, if not a few weeks out, in fact. In December, we generated more than 35% of our FCF for the entire year. So that's what I can share on that item. Beyond that, EBITDA and WCR, an important takeaway is the increase in capex. About 5 billion euros, 4.9 billion euros exactly. That's a 1.1 billion euros increase in 2023 versus 2024. After that 1 billion increase, Cobra accounts for most of it. They doubled their capex, 800 million to 1.6 billion, in large part due to renewables. And EHV lines.

Vinci Airport also increased its capex by about 150 million.