Vinci Sa Act

Good morning everyone. I'd like to thank you for being part of this meeting to present the accounts for Vinci. It will be my first time commenting the financial results of the new Director General of the Group, which is a position that I have since the 1st of May. It's an honour and indeed a pleasure for me to be here today as You will have heard and as you will continue to read, as in previous financial years, our financial results are once again of excellent quality. I am here with Christian Labiri, our Deputy Director General and Financial Director, the other members of EXCOMM and our investor relations teams. We will make ourselves available to answer any questions you may have. first of all let's talk about australia in april cobra wrapped up the funding for the very first ppp for electrical distribution in australia it's a 35-year contract and it involves design financing building and maintenance of more than 240 kilometers of electrical lines eight substations and their collections to renewable energy production sites. Works have broken ground and will last for five years. Seeing as we have this picture on the board, I'd like to remind you that COBRA has already finished a number of PPPs of this type in Brazil. And especially, investments are required around the world in a way that will facilitate a transition towards green energy. The need is enormous and the recent blackouts and brownouts that we've seen in a number of European countries further demonstrate just how important and vital these investments are, and indeed urgent. These projects are a strong and sustainable driver for Vinci's business lines. Next up, we have some pictures illustrating our position as world leaders in infrastructure, first of all through concessions. On the left, this comes from Vinci Autoroute. This is the A57 motorway extension near Toulon that was opened in June. It's a large project. 300 million euros entirely financed by Vinci Autoroute. traffic conditions and travel times have improved spectacularly since the extension opening and it was quite a complex urban environment to work in that shows the new way we have of seeing motorways. The motorway was completely changed. We now have special public transport lanes that allow intermodal travel between rail and road. This is a shared technical success that could very easily be replicated elsewhere and was made possible through strong collaboration with all involved stakeholders. Also, our highly skilled project management teams at Vinci Autoroute and of course the concession contract model which is showing itself to be an effective partner-based funding model which serves local authorities and the state for these types of projects. On the right you can see a photo of Lisbon Airport. I'd like to remind you that it had 15 million passengers per annum in 2012. Following Vinci's investment in ANA, the Portuguese airport operator, we are at 35 million in 2024. This incredible growth that we contributed to led to a large investment project for the existing airport Humberto Delgado to improve UX and to improve operations and its carbon footprint Vinci Construction is in fact part of the consortium of builders involved in this 200 million euro project and this growth has also led the Portuguese government to decide to commit in line with the concession contract to pre-studies to open a new airport in Lisbon in Anchorchet. The Portuguese government has approved the MOU on the 17th of January. Consultation with stakeholders was done in 2025 and a summary was sent by the ANA to the government on the 17th of July. The next steps will follow in the coming months and years. These images serve to illustrate the know-how that we have at Vinci. We can change, we can transform, we can adapt mobility infrastructure to meet the strong structural mobility demand that we're seeing around the world. This serves to develop mobility that is less carbon intense, more fluid, more shared and more sustainable. All of this is made possible when we are able to use a stable regulatory framework that is balanced across parties. Now, a couple of pictures showing energy solutions. On the left, you can see the very first regasification LNG plant in Germany. This was given to a consortium piloted by Cobra. This terminal will enable Germany to import natural gas through oceans routes and this is great for German energy strategy and sovereignty. On the right you can see a German company called SAM Electronics mainly working for the German Navy in shipbuilding sites. This acquisition will enable Vinci to strengthen its exposure to the defense market in line with the acquisition of RH Marine in the Netherlands last year. This acquisition will enable us to strengthen our position also in the German market as a whole. You will have noted that Vinci Energy in July announced two further significant acquisitions in Germany in multi-technical building solutions. These two images illustrate our exposure to Germany, which is our second largest market outside of France, and also shows our exposure to green energy transitions, sovereignty military and energy sovereignty all around the world and especially in Europe. As for construction, you can see on the left an image from Vinci Construction in the UK. In March they were awarded a renewal for the road service maintenance contract in Hertfordshire in the north of London. The first contract dates back to 2012. It lasted 13 years. We are committed to maintaining 5,000 kilometres of roads up until 2039, maybe up to 2046, so a further 20 years. This involves maintenance, proximity services, so day-to-day services, maintenance. such as cleaning the hard shoulders that make sure that the roads don't flood when there's rain, which happens a lot in the UK but also in France with climate change. This is recurring business that lengthens the lifespan of this infrastructure. This is kind of, for us, what an industrial company might have for after sales and spare parts. We also are working in the west of Canada, between Calgary and the Rocky Mountains. Following severe flooding in 2013, and given the increasing frequency of flooding with climate change, the province of Alberta decided to build a first dike. This is Springbank that you can see on the slide. Vinci Construction's teams are currently delivering it after three years of work. This will protect Calgary from future flooding. This is an excellent illustration of the fact that adapting to climate change is going to generate a lot of business opportunities for construction and also for transformation of infrastructure around the world. So after that appetizer, let's get into the meat and potatoes and our financial results. There are some key highlights. for the first half. First of all, excellent performance across the board for Vinci. We've seen performance that is in line with previous financial reporting and excellent financial reporting despite a macroeconomic and geopolitical environment that can be described as volatile and uncertain. Some takeaways are growth in revenue driven by concessions and energy services. increase in EBITDA and operating profit across all of our business lines and that improvement is marketed in values and margins and that's what's important to us it's not growing in volume it's growing in a profitable way. Net profit was of course impacted by the significant uptick in the tax burden in France this year and but it's still quite a small contraction fcf is positive which is not necessarily a given in the first half of the year given the well-known seasonal nature of our business and especially of ftf our pipeline is also once again up driven by order intake in our flow businesses Following this very strong first half of the year, we can confirm our outlook for 2025. The Board of Directors has decided to maintain the prepayment of the dividend at 1.05 euros per share. Here you can see some of the main indicators of our financial performance. Christian will be coming back in more detail in a few minutes. But if there were a few takeaways... The first would be that, like for like from a tax perspective, we would be at 2.2 billion euros of net profit, a 10% increase. We confirm this every year, and this first half is going to show it again. Together, we are resilient. And we are resilient, and I firmly believe this. because we have a good business model that creates value in infrastructures through three major business lines, concessions, energy services, and construction. And we also have the right model. This is our multi-local model with a very decentralized organization that enables more than 4,200 companies each having strong local presence to adapt quickly to changes in the market and to seize opportunities as they arise. This slide is on our geographical footprint, and there are two things to mention here. First of all, Vinci is an international group present across more than 120 countries, but our five largest countries, France, UK, Germany, Spain and the US together account for 70% of our overall revenue this half. The second takeaway is that growth in revenue for the group was driven by our international companies, more than 5%. with revenue in France remaining stable. That means that the weight of international business in our overall mix is up again, 57% of the total this half, fully in line with our internationalization policy that was deployed consistently and has been for the last 20 years. Let's get into each business line now, starting with concessions. As you can see, revenue is up 8% in concessions, 6% like for like. This growth is being driven by strong traffic numbers in airports of our network and also on motorways in France and internationally. The EBITDA margin is 67.3%, up more than 10 bps versus the first half of 2024. And that means that our teams under Nicola Lutbaugh are doing remarkable work in monitoring and improving their operating expenses, acquiring what they need to acquire, and managing the increase in traffic volumes. Concessions accounted for 63% of EBITDA for the group this half. What I can tell you about Vinci Autoroute is that Vinci Autoroute's traffic was up 2% versus the first half of 2024. However, I would like to remind you that the base effect was in our favour with some farmers' protests that blocked traffic in the first part of last year. A bit done at Vinci Autoroute is up, whilst still being weighed down by about €120 million today. in motorway tax. This is a tax that we are continuing to fight in the courts and I want you to remain certain that we are continuing to make sure that our voice is heard on this matter. Provincial highways, so international motorways, integration of the Northwest Parkway in Denver and Colorado has now been rolled out. Much earlier than expected, it's a variable toll system with differentiated tolls depending on when you're traveling. And this half in Brazil, in March, as was expected and without particular issues, we took over the BR040 motorway, about 600 kilometers long, between Belo Horizonte and Brasilia. Turning to Vinci Airport, the dynamic is still very strong. Traffic at Vinci Airport has continued to grow in almost all of our 14 countries in our network, and it's even ramped up in the second quarter. This is due to an increase in traffic. capacity for low-cost air carriers, and also strong demand from clients. Overall, more than 159 million passengers in the first half were hosted in the 72 airports managed by Vinci Airport. That is a 6% uptick versus last year. Per country, we can underline double-digit growth in Japan, in Mexico, and in Budapest. And we've seen remarkable increases in traffic numbers in Portugal and Edinburgh in large part driven by long-haul flight. Edinburgh and Budapest are our more recent acquisitions and they show the high quality of our analysis and the kind of dynamics that we can create. Traffic numbers dynamics within Vinci airports can also be explained by the opening of new lines. We have a unique network around in the world 72 airports across 14 countries which means that we can implement a proactive policy with the airline carriers. We can give them ideas, suggest new lines and our airport portfolio can also leverage a ratio and scale effect which creates value. In this first half, we saw more than 190 new lines open across Vinci airports. Let me give you a couple to maybe inspire your upcoming holiday. Budapest, Vienna, Madeira, Edinburgh, Edinburgh, Boston, Belgrade, Shanghai, Porto, Montreal, or even Los Angeles to Monterey. in Mexico. Next up, Energy Solutions, and they are also doing very well and taking flight. We are at 13.7 billion euros in revenue, a 6% increase like for like, sorry, 4% like for like and 6% real value, with a ramp up in growth in the second quarter. This is being driven by our international growth, accounting for more than 70% of overall revenue for the business line. This growth is also parallel to increases in operating margins, 20 base points, up to 7.4%. We are clearly amongst the top performers in this regard worldwide, and I take my hat off to DaVinci Energy and the Cobra IS teams. Energy solutions are about a quarter of our operating profits. This half serves to confirm the proper positioning of energy solutions driven by the energy transition, the digital transition and also sovereignty and defence. To illustrate these numbers here you can see that the four Vinci Energy business lines accounting for an amazing range of skills are all up in revenue. Internationally, more than 60% of overall revenue for Vinci Energy, up 2.5% like for like and 6% real. This is remarkable, especially in Germany. Germany is the largest market for Vinci Energy outside of France. We also have our second largest platform with Switzerland, the US. and Morocco with the French growth being a little bit more modest at plus 1.8% like the like. For Cobra IS, flow business accounting for about 60% of overall revenue for Cobra IS is still on track, in large part for the major countries such as Spain, Portugal and Brazil. And for major projects accounting for 40% of the total, Strong increases in business are explained by a ramp up of Germany with building of offshore conversion platforms for the North Sea and the regasification terminal that I mentioned in the introduction. On top of that, for major projects, we have high voltage transmission lines in Brazil and the PPP in Australia.

In the construction business, Revenue experienced a slight decline. As you know, in our business, our guiding principle is selectivity. And this declining revenue is clear evidence that this selective approach is being actively applied. Despite the lower revenue, our teams have managed to improve profitability by 14 basis points from one half to the next half. And here's to excellent work by our teams. For venture construction, the decline in revenue reflects varying market conditions, depending on the country and on the business segment. First, revenue from major projects is down due to the phasing of project execution, such as the completion of the Springbank jobsite, which is not immediately offset by the arrival of new jobsites. Over and beyond major projects, in France, strong activity in roadworks and rail and hydraulic networks only partially offsets the decline in civil engineering and building construction. Outside France, in continental Europe, conditions vary by country, with stable performance in Germany and growth in the Czech Republic and Slovakia. Outside Europe, activity is increasing in Africa but is declining in other regions. And lastly, specialized civil engineering networks are once again showing growth in business. I'd like to use this slide to remind you that, as you can see in the top right-hand corner, the bulk of venture construction's revenue comes from small-scale projects. So repeat business, what we call our flow or recurring business. And the share of major projects in our business is deliberately limited. about 11% of revenue this semester. In the French property development sector, which is always a very challenging market, residential bookings by Vinci Immobilier are down this last year, mainly due to a sharp drop in individual investor demand, particularly with the end of the Penel tax incentive, while block sales are rising. And an important aspect, sales to owner-occupiers particularly first-time buyers, are picking up. Commercial real estate remains very low as investors continue to adopt a wait-and-see approach. It's important to spend a little bit of time on order intake. This semester, order intake reached a high level, nearly $32 billion. Some will point out that this represents a 2 billion decrease compared to H1 2024. And as mentioned in previous communications, this decline is mainly due to high comparison base, including two major orders totaling 2.5 billion euros booked by Cobra IS in early 2024 for offshore electricity conversion platforms in Germany. So what's my takeaway? Order intake in float business, which I'd like to remind you represents the vast majority of the group's revenue in energy solutions and construction. Now, that remains strong, and it is up 2%. Another takeaway, order intake this whole year remains well above revenue for the period. And this is true both for energy services and energy construction. And this means that the order book continues to grow. Let me use a simple metaphor. It's like a bathtub. The bathtub keeps filling up. So it's filling more slowly in the last year, and this is due to slower economic growth and easing inflation, but the bathtub is still filling. Now, I'd like to hand over to Christian. He will present the group's detailed financial results for the first half of the year. Christian, over to you. Let's start with revenue. Revenue. First-half revenue reached nearly 35 billion euros, representing an increase of just over 3%. This is a strong performance given the current macroeconomic and geopolitical climate and reflects the strength of our model, which is based on three complementary businesses and a geographic footprint that is now highly diversified. And as Pierre rightly said, this growth is driven by innovation. Revenue increases in concessions, so plus 8%, and energy solutions, plus 6%. This increase is particularly strong for Vinci Airports, up 11%. And this reflects, on the one hand, sustained organic growth of 8%. This is driven by very dynamic traffic across nearly all our airports in the network. And on the other hand, the consolidation of Edinburgh Airport since the second half of last year in energy solutions. Vinci Energy posted growth of over 5%, that should be noted, with an acceleration in Q2, and strong activity across many international markets. And this also benefited from the positive impact of acquisitions completed last year, particularly for now in Germany. and RH Marine in the Netherlands. Still within energy solutions, Cobra also delivered a solid performance with a revenue up 9% and an acceleration in growth in Q2. In construction, revenue posted a limited decline, minus 1%, and nearly 3% organically, thanks to the consolidation of our new UK-based FM Conway subsidiary in the London region. This company works in urban and road infrastructure, and it has been included in our accounts since last February. Performance across vintage construction divisions was mixed. There's growth in Central Europe and in road and rail works in France. We're seeing stability in solitaires retinés, so specialized businesses. There's a decline in the Americas and Oceania region, which is impacted by currency effects. and also lower revenue in major projects in France and abroad, and this is due to project phasing. Some projects are nearing completion while others are just starting, and one does not necessarily offset the other. In property development in France, Vinci Immobilier's residential activity, as Pierre rightly said, has been hampered by the end of the denial tax incentive last year, while office real estate remains affected by investor hesitation. Now, ScopeFX contributed approximately 800 million euros in revenue this semester, adding 2.5% additional growth on top of 1.2% organic growth. So, around 400 million euros of entry construction, including 300 million from FN Conroy, and the remainder comes from recent acquisitions in North America. Hub Foundation in Newport in the Boston area. So close to 300 million euros for VG Energy, so mostly from international operations and international acquisitions. I'd like to remind you that last year, VG Energy bought 34 companies, and now VG Energy has already acquired 16 more in the first half of 2025. Finally, nearly 200 million euros from VG concessions, corresponding to the Edinburgh airport strategy over the semester. It is also worth noting that exchange rate fluctuations have a negative impact on revenue, minus 0.5% this semester. The euro appreciated against most dollars, the U.S. dollar, Canadian dollar, Australian dollar, New Zealand dollar, and also several un-American currencies. Now, Vinci's growth rate. And revenue is virtuous. It goes hand-in-hand with improved operating performance across our three core businesses, what we call our ROPA, our Operating Profit from Ordinary Activities, or EBIT. And this is a 7% increase. The total operating margin rose by more than 48 basis points, reaching 11.9%. So a breakdown by business funds reveals the following trends. Concession, 2.8 billion, up 9%, with non-operating margin close to 50%. Energy services revenue 1 billion, up 8.5%, with an operating margin of 7.4%, an improvement of 20 basis points. Both Vinci Energy, so 7.2% operating margin versus 7% in Cobra, 7.9% versus 7.8%, improved their contribution and margin rates. Vinci Energy's margin improvement was driven by its international operations, mostly in Northern Europe and the Americas, although margin levels remain relatively consistent across divisions, and the same applies to Cobra. Vinci Construction, although revenue declined, margin continued to improve, so 2.2%. up to June 30th, up 10 basis points over last year. I'd like to remind you that the margin of June 30th is not representative of the full-year margin. Of course, we expect much better considering the seasonal aspect of our business, but it's positive to have a 10 basis points improvement over the whole year. Almost all divisions improved and maintained their operating margins compared to last year, which offsets the declining margins on major construction works. It's also worth noting that the ROPA or EBIT margin for VG construction in the first half is not representative of the four-year performance of the poll. So, despite the still challenging market environment, as previously mentioned, VG Immobilier returned to break even. Now, the rest of the income statements. We have an IFRS 2 expense reflecting the benefits granted to employees to facilitate their access to VG's share capital. Now, this expense has increased significantly. because this option has been valued and this benefit has risen due to the share price increase earlier in the year. Also, higher contributions from equity accounting companies are mostly the impact of airports in Japan, which have returned to high traffic levels over to 2019 levels, so pre-COVID levels, and also thanks to renewed travel with China and the positive impact of the Osaka World Expo. Also, Let's remember the consolidation of the Budapest Airport. So the contribution from the 20% stake in Budapest Airport. Last year, we made a provision for an earn-out payment to ACF. related to COBRA's renewable energy developments. It hasn't been true this year. This year, we recorded favorable adjustments from asset disposals, particularly for VINCI concessions. Regarding our financial income and expenses, our net financial expense increased by 73 million euros, reaching 627 million euros. This was mainly due to an unfavorable comparison effect from the inclusion of debt from Edinburgh Airport and also Northwest Parkway, the part of the Denver Ring Road that we're now fully consolidating. And those two acquisitions were made in H1 2024. We also noted increased financial leverage on certain assets, such as Aerodrome in the Dominican Republic. We need to fund the investment program. And also London Gatwick Airport, which we re-leveraged so as to optimize capital costs. In addition... The positive effect of lower interest rates on the euro, roughly a 100 basis point drop year on year, had a positive impact on the cost of debt to the holding company, because part of that debt was in variable rates, and this was also true for Vinci Utterberg. Unfortunately, and this makes sense, it was largely observed similar decline in returns on our cash investments. Other financial income and expenses include particularly a 42 million charge from the The decline in ADP's share price in H1, this is a purely accounting change. And also, the income tax charge has risen sharply. plus €354 million, of which €293 million is due to the Easter tax introduced by the government for 2025. So plus 41.2% above the standard rate, the decision has been made for 2025. In line with the AMF and CNC recommendation, This amount corresponds to roughly 70% of the full-year 2025 estimated tax charge. As you know, the calculation spans two years, 2024-2025 by definition. The 2024 expense is known. We have to absorb it entirely. So for June 30th, we are basically absorbing 75% of the total charge, which is about 400 million euros. I think that this makes Vinci, among all private companies in France, one of the top contributors to the national budget. Ultimately, despite this very significant tax surcharge, the decline in our net income remains limited. Our constant tax rates, because of our share of buybacks with the Peltroy U.S., we've been able to limit the impact. Like I said, our constant tax rates, our group net income would have amounted to 2.2 billion euros. Now, if you look at our debt situation... debt variation over the first half. Traditionally, we're in negative territory, excluding financial investments, which can vary from one year to the next. We have a negative. We usually have an increase in debt in the first half, and also a change in working capital requirement, and this is due to cash flow seasonality. Let's and every division has contributed. Like I said, the traditionally working capital requirement is negative, so 1.8, 1.9 billion this year. This is 1.3. Last year, if we compare this with the past four years, the 1.8, 1.9 billion this year is very comparable to the average in shifts observed for the past three years. And also, let's put things into perspective considering the size of the group. This is represents seven days of activities in concessions, seven days in concessions, 15 days of revenue in construction, and three days in energy services. So, nothing to write home about at this stage. Also, I'd like to remind you that there will be a reversal in the situation in the second half, particularly in the last few months of the year, when there will be a lot of inflows in many entities. Now, There's an increase in financial expenses and income tax paid, excluding the impact of the new tax recharge, which will be settled at year-end. In terms of investments, they amount to $2.3 to $2.4 billion over the whole year, including $1.2 billion in energy services, of which... New renewable energy projects account for about 450 million euros, and those developments are due to COBRA. In concessions, investments over the half-year came to just under 800 million, and in construction, slightly over 500 million. Taking all of these items into effect, free cash flow for the half-year is positive at about 50 million euros, slightly under 50 million euros. bearing in mind that almost all of Vinci's free cash flows typically generated in the second half of the year. On the acquisition front, I'm talking about the activities of the acquisitions finalized over the half year, in total $750 million, but there have been disposals of non-strategic assets amounting to around $200 million, mainly by Cobra IS and Vinci Concertions. So this leads to a net outlay of around $500 million, as you can see on the graph. Last year, the acquisition... We were particularly active in the acquisition fund. We invested 6 billion euros in particular. Now, to conclude this cash flow analysis, cash returned to venture shareholders as well as non-controlling interest, let's see, Gatwick, Port. Now, this amounted to rather 2.4 billion euros of 500 million compared to H1 2024, including net share buybacks. in the amount of 600 million euros. This is mostly payment of the 2024 final dividend, which was paid out in April. On this basis, we have pretty much the same amount as... We have capital increases under the Group's Inclusive Savings Plans, and this results in positive inflow of less than 0.3 billion. As I said before, the cash flow is generated almost entirely in the second half of the year, And so considering a very specific profile when it comes to cash flow generation and all of the important inflows at the end of the year, I would therefore refrain from making any forecasts regarding four-year free cash flow. One thing is certain, we will have to pay at least $400 million in additional taxes versus one year. To conclude this presentation of the financial data, when it comes to the groups we created, our available cash and cash equivalents have increased by $2.5 billion. As of June 30th, we had $11 billion raised in managed net cash, around 40% of which was centralized at the holding company level. And this was a low point because cash flow usually rises in the second half of the year. Our policy is usually to centralize subsidiary cash as much as possible, but it's not always possible. due to legal constraints, tax constraints, ownership constraints, when we don't hold 100% of the capital, as is the case for Edinburgh, Gatwick, or even Mexico. Having abundant liquidity may seem overly cautious to some, but we believe it's the recipe to maintaining independence in terms of how we execute a capital allocation strategy, and that's something Pierre will return to shortly. we need to be able to mobilize large amounts of capital quickly when we need to honor our repayment obligations to lenders, when we need to optimize borrowing conditions, as we did in the first half, achieving the best time for new issuances, particularly bond issuers, and also perceiving acquisition opportunities, which are aligned with the strategy, as we did with the COBRA IF acquisition. And also in order to navigate... financial crises over the past 20 years. There have been quite a few financial, health, and geopolitical crises. And also, we need to fulfill the commitments to shareholders in terms of return. S&P and Moody's continue to place a trust in us with solid radiance, A- and A3 respectively, which we will safeguard through prudent, clear, and consistent financial and capital allocation policies.

Thank you.