Vinci Sa Act

Good day, ladies and gentlemen. Welcome to the WANSI third quarter revenue 2026 conference call. I now hand you over to Thierry Mirville, CFO of WANSI. Sir, please go ahead.

Okay. Hello and thanks for attending this conference call. So I'm today with Gregoire Thibault and the IR team and Marie-Amélia Foltz, the group controller. I will be brief to have more time for the Q&A. So what are the key takeaways of this publication? A strong revenue increase in Q3 plus 5%, driven in particular by international and energy solutions. This is a positive trend after a stable Q1 and plus 4% in Q2, thus the nine-month revenue 56 billion euros plus 3% on an actual basis and plus 2% on a like-for-like basis. It should be noted that yesterday this increase was driven by a good momentum at Energy Solutions plus 7% and by revenue outside of France which rose by 7% including plus 4% like for like revenue outside France accounting for 60% of the total versus 58% in the nine months 25 and I will come back later in greater details for each business so the key takeaway number two the group's nine months order intake was robust almost 50 billion euro an increase of plus six percent It's worth mentioning that order intake in flow business, which accounts for the majority of revenue for the energy solutions and construction businesses, was up 7%. Order intake was well above revenue generated by this business line, 46 billion euros. It means that the order book continues to grow at a satisfactory renewal rate. At the end of September, the order book reached the high level of 75 billion euros plus 7% year-on-year. 14 months of average business activity enhancing visibility and serenity for the group while enabling it to continue to remain extremely selective and international business made up 71% of the order book. And the third key takeaway, the net financial date of Vinci at the end of September is well under control. It amounted to 20.2 billion euros, down 1.2 billion euros Vinci's liquidity remains substantial with a managed net cash of almost 15 billion euros at the end of September and 6.5 billion euros of RTF. As a result, with such a quality order book and some financial positions, Vinci is well prepared to continue its to the future with serenity. So let's now have a closer look at the main divisions. First, concessions. Nine months revenue of 9.6 billion euros up 2%. Its performance reflects the good diversification of our portfolio of airports and motorways worldwide and their resilience to headwinds. At Vinci airports, passenger numbers remain stable despite high prices for kerosene and geopolitical disruptions. The trends are contrasted. Many airports in the network continue to benefit from a solid growth, particularly in Portugal, Belgrade, Budapest, Edinburgh, the Dominican Republic, and Cabo Verde. Conversely, geopolitical disruptions continue to weigh on traffic at some airports, such as London Gatwick or in Asia. Stable traffic then, but revenue rose by 3% on an actual basis to 3.8 billion euros, despite negative scope effects in Cambodia. On a like-for-like basis, revenue grew by 5%. This performance demonstrates the ability of Vinci Airport to optimize both aviation and non-aviation activities, in particular by passing on inflation. At Vinci Autoroute, 9 months traffic levels were down 3%, of which light vehicle traffic, minus 4%, primarily due to surging fuel prices. Meanwhile, heavy vehicle traffic continues to show a positive trend, plus 1%. This good momentum for heavy vehicle traffic partially explains the relatively limited decline in revenue recorded by Vinci Autoroutes, minus 0.8% to 5.1 billion euros. Now, for energy solutions, 9 months showed that this business is firmly buoyed by a powerful megatrend. such as electrification, AI and data center development, digital infrastructure services, and defense and sovereignty investments. The nine-month highlights include a revenue growth of plus 7% to 22 billion euros, 70% of which was generated outside France and with a strong growth in Q3 plus 9%, The increase in order intake plus 9% and the order book which is plus 9% year on year and Vinci Energies active acquisition policy in fragmented markets. Within energy solutions, Vinci Energies printed once more a strong performance. Nine months revenue of 16 billion euros plus 7% actual and plus 4%. This performance reflects the dynamism of the business units in robust markets both in France and abroad. France was up 5% while international was up 9% of which plus 12% in Germany. Other indicators to point out, ordering stakes up 8%, so that means a new rolling 12-month record of nearly 24 billion euros, and an order book up 11% year-on-year. And furthermore, please note that Lynch Energy remains active on the M&A front, having completed 23 acquisitions in the first nine months. representing a cumulative annual revenue of around 220 million euros mainly in the Benelux, the UK, North America, Australia and New Zealand. In addition, keep in mind that Vinci Energies completed mid-October the acquisition of the German company All4one around 500 million euros of revenue per year. This acquisition of a specialist in the integration and maintenance of business applications will give Vinci Energy through its actions ground a stronger presence in the fast-growing digital infrastructure services market and it will allow it to seize the many opportunities created by the acceleration of digital transformation in Europe. Within energy solutions, let's now move to Cobra IS. The nine-month revenue of 5.8 billion euros means plus 8%, of which plus 10% in Q3, which is not bad. This growth was driven especially by the flow business, which remains very strong in Spain. and the other indicators, order intake year to date was up 11% and order book at the end of September was up 6%. Finally, in the construction business, the revenue reached a high level of 24.6 billion euros with a good momentum outside of France for both proximity networks and specialty networks and the successful integration of the public works company Fletcher Construction in New Zealand. For Vinci Construction, the nine-month revenue is slightly up on an actual basis and slightly down, like for life. In line with the trend observed in previous quarters, the key points were lower business levels for major projects representing less than 10% of the total due in particular to progress on the HS2 project in the UK. The decline in revenue in France as a consequence of the usual electoral cycles and sizing for some building projects and a favorable revenue trend for the other divisions, particularly Oceania, Central Europe and the United Kingdom. The order intake is up 3% and the order book up 5%. Last but not least, for Vinci Immobilier, the property development market is, as you know, still facing very challenging conditions. In the backdrop, Vinci Immobilier's revenue was down 14% and the number of reservations in France down 23%. In terms of M&A disposals and cash allocation policies, I already mentioned the development of Vinci Energy. I'd like to add that in September, Cobra IS sold its 50% stake in the company Pampa, which holds a PPP contract for high-voltage transmission line in Brazil. The transaction is a good illustration of Cobra IS' expertise in carrying out major T&D projects, notably under PPPs, such as currently in Brazil and Australia, and in optimizing the management of its asset portfolio. Since 2023, in Brazil, COBRA-IS has sold several stakes in PPP in this sector for proceeds of more than 300 million euros. Now it tells us share buybacks total amounted to 1.7 billion euros in the first nine months versus 1.4 billion euros in the first nine months of last year. And we will continue. Since Vinci implemented a new share buyback program with a maximum purchase amount of 217 million euros to be completed by Guérin. And note that Vinci is one of the most active players in the share buyback among the French corporates. In conclusion, given this excellent financial performance since the start of the year, Vinci confirmed in 2026 guidance further growth in its revenue operating on its net income attributable to owner of the parent and a free cash flow that could reach 6 billion euros. This guidance does not factor in the adverse impact of a possible increase in France's tax on long-distance transport infrastructure operators, mainly those operating motorways, which is currently being reviewed by the French Parliament. As an initial estimate, the potential P&L impact of such a measure on Vinci's operating arm is a net profit in 2026, would be an additional charge of around 450 million euros to be paid in 2027, so I insist, it means that it wouldn't have no cash impact in 2026. So, we would like to thank you for your attention and before taking your questions, I will emphasize that I will not make Any additional comments on the current discussion of the French Parliament regarding the national budget for 2027, as these discussions are at early stage and sometimes quite erratic, if I may say so. Now it's time for the Q&A.

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