2023 Habjahresabschluss

28. 07. 2023 - 07:30 - Finanzen - Frankreich

- Growth in revenue and operating income in all three businesses: Concessions, Energy and Construction
- Positive free cash flow
- Strong order intake and record order book
- 2023 guidance maintained
- 2023 interim dividend: €1.05 per share

 

Xavier Huillard, VINCI’s Chairman and CEO, made the following comments:

Confirming the positive trend seen in 2022, VINCI’s overall performance in the first half of 2023 was of very high quality: in addition to further growth in revenue and earnings, it generated positive free cash flow despite the adverse impact of seasonal variations in its businesses at the start of the year.

In Concessions, VINCI Autoroutes traffic levels continued to rise due to firm momentum in light vehicle traffic, while heavy vehicle traffic fell slightly. At VINCI Airports, passenger numbers continued to rebound, and moved back to pre-pandemic levels outside of Asia. With the integration of OMA in Mexico and by keeping costs under control, it recorded a sharp rise in operating earnings.

VINCI Construction, whose new organisation has now been in place for two years, achieved firm business levels both in France and internationally, and improved its operating margin by being even more selective when taking on new projects.

The Energy business, which is being driven by powerful megatrends related to the energy transition, saw business levels rise sharply, with margins up for both VINCI Energies and Cobra IS.

Order intake was strong in the first half, taking the order book to a record level.

As regards external growth, the main transactions completed since the start of the year have concerned VINCI Energies – with a number of acquisitions in Europe and North America – and VINCI Highways, which bought a stake in a motorway concession in the state of São Paulo in Brazil and took control of the concession operator for the Bogotá–Girardot motorway in Colombia.

This very good start to the year once again demonstrated the strength of the Group’s business model, which combines complementary businesses and cycles, along with the remarkable ability of its companies to build local roots and develop their businesses.

VINCI’s Board of Directors, chaired by Xavier Huillard, met on 27 July 2023 to approve the consolidated financial statements for the six months ended 30 June 2023.

The Board approved the payment of a 2023 interim dividend of €1.05 per share, to be paid on 16 November 2023.

The Board also approved the Group’s tax transparency report, which is now available on its website.

 

I. Revenue and earnings growth – Outstanding free cash flow

VINCI’s financial statements for the first half of 2023 show a sharp increase in revenue and earnings compared with the first half of 2022, along with positive free cash flow.

Consolidated revenue in the first half of 2023 rose by more than 13% to €32.4 billion (organic growth of 11.6%, a 2.6% positive impact from changes in the consolidation scope and a 0.6% negative impact from exchange rate movements). This trend confirms the good momentum in the Group’s businesses, both in France and abroad.
- In France (44% of the total), revenue was €14.4 billion, up 7% on both an actual and like-for-like basis.
- Outside France (56% of the total), revenue came to €18.0 billion, up 20% on an actual basis and up 16% on a like-for-like basis. Changes in scope mainly concern the integration of OMA – a concession company that operates 13 airports in Mexico, including Monterrey airport – in which VINCI Airports acquired a 29.99% stake in December 2022, along with recent acquisitions made by VINCI Energies, including Kontron AG’s (acquired in late 2022) and Otera AS in Norway (acquired in early 2023). Exchange rate movements had a slightly negative impact on revenue because the euro rose against several currencies including sterling.

Concessions revenue totalled €5.0 billion, up 20% on an actual basis and up 13% on a like-for-like basis compared with the first half of 2022, and broke down as follows:
- VINCI Autoroutes: €3.0 billion (up 6%).
- VINCI Airports: €1.8 billion (up 58% actual and up 32% like-for-like). Compared with the first half of 2019 – the pre-pandemic reference year – revenue was up 8% at constant scope.
- VINCI Highways⁵ : €0.2 billion (up 10%).

VINCI Energies generated revenue of €9.1 billion, up 18% on an actual basis and up 13% on a like-for-like basis compared with the first half of 2022. The business line’s strong momentum reflects the excellent positions of its companies in buoyant markets – relating to the energy and digital transitions – both in France and internationally, along with their broad array of skills and their effective combination of global reach and local presence. All four of VINCI Energies’ business sectors (infrastructure, industry, building solutions and ICT⁶ achieved double-digit growth. In addition, recent acquisitions⁷ boosted revenue by around €380 million in the first half.
- In France (44% of the total), revenue was €4.0 billion, up 13% on both an actual and like-for-like basis.
- Outside France (56% of the total), revenue was €5.1 billion, up 21% on an actual basis and up 13% on a like-for-like basis. Business growth remained very strong in most regions and countries in which VINCI Energies has operations, particularly in Germany, Benelux, North America, Morocco, Singapore and New Zealand.

Revenue at Cobra IS totalled €3.1 billion, up 15% on an actual basis and up 14% on a like-for-like basis relative to the first half of 2022. It was driven by the ramp-up of large EPC (Engineering, Procurement and Construction) projects, mostly related to the energy transition. Moreover, flow business remained firm, both in Europe and Latin America.
- In Spain (47% of the total), revenue rose by 17% to €1.4 billion.
- Outside Spain (53% of the total, of which 32% in Latin America), revenue totalled €1.6 billion, up 13% on an actual basis and up 12% on a like-for-like basis.

VINCI Construction’s revenue totalled €14.9 billion, up 11% on an actual basis and up 12% on a like-for-like basis compared with the first half of 2022.
- In France (46% of the total), revenue was €6.8 billion (up 7%). Business levels remained steady in civil engineering. In the building segment, business was driven by rehabilitation projects and by the construction of public buildings, particularly in the hospital sector.
- Outside France (54% of the total), revenue amounted to €8.1 billion, up 15% on an actual basis and up 16% on a like-for-like basis. This reflects progress with several large civil engineering contracts in Europe, North America and Australia/New Zealand, along with solid business levels in speciality networks and proximity networks.

Lastly, VINCI Immobilier suffered from challenging conditions in the real estate sector in France against a backdrop of high interest rates, and its revenue fell sharply by 23% to €0.6 billion in the first-half period.

Ebitda amounted to €5.3 billion (16.4% of revenue), significantly higher than the first-half 2022 figure of €4.5 billion (15.9% of revenue).

Operating income from ordinary activities (Ebit) grew strongly to €3.5 billion from €2.8 billion in the first half of 2022. It included:
· €2.4 billion from the Concessions business, with VINCI Autoroutes accounting for €1.6 billion of the total. At VINCI Airports, Ebit was €0.8 billion (€0.4 billion in the first half of 2022). This strong improvement was driven by the rebound in passenger numbers, control of costs and the integration of OMA.
· €0.9 billion from the Energy business (VINCI Energies: €0.6 billion, equal to 6.8% of revenue; Cobra IS: €0.2 billion, equal to 7.5% of revenue).
· €0.3 billion for VINCI Construction, equal to 2.0% of revenue⁸ .

Consolidated net income attributable to owners of the parent set a new record of €2.1 billion and earnings per share⁹ amounted to €3.65 (€1.9 billion and €3.26 respectively in the first half of 2022).

Free cash flow¹⁰ was positive at €261 million, compared with an outflow of €281 million in the first half of 2022. This excellent performance was due to growth in Ebitda and the Group’s grip on working capital requirement, which allowed it to offset the sharp rise in investments.

Consolidated net financial debt was €20.9 billion at 30 June 2023, representing a decrease of €1.2 billion relative to 30 June 2022.

 

II. Solid operational performance

Traffic levels at VINCI Autoroutes remained well oriented, growing 2.7% year on year in the second quarter of 2023. Overall, traffic levels were up 2.2% in the first half of 2023 relative to the first half of 2022.

Within this figure, light vehicle traffic was up almost 3%, while heavy vehicle traffic was down 1% in the first half of 2023. Different calendar effects The impact was positive for light vehicle traffic, as a result of additional long weekends, and negative for heavy vehicle traffic because there was one fewer business day in the first half of 2023 than in the year-earlier period. impacted the underlying trend, which remains broadly favourable.

The upturn in VINCI Airports passenger numbers continued in 2023, underpinned by strong demand, an increase in supply in terms of seats offered by airlines, and the opening of new routes. Several airports operated by VINCI Airports – those in Portugal, Mexico and the Dominican Republic as well as Belgrade airport in Serbia – even achieved record passenger numbers, beating their 2019 levels.

Overall, the network’s airports handled 123 million passengers in the first half of 2023¹² , 36% higher than in the first half of 2022 and more than 90% of the first-half 2019 figure, despite the slower recovery in Asia.

Order intake in the Energy and Construction businesses totalled €31.2 billion in the first half of 2023, an 18% year-on-year increase. Order intake at VINCI Energies (€11.1 billion in the first half of 2023, up 21% compared with the first half of 2022) hit a new record on a rolling 12-month basis. Order intake at Cobra IS was €5.3 billion (up 64%), driven by large contracts linked to renewable energy production projects.¹³ At VINCI Construction, order intake also rose (up 6% to €14.9 billion), buoyed by solid flow business.

Overall, the order book reached a record high of €61.5 billion at 30 June 2023, an increase of 9% from the level a year earlier. It represents more than 13 months of average business activity. International business made up 69% of the order book, as opposed to 68% at 30 June 2022.

In the residential property development sector in France, VINCI Immobilier saw 1,772 housing units reserved, a steep decline of 36% from with the first-half 2022 figure of 2,783 housing units.

 

III. Financial position

As regards liquidity, at 30 June 2023, VINCI had:
- net cash of €8.0 billion.
- confirmed credit facilities unused by VINCI SA totalling €10.5 billion, including an €8.0 billion facility, due to expire in November 2025 for most of the amount, and another €2.5 billion facility due to expire in July 2023. Given the Group’s large amount of available cash, the latter was not renewed.

At 30 June 2023, the Group’s gross long-term financial debt, before taking into account net cash, totalled €28.9 billion. Its average maturity was 6.7 years (6.9 years at 31 December 2022 and 30 June 2022) and its average cost was 3.0%¹⁴ (2.5% in 2022 and 2.1% in the first half of 2022).

In March 2023, rating agency Standard & Poor’s reiterated its confidence in the Group’s credit quality by affirming its A− long-term and A2 short-term ratings, both with stable outlook. Ratings awarded to VINCI by Moody’s (A3 long-term and P-2 short-term, with stable outlook) were also confirmed in July 2023.

The Group has carried out several bond issues since the start of 2023:
- In January, ASF (Autoroutes du Sud de la France) issued €700 million of bonds due to mature in January 2033 with a coupon of 3.25%.
- In May, VINCI SA carried out a €500 million private placement due to mature in February 2025 with a coupon of 3.375%.
- In July, VINCI SA carried out a €100 million tap issue on bonds originally issued in October 2022 and due to mature in October 2032 with a coupon of 3.375%.

 

IV. Outlook for 2023

Given the good performance delivered in the first half of 2023, VINCI is reaffirming the guidance provided in February, upon the publication of the Group’s 2022 financial statements.

Barring exceptional events, the Group confirms that in 2023 it is expecting:
· a further increase – although more limited than in 2022 – in revenue and operating income.
· net income slightly higher than the level achieved in 2022, despite a substantial increase in financial costs.
· free cash-flow – taking into account the increase in investments in both airports and renewable energy – at the upper end of the range of €4.0 billion to €4.5 billion previously indicated.

2023 forecasts for each business line are as follows:
· Over the full year, VINCI Autoroutes expects traffic levels to be similar to those seen in 2022.
· VINCI Airports is forecasting a further recovery in passenger numbers¹⁵ – without returning to their 2019 level overall in 2023 because the rebound has been longer to materialize in Asia – and a further improvement in its operating earnings.
· VINCI Energies should see further business growth, driven by continuing positive trends in its markets and the integration of recent acquisitions, while solidifying its operating margin¹⁶ . · Cobra IS, supported by its robust order book, is expecting revenue growth of at least 10%, driven by the ramp-up of the large EPC projects won recently and good momentum in its flow business.
· New projects will be added to the renewable energy production portfolio, taking total capacity in operation or under construction to at least 2 GW by the end of the year.
· VINCI Construction should see further business growth while remaining selective in taking on new business, thereby continuing to improve its operating margin.¹⁶

This guidance may be fine-tuned as part of the quarterly information at 30 September 2023, particularly depending on VINCI Autoroutes traffic levels and VINCI Airports passenger numbers during the summer.

 

V. Other highlights

· Main contract wins since the start of the year

VINCI Energies
- Design-build contract, as part of a consortium including VINCI Construction, for two onshore converter stations on a new electrical interconnection between France and Spain.
- In Germany, a contract to lay optical fibre in Gera and Altenburg in the federal state of Thuringia on behalf of Deutsche Telekom.
- Construction of a data centre in Malaysia.

Cobra IS
- Contract to design, build and install two offshore windfarm energy converter platforms in the North Sea for German operator Amprion Offshore, with total capacity of 4 GW.
- Contract to design, build and install three offshore windfarm energy converter platforms in the North Sea for Dutch operator TenneT, with total capacity of 6 GW¹⁷ .

VINCI Construction
- As part of a consortium including VINCI Energies, VINCI Construction won the first design-build contract as part of the Grand Paris Express project, relating to a section of Line 15 West, in July 2023.¹⁷
- Construction of a 10 km road and 12 bridges as part of the northern bypass of the city of Prešov, Slovakia.¹⁷
- Civil engineering contract for a new wastewater treatment plant in Nice.¹⁷ - Contract to build infrastructure for Meridian Water, an urban regeneration project in Enfield (Greater London).¹⁷
- Two major new road projects in New South Wales, Australia.
- Construction of the future police station in the city of Nice.

 

· Main recent developments

VINCI Energies completed acquisitions of 14 new companies in the first half of 2023, representing full-year revenue of €280 million and including:
- Otera AS, which designs, builds and maintains electricity transmission and distribution networks in Norway.
- Avanceon LLC, based in Pennsylvania (United States), specialising in systems integration and industrial automation.
- Elecso, a Quebec-based company specialising in electrical systems and instrumentation for infrastructure and industry.
- French railway signalling group SITS.
- Methalac, which specialises in the design, construction, commissioning and maintenance of anaerobic digesters in France.

Cobra IS
- In July 2023, Cobra IS brought into service the 570 MW Belmonte solar farm in Brazil.
- Works on solar farm assets in Spain and Brazil, with combined capacity of around 1.4 GW, are likely to begin in the next few months¹⁸ .

VINCI Highways
- In May 2023, VINCI Highways completed the acquisition of a 55% stake in Entrevias¹⁹ – which holds concessions for two toll motorway sections in Brazil, covering a total distance of 570 km in São Paulo state, until 2047 – from Brazilian investment firm Patria. - In April 2023, VINCI Highways increased its stake in Vía 40 Express, which holds the concession for the Bogotá–Girardot motorway (141 km) until 2046, from 50% to 75% through a purchase from Constructora Conconcreto.

VINCI Airports - In July, VINCI Airports and its Portuguese subsidiary ANA closed the financing of a 40-year concession contract to operate all seven airports in Cabo Verde, which handled 2.8 million passengers in 2019.
- In July, London Gatwick airport – 50.01%-owned by VINCI Airports – made a Development Consent Order application to the competent UK authorities, aiming to obtain the right to use the current taxiway (Northern Runway) as a runway for departing aircraft. If the plan is approved, this second runway would eventually enable the airport to handle up to 75 million passengers per year, as opposed to 47 million in 2019.

VINCI Autoroutes - A consortium led by VINCI Autoroutes, with other partners including VINCI Construction, launched a new initiative to help decarbonise road transport. On the A10 motorway in France, two dynamic charging solutions, primarily for heavy vehicles – one using inductive charging and the other using conductive rail charging – will be trialled on two 2 km sections over a period of three years.

 

· New appointment

Virginie Leroy, formerly Managing Director, Residential Real Estate and Regions at VINCI Immobilier, has been appointed President of VINCI Immobilier from 1 August 2023. She replaces Olivier de la Roussière, who has led VINCI Immobilier since it was created in 2005.

 

 

 

¹ Figures adjusted from published financial statements following the final purchase price allocation for Cobra IS.
² Excluding concession subsidiaries’ revenue derived from works carried out by non-Group companies (see glossary).
³ Period-end.
⁴ Figures at 100% including passenger numbers at all airports managed by VINCI Airports over the period as a whole.
⁵ Motorways managed outside France and electronic toll management activities.
⁶ Information Communication Technologies.
⁷ 1 acquisitions were completed in 2022 and 14 in the first half of 2023.
⁸ VINCI Construction’s activities are seasonal, particularly in roadworks, and first-half results are thus not representative of full-year performance.
⁹ After taking account of dilutive instruments.
¹⁰ It should be borne in mind that, because of seasonal variations in cash flow, most of the Group’s free cash flow is generated in the second half of the year.
¹¹ The impact was positive for light vehicle traffic, as a result of additional long weekends, and negative for heavy vehicle traffic because there was one fewer business day in the first half of 2023 than in the year-earlier period.
¹² Figures at 100% including passenger numbers at all managed airports over the full period.
¹³ Including the contract worth over €2 billion, won in January 2023, to design, build and install two offshore windfarm energy converter platforms in the North Sea with total capacity of 4 GW.
¹⁴ Average cost of 4.2% when excluding the non-recurring positive impact of €167 million linked to the restructuring of the acquisition debt of London Gatwick
¹⁵ Figures at 100% including passenger numbers at all managed airports over the full period.
¹⁶ Operating income from ordinary activities (Ebit) / revenue.
¹⁷ Contracts not included in the Group’s order book at 30 June 2023.
¹⁸ Raios do Parnaiba and Mundo Novo in Brazil, with combined capacity of 0.6 GW, along with around 12 further projects in Spain with combined capacity of 0.8 GW.
¹⁹ VINCI has joint control over Entrevias, which is accounted for under the equity method in the Group's financial statements.

 

Über uns
VINCI ist als weltweit führendes Unternehmen in den Bereichen Konzessionen, Energie und Bau und beschäftigt 280.000 Mitarbeiter mit Präsenz in mehr als 120 Ländern. Zu unserem Leistungsspektrum gehören Planung, Finanzierung, Bau und Betrieb von Infrastrukturen und Einrichtungen, die zur Verbesserung des Alltags und der Mobilität der Menschen beitragen. Erfolg bedeutet für uns, dass die Gesamtleistung stimmt. Dazu zählt unser Engagement zugunsten der Umwelt sowie der sozialen und gesellschaftlichen Performance unserer Unternehmensbereiche. Da die Leistungen des Konzerns sich durch ihren Nutzen für die Allgemeinheit auszeichnen, betrachten wir den Dialog mit allen Beteiligten und ein offenes Ohr für deren Belange als unerlässliche Voraussetzung unserer Tätigkeit. Unsere Ambition ist es, für unsere Kunden, Aktionäre, Mitarbeiter, Partner und die gesamte Gesellschaft auf Dauer Wert zu schaffen.