Quarterly information at 30 September 2022

25 October 2022 - 5:46 pm - Finances - France

• Revenue for the first nine months: €45.2 billion, up 26% (up 12% like-for-like) – International revenue up almost 50%, accounting for more than half of the total
• Solid operating performance in the third quarter across all business lines
- Concessions: Continued recovery in passenger numbers at VINCI Airports / VINCI Autoroutes traffic above pre-pandemic levels
- VINCI Energies, Cobra IS and VINCI Construction: firm business and order intake momentum
• Order book remaining at a very high level
• Net financial debt under control - substantial liquidity
• 2022 guidance confirmed

^* Excluding concession subsidiaries’ revenue derived from works carried out by non-Group companies ¹.
^**Period-end.

 

 

I. Consolidated key figures

Revenue in the third quarter of 2022 totalled €16.7 billion, up 26% on an actual basis (up 12% like-for-like) relative to the third quarter of 2021. This trend is consistent with that seen in the first half of 2022 and confirms the firm momentum in VINCI’s businesses, both in France and abroad.

In the first nine months of 2022, consolidated revenue amounted then to €45.2 billion, up 26% on an actual basis and up 12% like-for-like compared with 2021 (organic growth at 11.8%, a 12.7% positive impact from changes in scope and a positive currency effect of 1.7%). It broke down as follows:
- In France (46% of the total), revenue was €20.9 billion, up 8% on an actual basis and up 7% like-for-like.
- International revenue – which now accounts for over half of the Group total (54%) – was €24.4 billion, up 48% on an actual basis and up 17% like-for-like. Changes in scope – coming mainly from the integration of Cobra IS, which was acquired in late 2021 – boosted revenue by 27%. Exchange rate movements had a positive impact of almost 4%, due to the appreciation of numerous currencies – particularly the US dollar – against the euro.

Order intake at VINCI Energies, Cobra IS and VINCI Construction totalled €41.1 billion in the first nine months of the year (up 26% year on year, up 6% excluding Cobra IS). Order intake increased in every business line relative to 2021, due in particular to firm levels of flow business throughout the whole period.

Overall, the order book at 30 September 2022 remained at a historically high level of €57.4 billion. This represents a year-on-year increase of 26% (2% excluding Cobra IS) and 15 months of average business activity. As a result, the Group has good visibility, allowing it to continue being selective in terms of new projects. International business made up 68% of the order book at the end of the period.

II. Revenue change by business line

· CONCESSIONS: €6,995 million (up 36% relative to 2021, up 8% relative to 2019)

Unless otherwise stated, comparisons are with the pre-pandemic reference year of 2019.

VINCI Autoroutes: €4,604 million (up 11% relative to 2021, up 7% relative to 2019)

VINCI Autoroutes’ traffic levels remained buoyant in the third quarter of 2022 despite higher fuel prices. Resilient, they rose by 2.5% (+2.4% for light vehicles and +3.7% for heavy vehicles).

In the first nine months of 2022, traffic levels rose by 2.3% (+1.8% for light vehicles and +5.5% for heavy vehicles). Compared with 2021, they were up 9.2% (+10.3% for light vehicles⁴ and +3.0% for heavy vehicles).

VINCI Airports: €2,028 million (2.6x increase over the 2021 figure, down 13% at constant perimeter relative to 2019)

Growth in VINCI Airports passenger numbers continued to accelerate in the third quarter at almost all of the network’s airports. Momentum was particularly strong in Europe, South America and the Caribbean. Passenger numbers returned to levels equal to or higher than those achieved in 2019 at several airports, particularly in Portugal, Serbia and the Americas. In Asia, meanwhile, passenger growth remained weaker because of the travel restrictions that remained in place at the end of September in several countries in the region.

Overall, VINCI Airports handled 137 million passengers across its network in the first nine months of 2022⁵. This was more than twice the number seen in the year-earlier period. Passenger numbers were 69% of their 2019 level (54% in the first quarter, 73% in the second and 78% in the third). Excluding Asian airports (Japan and Cambodia), they were 81% of their 2019 level (89% in the third quarter).

Other concessions (VINCI Highways, VINCI Railways and VINCI Stadium): €363 million (up 64% relative to 2021, up 51% relative to 2019)

Aside from the main concessions – Lima Expresa and Gefyra (Rion–Antirion bridge in Greece) – Strait Crossing Development Inc. (which holds the concession for the Confederation Bridge in Canada) and TollPlus (which specialises in motorway toll management systems and other software solutions for the mobility industry) have been fully consolidated in the Group’s financial statements since the second quarter 2022.

· VINCI ENERGIES: €11,914 million (up 10% on an actual basis and up 7% like-for-like compared with 2021)

After a very buoyant first half, VINCI Energies’ revenue growth accelerated in the third quarter of 2022 (up 9% like-for-like relative to the third quarter of 2021), both in France and abroad. Order intake remained robust. This firm momentum was driven by buoyant markets – energy and digital transitions - but also by VINCI Energies’ diversity in terms of geographical exposure and expertise. Acquisitions also had a positive impact: 22 acquisitions were completed in the first nine months of 2022, all in Europe except one in Canada, representing full-year revenue of around €275 million.

In France (45% of the total), revenue was €5,334 million, up 8% on an actual basis or up 7% like-for-like compared with 2021. Revenue growth accelerated significantly in the third quarter (up 12% on an actual basis or up 11% like-for-like compared with the third quarter of 2021). This excellent overall performance was fuelled by all VINCI Energies business segments (Industry, Building Solutions, Infrastructure and ICT: Information and Communication Technologies).

International revenue (55% of the total) was €6,581 million, up 11% on an actual basis (up 6% like-for-like) relative to 2021. Revenue growth accelerated in the third quarter (up 13% on an actual basis or up 8% like-for-like compared with the third quarter of 2021). Revenue rose in almost all of VINCI Energies’ geographical locations.

Order intake in the first nine months of 2022 was 8% higher than in the year-earlier period. In the rolling 12 months to end-September, it amounted to a record €17.1 billion. The order book at 30 September 2022 stood at €12.6 billion, up 11% year on year, representing more than 9 months of VINCI Energies’ average business activity.

· COBRA IS: €4,108 million

Revenue at Cobra IS, which operates almost exclusively outside France, amounted to €4,108 million, with 46% coming from Spain and 35% from Latin America. It was buoyed by good momentum in its flow business – particularly in Spain, Portugal, Mexico and Peru – and in EPC (engineering, procurement and construction) projects such as power transmission lines in Brazil.

Order intake in the first nine months of 2022 amounted to €6.5 billion. This reflects solid order intake in flow business, along with some large EPC contract wins in the third quarter:
- two new contracts for high-voltage lines in Brazil, representing more than €1.0 billion of works;
- a contract to design, build and install two offshore converter platforms for wind farms in the North Sea, worth close to €1 billion.

The order book amounted to €11.2 billion at end-September 2022, representing more than 24 months of average business activity.

· VINCI CONSTRUCTION: €21,491 million (up 12% on an actual basis and up 9% like-for-like compared with 2021)

VINCI Construction generated a high level of revenue in the third quarter of 2022. Growth accelerated relative to the first half, coming in at 13% year on year in the third quarter, driven particularly by VINCI Construction’s international exposure. Order intake remained robust due to good performance in flow business in France.

In France (46% of the total), revenue was €9,811 million, up 4% both on an actual basis and like-for-like. Business levels remained well oriented in civil engineering and in roadworks, despite a lower growth in the third quarter. In building, they were driven by several major non-residential developments in the Greater Paris area.

International revenue (54% of the total) was €11,679 million, up 19% on an actual basis and up 13% like-for-like. In addition to a positive currency effect, revenue was driven by the ramp-up of large contracts obtained in recent years, including two works packages on the HS2 high-speed rail line in the United Kingdom, motorway and rail projects in North America, Australia and New Zealand, and preparatory work on the Fehmarnbelt Fixed Link between Germany and Denmark. Revenue in the Specialty Networks business also rose very sharply.

VINCI Construction’s order intake rose by 5% in the first nine months of 2022. Its order book ended the quarter at €33.6 billion, almost unchanged year on year (down 1%). This represents 14 months of VINCI Construction’s average business activity, enabling it to maintain a particularly selective approach to taking on new business in view of current market trends.

· VINCI IMMOBILIER: €1,103 million (up 2% relative to 2021)

VINCI Immobilier’s consolidated revenue amounted to €1,103 million, up 2% year on year including an 11% increase in the third quarter. Adding in VINCI Immobilier’s share in joint developments, revenue rose by almost 5% to €1,230 million. Production remained firm overall.

The number of housing units reserved in France came to 4,662 in the first nine months of 2022, down 9% compared with the same period in 2021, when there was a sharp post-Covid rebound. However, reservations rose by 2% year on year in the third quarter of 2022.

III. Financial position and liquidity

Consolidated net financial debt was €20.1 billion at 30 September 2022, representing a limited increase of €0.8 billion relative to 31 December 2021. It includes acquisitions made during the period, the payment of the final dividend in respect of 2021 and share buy-backs.

VINCI has maintained a very high level of liquidity. At 30 September 2022, it amounted to €17.9 billion, comprising:
- managed net cash of €7.4 billion;
- unused confirmed bank credit facilities by VINCI SA totalling €10.5 billion, including facilities in the amount of €8 billion, most of which are due to expire in November 2025. VINCI also arranged a new €2.5 billion bank credit facility in July 2022, due to expire in July 2024.

The Group, which is rated A- by Standard & Poor’s and A3 by Moody’s, both with stable outlook, has carried out several bond transactions so far this year.
- In August, its ASF (Autoroutes du Sud de la France) subsidiary issued €850 million of bonds due to mature in September 2032 with an annual coupon of 2.75%. The size of the transaction was increased to €925 million after the public issue was completed.
- In October, VINCI SA issued €650 million of bonds due to mature in October 2032 with an annual coupon of 3.375%. These transactions enabled the Group to extend the average maturity of its debt on terms that are attractive in view of the current situation in the credit market.

IV. 2022 outlook

Based on its solid performance in the first nine months of 2022, VINCI confirms that it expects full-year net income to be higher than the 2019 figure.

The Group’s guidance for its various business lines in 2022 are:
· VINCI Autoroutes, where traffic levels have been firm overall despite higher fuel prices, forecasts full-year traffic levels higher than those of 2019.
· VINCI Airports anticipates – barring a resurgence of the pandemic – passenger numbers for 2022 to be around 70% of their 2019 level, allowing it to generate positive net income and free cash flow.
· VINCI Energies, which operates in buoyant markets, should be able to continue growing its business while solidifying its operating margin7.
· Cobra IS, benefiting from firm momentum in its flow business and the ramp-up of its EPC projects, anticipates revenue of around €5.5 billion and operating margin⁶. in line with the industry’s best in class.
· VINCI Construction, due to its very large order book, expects to remain busy and improve its operating margin7, while continuing to take a selective approach to new business.

Despite geopolitical, economic and pandemic-related uncertainty, VINCI remains confident that it will be able to maintain consistent growth over the long term. The Group is well equipped to achieve this due to the diversity of its business activities and geographical locations. In addition, as a provider of services to the energy, construction and mobility industries, it is positioned to take full advantage of new opportunities arising from the need to ensure that growth is sustainable and environmentally friendly.

V. Other recent highlights

· New developments

VINCI Energies – in addition to the aforementioned 22 acquisitions completed in the first nine months of the year – has announced:
· The signature of an agreement in August 2022 to acquire the majority of the IT services business of German group Kontron AG (previously S&T AG). This transaction, which is subject to approval by the local antitrust authorities, will enable VINCI Energies to grow its ICT (information and communication technology) business and establish a foothold for its Axians brand in around 10 countries in Central and Eastern Europe.
· The October 2022 acquisition of TLT-Building and TLT-Connection in Finland, strengthening its Scandinavian presence in energy and telecoms infrastructure.

VINCI Airports announced the following transactions in the third quarter of 2022:
· In Mexico, the acquisition of a 29.99% stake in OMA (Grupo Aeroportuario del Centro Norte), which holds concessions for 13 airports in Northern and Central Mexico that together handled 23 million passengers in 2019, including the airport of Monterrey, the key manufacturing hub. The deal will make VINCI Airports the leading shareholder of OMA and enable it to apply its long-term partnership model, with the aim of supporting Mexico’s economic growth as well as its tourism industry. The concession agreement is due to end in 2048. The closing of the acquisition is expected in late 2022.
· In Cape Verde, VINCI Airports and its Portuguese subsidiary ANA have signed a 40-year concession contract for seven airports in the archipelago. The financial arrangements for the project are expected to be finalised by mid-2023, when the new concession company will begin operating the airports.

· Share buy-backs

In the first nine months of 2022, the Group repurchased €1.0 billion of VINCI shares (10.9 million shares at an average price of €91.77 each).

On 3 October 2022, VINCI appointed an investment service provider to buy up to €250 million of VINCI shares on its behalf between 4 October and 23 December 2022.

· Low-carbon hydrogen

The closing of the Clean H2 Infra Fund – the world’s first low-carbon hydrogen fund, in which VINCI is an anchor investor – was announced in early October 2022.

This investment forms part of the Group’s efforts to gain a presence across the whole hydrogen value chain by developing:
- solutions that help decarbonise mobility on its transport assets;
- initiatives such as the creation of Hyfinity – a business unit dedicated to low-carbon hydrogen EPC projects – and the acquisition of a stake in Genvia, a company that is developing high-performance electrolysers for the production of low-carbon hydrogen.

¹ See glossary.
² VINCI Highways, VINCI Railways and VINCI Stadium.
³Of which Cobra IS: order intake of €6.5 billion in the first nine months of 2022 and order book of €11.2 billion at 30 September 2022.
⁴Several types of restrictions on movement were in force in France and the rest of Europe in the first half of 2021, including a curfew until 20 June 2021, a lockdown from 3 April to 3 May 2021 including a ban on travelling more than 10 km from the home, the closure of many public spaces and restrictions on travel between countries.
⁵Figures at 100% including passenger numbers at all managed airports over the full period.
⁶Ebit / revenue.

 

Conference call

The Group will comment on its revenue and business activities in the period ended 30 September 2022 in a conference call to be held in English today (Tuesday, 25 October 2022) at 6.00pm CET.

To take part, please obtain an individual access code ahead of the call via the following link:
https://event-registration.arkadin.com/634d1002496dda609c87a0cb
and then dial one of the following numbers: FR: +33 1 72 72 74 49
UK: +44 203 009 2484
US: +1 646 722 4912

Playback number (available within two hours):
FR: +33 1 70 71 01 60 PIN: 425024241#
UK: +44 20 3364 5147 PIN: 425024241#
US: +1 646 722 4969 PIN: 425024241#

 

 

About VINCI
VINCI is a global player in concessions, energy and construction, employing 280,000 people in more than 120 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in all-round performance, we are committed to operating in an environmentally, socially responsible and ethical manner. And because our projects are in the public interest, we consider that reaching out to all our stakeholders and engaging in dialogue with them is essential in the conduct of our business activities. Based on that approach, VINCI’s ambition is to create long-term value for its customers, shareholders, employees, partners and society in general.