First half 2023

28 July 2023 – 7:30 am – Funds – France

– Progress in income and working earnings in all three companies: Concessions, Power and Building

– Optimistic free money movement

– Sturdy order consumption and file order ebook

– 2023 steerage reaffirmed

– 2023 interim dividend: €1.05 per share

 

Xavier Huillard, VINCI’s Chairman and CEO, made the next feedback:

Confirming the constructive development seen in 2022, VINCI’s general efficiency within the first half of 2023 was of very top quality: along with additional development in income and earnings, it generated constructive free money movement regardless of the opposed affect of seasonal differences in its companies initially of the 12 months.

In Concessions, VINCI Autoroutes visitors ranges continued to rise on account of agency momentum in mild car visitors, whereas heavy car visitors fell barely. At VINCI Airports, passenger numbers continued to rebound, and moved again to pre-pandemic ranges exterior of Asia. With the mixing of OMA in Mexico and by retaining prices beneath management, it recorded a pointy rise in working earnings.

VINCI Building, whose new organisation has now been in place for 2 years, achieved agency enterprise ranges each in France and internationally, and improved its working margin by being much more selective when taking up new initiatives.

The Power enterprise, which is being pushed by highly effective megatrends associated to the power transition, noticed enterprise ranges rise sharply, with margins up for each VINCI Energies and Cobra IS.

Order consumption was robust within the first half, taking the order ebook to a file degree.

As regards exterior development, the primary transactions accomplished for the reason that begin of the 12 months have involved VINCI Energies – with a lot of acquisitions in Europe and North America – and VINCI Highways, which purchased a stake in a motorway concession within the state of São Paulo in Brazil and took management of the concession operator for the Bogotá–Girardot motorway in Colombia.

This excellent begin to the 12 months as soon as once more demonstrated the power of the Group’s enterprise mannequin, which mixes complementary companies and cycles, together with the outstanding skill of its corporations to construct native roots and develop their companies.

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

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

The Board additionally authorized the Group’s tax transparency report, which is now out there on its web site.

 

I. Income and earnings development – Excellent free money movement

VINCI’s monetary statements for the primary half of 2023 present a pointy improve in income and earnings in contrast with the primary half of 2022, together with constructive free money movement.

Consolidated income within the first half of 2023 rose by greater than 13% to €32.4 billion (natural development of 11.6%, a 2.6% constructive affect from modifications within the consolidation scope and a 0.6% adverse affect from alternate charge actions). This development confirms the great momentum within the Group’s companies, each in France and overseas.

– In France (44% of the full), income was €14.4 billion, up 7% on each an precise and like-for-like foundation.

– Outdoors France (56% of the full), income got here to €18.0 billion, up 20% on an precise foundation and up 16% on a like-for-like foundation. Adjustments in scope primarily concern the mixing of OMA – a concession firm that operates 13 airports in Mexico, together with Monterrey airport – through which VINCI Airports acquired a 29.99% stake in December 2022, together with current acquisitions made by VINCI Energies, together with Kontron AG’s (acquired in late 2022) and Otera AS in Norway (acquired in early 2023). Change charge actions had a barely adverse affect on income as a result of the euro rose towards a number of currencies together with sterling.

Concessions income totalled €5.0 billion, up 20% on an precise foundation and up 13% on a like-for-like foundation in contrast with the primary half of 2022, and broke down as follows:

– VINCI Autoroutes: €3.0 billion (up 6%).

– VINCI Airports: €1.8 billion (up 58% precise and up 32% like-for-like). In contrast with the primary half of 2019 – the pre-pandemic reference 12 months – income was up 8% at fixed scope.

– VINCI Highways⁵ : €0.2 billion (up 10%).

VINCI Energies generated income of €9.1 billion, up 18% on an precise foundation and up 13% on a like-for-like foundation in contrast with the primary half of 2022. The enterprise line’s robust momentum displays the superb positions of its corporations in buoyant markets – referring to the power and digital transitions – each in France and internationally, together with their broad array of expertise and their efficient mixture of world attain and native presence. All 4 of VINCI Energies’ enterprise sectors (infrastructure, trade, constructing options and ICT⁶ achieved double-digit development. As well as, current acquisitions⁷ boosted income by round €380 million within the first half.

– In France (44% of the full), income was €4.0 billion, up 13% on each an precise and like-for-like foundation.

– Outdoors France (56% of the full), income was €5.1 billion, up 21% on an precise foundation and up 13% on a like-for-like foundation. Enterprise development remained very robust in most areas and nations through which VINCI Energies has operations, significantly in Germany, Benelux, North America, Morocco, Singapore and New Zealand.

Income at Cobra IS totalled €3.1 billion, up 15% on an precise foundation and up 14% on a like-for-like foundation relative to the primary half of 2022. It was pushed by the ramp-up of enormous EPC (Engineering, Procurement and Building) initiatives, largely associated to the power transition. Furthermore, movement enterprise remained agency, each in Europe and Latin America.

– In Spain (47% of the full), income rose by 17% to €1.4 billion.

– Outdoors Spain (53% of the full, of which 32% in Latin America), income totalled €1.6 billion, up 13% on an precise foundation and up 12% on a like-for-like foundation.

VINCI Building’s income totalled €14.9 billion, up 11% on an precise foundation and up 12% on a like-for-like foundation in contrast with the primary half of 2022.

– In France (46% of the full), income was €6.8 billion (up 7%). Enterprise ranges remained regular in civil engineering. Within the constructing phase, enterprise was pushed by rehabilitation initiatives and by the development of public buildings, significantly within the hospital sector.

– Outdoors France (54% of the full), income amounted to €8.1 billion, up 15% on an precise foundation and up 16% on a like-for-like foundation. This displays progress with a number of giant civil engineering contracts in Europe, North America and Australia/New Zealand, together with strong enterprise ranges in speciality networks and proximity networks.

Lastly, VINCI Immobilier suffered from difficult circumstances in the true property sector in France towards a backdrop of excessive rates of interest, and its income fell sharply by 23% to €0.6 billion within the first-half interval.

Ebitda amounted to €5.3 billion (16.4% of income), considerably greater than the first-half 2022 determine of €4.5 billion (15.9of income).

Working earnings from unusual actions (Ebit) grew strongly to €3.5 billion from €2.8 billion within the first half of 2022. It included:

· €2.4 billion from the Concessions enterprise, with VINCI Autoroutes accounting for €1.6 billion of the full. At VINCI Airports, Ebit was €0.8 billion (€0.4 billion within the first half of 2022). This robust enchancment was pushed by the rebound in passenger numbers, management of prices and the mixing of OMA.

· €0.9 billion from the Power enterprise (VINCI Energies: €0.6 billion, equal to six.8% of income; Cobra IS: €0.2 billion, equal to 7.5% of income).

· €0.3 billion for VINCI Building, equal to 2.0% of income⁸ .

Consolidated internet earnings attributable to homeowners of the guardian set a brand new file of €2.1 billion and earnings per share⁹ amounted to €3.65 (€1.9 billion and €3.26 respectively within the first half of 2022).

Free money movement¹⁰ was constructive at €261 million, in contrast with an outflow of €281 million within the first half of 2022. This glorious efficiency was on account of development in Ebitda and the Group’s grip on working capital requirement, which allowed it to offset the sharp rise in investments.

Consolidated internet monetary debt was €20.9 billion at 30 June 2023, representing a lower of €1.2 billion relative to 30 June 2022.

 

II. Stable operational efficiency

Visitors ranges at VINCI Autoroutes remained nicely oriented, rising 2.7% 12 months on 12 months within the second quarter of 2023. Total, visitors ranges have been up 2.2% within the first half of 2023 relative to the primary half of 2022.

Inside this determine, mild car visitors was up nearly 3%, whereas heavy car visitors was down 1% within the first half of 2023. Totally different calendar results The affect was constructive for mild car visitors, on account of further lengthy weekends, and adverse for heavy car visitors as a result of there was one fewer enterprise day within the first half of 2023 than within the year-earlier interval. impacted the underlying development, which stays broadly beneficial.

The upturn in VINCI Airports passenger numbers continued in 2023, underpinned by robust demand, a rise in provide when it comes to seats provided by airways, and the opening of recent routes. A number of airports operated by VINCI Airports – these in Portugal, Mexico and the Dominican Republic in addition to Belgrade airport in Serbia – even achieved file passenger numbers, beating their 2019 ranges.

Total, the community’s airports dealt with 123 million passengers within the first half of 2023¹² , 36% greater than within the first half of 2022 and greater than 90% of the first-half 2019 determine, regardless of the slower restoration in Asia.

Order consumption within the Power and Building companies totalled €31.2 billion within the first half of 2023, an 18% year-on-year improve. Order consumption at VINCI Energies (€11.1 billion within the first half of 2023, up 21% in contrast with the primary half of 2022) hit a brand new file on a rolling 12-month foundation. Order consumption at Cobra IS was €5.3 billion (up 64%), pushed by giant contracts linked to renewable power manufacturing initiatives.¹³ At VINCI Building, order consumption additionally rose (up 6% to €14.9 billion), buoyed by strong movement enterprise.

Total, the order ebook reached a file excessive of €61.5 billion at 30 June 2023, a rise of 9% from the extent a 12 months earlier. It represents greater than 13 months of common enterprise exercise. Worldwide enterprise made up 69% of the order ebook, versus 68% at 30 June 2022.

Within the residential property improvement sector in France, VINCI Immobilier noticed 1,772 housing items reserved, a steep decline of 36% from with the first-half 2022 determine of two,783 housing items.

 

III. Monetary place

As regards liquidity, at 30 June 2023, VINCI had:

– internet money of €8.0 billion.

– confirmed credit score amenities unused by VINCI SA totalling €10.5 billion, together with an €8.0 billion facility, on account of expire in November 2025 for a lot of the quantity, and one other €2.5 billion facility on account of expire in July 2023. Given the Group’s great amount of accessible money, the latter was not renewed.

At 30 June 2023, the Group’s gross long-term monetary debt, earlier than considering internet money, totalled €28.9 billion. Its common maturity was 6.7 years (6.9 years at 31 December 2022 and 30 June 2022) and its common price was 3.0%¹⁴ (2.5% in 2022 and a pair of.1% within the first half of 2022).

In March 2023, ranking company Customary & Poor’s reiterated its confidence within the Group’s credit score high quality by affirming its A− long-term and A2 short-term rankings, each with secure outlook. Rankings awarded to VINCI by Moody’s (A3 long-term and P-2 short-term, with secure outlook) have been additionally confirmed in July 2023.

The Group has carried out a number of bond points for the reason that begin of 2023:

– In January, ASF (Autoroutes du Sud de la France) issued €700 million of bonds on account of mature in January 2033 with a coupon of three.25%.

– In Could, VINCI SA carried out a €500 million personal placement on account of mature in February 2025 with a coupon of three.375%.

– In July, VINCI SA carried out a €100 million faucet problem on bonds initially issued in October 2022 and on account of mature in October 2032 with a coupon of three.375%.

 

IV. Outlook for 2023

Given the great efficiency delivered within the first half of 2023, VINCI is reaffirming the steerage supplied in February, upon the publication of the Group’s 2022 monetary statements.

Barring distinctive occasions, the Group confirms that in 2023 it’s anticipating:

· an extra improve – though extra restricted than in 2022 – in income and working earnings.

· internet earnings barely greater than the extent achieved in 2022, regardless of a considerable improve in monetary prices.

· free cash-flow – considering the rise in investments in each airports and renewable power – on the higher finish of the vary of €4.0 billion to €4.5 billion beforehand indicated.

2023 forecasts for every enterprise line are as follows:

· Over the complete 12 months, VINCI Autoroutes expects visitors ranges to be much like these seen in 2022.

· VINCI Airports is forecasting an extra restoration in passenger numbers¹⁵ – with out returning to their 2019 degree general in 2023 as a result of the rebound has been longer to materialize in Asia – and an extra enchancment in its working earnings.

· VINCI Energies ought to see additional enterprise development, pushed by persevering with constructive developments in its markets and the mixing of current acquisitions, whereas solidifying its working margin¹⁶ .
· Cobra IS, supported by its strong order ebook, is anticipating income development of no less than 10%, pushed by the ramp-up of the big EPC initiatives received just lately and good momentum in its movement enterprise.

· New initiatives will probably be added to the renewable power manufacturing portfolio, taking whole capability in operation or beneath building to no less than 2 GW by the tip of the 12 months.

· VINCI Building ought to see additional enterprise development whereas remaining selective in taking up new enterprise, thereby persevering with to enhance its working margin.¹⁶

This steerage could also be fine-tuned as a part of the quarterly info at 30 September 2023, significantly relying on VINCI Autoroutes visitors ranges and VINCI Airports passenger numbers through the summer season.

 

V. Different highlights

· Foremost contract wins for the reason that begin of the 12 months

VINCI Energies

– Design-build contract, as a part of a consortium together with VINCI Building, for 2 onshore converter stations on a brand new electrical interconnection between France and Spain.

– In Germany, a contract to put optical fibre in Gera and Altenburg within the federal state of Thuringia on behalf of Deutsche Telekom.

– Building of a knowledge centre in Malaysia.

Cobra IS

– Contract to design, construct and set up two offshore windfarm power converter platforms within the North Sea for German operator Amprion Offshore, with whole capability of 4 GW.

– Contract to design, construct and set up three offshore windfarm power converter platforms within the North Sea for Dutch operator TenneT, with whole capability of 6 GW¹⁷ .

VINCI Building

– As a part of a consortium together with VINCI Energies, VINCI Building received the primary design-build contract as a part of the Grand Paris Categorical challenge, referring to a piece of Line 15 West, in July 2023.¹⁷

– Building of a ten km street and 12 bridges as a part of the northern bypass of town of Prešov, Slovakia.¹⁷

– Civil engineering contract for a brand new wastewater therapy plant in Good.¹⁷
– Contract to construct infrastructure for Meridian Water, an city regeneration challenge in Enfield (Higher London).¹⁷

– Two main new street initiatives in New South Wales, Australia.

– Building of the longer term police station within the metropolis of Good.

 

· Foremost current developments

VINCI Energies accomplished acquisitions of 14 new corporations within the first half of 2023, representing full-year income of €280 million and together with:

– Otera AS, which designs, builds and maintains electrical energy transmission and distribution networks in Norway.

– Avanceon LLC, based mostly in Pennsylvania (United States), specialising in programs integration and industrial automation.

– Elecso, a Quebec-based firm specialising in electrical programs and instrumentation for infrastructure and trade.

– French railway signalling group SITS.

– Methalac, which specialises within the design, building, commissioning and upkeep of anaerobic digesters in France.

Cobra IS

– In July 2023, Cobra IS introduced into service the 570 MW Belmonte photo voltaic farm in Brazil.

– Works on photo voltaic farm belongings in Spain and Brazil, with mixed capability of round 1.4 GW, are more likely to start within the subsequent few months¹⁸ .

VINCI Highways

– In Could 2023, VINCI Highways accomplished the acquisition of a 55% stake in Entrevias¹⁹ – which holds concessions for 2 toll motorway sections in Brazil, masking a complete distance of 570 km in São Paulo state, till 2047 – from Brazilian funding agency Patria.
– In April 2023, VINCI Highways elevated its stake in Vía 40 Categorical, which holds the concession for the Bogotá–Girardot motorway (141 km) till 2046, from 50% to 75% by way of a purchase order from Constructora Conconcreto.

VINCI Airports
– In July, VINCI Airports and its Portuguese subsidiary ANA closed the financing of a 40-year concession contract to function all seven airports in Cabo Verde, which dealt with 2.8 million passengers in 2019.

– In July, London Gatwick airport – 50.01%-owned by VINCI Airports – made a Improvement Consent Order utility to the competent UK authorities, aiming to acquire the appropriate to make use of the present taxiway (Northern Runway) as a runway for departing plane. If the plan is authorized, this second runway would ultimately allow the airport to deal with as much as 75 million passengers per 12 months, versus 47 million in 2019.

VINCI Autoroutes
– A consortium led by VINCI Autoroutes, with different companions together with VINCI Building, launched a brand new initiative to assist decarbonise street transport. On the A10 motorway in France, two dynamic charging options, primarily for heavy automobiles – one utilizing inductive charging and the opposite utilizing conductive rail charging – will probably be trialled on two 2 km sections over a interval of three years.

 

· New appointment

Virginie Leroy, previously Managing Director, Residential Actual Property and Areas 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 because it was created in 2005.

 

 

 

¹ Figures adjusted from revealed monetary statements following the ultimate buy worth allocation for Cobra IS.

² Excluding concession subsidiaries’ income derived from works carried out by non-Group corporations (see glossary).

³ Interval-end.

⁴ Figures at 100% together with passenger numbers in any respect airports managed by VINCI Airports over the interval as a complete.

⁵ Motorways managed exterior France and digital toll administration actions.

⁶ Info Communication Applied sciences.

⁷ 1 acquisitions have been accomplished in 2022 and 14 within the first half of 2023.

⁸ VINCI Building’s actions are seasonal, significantly in roadworks, and first-half outcomes are thus not consultant of full-year efficiency.

⁹ After taking account of dilutive devices.

¹⁰ It ought to be borne in thoughts that, due to seasonal differences in money movement, a lot of the Group’s free money movement is generated within the second half of the 12 months.

¹¹ The affect was constructive for mild car visitors, on account of further lengthy weekends, and adverse for heavy car visitors as a result of there was one fewer enterprise day within the first half of 2023 than within the year-earlier interval.

¹² Figures at 100% together with passenger numbers in any respect managed airports over the complete interval.

¹³ Together with the contract value over €2 billion, received in January 2023, to design, construct and set up two offshore windfarm power converter platforms within the North Sea with whole capability of 4 GW.

¹⁴ Common price of 4.2% when excluding the non-recurring constructive affect of €167 million linked to the restructuring of the acquisition debt of London Gatwick

¹⁵ Figures at 100% together with passenger numbers in any respect managed airports over the complete interval.

¹⁶ Working earnings from unusual actions (Ebit) / income.

¹⁷ Contracts not included within the Group’s order ebook at 30 June 2023.

¹⁸ Raios do Parnaiba and Mundo Novo in Brazil, with mixed capability of 0.6 GW, together with round 12 additional initiatives in Spain with mixed capability of 0.8 GW.

¹⁹ VINCI has joint management over Entrevias, which is accounted for beneath the fairness methodology within the Group’s monetary statements.

 

About VINCI
VINCI is a world participant in concessions, power and building, using greater than 272,000 individuals in additional than 120 nations. We design, finance, construct and function infrastructure and amenities that assist enhance day by day life and mobility for all. As a result of we consider in all-round efficiency, we’re dedicated to working in an environmentally, socially accountable and moral method. And since our initiatives are within the public curiosity, we contemplate that reaching out to all our stakeholders and interesting in dialogue with them is crucial within the conduct of our enterprise actions. Based mostly on that strategy, VINCI’s ambition is to create long-term worth for its prospects, shareholders, workers, companions and society normally.