2013-vinci-annual-report

A. Report on the financial statements for the year
1. Consolidated financial statements
VINCI turned in a robust performance in 2013, illustrated by further growth in revenue and net income despite a tough economic climate,
particularly in Europe.
2013 consolidated revenue increased 4.4% to €40.3 billion, with 38% of the total generated outside France (43% in Contracting and 8% in
Concessions).
REPORT OF THE BOARD OF DIRECTORS 115
Cash flow from operations before tax and financing costs (Ebitda) amounted to €5.6 billion, up 3.3% and equal to 13.9% of revenue.
Operating income from ordinary activities (Ebit) amounted to €3.7 billion, stable overall compared with 2012. It represented 9.1% of revenue
(9.5% in 2012).
Operating income was €3.8 billion, up 2.7% against 2012. It includes a net gain of €90 million related to non-recurring items, reflecting
mainly the impact of VINCI’s holding in ADP being consolidated for the first time, the partial sale of VINCI’s stake in CFE and the financial
restructuring of two motorway projects in Greece in which VINCI is a stakeholder. These positive effects were partly offset by impairment
losses on assets.
Consolidated net income attributable to owners of the parent amounted to €1,962 million, up 2.3% compared with 2012. Earnings per share
(after taking account of dilutive instruments) was stable at €3.54 despite the increase in the number of shares outstanding, which arose
mainly from the final 2012 dividend being paid partly in shares.
Net financial debt at 31 December 2013 was €14.1 billion, up €1.6 billion relative to end 2012. Operating cash flow amounted to €3.0 billion,
covering investments in concessions (€0.8 billion) and dividends paid (€1.1 billion), as well as part of the cost of acquisitions made during
the year (€3.2 billion).
Standard & Poor’s and Moody’s confirmed their credit ratings on VINCI and its subsidiaries ASF and Cofiroute respectively at BBB+ and Baa1,
both with stable outlook.
The Group carried out bond issues and placements totalling more than €2.0 billion in 2013, with an average spread of 88 basis points over
three-month Euribor and maturities of two to 15 years.
At 31 December 2013, Group liquidity amounted to €10.4 billion. It comprised available cash resources of €4.1 billion and unused
medium-term bank credit facilities of €6.3 billion maturing between 2016 and 2018.
VINCI had a significant number of commercial successes in 2013: the Contracting business lines’ order intake reached a record high, due
mainly to contracts won by the Group outside France. Furthermore, new public-private partnerships won by the Group in France and
internationally confirmed the wisdom of its integrated concessions-construction business model.
The Contracting business lines’ order book stood at €29.4 billion at 31 December 2013, down 2% compared with the year-earlier figure but
up 2% after adjusting for the Tours–Bordeaux high-speed rail line project, which reached peak activity in 2013.
1.1 Highlights of the period
1.1.1 Main acquisitions and new contracts
Acquisition of ANA, Portuguese airport concession company
On 17 September 2013, as part of the Group’s strategy to become a leading airport operator, VINCI completed its deal with the Portuguese
government to take control of ANA, the holder of a 50-year concession to operate 10 Portuguese airports on the mainland (Lisbon, Porto,
Faro and Beja), in the Azores (Ponta Delgada, Horta, Flores and Santa Maria) and in Madeira (Funchal and Porto Santo). This operation was
finalised based on an enterprise value of about €3 billion. At 31 December 2013, the Group owned 99.98% of ANA’s capital.
With traffic growth averaging over 4% per year in the last 10 years and 5% in 2013, ANA’s business includes managing airports and their
commercial areas, along with ground handling services. The Lisbon hub is a major asset due to its strategic position on high-potential routes,
including those to Brazil and Portuguese-speaking Africa.
Finalisation of the agreement concerning a new business strategy for CFE
On 24 December 2013, following approval by the European competition authorities, VINCI and Ackermans & van Haaren (AvH) completed
the transactions provided for in the agreement they signed on 19 September 2013:
ˇˇAvH transferred to CFE its 50% stake in DEME, one of the world’s principal operators in dredging and marine works, in exchange for
12,222,222 new CFE shares at a price of €45 each.
ˇˇVINCI sold half of its stake in CFE, i.e. 3,066,440 shares, to AvH at a price of €45 each.
Following these two transactions, CFE became the sole shareholder of DEME and AvH the majority shareholder of CFE. VINCI still has a
12.11% stake in CFE, giving it only significant influence over the company. As a result, the company has been accounted for under the equity
method since 24 December 2013.