Presentation of VINCI Construction to financial analysts

Presentation of VINCI Constructionto financial analystsLille, France – 17 December 2004

VINCI Construction: overviewVINCI ConstructionPhilippe RatynskiFrançois RaveryFinanceJean Marc FonteyneHuman ResourcesJean RossiSOGEAConstructionRobert HosseletGTMConstructionRichard FrancioliVINCIConstructionFilialesInternationalesJohn StanionVINCI plcPhilippe Raty nskiVINCIConstructionDeutschlandRenaud BentegeatCFE (45%)Pierre BergerVINCIConstructionGrands ProjetsBruno DupetyFreyssinetFranceFranceAfricaFrench overseasterritoriesCentral EuropeUKGermanyBelgiumFranceInternationalFranceInternational2

VINCI Construction: overviewIn mainland FranceA very tightly knit network of business units:Sogea Construction, GTM ConstructionRest of the worldEuropean subsidiaries with local management:UK, Germany, Belgium, Central EuropeLong-standing presence in Africa (Sogea Satom) and in Frenchoverseas territoriesSpecialist business activities in France and export marketsVINCI Construction Grands Projets, Freyssinet, DEME19%20%19%48%47%48%33%33%33%Net salesOperating incomeNet income3

VINCI Construction: overviewDecentralised structure: 600 profit centresRisk control: clear guidelines46,000 employeesManagers/supervisors15%Labourer/office staff54%Technicians31%Rest of world43%France57%15,000 worksites a year4

Change in net sales by management centre(in € billions)200120022003AveragegrowthSOGEA Construction1,9391,8732,132+5%GTM Construction1,4911,5121,582+3%Filiales Internationales903886928+1%UK629794773+11%GERMANY (*)147431418+69%CFE850797793-3%Grands Projets595626669+6%Freyssinet389431420+4%TOTALElimination of inter-companytransactionsTOTAL CONSOLIDATED6,943-506,8937,350-487,3027,715-477,668+5%+5%Strong growth for 2004 expected in France and Central EuropeGrowth in the UK, Germany and Africa(*) Reclassification of Bautec within VINCI Construction in 2002 (formerly …… VINCI Energies)5

Some photos ….Lefortovo /St Pétersbourg MetroCTRL / Medway viaductBerjaya Times Square6

Net sales by geographical areaAlmost 90% of net sales generated in EuropeGood balance between France and the rest of the worldRest of the world: 6%Africa: 5%Rest of Europe: 6%Central and Eastern Europe: 5%Germany: 5%France: 55%Belgium: 7%UK: 11%7

The majors in EuropeNet sales in € billions14121086420SkanskaHochtiefVINCI ConstructionACS ConstrucionBilfinger & BergerBouygues ConstructionBalfour Beatty ContractingFerrovial ConstrucionEiffage Construction8

Net sales by business lineVaried and complementary know-howHydraulicengineering7%Servicesand misc.10%Specialistactivities12%Building43%Civilengineering28%9

France: market and competitionIncreased market share of VINCI Construction in overall stable market200Total marketVINCI Construction5 0001504 000National market(!bn)100503 0002 0001 000VINCI Construction(!m)02000 2001 2002 2003 2004E0Source: Euroconstruct June 2003,55th ConferenceVINCI Construction: No. 1 in FranceVINCI Construction business linesCompetitorsCivilengineering30%Hydraulicengineering11%Services &misc. 2%Building57%Bouygues Construction:€5 bn, of which €2.4 bn in FranceEiffage Construction:€3.4 bn, of which €1.7 bn in FranceSpie Batignolles: €0.8 bnFayat: €1.1 bn, of which €0.4 bn inconstruction2003 net sales: €3.8 bn10

Germany: market and competitionSKE and VINCI Bautec: 2 specialist companies independent of traditionalconstruction markets:SKE: facilities management/PPPVINCI Bautec: building-related services250Total marketVINCI Construction600200450National market(!bn)150100300VINCI Construction(!m)5015002000 2001 2002 2003 2004E0Source: Euroconstruct June 2003,55th ConferenceVINCI Construction business linesFacilitiesmanagement34% Buildingrelatedservices66%CompetitorsBilfinger & Berger: €5.5 bn (of which €2.5 bn in Germany)Walter Bau: €3.1 bn (of which €2 bn in Germany)Hochtief: €10 bn (of which €1.5 bn in Germany)2003 net sales: €418m11

UK: market and competitionNorwest Holst: a medium size player offering a broad array of know-howNational market(!bn)1209060Total marketVINCI Construction600450300VINCI Construction(!m)3015002000 2001 2002 2003 2004E0Source: Euroconstruct June 2003,55th ConferenceVINCI Construction business linesHydraulicengineering5%Services &misc.12%CompetitorsBalfour Beatty: €4.9 bnAmec: €3.1 bnMowlem: €2.1 bnLaing O’Rourke: €1.8 bnCivilengineering27%Building56%2003 net sales: €718m12

Belgium: market and competitionCFE (45%): one of Belgium’s leading construction companiesDEME: one of the world’s leading dredging companies30Total marketVINCI Construction750National market(!bn)2010600450300VINCI Construction(!m)15002000 2001 2002 2003 2004E0Source: Euroconstruct June 2003,55th ConferenceCFE business linesDredging37%Building23%Besix: €0.7 bnCompetitorsSoficom (Eiffage): €0.4 bnMisc.13%2003 net sales: €793mCivilengineering27%13

Poland: market and competitionWarbud: a growing company in a market with strong potential30Total marketVINCI Construction250National market(!bn)201020015010050VINCI Construction(!m)02000 2001 2002 2003 2004E0Source: Euroconstruct June 2003, 55thConferenceWarbud business linesBuilding94%Civilengineering6%CompetitorsSkanska: €400mStrabag: €300mMitex (Eiffage): €200mHochtief Polska: €100m2003 net sales: €191m14

Hungary: market and competitionHídépítö: a strong growth infrastructure specialistin a very dynamic market30Total marketVINCI Construction250200Nnational market(!bn)201015010050VINCI Construction(!m)02000 2001 2002 2003 2004E0Source: Euroconstruct June 2003,55th ConferenceHídépítö business linesHydraulicengineering3%Building10%CompetitorsStrabag: €400mVegyepszer: €250mCivilengineering87%2003 net sales: €62m15

Czech Republic: market and competitionA targeted presence:FCC: developing building projectsSMP: infrastructure15Total marketVINCI Construction100National market(!bn)10580604020VINCI Construction(!m)02000 2001 2002 2003 2004E0VINCI Construction business linesHydraulicengineering6%Building37%CompetitorsMetrostav: €420mCivilengineering57%2003 net sales: €70m16

VINCI Construction: organisation/valuesA management model that fits the business:organisational structure: responsible, independent profit centresworksites at the heart of the companypeople and companies networkedShared values, in phase with our era:profit cultureindividual empowermentprofessionalisma sense of belonging to a community/loyaltycustomer satisfactionrespect for partnersThe approach:multi-disciplinary (building, hydraulic engineering, civil engineering,related services)presence throughout the value chain (structural work, fit out, design-build,project management, systems integrator, PPP, property development)17

VINCI Construction: competitive positionSignificant market share in four markets:mainland FranceFrench overseas territoriesBelgiumFrench-speaking AfricaGood positions in markets with strong potential:Poland, Hungary, Czech RepublicA good image and leadership positions in three world markets:major infrastructure: VINCI Construction Grands Projetsspecialist business activities: Freyssinet (pre-stressed concrete, cablestaying, reinforced earth, ground improvement)dredging: eme18

Financial statements

Income statement 1/2(in €m)200120022003AveragegrowthH1 03H1 04Δ %Net sales (*)6,8937,3027,668+5%3,7443,955+5.6%EBITDA337395449+15.4%178227+27.4%4.9%5.4%5.9%4.8%5.7%Operating income200213222+5.4%113166+47.4%2.9%2.9%2.9%3%4.2%Financial incomeOperating income afternet financial income152151422720242+6.1%411716182+55.6%EBITDA increased 33% between 2001 and 2003, 27% for 1st half 2004Substantial improvement in operating margins in 2004Growth of operating income after net financial income greater than that ofnet sales(*) After elimination of inter-company transactions20

Income statement 2/2(in €m)Operating income afternet financial income200121520022272003242Averagegrowth+6%H1 03117H1 04182Δ %+56%% of net salesExceptional income/(expense)Tax3.1%(36)(19)3.1%5(42)3.2%7(48)3.2%(10)(21)4.6%(2)(58)+176%Goodwill(15)(41)(11)(6)(5)Minority interests(7)2(12)(4)(5)Net income138151178+13.6%76112+47%% of net sales2%2.1%2.3%2.1%2.8%Almost 30% growth in net income over three yearsProgressing towards net margin of 3% of net sales!21

Construction, a business line that generatesstrong cash flow(in €m)200120022003AveragegrowthH1 03H1 04ΔCash flow from operations298326379+13%142200+58Capital expenditureChange in working capitalrequirementFree cash flowFinancial investmentnet of disposals(210)241120(213)242355(27)(200)1119023+30%(88)(182)(128)(2)(94)(6)100(16)+176+228Dividends paid(23)(91)(109)+118%(25)(38)Exchange rate, consolidationscope and other financialflowsNet cash flow for the period(90)(1)703073714141(114)-46+160Cash at beginning of period689688995+20%9951,136Cash at end of period6889951,136+28%8811,182+30122

Change in cash and equivalents€m1500Continuous improvement in cash and equivalents, with surplusfor past four yearsLimited seasonal variation, reflecting good diversification (business lines,geographical areas)130011009007005002004200320022001300100DecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember23

Consolidated balance sheet at 31 December 2003(in €m)Tangible fixed assets731Shareholders’ equity*624Goodwill75Provisions and other long-termcommitments155Financial and otherfixed assets111Retirement commitments132Net cash and equivalents1,136WCR (incl. provisions foroperating risks)1,142Total assets2,053Total liabilities2,053Negative capital employed (€175m)Very sound financial situationPolicy of cautious provisionsEfficient management of WCR(*) Incl. minority interests: -€99m24

Return on equity(in €m)20022003H1 2003H1 2004Shareholders’ equity at 1 January(excl. minority interests)387442442525Net income15117776112ROE39%40%34%42%Very high and growing return on equity25

Strategy and outlook

Order intake to 31 October 2004(in €m)10 months 2004Change over12 monthsSOGEA ConstructionGTM ConstructionFiliales InternationalesUK – USAGermanyCFEGrands ProjetsFreyssinetTOTAL2,1541,7891,2015835977165353957,970+18.8%+20.7%+73.3%+33.9%+21.4%+8.4%+293.2%+17.5%+30%FrenchnetworksInternationalnetworksSpecialistsubsidiariesExceptional level of orders taken by all divisions… reflecting good commercial positioning in dynamic markets27

Order backlog at new record high(in €m)SOGEA ConstructionGTM ConstructionFiliales InternationalesUK – USAGermanyCFEGrands ProjetsFreyssinetTOTALAt endOctober 20041,9931,8661,2475005229511,1733178,569Change over12 months+20.3%+22.6%+69.7%+52.5%+32.9%-1.6%+7.9%-0.4%+19.2%Months ofactivity11.312.625.68.612.6VINCI Construction’s order backlog gives excellent visibility for 200528

Our strategy: exploit our sources of value creationOne leitmotiv: profit is top prioritythink net margin, not gross marginstrict application of project selection procedureperformance-linked remuneration for managersmargin objective: 5% before taxFor VINCI Construction managers, the quest for profit:is a constant challengeallows objective performance measurementis a way of fighting the individual’s egoa true long-term profit culture shared by allfor the benefit of shareholders29

Our strategy: exploit our sources of value creationExcellence:Focus on productivitypreparation of worksites, factory-type organisation and managementof worksitesaccurate measurement of difference between forecast and adjustedforecastquality, innovation, safety and accident preventionExcellence is a means:of differentiating ourselves from competitorsusing our leadership positionof giving our employees free rein to use their skills and talentsenabling them to give the best of themselves30

Our strategy: exploit our sources of value creationAugmenting the value added:Upstream:Combine design with constructionbetter control of the project and its costsbetter control of property development transactionspropose integrated projects to public customers (PPP)Downstream:Remain on site after construction completed (facilities management)competitive advantage (already there)feedback on structure delivered to customercomplete design-construction package (PPP)Augmenting the value added:is a supplementary goalgives us a better understanding of our environment and helps us adapt to itis a means of protecting our core businessgives us a recurring revenue stream31

Our strategy: exploit our sources of value creationContinued push to intensify geographical coverage of our markets:focus on organic growthtargeted policy of small acquisitionsmainly in France, the UK and Central Europe; on exceptional basiselsewhereIn 2002: acquisition of Crispin & Borst (maintenance/facilitiesmanagement) in the UK:representing net sales of €161 million25 acquisitions in France and Central Europe in 2002–2004:at Sogea (9), GTM (11) and VINCI Construction FilialesInternationales (5)representing total full-year net sales of €130 million32

Zoom on Central EuropeRemain reasonable:the 10 new countries represent less than 5% of the enlarged EU’sbuilding and public works market…. but they are growth markets:housing: strong growth expected in new build sector, but dependent onthe evolution of the credit marketindustrial buildings and offices: steady growth, but watch for cyclesinfrastructure: the most buoyant market in the short term (significantneeds, structural funds from the EU)33

Zoom on Central EuropeProjected trend of international financing for infrastructurem€5 000Poland Hungary Czech Republic Slovakia4 5004 0003 5003 0002 5002 0001 5001 00050002001 2002 2003 2004 2005 2006 2007Source: OBSIC 2004 study on integration of C&EE34

What VINCI Construction contributes to VINCIIts earningsIts cash and equivalentsbut also:New concessions: Rion–Antirion, A19, Comarnic-Predeal, etc.A bridgehead into new countries:Poland, Hungary, Greece, Chile, etc.The “product” made by independent managers, which can be used by otherVINCI divisions;Opportunities for exchanging personnel (production, administration)Good projects shared with other VINCI divisions (Concessions, Energy,Roads)35

Presentation of VINCI Constructionto financial analystsLille, France – 17 December 2004