VINCI - 2008 annual report

Revenue by business line
(in € millions)
2008
2007
Pro forma
Change 2008/2007 Pro forma
Actual basis
Concessions 5,794 5,693 +1.8%
Revenue from tolls and other services 4,781 4,574 +4.5%
Construction of new infrastructure assets 1,013 1,119 –9.5%
Contracting 28,520 25,660 +11.1%
Energy 4,614 4,301 +7.3%
Roads 8,183 7,706 +6.2%
Construction 15,722 13,653 +15.2%
Miscellaneous and eliminations (384) (479)
Total 33,930 30,874 +9.9%
Excluding IFRIC 12 construction revenue realised by third parties 33,458 30,338 +10.3%
Revenue by geographic area
(in € millions) 2008 % revenue
2007
Pro forma
Change
on an actual basis
Change at constant
exchange rates
France 21 358 (*) 63% 20 132 (*) +6.1% +6.1%
United Kingdom 2,279 7% 2,045 +11.5% +30.7%
Germany 1,763 5% 1,641 +7.4% +7.4%
Central and Eastern Europe 2,469 7% 2,308 +7.0% +1.1%
Belgium 1,001 3% 826 +21.2% +21.2%
Spain 459 1% 362 +26.8% +26.8%
Other European countries 1,036 4% 889 +16.5% +16.3%
Europe excluding France 9,007 26% 8,071 +11.6% +13.9%
North and South America 1,208 4% 982 +23.0% +31.7%
Africa 1,204 4% 859 +40.2% +41.4%
Middle East and rest of the world 1,153 3% 830 +38.9% +45.6%
Total 33,930 100% 30,874 +9.9% +10.9%
(*) Including concession operating subsidiaries’ construction revenue realised with third parties
1.3 Operating profi t from ordinary activities / operating profi t
Report of the Board of Directors
Operating profi t from ordinary activities (1) for the year was €3,378 million, up 8.3% compared with 2007 (€3,118 million after application of
IFRIC 12).
This is a 10.1% margin, compared with 10.3% in 2007.
After adjusting for exceptional items, amounting to a net gain of €85 million in 2008 (comprising the reversal for €120 million of provisions for
employment benefi ts at ASF and Escota and impairment losses of €35 million on real estate inventory at VINCI), the increase in operating profi t
from ordinary activities was 5.6%.
VINCI Concessions was the main contributor to Group operating profi t from ordinary activities (accounting for 58% of the total), with operating
profi t from ordinary activities of €1,966 million (compared with €1,751 million in 2007).
This was an overall increase of 12.3%, a result mainly of the increase in motorway operating companies’ revenue, which remained positive despite
the fall in traffi c on a stable network basis over the year, and good control of operating expenses. Operating profi t from ordinary activities includes
a reversal of provisions for €120 million following the re-estimate of some employee benefi ts (see Note 20.2 to the consolidated fi nancial statements).
Excluding this non-recurrent item, VINCI Concessions’ operating profi t from ordinary activities increased by 5.4%.
Operating profi t from ordinary activities for the three motorway companies (Cofi route, ASF and Escota) increased by 15.1% (or by 7.5% excluding
non-recurrent item) to €1,807 million (a margin of 42.5% excluding construction revenue and non-recurrent item), compared with €1,570 million
in 2007.
Operating profi t from ordinary activities of VINCI Park was down slightly, by 2.8%, at €126 million, compared with €130 million in 2007 which
included exceptional income on international operations of €5 million.
Lastly, operating profi t from ordinary activities from other concessions fell by 20% from €58.7 million in 2007 to €47.2 million, due to unfavourable
exchange rate fl uctuations and impairment losses on under-performing assets.
VINCI Energies recorded an increase of nearly 7% in operating profi t from ordinary activities to €245 million in 2008 compared with €229 million
in 2007, with the margin remaining stable at 5.3%.
This trend is the result of a marked increase in the operating profi t from ordinary activities of foreign subsidiaries, related in particular to consolidation
over a full year of the Swiss group Etavis, acquired in July 2007.
In France, operating profi t from ordinary activities remained stable overall at €158 million (compared with €159 million in 2007) despite the
impact of provisions charges on several major sites in the start-up phase.
(1) Operating profi t from ordinary activities is the profi t from operations before share-based payment expenses (IFRS 2), goodwill impairment expenses and the Group’s share of profi t or loss of
equity-accounted entities
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