VINCI - 2008 annual report

Report of the Board of Directors
Eurovia’s operating profi t from ordinary activities was down by 11.8% at €346 million (a 4.2% margin), compared with €392 million in 2007
(a 5.1% margin), due to more diffi cult market conditions in France and a reduction of major site activities.
VINCI Construction’s operating profi t from ordinary activities was €773 million (a 4.9% margin), up 15.6% compared with 2007 (€668 million,
a 4.9% margin).
In addition to the positive eff ects of the acquisitions made in 2007, most of the division’s entities reported improved performances, in particular
outside France.
Following an exceptional 2007, VINCI Construction France again made the greatest contribution to this division, with operating profi t from
ordinary activities of €290 million (a 4.3% margin), up 3.6% compared with 2007 (€280 million, a 4.5% margin).
Operating profi t from ordinary activities by business line / operating profi t
(in € millions) 2008 % revenue (1)
2007
Pro forma % revenue (1)
Change 2008/2007
Pro forma
Concessions 1,966 (2) 41.1% (4) 1,751 38.3% +12.3% (4)
Contracting 1,363 4.8% 1,289 5.0% +5.7%
Energy 245 5.3% 229 5.3% +6.7%
Roads 346 4.2% 392 5.1% –11.8%
Construction 773 4.9% 668 4.9% +15.6%
Miscellaneous and eliminations 48 (3) 76
Operating profi t from ordinary activities 3,378 10.1% (5) 3,118 10.3% +8.3% (5)
Share-based payment expense (104) (118)
Goodwill impairment expense (22) (6)
Share in earnings of companies accounted
for by the equity method
24 17
Operating profi t 3,276 9.8% 3,011 9.9% +8.8%
(1) Excluding concession operating companies’ revenue for the construction of new infrastructure by third parties (in application of IFRIC 12).
(2) Including reversal of non-recurrent provisions at ASF and Escota for €120 million.
(3) Including impairment expense on assets at VINCI Immobilier for €35 million.
(4) 38.6% of revenue and + 5.4% change in non-recurrent items in 2008.
(5) 9.8% of revenue and + 5.6% change in non-recurrent items in 2008.
After taking account of share-based payment expenses (under IFRS 2), goodwill impairment expenses and the share of the profi t or loss of equityaccounted
entities, operating profi t was €3,276 million in 2008, a 9.8% margin, an increase of 8.8% compared with 2007 (€3,011 million) or 6%
excluding non-recurrent items.
Goodwill impairment losses in the year (of €22 million) related mainly to a €20 million write-down of the goodwill in the Euromark group,
acquired by Eurovia at the end of 2007.
The Group’s share of the profi t of associates amounted to €24 million (compared with €17 million in 2007) and related mainly to the concessions
division and to a 40% shareholding in the oil engineering company Doris.
1.4 Net profi t for the year
Consolidated net profi t for 2008 was €1,591 million, up 9.4% compared with the 2007 profi t as restated for the application of IFRIC 12
(€1,455 million).
By business line, the changes refl ect trends seen in operating profi t from ordinary activities (see above).
Net profi t or loss by business line
2007
Change 2008/2007
(in € millions) 2008
Pro forma
Pro forma
Concessions 756 674 +12.2% (*)
Contracting 884 843 +4.8%
Energy 148 142 +4.3%
Roads 209 263 –20.6%
Construction 527 438 +20.2%
Miscellaneous and holding companies (49) (62)
Total
(*) 0.4% excluding non-recurrent items at ASF and Escota (€79 million)
1,591 1,455 +9.4%
The cost of net fi nancial debt was up, at €863 million (compared with €811 million in 2007), due to the level of debt (refl ecting the eff ect of
the debt of acquisitions made in 2007) and the increase in interest rates. This impact was however able to be limited by the Group’s debt
hedging policy.
98 VINCI __ 2008 ANNUAL REPORT