VINCI - 2008 annual report

1.8 Return on capital
Defi nitions
– Return on Equity (ROE) is the net profi t for the current period attributable to equity holders of the parent company divided by equity excluding
minority interest at the previous year end;
– NOPAT (Net Operating Profi t After Tax) is the operating profi t from ordinary activities, after restating for various items (share in the profi t or loss
of equity-accounted entities, and dividends received and some other fi nancial items) less the theoretical tax expense;
– ROCE (Return on Capital Employed) is the NOPAT divided by the average capital employed at the opening and closing balance sheet dates for
the year under consideration.
Return on equity (ROE)
The Group’s ROE was 21.1% in respect of 2008, a marked improvement compared with the previous period restated on a pro forma basis
(18.8%).
(in € millions) 2008
2007
Pro forma
Shareholders’ equity at previous year-end 7,536 7,738
Net profi t for the year 1,591 1,455
ROE 21.1% 18.8%
Return on capital employed (ROCE)
The ROCE has improved compared with 2007, due in particular to the increase in NOPAT (up 7.2% at €2,363 million), which benefi ted from the
improved operating results in VINCI’s various divisions.
The performance realised must be assessed taking account of the major investments made by VINCI Concessions in projects under construction,
which do not generate a return until they are in service.
These projects in progress account for capital employed of €3.4 billion on average in 2008 and €2.8 million on average in 2007.
(in € millions) 2008
2007
Pro forma
Capital employed at previous year-end 25,527 24,296
Capital employed at this year-end 25,628 25,527
Average capital employed 25,577 24,911
Operating profi t from ordinary activities 3,378 3,118
Other items (*) 39 31
Theoretical tax charge (**) (1,054) (953)
NOPAT 2,363 2,195
ROCE 9.2% 8.8%
(*) Group’s share of results of equity-accounted companies, dividends received and, if appropriate, other fi nancial items (excluding fi nancing costs, depreciation, amortisation and provisions, foreign exchange
gains and losses, disposal gains and losses, capitalised borrowing costs, and cost of discounting retirement benefi t obligations)
(**) On the basis of the eff ective rate for the period by business line (31.2% in 2008; 30.6% in 2007)
2. Parent company financial statements
VINCI’s separate fi nancial statements show revenue of €23.9 million, compared with €24.8 million at 31 December 2007, mainly comprising
services invoiced to subsidiaries.
The parent company’s net result for the year was a loss of €99 million in 2008, compared with a profi t of €4,513 million in 2007, which included
in particular income from an exceptional dividend paid by ASF.
Following this exceptional distribution and a re-estimate of the holding company’s 77% shareholding in ASF, an impairment loss of €1,158 million
has been recognised in the parent company’s 2008 fi nancial statements.
Expenses referred to in Article 39.4 of the French General Tax Code amounted to €83,437 in 2008.
Report of the Board of Directors
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