VINCI - 2005 annual report

1.3 NET PROFIT
Net profi t attributable to equity holders of the parent was €871 million
for the period, up 19% against 2004 (€732 million). Earnings per share
rose 11.5% to €5.08 from €4.56 in 2004, while diluted earnings per share
rose 11% to €4.46, compared with €4.02 in 2004. VINCI Concessions
was the business line that made the biggest contribution to the Group’s
Net profi t by business line
income, ahead of VINCI Construction. Both divisions recorded signifi cant
growth in earnings. VINCI Energies and Eurovia also improved their
contributions. In 2004, the holding companies’ net profi t included income
of €62 million net of tax from the equity swap relating to ASF, mentioned
previously.
(in € millions) 2005 2004 Change 2005/2004
Concessions and services 336 233 + +44.6%
Energy 106 95 + +11%
Roads 159 139 + +14.2%
Construction 323 248 + +30.1%
Property 21 17 + +23.9%
Holding companies (74) —
Total 871 732 + 19.1%
Net financial expenses were €158 million against €242 million in 2004.
This decrease is the result of the improvement in operating cash fl ows
in most operating entities, except for Cofi route, which continued to
carry out its major investment programme. It also takes account of a
better return on cash surpluses invested by the holding company and
the positive effects of a change in the estimated maturity of the 2002-
2018 OCEANE bond.
Other financial income and expenses amounted to €52 million, against
€238 million in 2004. The 2004 fi gure included both exceptional
income of €96 million arising on the unwinding of an equity swap
relating to approximately 4% of the share capital of ASF, and the dividend
received from ASF for €32 million.
This item also includes capitalised borrowing costs related to concession
operating companies’ capital expenditure programmes in progress (€63
million against €77 million in 2004), the impact of discounting retirement
obligations to present value (an expense of €28 million against
1.4 CASH FLOWS FROM OPERATIONS (1)
Cash fl ow from operations came to €2,150 million in 2005, up 6.5%
from 2004. This fi gure included €96 million from the unwinding of the
equity swap on ASF. If we strip out this non-recurring item, the rise came
Cash fl ows by business line
an expense of €24 million in 2004) and of asset disposals (€24 million
in 2005).
The tax expense was €462 million (€380 million in 2004). This
corresponds to an effective tax rate of 31.6%, which is higher than the
29.6% in 2004 because of the larger contribution in 2005 made by
French subsidiaries, which overall are more heavily taxed than foreign
subsidiaries.
The Group’s share of the profit or loss accounted for by the equity
method was €87 million, strongly up against 2004 (€14 million)
because of the impact of equity-accounting ASF for a full year, for
€77 million.
Minority interest of €132 million essentially represents shares not
owned by VINCI in Cofi route (34.7%) and in the Belgian construction
company CFE (54.6%).
to 12%. VINCI Construction and VINCI Concessions were the main drivers
of this growth in cash fl ow from operations.
(in € millions) 2005 % revenue 2004 % revenue Change 2005/2004
Concessions and services 857 41.5% 791 40.7% + +8,4%
Energy 215 6.4% 221 6.6% (2.7%)
Roads 379 6.2% 368 6.4% + +3%
Construction 656 6.9% 516 6.2% + +27.1%
Property 34 8.4% 29 6.7% +19.8%
Holding companies 9 93
Total 2,150 10% 2,018 10.3% + 6.5%
(1) Before fi nancing costs and tax.
REPORT OF THE BOARD
179