VINCI - 2005 annual report

1.5 OTHER CASH FLOWS
After taking account of the change in working capital requirement (an
increase of €120 million against an increase of €370 million in 2004),
the cost of fi nancing and taxes paid, cash flows from operating activities
amounted to €1,676 million, a decrease of €168 million from the previous
year.
When the increase in investments in operating assets required by the
growth in activities (€604 million in 2005 against €476 million in 2004)
is taken into account, free operating cash flow, before growth investments,
amounted to €1,072 million (€1,368 million in 2004).
Growth investments in concessions increased by 43%, or €243 million,
to €811 million. This was mainly the result of the acceleration of the pace
of Cofi route’s capital expenditure (€736 million in 2005, €454 million
in 2004).
Financial investments (excluding share buy-backs) totalled €191 million
(€442 million in 2004). The main acquisitions in 2005 related to TE Beach
(€24 million) and France Handling (€35 million).
Share disposals amounted to €105 million. These related mainly to the
sale of the Group’s minority shareholdings in airport operations: airports
in Northern Mexico (SETA) for €18 million and Beijing (BCIA) for
€40 million.
1.6. BALANCE SHEET
VINCI’s net financial debt was €1.6 billion at 31 December 2005, an
improvement of €854 million compared with the previous year despite
the increase in Concession subsidiaries’ debt, from €3.3 billion to
€3.8 billion, which was mainly attributable to the increase in Cofi route’s
capital expenditure. The other business lines showed a net cash surplus
Net fi nancial (debt) / surplus
180
VINCI 2005 ANNUAL REPORT
Free cash flow after financing growth was therefore €289 million, against
€574 million in 2004.
Financing activities in the period affecting the net fi nancial debt accounted
for a net cash infl ow of €565 million.
This takes account of dividends paid by the parent company for
€390 million (comprising the fi nal 2004 dividend of €1.15 per share and
the 2005 interim dividend of €0.7 per share) and the dividends paid by
subsidiaries to minority shareholders (mainly in Cofi route).
Cash fl ow also included changes in share capital: share buy-backs (a cash
outfl ow of €370 million for the purchase of 6.3 million shares at an
average price of €58.7 per share) and the issue of 8.9 million new shares
(a cash infl ow of €270 million). These activities gave rise to a net outfl ow
of €100 million for the year.
Lastly, the early conversion of the 2001-2007 and 2002-2018 OCEANE
bonds generated an increase in equity of €1,096 million, which was offset
by an equivalent amount to redeem the loan.
of €2.8 billion, up by nearly €200 million against 2004. Holding
companies reduced their debt by nearly €1.2 billion, mainly as a result
of the conversion of the OCEANE bonds.
(in € millions) 2005 2004 Change 2005/2004
Cofi route (2,544) (1,989) (555)
VINCI Park (391) (487) + 96
Other concessions (703) (674) (29)
Airport services (190) (129) (61)
Concessions and services (excl. holdings) (3,828) (3,279) (549)
Energy, Roads, Construction 2,760 2,572 + +188
Investment in ASF (1,483) (1,483) —
Holding companies and property 972 (243) + +1,215
Net fi nancial debt (1,579) (2,433) + 854