Results for the semester ended 30 June 2014 Financial analysts - PowerPoint PPT Presentation

Results for the semester ended 30 June 2014 Financial analysts’ meeting, 27 August 2014

SEMESTER HIGHLIGHTS Pierre Berger – Chairman and Chief Executive Officer

EIFFAGE 1 st HALF 2014 – HIGHLIGHTS Group debt ‐ Down by €M 595 over 1 year (and €M 1,132 over 3 years) Major Projects ‐ Progress in line with expectations Property development ‐ Satisfactory performance with 1,661 bookings of housing units International ‐ Increase in order intake 3

EIFFAGE 1 st HALF 2014 – HIGHLIGHTS Orders Intake Back up engines – EDF CESTAS – NEOEN €M 548 (Eiffage share 44%) €M 284 (Eiffage share 75%) Ligne 14 – RATP Lyon Turin Ferroviaire A9 – ASF €M 230 (Eiffage share 55%) €M 390 (Eiffage share 30 %) €M 134 (Eiffage share 100%) 4

EIFFAGE 1 st HALF 2014 – HIGHLIGHTS APRR/AREA ‐ Ebitda at the historically high level of 71 % ‐ Finalisation of the stimulus package expected by year end ‐ Refinancing of Eiffarie brought forward by 2 years Objective of a significant bank debt margin reduction PPP and other concessions ‐ Very good portfolio rotation ‐ Improvement of profitability (ramp up) A65 / Autoroute de l’Avenir in Sénégal / Pierre Mauroy Stadium 5

EIFFAGE 1 st HALF 2014 Revenue €M Operating profit €M Net profit €M ‐ 0.2 % 556 +7.3 % 68 6,616 6,606 +17.2 % 58 518 6,527 499 6,511 51 451 43 H1 2011 H1 2012 H1 2013 H1 2014 H1 2011 H1 2012 H1 2013 H1 2014 H1 2011 H1 2012 H1 2013 H1 2014 Change in WCR €M Financial net debt €M Order book €M 13,767 13,230 H1 2011 H1 2012 H1 2013 H1 2014 12,949 ‐ €M 595 ‐ €M 208 12,635 ‐ 1.5 % 13.5 12.5 12.3 11.3 ‐ 290 ‐ 396 ‐ 431 H1 2011 H1 2012 H1 2013 H1 2014 H1 2011 H1 2012 H1 2013 H1 2014 ‐ 639 Profit growth ‐ Group net debt reduction ‐ High level of the order book 6

EIFFAGE 1 st HALF 2014 – OUTLOOK Eiffage : Outlook for 2014  Slight increase in revenues  Increase in operating and net profit  Decrease of Group net debt 7

RESULTS BY BUSINESS SEGMENT AND FINANCIAL RESULTS Christian Cassayre – Chief Financial Officer

REVENUE (excluding IFRIC 12) BREAKDOWN CONCESSIONS / CONTRACTING (€M) BREAKDOWN BY GEOGRAPHICAL AREA (€M) 6,527 6,511 ‐ 0.2% 6,527 6,511 ‐ 0.2% 129 108 ‐ 16.3% 1,074 1,115 +3.8% 844 979 +16.0% 5,453 5,396 ‐ 1.0% 5,554 5,424 ‐ 2.3% ∆ 14/13 H1 2013 H1 2014 H1 2013 H1 2014 ∆ 14/13 International excluding Europe Concessions Europe excluding France Contracting France 10

CONTRACTING REVENUE (excluding IFRIC 12) BREAKDOWN BY BRANCH (€M) CONTRACTING BREAKDOWN BY GEOGRAPHICAL AREA (€M) AND % OF TOTAL 5,453 5,396 ‐ 1,0% 5,453 5,396 ‐ 1,0% 127 (2%) 99 (2%) ‐ 22.0% 1,696 844 +4.4% 1,770 979 +16.0% (16%) (18%) 1,806 1,787 ‐ 1.1% 4,482 4,318 ‐ 3.7% (80%) (82%) ‐ 8.5% 1,550 1,418 +5.0% 401 421 H1 2013 H1 2014 ∆ 14/13 H1 2013 H1 2014 ∆ 14/13 Construction International excluding Europe Public Works Europe excluding France Energy France Metal 11

OPERATING PROFIT ON ORDINARY ACTIVITIES AND MARGINS Growth of profit on ordinary activities up 7,3% at €M 556 and margin increase by 60 bps to 8.5% of revenue H1 2013 €M (% of revenue) H1 2014 €M (% of revenue) ∆ 14/13 Construction 71 (4.2%) 70 (4.0%) ‐ 1.4% Public Works ‐ 39 ( ‐ 2.2%) +7.7% ‐ 36 ( ‐ 2.0%) CONTRACTING CONTRACTING CONTRACTING 89 (1.6%) 92 (1.7 %) +4.5% Energy 43 (2.8%) 45 (3.2%) +4.7% Metal 14 (3.5%) 12 (2.8%) ‐ 14.3% Concessions 442 (41.2%) 476 (42.7%) +7.7% Holding ‐ 12 ‐ 12 Operating profit on 518 (7.9%) 556 (8.5%) +7.3% ordinary activities 12

BREAKDOWN OF MARGINS Increase of the Group operating margin of 60bps Total 8.5% 7.9% 7.5% 6.8% 6.4% H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 Concessions Contracting 42.7% 41.2% 41.6% 1.7% 1.7% 38.1% 1.6% 1.6% 1.5% 35.5% H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 13

CONSTRUCTION: ACTIVITY AND RESULTS Upholding of the operating margin at the high level of 4.0% of revenue slightly down by 20bps in an increasingly competitive environment REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES  Revenue up 4.4% (+4.5% lfl) 1,872 1,840 – Activity in France, up 5.0% at €M 1,435 1,778 1,770 1,696 – Increase in revenue in Europe of 1.8% at €M 335, particularly dynamic in Poland 4.3% 4.3% 4.3% 4.2% 4.0% – Good activity in property development with reservations of 1,661 units vs 1,800 at the end of June 2013 (record semester) and 1,229 at the end of June 2012 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014  Stable margin at a high level despite the lower activity – Tight control of overhead costs BREAKDOWN OF REVENUE H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 – Prudence and selectivity in contract selection WORKS 90% 85% 86% 85% 84% PROPERTY 10% 15% 14% 15% 16% 14

15 Majunga Tower, La Défense

PUBLIC WORKS: ACTIVITY AND RESULTS Increase of the operating margin up 20bps at ‐ 2.0% of revenue in uncertain environment of public orders REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES  Revenue down 1.1% ( ‐ 1.1% lfl) – France: activity down 0.7% at €M 1,511 1,819 1,806 1,796 1,787 1,764 – Europe: activity up 3.8% at €M 221. Increase of 10.3% in Germany, but continued weakness of the public orders in ‐ 1.7% Spain ‐ 2.0% ‐ 2.2% ‐ 2.3%  Recovery of profitability ‐ 2.7% – Ongoing deployment of a productivity improvement plan – Prudence and selectivity in contract selection H1 2010 H1 2011 H1 2012 H1 2013 H1 2014  Major Projects – Bretagne ‐ Pays de la Loire : progress in line with expectations – Renewal of the order book 16

17 HSL Bretagne-Pays de la Loire

ENERGY: ACTIVITY AND RESULTS Ongoing recovery of the operating margin up 40 bps at 3.2% of revenue REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES  Revenue down 8.5% ( ‐ 7.5% lfl) – In France, decline in revenue of 10.8% to €M 1,131 in first 1,541 1,542 1,550 1,526 half but noticeable increase in order intakes 1,418 – Increase in Europe of 3.1% thanks to the sharp recovery of 3.2% private purchasing in Spain 2.8% 2.7% 2.4% 2.3%  Increased operating margin – Ongoing recovery H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 – Prudence and selectivity in contract selection particularly in under performing regions 18

19 Optic fiber, Cantal

METAL: ACTIVITY AND RESULTS Decrease of the operating margin by 70bps 2.8% of revenue  Revenue up 5.0% ( ‐ 20.2% lfl) REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES – In France, decrease of revenue by 26.2% to €M 240 with 427 421 401 380 the completion of some major projects 366 3.5% 3.3% – In Europe, the revenue reaches €M 160 vs €M 47 the first 2.8% 2.7% half of 2013, largely due to the acquisition of the Smulders Group and good activity in Germany 0.8%  Successful integration of the Smulders Group H1 2010 H1 2011 H1 2012 H1 2013 H1 2014  Prudence and selectivity in contract selection 20

21 Wind, Smulders

APRR: ACTIVITY AND RESULTS Increase of the EBIDTA margin of 60bps to the historically high level of 71.0% of revenue REVENUE (€M) – EBITDA MARGIN  Toll receipts up 2.8% as a result of the traffic improvement 1,029 1,001 983 973 931 and the February 2014 tariff increase 71.0% – Total traffic up 2.0 % (LV +1.9%, HGV +2.2%) 70.6% 70.4%  Operating margin up thanks to the ongoing optimisation of 69.0% the structures and productivity gains in the core operations 67.7%  Ongoing progress of toll automation: – 95.1% automatic transactions (53.6% via electronic tolling) H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 – 1.6 million electronic tolling badges APRR and REVENUE MIX TRAFFIC TOLL RECEIPTS AREA (+ 15.9%) HGV HGV Other  Development of customer service initiatives 35 % 3 % 16 %  Starting of the implementation of 2014 ‐ 2018 management contracts LV Tolls LV 65 % 97 % 84 % 22

23 APRR

CONCESSIONS: ACTIVITY AND RESULTS Increase of the operating margin by 150bps to the historically high level of 42.7% of revenue  Revenue up 3.8% (+3.4% lfl) REVENUE (€M) ‐ OPERATING MARGIN ON ORDINARY ACTIVITIES – Motorways concessions (exc APRR) with revenue up 29.5% 1,115 1,074 1,043 1,032 to €M 47.9 952 Motorways Revenue LV traffic HGV traffic 42.7% A65 €M 23.5 +5.6% +70.6% 41.6% 41.2% up 14.6% Millau Viaduc €M 15.8 +2.3% +12.9% 38.1% up 9.0% 35.5% Autoroute de €M 8.6 l’Avenir (Senegal) H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 – Pierre Mauroy Stadium for revenue of €M 10.6 (+12%) – Other concessions and PPPs for revenue of €M 28 (+8%)  Operating margin up 7.7% at €M 476 – APRR / Eiffarie up 6.3% at €M 423 – Other concessions and PPPs up 20.5% at €M 53 24

25 University, Aix-en-Provence

CONSOLIDATED INCOME STATEMENT Growth in operating profit of 7.3% and in net result of 17.2% in millions euros H1 2013 H1 2014 Δ 14/13 Revenue (1) 6,527 6,511 ‐ 0.2% Operating profit on ordinary activities 518 556 +7.3% (7.9%) (8.5%) (% of revenue) Other operating income and expenses (29) (28) Operating income 488 528 +8.2% Cost of net debt (350) (373) o/w Concessions 367 o/w Concessions 348 Other financial income and expenses (12) (15) Net financial expenses (362) (388) ‐ 7.2% Share of profit of associates 3 (4) Income tax (45) (40) Net profit 84 96 +14.3% Minority interests 26 27 Net profit (group share) 58 68 +17.2% (1) Exc IFRIC 12 26