VINCI - 2005 annual report

REPORT OF THE BOARD
OF DIRECTORS
A. REPORT ON THE FINANCIAL STATEMENTS
FOR THE YEAR
Note: the 2005 consolidated fi nancial statements have been prepared for the fi rst time in accordance with IFRS. For purposes of comparison, the 2004 fi nancial statements have been
restated under the same standards.
1. CONSOLIDATED FINANCIAL STATEMENTS
The good trends seen in 2004 continued in 2005: business in the various
segments of the construction sector was very buoyant in France in most
regions; the infrastructure market in the new EU Member states in Central
and Eastern Europe grew strongly and; many Public-Private Partnerships
were being studied in many European countries, particularly in France.
1.1 REVENUE
VINCI’s 2005 consolidated revenue amounted to €21.54 billion, a 10.4%
increase against 2004 (€19.5 billion).
Whereas in recent years the growth in VINCI’s activities was driven by the
French market, this year activity increased in a comparable manner in
France and abroad. In particular, the Roads and Construction business lines
reported strong growth both in France and abroad.
This good trend was mainly due to organic growth, the positive effects of
changes in consolidation scope and currency fl uctuations accounting for
only 2%. New acquisitions (in 2005 and those of 2004 for a full year)
contributed an extra €380 million of revenue, which was partially offset
by that of entities disposed of (€105 million).
In France, revenue increased by 9.7% to €13.3 billion (8.5% on a likefor-like
basis).
Outside France, revenue increased by 11.5% to €8.25 billion (8.5% on
a like-for-like basis) and accounted for 38% of the total activity.
ASF, in which VINCI had a 23% holding at 31 December 2005, is accounted for in the
Group’s consolidated fi nancial statements using the equity method. In consequence, its revenue,
which amounted to €2.5 billion in 2005, is not included in VINCI’s consolidated revenue
for this period.
Concessions: €2,055 million (+5.8% actual scope; +3% like-for-like)
Cofi route’s revenue increased by 3.2% to €900 million. This trend refl ects
the increase in toll receipts, which benefi ted from the combination of a
0.9% increase in traffi c (of which 0.1% is accounted for by the satisfactory
start of operations on the Ecommoy-Tours section of the A28, which
entered service on 14 December 2005) and prices changes for 2.2%.
Following a fi rst half year that was marked by the adverse effects of the
calendar – 2004 was a leap year, Whit Monday was a working day in 2005
176
VINCI 2005 ANNUAL REPORT
Following an excellent year in 2004, for VINCI, this favourable environment
resulted in a new increase in orders taken in all its businesses, with
order books continuing to be renewed on good terms.
Overall, the Group’s activities increased by more than 10%, beating the
initial forecasts. This was accompanied by a further improvement in
operating margins.
– light vehicle traffi c has shown a favourable trend from the summer
onwards, ending the year with a 0.8% increase over the full twelve
months. Heavy vehicle traffi c increased regularly over the whole year,
by 1.2%.
VINCI Park’s revenue was €494 million, a 1.8% increase. This refl ects the
effects of organic growth in France (+0.9%) and a more sustained increase
abroad (+4.2%), in particular due to new acquisitions.
Revenue from other infrastructure assets under concession was strongly
up, by 29%, at €161 million. This includes €41 million from a full year’s
operation of the Charilaos Trikoupis Bridge (Rion-Antirion) in Greece,
which was opened in August 2004.
Airport services booked revenue of €505 million, the 8% increase being
accounted for mainly by the inclusion of France Handling, acquired during
the year. At constant consolidation scope and exchange rates, revenue fell
2% despite a good level of activity in cargo services, as a result of the
measures taken to reduce the activity in the USA.
Energy: €3,508 million (+5.1% actual; +3.8% like-for-like)
In France, VINCI Energies’ revenue was €2.6 billion, an increase of 6.5%
(6.6% like-for-like).
Activity was particularly dynamic in the telecommunications infrastructure
sector, which benefi ted from telephone operators’ capital expenditure, in
the energy transport infrastructure sector and in the services sector
(commercial property).