VINCI - 2005 annual report

1.2 OPERATING PROFIT FROM ORDINARY ACTIVITIES / OPERATING PROFIT
Operating profi t from ordinary activities is the operating profi t before sharebased
payment expenses (IFRS 2), goodwill impairment losses and any
material non-recurring items.
Operating profi t from ordinary activities was €1,568 million in 2005, an
increase of nearly 21% against 2004. The operating margin was 7.3% against
6.7% in 2004. All business lines, but especially Construction, contributed
to this new increase in operating profi tability.
Concessions
Operating profi t for the Concessions business line rose to €633 million
from €580 million in 2004 and accounted for 40% of the Group’s total
operating profi t. Cofi route’s operating profi t rose by 1.4% to €469 million.
At VINCI Park, operating profi t increased by 8.3% to €127 million. The
other infrastructure concessions contributed €55 million in 2005, an
increase of €25 million over the year. This fi gure includes the impact of a
full year’s operation of the Charilaos Trikoupis Bridge (Rion-Antirion) which
entered service in August 2004, for €17 million.
The contribution from airport services improved this year by €9 million
and is now positive, following 2004 which was marked by continuing
restructuring measures in the USA.
Energy
VINCI Energies’ operating profi t from ordinary activities was €178 million,
up 8.5% against the previous year. This is a 5.1% margin, compared with
4.9% in 2004. The continuing high earnings reported by the French
subsidiaries should be underlined, as should the good performances by
European operations especially those in Germany. TMS’s operating loss has
been strongly reduced, to €10 million, as a result of the restructuring
undertaken.
(in € millions) 2005 % revenue 2004 % revenue Chang 2005/2004
Concessions and services 633 30.8% 580 29.8 29.8% +9.1%
Energy 178 5.1% 164 4.9 4.9% +8.5%
Roads 235 3.6% 218 3.8 3.8% +8.2%
Construction 460 4.9% 323 3.9 3.9% +42.5%
Property 33 8.2% 27 6.3 6.3% +23.6%
Holding companies 29 (12)
Operating profi t from ordinary activities 1,568 7.3% 1,300 6.7 % + 20.6%
Share-based payment expenses (71) (36)
Goodwill impairment expense (13) (46)
Non-recurring items — (10)
Operating profi t 1,484 6.9% 1,208 6.2 % + 22.9%
178
VINCI 2005 ANNUAL REPORT
Roads
Eurovia’s operating profi t from ordinary activities was €235 million, an
8.2% increase, with an operating margin of 3.6% (against 3.8% in 2004).
This margin was affected by the increase in energy costs. In France, the profi t
trend is in line with the increase in activity levels, with operating margins
remaining at a satisfactory level. Outside France, the situation is more varied.
Business is good in the UK and the Czech Republic, conditions are improving
in Germany, and recovery is under way in Spain and the USA.
Construction
VINCI Construction saw its operating profi t from ordinary activities increase
strongly to €460 million, up 42.5%. The operating margin was 4.9%, against
3.9% in 2004. These excellent results refl ect the further very marked
improvement in the performance of the French subsidiaries Sogea Construction
and GTM Construction and of most of the Division’s other units
(subsidiaries in France’s overseas territories and foreign countries, major
projects and Freyssinet’s specialised business lines).
Property
VINCI Immobilier made a contribution to operating profi t from ordinary
activities of €33 million (compared with €27 million in 2004).
Operating profi t from ordinary activities by business line / Operating profi t
After taking account of the expenses related to share-based payments and
goodwill impairment, for a total of €84 million, operating profi t was
€1,484 million in 2005, 6.9% of revenue and up 22.9% against 2004.