INFORMATION MEETING PARIS - FEBRUARY 20, 2020 - Colas
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
INFORMATION MEETING PARIS – FEBRUARY 20, 2020 United States – Haines Highway in Alaska
NEW GOVERNANCE → May 14: separation of the functions of Chairman and Chief Executive Officer → May 14: Frédéric Gardès, Chief Executive Officer → October 1: Olivier Roussat, Chairman of the Board of Directors
FILM 2019
CONTENTS
1. THE YEAR 2019
2. ACTIVITY BY BUSINESS SEGMENT
3. FINANCIAL STATEMENTS
4. STRATEGY & OUTLOOK 2020
France – Repaving Route 908 in France
CONSOLIDATED REVENUE
in billions of €
13.7
+4% (a)
13.2
12.0 11.7
11.0
2015 2016 2017 2018 2019
(a) +5% at constant scope and exchange rates
Business boosted by growth in Roads in Mainland France and at Colas Rail,
offsetting the impact of the disposal of Smac
5
BREAKDOWN OF REVENUE
/ by Geographic zone / / by Business segment /
France 48%
Road Construction
72%
Rest of Sales of
Construction
the World Materials
North America
8% 18%
26%
Europe Railways and other Activities 10%
(excl. France) Railways Waterproofing (Smac) 1%
8%
18% (Colas Rail) Water & Energy Transport (Spac)
1%
Continued headway for the international units which now represent 52% of the Group’s total
revenue and an increase in sales of materials that is higher than the increase in road construction
6
CURRENT OPERATING PROFIT (1/2)
IFRS 16
in millions of €
+60
433
386 362 373
344 3.2%
3.5% 2.8%
2.9% 3.1%
2015 2016 2017 2018 2019
Current operating margin improved by 0.4 points compared to 2018
7
CURRENT OPERATING PROFIT (2/2)
Change
IFRS 16 – in millions of € 2018 2019 2019/2018
Roads 410 421 +11
Railways and other Activities (33) (1) +32
Parent company (4) 13 +17
Total 373 433 +60
Roads in Mainland France performed well, profitability improved in North
America and Colas Rail has returned to breakeven
8
MAJOR CONTRACTS SIGNED IN 2019
UNITED KINGDOM BELGIUM
▪ Works on railway tracks - section 1 CP6 (2019-2024) (€553 M)
▪ PPP Liège Tramway (€266 M)
▪ Freight contract over a 5-year period (€79 M)
CANADA ▪ Multi-year rail grinding contract (€60 M) FRANCE
▪ Upgrading and widening of a section of ▪ Sections 3 and 4 of the widening of the
Highway 401 in Ontario (€119 M) Highway A10 in Touraine (€88 M)
▪ Maintenance on the Kennedy area road
network in Ontario (€53 M) SWITZERLAND
▪ Extension of Geneva Tramway (€75 M)
UNITED STATES
▪ Taxiway at the Los Angeles International ITALY
airport in California (€75 M) ▪ Catenary renovation - Milan / Verona and
Turin / Genoa (€44 M)
POLAND
FRENCH GUIANA
▪ Renovation of a section of the E59
▪ Partnership contract for the Cayenne Bus
railway line (€43 M)
Rapid Transport system (€180 M)
CZECH REPUBLIC
BENIN ▪ Section of Motorway D3 in South
▪ Redevelopment of Boulevard de la Marina Bohemia (€79 M)
in Cotonou (€32 M) ▪ New BMW proving ground, section 1
(€128 M)
MOROCCO MAURITIUS REUNION ISLAND HUNGARY
▪ Tan-Tan expressway (€27 M) ▪ Building – Victoria Urban Terminal ▪ Design and construction of a recycling ▪ Section of Motorway M4 (€107 M)
(€24 M) unit in Saint Pierre (€24 M)
9
DISPOSALS / ACQUISITIONS
▪ Sale of Smac to OpenGate Capital investment fund
• agreement signed on February 14, 2019
• finalized on May 20, 2019
▪ Acquisitions
• Skanska road assets in Poland (11 asphalt mix plants)
• Asfalcura in Chile (asphalt mix, road works and bitumen distribution)
Refocus on core business activities and first footsteps in the Roads segment in Latin America
10CORPORATE SOCIAL RESPONSIBILTY (CSR)
▪ 2019: work on redesigning the CSR policy
• Rewriting business model
• Building a materiality grid
• Stakeholder consultation through participatory platforms
▪ 6 themes:
• Sustainable development governance
• Value chain and innovation
• Human capital
• Ethics and human rights
• Environment and carbon
• Local networks and adaptation to communities
▪ 2020: communication on new CSR policy with measurable commitments
11CONTINUED FOCUS ON INNOVATION
▪ Innovations
• Marketing launch in France of Wattway Pack, an autonomous
energy solution for roadside equipment
• Signature of a contract with the Eure-et-Loir Département in France
to provide ANAIS digital services for preventive road asset
management
• Signature of an agreement with Sidewalk Labs, a subsidiary of
Alphabet (Google's parent company), for a trial with Flowell as part
of the Quayside project in Toronto, Canada
▪ Awards
• Silver BIM 2019, "Infrastructure" category, for the upgrading of the
Lavandes Roundabout near the Marseille-Provence airport in France
• Road Safety Innovation Trophy awarded to ANAIS by the French
Interministerial Delegation for Road Safety
132.
ACTIVITY BY
BUSINESS
SEGMENT
Australia – New bitumen depot for Sami, a Colas subsidiary, in Kwinana, near PerthROADS IN MAINLAND FRANCE REVENUE: €5.5 B(*) +9%
▪ Expanding road market:
• numerous road maintenance & upgrading projects prior to municipal elections
• completion of a number of tramway projects (Caen, Bordeaux, Saint-Etienne, Lyon) and Bus Rapid Transit
networks
• highway recovery plan (A10 in Touraine) and Grand Paris projects (tramways T12, T13, etc.)
• slight recovery in private investment
▪ Business growth in line with market growth:
• despite social unrest and difficulties in supplying bitumen
• strong growth in Greater Paris with the renovation of runway 3 at Orly airport
▪ Continued development of related activities:
• work for private individuals, deconstruction (under the Premys brand), pollution remediation, materials
trading, recovery of site waste
(*) including Road Safety & Signaling business at Aximum
Satisfactory year in terms of business and performance
15ROADS IN EUROPE REVENUE: €1.9 B +2%
(STABLE AT CONSTANT SCOPE AND EXCHANGE RATES)
▪ British Isles: 4% increase in business (+ 2% at constant scope and exchange rates)
• in the United Kingdom: numerous investment plans launched by the British government
• in Ireland: favorable economic environment and construction of Motorway M7 in the completion
phase
▪ Continental Europe: stability (+ 1% and -1% at constant scope and exchange rates)
• major road and highway projects financed by EU funds in central Europe (construction sites M4, M25,
M30, M70 in Hungary, D3 and D48 in the Czech Republic)
• growth in Poland, Hungary and Switzerland attenuated by decline in Slovakia and Belgium
Maintaining a high level of activity and profitability in Central Europe
16ROADS IN NORTH AMERICA REVENUE: €3.6 B +6%
(STABLE AT CONSTANT SCOPE AND EXCHANGE RATES)
▪ United States: revenue is up 5% (constant scope and exchange rates) to almost US $2B
• road market supported by state-run initiatives
• business levels differ from one state to another (dynamic market in California, tense in rural Mid-
West)
• improvement in current profitability, boosted by California and Alaska
▪ Canada: revenue is down 4% at constant scope and exchange rates due to Alberta's economic
difficulties
• road market virtually stable
• business levels differ from one province to another (slight increase in Ontario and Quebec, stability
in British Columbia, sharp drop in Alberta)
• McAsphalt's high performance in bitumen trading
• integration of Miller and McAsphalt went well
Business is up in the United States offsetting a drop in Canada, and
profitability improved
17ROADS REST OF THE WORLD REVENUE: €1.4 B +7%
(+5% AT CONSTANT SCOPE AND EXCHANGE RATES)
▪ Overseas departments and regions and Indian Ocean: revenue is up 6% (+ 6% at constant
scope and exchange rates)
• business is contrasted in the Caribbean-French Guiana, with a sharp increase in Guadeloupe
• traditional activity is up, and work has slowed down on the New Coastal Road in Reunion
• sharp drop in activity in Madagascar (completion of Antananarivo airport) and headway in Mauritius
▪ Africa and Middle East: revenue is up 10% (+9% at constant scope and exchange rates)
• market share in Morocco is stable, with a strong industrial component
• growth in activity in West and Central Africa (Côte d'Ivoire, Benin and Gabon)
• more difficult political and economic background in southern Africa and the Middle East subsidiaries*
▪ Asia, Australia, New Caledonia: revenue is stable (-1%, stable at constant scope and exchange rates)
• business up sharply at Tipco Asphalt (*), driven by a dynamic bitumen market
• activity level maintained in Australia despite the economic slowdown
• drop in activity in New Caledonia (*) consolidated by the equity method
▪ Latin America: development of road business in Chile and Peru
Business is up, despite contrasting situations
18RAILWAYS REVENUE: €1.1 B +19%
(+11% AT CONSTANT SCOPE AND EXCHANGE RATES)
▪ France:
• growing activity
- start of 2 major renewal and maintenance contracts for railway networks (tracks and overhead lines)
- work on several metro and tramway projects (Paris region, Bordeaux, Rennes, etc.)
• improvement of operating profit thanks to a number of adaptation measures
▪ United Kingdom:
• business is high in infrastructure activities
• start of Rail Systems South Alliance (CP6)
▪ Continental Europe:
• business is buoyant (Liège tramway, new companies acquired from Alpiq in 2018)
▪ Rest of the World:
• business is down in MEA area, up in South America (Santiago metro) and Asia (Hanoi and Jakarta metros)
Business is up sharply and profitability has recovered
19OTHER ACTIVITIES
▪ Waterproofing: €141 M (Q1 revenue 2019)
• disposal of Smac in May 2019
▪ Road Safety & Signaling:
• activity reporting to the Mainland France Roads Segment from January 1, 2019
• restructuring of the Variable Message Signs activity
▪ Water & Energy Transport (formerly Networks) : €169 M -15%
• drop in business after the completion in 2018 of two major pipeline laying projects in France
203.
FINANCIAL
STATEMENTS
Canada – upgrading a section of Highway 404 in OntarioKEY FIGURES
Change
IFRS 16 - in millions of € 2018 2019 2019/2018
Revenue (in billions of €) 13.2 13.7 +4%
Current operating profit 373 433 +60
Current operating profit margin 2.8% +3.2% +0.4 pt
Operating profit 342 (1) 405 (2) +63
Net profit attributable to the Group 227 261 +34
Free cash flow after working capital
46 341 +295
requirements
Net debt 475 367 -108
Dividend per share in € 5.55 6.40 (3) +0.85
(1) of which non-current charges: € 31 M in 2018 mainly related to the decommissioning of the Dunkirk site and the one-off employee “purchasing power” bonus in France
(2) of which non-current charges: € 28 M in 2019 related to continued work on the decommissioning of the Dunkirk site and structural adaptation costs
(3) proposed to the General Shareholders’ Meeting of April 22, 2020
23KEY FIGURES
Change
IFRS 16 - in millions of €
2018 2019 2019/2018
Revenue 13,190 13,688 +4%
Current operating profit 373 433 +60
Other non-current income and expense (1) (31) (2) (28) +3
Operating profit 342 405 +63
Cost of net debt (31) (33) -2
Other financial income and expenses (2) 2 +4
Interest expense on lease obligations (13) (15) -2
Income tax expense (96) (141) -45
Share in income from associates and joint
28 43 +15
ventures
Net profit 228 261 +33
Net profit attributable to minority interests 1 0 -1
Net profit attributable to the Group 227 261 +34
(1) of which non-current charges: € 31 M in 2018 mainly related to the decommissioning of the Dunkirk site and the one-off employee “purchasing power” bonus in France
(2) of which non-current charges: € 28 M in 2019 related to continued work on the decommissioning of the Dunkirk site and structural adaptation costs
24FREE CASH FLOW AFTER CHANGES IN WORKING CAPITAL REQUIREMENTS (IN €M)
Net capital expenditure Reimbursement of lease
Changes in working capital obligations Free cash flow after working capital
Net cash flow (*) requirements
requirements
Net capital expenditure Reimbursement of lease
obligations
Net cash flow (*) Change in working capital Free cash flow after working capital
requirements requirements
(*) net cash flow after cost of net debt, interest expense on lease obligations and income tax expense
25CASH SURPLUS FROM OPERATIONS (IN M€)
Income tax expense Net capital expenditure*
Cash flow
Changes in working Cash surplus from
capital requirements operations
2018 874 (132) (295) (300) 147
(*) including change in net debt on operating assets
26NET CASH POSITION (IN M€)
Dividends paid out
Changes in working capital
Changes in scope,
requirements
exchange rates, other
Net debt as of December 31, Net cash used by financial
2018 assets* Current and non-current lease Net debt on December 31,
obligations 2019
12/2018 433 147 (678) (270) (82) (23) (475)
(*) including change in net debt in financial assets
27CONDENSED FINANCIAL STRUCTURE
Change
IFRS 16 - in millions of €
2018 (1) 2019 2019/2018
Non-current assets 4,562 4,627 +65
Shareholders’ equity 2,797 2,909 +112
Non-current liabilities 1,734 1,740 +6
Ratio of shareholders’ equity + non-current
100% 100% =
liabilities / non-current assets
Net debt 475 367 -108
(1) The figures at December 31, 2018 have been restated to reflect IFRS 16
28ORDINARY DIVIDEND AT €6.40 PER SHARE
Dividend per share €5.45 €8.20 €8.20 €5.55 €6.40(1)
Yield(2) 3.9% 5.8% 4.5% 4.0% 4.5%
Dividend 268 268
in millions of €
209 (1)(3)
178 181
For fiscal year 2015 2016 2017 2018 2019
(1) Dividend proposed to the General Shareholders’ Meeting of April 22, 2020
(2) Based on prices as of December 31
(3) Based on the number of shares as of December 31, 2019
29FILM Paris-Orly Airport
4.
STRATEGY
& OUTLOOK
2020
France – Upgrading runway 3 at Paris-Orly airportTHE DNA OF COLAS
World leader in the construction and maintenance of transport infrastructure
Mission: promoting infrastructure solutions for sustainable mobility
Vision: global expertise united by a strong brand
Core businesses:
ROADS MATERIALS RAILWAYS
The organization is comprised of more than 800 local business units coordinated in
regional networks. The majority of these units are vertically integrated.
32COLAS OPERATES IN LONG-TERM GROWTH MARKETS
90%
Maintenance
▪ Growing needs for construction and maintenance of
transport infrastructure
10%
Construction
▪ Favorable megatrends
• Growing populations and urbanization
• Programs to upgrade infrastructure in developed countries
• Emerging countries are behind in terms of infrastructure
• Growing environmental constraints
• Shift to service economy
• Digital transformation
33MAIN STRATEGIC PATHS
1. Getting value out of industrial activities:
• Quarries
• Bitumen
2. Enriching the range of offers:
• Major projects
• Mobility solutions
3. Continued international development
4. Accelerating the digital transformation
34CURRENT PATHS TO PROGRESS
▪ Quarries: program being rolled out globally to
• optimize the portfolio of sites and improve operating performance
• increase sales volume and develop new activities
an ambitious HR component for the 4,000 employees working in these segments
▪ Bitumen: in an increasingly global market, Colas aims to take advantage of its leading position to
• share the expertise and know-how of its specialized subsidiaries (Tipco in Thailand, McAsphalt in Canada, Sami in
Australia, etc.)
• strengthen its foothold along the value chain across the zones
▪ Operational excellence: a number of intiatives have been launched (e.g., "6S" program that started in the USA and
has been rolled out across other countries)
35ORDER BACKLOG IS UP
Mainland France
Order backlog (€M)
International & French Overseas +9 %a
€9.2 B
9,2 Md€
€8.5
8,5 B
Md€
€7.6
7,6 B
Md€ -10% ;
€7.1
7,1 B
Md€ -2 % excl. Smac
3,071
3,414
3,161
2,897
6,138 +21 %b
4,423 5,071
4,167
End Dec. 16 End Dec. 17 End Dec. 18 End Dec. 19
(a) +12 % at constant scope and exchange rates
(b) +20 % at constant scope and exchange rates
▪ Slight drop in the order backlog in Mainland France
▪ Strong international / French overseas growth, boosted by medium-term contracts
(P3, CP6 for Colas Rail UK, etc.)
36OUTLOOK 2020
▪ New organization in place as of January 1, 2020 to ensure more cross-disciplinary bridges
and agility
▪ Revenue expected to decrease slightly:
• In France: foreseeable impact of municipal elections and comparison effect linked to the sale of Smac
• In other geographical areas: business expected to remain stable
▪ Current operating margin should continue to improve:
• It will gradually benefit from the operational excellence initiatives currently being deployed, particularly in
industrial activities
• After returning to breakeven in 2019, Colas Rail should contribute positively to current operating profit in 2020
In 2020, the Group will define targets to reduce its GHG emissions in line with the Paris
Agreement, and will define an action plan to reach them
37Film Tramway 13
You can also read
