Vinci : Rapport financier semestriel de VINCI au 30 juin 2021

HALF-YEAR FINANCIAL REPORT

AT 30 JUNE 2021

Management report for the first half of 2021

1.	Key events in the period	4
1.	Faits marquants de la période	3
2.	Revenue	6
1.	Faits marquants de la période	3
3.	Results	8
	Faits marquants de la période	3
4.	Cash flows	10
1.	Faits marquants de la période	3
5.	Balance sheet and net financial debt	12
1.	Faits marquants de la période	3
6.	Order book	13
1.	Faits marquants de la période	3
7.	Outlook	13
1.	Faits marquants de la période	3
8.	Interim dividend	13
1.	Faits marquants de la période	3
9.	Main transactions with related parties	13
1.	Faits marquants de la période	3
10.	Risk factors	13
1.	Faits marquants de la période	3

Management report for the first half of 2021

Management report for the first half of 2021

"The first half of 2021 brought a sharp upturn in revenue and earnings compared with 2020. Free cash flow was positive, despite seasonal business variations that traditionally have a negative impact in the early part of the year.

"Business levels and earnings at VINCI Energies and VINCI Construction were outstanding, exceeding levels seen in 2019. Order intake remained strong and the order book rose to a new record level, giving the Group good visibility as it looks forward to the post-Covid era.

"For VINCI Autoroutes, although heavy vehicle traffic was buoyant, light vehicle traffic was still affected by some ongoing travel restrictions. The gradual easing of those restrictions in early May led to rapid growth in traffic, which is now above 2019 levels.

"For VINCI Airports, as in the world's air transport sector as a whole, passenger numbers remained low as a direct consequence of Covid-related travel restrictions. However, demand for air transport remains strong around the world. Although some airports are seeing a return to passenger numbers close to 2019 levels, trends vary depending on the geographic region. Against this backdrop, the Group continued its development, winning the concession for Manaus International Airport and six other small airports in Brazil.

"In April, VINCI announced the signing of an agreement with the ACS group to acquire its energy business. This unique opportunity fits with the Group's strategy to create a global player in energy-related engineering, works and services and to develop renewable energy projects.

"VINCI is continuing to roll out and accelerate its environmental ambition. In late 2020, to encourage everyone across the Group to genuinely share and adopt this ambition, we launched our Environment Awards, open to all VINCI staff members around the world. The impressive dedication and enthusiasm demonstrated by our people, and the number and diversity of the projects submitted, show that the Group's entities are committed to implementing this ambition.

"This collective effort supports our commitment to all-round performance, both in the economic success of our business activities, but also in relation to their workforce-related, social and environmental impacts."

Xavier Huillard VINCI Chairman and CEO

2 Half-year report at 30 June 2021 - VINCI

Management report for the first half of 2021

Key figures

							Change first half
(in € millions)		First half 2021		First half 2020	2021/2020		First half 2019	Full year 2020
Revenue (*)		22,607			18,493		+ 22.3%		21,729	43,234
Revenue generated in France (*)		12,365			9,484		+ 30%		12,262	22,912
% of revenue (*)		54.7%			51.3%				56.4%	53.0%
Revenue generated outside France (*)		10,242			9,009		+ 14%		9,467	20,322
% of revenue (*)		45.3%			48.7%				43.6%	47.0%
Operating income from ordinary activities		1,598			267		1,332		2,289	2,859
% of revenue (*)		7.1%			1.4%				10.5%	6.6%
Recurring operating income		1,467			118		1,349		2,341	2,511
Operating income		1,467			-		1,468		2,348	2,459
Net income attributable to owners of the parent excluding non-current		877			(244)		1,121		1,359	1,292
changes in deferred taxes in the United Kingdom
Diluted earnings per share - excluding this effect (in €)		1.53			(0.44)		1.97		2.43	2.29
Net income attributable to owners of the parent		682			(294)		976		1,359	1,242
% of revenue (*)		3.0%			(1.6%)				6.3%	2.9%
Diluted earnings per share (in €)		1.19			(0.53)		1.72		2.43	2.20
Dividend per share (in €)		0.65					0.65		0.79	2.04
Cash flows from operations before tax and financing costs		3,132			1,803		1,329		3,625	5,919
Operating investments (net of disposals)		(543)			(497)		(46)		(525)	(994)
Operating cash-flow		811			388		423		823	5,075
Investments in concessions and PPPs		(430)			(569)		139		(507)	(1,085)
Free cash flow		381			(182)		563		316	3,990
Equity including non-controlling interests		23,232			20,919		2,313		21,434	23,024
Net financial debt		(18,597)			(22,142)		3,545		(24,241)	(17,989)

(*) Excluding concession subsidiaries' revenue from work carried out by non-Group companies.

The first half of 2021 brought a considerable year-on-year increases in revenue and income, as well as very solid free cash flow. Compared with the first half of 2019, results from VINCI Energies and VINCI Construction improved, while the figures from concessions continued to suffer from persistently low levels of air traffic and, to a lesser extent, road traffic.

Consolidated revenue totalled €22.6 billion in the first half of 2021, up 22.3% relative to the first half of 2020 and up 21.7% like for like. Compared with the first half of 2019, revenue grew 4%

Ebitda amounted to €3,132 million (€1,803 million in the first half of 2020 and €3,625 million in the first half of 2019), equal to 13.9% of revenue (compared with 9.7% in the first half of 2020 and 16.7% in the first half of 2019).

Operating income from ordinary activities (Ebit) stood at €1,598 million, significantly up on the first half of 2020 (€267 million), yet still below the level achieved the first half of 2019 (€2,289 million). Ebit margin came out at 7.1% (1.4% in the first half of 2020 and 10.5% in the first half of 2019).

Recurring operating income reached €1,467 million (€118 million in the first half of 2020 and €2,341 million in the first half of 2019), including the impact of share-based payments (IFRS 2), the contribution from companies accounted for under the equity method, which remained negative for VINCI Airports, and other recurring operating items.

The Group generated €682 million in consolidated net income attributable to owners of the parent of, resulting in earnings per share1 of €1.19 (as opposed to a net loss of €294 million and a loss per share of €0.53 in the first half of 2020 as well as net income of €1,359 million and earnings per share of €2.43 in the first half of 2019). This figure includes a non-recurring expense in respect of deferred tax liabilities after the UK announced it will increase corporation tax from 19% to 25% from 2023. Primarily affecting the contribution from London Gatwick airport, this expense represents a total of nearly €200 million, with no impact on the cash position. Stripping out this effect, consolidated net income attributable to owners of the parent totalled €877 million (€1.53 per share).

Operating cash flow (before taking account of growth investments in concessions) amounted to €811 million, level on the first half of 2019 (€823 million, and €388 million in the first half of 2020). Free cash flow came out at €381 million, significantly up on the last two periods (an outflow of €182 million in the first half of 2020 and an inflow of €316 million in the first half of 2019).

Net financial debt stood at €18.6 billion at 30 June 2021, down over €3.5 billion over a 12-month period and up €0.6 billion relative to 31 December 2020. VINCI maintained a large amount of liquidity (€17.3 billion at 30 June 2021), comprising €9.0 billion of managed net cash,

1 After taking into account dilutive instruments

VINCI - Half-year report at 30 June 2021

3