Vinci SA

Vinci, corporately styled VINCI, is a French concessions and construction company founded in 1899 as Société Générale d'Enterprises. Its head office is in Rueil-Malmaison, in the western suburbs of Paris.[2] Vinci is listed on Euronext's Paris stock exchange and is a member of the Euro Stoxx 50 index.

Vinci S.A.

Type	Société Anonyme
Traded as	Euronext: DG CAC 40 Component
ISIN	FR0000125486
Industry	Construction
Founded	1899 (1899)
Founder	Alexandre Giros, Louis Loucheur
Headquarters	1 cours Ferdinand de Lesseps 92500 Rueil-Malmaison , France
Area served	Worldwide
Key people	Xavier Huillard (Chairman and CEO), Yves-Thibault de Silguy (Vice-Chairman)
Services	Infrastructure and property construction, transport infrastructure concessions (motorways, tunnels, airports, bridges, energy infrastructure and services
Revenue	€48.053 billion (2019)[1]
Operating income	€4.997 billion (2019)[1]
Net income	€3.260 billion (2019)[1]
Total assets	€91.102 billion (end 2019)[1]
Total equity	€23.042 billion (end 2019)[1]
Owner	Alcatel (1966-81) Saint-Gobain (1981-88) Compagnie générale des eaux (1988-2000) Public float (2000-present)
Number of employees	222,397 (end 2019)[1]
Divisions	Eurovia, Vinci Energies, Vinci Construction, Vinci Concessions (airports, stadiums, highways), Vinci Autoroutes (Autoroutes du Sud de la France, Cofiroute, Escota, Arcour)
Website	www.vinci.com

History

The company was founded by Alexandre Giros and Louis Loucheur as Société Générale d’Entreprises S.A. (SGE) in 1899.[3] SGE was owned by Compagnie générale d'électricité (CGE), now Alcatel, from 1966 until 1981 when Saint-Gobain acquired a majority stake.[4]

Companies acquired by SGE include Sogea (a civil engineering firm founded in 1878) bought in 1986, Campenon Bernard (a civil engineering and development firm founded in 1920), bought in 1988, and Norwest Holst (a British civil engineering firm founded in 1969) bought in 1991.[3]

In 1988, SGE was acquired by Compagnie générale des eaux, now Vivendi.[5] In 2000 the company changed its name to Vinci.[3]

In 2001, it acquired Groupe GTM, which was a combination of Dumez, founded in 1880, and GTM, founded in 1891.[3]

The company went on to acquire Autoroutes du Sud de la France (the Southern Freeways Company) in 2006,[6] and Soletanche-Bachy, the world second largest leading geotechnical specialist contractor, after Bauer, in February 2007.[7] It also bought the UK operations of Taylor Woodrow Construction in September 2008.[8]

Vinci acquired Cegelec,[9] as well as the European aggregates businesses of Tarmac, in 2010[10] and it bought Meteor Parking from the Go-Ahead Group in September 2010.[11] Then, in 2012, Vinci signed a deal to buy ANA Aeroportos de Portugal for €3,080 million.[12]

In December 2013, Vinci was awarded a contract worth €440 million to build an express-lane highway system in Atlanta, Georgia.[13] In 2014, Vinci sold 75% of the shares of Vinci Park to a consortium Ardian Infrastructure and Crédit Agricole Assurances. Vinci Park then became Indigo. In June 2016 Vinci sold the remaining 25.4% ex-Vinci Park shares to the consortium Ardian Infrastructure and Crédit Agricole Assurances.[14]

Vinci and Orix won a 45-year contract in 2015 to operate Itami Airport and Kansai International Airport in Osaka Prefecture, Japan, at a price of around $18 billion.[15]

In March 2017, the company invested in Brazil to operate the airport use of Salvador, Bahia for 30 years.[16]

In November 2017, the company invested in Sweden to acquire Eitech and Infratek, specialists in electrical works and engineering.[17]

In December 2018, the company announced that it would acquire a 50.01% stake in Gatwick Airport by the end of June 2019 in a deal worth £2.9 billion ($3.7 billion, 3.2 billion euros).[18]

Ownership

The breakdown of shareholders at 31 December 2019 is as follows:[19]

• Institutional investors outside France: 57.2%
• Institutional investors inside France: 17.1%
• Individual shareholders – 6.8%
• Employees – 8.8%
• Qatar Investment Authority – 5%
• Treasury shares – 8.3%

Financial data

Financial Data in euro millions

Year	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Sales	33,571	36,956	38,634	40,338	38,703	38,518	38,073	40,248	43,519	48,053
EBIT	3,434	3,660	3,651	3,767	4,243	3,715	4,118	4,607	4,997	5,734
Net result	1,776	1,904	1,917	1,962	2,486	2,046	2,505	2,747	2,983	3,260
Net debt	13,060	17,164	16,210	17,552	17,134	15,001	13,938	14,001	15,554	21,654
Staff	179,527	183,320	192,701	190,704	185,293	185,452	183,487	194,428	211,233	222,397

Source: VINCI[20]

Competitors

Main competitors for VINCI

VINCI Autoroutes Abertis Atlantia Eiffage Brisa VINCI Airports AENA ADP Fraport MAHB

VINCI Energies in France: Engie Energie Services Spie Eiffage Énergie Bouygues Energies & Services outside France: Siemens Spie Bilfinger ThyssenKrupp Industrial Solutions Minimax Burkhalter Alpiq

EUROVIA in France: Colas Eiffage Infrastructures LafargeHolcim Heidelberg Cement Group Cemex outside France: Strabag Amey Kier Balfour Beatty Tarmac Conway Aggregate Industries Hanson Skanska Metrostav Cormac

VINCI Construction in France: Bouygues Construction, Eiffage Construction Fayat NGE Spie Batignolles Demathieu Bard Léon Grosse outside France: Balfour Beatty Kier Laing O’Rourke Interserve Strabag Skanska Porr Budimex Metrostav Trevi Bauer Keller

Source: VINCI Annual report 2016

Turnover analysis

As of 2013, the turnover was split as follows:[21]

• design and construction of works (35.5%): primarily in the building, civil engineering and hydraulics
• design, execution, and maintenance of energy and telecom infrastructures (26.5%; Vinci Energies);
• construction, renovation and upkeep of transport infrastructures (19.7%; Eurovia): roads, highways, and rail roads. The group is also active in urban design and granulate production (No. 1 in France);
• sub-contracted infrastructure management (16.3%; Vinci Concessions): primarily managing roads and highways (mainly through Autoroutes du Sud de la France and Cofiroute), airport activities;
• other (2%)

Net sales break down geographically as follows: France (58.9%), Europe (25.4%), North America (3.9%), Africa (3.5%) and other (8.3%).

Major projects

Vinci and its predecessor companies has been involved in many major projects including:

• Gariep Dam completed in 1971 [22]
• Tour Montparnasse completed in 1972 [23]
• Centre Georges Pompidou completed in 1977 [24]
• Yamoussoukro Basilica completed in 1989 [25]
• the new visitor entrance to the Louvre completed in 1989 [26]
• Channel Tunnel completed in 1994 [27]
• Pont de Normandie completed in 1995 [28]
• Stade de France completed in 1998 [29]
• Rio–Antirrio bridge completed in 2004 [30]
• Whiston Hospital completed in 2013[31]
• Atlantic Bridge, Panama due to complete in 2018.[32]

Vinci is also involved in HS2 lots N1 and N2, working as part of joint venture, with main construction work to start in 2018/9.[33]

Criticism

Vinci is involved in construction of the first 43 km of the Moscow-St.Petersburg toll road through the valuable Khimki Forest. This construction has raised many protests in Russia, 75% of the local community – about 208,000 citizens of Khimki – oppose the project.[34] There have also been numerous human rights abuses surrounding the project, with journalists and activists arrested and assaulted.[35][36]

Vinci attracted protests in relation to its project to build an airport in Notre-Dame-des-Landes near Nantes, expected to become the third largest airport in France and being built on a site of 2,000 hectares of woodland and marsh with an acknowledged social and ecological value. This project was financed through a public-private partnership with profits going to Vinci. In November 2012, protests took place to prevent the expulsion of villagers and farmers who were struggling to protect their environment who were receiving support at both a national and international level.[37]

Vinci's Norwest Holst and Taylor Woodrow were revealed as subscribers to the UK's Consulting Association, exposed in 2009 for operating an illegal construction industry blacklist. Vinci was later one of eight businesses involved in the 2014 launch of the Construction Workers Compensation Scheme,[38] condemned as a "PR stunt" by the GMB union, and described by the Scottish Affairs Committee as "an act of bad faith".[39]

References

1. "2019 Annual financial statements" (PDF). Vinci. Retrieved 26 March 2020.
2. "Contact Archived 27 March 2010 at the Wayback Machine." (Map Archived 26 July 2011 at the Wayback Machine) Vinci. Retrieved 7 July 2010.
3. "Vinci website: company history". Vinci.com. Archived from the original on 29 November 2011. Retrieved 20 November 2011.
4. "Vinci's Serge Michel dies". KHL. 20 March 2019. Retrieved 15 June 2020.
5. "Vinci website: SGE history". Vinci.com. Retrieved 20 November 2011.
6. "Autoroutes du Sud de La France history". Asf.fr. 16 January 2008. Archived from the original on 5 October 2011. Retrieved 20 November 2011.
7. "Contract Journal". Contract Journal. 19 May 2011. Archived from the original on 11 May 2008. Retrieved 20 November 2011.
8. "Vinci buys Taylor Woodrow". New Civil Engineer. 10 September 2008. Retrieved 1 April 2012.
9. "Vinci to acquire Cegelec from Qatar fund". Wall Street Journal. 1 September 2009. Retrieved 22 November 2017.
10. Vinci buys Tarmac's European businesses for £250m The Construction Index
11. Vinci Park doubles UK operation with Meteor acquisition Shopping Centre
12. "Vinci sees off rivals to buy ANA". FT. 27 December 2012. Retrieved 22 November 2017.
13. Leila Abboud (18 December 2013). "Vinci wins U.S. highway project worth 440 million euro". Reuters.
14. "Vinci achève son désengagement de l'ex-Vinci Park" [Vinci disposes of the former Vinci Park]. Capital. 13 June 2016.
15. Fujita, Junko (22 May 2015). "Orix only confirmed bidder for Kansai airport rights after more drop out". Reuters. Retrieved 14 September 2015.
16. "VINCI Airports wins the concession for Salvador's airport in Brazil". VINCI.
17. "Vinci Acquires Sweden-Based Eitech for Undisclosed Amount". Fox Business. 8 November 2017. Retrieved 6 December 2017.
18. "London's Gatwick airport sold to French Vinci conglomerate". The Jakarta Post. Retrieved 27 December 2018.
19. "Becoming a shareholder - Shareholders - Shareholders [VINCI]". Vinci.com. 5 February 2020. Retrieved 16 May 2018.
20. "Core businesses". VINCI.
21. "Euronext". Euronext. Retrieved 13 April 2013.
22. "Vinci website: Hendrik Verwoerd Dam". Vinci.com. Archived from the original on 7 February 2012. Retrieved 20 November 2011.
23. "Vinci website: Tour Montparnasse". Vinci.com. Archived from the original on 7 February 2012. Retrieved 20 November 2011.
24. "Vinci website: Centre Georges Pompidou". Vinci.com. Archived from the original on 7 February 2012. Retrieved 20 November 2011.
25. "Vinci website: Basilica of Our Lady of Peace of Yamoussoukro". Vinci.com. 25 March 1988. Archived from the original on 1 October 2011. Retrieved 20 November 2011.
26. "Vinci website: Louvre". Vinci.com. Archived from the original on 1 October 2011. Retrieved 20 November 2011.
27. "Channel Tunnel on Structurae database" (in German). En.structurae.de. Retrieved 20 November 2011.
28. "Pont de Normandie on Structurae database" (in German). En.structurae.de. Retrieved 20 November 2011.
29. "Vinci website: Stade de France". Vinci.com. Archived from the original on 1 October 2011. Retrieved 20 November 2011.
30. "Rio–Antirrio bridge". Road Traffic Technology. Retrieved 1 April 2012.
31. Whiston Hospital, St Helens and Knowsley Teaching Hospitals NHS Trust, retrieved 3 May 2018
32. "Three Qualified To Bid On Third Bridge Over Panama Canal Project". Panama-Guide. 30 March 2012. Retrieved 17 April 2012.
33. "HS2 contracts worth £6.6bn awarded by UK government". the Guardian. 17 July 2017. Retrieved 13 October 2017.
34. "Проблема сохранения Химкинского леса". Levada.ru. 15 September 2010. Archived from the original on 25 January 2012. Retrieved 20 November 2011.
35. An engineering mom leads effort to save an old-growth Russian forest, By Fred Weir, Correspondent / 30 April 2012, Christian Science Monitor
36. Russia halts forest highway construction as opposition grows 26 August 2010, By Julia Ioffe, Los Angeles Times
37. "Vinci, Company Profile – Corporate Watch". Corporatewatch.org. Retrieved 16 May 2018.
38. "Construction blacklist compensation scheme opens". BBC News: Business. BBC. 4 July 2014. Retrieved 7 September 2015.
39. "Scottish Affairs - Seventh Report Blacklisting in Employment: Final Report". www.parliament.uk. Scottish Affairs Committee. Retrieved 7 September 2015.

External links

• Official website