2016 VINCI Construction Annual Report
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SUSTAINABLE CONSTRUCTION FOR A CHANGING WORLD 2016 ACTIVITY REPORT VINCI CONSTRUCTION VINCI ACTIVITY REPORT 2016 P. 01 inspiration P. 12 vision P. 22 conviction P. 34 construction Find us on www.vinci-construction.com PREPARING THE FUTURE WITH PASSION, ENGAGEMENT AND INNOVATION inspiration 2 New York City Karachi Delhi 24.8 31.7 36.1 Calcutta (USA) (Pakistan) (India) 33 NEARLY TWO-THIRDS OF THE WORLD Lagos (India) POPULATION WILL BE URBAN IN 2050 Mexico City 32.6 24.3 (Nigeria) (Mexico) Tokyo In 2050 as in 2016 32.6 (Japan) The 10 Bombay 80% most populous Kinshasa of global CO cities in 2050 42.4 Dacca 35 (India) emissions will be in millions of inhabitants generated in cities (Democratic Rep. 35.2 of Congo) (Bangladesh) In 2050 6.3 billion people will live In 2016 in cities 75% 3.9 of all energy billion will be consumed people lived in cities in cities In 2050 % of the world population70 will be urban In 2030 million new housing250 units will be needed in the 12 countries that account for 61% of the world population Sources: OECD, United Nations, Navigant Research, Global Cities Institute Toronto VINCI CONSTRUCTION — Activity Report 2016 — 3 New York City Karachi Delhi 24.8 31.7 36.1 Calcutta (USA) (Pakistan) (India) 33 NEARLY TWO-THIRDS OF THE WORLD Lagos (India) POPULATION WILL BE URBAN IN 2050 Mexico City 32.6 24.3 (Nigeria) (Mexico) Tokyo In 2050 as in 2016 32.6 (Japan) The 10 Bombay 80% most populous Kinshasa of global CO cities in 2050 42.4 Dacca 35 (India) emissions will be in millions of inhabitants generated in cities (Democratic Rep. 35.2 of Congo) (Bangladesh) In 2050 6.3 billion people will live In 2016 in cities 75% 3.9 of all energy billion will be consumed people lived in cities in cities In 2050 % of the world population70 will be urban In 2030 million new housing250 units will be needed in the 12 countries that account for 61% of the world population Sources: OECD, United Nations, Navigant Research, Global Cities Institute Toronto VINCI CONSTRUCTION — Activity Report 2016 — 4 PASSENGER TRANSPORT WILL INCREASE In 2014 By 2030 80% BETWEEN NOW AND 2050 3.3 6 billion billion people people are travelled by air expected to travel by air every year x2 x increase in the distance covered increase2.5 in the number of travellers by all travellers in Asia between worldwide between now and 2050 2000 and 2010 (similar to the level in the OECD countries) x Increase4 in the volume of goods transported worldwide between now and 2050 % of passenger and goods transport50 by road (medium distance) will be transferred to railway and inland waterways Sources: Institut Montaigne, IPCC, International Civil Aviation Organisation (ICAO), Eurostat VINCI CONSTRUCTION — Activity Report 2016 — 5 PASSENGER TRANSPORT WILL INCREASE In 2014 By 2030 80% BETWEEN NOW AND 2050 3.3 6 billion billion people people are travelled by air expected to travel by air every year x2 x increase in the distance covered increase2.5 in the number of travellers by all travellers in Asia between worldwide between now and 2050 2000 and 2010 (similar to the level in the OECD countries) x Increase4 in the volume of goods transported worldwide between now and 2050 % of passenger and goods transport50 by road (medium distance) will be transferred to railway and inland waterways Sources: Institut Montaigne, IPCC, International Civil Aviation Organisation (ICAO), Eurostat VINCI CONSTRUCTION — Activity Report 2016 — 6 x400 748 MILLION PEOPLE DO NOT YET increase in world water demand for manufacturing industry between 2000 and HAVE ACCESS TO SAFE DRINKING WATER 2050, far more than for any other sector In 2050 % increase in worldwide55 water demand Due to pipeline aging, 900,000 km 1 billion cubic metres of water of drinking water are lost to leaks every year on average pipelines in France Population without access to safe drinking water In millions 2.5 South East billion Asia Asia people still have 65 no access 134 to improved of global drinking water withdrawals sanitation % will be absorbed by the agricultural sector systems 70 Southeast Sub-Saharan Asia Africa 61 Over in most of the least 319 90% developed countries Other regions 84 Oce Nationale de l’Eau WHO, UN-Water, Source: et des Milieux Aquatiques (Onema) VINCI CONSTRUCTION — Activity Report 2016 — 7 x400 748 MILLION PEOPLE DO NOT YET increase in world water demand for manufacturing industry between 2000 and HAVE ACCESS TO SAFE DRINKING WATER 2050, far more than for any other sector In 2050 % increase in worldwide55 water demand Due to pipeline aging, 900,000 km 1 billion cubic metres of water of drinking water are lost to leaks every year on average pipelines in France Population without access to safe drinking water In millions 2.5 South East billion Asia Asia people still have 65 no access 134 to improved of global drinking water withdrawals sanitation % will be absorbed by the agricultural sector systems 70 Southeast Sub-Saharan Asia Africa 61 Over in most of the least 319 90% developed countries Other regions 84 Oce Nationale de l’Eau WHO, UN-Water, Source: et des Milieux Aquatiques (Onema) VINCI CONSTRUCTION — Activity Report 2016 — 8 WORLD ENERGY DEMAND IS EXPECTED TO INCREASE 37% 2016 2040 2040 TIMEFRAME Oil is the leading Renewable energy sources energy source in (hydro, wind, solar, etc.) BETWEEN NOW AND 2040 80% will cover the OECD countries of global energy consumption will be of world electricity production Global energy derived from fossil 1/3 consumption energy sources 2012 +92% 1973 27% 2030 TIMEFRAME % Natural gas will become 25 Natural the leading energy source gas in the OECD countries Oil 2/3 2030 of the increase in oil consumption Oil consumption in will go to transport, especially by road the emerging countries 50% 1970 x 13% 3 Energy demand is expected to increase three times faster in the emerging countries Oil consumption than in the OECD countries in the transport sector between now and 2030 50% 60% 2000 2030 IFPEN, Connaissances Sources: International des Energies, Agency Energy VINCI CONSTRUCTION — Activity Report 2016 — 9 WORLD ENERGY DEMAND IS EXPECTED TO INCREASE 37% 2016 2040 2040 TIMEFRAME Oil is the leading Renewable energy sources energy source in (hydro, wind, solar, etc.) BETWEEN NOW AND 2040 80% will cover the OECD countries of global energy consumption will be of world electricity production Global energy derived from fossil 1/3 consumption energy sources 2012 +92% 1973 27% 2030 TIMEFRAME % Natural gas will become 25 Natural the leading energy source gas in the OECD countries Oil 2/3 2030 of the increase in oil consumption Oil consumption in will go to transport, especially by road the emerging countries 50% 1970 x 13% 3 Energy demand is expected to increase three times faster in the emerging countries Oil consumption than in the OECD countries in the transport sector between now and 2030 50% 60% 2000 2030 IFPEN, Connaissances Sources: International des Energies, Agency Energy VINCI CONSTRUCTION — Activity Report 2016 — 10 VINCI CONSTRUCTION IN 2016 VINCI Construction is a global construction group and European leader with nearly 67,000 employees and 700 companies across five continents. Firmly rooted in our areas of operation, we design and build structures and infrastructure that address major issues facing society – global warming, population growth and increasing mobility. We build on our integrated business model to deliver a full array of capabilities (financing, design, construction and maintenance) across the entire project life cycle in eight business areas: buildings, functional facilities, transport infrastructure, water infrastructure, energies, environment, oil and gas and mining (see pages 36-37). For VINCI Construction, every project is a new challenge. We bring attentiveness, respect, social and environmental responsibility, trust, stakeholder partnership, passion and expertise to our work to support our customers in a changing world. VINCI CONSTRUCTION — Activity Report 2016 — 11 € 13,681 € 330 700 million revenue million operating consolidated income from ordinary companies activities Over 27,343 67,000 projects 47% employees of our revenue generated outside France 2016 IFRS data VINCI CONSTRUCTION — Activity Report 2016 — TAKING THE LONG VIEW IN A CHANGING WORLD VINCI Construction rises to the challenges of mobility, distance, quality of life, liveability and urban biodiversity. At a time of increasing attention to urban development issues, our teams help make the city above, within and below the city a reality. We set the standard in construction by building on our vision. vision 14 INTERVIEW WITH JÉRÔME STUBLER, CHAIRMAN OF VINCI CONSTRUCTION AS GROWTH RESUMES IN 2017, WE HAVE WHAT IT TAKES TO SUPPORT THE CHANGES UNDER WAY IN INFRASTRUCTURE AND BUILDINGS” VINCI“ CONSTRUCTION — Activity Report 2016 — 15 HOW WOULD YOU DESCRIBE VINCI CONSTRUCTION’S PERFORMANCE IN 2016? We made substantial progress. Our revenue held steady, order intake increased and income improved significantly. The groundwork we did – to reorganise the company, focus it on our projects and spread the best practices identified in our entities so that everyone can learn from them – is beginning to bear fruit. Our organisation and productivity system, Orchestra, can take a lot of credit for that. In early 2017, our order book is increasing, and this will put a stop to the negative impact of the decline in the oil price and in public spending in France. PART OF YOUR STRATEGIC CAP 2020 PLAN SETS THE GOAL OF GENERATING 60% OF YOUR REVENUE OUTSIDE FRANCE. ARE YOU ON TRACK TO ACHIEVE THAT TARGET? Our efforts to make the company more international are paying off. Our annual revenue growth rate slowed with the completion of the SEA Tours-Bordeaux high-speed railway line, but we made up for it by rapidly expanding, notably in the Americas.