STORIES ACTIVITY REPORT 2016 In 2016, VINCI Highways expanded its international network to include two new concessions in Latin America, and strengthened its expertise in ETC by acquiring a stake in the US and India based company TollPlus. CONTENTS 01 OUR VISION 12 OUR EXPERTISE 01 PROFILE 12 AN INTEGRATED RANGE OF SOLUTIONS 02 GOVERNANCE AND SERVICES 04 2016 HIGHLIGHTS 18 THE RIGHT EXPERTISE AT THE RIGHT TIME 06 THE YEAR IN NUMBERS 24 PARTNERSHIPS BASED ON TRUST 10 WORLDWIDE PRESENCE 32 ELECTRONIC TOLL COLLECTION 36 IMPROVING SAFETY 38 HUMAN RESOURCES: ON THE MOVE! 39 BUILDING SUSTAINABLY 40 VINCI HIGHWAYS’ PORTFOLIO VINCI HIGHWAYS — ACTIVITY REPORT 2016 1 PROFILE VINCI Highways’ dedicated development, program management and operation teams work closely with local partners to design, finance, manage, operate and maintain highways, urban expressways, bridges and tunnels. Present in 13 countries (Canada, Colombia, France, Germany, Greece, India, Jamaica, Peru, Portugal, Russia, Slovakia, the United Kingdom and the United States), we ensure that our 1,848 km network of highways and nearly 1,300 km of urban streets, as well as the bridges and tunnels under our responsibility, are safe and well-maintained for our customers. We also strive to provide attractive and convenient service areas where drivers can rest and refuel. VINCI Highways also develops, implements and maintains electronic toll collection (ETC) solutions, adapting them to each country’s requirements. At VINCI Highways, safety is our main concern. We provide team-specific training for operations personnel and efficient tools and methods for monitoring safety on our networks. We believe that well thought out, well designed and efficiently managed roads and ETC systems are the key to solving traffic congestion and reducing air and noise pollution in some of the world’s biggest cities. a 2 GOVERNANCE GOVERNANCE 2016 was a banner year for VINCI Highways. We expanded our geographical footprint in Latin America with two major contracts in Peru and Colombia. We boosted our traffic management and toll collection expertise with the acquisition of Pex and a strategic interest in TollPlus. In 2016, the four-pronged growth strategy we introduced ETC company based in Phoenix, Arizona, which also in 2015 produced substantial results. operates in Hyderabad, India. Our preferred bidder status We continued to work with the Group’s Construction on the Dublin M50 free-flow tolling in March 2017 is businesses to expand our greenfield operations. In another proof of our successful expansion. Colombia, we won a 30-year PPP contract together with We also proactively continued our groundwork to develop Conconcreto to improve and operate the existing Bogotá- future markets by forging partnerships in a variety of Girardot freeway; and in Germany, we finalized a further countries. In Russia, we signed an interoperability A-Modell expressway project in early 2017. agreement with Russian State highways company Avtodor. In brownfield operations, we acquired Lamsac, which holds In Vietnam, we concluded a partnership agreement with the concession for the Linea Amarilla Highway in Lima, the Vietnam Expressway Corporation, the main publicly Peru. This is an important milestone in our ongoing effort owned road operator, in September at a ceremony attended to rapidly expand our operations into new countries and by the Presidents of Vietnam and France. to boost our growth. Meanwhile, we continued to expand, operate and maintain In our value-added electronic toll collection (ETC) service our existing asset portfolio in 13 countries and consolidated activity, we acquired Pex, the leading free-flow operator in our positions in Germany and Russia, where we are the Peru, and a strategic interest in TollPlus, a widely respected leading operator. We opened the Ohio River Bridges to traffic and began operating the stretch of highway. Our ongoing construction work in Russia and in Canada is proceeding on schedule. The safety of the users of our assets and of our employees is always our main concern. We strengthened the real-time incident reporting process applying across our entire network and provide systematic training to raise employee awareness of safety. The positive effects of these efforts are reflected in our LTIR* statistics, which sharply improved in 2016. In 2017 we will continue to manage our human resources and highway assets, roll out ETC and free-flow systems, seek untapped opportunities in promising geographies such as Africa, the Middle East and Asia and pursue both greenfield and brownfield expansion in our core countries. Our focus, as always, will be on achieving excellence in every project we develop and operate. a * Lost Time Injury Rate. Fadi SELWAN Chairman and Chief Executive Officer, VINCI Highways VINCI HIGHWAYS — ACTIVITY REPORT 2016 3 Christian BIEGERT Executive Director Cédric BRAUNWALD Russia Chief Financial Officer Arnaud JUDET Nicolas CHARLES Executive Director Chief Technical Officer Germany Christophe MARTIN Jérôme LEJEUNE Executive Director Executive Director ETC North America Marc NEYRAND Panayiotis PAPANIKOLAS Development Director Europe, Executive Director Middle East and Africa Greece Bernardo SERAFIM Marcel VIAL Development Director Executive Director Latin America Slovakia 4 2016 HIGHLIGHTS 2016 HIGHLIGHTS RUSSIA INTRODUCING INTEROPERABILITY The first toll tag interoperability contract in Russia was signed in May. This enables Russian drivers to use their electronic tag to pay tolls on any Russian highway, even those that are managed by companies other than VINCI Highways. a LATIN AMERICA STRONG DEVELOPMENT POTENTIAL VINCI Highways won contracts in Peru and Colombia, where governements are investing in major infrastructure. In its first acquisition in Latin America, VINCI Highways acquired the Lamsac company, which holds the concession for a 25 km toll road in Peru, and Pex, which operates the associated ETC system. a VINCI HIGHWAYS — ACTIVITY REPORT 2016 5 GERMANY A BUOYANT MARKET VINCI Highways through Toll Collect started implementation of the extension to the 40,000 km network of truck toll collection. Germany regularly invests in highways via its A-Modell program. VINCI Highways will continue to renovate, maintain and operate highway sections there in coming years. In early 2017, it was awarded the contract for a new 60 km section (A7-2) in Lower Saxony. a CANADA WORKING TO SCHEDULE In Saskatchewan, a 61 km bypass is being built to decongest traffic and improve road safety around the prov- ince’s capital, Regina. Work on the C$1.4 billion (€1 billion) PPP project by VINCI Highways and its Canadian partners is on track for completion in 2019. a 6 THE YEAR IN NUMBERS THE YEAR IN NUMBERS Key figures(1) MANAGED REVENUE: DAILY TOLL TRANSACTIONS: NETWORK: €703m 847,900 3,101 km Total revenue generated by the Average daily number Total network operated entities managed by VINCI Highways of toll transactions operated or under construction according to IFRS. It rose by the entities managed at 31 December 2016. by 15% compared to 2015. by VINCI Highways in 2016. KILOMETERS TRAVELED: NUMBER OF EMPLOYEES: INVESTMENT IN CONSTRUCTION WORKS: 12bn (+50%) 4,658 Estimated number of kilometers Number of employment contracts €1.1bn traveled by end-users on highways, with the entities of VINCI Highways Total investment made expressways, bridges and tunnels at 31 December 2016. by the entities of VINCI Highways operated by VINCI Highways in 2016 in construction works (excluding urban road networks). at 31 December 2016. OPERATIONS(2): (1) Unaudited data, 24 13 13 excluding ETC Department unless concessions service provider companies countries expressly stated. (2) Scope includes ETC Department. VINCI HIGHWAYS — ACTIVITY REPORT 2016 7 REVENUE(1) MANAGED REVENUE PER AREA MANAGED REVENUE PER ACTIVITY (According to IFRS, 100% basis) United Kingdom Latin America Toll revenue 18% 1% Slovakia Germany 77% Other revenue 1% 5% 3% Russia Greece 16% 26% Operation, maintenance North America Other countries and services 9% 24% 20% (1) Unaudited data, excluding ETC Department. (1) FINANCIALS – In €m REVENUE (2) EQUITY COMMITTED managed scope according to IFRS VINCI share data as of 31 december, (100% basis) including shareholder loans €703m 2016 €2,281m 2016 €611m 2015 €616m 2015 €512m 2014 €558m 2014 EQUITY COMMITTED BREAKDOWN at end of 2016 Operation, maintenance Others and services 2% 8% Traffic 90% (1) Unaudited data. (2) Excluding construction revenue. 8 THE YEAR IN NUMBERS TRAFFIC(1) TOTAL NUMBER OF TOLL TRANSACTIONS (IN THOUSANDS) 236,670 2016 +34% AVERAGE NUMBER OF TRANSACTIONS PER DAY IN 2016 176,598 2015 +12% 847,900 157,483 2014 TYPE OF VEHICLE TYPE OF TRANSACTION Manual 12% 59.6% Automated 6.2% Electronic 88% 34.2% (1) Excuding ETC Department. NETWORK OUR CONCESSIONS AND OPERATIONS BY TYPE 3,101 km of highways, expressways, bridges, tunnels and urban road networks under operation or construction 17 6 6 2 highways bridges electronic urban road and expressways and tunnels toll services networks of which: WE ALSO OPERATE AND MAINTAIN: 1,897 km currently under construction or refurbishment 65 219 41 40 120 toll plazas interchanges operations service areas rest areas centers VINCI HIGHWAYS — ACTIVITY REPORT 2016 9 STAFF(1) TYPE OF CONTRACT COUNTRY OFFICES TOTAL NUMBER OF EMPLOYEES (2) VS OPERATING COMPANIES 193 88 87% 98% United Kingdom Germany Long-term SPVs contract 393 1,038 Others Greece 637 53 Latin Slovakia America (1) Excluding 13% 2% ETC Department. 1,888 368 (2) Number of Short-term contract Holding companies Russia North America employment contracts (including country offices). SAFETY VINCI HIGHWAYS’ LOST-TIME ACCIDENT FREQUENCY RATE IN 2016(1) (12-month rolling period) 12 10.32 10 8 6.47 6.07 6 4 3.5 2.91 2 2.06 0 (1) Number of lost- time accidents (own and temporary staff) x 1,000,000/number of hours worked (excluding Jan. 2016 Jan. 2015 July 2016 July 2015 Apr. 2016 Apr. 2015 Feb. 2016 Feb. 2015 Oct. 2016 Oct. Oct. 2015 Oct. Aug. 2016 Aug. Aug.