Impact of the Covid-19 epidemic
23 Mars 2020 - 8:00AM
Impact of the Covid-19 epidemic
Rueil Malmaison, 23 March 2020
Impact of the Covid-19
epidemic
In the rapidly changing situation caused by the
current major health crisis, the safety of VINCI’s staff, partners,
subcontractors, customers and stakeholders, along with the
continuity of the public services for which VINCI is responsible,
remain absolute priorities.
The Covid-19 pandemic is having a significant
impact on VINCI’s activities.
Until 20 February 2020, passenger numbers at
airports managed by VINCI Airports were stable relative to 2019,
despite the sharp fall in air traffic in Asia. By the end of
February, the decline remained limited (-1.4%), but passenger
numbers have fallen sharply in March, with an estimated 40% decline
in the first three weeks of the month. That decline has worsened in
the last few days following containment measures and decisions
taken by some countries to close their borders. A plan to reduce
operating expenses and defer investments is currently being
implemented across all airports in compliance with contractual and
aeronautical obligations and government decisions.
At VINCI Autoroutes, traffic levels rose on the
intercity network until late February (+8.8% overall; +10.0% for
light vehicles +2.8% for heavy vehicles) but have since fallen
(-16% estimated decrease from March 1 to 20 overall; -19.1% for
light vehicles and -0.4% for heavy vehicles). Containment measures
recently taken in France have intensified the decline in traffic
levels. However, the fall in heavy vehicle traffic has been less
severe, with France maintaining a basic level of economic
activity.
In Contracting, after firm business levels in
early 2020, the French containment measures have caused a large
number of projects to be put on hold since 16 March. Industry
organisations have held talks with the public authorities to define
conditions under which works can resume gradually while ensuring
the health of those involved.Outside France, the situation is more
varied. Despite significant logistical difficulties, it has been
possible to maintain business activity in many countries, in
compliance with health measures in force. That is particularly the
case in Southeast Asia, Oceania, the Middle East, Africa and Latin
America, along with certain European countries and US states.
VINCI has adopted remote working arrangements
for staff members not required to be present on site, particularly
at its head offices in France and in a number of other
countries.Many of the Group’s companies are also in discussions
with the competent authorities to adopt measures allowing partial
business activity.
Overall, the Group expects a pronounced but
time-limited decline in its revenue. In its various business lines,
it is taking measures to adjust expenditure and review the timing
of investments.
However, it intends to be positioned to recover
quickly, in both Contracting and Concessions, as soon as the health
crisis is under control.
In this respect, it should be borne in mind that
the Group’s order book at end-February stood at an all-time high of
€37.9 billion, an increase of 8% over the previous 12 months.
The Group has a large amount of liquidity, with
available net cash of €6.5 billion at end-February (including €4.2
billion centrally managed). In addition, VINCI SA has a confirmed
€8 billion credit facility not due to expire until November 2024,
which is currently unused and not subject to any financial
covenants.
A further update on the situation will be
provided in the Shareholders’ General Meeting due to be held on 9
April.
At this stage, given the uncertainty about the
duration and scale of the health crisis, it is not possible to
quantify its impact on the Group’s financial statements. However,
it appears that VINCI will be unable to meet its target, announced
in February, of achieving revenue and earnings growth in 2020.
The VINCI Group has a long history: it has
experienced many geopolitical, economic and financial crises, and
it has emerged from them transformed and stronger than before. With
its strong culture, its decentralised and agile organisation, its
cautious financial policy and its long-term vision, VINCI will
continue to show the wisdom and sturdiness of its business
model.
About VINCIVINCI is a global
player in concessions and contracting, employing more than 222,000
people in some 100 countries. We design, finance, build and operate
infrastructure and facilities that help improve daily life and
mobility for all. Because we believe in all-round performance,
above and beyond economic and financial results, we are committed
to operating in an environmentally and socially responsible manner.
And because our projects are in the public interest, we consider
that reaching out to all our stakeholders and engaging in dialogue
with them is essential in the conduct of our business activities.
Based on that approach, VINCI’s ambition is to create long-term
value for its customers, shareholders, employees, partners and
society in general. www.vinci.com
This press release is an official VINCI Group reporting
document.
PRESS CONTACT VINCI Press Department Tel: +33 (0)1
47 16 31 82 media.relations@vinci.com
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