Vinci SA

Vinci S.A.

Type	Société Anonyme
Traded as	Euronext: DG CAC 40 Component
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	€40.248 billion (2017)[1]
Operating income	€4.607 billion (2017)[1]
Net income	€2.747 billion (2017)[1]
Total assets	€69.803 billion (end 2017)[1]
Total equity	€18.383 billion (end 2017)[1]
Number of employees	194,428 (end 2017)[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

Vinci, corporately styled VINCI, is a French concessions and construction company founded in 1899 as Société Générale d'Enterprises. It employs over 194,000 people, operates in more than 100 countries and is the largest construction company in the world by revenue.^[2] Vinci is listed on Euronext's Paris stock exchange and is a member of the Euro Stoxx 50 index. Its head office is in Rueil-Malmaison, in the western suburbs of Paris.^[3]

History

The company was founded by Alexandre Giros and Louis Loucheur as Société Générale d’Entreprises S.A. (SGE) in 1899.^[4] In 1986 SGE acquired Sogea, founded in 1878.^[4] In 1988 the company acquired Campenon Bernard, a civil engineering and development firm founded in 1920.^[4] In 1991 SGE acquired Norwest Holst, a British civil engineering firm founded in 1969.^[4]

In 2000 the company changed its name to Vinci.^[4] In 2001 it acquired Groupe GTM, which was a combination of Dumez, founded in 1880, and GTM, founded in 1891.^[4] In 2006 the company acquired Autoroutes du Sud de la France (the Southern Freeways Company).^[5] In February 2007 Vinci completed the acquisition of Soletanche-Bachy, the world second largest leading geotechnical specialist contractor, after Bauer.^[6] In September 2008 Vinci bought the UK operations of Taylor Woodrow Construction.^[7]

In 2010, Vinci acquired Cegelec,^[8] and the European aggregates businesses of Tarmac.^[9] In September 2010, Vinci obtained Meteor Parking from the Go-Ahead Group.^[10]

In 2012, Vinci signed a deal to buy ANA Aeroportos de Portugal for €3,080 million.^[11] In December 2013, Vinci was awarded a contract worth €440 million to build an express-lane highway system in Atlanta, Georgia.^[12] 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.^[13]

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.^[14]

In March 2017, the company invested in Brazil to operate the airport use of Salvador, Bahia for 30 years.^[15]

In November 2017, the company invested in Sweden to acquire Eitech and Infratek, specialists in electrical works and engineering.^[16]

Ownership

SGE was owned by Compagnie générale d'électricité (CGE), now Alcatel, from 1966 to 1984, then by Saint-Gobain from 1984 to 1988, and then by Compagnie générale des eaux, now Vivendi, from 1988 to 2000.^[17]

The breakdown of shareholders at 31 December 2017 is as follows:^[18]

• Institutional investors outside France: 58.3%
• Institutional investors inside France: 15.3%
• Individual shareholders – 7.7%
• Employees – 8.8%
• Qatar Holding LLC – 3.8%
• Treasury shares – 6.1%

Financial data

Source: VINCI^[19]

Competitors

Source: VINCI Annual report 2016

Turnover analysis

The turnover is split as follows:^[20]

• 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 the Gariep Dam completed in 1971,^[21] the Tour Montparnasse completed in 1972,^[22] the Centre Georges Pompidou completed in 1977,^[23] the Yamoussoukro Basilica completed in 1989,^[24] the new visitor entrance to the Louvre completed in 1989,^[25] the Channel Tunnel completed in 1994,^[26] the Pont de Normandie completed in 1995,^[27] the Stade de France completed in 1998,^[28] the Rio–Antirrio bridge, completed in 2004,^[29] Whiston Hospital completed in 2013^[30] and the Atlantic Bridge, Panama due to complete in 2018.^[31]

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.^[32]

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.^[33] There have also been numerous human rights abuses surrounding the project, with journalists and activists arrested, assaulted, and even killed.^[34][35]

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.^[36]

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,^[37] condemned as a "PR stunt" by the GMB union, and described by the Scottish Affairs Committee as "an act of bad faith".^[38]

References

External links

• Official website