Vinci SA Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sven Edelfelt - Oddo BHF Securities - Analyst : Thank you for taking my question and thank you for the presentation. (spoken in foreign language) So I would have three. Arnaud, you mentioned no transformative deals. But what about Cobra? Are there any synergies between you and them? And could you eventually merge at some point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 22, 2024 / 8:00AM, SGEF.PA - Vinci SA Investor Day Second question would be on the margin progression. It seems to me that inflation has been a factor of expansion in margin over the recent years. So can you elaborate on the dynamic between inflation megatrend and cost? And what I would like to better understand is the guidance of above 7.5%. And as Christian said, I mean, the future have never been so bright. So maybe the guidance looks a bit shy, I would say. And the last would be to Christian. I mean, how the free cash flow generation is evolving so far? I think you mentioned end of September that free cash flow was in line with last year level. We'd be interested to know how is it like today.

Question: Sven Edelfelt - Oddo BHF Securities - Analyst : For Vinci. Yes. Yes. It's for Christian. Yeah, I tried.

Question: Harishankar Ramamoorthy - Deutsche Bank AG - Analyst : Hi, it's Hari from Deutsche Bank. Thanks for taking my question. Maybe three from my side. I understand you do not differentiate between organic and inorganic growth in your guidance, but should we expect this to be in sync with what you've seen over the last decade, so maybe 60-40 M&As, organic, or should it be more, should it be less? Second, sticking onto the topic of revenue growth, looking at your guidance of from mid-single-digit to high-single-digit growth, but also with higher internationalization, so two-thirds of revenues from outside of France, is it sad to say you expect France to probably not grow much? Or do you see any declines there? Any thoughts there? Much appreciated. And lastly, you talk about the US multiples or North American multiples being much higher, listed here for 15 times the EBITDA. Maybe your bolt-ons are probably a touch lower. But what do you get in return for the higher multiples? Surely, we should expect maybe much stronger growth or maybe much better margins for the higher multiple. Any color there would be much appreciated. Thanks.

Question: Harishankar Ramamoorthy - Deutsche Bank AG - Analyst : Sorry, the second one was in France. Given your target to have more revenues from international markets and given the single-digit, high single-digit growth for the business overall, I was just thinking, does that imply France doesn't grow in the mid-term? Any thoughts there?

Question: Harishankar Ramamoorthy - Deutsche Bank AG - Analyst : Thanks.

Question: Ruairi Cullinane - RBC Capital Markets - Analyst : Yes, thanks for taking my question. We heard you buy businesses at considerably less than 10 times the EBITDA. Do you consider the market-implied value of Vinci Energies as a cap in the multiples you pay in M&A? You highlighted that analysts value energies at 9 times EV/EBITDA, but the share price is currently around 25% lower than sell-side Vinci price targets. So perhaps the market is only valuing Vinci Energy at some less than 7 times EV/EBITDA. Thank you.