Good morning. Do you want it all? Thank you for spending a part of the morning with us in spite of the fact that some competition in the Her Smart Shoemaker now results. Chris Jones, the extraordinary exercise, Of course, you'll have an opportunity to ask all your questions. It goes with our executive committee with present in the room today, including Josine Jacobbert Jasine, our new HR manager who came on board exactly 3 weeks ago.
First of all, this is always more fun this way. Let's look at some pictures. This is the Salvador De Vaya Airport Just to,
get you interested
in what your appetite is in motion to go there. It's an airport we won this one. You'll remember we, upgraded it to extended it. We raised the environmental parameters in terms of waste processing, water processing, in many different areas, improvements. You know, from time, this was emphasized by Brazilian authorities for that matter.
President Bolsonaro was to come to the inauguration, but it's actually he had a slight health problem, so he transport minister assigned. The inauguration in his debt. That was only possible. She heard what was highly mobilized on social course, but also because they, were supported by Synergy, with the Brazilian subsidiary, that's very familiar with the 3rd 4. We're close together with the from, Portugal, making it possible to really hit the ground running and, to the whole CapEx operation in a record time.
The second slide we look at here is an illustration of 1 of the components. That's the only component necessarily, of the, low carbon motorway concept which, can she auto roost is rolling out now? You can see this line here. This is a carpool parking lot. In the parking lot, near the motorway before then, carpooling it, to their destinations.
Then we have a funny picture, interesting when this is in the Saskatchewan. There's a story that has got you on when you lose your talk. You can follow it for 48 hours. You can watch it 40 hours. If it can still flat, you can watch it, walking away.
It was very cold because so cold it was usually the tense and so forth. We, got a speech, in a language, we weren't familiar with, by the native American image. It is cigarette packages hand, which, was, a symbol of peace and peace. Also linked to some, some, piece candles, for this opening, who was also very nice with the, prime minister of Saskatchewan after the speeches and reuben recording, then took the wheel of this of these Truck trailer that, truck you see at the front here, and he actually drove that, truck himself. Try to imagine that happening here.
Let me load the procession that way. Nail station is in Chi Energy's involvement, engineers for seeing our renewable energy. This is solar energy here. We're seeing, of course, everything. Make sure this is a new and an innovation, like a picture here.
Information about Eurovia. It's, a robot, an automated, autonomous vehicle. That can they're very safely do horizontal markings or road marking on motorway or highway, sections. The next slide here. The picture, I hope, was meaningful to you.
This is the end of the school engineering work. Have the amazing ITR project in France, very much international finance, internationally finance. This is the 1st stage in a very ambitious program designed to develop energy from nuclear fusion, which would mean on Earth reproduce the mechanism that's taking place on the face of the sun. This project may either should, be producing generating power in 20, 25 ish. If all works out, it would run for around 10 years.
Then that's the 1st series, more industrial type series of facility using the techniques in Einstein, and vehicle Dixie Squared. And 1st series then come online midway through the century. Yes. I'm sure
if this
works out, as what's seen in laboratory observations, then it would mean mankind would have energy available to it. It would be almost limitless using fusion, which means transforming, material into energy. It's colossal, amazing, it's having a friend, It's international cooperation. It's a real first in this area. There are tens of billions, involved here.
We're working together with other European businesses here. And we've been involved in the civil engineering for the slack shift that's not difficult to hearing about in the upcoming decades. That's a beautiful example here of Xiimetry is know how project, near the La Defense Ring Road, the buildings that we bought, and then we completely restructured refurbished it also revamped the energy facilities here, and then we sold it. So those are just a few illustrations of things we worked on in 2019. 2019 was a good year, a very good year.
In fact, first of all, we saw solid growth. We'll tell them to some detail. Growth in, business, and in order in case that gives us a good visibility through 2020. We had good motorway traffic, record point. Still very good airport traffic as well.
All this leads to the following slide. Operating income and net income, which are up strongly. And this is good news in recent weeks of 2019. Excellent free cash flow. Up.
I read 1,000,000,000 compared to what we saw in free cash flow in 2018. John, of course, will come back to the point in greater detail on the other features. Okay, on these, economic results. We have to emphasize the major work that was done in all of our divisions and business lines throughout 2019. Enabling us a few weeks ago to to it's reduced by 40% our CO2 commissions are scoped working totals groups 12.
CO2 emissions, will be covered by 40%. It's 20:30, which brings us right in line with 21, which means it's going to work. I can keep an increase of temperature by the end of century by under 2 degrees. All of our geographies are seeing growth. That's, fairly infrastructure.
You see Europe's doing well, especially France. France, is almost all organic growth. So boosted in France, by activities in the region around Paris and a Greater Paris project, plus altogether. Property operations more or less, thanks to Greater Paris. Also, we'd say that once again, we have a good number of towers office towers being built.
And some being completed, definitely in the La Defense neighborhood, another highlight, strong growth in North America, Of course, this is a full year effect of acquisitions that we made in 2018, especially VINCI Energies, timeline and Eurovia, taking over activities from plants and paving, a building construction company, Something we sent you a year ago. We could tell Africa was very much, resilient growth. We saw this in order intakes in 2018. This is further confirmed. Activity on the African continent up by 20 almost 40% in 2019.
Further detailed French motorways Any vehicle traffic resuming well in the last few weeks of the year. To some degree, this is expected, but some of it unexpected. We knew that the baseline effect from December 2018, was extremely low. Because there's been some social unrest that took place. Back then, you can recall throughout the country, particularly in the motorway networks.
That's something that was less expected, was the carryover effect due to the railway strikes. That, led more traffic to more users to the motorway. Something we'd expected. So all in all, this is plugged. We were able to come out and trace and put, 2019, let's say 2019, so to speak, but also been some other parameters that impacted the bad weather and then the heat wave and so forth for many different reasons, up until the very last weeks of, 2019, the year hadn't been on the trajectory of growth of 2.8%.
Another highlight for VINCI Autoroutes, work on the Strasburg bypass, which is going forward a pace. Also, cleaning wise, and she also rates CapEx for 2019 reaching €800,000,000. This includes the CapEx for the symmetric infrastructure. This trust which should be completed during 2021. And then more daily considerations, VINCI Autoroutes, a lot of work being done to prepare for new uses, before the infrastructure for that usage, such as, autonomous mobility, connected, and shared mobility, Also, infrastructures that are, fostering carpooling.
I alluded to that earlier, plus working on developing AI, cases digital services, such as the Ulease concept that you all have on your iPhones, such as the multimodal compare to her or the, mobility assistance. And then she auto has also launched a new concept, which is APC, low carbon motorway. Again, it's to reduce the impact of the motorway. For instance, by using separate, carpool lanes and transport lanes and also developing whole offer of non carbon recharging stations throughout the highway network, by way, the locations currently have around 2 50. We're charging patients and throughout our VINCI Autorex network includes a ramp up of 400.
The trajectories, this will mean if you calculate the of a recharge station for electric vehicles approximately every, some 80 kilometers, and this will help motivate people to, Actually, you didn't like your vehicle, but it's not whether you'd be able to buy an electric, vehicle, they will know they'll be able to Charles of the country and find a recharge of station, whether they need 1, especially for these incontinence yautogroup, what are we system? It's also mean we'll be able to produce our own electricity, carbon free for, the fueling of these lit stations. We have programs for projects to roll out solar panels to the various unused motorway spaces. This would land, next to our motorway network, was not actually used as such for lanes, and we can therefore place other things in, on that land, such as installing facilities, renewable energy, energy, energy, airports, I'm going through all the percentages of notes. There's a couple of speakers on the left.
It's for 9% of Portugal. Unfortunately, we managed 60,000,000 passengers, 8% in France, driven by good performance in Lyon, and not 5.7% growth in Chile. That's good. Number 7% growth in Japan. We're now managing via our air port blocks.
So 50,000,000 passengers, if you can, 900% growth in Bell grade. That's good news. You'll remember. That has been an area for a very recently. It's always great from the very start to see strong traffic growth.
Driven, of course, by our productiveness and developing, some new, roots and so forth. All in all, last year, we'll have managed to 5,000,000 passengers, on all of our airports, which, means that we're the number 1, airport operator. Without about it. The most diversified one with 45 airports okay to the 12 different countries. Furthermore, we've been carrying active VINCI Airports to develop new routes last year.
We opened, 325 new air routes, origins and destinations. So, you know, this is one thing that's substantive airports versus, other similar players. We're highly proactive to develop new air words We're we know their lines very well. Very interesting thing out of the 325 new routes, 61 of them are long haul routes, such as Osaka, London, and Santiago, Barcelona that are very interesting for many different reasons. Managed revenue, which means taking 100% of the airport where we are in control or joint control with some partners.
So managed to revenue at VINCI Airports, 4.9 €1,000,000,000. This is an important victory. I have to compare this with if you could potentially auto risks, 5,600,000,000 on the previous slide. So we're not quite there yet, but still early proportion of entry airports, in terms of volumes managed, That's pretty comparable to the proportion we have in, airports. Now we've seen a big increase in the figures of 2,600,000,000 consolidated red now.
We see the impact of various things these are recent years, such as the AWHW Airport groups in the portfolio to upgrade Of course, Katwick, which is a big chunk of the increase in revenue there. And she continues to, roll out its investments in innovation policy for all the stakeholders. There's also passengers who need to improve passenger experience and ease of, Transit through airports. Also, focusing on airlines, helping the people more productive and efficient, also focusing on local governments and territories. That's also distinctive for us.
We've got the true ability to work hand in hand as partners with all the various governments, local governments, through, various arrangements such as Saint Vignon, where we're also fortunate to have various local governments that are at our side, jointly investing in capital. Now other concessions, mainly VINCI Realways and VINCI Highways. Something that's just gonna keep developing well. 6% in traffic This is basically our assets in Greece, a strong growth in Lima, Peru, thanks for the opening of Section 2. Of our motorway con urban motorway concession.
Also, it goes 8 percentage. It's very interesting here. The first section of the in Moscow St. Petersburg was opened a few years ago with the traffic risk initially to start up It was a little bit difficult, but now it's on track. And as you also know, we opened, section 78.
I'm sorry about that, but this game is used to, terminals on your, you know, secured outside, opened that present opportunity a few weeks ago. Another highlight, confirmation of the success of our high speed, line, the traffic risk here, the high speed a rail line SEA. We've won the wager there. This is the 2nd high speed rail line that's most used in France. Last year, we'll have a carry around 20,000,000 passengers, on that line.
Now to look more specifically and quickly at contracting business, starting with VINCI Energies, Niche Energy, give us a record year, solid organic growth, 615 percent in France, 12% outside the province. All in all, see if the full year of future acquisitions, fairly numerous made in 2018, among others, The prime line deal in the United States, plus beginning, if the x from the 34 Small and medium sized acquisitions, about 2019, which aren't always reflected for the full year 2019. Nevertheless, they brought an extra revenue order of 300,000,000 3 years that should continue, in 2020 for the full year effect. So no major operations, such as we may have had in dressed last year. But a large quantity of with bolt on acquisitions, Vinci Energy has been doing some acquisition for a fair few years.
Now, an important highlight. And and continuing growth and operating margin. If you see energy now going beyond 6% of it margin, Another, important point, international share of Venture Energy. International business is 55% now versus, 45% French activity. 2020 is looking good when we look at the quality and quantity of, yield 1 in 2019 that'll be carried out of 2020.
Now, the ClearPoint, CT Energy is very of course, you have to be well positioned in the 2 major areas, I. E. The digital resolution and energy transition. These are the main drivers. For the virtuous growth at VINCI Energies, the 10 year period will have basically I've seen a threefold increase in the size of VINCI Energid Vince that that things aren't over with yet.
You're over young. Wonderful performance for the 8.5 percent organic growth in France. We expected this. We did have quite a strong received the, free municipal elections on the run up period. This is a usual effect.
Regarding top line and revenue, the full year effect of acquisitions made in 2018, specifically TNT in Canada, as well as the plant and painting division from Layne Construction that already mentioned earlier. Virtuous growth, because at the same time, Eurovia is improving its March and now going well beyond, the, 4% mark. Hervia continues to develop internationally. 46% of its act is international, remainder of France, like Evinci Energy, it's such a good order intake in 2019 that we can feel 2020 should also be a very good year in France. I'm thinking is, it'd be a great thing if you were flat after the municipal elections.
Usually, does it serve a downtick after municipal elections? The downtick term shouldn't be as substantial as in previous election cycles, we think that things should remain fairly flat in France in 2020, which we could think. Internationally. We'll continue to see. My feeling, I'll talk about a bit of my talk.
Feeling if it just will continue to grow, of course, not at the same growth rates identical growth rates as we had in 2019. Inching construction now, construction also saw its dynamic activity with good organic growth. You can see it on the slide. Hip strength, while I was being supported that ramp up of the Paris region job site, especially not only especially next to Grand Paris Express. Also very good news in Central Europe in the UK, in Asia, and especially in Africa.
I touched upon this earlier. Africa were there. It's, a bit of growth. Our Grand Projects Division. You remember it was sort of in a trough last year.
We've seen the completion of some major deals. Without having really secured new major deals that we have. We've secured. We've won some new credit contracts in the US in Canada, in New Zealand, in United Kingdom, which leads us to believe the project division will resume Grupoosa in the next few months and years. Watchpoint continues with the same one.
Oil and gas activity oil, it is still being depressed. Not much CapEx available in the oil market. Much much less than in previous years. Things are going fairly well ish in CAS. We've made do.
We won some pipeline deals in CAS. And look for natural gas, one in Canada, and also a deal with the new hygienic reservoir tanks, as a tech, year from here, we'd already built 4 creogenic tanks, on permafrost. We'd appreciate it. Directly the Novatech declined for 2 additional tanks, which would be a good thing in, on contra for those contracting, but UltraPost contracting is an franchile state for well known reasons that have been discussed for quite some time. The overall market is depressed This is one of the explanations for the slight dip in our, operating income for the entire Construction Division in 2019.
The harvest of order intake, ranging construction in 2019 was very good Can we get in Jade? So we're confident in, actually, for 2020, 2, as you can try on, which is like in France, some Please, want to make sure we're very aware of this. There are 2 main regions in France. I mean, types of regions, those that are sort of overheating and other regions that are still lacking to some degree. So we must have lived CH France via the prism of, Paris Regional.
In the other regions, activities, somewhat fragile and have to be right sized to count the local marks as the first watch point. Second thing to keep an eye on. We'll continue working to improve our margins further, in industry construction. Now I saw what profits in Chima would be a very good year. Chima did a year ago.
I probably said that our thinking was we reached a peak. In terms of reservations and sales of, housing and the things that start super accounts, but there was no dip were basically the same level of reservations and sales as in 2018. This is because of the, housing needs remain high in France. Furthermore, We're seeing continued low interest rates before a lot of people, that's a problem with the stock exchange. They need to decide to invest in a property Good activity as well.
If you look at, business, property, offices, and hotels, especially in Paris, is focusing on, but also other major cities. Lastly, let me talk about this publicly. Okay? Let's get you a BDA finalized in January 2019. The 1st stage in acquisition of the company called Herbat, which will position us, in the south of the country.
And also, in a sector for property development, which includes, controlled housing units, controlled price housing units ahead of the cruise show now.
Well, good morning to you all. So, the revenues we said top, the 48,000,000,000 mark in 2019, that's a 10% increase of which 5% in organic growth. It's the highest organic growth rate that we've achieved these passengers. Last time, but it's back to 2011. It reached 6.4%.
It's in the same order on the slide between concessions and contracting M and A not leaving a slight, VINCI real estate up 20%, which are consequence of, apartment sales. These puppies, there's a lag between the booking and the delivery of the department's M and A. 1,000,000,000 give or take additional revenue. That's about 1,000,000 in the impact of 2019 of M and A in 2018. Timeline, Guadalupe, a w w and some acquisitions by Eurovia, the 1st June Airports.
The acquisition 1.7 of the M and A deals in 2019 includes an, a deal by Eurovia in DUI's 2019, we've blamed for some 600,000,000 additional revenue Gatwick, 700,000,000 consolidated since May 15 last year and some 30 deals at VINCI Energies for revenue on the 300,000,000 full year Gatwick, would have been close to 1 Vivienne and acquisitions by VINCI Energies at additional 800,000,000 will have those impacts coming into 2020. Forex, slightly positive, the results of a slight decrease of the euro versus major currencies, US dollar, Canadian dollar, Swiss franc, all sterling. By geography, France, as you can see, growth was essentially, organic 6.1% at over total 62. Very good formation finish of all. Our, units, VINCIa bought 8.
8 VINCI energy plus 6 fix VINCIel to a root plus 44 VINCI Construction 46 VINCI Real Estate, up 19.3 international cloud 16%, M and A accounts for over 10%. Thanks for the deal site for the moment. If you look by country, countries, that grew the move in 'nineteen at Belgium, Portrait Republic, Sweden, and Grand International with the U. S. Canada.
Africa, Australia, New Zealand. The share of France, in this context, in spite of sustained activity shrinks year after year was slightly 25% in 'nineteen. And, moving if it is a consequence of, proactive expansion policy internationally to be flat. But outside Europe, We now achieved 18% of our revenues in 16% in 2018. That's 8,600,000,000 Admin feed, 3.62.2,000,000,000 achieved in the US after largest international country after
UK and
Germany topping 3,000,000,000 in Canada with 1,000,000,000. It's up, but close on 15% that margin of 11.9% is against 11.5% last year. Let me see if there's a question. Seen, barely impacts these numbers, these trends out of the group's performances remarkable Almost all business lines have improved. The contribution is the case for concessions.
506 1,000,000 or 16 percent contracting 1,000,000, up 12%. In concessions, the Gross comes. So from VINCI Autoroutes up SEK 218,000,000 of VINCI Autoroutes the increase reflects the increase in revenue and attractive cost control, favorable baseline effect. With industry and I show the end of 2018. And in assurance at Damnity, I mentioned this when we to close the court lease that we obtained partially offset the impact to the Innovate Vichierport.
The increase in corporates Gatwick for some GBP 270,000,000, the consequence of the traffic increase in Portugal and France into a margin rate for Vinche airport, Sandy, but that's fully due to the different mix because every airport has its own specific features and given a typical regulation margin rates vary from one airport to another from country to country, nuclear Gatwick has a margin rate of 38.3 percent, 19, slightly below the previous rate of VINCI Airports that doesn't incorporate value creation expected across the various airports. Contracting Ritchie Energy Xavier said top 6% that's an improvement if we calculate it down to the 1 a 25 BP shows the ability of VINCI Energies to boost its profitability, not just its historic units, and that answers comments made by some of you, it's ability to successfully integrate in France and overseas new acquisitions. And, furthermore, we We had some M and A at the energy at EBIT rates above 6%, not to mention the value creation potential or Eurovia margin improvement exceeds 4.2 percent, placing the unit, at the high end of the industry 3 improved, performance in France, Europe and in America. The integration of Lincoln, savings done very well in the US.
We now achieve over 1,000,000,000 in Rev on the West Coast for Eurovia, making it one of the leaders in the area America account 17% to year over year in 2019 is against 11% previously. VINCI Construction, slight dick in the margin. Let me say immediately, I mean, you probably doubt this that this dip was from or marked in the H1. So we recovered while going into H2. Most of the units are posting good performance with the exception, as Xavier said, of oil and gas of entrepreneurs, but we've seen that it's set to recover in terms of its order book.
We've brought some pinealters in good performance in the UK. The margin exceeds 2% while the best performance given the trustix in the market. There's 3 percent, Solitanche Place in Air for 4% major projects around 3% were at a low point, and that's going to correct in the new deals coming in. Only eventually construction France remains rather disappointing below 2%. But if there are two halves, the derivative is now positive, and we hope that VCF will improve its contribution in 2020, all in all, the units on the right track in retrieving nice performance and efforts undertaken should pay off as of this year.
Into VINCI Real Estate at 6% is due to the fact that scarcity of land in France, it's getting difficult to find land. That's a raw material real estate whereas a sometimes work costs tend to rise. Next slide, particularly income statement, starting with recurring operating income where we see the impact of IFRS 2 share based payments reflecting the account, the impact of the incentive plans for our employees, share based payments, update performance shares, or the savings plan. I think Savier will speak for that in a moment.
We did a
special transaction in suburb paying a top up of €400 to all our employees. So they become shareholders. They're all actually shareholders. That was 1,000,000,000 that accounts for part of the gap between the 2 years. We also need to mention in the positive, the upsides, the contribution of our contribution of our equity accounted affiliates has increased in Japan, Kasai and Qatar.
We bought some provisions last year, which, didn't prove necessary once again this year. And the nonrecurring items, there are various bits and pieces, nothing major, some goodwill impairments, but also some loss is on disposal, but also some capital gains. Last year, we had some upside. We had a positive impact to one off on the reconsolidation of of the bridge in Greece. Financials that I still don't see on my screen.
I hope you've got them. So the financial, it's SEK 180,000,000 half is due to the increase in net financial spends this increase in net financial expenses, of course, due to our M and A, deals that need to be financed and we incorporate in our numbers. Those are the targets that pays for Gatwick that has a debt of some 4,000,000,000 sterling and that'll grade. Also, if we add all these effects, it weighs on financial expense, fortunately, we're able to optimize the cost of debt euro continued to decline in 'nineteen through the various points. It's used more than at the moment, 1.7% down to 1.3% on a weighted average basis.
And we have few financial expenses capitalized on our current investment because the second section of the Lima Auturiv was delivered last year. So we don't capitalize the financial extent on that investment. We still do it on the Strasburg ring road are purely noncash on, discounting provisions when they decrease provisions must be adjusted, and that's an expense in the P and L. Next, the tax expense taxes up from $1,400,000,000 to $1,600,000,000 that says it should be given the hike in the bottom line the rate has increased from 32 to 33 day primarily due to the fact that in 2018, we benefited still from the tax the credit, the competitive and labor tax
credits, the
tax it is nontaxable definition and the CIC was replaced at the same amount. By reduction of payroll taxes, on low wages with subject to tax. So there's some increase both in the amount of the tax rate stemming from that. All in a it's worth taking me sometimes to to get this VIN sheet pays in France
of the corporate CAG 1
point 2,000,000,000 to which we must add about the same amount in various taxes that are included in adding this about 2.3 1,000,000,000 in taxes paid by pension. We could add VAT on our French activities, 1,000,000,000 and payroll taxes That's about 8,000,000,000 that VINCI contributes to the economy and the finances of the French state. Net income rose to 1,000,000,000. That's an increase of some 9% to be found fully in the EPS because we eliminated all dilution of buying shares on the part with those that we create. So it's a year I think that's commendable, if not, very good.
Let's look at the big, pretty cash flow this chart that you all know explains the variation of the financial debt year on year, up 6,100,000,000. The highlight this year is the level of free cash flow defined as being, EBITDA corrected for changes in working capital, requirement, current provisions, financial expenses, tax, CapEx, be they current or non current for the first time. We see 1,000,000,000 mark last year. I think we were at 1,000,000,000. So 1,000,000,000 free cash flow over and above last year, which was beyond what we expected So EBITDA, 8,500,000, there's a star missing on this slide because we put a star next to CapEx, not an extra are in 8.5 as an IFRS 16.
The integration of leases in our accounts we increase EBITDA, we have CapEx that offset that hike to the tune of $575,000,000. If we correct that effect in increase of EBITDA is close to, 15% versus last year. And if we so further the gateway integration gateway. And it's because we have an EBITDA increase price on 10 percent, which is pretty good with an EBITDA, excluding IFRS 16 that comes 16.5 percent on revenue, 2 thirds of the EBITDA generated by, transactions at 58,000,000,000 VINCI, or sorry, 4.2, VINCI Air Point 1.5 and other concessions of just under 200,000,000 contracting and real estate contribute over 2,500,000 group EBITDA of INX Energy 1,100,000,000 year over year. And VINCI Construction closed on CHF 700,000,000 each other.
Good news is the change in working capital requirement, including current provisions which is, income of over 1,000,000, whereas last year, we spent And so that's an improvement of the year of 1,000,000. So it's improvement to be found above all in tracking, contracting, approving, approving WCR by almost CHF 900,000,000, whereas concession essentially real estate hosting decrease real estate, make sure land acquisitions are undertaken in 'nineteen. At the end of the year, we both building 1,000,000,000 in building that we've revamped and we're going to resell immediately. Taxes, financial expenses up. Firstly, what, disbursed by GBP 300,000,000.
In January 2018, we cashed in GBP 120,000,000 on the partial reimbursement of the tax on dividend. We received part in 2017, the balance in 2019. The vehicle was flat in 2018. That contributes to the gap, 300,000,000 CapEx, CHF 2,900,000,000, but if for leases, actually CHF 2,300,000,000 up by 1,000,000 on that 1,000,000 increased half stems from the integration of Gatwick CapEx Gatwick's not a concession, but full ownership, Gatwick CapEx fall under that, item. Inves runs by concessions, close on 1,100,000,800,000 for VINCI Highways, the Sprasberg ring road for over 200,000,000.
The balance in Sierra, primarily in Brazil, mentioned by Vavier, the new Salvador term and then 40,000,000, Cambodia 40 in Portugal. So free cash flow from Q2 1,000,000,001,000,000,000 on last year. Next. Increase in free cash flow 1,000,000,000 VINCI and achieved 300,000,000 VINCI $360,000,000. The formation finished explaining the increase in free cash flow.
New acquisitions, $7,700,000,000 get out of 8.3. The balance actually feels like Cheah energy that I mentioned earlier and then dividend not much to add share buybacks. I mentioned those all that leading to debt, up less than expect a 21 point 7,000,000,000. Next slide, we compare the user net income with free cash flow. We can talk about the way of doing crunching the numbers.
Not everyone does the same calculation here. We count it the same way over the 5 years to show the trend. Good trend for the past 3 years and weigh above the 100% market next large balance sheet. So, obviously, major developments in 2019 reflected capital employed to your coincidence. So the number top being 50,000,000,000 against 38.3 last year with a major impact by Gaswick, but also other investments made by Concessions units, equity up by, 1,000,000,000 in debt, as we saw, 6% is the split between debt of 20 1,000,000,000, up 1,000,000,000 and managed cash of 1,000,000,000 up over the last year.
The CHF 6,800,000,000 emerged centrally at the holding company. And there was some cash in and foreign affiliate at the end of December. They weren't pushed up to the holding, so the pace had been she, SAEN Holding tops the SEK 4,200,000,000 mark. Next slide, the financial policy were extremely active in 'nineteen, the 1st part of the year on the on raising 1,000,000,000 new debt, average maturity of 12 years longer than what we did previously, average cost clearly above 2% after hedging. So these funds benefited from very favorable market context facilitated by our credit rating shown on the left outlook positive at S And P Monday, they may decide to upgrade it.
Our graduates will see the same time we reimburse long standing loans, costing us far more SEK 1,500,000,000 at SEK 5,000,000 Next, optimization of average cost that we manage to reduce it year after year this year. It's not quite the case, but almost in spite of the fact that on the one hand, We had to go into debt and currency for our M and A deals in the U. S. The UK, but we integrated the cost of debt of our targets, notably that Gatwick, Gatwick was already borrowing. EUR 4,000,000,000 in sterling at a cost that was markedly higher than which VINCI can access The, that's reflected in the chart, below because up until the 2018, the bulk of our debt was in euros.
It's not less 60% in euros. Obviously, euros are cheaper. Other currencies cost more. As part
of that, we have a cost
of debt that remains pretty almost flat and lastly to end fixed rates floating, variable rates. I won't rehearse the explanation that I give you every time. This is how we've been able to try down our cost of debt here, the year we some of our gross debt at the floating rate. It's a little less marked at the end of 19 previously, due to the fact that we set part of our debt at 1 year debt. So in fact, it's a fixed floating a short term fixed rate.
What we see to the principles that we said is a part of our debt that Matt is our treasury cash surplus is considered invested short term. We also tried to have that floating rate and the equivalent a year's EBITDA. That's how we arrive at these charts, which over time have proved to be a good strategy even if we challenge it, nothing's set in stone and we rediscuss it regularly amongst ourselves with the financial teams. Thank you.
Yes, that's good. Let me just wrap up and help you briefly. About, corporate social and environmental responsibility, 2020 and contracting. I talked to the order book and we'll see here. That's also, that's customary, fairly, unusual.
Increasing the order book to 10% of 60 to the 19 harvest of, order intake. This is true in all of our business lines, and it's also true in all of our geographies. Everything up. It's not like that every single year. Please look the slide again.
Put the slide again, seeing the uptick everywhere. The effectiveness is growth in contracting business in 2020, of course, growth rates won't be as strong as those observed in 2019. In Concessions, still very difficult to predict we think motorway traffic should grow in line with economic growth, assuming there aren't, further unforeseen events that could disturb the correlation between economic growth and traffic growth from other ways also comes with VINCI Airports, but the comparison base is now very high. So the growth will be relatively less than in 2019. The question mark, of course.
Not as strong for us, but for others on the left, there's a question mark necessary. There will saturated impact, and I'm thinking of the impact of the coronavirus. Sorry for you to come in on that point. If we tally up Chinese travelers, returns it to our airports. We're talking about a proportion of around 5.5%.
5.5 percent of our 255,000,000 passengers are going through or coming from China.
It's important,
triggered, but, a smallish proportion. Mainly, these travelers are transiting through Cambodia where a large portion of Chinese travel story. I'm also in Japan. A lot of Chinese tourists, going to Japan. When I say China, I'm also seeing Hong Kong.
And Macau. Since nobody can predict how the coronavirus will evolve. So it would be early days now too early to do any actual forecasting. I mean, we can't quantify anything except this in our business as fairly a modest impact for a couple of reasons. Firstly, we're almost not active at all in China in, other continents.
We're very a very, very low dependence on China in terms of sourcing, materials supplies. And the airport takers, I've just given you all these reasons. We believe that all in all, at VINCI in 2020. We should see growth in revenue again and growth in net income. So I'll just state in mind the board of directors met yesterday and decided to, go to the next shareholders meeting a resolution on paying a dividend of €3.05 per share.
0.79 was already paid in November of 2019. You observe this as an increase and 14% versus the, product last year. Pirellia because the payout ratio, which generally was around 50 and has gone up slightly to reach 52.5%. Wanted to make, a couple points. We all have to get accustomed to this.
So I wanted to wrap up by saying this, our account of our account of results aren't the only things this is about. For quite sometimes, we have to look at overall performance, comprehensive performance. We've got this, Linda, our manifesto now, to summarize it's summarized on the slide. This is, contained to to be seen in all of our offices and all our concessions, all of our production sites, and all geographies. This is a summary of what we feel is comprehensive overall performance.
The good news is we're making progress in all of these areas in the area of safety currently percent of our business units did not have any accident with lost time in 29 to 19. We've reduced what you've done for many years now. The frequency rate, which is one, way of measuring, efforts in the area of training, organization, design, enhancing job site safety. So we've made progress in safety. Love the progress and your diversity, especially, central diversity.
Our target is in a short term, showing up to 25% proportion of female managers, and our global geographies. Difficulty is we're starting for a very low proportion for various historic, and cultural reasons in our various business class. It's not easy. But I just, without telling the teacher, wanted to say, we are tackling this subject, in a determined fashion. We're also making progress in the area of sharing a, benefits of our good performance.
If you calculate everything we pay out, different products, different systems of profit sharing, different fully provisioning systems, but as you know, there's some collective profits are accessible for employees, and we're also taking concurrent everything proposed to our, employees. Via employee shareholder plan, test store, which has been rolled out. And, I mean, 90% of our employees are eligible for this globally. We can hold that plus some additional compensations, for some of our employees, such as the low earners. We ended up with a figure which is significant.
I. E. EUR 470,000,000. We fund, one way or another, through these various, arrangements to employees. Also making progress in another area where we're already well established as well established in agriculture.
So societal responsibility were proud of the 2019 is the successful launch, and this will be an ongoing endeavor of an operation we're calling. Give me 5. Every year, Give me 5. I'm gonna look to welcome 5000 youngsters, high schoolers, all of them coming from private education areas. Throughout France, we've focused on around 10 project education areas in France in each of these areas.
Every year. It took 500 high schoolers, and they give, getting 1 week internship, a strong focus on learning with to discover what business worlds are allowed to discover business lines. We show them accountants, people from education, production, There's supervisors, managers and so forth that discover often for the first time. These various, points in a company that's part of our societal responsibility to go find these youngsters where they are in locations, where do they have a personal network, Midland, to access the tech information and gain this type of experience, which will be fundamental for them to build their lives. This has been very successful.
This year. We'll reach our target of 5000 youngsters. That's an enormous figure. We're really rolling out this program high schoolers and high schoolers. Our target is to accommodate 5000 of them every year.
There are other components in this program. There's one chapter which seems fairly simple, but isn't. This is the idea that we're also, bringing in for some summer jobs, summertime jobs, and internships. At least 20% of these interns will be coming from these priority education areas, these difficult neighborhoods, people who are, studying and who live in these prior to education areas or people who don't have, an actual network at their fingertips.
So we need to assist these people so that they can contact
your companies such as ours. Previously, we haven't done this. Our summer jobs or interns that came about word-of-mouth. But And we tend to we're gonna tend to bring people from various other areas. Now we're setting aside some of our internship and summer jobs for the specific, priority education areas, disinterprevers to areas.
In 2019, I mentioned this earlier, we worked very hard on environmental, topics. 3 topics here we focused on. Couple of very important work on a great deal, pertaining to CO2 emissions, and then also the circular economy, which, is super focused for us And then a third point is biodiversity, water, natural environments to focus on the environment. This is the topic you can summarize most easily. We've done PDF work with all of our teams.
Now we can take a look at the dispute figure to collect you by 40% from CO2 emissions, under the scopes, we're looking for leather scopes 1 and 2. The timeline here is 2:30. The good news. Is it if you're just looking at 15 technology, it's oh, gee. If we just set up existing equipment that's available off the shelf from our suppliers today, If we implemented all of this in a very assertive way, very ambitious way between now and 40:30, we've already reduced CO2 emissions, but the percent wants to go even further.
So we've taken it from a minute to to bring it down by 40% or convince their own R and D and the R and D of our suppliers and partners will enable us to reach and target of producing 60 admissions by 40%. Now 40%, by 2030, on the subject that brings us to army neutrality for 2050. This trajectory called 221, which means limiting global warming, Alright. Add them to a hundred 2 degrees by the end of the century. The other piece of good news was we achieved all of this.
Once it's open to everybody's actions, enabling us to reach minus 30, which now is available today off the shelf, for our suppliers and partners. If we achieve this, we do this, actual figures here, we're talking about significant, insignificant CapEx, but we've first discovered resources for this. Of course, there are winning lines, it's loading lines, but all in all, it's win win. This is very important. I'm And part of the environment, we know this is is gaining speed in a dizzying pace.
We're gonna have
to be constantly global performance.
Global performance is not just technical internal performance on one side, environmental societal office, social and residence side. We should act like conference over a globe performance, or there's no performance at all. We're just in environment. We want to achieve this This is separated from economics. So the good news in the survey we did in 2019 was that we've demonstrated, yes, it is possible.
To pull together what we need, have environmental performance, and account performance going hand in hand. And that's not said often enough. We need to save the bar too many people who are convinced that. They didn't misplan it. We'll need negative growth.
That's not true. Save is planning it. Will mean finding resources to ensure both concerns, environmental concerns, and external concerns go our hand in hand are focused on at the same time. Otherwise, we've seen episodes such as the yellow vest, and there'll be social problems unrest and bad wood to bring to the end, beautiful economies. So it's very important what we're talking about.
There's more and more it's wonderful. Wading is tremendous position, and it's certainly an opportunity to revisit the way we do things, our process has the way we provide things, Now, of course, we're not only focusing, the scope where it's control of of 4N2, but we're also very aware that due to our size, and our strong presence, throughout the value chain, are such that we have to play a role as a leader in this area to bring along others with us. We we scope 3, up 3 more suppliers and also scope 3. Downstream. I'm gonna get you on the route to, rolls out, networks of electric recharging stations with hydrogen in the future throughout its network.
3 upstream, isolated construction, you know, that's, low carbon or also low carbon concrete, formulas, you know, also low carbon concrete means 64% due to emissions reduction versus usual concrete production. We use the regular concrete. So we are a leader in this area. We can influence others. We can speed up, factoring in this, requirements reduces CO2 emissions.
The, concrete, manufacturers, and cement makers. We've got responsibilities in scopes 1 and 2, but in major responsibilities, you could be driving force on the scopes, 3 or 4 up and down the street. We love this. It's very exciting. It's an opportunity to review all of our processes where we do everything.
It's interesting. Awesome people. I'm joking, but since, she is mainly full of technical, lots of engineers. I think there's a new subject, major subject like this one is related to the environment. We think this is a blessing.
We think it's very exciting to get down to work on it. I'd like to field your questions now.
Okay. So, follow-up, maybe 2. Thank you. So three The first I'd like to return to Slide 68 on the CapEx forecast for VINCI Highway Second Question on VINCI Airports. Thirdly, question on VINCI Construction, France, it was said that the operating margin, but slightly below 2%.
Does that reflect an improvement over large year as it incorporates the claims proceeds, some sensitive, job sites that we're losing money Whether we have the greater tariffs on the awards for 'sixteen and 'seventeen? 1518, you mean? And the forecast on Slide 68, as compared to the slide shown last year by VIN Sheeter in the annual office out. We had the motorway CapEx forecast that were slightly higher. So the problems with the negotiation of the stimulate stimulus, plan, Finche Airport's ANA contributed strongly to the growth rate is seeing an asymptote on its EBITDA, 6 5%, not very different of last year.
Can we expect an improvement for Portuguese exports and the cost of the, operating income for ANA. You're really at the cutting edge there. You're really Jean Christophe has done his homework. I think CF income 2019 is better than for than it was previous years. It's better So we're now well placed to begin to ensure flourishes the problems in the past are rather behind us.
Doesn't mean they've all gone because in this business, there are always some, but the worst is behind us. And that's built in terms of performance and conditions
that are more robust
and in this year's On the group of Paris, Jerome.
Do you wanna add
something on John V. T. V. She's in France? Hi.
So on Greater Paris, there were no significant awards of Construction at Greater Paris in 19 in 'eighteen award on line 'eighteen, one that said to happen in the first If we continue to respond to calls for bids for segment 182, and we're gearing up for the subsequent segments that will be of periods this year for which we'll get a response in 2122 that are the first major lots of line 15 West. Airports. Yes, sir. Nicola. Well, briefly, as you mentioned, the EBITDA margin has risen advanced these parts fee if that's the volume.
But there are 2 items. There's a key item increase in a minimum wage at general kind of sharing of a number of growth benefits, hitching on subcontramming that are shocking in a number of services that are up slightly more importantly, as you see, we're in a phase of modeling. There are also additional design survey costs for the two projects, improving the capacity of the existing port and preparing as a new Porte Montice, which, as we saw in Xavier, set was approved from the environmental standpoint and is now to be subject to the implementation of the MOU that we signed last year. It's no longer really a priority to continue this very significant growth phase in Brisbane. I didn't understand the question on the auto rates on the highway.
It says, mister Vida, could you understand the question? You didn't understand me. You're not trying to answer it nevertheless. We've just started group on this. I didn't actually understand this because the 3 drivers of the level of Motorway CapEx as presented last year in this year.
It's the motorway stimulus plan for the Strasbourg by Road, and there are no change is at least, no reduction. So I have to find last year's paper to answer your So it's more of a phasing of sequencing. No further questions. Let's take questions over So for questions over the phone, please call 1. My first question.
I'm JP Morgan. You have the full We'll finish the questions in the room.
WCR question. And then a question or question you mentioned is more and more important chapter number for your U. S. With WCR first, positive flow this year. I hadn't had that in the last 3 years.
Understood in construction activities. We set a positive impact on cash flow for when it was closed. Did your questions any nonrecurring in 2019, or was it due to previous years that it prevailed in each of our how do you get things done in 2020 in this respect? Question has to take the United States. Energy, urovia did fairly big sized acquisitions in the US there.
We're doing construction. Would that be meaningful? Secondly. You that's a profit now. Your sides, your market coverage is Philippines Southwest in the US.
We talk a lot about opportunities, for instance, in Maryland, would you consider this? I've heard out of the 38,000,000,000 in our contracting business construction. If you see our versus growth, the phenomenon go the other another direction, usually, in other business lines, which is to say part, synergy construction activity, particularly, general contracting, has negatives of the CRM requirements. We're not negative or positive, but requirement. So when Zigro generally that improves, WCR in theory, but another portion of construction at Eurovia Vista Energy Group have genuine working capital requirements.
So you've got to look at your fine change analysis United States now. There's no current project. Do anything with the different size of the US. First, for a reason, the business of construction in the US is a local business. No more.
P and G, a fairly hazardous business. So it's not our intention to discuss a great deal of money. To acquire positions there, the plus would be, maybe it's gained root in that given state. That necessarily neighboring kids. That ties in with the third question, when we response to compression, deals in the United States.
We absolutely have to be able to make sure that our tracking activities can, be brought up a loop necessarily active alone, but having to be active, it would be risky in the US to be fully And then on outside constructor, that could be a settlement package. When you're in a portion of the US, one corner of the US, you're not necessarily Dean from Genimetry, I've been active elsewhere in the US here. I sincerely have a full understanding of the local acquisitions of suppliers, subject to teachers, either unionized, or non eyes and so forth. The country is almost saying of regulations and business ecosystems that are quite, different each other. That brings me to the 3rd point here, the strategy.
Yeah. 1 for the last full question, the statement. The strategy is to really says that we win when we're we're gonna reduce coverage. That's how the 2 cover lane activities were present in that portion of the US East Southeast. We moved in that opportunity to add to a a density presence there.
It may be counterintuitive the temptation of a lot of people is to put their flags everywhere in the country. It's not successful in this business line. It's better to at a more dense coverage where you already exist rather than giving to the temptation to point your flag all over the country. It's not always true in all business lines. Sorry.
I'm not gonna go into further detail. One part of benchy construction can see external growth if not, big figures involved here. They could develop everywhere and thinking that the high added value technical, venture construction or society polish questionnaire. Would you like to add a point? Is that okay?
WFR or I WCR? Microphone is on. I'm working capital requirements to answer your question. There's no nonrecurring items announced specifically. It's just that we recovered some of the, that we lost to service, over time and various previous, physical periods in job sites in France, particularly.
And we got a negative effect of the round, which is developing business in actually developing and actually, you caused that to see others. I don't see our payment times take longer than you have a kind of anywhere. Oh, the Region Russo. From who do I've got 3 questions. Linda's first one on Euro.
Yeah. Margin. Growing in 2019. It seems to me it's down in, the second half versus second half of twenty eighteen. Can you explain that?
Okay. What's the impact of, China and VINCI Airports? Heard the percentage of Chinese passengers in a different proportion. In revenues, it takes account to the fact that Chinese send more in retail. A last question, payout.
The 2.5 percent, can we consider this as now normative? Can we expect an improvement or return to 50%?
Oh, let my colleagues respond to the first two parts of the payout. But please, John, we've always said that the payout rule of 60%, introduced when we acquired ASF back in 2006. In fact, in the makeup of a business portfolio, at the time, less concessions and more contracting today. So as we, develop concessions business, it was natural to consider a slightly higher payout people who are pure players in concessions generally have payout ratios above 50%. We're beginning to make a step forward.
So normally, we shouldn't, contract, but if we continue to successfully deploy our concessions business, It might not be the last step we take. Right, Christian. Oh, you decide. That's the explanation, right? Yes.
I don't find your figures on Eurovia. I don't see it turation and address in H2 and if it was one of the, I mean, there's nothing significant. That's not Euro here, H1 generally is disrupted by weather conditions. I don't see any reason. I mean, these aren't things that look, I'm being surprised by the question.
I don't see any material reason. For any lag if only maybe possible impact of weather, conditions, but then it needs to be looked up by geography. Because, of course, it varies. Chris Johnson, it's not what I have. We're talking about operating.
It's up in absolute terms and, input to achieve. So that net income, there might be other factors, the goodwill impairments, disposal capital for the units up and check for the income. So Chinese passengers the consumes only 5.5% in response to your question, we do calculate passengers without that the Japan, 9,000,000 passengers, we have the detection rate of only 14% extra They probably spend more, but, in our accounts, it's less because only for 3 percent rate and it's nonconsolidated H Link. And earlier, we have 4,500,000 of Chinese passenger there. The rate is 70% higher, but they spent less than the average ads.
Why detailed calculations are less significant and represents about 5.5% that it's long term quality traffic because it grows faster than the average over the mid- long term. But one off part of that traffic so that we don't know the duration will be much more impacted this year. It's just over 5% of our traffic level. So that's where it's interesting to really look at the long term perspective and the crisis that we're experiencing today, the others before the end of the concession. What's important is to manage them with great flexibility whilst bearing a mind that once the crisis over things go back to normal because we have this long time horizon.
Yes, I've got 3 quick questions. On health form appreciations on the Yep. On the non sufficient contract and possible compensation that you might negotiate for you. So second question, last year, you mentioned, difficult relations with your clients. With granting completion contracts and negotiating possible adjustments that would be required I'd like to note that the relationships have things calm down.
Now we're still observing attention with clients on these subjects. 71. Last question. It's 3rd and last question. How are you feeling?
On changes in operating margin in all the contracting businesses, in 2020? I'll let Nicola answer on that. I said that last year, but clients relations with clients. Maybe slightly more tense in contracting, if you recall. Not concessions which you just mentioned, which isn't a safe and relief in the sessions, but that sort of pragmat's time.
That's what my contract is. Everything things haven't really improved or worsened. It's so supporting event, and do we have to be very careful in managing the contracts? We're probably not the very best in France in contract management. Some well known competitors are, ahead of us.
Probably need to be a little bit more clever in our contractual with the Ortiz. Not just talking about particularly reaching the contracts and making good use of our clauses and contracts. We're talking about having excellent traceability. If any and all events didn't necessarily impact, to serve in some way, outside, but to keep track of everything so that we can then have, reasoning. And we also need to deal with the matters as they arise and not to postpone them, rush them into the carpet and await the end of the contract.
So it's, we're we're learning as we move forward and we adapt margins. Well, honestly speaking, I don't know if he's still in charge of vessel energy. Can you ask for another increase in margin in the short term? No. Maybe one day.
You did a beautiful, made a beautiful effort. We asked you politely last year. So we'll let him have a little breathing script now. Drove you. Maybe, get you pressured slightly.
Construction. Yeah. Definitely. So overall margin of the construction should go up in 2020. Regarding Notre Dame De Laand Nicolas briefly, over 9 years, in 9 years, we worked very hard to execute the contract.
We've had about a traffic point from 3000000 to 7 point 2,000,000 fast pincers. This was the strongest, traffic rates in France. Service showing GDP. It wasn't a direct license. It wasn't a direct link with non Italy, and that can create it this way.
We continue cancellation at the earliest would be end of 2021, of opening a new contract. Okay. Ongoing investments, smaller things, parking areas, and so forth. Arabia, we're doing the prevention of the centers there, air airport, which helps air bus because the Excel could land there now on this has generated jobs as well. We're asking for dialogue now.
This is the right time to have discussions. To secular compensation for cancellation under administrative law in France that depends on the value created, the lost amount and so forth, and fairly complex calculation, 45 years worth of contracts that are removed from us. So discussions that are possible. It cannot be they're not easy discussions in case one take a figure the way that it ends up discussing, you have to forecast growth and so forth. So we would like to be, actively involved in his discussion with the government on this.
Okay.
Getting fruits to Red Flues.
I was wondering. Would it be possible? To optimize cost of debt, for that WIC and what might the timeline be to do those. Then I've got a second question. This has to do with, external growth, either geographies or business lines, with some knowledge already, but do you have any additional new information on possible external growth?
Then I got a last question. Elections and, roadways. Why in 2020? Are you seeing There won't be much of an impact for the municipal elections, versus how things are usual usually. First of all, it's John Madwig.
It's a shared interest to to share with JMP And VINCI Airports to optimize if possible. Cost of debt and optimize everything else as well. We've got a great team. I'll be meeting with others, next week, which is people in the finance department they issued. I've been here for 30 years.
That was in July of 2019. I don't remember the rate, but it was pretty good under 3%. Sure. Talk to the section. We'll take good tickets, Grace will enter remained low and very low.
As a refinance existing debt, we'll be able to optimize. We have to get the credentials removed from Gatwick people forget for Treasury. But, if you're highly professional people, we can optimize the acquisitions that they've been doing this and continue to do so. That's my answer. What about the elections question on this?
It's always difficult to forecast the future, but we do not expect a major drop in public works activity in France during the municipal elections year of 2020. Usually, it's countercyclical, during municipal elections. Wanna explain the reason. If you look at the long track record, things can fluctuate. In 2014, I was able to get a drop to look back farther, on average, it's less of a drop.
So you can do some very good drops and then some lower drops during elections here. Now in another final election, Michael, if we had a second election, this is another way around next year, we'll get to back to them until the auction is off to law. So the proportion of public contracts, the public parks is lower than to look up as municipal governments, it could be an impact. But at 3rd point, There's some or structural card effects. Firstly, Local governments have fairly good finances right now, boosted in Australia.
By proceeds and property taxes. Furthermore, this is a real difference versus 2014. All the, various shared structures that were being set up in 2014 shared by Ms. Audi are up and running to full effect in 2014. Our clients were getting reorganized payments together and so forth until that period, they weren't launching projects, not many.
So that's a positive baseline effect. Furthermore, it's a great project in these, urban areas. Better long term project with structures that are less sensitive to political changes. That's, the various reasons resolved. Plus, we've started the year with great momentum.
Thanks to the order book at Eurovia, for businesses for the beginning of the year. It's gonna be quite active from Since my next order on orders. I can't. External growth, if we'll vary from business line with an overall answer, would be in contracting businesses. We're working good stuff.
If we can't just buy something because it's a beautiful company. We acquire it. And first of all, we've worked hard to get a full understanding of our corporate culture and the culture and habits of it. Entry. We're going to buy it.
So we can't just develop everywhere. So every butterfly has some priority geographies you have really likes, Canada and the US. This could extend further geographies in the future for the pandemic. It's, trying to, get greater density of our activities in those areas of the world, Europe, yeah, won't be going to China or elsewhere in Asia. It's gonna see energy as with the same point.
They they did for significant development through, in the United States, the prime line. We're in the information process It might take a few more years. And once that's complete, we can do online too, possibly, roll out other VINCI energy expertise, in that area of the world. So we're doing this stuff. Rational is exactly the same as for concessions.
Concessions, especially air quotes, here our policy is we study 350 degrees. We look at other things. We try to be free from active And we're then able to go to many geographies. Assuming these geographies are secure, in terms of, legal and political stability and assumed that geographies aren't, ethically problematic.
Questions over the phone now, please. We have a question over the phone, please. Okay. So it's my turn. I have 3 quick ones.
I understand there's a new airport being built, a phenomenon set between 2023. Is there gonna be a no overlap there with your activities in Cambodia? Secondly, I'm Sach. Is there a date on the dispute? But, thirdly, you see more confident on VINCI Construction margins when you're going to hit 3, 4% margin for VINCI Construction.
Well, couple of years of country work for several years now on several places. There are plans that are moving forward. They're evolving. The date that you mentioned seems very soon. Next, unfortunate, I'd say is what's happening today in Cambodia is the the stoppage discontinuation of relations with China difficulty to get is material.
So it's really not that much because of the day can't put here. It's really just to, address the situation for an economy that remains rather. A macro level could be quite significant. I'm working to help it because in the, welcome at Cambodia, you know, thoughts, we have all necessary measures, technical health, to, ensure the activity lies behind what's going to happen the next few years, but there's nothing imminent or looming. And in the meantime, where facing up to strong recent growth.
We're extending the runway at Tianuvique with the MENA and VINCI Construction earthworks, the airport's grown over 100% last year. On the land stack, it's going to be long term effort that to say this type of dispute that you're referring takes time. The good news is that the contract execution can take it's our GTS concession there. The second section has been put in service. The traffic, as they were paying off, it's the international augmentation.
So it will take several years and for which we're obviously vigilant and we're following the case, but there's no particular worries aside from that takes time that we continue to operate as concession. On the construction margin, it's having a few years' time to answer your question. Thank you. Next, questions over My first question, if I may. On my way, traffic, you ended the year up 2.8% of group level.
Lexus p, double r, plus 1.1. Can you explain what the reasons for this outperformance versus, 2020 traffic, you say that you've done this slow rate growth. Can we expect to have as much as the the growth in, France take some question on airport traffic, levels given the limited capacity of A And A. Can we expect to make a slow down in traffic, levels in, 2020
at Gatwick, given the Brexit
and the growth level in 2019. Can you tell us what your outlook is for 2020 final question here. I'm on the percentage of your order book. Going to the local municipalities? Traffic versus AP, double r, traffic versus AP, double r.
I think we have a better baseline, effect, yellow test that is at the end of 2018 early 2019 than AP compliance. And so we're benefiting from that. Country to the baseline, if it's happening, absolutely, Franco, Spanish trade is better than, Frankfurt, German, trade, and ASF is better than HP. A lot is benefiting from that effect. I mean, so trend going into 2020 is is confidential, but I know this converge in line with the economic both barring any unforeseen event.
We can say that the year is off to a good start. On airports. Yeah. Well, the paradox, one of paradox of air books, not long term, is that highly constrained airports can have strong growth rates to facilitate operational Cape at, now highly constrained 16.6% in 'nineteen also in Lisbon where we had over 7% for a call in the Zicotran. We're currently investing the existing Lisbon airport on the runway to facilitate, in conjunction with a Portuguese air traffic that that's also invested to optimize the number of, short term flights.
I mean, there's additional capacity in your route thinking. But not the same level as the passing times very high double digit, but there's still some scope we're working the 3 year before the opening of a new airport to continue to optimize capacity. Question on the percentage of the business Sapality. Look, if I've got the question from Katie Patras, respond to his question for Shere Hoem. In your business, what's the share thin sheet construction that comes from local government.
Could you give a figure be what? 15, 15% for the new municipalities. You have a bit more 20% I'd say. And for UPI, a third. So that in summary, Since you're not physically present euromunicipalities, that's about a third of French eurovia business.
VCF, it represents 20 percent of the business. VCF, but VINCI energy, I think it's pretty modest So all in all, if we did the exact calculation that we never do, we did a test, 15% of total contracting. That's for France.
Evercades.
Thank you. You've not.