Good morning. Good morning to you all. Thanks for joining us this morning. Before you all head off on holiday, a few further to get started. Let's have the first one.
So this is, the the the the earlier one was Gatwick Airport. An aerial view of Gatwick. Yeah. So cue the photographs, the aerial view of Gatwick, the cover page, anyway. So here we're in Belle Grades, Belle Grades Airport, the airport, which Nicolas Nogbaou, we received the French president, 2 weeks ago, and we're able to see that the French president speaks, Serbian fluently, free flow, lanes, 2 of, no interchange that is successful.
And it's a first, not just to the, free screw toll, passengers, but also on the Ulyssa free scheme by reading the car registration, plates can, invoice you directly and if you don't, have a telepath as long as you've provided your bank details. This is a fine, management contract for free flow transactions, customer service on the M50 Dublin. Ring road, very busy stretcher road, about 45,000 vehicles per day for a local partner for us at an 11 year contract amounting to some €373,000,000 peer service with IT here. This is an unusual photograph of VINCI Energies. It's a new driver assistance team for these incredible cog and rack railways in, Switzerland, the pilot has spannum that has been operating, as you know, since 18 89 this, rag railway, very steep, of a great dim to up to 48 48%.
That's about 30 degrees for those of you who have some knowledge of trigonometry. So that's a very steep gradient. Next, slide is an artist view of a fine contract of $2,700,000,000 for the, design and build of 27, lighter rail in Ottawa, teaming up with our US partner, Keywood, and going to involve both, Eurovia and VINCI Construction. That's very good news next. Slide is a view of the well that will be the intersection of lines 1415 of the Greater Paris Express very close to the OC Institute, south of Paris in one direction.
You have line 15 and the other line 14 and in the middle, the, the street station. And then the final Chart is an artist view of our new headquarters, interested to VINCI Real Estate, of course, and that's, to be inaugurated during the course of 2021. This is an actual photograph taken by Ma'amilia Fultz. Who doesn't, just have accounting talent, but also take some fine photographs this one day back to last May. It's progressing.
Well, there are another five stories that have been added. It's entering full scale engineering. So this, summarizes what we've achieved during the half as per usual I will give the introduction followed by Christian who'll give you the details on the financials and a few words on the outlook for 2019. So first half of twenty nineteen, weaker motor costs, strong growth in business, up 10% and that VINCI Airport continues from benefit from good momentum in passenger traffic, Vincio Turude has had traffic levels strongly impacted by various events more about that later. But nevertheless, has stabilized its traffic, levels at the end of H1.
And in contracting sustained organic growth across businesses and impacted the many acquisitions paid in 2018. Not shown on this slide. It's very good. The free cash flow generation, but of course, Christian We'll tell you more about that in due course. Geographically, all our European positions are up well.
Africa, as we indicated, has turned the corner is up significantly. That good news because as you know, Africa historically has, generated greater satisfaction on average than other countries in terms of construction. North America up hugely, but of course, that's the impact of the 2 major deals in 2018 at VINCIenergy in Eurovia, and then Oceania, Middle East, Asia, made up of Middle Middle East and Oceania up well, but the end of a few major projects in Hong Kong which, all in all, lead to a slight cyclical downturn in the area. Going into detail, Autoroutes Highways broadly, stable, slight downturn 0.4% for cars, plus 2 sent for trucks. It's become hugely complicated to make a half to half comparisons.
There are calendar effects, whether effects, and there are various, social, movements of unrest, not just the yellow vest, but you'll recall last year, we had, farming demonstrations that disrupted at some on the ASF network during the first half. Conversely, there was the positive impact to French railways that brought some additional traffic to the motorway. So it's very difficult for us to make comparisons And I have to say that the fact that we end the half with, basically, traffic, that is flat is for us, good news. Big mobilization at VINCI Autoroutes and the summer holidays for the service, there is an opportunity for about 1500 of our employees on a volunteer basis to rally take part in, events in the service areas, as people head for holidays, you lead 30, which offers a 30% discount for day to day users. Commuters who commute over 20 times a month from, from home to work about 40,000 passes perch given, if you'd rather sold to our customers at estate, new trial of a Peugeot Autonomous vehicle, Peugeot 3008, that has in full autonomy driven at a 130 kilometers per hour, not just throughout toll gate, not going through the toll gate, 130 ks, but, also in a construction works area, And it was, able to safely pull over on the hard shoulders and working with her shoulder to develop the vehicle autonomy, focusing now on VINCI Airports, strong activity at VINCI Airports that will have managed, €2,600,000,000 out of 6 months taken into account the consolidating non consolidated to the airport's dynamic passenger traffic increase.
You can see bottom right in this slide. Portugal 7 point 2% Japan, 6% UK, up 33% Chile, up 11.3% France, 10.1%. It's even a lot better if we just, focus on Nance and Cambodia. Still reaching very high levels at 15.5 percent traffic growth on the heart. This performance is as a result of the opening up of new routes and routes, which for the first time are connecting our airports with capitals or larger global cities.
For example, we've opened Lisbon, Doha and Qatar, Lisbon, Washington, DC, Osaka London said it's good traffic, with good retail, business, good cost containment, the integration of Gantwick Bellgrade and the airports from AWW allows to deliver fine revenue growth and the results you see on the slide. In other conditions, not much to add. No. New assets brought into our portfolio books, you can see good growth. On the contracting front order intakes up across all businesses on a 12 month rolling basis, we are significantly businesses.
It's in part due to recent integrations, but also a resumption in organic growth because now we achieved organic growth of 4.6 percent at Vee over 10% at Eurovia and 6 0.1% at VINCI Construction Focusing on VINCI Energy. Well, as I said, it's accelerating its organic growth and what's more benefiting from the input of recent M and A deals. So on a like for like basis, we achieved this increase of 8.8 percent in the revenue. VINCI Energies now, achieving significantly large part of its business outside France West, 6 54% outside France 46% in France, VINCI Energies, benefiting specifically of the good trends and, energy infrastructure segment, but everything that revolves around information technology and communication. It's also improving.
It's operating margin. That's the legendary discipline in order intake and good M and A deals. Always a good, crop of, acquisitions on the heart. These are small on medium size, some, 20 companies will have joined or will soon be joining VINCI Energies over the next few weeks. Eurovia, things going very well, as I said, strong organic growth, particularly in France on this slide here, France 12.8 percent organic growth is obviously a pre electoral year impact, but we have every reason to believe that the party said to continue, perhaps not the same growth levels into 2020 given that the 3 levels of local authority is have we gained some financial leeway, thanks in particular, to additional income from, transferred taxes.
And so we're no longer in the period when municipalities were stretched in terms of gearing, they've returned to higher, debt, leeway. So we have the impact of pre electoral view that's better than expected, and we expect that this could continue into next year. Of course, Eurovia. Benefits from the acquisitions in 2018 and the taking over the industrial activities of Lane Plant paving in the US allows us to double our size in road construction in the US. Let me remind you for the 25th time.
I believe that for seasonal reasons that are obviously EBIT performance in the first half, of the road business in no way represents the annual performance. What do you need to know? However, at the end of the half, We have a performance that is superior or be it negative than last year, but this allows us to confidently expect improved EBIT margin of year over year. At VINCI Construction, we still have our work cut out. There's a number of reasons to be satisfied at Sallitan Shefresina, a specialized civil engineering unit in Africa.
As I said, what business is picking up stronger than expected in the UK has been successfully restructured and is doing well in an environment in the UK that's very disrupted with the bankruptcy of Curillian of inter serve the difficulties faced by Kyir and many others and a pretty uncertain climate, notably regarding the future or not of HS2, the big project, where there seems to be a major question mark whilst, awaiting decisions of the new government, the new prime minister, business sustained very acceptable in Central Europe also in Aspect. In Aspect, New Zealand, we've just, closed a great deal about €1,000,000,000 with the local partner. €970,000,000. And the large projects business that went through a low point that was looking for new deals that's, done. We've just landed 2 major deals in North America, one linked with euro here, which is the Ottawa Metro in partnership with Keywood, our partner, and the other EUR 2,900,000,000 linked with our partners ACS Cargados for the Department of Transportation of Virginia.
However, conversely, oil and gas is still remains very challenging, both in volume and profit, terms. France, paradoxically, there are regions that where things are pretty strained in terms of number projects available on the market. Very sharp drop in, public infrastructure projects long by municipalities and the Paris region that remains active civil engineering, thanks to the Greater Paris project, but highly competitive, be it either full for buildings or civil engineering or generally without focus on any particular project might sense is that, relations are perhaps slightly more strained, today than before, between the, principle, the owners and contractors that we, are difficult to find agreements in, delivering our contracts regarding the inevitable contract modifications, the need to have revised prices or to develop riders, 2 contracts. It's difficult to do that and they could be increasingly run of the river with our clients, and that of course has an impact on us because it, postpones the possibility of booking our income was by discipline. We booked the corresponding, expenses, so EBIT for VINCI Construction in no way reveals the final figure for 2019, which is set to be close to that booked in 2018.
That is 2.8%. Let me remind you, possibly slightly revised downwards, VINCI Real Estate VINCI, E Mobile Years is holding up well a year ago. We said that we probably reached the peak of the residential settlement that's happened as a slight dip of 6% the number of pound spoked, but for, positioning reach and reserves and increase in the value of these bookings, commercial real estate doing well with offices, hotels, plans, notably in the big cities in Paris and in Lyon. Lastly, as we said, VINCI Real Estate has finalized the purchase of the 1st 49% of Irobot that will complete our offering on, more affordable housing in Southern France, in particular, over to
So I'll try not to repeat what Xavier has said on revenue to start off with, growth in the first half. Reflects extra revenue to the tune of 2,000,000,000, which is far from negligible and organic growth. On that will account for 1,000,000,000, which is up 6% in terms of organic growth. Acquisitions contributed approximately an additional 1,000,000 from acquisitions made in 2018 that will have the full impact in 2019, namely the air quotes, Vogue grade, LWW, and, other airports, there's also a prime line in significantly in Walloon and Singapore and other acquisitions. This year in the first half of twenty nineteen, contributing approx, well, half of this GBP 700,000,000, basically in this mainly concerns of IC Energy, which has made approximately 20 small acquisitions, mainly in Europe, in France and in Benelux.
There's a currency impact, which is positive this year, which is, a novel tea, the dollar is up. And this produces, 800,000,000 accounts again, looking at geographical areas. Next slide, France was robust with organic growth of almost 7% representing approximately 800,000,000 with strong performance, as Pepe said, at Eurovia, also at Voci Construction in volume terms and Voci. Entry to a lesser extent, real estate plus 20 percent, the strong growth in, corporate real estate. Xavier was referred to Akshayano future and headquarters.
And with residential property plus 13%. We have the production with new residential programs that have been launched, which are now entering the production phase. So things are moving ahead into nationally a significant growth, 1,200,000,000, mainly due to external growth. As I said earlier, looking at our country, the strongest drug countries, Africa +30 percent impacted by the recessions in the previous year. North America, almost plus 7% Europe with 1st +5 percent Germany, 7% UK, 4.4%.
With the decline in Asia and Russia, with the completion of some major sites, and looking at results I won't go repeat what Xavier has said, but, I'm just going to open and anticipate the question to what would be what's impacted by 5 16 on consolidation of liabilities financed through leasing. It's, almost nonexistent for, in Europe, but we'll look at the EBITDA, we'll be amortizing these assets. But in terms of an operating income. It's almost 0. It's an impact overall impact of 1,000,000.
So, a very small indeed. What else? Look, I mean, growth for Placie Auto Water, I see Airports margins at Placie Auto Water has improved due to Good cost control, operating cost control, the fact that we have stable traffic, increase in revenue to plus 2.6%. Also, if a mix given, but, heavy goods vehicles are up also, light vehicles down 4%. We had a seasonal impact that was favorable because the winter was very mild and also some insurance revenue.
Looking at Vasey Airport, you can see a flattish margin due to dilution consolidation of new margins. Whose margin is below the average margin for FFC Airports, basically, Belgrade and WW. And I get that. Gatwick is in line with the average margin at Benson Airport. If I see real estate, margins down, it's a very strong seasonal factor.
In March. And so if I see moving in due to the fact that last year, the beginning of the year, we had, a profit sharing in a high rise building in Medifast. That was, a nonrecurring, it was a week full profit. That's our NLG, margins up close to 6%. So perhaps the energy has done quite well year over year, has a good margin, which is not representative in the first half but when she's up with positive contribution by from France, which is usually not the case usually in the first half, you remain entities are down because of fixed costs.
This is not the case this year. And we have consolidated the, North American and Canadian, Circularies which do not work during the winter. So we're down overall, but, less so than last year. And VESSA cost structure, and, well, obvious discussed this at the length. Income statement, looking at the different items, everything's gone more or less in the same direction for 89% up on last year.
Looking at, EBIT and, current operating income, with company's consolidated, the equity model, And the practice applied for is is 16. Well, we have more staff members who enjoy our profits, sharing schemes in to learn, but with Seasonal, we have contribution from companies consolidating under the equity method, which are also improving due to strong results in Japan. In the nonrecurring items, well, there were very few nonrecurring items, and they were not many last year. Looking at financial income and expense, it's, down, because we've increased the debt load. So it's quite normal that we should be paying more interest expense.
But it's a combination of factors. We have reduced, borrowing rate for the corporate business versus ASF and Coffee root, quite significantly because our new bond issues were launched under exceptional terms in terms of, coupons and we have have launched for our, acquisitions in institutes in US dollars and, the sterling costs, which clearly are higher than in euro. And then we have a volume effect, which is due to external growth and the consolidation of newly acquired companies in particular Gatwick and all this leads to a rising interest expense to the tune of approximately 30,000,000, which is not really significant given the debt load, conversely, where the negative impact due to the opening of the new the 2nd tranche of the Lampsac, the ring road around Lima, which was commissioned in June 2018 and from June 2018, we no longer have the interest expense reflecting this investment So it has a major impact, therefore, on the operating income to the tune of approximately €20,000,000 That's what we can say on financial results. Tax is up, but not very much given the results. And I recall that the previous year, we benefited from the CIC EDOCE tax credit and non taxable tax credit, which has been converted into, cost in social charges, but we have to pay tax on this reduced social charge, which has a negative impact, of course, on the amount of tax paid by the group, with net income up in volume and per share by plus 4.5%.
And the and now looking at cash flow, EBITDA was up strongly by 23% But there's an IFRS impact, which is significant, and excluding that, there's still a 17% rise in EBITDA, and the IFRS impact is approximately 2 per €250,000,000. The EBIT at our margin is an additional 40 b p, in particular, 5 c auto wort. And in the contracting business, we'll have an increase of EBITDA, which, including I, ifrs, up to 17%, from 2.4percentto3.6percent of revenue, working capital, working capital requirements, is, has a seasonal fluctuation, but less than the last year, up 200,000,000 contributing to the improvement of free cash flow. Trax pay is up because as I recall, January 2018, we enjoyed the RIN attacks of reimbursing, nonrecurring, 116,000,000 due to the cancellation of dividend tax, CapEx, slightly by 50,000,000 in particular at Vaseke Construction with the Gatwick impact gap the CapEx on Gatwick is included under this item to the tune of 1,000,000, and we have slightly less CapEx on vaccine headquarters because we bought the land last year. And, of course, the investment, and truly it's very important, 8,000,000 in total, including Gatwick, 7.7 for Gatwick alone L GW.
This reflects 7,700,000,000 sterling. Account exchange rates at acquisition. Free cash flow before financial investments is positive. To the tune of 316,000,000 warrants, it was negative to the tune of a 136 last year. Over the past 10 years, I don't know if you have had a look at this.
It's only happened once in the past 10 years that free cash flow is positive in the first half, versus the given the seasonal nature of most of our businesses. So it's pretty exceptional, even though it's a relatively modest amount. In absolute terms given what the group generates over the year. Looking at dividends, we continue to apply our well known dividend policy and capital increase in the plus 6. Half of this comes from the capitalization of a share loan for Lundya Gatwick.
So the impact of LGW at the 30th Jan, is not 7.7, but it's 7 point €2,000,000,000. The balance sheet, which is the next slide, shows a strong increase, in capital employed up to 1,000,000,000 versus 1,000,000,000 and 1,000,000,000 at 1,000,000,000. Strong increase overconcessions, over 42,000,000,000 and also contracting to the tune of 13,000,000,000. If our 16 impact accounts for approximately $1,700,000,000 out of the $50,500,000,000 capital employed, looking at assets, not much to say. We have an increase in the debt load gross debt, gross financial debt, which is getting close to 1,000,000,000 with the decline in cash due to seasonal effects and also given that cash does no longer generate, so I'm not sure at all.
So if we invest short term, then it's actually a cost, so we've sought to reduce it and to conclude the main financial transactions. In the first half, I recall our ratings a minus S and P a 3 mood is, S and P finally get very difficult not to upgrade us. So we're still a minus. And we have executed some transactions that I've referred to on the bond market in the first half. We issued 4,200,000,000 of new money on the bond market, average maturity of 11 years.
So we are extending gradually the average maturity of our debt load, and we need to reduce the cost of debt to 2.08%. Even though 60% of the gross debt load only is denominated in euros without the case previously because our we've had 80 percent of our debt in euros previously, another remaining 27% is in dollars and the rest in sterling. And we have an average cost of 2.08. The debt as you can see on the chart bottom right, so continuing to decline from year on year, but I think we will probably reach a floor serving me. That this is 800,000,000 sterling, a 2.6% an average and $1,000,000,000 $1,000,000,000 at 3.9%.
And an issue for lump in Gatwick, actually lgw expanding the 1st and second half, 300,000,000 stand in sterling on a 30 year maturity. An excellent, coupon. 8 or 8.8.9 percent. Cash, we're reducing cash, as I explained. We still have a 8,000,000,000 in available credit lines of, thank you very much, Christian.
Thanks, so the landing point for 2019, everything you've heard allows us to confirm the guidance given 6 months ago. On the motorway business in France, we expect to see traffic growth in line with economic growth subject. Of course, not because we don't suffer additional exceptional events once bitten twice shy growth at VINCI Airport also that within 18 comparison base that remains high. So the growth rate will be, yes, very significant, but lower than in 2018. In contracting, we strengthened in our guidance by the fact that the order book at the end of June is sharply up, as you can see, across businesses, order book up 11 percent at the end of end of June 18 with a split France outside France.
3rd benefit international, which is consistent with our strategic guidelines. So growth in concessions, will deliver growth in contracting, not just organic growth as in the first half, the full year impact to the acquisitions in 2018. So we must, leverage that, good climate in, volume terms so as to continue to improve our margins, all these leaders, to believe that this year, 1 again, will deliver further growth, both in our revenue and net income, which led the board of directors that yesterday. 2, decide on an increase in the interim dividend of 7 9, euros, per share payable, early November. 2019.
That's up 5.3% over last year. Thank you. We are happy to take any questions you may have. Jean Christophe. Jean Christophe, do you want the mic?
It might be because maybe we would get that deliberately. Not to give you the mic. Thank Hello. So three quick ones, if I may. You mentioned the landing point in construction.
It was said that the goal was to recover the margin at 2.8 percent, from, bottom up, does that include the remedies, the claims, improved climate in France? It's a bit challenging that'll be for residential construction. 2nd question, the, EBITDA margin is that of Anna is that up? And then, order of magnitude of the growth in traffic of the Duplex A 86, please. Answer on your first question, that's not the way you must look at things.
I mean, a construct site, a construction project never goes according to plan. 4 reasons that are sometimes attributable to us that we recognize. Sometimes for reasons that are attributable as you change the number of things or the environment, nearly what's happening in the sub soil. So a project, a worksite, you can have very sophisticated contracts. There are all the things that need to be discussed during the life of the contract when you're, with clients, let's say, open and accommodating, well, you can, solve, settle those, modifications run of the river and the margin.
When it's slightly more tense with your client, then you'd devote more time to settling them. So our anticipation on booking a number of additional revenue on the number of projects was disappointed here and there. No names, but it explains it since we're proven. And we book expenses as they occur And, when that income is agreed with the client, there's, of course, a lag over time. I don't think we can talk about claims.
It's really just a discussion on possible, changes that are inherent to our business on The 2 next two questions, the ANA margin. Could we disclose that? Chris Johanna discloses, while we're only 2 we say it's flat. I mean, it's stable. The margin's pretty much flat at a very useful level.
And your 3rd point, on the AAD 6, traffic levels, we don't disclose. We don't. Yes.
Whoever has the mic. Can I ask a question? Royal Bank of Canada, 3 questions. Number one motorways, and you had a strong improvement in margins. Can you please recall the percentage of payment that's done on an automated basis by retail customers, you were talking about the freeflow system, what are your ambitions in terms of new, payments, revenues, and a more technical question, If I know you were talking about insurance revenue that contributed to EBITDA, could you give us more information?
And also on a construction margin. Very happy to hear that it's flat on for the year. But can you explain what is holding back the margin. And looking at the order book, do you hope with the major projects to, improve getting back to a previous merchant. That was the 3rd question, LQW Gatwick.
There was no a third runway project in the pipeline, but we're talking there about any emergency monitoring or the technical term is for this, but is this and in line with your CapEx forecasts. Can you give us some info on this? Right. Well, construction margins are already answered earlier. So I'm not going to repeat what I said earlier.
Gatwick, I think it's completely in line with what we were planning. Well, the 3rd one would be an upset, but, I mean, we're all stuck in, in fact, second runway. It's not really for the, near future, quite frankly. We at the very beginning of a process that might last in many, many years, because you need many planning authorizations, particularly from the stakeholders who live around the airport, and everything that gravitate around the environmental issues. Now between the future implementation of the new runway, and the current situation that there's a whole series of investments that we're planning in our business plan, which are improvements enabling optimization of the current runways, with some systems enabling the plane to spend as little time as possible on the one way in order to further increase the number of planes that can land or take up from a single runway at any given time.
And there's always a possibility on any platform to make better use of the 24 hours in any day by encouraging some companies to land or take off outside peak hours in order to, at, spread the, use of the airport infrastructure, but they're looking at multiple ways. Automated payment, whatever the system through TD Bankcard, account represents 100%. So there's basically no all of this very much, although almost no longer any manual cash payments, looking at free flow, the difficulty of free flow is not so much a technical challenge. It's a difficulty that is due to regulatory reasons because, as you know, on the free flow system, The principle involves letting the vehicle first, since there's no barrier, they tell both, to check whether it's all price to go through or not by checking the badge or by checking the number plate. That's how we're conducting the experiments.
And once it's through, then you get the information in the following nanosecond to, telling us whether he was entitled to go through what he has a bank account, and whether there's money on the bank account so that we can charge the toll. If that's not the case, then you need to be able to than the motorist, which presupposes that you have a you're authorized to establish a link between the number plates and his civil status and to be sure that once you've tracked down the motorist, he will be solvent and will be able to play the tone. If you're in an environment, which is very limited for travel on an island or if you're in a country where you only work with local citizens like France? Well, there's no big problem, but when you're in a country like France, which has many motors coming from many different countries, then of course, it becomes more difficult because looking for a motorist, from Lithuania or Romania or Bulgaria who's going through front Well, I mean, even if you have his number plate, if you can't put a name on the number plate, they're quite frankly, it's not much use.
And if once you have the name, you're unable to access the bank details to, get the toll pay, then it's, not much use. So the the the problem is finding a European wide system that will enable us to ensure that the passage of the, the talk of will, trigger the payment. So the pace of installation of the free float system is not so much a technical problem as a regulatory problem at European level in order to enable us to have access to the civil states of the motorist and have access to their bank account. That's more or less. That sums it up pretty much.
Looking at insurance, we do not, disclose information.
Hi. From Hado, a few quick ones still on the contracting margin on energy this time, we've been saying for a few years now that the margin has reached its maximum level, but it continues to grow year on year. Do you have any new targets that you've set? Can we, can we expect an increase in line with the performance achieved full year. Then on the auto routes on the on the highways, can we expect extension of the maturity of auto routes in France.
There was a piece in the paper and interview by the San Fc, mentioning the possibility well, rather proposing to fund the, works on the, non conceded network by extending the maturity of his network. Do you think that's feasible given the current political climate And then a final question. I'll tend to it margin, convincing construction. Can you tell us a bit more about the contract that hurt the margin in terms of H1 terms of geography type of difficulty. Answer, I'll take them in reverse order per usual on VC.
Now I can't give you the list of contracts because VINCI is what, 3 300,000 projects, contracts. You have small, medium, and large. And so the development that I mentioned sometimes a bit more difficulty in booking and a number of things from our clients. It's true. It's far from systematically, but it's often true for small, medium, and large contracts, but of course, it has a bigger impact on big contracts.
So I can't give you the list because it impacts many contracts. It's more kind of a general atmosphere, which is one of great attention than previously, which reveals the kind of, great attention in the economy without going into further detail. On the extension of the motorways. It really depends what you're referring to. The question is, do we think that relatively short term, we're capable of devising final agreements with the date on extending the lifetime of consumptions.
The answer is we don't dream to my knowledge that transport ministers responded she said no. Well, I mean, there was the piece, the article by Sanif yesterday that was published yesterday. On an issue that's not a huge original. We've all been thinking about it for a number of years. The minister has already answered that that was some a non starter.
So if it's a short question, short term, my answer is yes, if it's more mid, long term answer is maybe It seems to us still to be a particularly efficient way of funding a number of the measures to, develop the land planning around the motorway. In fact, a recent study commissioned by the transport ministry entrusted to, engineer His name is Rappupor, actually, refers to those proposals that involve, let's say, find, ways of applying this rather smart principle to rely on existing concessions to improve or even, restructure parts of the road networks around them otherwise, but it's not gonna end tomorrow. On the VINCI energy margin, no, I don't think we said that we'd reached the peak. We said that it was pretty good to stabilize at the level of 5.8% that we've been at for a number of years, but we're hopeful but we'll continue to improve it. And it's small small steps 1 at a time.
So yes, of course, one day, it will no doubt be possible to achieve 6% margin on VINCI Energy.
HSBC, going back on construction margins in France next year, there are some cost increases regarding the, cancellation of tax niches on low salaries, And we hear about the lack of, labor force fire to our Can you tell us how this is going to impact the margins if I see construction? Well, in the contracting business, you have 2 types of contracts, small contracts and large contracts. On the small contracts, as soon as processed it and implemented it, you implemented it. And if there are any increases, they are relatively marginal increases since the information timeline. Does not enable these increases to be passed through.
And you have the later contracts, which, usual, usually contracts with index linking, formally based on the, that's taken to account for cost of the project. Inappropriate way taking into account the cost of labor, the cost of oil, etcetera. So, the challenge when you have changes along the lines of the tax treatment of diesel fuel, for a non road, diesel fuel, the difficulty And I think this is what we're finding is to have, on the one hand, gradual implementation of the VAT change in order for the small contracts with a short term, the cycle are not impacted and to be able to take into account the new situation in how we set our prices for the following contracts. And number 2, The increase has to be taken into account. It has to be factored into the indices such that we are remunerated on the major contracts through an increase in the index.
And ultimately, if that's how it goes, then we pass on that cost to the end user. On the road business, it's local authorities. The reality is that you make the local authorities pay. I said it wouldn't be same as to churn this, by the way. And, this is an answer I can make on other subjects that you have raised in particular on the Tarmac, business.
Now Westgate, you'll correct me if I'm wrong. Well, yeah, talk to tell us about the shortage of Talmak, please. Well, the shortage of termite, it's the 2nd year running that we have, a shortage of available time. I could pick periods end of June. And what we we're at in in that period right now, it is linked to structural recent due to the decline in the number of refineries in France and to cyclical, fact which tend to recur from 1 year to the next due to the economic situation because, maintenance costs, for example, in the refineries, and pollution problems in other areas that were not foreseeable.
The whole profession is working on this particular, problem, be it the motorway contractors or oil companies who are the manufacturers of Telmak, without forgetting, of course, the transport companies. And, and all this is being supervised by the transport ministry, which is very concerned that construction sites may be held out because of this problem. And similar to last year, we have had some sites that have already been held up and as was the case last year, we've been able to, avoid, broad, shortage that would have stopped work for several weeks or months. What's going to happen in the months ahead? I'm simply can't tell you, we're doing everything in our power to ensure that our business is not impacted.
We've, we've done a good analysis of the situation We're working in partnership with the various stakeholders, and we're going to do absolutely everything to avoid being too severely penalized in the autumn but we're very, very watchful on this. Now there are some antidotes, for example, signing long term contracts with all companies in order to be among the first clients who get delivery. 1 is Tomac available. And number 2, to have a greater storage capacity, for Tomac and to be slightly less exposed to a shortage when they're slightly less to make available from the with PhoneWords.
Hi. I'm from Brian Garnier. 2 quick ones. The first on the Eurovia margin, you gave specific indication of the VC margin and for VINCI Energies. Can we have some guidance on the landing point for the EBIT margin at Eurovia?
2nd, question on digitization and construction. Could you give us an update where you're at digitizing your, job sites, work sites? Could this be a way for you this digitization of reducing the changes that you may kind of run over the rivers part of the contracts on, construction sites. The euro gear margin was what, last year? 3939.
It will improve. It's set to improve. So a round number wouldn't be, done. On contracting energy, as you live understood, incrementally, the margin will, flourish. Eurovia can productions on the low side because we should be around, last year's level, bottom ups, all in all, things are okay.
On the changes on your second question, which is a very broad question. Digitization and the construction business, I mean, is fully factored in. We're not at the end of the road, but the BIM in construction, I mean, it part of day to day business, but I would recall I already gave you the, speech, the pitch on this BIM. You have the design BIM. Divide them under BIM.
That's done. I'm talking about large companies, large corporates, Global, Randstad. I don't claim that it's all larger sites that are BIM designed because often we don't, control. We, intervene at post after it's been designed by someone else, but that's, underway that's factored into our teams. Now the maintenance operation fee I'm Advinci Energy.
That's, developing well, the challenge is the middle BIM on the project during the construction phase. Theme to site, make sure that our coworkers, workers on-site have the digital enable us to get it right first time with greater precision. On the site to beam to take in count of the, worksite as it is to update, live, the mock up so that it's, consistent with what we've designed. Now that's a big challenge. We're making headway, but it's gonna take years before we have projects that are fully digital on that front.
Australia is at Black Park. The, site theme allows us to, resolve the difficulties that were attributable to us, organization, floors, failures, etcetera will be even more rigorous with that enabler on the job site by, getting it right first time. It won't change much as to the difficulties that stem from outside the job site. That's to say a client who decides to modify the project that the margins thinks that it doesn't cost very much, well, in fact, it's going to disrupt the whole chain or a stakeholder, a, a network concessionaire close to the, job site who said that he has a pie for something running under your site or geotechnical difficulties to discover as was our case for the French Metro on line 14 Northern Paris Day in the subsoil. There are water movements that are unpredictable, so we can't build and that, we had to, freeze the soil wood nitrogen.
So it's gonna be more efficient on-site, but it's not going to be revolutionary as to, solving difficulties that involve other partners, being the client or stakeholders. It's understandable. Alexander, do you understand that? Third question was
Are there any further questions? To sell for research, I'd like to know in terms of Therville Growth, what would be the potential developments for that sheet? My second question is on the debt load. Is there a level of debt that you are specifically targeting since the group size has changed. And the third question is on the launch of the work in Lisbon when is this expected to start?
And I think there was a a signing coming up a contract to be signed. So what's the story on that? Right. The first two questions, and then I'll hand over to Nikura, so that he can answer the second question. The first question was on the external, but no, Miriam, Miriam, nothing has changed.
As you know, we're pretty consistent. Our view is that each of our businesses may can grow through acquisitions, but those of our businesses which are profitable in good shape can do far more than others, to be clear, having a lot of external growth would probably be, somewhat clumsy because our priority is to deal with what we have at present, which is the current scope of the vaccine construction. Now within these businesses, we have 2 specific points we're focusing on. 1 is April Concessions And the other one is energy and contracting for the reasons that we have explained at Lake AirPortic's sanitary and on energy, it's quite simply because the energy businesses are at a across the road between 2 key themes that are driving these businesses at present, namely the energy transition. And the digital revolution.
So we are living through that. And in the energy business, as you know, there are a great deal of opportunities, for example, growth around the world and we feel that we are fully able to integrate them, integrate them, but everything is working well at that CNO sheet. We have an organization and marketing model, which is performing very strongly. So external growth will remain, against that backdrop with their particular emphasis I've referred to, but from time to time, as was the case last year, we will make some very good acquisitions for Eurovia because Eurovia at present has a business that is extremely healthy. It has a strong organizational structure, a good operating structure, and it will continue to do a bit of shopping here and there, depending on the geographical areas where they feel much comfortable.
And in particular in North America, there's not much else that can be added, Second question on Montejo, and then the question on the debt load. And I'm I mean, you were signed with the Portuguese government with 2 types of investment. The first will start in the autumn similar to Gatwick, the idea here is to improve the efficiency and the fluidity of traffic on existing runways. This does not require any particular, amendment. This will start after the summer season.
And the rate of return hit is around 7%. And we have a very high rated traffic. The environmental study the public inquiry, the public survey is underway for the Monte Show airport, runway. We need to have a study before we get the go headwinds for the result of this survey in the autumn. And then once the result of the survey is being published, the amendment to our concession contract will have to reflect what is already in the MOU and it's we can implement that quite quickly, and that means that the work would begin after Orbatin would last approximately 3 years after the date of signing.
The question on the debt load, there's no simple answer to that. The debt load changes depending on the assets that we have as I said earlier, S and P is finding a difficult to maintain our current rating via a minus because we have a strong we'll hit pay by 2. Increase it to a from a minus and even go higher than that. The question is, what are we going to do? With that additional, that loan capacity, if we if we acquire concessions, that will give us right to additional credit for the debt load.
So it's going to change depending on the profile of the the Vesey group. And then after that, of course, what we're trying to do is to put the debt where it needs to be, which is on the assets on Vesey or towards on Gatwick, on ANA, in Japan, etcetera. So we need to optimize the debt loads of each asset in order to see what is left after that. And if there's any additional excess capacity, but and it's very significant. But, I mean, that doesn't mean we're going to go, all out.
It's not really part of our culture, as we often recall. Okay. We move to questions over the
phone. Take the French questions first. So we begin questions from over the phone. We have two questions. If you if you want to ask a question, dial 1.
Kindly speak slowly and clearly so that we can understand. So first question from Morgan Stanley. Hello. Gentlemen. I'll try and speak, slowly.
So few questions starting with cash flow. Could Christian tell us a bit about the good performance on working capital, requirement as well contained as you in spite of the strong growth in contracting that would really have penalized you in the first half. Second, we saw a one off last year on, consolidated at, at the equity. I think there's still another one that Japan's performed well, but we have quite a Significant Delta 60, 17,000,000 is the anything to add. And final point, could you give us an update on slightly more problematic situation and concessions.
Oh, and SAC or not potentially on Cambodia. Slightly tricky. Projects. On the first two questions, because I didn't understand the second one on the one off. Well, a one off is non recurring.
Okay. So contrary to what some are too readily. You think a concession is never a bit of roses. And so we know that for all our concessions, whatever. There are always times that are slightly more tense, constrained than others.
Strained or just with, difficulties. The good news is that, generally, we can resolve them. You recall not so long ago of the situation, and we're we were for our major French, highway concessions. You mentioned Cambodia, I don't see what you're referring to. And so Nicolas is going to think about it.
If you can find issues of particular concerning Cambodia. You mentioned not situation remains the same today. There's no negotiation underway for a simple reason. That is for there to be negotiation We have to be informed of the termination. We know that we'll be terminated.
We understand but we'll know this at the end of 21. But we, at this some stage, we have not become genuine negotiation as to the quantum that would be awarded to us on that occasion. So in the meantime, we have to do with what we have available in order to welcome under good conditions, the, airlines and passengers who continue to grow very significantly at Mount Atlantic Airport because, I think, if under I'm mistaken. I don't know if it's the first half or Q2. We've achieved 18% growth rate at North Atlantic Airport.
We have 2 absorb that at constant, installations, which is always quite a feat. To end on now. We know the government, department and, the engineering services beginning to prepare a new project. It's going to be the subject of a public inquiry in both service and basis for the consultation in 2021 to appoint a new concessionaire to operate to an Ant Atlantic Airport. We are, of course, not involved in that, work of design, discussion and inquiry, is we did so, we would be prevented from taking part in the competition today.
It's launched. So I can't really say much more. As to AMSAC, Well, this is, something that is indeed, I mean, not necessarily very, easy to live with the, mayor of Lima who came into office at the end of 2018, said to the person last week that he was going to ask for the cancellation of the, concession of Landside from international tribunal's in supportive position. He mentions presumed corruption between the Lima municipality, that is his predecessors, and, OAS, the Brazilian constructor, the origin of concession, the Lambside company itself is the subject of absolutely no proceedings whatsoever. So we heard the mayor of Lima make that statement of the local press at Lima last week.
And so, well, for the time being, that's all we know. Since is that we have been, flawless in this matter from the outset because it was won by OAS So in 9 days, started the works, and then they ceded the concession to a company called InVipin that is a company, made up a Brazilian pension funds OAS remaining the constructor. It seems they were unable to continue to build. They stopped the construction. That's where we stepped in, in 2016.
We bought the concession from in retirement, not from OAS, in the power. Exited the OAS builder, and so we to go from our AS to complete the project under very difficult engineering conditions. We fully delivered on our show that contract to complete the project that had been stopped because OAS weren't able to continue to have fully complied with all contract terms and clauses to improve hugely traffic flow and, user service by developing the toll through a pegs company. So, watch this space. Hang on.
I'm not I've got Cambodia here. So hello. This is Nicola. You're probably referring to the that for some 10 years now, there's a regularly in certain media notably in Asia mentioned made in the future, there might be new airport projects in nonpeng and Centimeters Riet. Nothing's moving.
There's no beginnings of works, no contracts, no no change on those airports. Secondly, there can tracture provisions that obviously take account those cases on this concession contract. Thirdly, Cambodia performs very well because non payment share rep continued to grow. We saw it 15%, but we also have a very strong start up of the 3rd airport that we, Tianuk city that's going to stop the 1,500,000 passenger this year. There was 3 years ago a unique case in our network, 150 percent growth with Chinese traffic.
So concessions that's doing well contractual provisions, nothing new But from time to time, there are possibilities mentioned in new airports that we're also following, but nothing started no particular threat in that country. So on working capital, the improved working capital, the slightest consumption of WCR on the half is about GBP 200,000,000 due to cash in that was better, this year over last year. That'll be at Eurovia and Vincique and, concession with exert pressure and operational people. They don't just focus on margins and on the bottom line, but transforming the earnings into cash, and that's, varying fruits, a long term effort that must percolate through every lever of the organization were highly decentralized and it's paying off on the income statement between operating income, EBIT, and, operating income last year. I mean, we benefit we told you at the time of, a one off upside on the re consolidation of J.
P. R. Greek company concessioner, the anterior and bridge road, about 10,000,000 that we don't have this year, but there's an improvement in many units consolidated by the equity method I mentioned, And there are others that more than offset this positive effect by other items. I mean, the the list is it's it's very long without going into the detail. If I could come back on the working capital, is there also some profits for the benefit of prepayments on some big contracts that you announced good contracts in the beginning of the year.
So I'm thinking of the E64 in the US or to what these contracts generate prepayments. So we had those in H1, or we can expect some through the end of the year to continue to improve the WSE to my knowledge, we haven't had those for heart war, maybe, heart war, yes, but not Virginia. So it's the most part now. I know all the the the New Zealand, contract, told that it's not even in the order book, but generally Well, you have to enter it that has to be the advanced payment, the, payment order, it's 1, but it's not booked in the order. So on auto work here, the prepayment, we had that one in the first we booked out in the first half on
the E64.
Okay. Look.
One question. Can we go back on the margins of receivable dilutes, which were up strongly in the half first half, a 5% increase in EBITDA, whereas Traffic is flat. Can you tell us about the drivers for the increase in margin? Is it the mix between SUVs and light vehicles. Thank you.
The answer is no. Well, Chris Chao has said everything, about the there was the mix combination of items, climate factors, impacting the winter season and the one off impact of previous incidents. That's all we can say. So the clear answer, Melody, is no. You cannot go for and maintaining of this, the current level of EBITDA for the year as a whole.
Thank you. Next question. Which will be in English.
It's going off on holiday. That's Brexit. Next question from Olivier Peter from Macquarie.
Hi, everyone. Not quite holiday time, unfortunately. Olivia Peters from Macquarie. Just two questions, please. On LambSAT, I was wondering if you could talk about, the recourse you have in case of revocation of a contract.
Is there a specific clause regarding remuneration if the contract does get canceled. And secondly, on Gatwick Airport, you have been very specific about the fact that you want to increase the retail spend per packs there. It's some of the lowest in the London area. Do you have a specific target in mind? Thank you.
Well,
on loans,
it's very in a chair. I mean, first off, over and above the oral communications. I mean, lima, municipality would have to, start acting what they said that they would place the matter in the hands of international bodies. No doubt referring to the fact that in the contract, it's mentioned in the event of a dispute that disputes are treated by, what's it called, an arbitration, international arbitration, in Paris, that hub was written into the initial contract. And so we are not at all in the situation of beginning to look at the contractual clauses.
On Gatwick retail. I didn't get the full detail answer it, but actually, there were 2 things. In the current phase, we have the word that Xavier mentioned going from 55 to 60 movements, so potential traffic increase in the movement. Passenger yield, where we have increased ambitions to readjust, redevelop the terminals. Counselix, very efficient, operational, but has some room for progress.
So we'll add David will take a few months or few years to put in place those developments. And then there's an upside that they announced recently is that the Northern Runway project has been officially presented as the master plan. The lady was focusing on retail. On retail, We have plans to redevelop, but one has immediate effects because we have to redo the inside. I mean, the premise is a cramp, but things can be done and we planned over the next 2, 3 years to develop these areas and 2 booster passenger yield.
Last question, back to
Frank. Yes.
Good morning. Kepler Cheuvreux. Two questions, if I may. Can you give us an education on like for like on, vaccine, airports for growth, a distinction, you have a distinction for revenue. Plus 8, and published with external growth of +44.
And for EBITDA, we don't have the like for a like. We only have overall growth and overall increase of 38% And the second question, to go back to the question, the 118 basis point improvement in the margins for the motorway business in the first half, looking at the entry, the winter maintenance entry did that have an impact since the winter period was quite mild. Can you provide us some explanation for the behavior looking ahead to the second half. Well, that's what we said, isn't it? Yes.
I think that's exactly what we said, Joseph. We maybe I didn't listen to everything. Apologies on in addition to the full answer. No. What we said is that the improvement, the cyclical improvement in the EBITDA margin for Vasi Autodes in the first half is due to several factors.
One of them being the fact that the weather conditions enabled us to use less maintenance product for winter maintenance work. We didn't go into further detail because we still have we need we need to keep a few secrets, aren't we? Looking at the like for like the EBITDA margin for the motor oil business. We never get, though, if I see airport, no, we we've never get the figures on that. We've never disclosed.
Well, okay, well, okay, you say whatever you want then. No, I don't have a precise figure, but taking into account IFRS 16 in Gatwick We have growth to the tune of 13% approximately, but that includes Lg double e. I mean, it's just, anyway, it's double digit. Thank you very much indeed. Is telling us, but it's time to go and have a drink.
Thank you very much for being with us. Have an excellent summer break order here. Thank you.