I've just been given the green light. It's a great day. A great day because, first of all, we're very pleased to see you. It's a great day because Jean Kristoff has traveled especially from Argentina just to be with us. He's got a Tam.
And great day because please see on my left is the, grandfather of Young Joseph from 15 minutes ago. I'm soon have 12. So, that's done. Free pleased to be with you. Before Going into the figures, a few pictures.
Here we have Gatwick. Gatwick here. Max, a view of the construction project of the new civil airport Montacho across the Tagus in Lisbon, so as to meet the dynamism of the Portuguese, tourist economy in Lisbon, and a pretty symbolic image, a unity, very high charging station on the A 10 motorway. Unity is a consortium of, chairman manufacturers, very high-tech, all German carmakers to set up a network of 400 very high speed charging stations in Europe, but about a 100 in France. It's the first, and it's, the symbol that the electric car is really taking off, and we've all understood that.
Next, a new dynamic told collection system contract 1 in September in, Texas, the US by tollplus Toll collection system allows you on the same section to have free lanes and paying lanes, and you can change as many times as you like within a given hour. The tariff for charging lanes. So as to varied traffic levels, so as to, respect, journey times from a to b. It's very interesting. It, generates a lot of electronics and toll plus won the contract after many.
Other contracts already won in the US. Here we have an illustration of the know how VINCI energy and IoT internet of things and the port of Rotterdam Authority to track and optimize the shipping traffic in the port of Rotterdam. Here, a view that symbolizes the acquisition that we're very pleased with the Lane plant and paving, allowing year over year to double its size in the Eastern and Southeastern Part of the United States. Things are going well. Integration is proceeding smoothly.
Next, they find building by Jean Louisville, built in Maffei. It's the Marcia's tower. Very close two or three hundred meters from the first tower that we built 10 years ago. That is the headquarters of CMACGM between this Tau and Marseille Airport. And, first, first, with a vertical tunneling machine that is, produced in conjunction with Eric Nash, who's the leading manufacturer of tunnel boring machines.
These generally operate horizontally. This is a vertical tunneling method building a well as part of the Greater Paris project at Kashe. I went to see it. It seems to work well. Lastly, new product launched by VINCI Immobilier Real Estate Recently.
Student Factory And or a student resident with large, open spaces, very user friendly. We already have 3 and we plan to continue to grow this real estate market segment so much for the images. Now 2018 has been a good year, a very good year, I should say, characterized by strong growth and order intake in contracting. Also, good motorway traffic levels, in line with our forecast up until mid November and then things deteriorated, as you may have seen from our press release, well, of course, following the yellow vest, particularly, hit, ASF and Escota, because you'll have seen that it's in this part of France that, the, social unrest, was the most severe. Airport traffic remains buoyant more about that in a moment, net income sharply up, and the free cash flow very sharply up and consequently that that remains contained in spite of CapEx that are up and numerous, acquisitions across our businesses during the course of 2018.
But of course, will go into greater detail of the figures. A quick geographical focus All our geographies are up, as you can see, with the exception of Latin America, that is down, 5%. Two factors exchange rate, but it's not the only geography where we've had to manage, currency impact that were negative last year, but in this part of the world and the previous year in 2017, we had the work section to the urban, motorway section at Lima, Peru that kept us very busy. You see that Africa's now flat after the very severe decreases, booked in previous years owing to the drop in commodity prices or in particular Africa, as we said, is, coming back strongly, recorded good order intake in 2018 has stabilized its activity. And so that will spread across Africa in 2019.
If we go greater detail starting with the order routes, the motorways, the social crisis cost us about 2.2% traffic because we were headed to deliver, 17, 18%, and we end at minus 0.5s. The difference between the two, traffic numbers. Of course, that led us to, the particularly attentive to the spending power of the, customer segment of those who use motorways to travel from home to work. We have a new subscription, that is a hubby's plant that is to all drivers and motorbikes that perform, over 10 journeys, per month. Over a same destination, we have over 5000 users who've signed up for this new scheme and it's up away, completing the spending power concern of our Hello citizens.
The motorway investment plans got underway as well as the works, bypassing the west of Strasbourg. We've rolled out the Ulys brand, Ulys 30 that I mentioned a few months, which is connected mobility service that provides real time traffic informations with webcams and, data and service areas, chatbots, a toll that can be, people free, just paying with your iPhone, etcetera. The dynamic of, airports, up in sea airports is continuing 6.8% growth in Portugal, 9 0.2% growth in France, 20% Cambodia, 88 Chile, 37 Japan, and that's in spite of the typhoon, the, struck and disrupted us at the Keith's airport. It's built on an artificial Island in the middle of the bay of Osaka and, suffered the impact of a very violent typhoon that led us to, stop operations for a few weeks. Revenue managed by Shee airports comes in at 1,000,000,000.
That's pro form a in which we include the revenue of all the airports where we play a significant role, irrespective of whether we control them or not. If we focus on Consolidated revenue were 1,000,000,000 in revenue, markedly up over last year with an EBITDA that is up 130 basis points over 2017, which was sharply up over the previous year. If we look at the passengers who travel through our airports, including all those recently acquired, and, of course, including Gatwick, hasn't the deal hasn't been formally closed, but we've sound we signed an agreement with the seller on the 26th December last year. We arrive at 240,000,000 passengers managed by way of comparison. For those of you who've forgotten, CDG is 70 1,000,000 passengers give or take or orly 35,000,000 passengers.
And, we've won numerous new contracts Alvador De Baja. Belgrade, Kobe, United States, Costa Rica, and the most recent get a tweak with 46,000,000 passengers. And then going back to my 1st slide week, find an mou with the Portuguese government for 2 things. First of all, to build a new civil, port on the military base of Montejo Cross that take us in Lisbon and furthermore, a renovation and extension program of the, it existing, Lisbon airport, Umberto, that's very close to, the down town area, please. But with an investment that will represent 1,150,000,000, we'll be able to meet the momentum of the economy and air traffic headed for Portugal and Lisbon in particular.
We believe that VINCI Airports is the leading private operator of airports. And as you will have no doubt. We don't plan to stop there on concessions. It's essentially VINCI Railways and, highways. This is a chart that excludes VINCI Parks.
There was some, revenue remaining in the initial years on the left. People leave the side, VINCI, part here, you see that things are growing VINCI Highways. We open section 2 of our asset in Lima, Peru, LAMSAC, 13.4% growth ramp up above expectations. The difficulty is to ensure smooth traffic flow We're going flat out on deploying, toll solutions through, pegs, part of the group. That disseminates proactively tele, pay, toll systems to absorb the very significant growth in traffic at Lima.
So things are going markedly better than, We planned in our initial BP in Greece. Things are going better than in, earlier crisis years. Traffic levels are picking up usefully. The Reon and Tourion breach, the bridge that we re consolidated churn across the 2018, good, ramp up of our SCA Tours Bardor High speed rail link. 20,000,000 passengers traveled that section in 2018, 11% growth in passenger numbers between the Paris region and, Southwest and France.
And with that, we've been able to refinance the debt of the asset $2,200,000,000, which is, of course, important in a concession, especially during the start up phase. So we successfully managed to put that deal on track. Moving to contracting, VINCI Energy, Grand Slam achieved with strong organic growth as you can see. Wasn't the case in 2016. It's beginning to occur in 2017, 3.7 percent in France, So 5% outside France good growth.
Also, M and A brought in 1,400,000,000 in additional revenue. And all that was boosting the margin, which, is headed for, 5.8% up over last year. What's worth noting on this chart is the France international split of VINCI Energies. Vee is now Shifted. International represents 54% of revenue of Vinciana Qi, which is in line with our strategic road map.
Eurovia is faring well, indeed very well with Pretty outstanding organic growth from 8.5%. It won't last. We're benefiting from the conventional effect of midterms versus the municipal elections. It's going to continue for a while into 'nineteen. Not necessarily into 20.
So that's, in the bag, good organic growth in France as well as outside, 5.8%. We'd stated that this good performance of BRAVIA, led us to offer moved for M And A, in Canada, in the Baltics and more recently lane plants and paving in the United States. All this very usefully, as you can see, the, operating margin is up from 3.7 to 3.9% EBIT margin Eurovia has the bulk of its business in France. That's because France is doing very well, 44 percent outside France and 56% in France. For construction, we need to go into details because the businesses follow different cycles.
France's back, you see organic growth 2.5%. Slight organic growth last year, but very significant decline in previous years. We suffered a lot and construction in France during earlier years. So the good news is, organic growth is up in France, growth also in Central Europe, Asia, Oceania, Upper Africa post 8 octane. Excellent order intake, in 2018.
VCGP major projects in a transition phase. That's to say that we're coming to the end of a number of major projects, and we haven't yet kicked off the number of new major projects, but we had strong hopes. Earlier, we had confirmation of the fact that we're going to process a rail way station as part of the HS 2 project in the UK. This is a project that represents for us something like 1,000,000. So that means HS2 is getting underway.
And we have other transactions pertaining to HS2 in the pipeline that, going through the first phase open ECI, with some discussions, price setting, with the authorities in project management regarding the amount of the works that are significantly higher than the initially planned budget, oil and gas, primarily Entrepose contracting continuing to suffer a great deal because hurt by the pretty dramatic loss of investments by the oil majors, both oil and gas Now there are segments at Antopause, contracting that are doing okay, the pipe, through speed, the historical business of Antrepose contracting is suffering considerably because CapEx by the majors or National Oil Companies haven't really picked up hugely. Quick focus on the VINCI Immobilier Real Estate things are doing well. We said about 6 months ago that our sense was that, we'd reach the peak of real estate development in the residential segment. That's the case. So we recorded a slight decrease of the number of bookings in residential property in 2018.
So it's going to continue to decline slowly. It's not reflected in the figures because in real estate, there's always a lag between the time you, reserve when you book in your books sir, and at VINCI Immobilier position means that we sold, we had a fewer bookings, but in value terms, it's slightly more because the average cost of each housing unit has been pushed upwards because of where we're positioned. Good. Commercial, property projects, hotels, offices in Paris and in Lyon. And then she hemobilier made an acquisition of 49.9 percent of Ielbar that's interesting because geographically, it's located in Southern France and it's positioned in a market segment, which is one of controlled pricing homes, whereas we were the higher end segments I'm now going to turn over to Christian for the figures, and I'll come back to discuss the outlook.
Lucas Thank you.
To briefly come back to revenue, you can see growth organic growth, similar order of magnitude in concessions and contract about 3% in real estate plus 20%, which shows the big increase in reservations in recent years. Now to talk to the changes in scope, the impact here is due to the full year effect of acquisitions in 2017. Just under €900,000,000 worth plus acquisitions made in 2018, providing about $1,400,000,000 in revenue, such as the acquisition of PRIME Line in the U. S. VINCI Energies, wireline Engineering in Singapore, also by VINCI Energies, T and T, in Canada, by Eurovia, and the Salvador DeBio, Airport in Brazil.
On other hand, acquisitions of the Belgrade Airport and Layton plants and paving closed toward the end of the year, have virtually no impact on the full year revenue. Currency effects are negative, because the euro continued to appreciate versus many currencies, particularly the dollar. Conversion of revenue of these subsidiaries into, euro means a fewer years. That's where there's a negative effect. Next slide, this is, revenue, evolution by geographical area is different.
In France, mainly, boosted by organic growth, particularly Xavier mentioned Eurovia, which sees a big growth in revenue 8.5 percent, VINCI Airports up 6.3 percent, VINCI Energies of 3.7% without mentioning real estate. International growth is driven mainly by acquisitions of growth, thanks to the acquisitions I mentioned previously, but there is organic growth internationally, certainly, particularly in Germany, Poland, as well as the Czech Republic where the UK, is actually, moving down. Now to talk about, a bit, reaching almost €5,000,000,000, which is up 8.5% margin improves 10 basis points. So we consider performance is remarkable. All business divisions improved their contributions.
In 2018, except Ravinci Autoroutes, which maintained its, earnings level unchanged for reasons given by Xavier, end of year events and so forth. Also, due to the impact of, the amortization of sections that were put in line recently in 2017. Such as the Montpellier bypass, and in the, section in the basque country. Leading creditor conversations. Concessions overall improved to their contribution 180,000,000 contracting 10,000,000 It's a contribution.
These figures include the, bonus for purchasing power toward the end of the year, which is an amount of 1,000,000 to 1,000,000. Concessions have been mentioned an improvement coming mainly from VINCI Airport This is a consequence of growth in revenue and careful controlling expenses. VINCI Autorouto mentioned VINCI Energies reaching 5.8% margin, which I believe is by far the best performance in the industry. And you see this in most VINCI Energy's divisions, in fact, all their divisions. Eurovia also improved its contribution by 20 basis points, reaching 3.9%.
Which I believe will also look at the company at the top of the industry. And this in spite of difficulties, we alluded to, during half yearly meeting some problems with railroads in France, and, particularly strikes at the, SSCF Railway in the springtime. Bench construction more of a contrast in France and improvement in situations, although the margin rate didn't yet, at its record levels we'd reached in the past. Vinci Construction UK, once again, is seeing a profit, profit in construction in the UK. That's a true feat of achievement considering the overall context.
International subsidiaries, ACR and continuing to show good, results around 3%. Major projects, so the Transfrescine continuing to be in excess of 4 to 4 a half percent. And, we see that the figures here are, as seen on screen, overall, an improvement of 30 basis points preventy construction versus last year, and, we should continue seeing this progress in 2019. Now to continue to the income statement, let's talk about IFRS 2, which is a reflection. Of impact on earnings, from share based payment plans for employees, such as the corporate savings plan.
As well as performance shares. We increased the contribution the company makes to the savings plan, which explains part the increase in this expense line item. Now other items, equity affiliates slightly down. But over last year, under we had a capital gain here for land land sold in London that was around €40,000,000, and, of course, that's nonrecurring. There are no nonrecurring items this year.
If we look at the income statement versus last year, we had some restructuring expenses previously and some impairments goodwill. Now financial results, basically stable year on year. This includes a significant reduction in the cost of debt because, the new debt, established, I'll come back to that later. Has been, coordinated at very interest rates at a much lower than interest rates, on the debt repaid during the year. We're looking at less interest this year, though, because we put into service, as we said, various new sections at RINCI Autobord.
Vehicles under P and L, but Centroton and Peru, bringing online the 2nd section of Landfak, and Gina 2018 means we now take all the financial expenses from that investment in Peru. Tax costs going up, correcting for nonrecurring items by €100,000,000. This, basically is due to our improved profit Taxation rates have not changed in France, not for us, versus last year. So all in all, it results in the neighborhood of 3,000,000,000 up 8.6 percent for net income. And this similar growth rate of earnings per share, we've canceled out the dilution of in earnings due to the creation of new, that have been caused by Christian downstairs for employees.
Let's look at, cash flow now. EBITDA, almost $9,000,000,000, which is an improvement of over 6% versus 2017. Out of the, 6,900,000,000 Concessions represent almost €5,000,000,000, since your order was 3.9, VINCI Airports, 9 of its 1,000,000, other concessions, 100,000,000. Working capital requirements below 300,000,000 increased, but below 100,000,000, a similar order of magnitude of last year. The reason for this mainly is, increase in our acquisitions of land for VINCI Immobilier around 1,000,000.
I want to continue developing real paper to buy land. That's the raw material for property business. Furthermore, VINCI Construction increased its WCR by around 177,000,000 170,000,000. This is due to what Xavier said, the grand pleasure is and, start up costs and also a trough. When it comes to big major projects, but this should correct in all likelihood during 2019 or toward the end of the year.
Furthermore, here, we're also we also made invest Vincent Land, in various operations. And I also mentioned to you previously in the past, There's been the completion of various loss making jobs that have been provisioned previously, and the losses, had a cash effect. Taxes paid down substantially compared to 2017. I'd recall we felt the impact end of 2017, by increase in corporate taxes around EUR 200,000,000 plus cash in the beginning of the year, EUR 100,000,000 of, the 3 percent dividend tax that was paid back. So $3,000,000 difference, if you correct for the difference, then we also correct for the fact that, We've started work on our new HQ and known tariffs, $125,000,000.
The difference in free cash flow for 1 year to the next is around 500,000,000 being proved. Cash free cash flow by 54,000,000. If you're correct for tax effects and, the effects we call the Alshis belt, the name of our new headquarters in NAFTA. In reference above and beyond the HQ investment are up, because, activities are growing, particularly in contracting. So operating, in OpEx continues, investments elsewhere, 1,000,000 $1,000,000,000 in concessions, around $670,000,000 for, VINCI Autoritz and VINCI Airports, $17,000,000.
That includes Brazil a little bit in Serbia toward the end of the year. As I said, all of this has led to free cash flow is up substantially 1,000,000,000. That's beyond our forecast. Above our end of year forecasts, we did particularly at the year in terms of cash in specifically. Financial investments, many in the year, $2,800,000,000 in investments in contracting and also in concessions.
In contracting. We're at 1,600,000,000, overhaul to 6,000,000,000 in, financial investments, 900,000,000, at VINCI Energies, almost 30 companies acquired with VINCI Energies, you know, of course, prime line in the US, the biggest one. And while Luton in Singapore, there were many others. Around €700,000,000 investments at Eurovia, here as well, mainly, lighting plants and paving in the United states toward the end of the year, but also other acquisitions in Canada, in France, and in Estonia. Concessions around 1,000,000,000 in acquisitions by BINCI Airports, broadly half of this in Serbia, another half the airport worldwide portfolio, which is, airports in Northern Ireland, Sweden, the United States.
And Costa Rica. We paid out 1,400,000,000 in dividends, share buyback, as I mentioned, offset the share, increases for shareholders, for employees, sorry. So we can say that, There's a little increase here due to the various investments throughout the year. Travel employed up as the next slide. Over €38,000,000,000 versus 35,000,000,001 year before.
Out of €38,000,000,000, about 31,000,000,000 is in Concessions, 6,000,000,000 in contracting, under 1,000,000,000 in real estate and holdings. Shareholders' equity up around €20,000,000,000, some debt, 15, some 1,000,000,000. You've $95,000,000,000 at the net as new gross debt up from last year. We thought it was relevant in the context of, the current marketplace. To lengthen our debt by issuing, more than we needed.
So, cash on hand end of the year was up $14,800,000,000 to $5,600,000,000. Now I'll come back to finance operations. During the year, next slide. We were very active in 2018 as you will have observed. We raised, 4,000,000,000 in new debt is that Finvinci.
Average maturity is 10 years. Average weighted cost You can't calculate from this slide because these rates are the ones on issue, which is the coupon. We swapped these most of them, for short rates. Which are much cheaper, often negative. So all in all, extra debt costs us less than 1%.
We also established towards the end of the year the financing of the Belgrade Airport, which was a substantial performance considering the lenders are mainly, not only, but mainly international organizations. All in all, we'll raise 4,400,000,000, which if we include Serbia, for consolidated elements in the group. At the same time, we pay it back around EUR 3,000,000,000 in debt, reaching maturity. The cost as almost 5%. So that's why there's an improvement in cost of debt entities that are not consolidated, but it did interesting operations as well 2018.
You've got Liza. Liza is our concessionaire company of lgv tour Bordeaux, they refinanced their bank debt to the tune of $2,200,000,000 by extending duration to 27 35 years, which, of course, improves the return on equity of that project. Lastly, kind of good liquidity aside from the points I just made previously increased approach to debt, leading to cash, short hand cash that's greater, will they increase our credit line from banks, some partner banks, over 20 of them? Reaching €8,000,000,000 credit line maturity 2023, but this could be extended considerably, subsequently. All of this was made possible by the good quality VINCI's rating a minus at S And P in a 3 Moody's.
I already mentioned, this has led to constant decline in the cost of our debt reaching 2.25%. Now if you're looking at average cost, for the full year. To reach this last slide, I'd recall our strategy when it comes to interest rates. In recent years, we've endeavored to extend the duration of our debt, all the while optimizing cost of financing. How do we achieve this?
Because when you borrow long, it's more expensive than you borrow short, Well, first of all, it benefited from exceptional conditions, but also we also decided to swap part of our that around half of our net debt and 60 percent of gross debt, same amount, in exchange for short grains, rates, libor 3 months, And that's how we were able to produce cost of debt. And why did we do this? Because we our view is that, about 7,000,000,000. One word's EBITDA means that, we're, correlating to inflation, which means there's no risk in holding on 7,000,000,000 net Debt at Floating Ridge.
Thank you, Christian. So how do we view 2019 as per the tradition we have to look for contracting our order intake at the start of the year. It's up, as you can see, significantly over the previous year, up 13 percent or contracting businesses are recording an increase in
their order intake.
If we look at the split France and outside France. For some time now, we've been in this situation with an order book outside France that's hiding out of France and the dip of the order book in France is fully, explainable in 2017. We booked very big contracts for the Greater Paris Express wasn't the case in 2018. So nothing particularly worrying there, all this to conclude that contracting businesses will grow in 2019. On the concession front, it's not rocket science, the growth in, motorway traffic will track economic growth, except, of course, if we suffer from exceptional events similar to those suffered at the end of last year, We can return to that if you like.
VINCI Airports growth also, anticipated growth rate slightly lower than last year because of the, high comparison base growing year after year. And of course, after integration of London Gatwick expected to close before the end of Q1. So growth for our concessions, which means that all in all, we expect 2019 to be another year of further growth in revenue and net income. It's on this basis that afford, which meant yesterday, and its infinite wisdom decided to propose to the shareholders meeting at Coupon of per share, which, 0.75 has been paid in the shape of an interim dividend in over 2018. That's up.
9% over last year, and so in line with our constant payout policy see a payout ratio for about 50% of our net income. All this, looks good. In closing, I'd just like to revisit some fundamentals. First of all, cash flow generation is obviously a priority. It is the key metric.
Since 2007, we've generated 28,000,000,000 free cash flow. And, it's used follows constant rules, Returned to shareholders 50% payout ratios. I recalled and then stabilized the number of shares through a constant policy of share buybacks on the market to avoid dilution, issues as part of the profit sharing schemes for our employees and to grow the group through targeted M and A, whilst maintaining our grail. Our ratings, so these acquisitions follow simple rules to facilitate our expansion in particular internationally. Next slide, please.
Here we are. Acquisitions follow straightforward rules. First of all, facilitate our expansion internationally.
Back to the early one.
Extend the maturity, the residual duration of our concessions portfolio, developing contracting on high value, segments The, M and A process is extremely rigorous. The initiative is down to the business units because it's, those units that will integrate and grow the companies acquire every project is, systematically screened by an internal risk committee, and then it goes before the board, strategy committee for acquisitions above 1,000,000 and goes to VINCI Board for the same acquisitions when the enterprise value exceeds 1,000,000, Lastly, during these various review meetings, we examine not just the geographical and industrial rationale that goes without saying the price offered and value creation expected. But also the control of the government's aspects and above all, bottom right, the cultural fit of the target with the group's systems and values. We have excellent know how in this regard, probably one of the most active companies in terms of M and A, sometimes very small, or very large, deals, part of our D and A and in conjunction with our rigorous process of organic growth over time to deliver constant, improved, ROC and ROE over the past few years. You can see the chart showing the past 5 years.
That's what we wish to say, and we're now available to take your questions. Say, what did they see the key? Let's see.
I'll see what I can question. Sean free staff came from Argentina. The
rest of the year.
Portion of the interpreters are receiving those sound. One of the
major focus areas for VINCI Airport's existing infrastructure with works down the road. Isn't there a shift, maybe, and, from greenfield targets that, greenfield are
motivated on the road? I'll begin with that last question, greenfield targets and air force, is that's been frequent. Usually, we're talking about yellow field opportunities. We would acquire, after a bidding process, we would acquire, an airport. And growth in traffic would mean we'd have to admit capital expenditure to keep pace with that.
That would be keeping Portugal. With extensions of several of our platforms, also this is the case in Cambodia where we started terminals that were fairly small and gradually, they were extended to, extend to secondary traffic. So in airports, almost always, it's yellow field. So there's no particular change there. Maybe the slide wasn't all that clear.
But there's nothing new in terms of our ongoing policy of development in airports. Quality of results in sheet construction. One of the points we look, especially at is, provisions, current provisions, recurring ones, are e short term ones for jobs or longer term provisions, mainly because of litigation, It just be leave it stable and actually, probably up with increasing provision and some under votes of those hedges. 14,000,000,000 dollars, $15,000,000,000 division. You've got pluses and minuses.
Clearly, but all in all quality of results, is good. The UK, what about the UK? Bringing out, could we could you count on that? What are you doing in the UK? Why are you in Paris?
Results are positive in the UK. And just to give you a specific in the cash improvement between 1718 on those £40,000,000. If you make it.
Well, the slide may have led to not, misunderstanding of the, or the last one 38. I think it was number 38 having to do with the, criteria or we decide whether or not to acquire, company, under control. This is ill worded here, but what we meant here is that in contracting businesses, these labor intensive is very important from the very beginning to have control. Best case scenario, hold a 100%. It's not always the case if we're sold the company by an owner, and to align with our interests.
They stand over this several years before retiring possibly. They then sell the remaining, capital amount when they retire up to that period. But in the end of the process in contracting, well, we're under 100% control because, it's all about, people, and you've got to be in charge of management. And Concessions, we prefer to consolidate because that's how you build a long process And that's how we can, be in charge of assets, supplemental assets, especially managerial assets. If we're considering full consolidation a full power operator for these airports that's meant that we've been able to take on board, employees, in Portugal and send them to Brazil and to Santa Clara Chile.
So what we can do is we do. If we can't, for instance, in Japan, it wasn't possible to consolidate Or if, regarding greenfield, if it if they think it would take too long between the time you'd have to serve the space in our balance sheet and the time we'd actually begin generating significant EBITDA for instance. It would have been possible to consolidate But it would have meant we would have had to set aside 6,000,000,000 in our balance sheet as in 2011 for EBITDA, which just start arriving, basically, starting on at, opening 2017. And then we'd still have to wait for the whole wrap up phase. So we felt holding off a 6,000,000,000, for such a long time frame wouldn't be worth our while, that it could deconsolidate.
On other hand, You can have greenfield in airports and have full consolidation. It can happen. It's, decided on that case by case basis. Nobody will fall at the back of the room now.
Hi. From Kepler. I've got three questions, if I may. So first, is on motorway traffic levels in France, from what you've seen these past few weeks, is there a return to normal or not yet, still a lot of ways in France, because reduction in, the price of subscriptions that you offer to frequent users. How how much do you think the impact is and how do you view things?
I mean, no one's compelling you to do that. Do you see it as a temporary measure? Or do you expect that, once you've offered the scheme, it's very difficult to exit because it means that On the year, you'll have to ask for an increase in 50% from the same users. Customer's final question. On, concessions CapEx.
100,000,000 if my memory is correct over last year, and that didn't happen. You, maintained CapEx at about 1,000,000,000. However, I see that in 2019, you plan 1,400,000,000 So is that just the lag effect or the other explanations? Thank you.
I can't answer that last question. Chris John will answer it after I've answered the first 2. Pierre Kope will correct if mistaken, he'll add a point if need be. Runaway traffic beginning of the year, what we can say we could say that things could be better. We haven't yet seen a return, to, the usual, figures.
There's still some slight disturbances due to some social unrest you're familiar with. We can't say much more than that. It's not very serious. If it just is happening at the beginning of the year, or no more, as, the year unfolds and you get these statistics in real time. On reductions for frequent fliers frequent drivers.
Discounts. It wasn't our rationale that we didn't look at the cost as such. We were looking at what needed to be done. To do outrigo contribution, to do out, to to give, some of our fellow citizens an extra purchasing power very difficult to gauge the actual cost. We'll tell you afterwards.
And even then, I'm not I'm not sure we'll be able to. It's It's difficult because first of all, you don't know how many people will take out the subscription. For now that they're 5000, it started off well. There was even a bottleneck on the website that, you know, to go to to sign up we don't know exactly how many people will. The minister talked about 1,000,000 potential customers could be interested for the whole motorway community, but that's just a guesstimate, so we don't really know.
Next, we can well imagine there'd be some extra traffic costs because since the motorway would be less expensive if you do the commute 10 times in a month, same origin, same destination for the commute that could lead to, please, some people to, take them out of way. And previously, they preferred to take, a regular road. So there are various reasons why currently we can't give you an actual estimate, and it doesn't really matter to us. We needed to address the, urgent matter. Maybe, in the end, we won't even be able to tell you exactly the specific cost difference.
On your last point, temporary or not, I can't imagine in the near future we would backtrack, something like this, unless, at some point, we had to more successfully revamped our marketing, our product offerings in various networks.
Let me add point. We've had the subscriptions at VINCI Auto. We already had 20 different subscription schemes and the 5000 sold, 2 thirds of transformation of existing subscriptions at CapEx.
On capital expenditure. So it's complicated to forecast CapEx for concessions. There are many different metrics that we're not in charge of, for instance, release of land, administrative, permits, and so forth. In 2018, what something's right. A little bit delayed.
We'd expect the things to be higher originally, but one of the things that changed things was the Strasburg bypass, numerous events in Strasburg and the job site had began, but it was, somewhat a difficult thing. I my way investments plan was to come out earlier than expected. The most recent decrease just came out in, August, September. That slowed things down vibrating as we look to things earlier, I'm not sure. Whenever in 29th, change our curve, Strasbourg will start to ramp up substantially investments planned from Eruditus, as well, and in Belgrade, works beginning.
I don't know if we're going to be in 2019 or 2020. There is an explanation for 'eighteen versus 2019. The various phasing issues 2017, 2018, 2019. Another question from over here now.
I've got two questions. The first on the M and A, strategy that VINCI Energy is, getting closer to VINCI Construction. In terms of size, are we going to see it's slowing in the pace of M and A on segment, secondly, on the plan to expand the ANA in Lisbon What are the funding arrangements? Is there going to be tariff or I'll set our compensation on that? Just to get some color on the potential, offset for the Portuguese ports you see.
You could add to
the first one. And then you could add on to the second one. All of our business lines are to make acquisitions. If they're the right opportunities, if it happens that one of the, business lines energy energy, in a long lasting cycle, but particularly, positive in terms of acquisitions that makes perfect sense to make acquisitions. We've got the business model.
We've got the size as well to actually move on this, globally. So we're not going to stop it. The February phases, this is mainly a time when we're digesting things we acquired in the past 2 years. 2017, 2018, We have acquired, from reserves in 16 companies, additional revenue and a full year of around 1,000,000,000. Then you have to of course, integrate all of this, digestive so to speak, and upgrade methods and so forth.
Everything should be fine, in 'nineteen. And VINCI Energies, will certainly continue, growing if someday VINCI Energies goes beyond VINCI, because certainly it's not a problem terms of size then. Eurovia also will grow. In Vision Construction also will make acquisitions, but cyclically, you will see margins are growing while reaching construction, 2.8, I believe, up substantially to the previous, fiscal period. But if it's a construction, what we're mainly doing is dealing with what we have already, managing what we have already before they're moving proactively toward, acquisitions that was on the 1st point, 2nd point, Nicola.
So the solution for Lisbon, the most efficient for all parties, is a problem of CapEx to arrive at, 72 aircraft movements and to see the future for the next 45 years, 50 session. That's the best solution. It requires, fewer tariff or financing requirements to be there. It's also the role of a private concession. They're fine.
Efficient, cost effective solution so that tariffs start increasing. The country remains competitive. Yes, there's a future improvement in regulation take out of the fact that there
are, CapEx and 2 airports, easily. But the clear objective is shared with the concession granting authority. The, enterprise must remain highly, competitive versus, other neighboring platforms in terms of the tariffs?
Brian, Garnier. I've got two questions. Can you give us your teddy on how you view margins for contracting trend in the coming years? 2nd question on Toulouse, would
you be
interested in, the stake of Kazeel Intulu's Airport.
Is the answer VINCI Energies? Was great bringing you to 5.8 percent, for the first time in 2018. It's good to stabilize at that, level. Eurovia and VINCI Construction will continue seeing their margins, improving in future years. We're going to lose The answer is also fairly straightforward.
It's a beautiful city. It's a symbol of global Aerospace. It's city that's very successful. The economy is doing very well, especially, thanks to aerospace. So, yes, it's an interesting asset.
But, we we our level had it done. We've got to build these things gradually and do appropriate deals. If it's an appropriate deal possible, that's fine. If it's not an absolute final as well. In France, currently, you've got Not under students, but some questions.
Question marks because, the regulatory authority is positioned ASI. Legal is observed they've had to change the rate, the tariffs in me, and, also, didn't disrupt the tariffs airport some original tariff proposal. So I have to look at how the regulatory landscape may change, in, airport areas such as tools.
How'd you do it?
Interesting.
Morgan Stanley. Higher construction in France. Confidence levels of contractors. What do you see on the ground in terms of volume order intake? Custom interest for contracting.
Contracting margin improvements rest on France, you promised 2% this year. Were we there? Are we slowing? I'd say first question. And Secondly, VINCI Energies, good return to organic growth, a few clouds, and the macro horizon.
Are you seeing, or slowing the pace with your industrial clients that might bring us back to a flatter scenario for the organic growth of Incy Energy. Adrianne Wood. Ocwen, this
is Bracey, then my colleagues will add points I didn't fully get what you were saying, but the 2% though.
Well, 2% was VINCI Construction margin in France. These past few years, was, close to 0. The idea of returning to an average level. Are we halfway there? Do we still have, in the catch up phase?
All in all. We don't use details in the detail. All in all, construction and France margin isn't yet, Optimals. Fabian, previously, we reached 45% margin. So it's been a lengthy process to get back where need to be, and we're still pushing to improve, operating margin and future construction in future years and particularly, France as to the, markets.
Generally, I didn't really understand what you were saying You said, employment and confidence. That's not what we see. In previous times, we've told you, yes, France is working to speed, so to speak, to get the impression that things are going fine because there's a focus on major projects like Greater Paris, but there are also parts of France that aren't suffering, but, there's not a whole lot of, wherewithal, to move forward. Where is it where there is a drop? I mentioned this earlier, it's in, residential real estate, housing starts, all in all, as Jerome will correct, but I don't think we can say that there's a plummet in the customer confidence or drop in deals on offer in the various bidding process that we see.
Mainly, I'd say it's a, it's a, stability, a little bit asymmetry, due to some of the major projects and greater parent, VINCI Energia now. You saw the figures in 2018, organic growth, order book growth. Now what happened in January even if I knew it wouldn't be that meaningful, we had to realize fully that the advantage with technology used by VINCI Energies. It's not just about Avenue, but also, renovation and improvement of process, making everything redo smart, smart buildings, smart grids, smart cities. Everything's becoming smart.
They did it. There are lots of, needs for, ICTs. This type of information kind of keeps technologies moving into every area. That's the overall trend above the uneconomic growth trends you know, that we were pretty good at it at VINCI Energies. We've been there, right, in a timely fashion.
We were into, this information technology was 10 years ago. We're talking about 10, 2, 2,000,000,000, some euros now. As the portion of this activity for VINCI Energies. So I'm not worried that anyone anyway, VINCI Energies, especially since their business model has been shown for some time now. It is organic growth, when it's available, and also gives you a lot of, growth through acquisition and we've got real knowledge in that area.
Does that answer your question? Yes. No addition? There are no negative signals here. I'm right.
It's just stable. Why would someone be thinking customers were depressed or something? No. Not at all.
From Barclays, some three questions, a more general question on new forms of mobility, car sharing, the car you have and ideas digitally at VINCI? How it's going to impact your various infrastructure in terms of potential investment and traffic? Second question, more point of detail, strong increase in the contribution of, of Alec sessions, is it Lima or other assets that are contributing more over last year that have entered your scope? And a question on ADP. What was your reaction about the from the senate.
And do you still believe it
in it? I'll begin with that one. Obviously, I have no comment on, what's going on in the senate I'm not sure the debate was entirely rational to be kind, especially when I hear Some people feel it would be privatizing our border controls. Every note does not, help things happen. Particularly when I hear, it's unimaginable It's something cool to privatize them monopoly.
Everybody knows that in airports, there's, huge competition for the Chinese war to move into Europe. They've got a much choice. They've they've got so much, so my choices in terms of entry to, through Heathrow She followed, Frankford Madrid Air Force of Paris Airports in South Wales. So the center okay. Fine.
The center is the center. We we feel confident on our airport story is something we began 10 years ago moving on opportunities, enabling us to create value for all stakeholders, not only us, But, we boosted the, economies, where the various airports are. Recent history of ours has shown that we're able to continue this story with or without ADP. We've always said clearly if the opportunity to rose, we'd be interested if it doesn't arise, we'll do things differently. We'll continue this story, find opportunities, just as those we've, been able to move on in recent years.
So no further comment. Now if you want my forecast, I think privatization will continue. My armshare thinking. Other concessions contributions, some of things. First of all, it's an improvement from the main contributors, not only land tax, but also JFira, the Greek bridge, and then we've consolidated this year, as you know.
All the all the litigation that turned around. So that was also including the setting. How much was that? We don't give the breakout of these figures.
If you have English questions,
French questions to begin with, three people online. We'll begin with the French language questions. We have a question in French for Royal Bank of Canada. You have the floor for your question. Hello?
About your expectations in terms of financial leverage and cash conversion. In the new businesses acquired this year, cash conversion, expectations, I don't have a question. Regulations in Portugal. Could you give us further details What are your expectations for, the New York airport and Luton airport? Will the tariff, formulas stay at the same last point.
Could you? Donald is about developing a concession in the US. Any regions you're particularly interested in?
Okay. If you could repeat the second part of your question, please. If you could just repeat the second part of your question. Thank you.
3rd question. It was just What are your expectations in terms of acquisitions in the U S and developing concessions in the U S?
Well, somebody's good answer. So that'll be simple. I'm not gonna answer that. So what was your first question again? I'm not sure I understood the first oh, the it was the financial the optimal financial leverage.
No. I'm not sure it was that. What? When when we make an acquisition Xavier said, we draw up a business plan unit by unit. We're looking a new company with a number of operational assumptions on revenue, margin, anticipated levels.
We, update in a model with a cost of capital, with the possibility of leveraging or not the target, but that's a process that apply boat to concessions of Contracting. When we do the prime line or lane, plants, and paving, we do that exercise. If we embark on M and A, if it's big one. We have hopes of a return on investment consistent with our BP. I can't that's anything I can say.
And the way it's executed over time, Well, every target's difference. Have earlier returns than others, but over time, in any event, we have to re the cost of capital targets that we set ourselves on regulation in Portugal and CapEx allocation. So briefly, first thing, if you're familiar with the ANA contract, we had a major milestone in the concessions to find an agreement in the future. As I said, the fact that the most efficient cost effective solution allows us to limit the tariffs. So the airport will remain competitive over the initial 40, 45 years that the country choice, and it sits us down to the grounds reduced the debate on, types of regulation.
I won't go into the detail. We'll remain both competitive and we have improved regulation. SEK 650,000,000 CapEx on the existing airport. One of the ideas is, of course, to boost its ability in order to reach a maximum possible capacity and EUR 500,000,000 for a new airport, the infrastructure is partly there because it's a military base, and we have a terminal and infrastructure equipments of about 500,000,000 dollars, $650,000,000, that's $1,150,000,000 in CapEx. On the U.
S, two words, you saw in the slide, On the highway front, there are fewer pure, concessions, French, or Latin America, style, we have California and Texas positions for a dynamic on free flow and the dynamic toll we invested in a company called Topla that does all the engineering, the back office systems. Sort of California, Texas, a very interesting dynamic state in terms of the tech and passenger volume. There are a few airport concessions in the years we have one person in our portfolio. At WW, we have done for the airport. That's about 3,000,000 passengers.
Now we have upgrading contracts and our concessions contracts small airports such as Hollywood Bearbank, but also some of the services at Atlanta, the world's largest airport. So we consider that that in is developing market for concession visa, useful opportunities to gain its foothold in the world's leading market in what it's able to be today. So we did major moves in 2018 in the U. S. In concessions.
So far. So next French language question. From JP Morgan. You have the floor.
Hello?
Hope you're well. Three questions, if you don't mind. Firstly, on the order book in Africa, which is seen a big increase. I'd like to know your view. What will the impact be on, margins for VINCI Construction?
Question number 2. EBITDA margin for VINCI Autoroutes, slightly down in 2018, probably due to the yellow vest movement. What did how do you think margins will trend now? What about, versus
the peak in
2017? Next, tax rates. What are your expectations in 2019? Do you think Tax reform may slow down. What can we expect a drop in tax rates starting in 2019.
Thank you. On tax rates answer to your question on tax rates, we don't know we don't decide, you know, worst case scenario, same tax rate and best case scenario as expected should go down by how much for it? 2 points. Good point. 32% instead of, 34.
Now it came from London,
I don't know what you're being here, but here in Paris, for the time being we've no heard no rumors no rumors, according to which there'd be any questioning of the sequencing of the drop in corporate taxes, which have been started by this government when they came into office. We could worry, but there's no reason to worry for the time being. Then she out of the woods, if it's down, you need to ask the LFS?
We're
in charge of the rest. We're in Africa, as you've often said, we can generate operating margin in Africa, which is usually, above the average rubinci construction. This was the case in the past. It's still the case now. All of our employees are are trained.
They're always looking for margin. Especially in more difficult geographies. I can't say much more than that. Your order book is top quality. Thanks which we'll be able to continue growing with margin levels that are, above the averages for fatigue absorption generally.
English language question now as I get to the time.
Go ahead. Please go ahead. Hi. Good morning. Good morning.
Apologies if I pick up Okay. Good question, but this is quite follow-up
by 4 follow-up by 4.
So the first one is related to the possible pricing of the bones of financial gas, we can have reliable prices as you as you find the market in the market. And the second question is related to the Amag CapEx, Amag CapEx? What do you what what do you see that has changed at least 1 digit. Exactly. 1 digit.
Exactly. And the second one is should we wait for 40 5 recovery also in 2018 for constructionals. Thank you.
No. Thank you. Are there native English speakers in the room maybe to, give us an insight on the questions? Well, Gatwick, we haven't done it yet. Hang on.
So there was the cost of finance. No. She's not here. No. I'm very, sorry.
So my answer is Xavier. We fully understood your question. I'm very sorry have to say that we can't go into such detail regarding on construction. I'd like to repeat what I've already said. That's to say there's no reason, I believe that construction cannot gradually reach margin levels that we've been used to, that is 4% to 5% EBIT margin.
It's a slow process because it's a big division. 3rd is widely distributed in terms of expertise business and geography. We're on the way. We've increased by 30 bps last year, 30 basis points last year, so that's set to continue. As to the rest, I'm very sorry, subject to Christian.
I mean, we are unable to say anything else further. Okay. No more questions. Are you sure? Isn't there a last very last question from the room.