Joseph's here so we can, begin. So good morning to you all. Particularly those who I was not able to greet personally. Thanks for finding a south between your probable, visitors Agrabar this morning and your, possible leaving on holiday later on. A big innovation as compared to our 6 months meeting.
6 months ago, Greg Wattebo has changed places. We don't plan to, to hire all of you. Let that be said, we wouldn't have an effect in our offices. We're very, is to have, Gregua Tibo on board as in best relations officer. So We said it would be some clips to show you photographs because, you know, if it is, let's start with some photographs.
This is But further after that, it simplifies our ability to adapt to a very difficult cultural that means it's a pre opening of a significant CapEx, still in oats, for example, but the culture is because it's a pictures, you see on the left, and then slightly smaller than the other side. Emmanuel, when you see these really adopted the Japanese culture with the traditional dress and the However, on the drums and photograph, symbolizes the tick off of electric vehicles in, France sir. Yeah. So this is the corridor project consortium led by the plans to invest in 200 rapid charging stations, the referral stations, and and a rapid charging station has power of 350 kilowatts and, could charge you for the call, but just in about a few minutes. So Cardor Consortium, it's investing in 200 RapidCharge on the major highways and then actually 72 on the highways network.
Investment through 14 additional charging stations. We have a partnership with local authorities to roll out charging stations which, was a time where the chairman consume that you needed to comply the major car makers and also plans to invest several hundred rapid charging stations on the front network by 2020. So all this just to illustrate the fact that it really is taking off because It was a cash 22 between the emergence of either because it was only possible as long as we had charging works and vice versa, but we see that they're really getting, the way. Here, this is a bucolic, view of Lima in Peru. We're not in charge here in the development in Peru.
We were just in charge completing the works. It was no clean feed from the technological endpoint of the second section of our land stack operation around the complex setting in the presence of a river that you can see on the slide, the REMAX Yeah. It's just a broker for 12. 10 months of the year and transforms into a torrent of the year, which is within 15 months, thanks to the very good control of geotechnicalfoundations, technology through the presence of our in Mexico. So this section, the exams, the 25 kilometers is open on 15th June.
So this is VINCI Energies. This is where you'll be heading for your holidays. Wind farms, Scandinavia. The next, I thought it obviously, as you said, in Egypt that we delivered during the course of the first time message, because it follows up the, now how much it will be delivered in deterministic Nile in each following works. It's a significant company outlined.
Back in, 80, you know, as you need to to 80 consortium, we'll available for the section of the Cairo Metro, which is, a huge city. So where his likely rooted in this country through our construction activities. Next, a photograph that illustrates 1 of the Eurovia businesses in the United States. Eurover doesn't just apply between United States. It also takes a some key deals as civil engineering as you see on this slide.
That's forgotten VINCI Real Estate produced this in a way and hear a photograph of our new centers for, trend watching, foresight, incubation, accelerators, Leon, almost near the Galvedon Paris that I've a few months ago, it's working very well, a very, power for them building on that address this vast subject, which is rebuilding the city on the city and on the city through some 2527, limitations of 6 weeks. So it's a magical searching and really just from a creativity. Other than that, for the essential, we nevertheless need to talk about the figure. What can we say this, first half was marked by strong growth in thinners, a strong increase in, the group's results. So Kjard will detail them in a few moments, VINCI.
Autourout, traffic road held up, but I got a VINCI airport to benefit from very good, moment to passenger, traffic across our airports and contracting organic growth world sustaining to transfer the recovery started in 20 17 and continued the international expansion with the integration of many new company is, I'll get the figures because I don't want to repeat what Christian will say. But next, just to show The picture in various geographies is deceased by European, positions. The three boxes in the center the fairing, pull up, developments in Asia, the US OCI are very encouraging that Africa, unfortunately, the convalescing news is that, order intake on Africa is the up sharply during the course of the first half that seems to have foreshadowed an uptick in business, in this region, VINCI Constructiona VINCI energy go into good detail, starting with givenchy airports, what do you see? Because traffic is growing almost 9% in Portugal, 9 or 5% in France far more than the average French traffic levels. So 2% to 3% once again, a car buildier, 8.7% in Japan.
That is better than expecting what we had in our business plan energy up over 10% in Chile. That's very good. What happened during the course of that half now? It's a great Salvador de Bahia airport in Brazil, you know, that it's the airport that serves the 2nd largest tourist area in the country. We've also integrated and start operating Coby, airport that, completes our 2 airports in the Osaka region, and we can continue to ride our expansion story in Japan and its rapid levels with good retail development, good cost containment that allows us to have this, earnings improvement with the, figures that, Christian will detail in a moment.
We still have in the past is what, nearby at 5,300,000 passengers, 25 year concession contract signed, but, now we must do financial close. That's expected towards the end of the year. And integration of the 8 airports of airport Worldwide, a set of airports that we acquired a few months ago with Belfast, the airport, a freehold, with a secondary airport in Stockholm with, several positions in the United States. And position the stake slightly less than 50% in, an airport in Costa Rica. So the story continues.
Autoroutes, highways, virtually, and France, good traffic level. 2% growth for light vehicles and 3.6 for heavy vehicles, continuing the trend seen last year, possibly even better. Over and above the whole number of disruptors, positive, or negative, calendar where the social unrest consequences of strikes, the French railways, all this which is that economic conditions and are more favorable in France, but also in Spain, that comes as news to no one. And I'm mentioning Spain because you know that our networks are also very much dependent leads for truck traffic on the Spanish economy. Two points to be noted on our French highway activity.
We're right in the middle of the holiday season, people taking to the roads with improving services in our rest areas. We have a number of, employees who volunteer and spend some of their, holidays, serving our customers, and then the launch of, U Liz, which is the new brand of, connected mobility of VINCI Highways with new live traffic information. You can access via an app, information, delivered by WEMCOMS, also GPS, satnav systems providing additional services, and this is being, prepared. A, an automated, toll system that you can, download on your smartphone that is based on the registration play, previously when you hired a rental car course, you needed to take your liberty badge if you wanted to go through the, automatic toll, plazas with this, once you've picked up your rental vehicle, you just enter your registration number, and you can go through with your iPhone as long as you haven't. You don't forget to erase the registration number when you return the vehicle.
Otherwise, you will continue to pay for the next person who rents the car. Outside France, we continue to roll out our model. I mentioned Peru Colombia, where with our local partner con con creditor, we won a highway section, Northeast of Bogota are some 120 Ks. We've obtained all the necessary authorizations, including the environmental green light no easier than in France. We just started the works in Russia.
As I said last time, we've become the number one operator Highway operator, not necessarily concession A. We're just under a 1000 Ks of Highway sections in operation. And the good news is that the traffic on our section of trough, at risk, the first section of Moscow 6. Peter's is very well. We had about 15% growth rate during the course of the first quarter.
Maybe there's a World Cup the effect. So that's in the bag. And then we can perhaps say a word that our Greek assets in Greece we have a majority stake in the Lyon on the bridge that we've been consolidating since the 1st Jan 20 18, that's, 2008 rather good traffic levels. We've also operated the two sections where we have a smaller non majority stake. It's important to note that now all our assets in Greece are in operation, which is a a miracle after the severe crisis that affected the country.
And this is thanks to the, great work of Christophe Felizier. He's no, he's with us. He's no doubt blushing. There he is, and he's done. Job of work that the Greeks alone would not have been able to do that is save the concessions in spite of the severe crisis that hit the country.
Contracting As I said, we're expanding actively Internationally on this slide. We just wanted to show you all the acquisitions, over the past 18 months with a color code, green VINCIenergy, blue urovia, VC, in red, something for everyone with different sized companies see more white in Australia for VINCI Construction or prime line to mention the most recent, which is, key acquisition 300,000,000 dollars, $600,000,000 in revenue by she energy, allowing it to gain a powerful foothold in the United States with the firm intention as long as it's patient to roll out a more significant part of our expertise in this hugely interesting region. Order intake up, well, at the VINCI Energia, this is in part due to some integrations. But even if we leave aside these new acquisitions, there's a true organic growth of organic intake at, VINCI Energia at VINCI Construction. There are reasons that apply or explain what might appear like, sub power performance that, the unit size is far bigger at Vinci Constructions, you have quarters, woven quarters without Q1 2017.
We booked a number of dates. Deals as part of the Greater Paris project. It wasn't replicated Q1 'eighteen. So this means that the basis of comparison and varies when you position over time, significant, projects, but there are 2 other factors on the one hand In areas of France that are overheating, notably La Paris region where order books are very full to focus on quality and margin rather than volume to avoid doing anything silly and a deliberate effort to to reduce our order intake in the UK through eventually UK if we go into the detail of the various businesses, VINCI Energies, the bottom left sees a return to organic growth. It was almost 0 organic growth in time last year.
It now reaches 4.8%. We anticipated that. It's also far more top line because there's the end of the activity of the mini acquisitive over the past 12 months, you can also see the bottom left, da Vinci energy achieves over a third of its revenue outside France. So we crossed the threshold 48% in France 52% outside France. HINCI Energy is benefiting from good trends in energy infrastructure, the Institute of the Energy Transition on the Industrial segment.
For modernization of production, plants as part of the smart industry or the industry 4.0 and everything that revolves around ICT information and give me technology, central to its business. So let me margin coming in at 5.7, which is the benchmark at VINCI Energy, and it doesn't happen by accident. It's a positive result of good business discipline, the sign that the acquisitions that we made, were right, and they're not pressuring downwards, our margin. Eurovia is fairly well with strong organic growth in France, 6.8 percent organic growth in France bottom left, but also 5.4 percent organic growth outside France. France is faring well.
Ditto for Poland, the Czech Republic, Canada, Chile. Makes us realize that Eurovium is doing a bit more an m m and a a little, but not a lot in France so as to supplement the, footprint of our business units more proactively in some European geographies particular, Germany and the Baltics and focusing on growth in North America, U. S. And Canada As you know, well, the number, top right must be taken with a pinch of salt, a heavy pinch of salt. It's meaningless cause urovia activities are fundamentally seasonal in nature, and it's traditional to have a negative or 0 margin in the first half.
It doesn't at all mean that we plan to remain at this full this margin level full year on the contrary, we expect the margin in Eurovia to continue to flourish positively compared to what it was 3.7 percent in 'seventeen. Construction, always more difficult to summarize. Because it comprises a number of small, medium size and large projects. There are a number of business activities involves, we need to go in a bit of detail. We can say that France is confirming the uptick in growth, 2.1 percent organic growth.
Bottom left. Like for like, we had it at that level in 'seventeen, so we confirm a recovery and organic growth is important because we suffered. Sharp falls in previous years in 2015, 2016 were deliberately reducing trimming our sales in the youth Ks or is to focus on margin quality. Africa is delivering a drop in business. Good news is that order intakes are sharply up.
So that seems to herald an uptick in business. And then oil and gas, particularly entrepreneurs contracting in the midstream, remain challenging given the fact that, CapEx by large, oil and gas, majors are still at, low, even very low level. The only activity that's, doing fairly well at Antopo's contracting is oil and gas transportation with our subsidiary speaker bag that still is, doing a few deals on the ones that remains challenging. Lastly, I'd like to No, but good business in France, firm in Central Europe and in the Pacific region where we benefit from the integration of CMO Y that was acquired last year. Well, so all this means stable activities.
There are pluses and minuses, but overall, stable business level with an encouraging increase in EBIT margin. A quick word on Real Estate Property Development that's doing well, that the, house bookings grew significantly in 'seventeen versus 'sixteen as the order of some 20% is still growing. We've, posted an increase of 4% in, housing, units, reserved. It's probably the peak as we see it, are we gonna remain on the plateau, or is it gonna trend down once we don't know but I don't think we can imagine that we continue to grow at this pace in property development for housing in the coming years. Good business in the corporate real estate segment.
Offices, hotels in the pipe here in Paris. So I'll go over to Christian. I'll say a couple of words about the outlook afterwards. Thank you. Let's start with with revenue, and you'll see that, it is growing at between 6 7%.
In other words, concessions, and contracting, are running roughly, neck and neck. But you'll see that the, the origin is different because in incongitions, the rise in revenue is, fueled essentially by organic growth, which was particularly strong in VINCI Airports, at 11% whereas in contracting The rise in revenue is, driven mostly by external growth. And here, we're talking mainly about VINCI Energies. Organic growth in contracting is at a level roughly comparable to what we noted, last year, at the same time, roughly 2%. But it, depends on the because, growth has been kickstarted in VINCI Energy plus 3% versus 0.
It remains high in year over year plus 6% that your remember there was a very sharp, drop in in in activity, at the same period last year for year over year. Were active businesses in plateauing in VC with, -1 plusversus2.8%. My geography, and I, businesses remain buoyant in France with revenue, and being essential back to organic growth. There has been an increase in, in pace, almost 4% compared to 3%. I don't know if there's any particular conclusion to be drawn for this.
Internationally, the rise in revenue was explained essentially by the integration of our most recent acquisitions. Those made in 20172018. All in all, acquisitions represent roughly 1,000,000,000 additional revenue. The most significant items being, VITC Energy, Scandinavia, and fortek, iTech Hallumman and Primeline in the US. And, of course, Singapore.
More Seamore white in Australia. We have, acquisitions in Canada. At TNT, I forget which, which Baltic state, I think it's a stadium and, Boots airports, Salvador Airport. It should also be be noted that, we have reconsolidated the, Paul De Rieu Antarian company, which is injecting additional revenue for the period. Comversely, there is a negative exchange impact because of the fact that the euro is recent versus virtually all currencies, in particular, dollar dollar is down 12% against the euro.
And, of course, our our our revenue realized in in in, it is converted. So, necessarily, this means, this in euros. At constant scope and and and forex, the business is up slightly with variations depending on where you talk about slight growth in Europe +2 percent. The American continent is stable Middle East and Africa, down, but, the outlook is up. And, Australia and New Zealand, as indicated.
Now to the EBIT, it is up to €15 for the period, plus 11% almost, almost, twice, all almost twice, revenue. And, it's the the basis point figure is not what it should be. It's, it's plus 45 bps and the same in both branches. Highways And Airports are enjoying increased, traffic. And, major part of our costs are virtually, virtually fixed costs.
And as to contracting, the EBIT to, revenue ratio is also up by, 40 basis points plus 2.7% for the year as a whole. But this is, and this is due essentially to even see energy with 5.7% margin and progress in construction. 1.8% over, year over year, and, construction are not representative of the full year because there is a strong seasonal effect here. The major part of business being carried out in H2. The P and L, the, current operating income which in includes, increased sending in share payouts to to staff members.
And this, explains the EBITDA number. We have increased the amount that we are contributing. And there is, an improved contribution from the, other companies, the Equitized companies, roughly 100,000,000 half year on half year. This is partially due to the good performance of of of of some of the investments I mentioned ADP, but also Japan and, QADC. And there was some what else?
There was a We had to provision a a concessions, investment last year. This has not recurred. Coastal Desk. A lot of this is that cost of debt is down, but I'll be talking about that. The tax line has increased, which is to be expected.
There is no longer any any dividend tax to be paid out. And this year, there is no dividend tax. And and it all and there have also been some provisions for tax risk in in certain countries and businesses. So it all, net income, up 1.3000000000, a 26% rise But, if we correct for all of the one offs that I just mentioned, the increase is roughly at the same order of magnitude as, our our our net income, and it would have been 11% in other words. Cost of cost of finance, on a on a 12 month basis, you'll find, of course, all the details and the NXs, but that is up 1.1 for the period, essentially due to external growth, which has been highly active over the 12 month rolling period.
Into 2018. Cash flow for the period, if we correct, it seems free cash flow seems negative, but In CapEx, there there is a part concerning concessions, highways, and, airports, which are not, which are not full year CapEx. So the free cash flow not counting those effects is actually a $300,000,000 positive, which is not so bad in view of, working capital. Requirement variations negative, and this is attributable to civil factors, 1st of all, strong seasonal business in Eurovia in particular. And of course, naturally, we're paid after a certain there is a time lag before we receive a payment.
Also, the fact that we're consuming down payments, paid, upfront and and in the course of of the the project. And this is also affecting WCR because, essentially, we're talking about real estate and real estate is an expense which affects WCR So all of this combined, plus, perhaps the fact that, our businesses are all paying more and more attention to, receivables, and, and, and payables. And if you don't pay in time, you are now subject to penalties. In France. I don't know if you've been following our recent legislation.
For the moment, we have not been penalized. We have to be pretty careful about WNCR, but it's it's good. It's the right form of cholesterol. It's the right form of WCR because it shows that essentially a business cycle is favorable. I mentioned acquisition of new companies, but are brilliant for the period.
So it's pretty active period, for the the period. All of this is reflected in the balance sheet with more capital employed, centrally fixed, in which there's, CapEx when we invest in, in this is reflected at this part of the balance sheet, but, there's also equity being strengthened, and at the same time, debt, which is increasingly long term, debt So logically, it should be funded by long term resources. And, we've been fully active on the, on the markets over the period. Vince might firstly, the rating agencies appreciate our policies. They have both giving us a's, which in our other business is relatively rare.
And SP, cable that it has breadth of upgrading it. So they've at least given us a positive outlook we issued 2 series of of debt in the period of the market, so they're much more volatile than they were same period last year. This seems easy. We get a great low long rates, but in fact, it's very difficult because you have to be very, very watchful the the market opportunities open and close the windows open and close. So we have a a permanent watching brief.
We have, pursued our minds as indicated, and 1.4% which we've swapped the, with the short rates being extremely cheap, all of this has optimized the cost of our debt, which is below 2.5%, on average for the period. Liquidity is high. It is drop, which is normal for the period of the year, but it is, will be bought back up to the base for the rest of the year. The structure of, debts between the fixed and variable part, when I say variable, variable part means a rate which is tagged to the reward 3 or 6 months, right, and you'll you'll imagine that this variable part, exactly reflects cash on hand because we have a natural hedge, between the cost of of variable and the, the yield of our our short term operations and 1 year of of EBITDA. Through true EBITDA naturally is a bit seasonal, but it's roughly, 1 year of EBITDA for concessions because we consider, and this has been correctly, if not scientifically proven, there is a good match between interest rates and, economic cycle growth and or inflation on on on which our, to which our concessions are today.
Thank you. Thank you. Briefly before moving to Q And A, what do we think of 2018. Nothing hugely original as compared to what we thought 6 months ago. So, you know, first slide, pretty, traditional show 2 things.
The loss of 10 years growth on truck, traffic that is only just emerging from the period of crisis back to the pre crisis, levels of 2008 and second lesson the two lines, light vehicles, heavy vehicles are trending in the right direction. So barring unexpected, unforeseen events on the price of fuel. We're set to see our, auto route traffic grow of the order of 2017. 6 months ago, I said 2017, slightly downward I would say 2017 slightly upwards. It seems that we're slightly ahead in the first half.
But all that, second order. On airports, trend in a similar vein, given what's in the pipe will end the year with 45 airports under management and VINCI Airports is an aircraft with 2 very ARPU engines. The first is the specific, dynamics of our airports. And secondly, the countless opportunities to acquire new airports, on the rise and a global level. And we have a number of deals currently in the pipeline.
Now if we look at the way in which, things are gonna evolve for corn contracting. Look at the order book, you see that it's at an all time high, €32,700,000,000, well up over the previous year compared to what it was back in June 2017 with, changes across businesses and geographies, but overall, it's varying very well. And it's important to give our employees both visibility also, confidence. And in the contracting business, we only deliver good work as long as they're achieving conditions of trust and confidence. And so we confirm out the guidance that we indicated 6 months ago that, summarized on this slide, I won't go through it in detail because I did it 6 months ago.
All this led the board that met, yesterday to decide to increase the interim dividend to EUR 0.75 per share, up 8.7 for 3rd consecutive year as compared to what it was last year. The same period, and, the payment date as shown here is, 8th November. The group's, in good shape. It's, projecting itself into the future. It's undergoing transformation with the same strategic equation.
Increased share in concessions when, in particular, the gradual strengthening of the airports depending on opportunities. Just to figure you may have forgotten, the Airports component, represented 0.8 percent of our revenue back in 2013 in now accounts for 3.8 percent of our total revenue. And that's important because, of course, we have to identify the assets that are sometimes very expensive. We really have to go all out with the accelerated growth of VINCI energy, due to many opportunities that have put to us as part of business consolidation globally that now playing field and, of course, a quest for expansion at VINCI Construction, the most high-tech segments that offer the characteristic of having the highest international growth potential. I'm thinking of all the skill sets present in Solitache Fritzi, one of the key components of in sheet construction.
And with everything I've said, all this should lead us to a gradual shift to a greater international presence. That's what we can say. We're now available to take your questions and Christian will be reassured because he has a taxi waiting for him at 12:30 is shut. We have 45 minutes for Q and A. Everything's doing well.
We. Thank you. Actually, I've got 2 questions. ADP, you've come as no surprise up until now. VIN, she's been faithful to the doctrine think aloud think a lot about it and never discuss it.
Can we say a few words about it and can we perhaps unpack the margin increase of VINCI Construction, 40 basic points. Does this include clauses of return to better fortune and how's the UK trending and specialized construction, particularly VC, GP and solitonjuez. Thanks. Okay. Start by answering the first question.
They'll allow me to, kick into touch so that Christian can answer the second question. ADP actually, there's not much you to say, it's only the fact that ADP is clearly in the new, packed law, we see 2 things that we like. That is the purpose of the government is that the future shareholders or the future ADP shareholders should focus, in particular, on quality of service and the growth a strategy for ADP. So we seem to be ticking those boxes. However, there's not really much else to say why because we know that this pack law is currently going before parliament.
So, we know how it entered. We don't know how it's going to emerge. That to our knowledge, the state hasn't, yet decided how it's going to proceed. What seems certain is that the state's going to budge, but is it going to retain a golden share Is it gonna offer the possibility to some of the major, many competitors to take possession as a whole of the state stake, or is it gonna salami slice it and authorize people like us or our peers to only have access to a few bits. We have no certainty about that.
So we are almost in the same situation at 6 months ago, although it has moved forward because it is in the draft that, law, the second thing is that we feel that the state has part of this draft, which obviously needs to be refined as regards to ADP. We clearly sense that the government has struck a a balance between its, interests, for its own assets, but also to demonstrate through this privatization quote unquote, there'd be a strengthening of government control through a regulation, contract that it would be even tougher as compared to what exists today. We're used to that. We have a number of airports or other airports. I mean, hard way concessions in France, so that's good.
I mean, if the government is comfortable with what's indicated in the draft law that, that suits health. Warm bullet emerge, fully. I don't know. The timeline is, largely dictated by political events. So there are times when they have other fish to try fries.
There are times when there might be a a window of opportunity or maybe there need to, put this on the table. I don't know where that in that it's going to emerge, but how we still don't know? The, construct results. I mean, it doesn't really need to try and interpret the thing at June 30th last year. One 0.4% June 30th, end of 2017, and we delivered 2.5 full year.
So I mean, I don't know if it's going to be the same gap between 8 1, 18, and full year. We have, a slight idea, but we don't necessarily want to discuss it now. So the same thing we have, VIN construction for us that continues to recover. Last year was negative in H1, but positive full year, here, we're slightly positive in H1, so we hope that things will improve for the year, we have international subsidiaries that are continuing to fare well, Africa in spite of revenue that's down the, earnings figures are good, detail in other geographies, Eastern Europe, Perciania. We have Soletence sure if it's, you know, continues to post good results.
UK, they flat. It's actually back to Breakeven a bit more. I mean, there'll never be miracles in the UK for us, but we're back back in the blue. Antopause slightly negative. That's unfortunately the the the situation for Antopause today in spite of the good speed, speed backup and the good major projects delivering a pretty stable result as compared to what they normally do.
That's what I can say rather than going to the figures that don't really make much sense. June 30th. Some outside had a slightly positive impact as the fringes of the application of the new accounting rule that you may have heard about IofRS 15, but we believe that full year IofRS 15 will have a pretty much Sure. Effect 15 is a rule that henceforth compels us to be very cautious as to the way in which we book, into our accounts, proceeds and business that hasn't been fully contracted when we do additional works. We present a variation order to our trying as long as they're not nailed, down set in concrete, a 95% challenge of things going well.
We can no longer, as we do put that as the revenue is earning. So there's an adjustment in the net situation, that, it's positive in our favor, but what's negative is that we more cautious than we were. So for the half, it's slightly positive full year, it should be pretty much neutral. Hello? I have two questions.
And before the questions, could I simply say best of luck which best of luck to hang wild people in his new job. On, workworks, there's been a lot of talk of delay, particularly in works in the east of France. I'm felt that it was essentially Colas. So I heard that it was essentially Colas that were penalized. Have you been penalized?
And if so, will this have an impact on H2? And second question, do you have, more visibility as regards, local taxation? The tax debitecial, municipal taxes. Very simple for both. The the answer is no to question 2.
I I have I'm I have, no particular insights. If somebody does in the room, I'm I'm I'm interested in what you have to say. We don't have much influence. And, as to the second question, my colleague will answer, yes, on roadworks, Yes. There's been a lack of material, a lack of asphalt, and some, projects have been affected by this not significantly at this juncture, but the central thing is to come to grips with the problem early in the day and, observe what the rest of the industry is doing.
And, Australia and downstream, the, the the the transportation system and to work hand in hand with the, transportation ministry. They are aware of the problem. We have a team to coordinate with the ministry. The causes have been analyzed. There seems to be a a a abortion, build up.
And, at the same time on paper, there is no reason to believe that it will go on in today, and I don't see any significant impact for the Eurovia, like, financials as we speak. Wasn't behind you before that, but I think he has in my front. Raymond James. I've got two questions. One on VINCI Enerty.
It seemed difficult to go below 5.5 percent EBIT margin. You post a very positive plus 20 point performance for H1. I know you don't like to, propose comment on H1, but could you to expand on that. Can we expect a similar performance on a full year basis? And and secondly, on Greater Paris, are you expecting any, good news for H2?
I should speak very briefly. And then hand over to Eve for question 1. Then I'll ask Jean to answer the second one. Could I say, I mean, this has been since I've closed. Typically, energy is in a highly an acquisitive stage.
And when we take in a new organization, obviously, this is going to, to some extent, dragged down the operating income because, they have to be brought into line. And, this not this temporary drop in margin caused by an acquisition is offset by the profitability of the companies who were already. We didn't Vinci energy, if tomorrow, we were to put a stop to acquisitions, which would be done because there are lots of opportunities out there. Obviously, we would be quoting a higher margin than 5.7. And the second point is that, I feel that Vince energy is getting pretty close to rounding up the 5.7to5.8.
But we've been working for several years now. I think we're now pretty close to the objective. Well, for for 15 years, our margins have either remained stable or risen. Mobile part revenue by 3. So why why trench, we did a little better in H1 despite all of the external acquisitions.
France is doing very well. This and then there will come a day when we will Overstepped the 5.7 mark. Greater Paris and Sean. Well, there are 2 lines 16 2 and 17 1, which were up for 10 to 162, which was to be attributed in 2017 will, in fact, be attributed at the end of 2018. I have no full professional vote.
And on 'seventeen information from the moment is that it should be for this year, but it may be postponed to the beginning of next year. So much for Credit Paris. So the planning process is longer than originally intended. Obviously, Crystal Airports. Firstly, question of AA.
That's a remarkable expansion. And secondly, how do you manage to have growth twice as fast in France as the legacy operator is it a question of of traffic? And The second question is on contracting. Their margin is up by 40 point. Do you expect to do as well on a full year basis?
You said that you're interested in in in quality, in other words, margin than in quantity, and with a drop in available labor, are you affected buy that issue today. And what do you do with your intentions too about it? Nikula, on the first question. Margin, as you would have observed, up everywhere, EBIT, EBIT is up from 40.5to40 3.4. So for the period, 59.5.
So, obviously, this is not Anna. Anna is up with the good traffic levels. And this year, traffic is up by 8.9 versus a 9.3% average. So it's a it's a strong flagship, but it's not the only one. And the, the trend is a rise in margins.
It is roughly the same everywhere. Half of the, EBIT growth is coming from Anna. So the other half is coming from elsewhere. For the equalized results, Japan is far above expectation the same for Cambodia. 3.7%.
So it's it's very it's very regular. On France, there are 2 things, affecting France. First of all, the regional platforms, which we manage, Leon, but also have been opening new lines at a very fast rate, and we have been contributing to this with both traditional and robust companies participating. So that is the 1st trend, but, our people have been very effective but in Lyon, for instance, we're well ahead of the forecast for our the 2 year forecast of our business plan, and this is also a European, momentum and we're part of it. So we we put a lot of of effort into creation of new lines, so that all in average, we tend to be above market, because, traffic growth also means that money is being spent in the boutiques and that we have, cost control which helps for EBITDA.
So good revenue, trend, and all of this gives rise to the, the value you saw in the figures. On the second part of your question, breaking it down, Vincey Energy is going to produce what they've been doing for several years. Now, margin rates, it will take 10 points. You know, year over year. I mentioned earlier on, we're going to continue to improve margin and construction is also going to improve its margin.
And the second point shortage of labor. I don't know who wants to fill that one, but that is a real a really difficult issue. In some of the areas geographies we work in in Germany, for instance, it's it's becoming quite serious. In some the businesses and in some geographies, it is becoming an issue in France. But, we know how to address this type of issue, in other words, we pick up the pace of the hiring, process and Jayhorn will tell you how we, were able to, able to step up the pace of hirings in the credit Paris projects.
Yes. There is a labor shortage in some geographies, including surprisingly enough in Poland. Where we have workers coming in from a little further eastward. We have trading programs across the board for Greater Paris. We have a project called the city under the city.
Which is trading 100 of workers at all levels of the hierarchy. And also hydro drillers, but, some of the, some of the heavy plant requires specialized operators and drydocks. In some cases, it takes 12 to 18 months before we can put an operator onto a machine, which itself costs a fortune, And, we've been able to step up the pace by means of of digital simulators, which, which reenact exactly what happens within the operating cabin, and this means that we've been able to to to train people within a period of 3 months. Simply because we can test all sorts of situations, which we can't test in real life. And so we have operators who are able to come up with the right reaction unforeseen issue or technical difficulty.
And the the idea, obviously, is that, we should be able to feel reasonably sanguine about this labor shortage. At the moment, we don't feel too much on the threat. Next question. Yeah.
The first one is related to the dividend. Should we wait for a similar dividend growth for the full year, assuming the pickup that we have between EPS growth and dividend growth for the first half. So 20% on one side and 8.6% on the other. And the second question is to the net working capital, if it's not working capital, should we wait for an improvement of the size reduced size in the working capital of social by the year end as in last year or we should expect the same trend for the next 6 months. And the last question is related to NICE Airport regulation has moved from a high grade to active to our almost curtailed system.
We have tariff gap. Should we wait for a similar change? Eventually for ADP.
If you put your headphone on, I will answer in French Okay. I'll start with your last question. If you read the draft law, the pact, draft, or you'll have seen that we can say there's a hardening, a toughening of regulation in terms of conditions, terms of the principles, but then I'll develop the devils in the detail. But there's the fact that we have rings and the adjusted, double or sing single or double tilt system on a b on ADP. You can't allow you to agree to that.
So the regulation of ADP, because that's your question, will be rather more stronger robust than it was up till now because the parrot law, as long as it's not amended during the course of its process before parliament is ring fence is the principle of the system as it exists today. On the dividend, it's very simple. Yes. Of course, the dividend full year isn't going to grow by 26%. As on the face of it on net earnings seen to have grown in H1 for a simple reason.
Chris Giles explained that, the Yeah. I see a lot of the things being equal of our performance of net income in H1. I don't know if you gave the number, but it is more of the order of 11%. Not 26%. 2nd 5 is that we're consistent.
We have a payout a policy that's been consistent now for a number of years. And with a payout ratio, 50% of our net income, by way of dividends. So generally, I mean, we ensure that the indication given in terms of the increase of the interim dividend begins to give an idea of the way in which the full dividend for the full year might be And WCR, do you wanna speak to that? Yes. So I certainly won't wanna give a WCR forecast.
There's a couple of bits of receipts. I mean, that's $300,000,000 contracting. So if things move fast in both the directions. I've reached, WC on one of the programs. I explained that he has one of the drivers the WCR increase was so VINCI Energia.
We're not banking on a drop in VINCI Energia for the to the year, we can expect that the same cause is producing the same effect negative effects we consume via WCR when we increase the activity of Eurovia, it's less that coast in construction. It depends how they're structured in terms of down payments. We're lower in terms of major projects at construction. If we look at greater, as I've been great at Paris, we've completed big deals internationally, notably in Russia, Ukraine and Hong Kong. So we're not expecting to bet.
Jerome will correct me if I'm wrong and Qatar yet. We're not expecting to receive a big down payment on deals before the end of the year. So that doesn't necessitate in favor a very significant improvement at WCR between now and but of course, there will be a natural shift because they said seasonality in receipts and spending is pretty marked. I don't know if that's answered your question. But that's how I'd see things today.
I won't promise the WCR improvement full year given the information available to me. Once again, a couple of days of receipts and I can shift, there can be 300,000,000. If you've understood what Christian said is probably the to be misspoke, No. Actually, my the aim was for you not to understand those of you who wanted to understood have understood. Kepler Cheuvreux Joseph.
Question on ADP. That these possible scenarios where you would not go, no goals for you that would be, a blockage that we don't know if it's going to be filled as a block or in several chunks. If you end up with a small chunk, I mean, would you still be interested? And the second scenario at one point, Mister Pina Le Maier, the minister made statements a couple of news talking about this backlog before parliament saying that if ever we don't agree with the concession, we can't spread a deal. We'll unilaterally set the tariff hikes.
I mean, if things were to pan out that way, we'll see what the but if things were to happen like that, would you go for it, or is it not worth taking that risk. Joseph, it's impossible to take just one off item. I mean, the day that packed law has emerged from the parliamentary process and the day with this law on the statute of the administrations have crafted the spec sheet. We get that spec sheet. Well, of course, the terms, I mean, we can answer those questions, but I mean, there are 2,000,000 unknowns.
I'll give you a small indication. Let's assume that they offer small chunks and that we derive from this strategy, the fact that for us, there's no chance of one day controlling ADP. Well, that point, we can draw conclusions. If on the other hand, the sales are small chunks, but it's our sense that it's only stage and the in due cause of a possibility of playing a more controlling role. The answer can be somewhat different.
So All that can only be truly analyzed that they, we have the details, especially on the contracting clauses, the regulation clauses and the way in which the state plans to proceed. Because on the tariffs business, I mean, the the current, ruled very healthy ground bars. So healthy, I mean, in large part, ADP sound is the ADP tariffs based on the amount of CapEx with a return on the basis of regulated assets, with a WACC and an ROC, the is to the roads ROC slightly below the WACC. That's the logic. We can't imagine that the state will compel people to invest.
And at the same time, compel that there's no tariff increase on a part with our investment because, that would, be, totally spurious through a simple there are principles that doubled in the details of where, calmly are waiting to see what emerges from the process. And Christian wanted to add definitively those who understood what I said. Is that what you're about to say? No. I mean, there's ADP business.
We know it's dragging its feet. I mean, there's a clear sense. So are they going to act? It's not absolutely certain because they say there can be little considerations such that they may find that the time's not right. When you're at the beginning of a presidential term of office, you can push the number of things through.
But after a while, the leeway shrinks or narrow so there may be events today, but there isn't a political window of opportunity. There's some attempts that they can go for it, sir, and then meet time, we continue to, expand in the airport looking at many other issues because there isn't there's more to life than ADP. If there are any more questions from the floor, we'll take questions over the phone in French, we'll start with French questions. We have a question for Manu teach. Hello.
Thanks for taking my questions. I have a few on contracting. First off, you mentioned the pickup of business in Africa. What are the margins that you're expecting or hoping for in this region? How do they compare with the margins in Europe.
First question. So question. What inflation do you see cost inflation? Do you see in your contracting business And have you got provisions in the majority of your contracts? And third question, do you see constraints in terms of labor resources in terms of, contracting.
Right. Thank you, Olivia. So 3rd part of the question, we've already answered that, Sheryl, answered fairly completely. Yeah. There are parts of the world, notably certain European countries where there's tension on, labor on the labor front that, of course, we can manage that type of situation by putting in place recruitment processes and training acceleration as, to offset those, shortages.
If I say we're used to that, It's not the first time that it's affected us. And in this particular phase, countries such as Germany, were, in fact, ahead of the curve. I mean, it's been a while in Germany with, in a, tight constrained environment in terms of access to labor year over year. They say that, jocularly that we acquire companies sometimes, not given the quality of the business franchise, but given the quality of the labor we find in the company, which is something we don't do when they were in opposite position, but we have, a surplus headcount. So we've answered that.
The question about inflation cost inflation, you have to understand that in our attracting business, either you're on, projects that are fairly modest and a short, short term, in which case, we don't really have the time to be positively or negatively impacted by price variation. Because soon as the deal is signed, you have to deliver within a few months or were on far longer term contracts. In which case, we have price escalation clauses that allow us to be compensated because these formula baskets that include labor, price of oil, etcetera, that allow us to even things out. Turnaround in Africa before the crisis brought about by, commodity and oil prices. We used to have, margins in Africa.
We're much previously double digit. Of course, these, margins have sold cars. We can't continuously have a drop in business 34 percentage business, sometimes 6% on our African countries are maintained. Such high margins, but margins in Africa have remained higher than the average margins have been sheet construction, looking at Chevron, quizzically, significantly higher. So Well, let's draw in margin than we were, but we remain very good in terms of margin in Africa compared to the whole of VINCI Construction.
So if Africa has turning around, it's gonna have a double positive effect on VINCI Construction, both linked to volume and that margin is generally better than the average activities of into construction. Nabil Ahmed from Barclays. How are you? Yeah. Hi.
Good morning. Thanks for taking my questions. I actually had three, two questions and 2, sort of, sort of, follow ups and understanding on the half yearly results. And some more strategy focused questions. So based on EBITDA, you mentioned the increase in share based payments that accounts for the large part of the.
The first half is that house in the holding column or if you look It's slide 78, the plus 36 that becomes minus 24. Is it in the businesses? And so could we perhaps have some color on the EBITDA margin drop of contract in H1. EBITDA this year for the you're you're gonna say that I'm not actually 12% growth in revenue. Percent growth in EBITDA.
We were used to better in terms of operational leverage from the ports unit. I know there is scope effects, but Aren't there also a step up the cost step up that would account the sluggish growth in the margin? And final point of The adults are open above ADP. In the past, you mentioned opportunities in India that you also have a framework agreement for certain assets in Iran, what's the situation on those 2 markets in other countries where you see looming opportunity to expansion? Luca, you wanna answer that?
On the that's why we regularly signed MOUs several years ahead of time. And, of course, those that we're signing now have not yet given rise to a contract, particularly in in Iran. There is no no activity at all going on in those countries. And, obviously, for the rest, we're not gonna tell you what we have in the pipeline. EBITDA of airports and the cumulative EBITDA of its component, it's these, there are 2 of them that are comparable.
It's all a matter of mix and how we, how we, how we dovetail the EBITDA from the various participating, therefore not necessarily a link between you. Salvador, when we have an external, and integration with obviously a margin, which is going to be a little below average. The the, the change in EBITDA of each of the participating entities is going to be significant because we traffic. We have a slightly negative Forex effect in all of the dollar geographies, obviously, is going to be a drop. But, stand alone, each entity is going to have 30, an EBITDA which rises significantly.
On on on on total EBITDA, you you are not to, isolate the holding from the company from the US. Because, obviously, there's a connection between 2. So the the the the income for the holding company should be attributed on a pro rata basis. For it to be meaningful. But the explanation I gave earlier was for the entire variance of 1,000,000,000.
Coming from the fact that we have cash outflows, which have been higher for this period than last year. In other words, the check we write for the employee share purchase plan, because the available market for each individual has gone up, and it happens that the share price was more attractive, was more attractive during this period. And for the same period last year, more attractive in the second half of the year. And so people tend to describe at the end of the year last year rather than the first half of the year, meaning that, our contribution is going to vary accordingly. And since I think that a lot of staff members, bought up a a a maximum of their their capacity, for a h 1 2018, probably we're going to be facing, slightly reduced the outgoings in that respect for the second half of twenty eighteen.
I hope it was clear this time. So if you want to attribute it to the divisions, compare the numbers of, of of staff members for each entity, and that will give you an idea of the probable variance. Yes. I have another question in English before you. ZIP or annual taxi.
Another question in French from Niccolo Mohan from Morgan Stanley. Hello there. Three three questions just like to return to VINCI Airports for Nicola. This one We've understood the first half. There was a provision, right back on tab.
Is the comparison was, clearly, improved in country or what happened. I think the performance this year tends to be rather excellent. I mean, once again, can you tell us if there are other one offs or other, provision river tours in the first half this year in, in the airports. Secondly, we know in the cash flow, a big rebounding CapEx for contracting is something that we can extrapolate, full year and into 2019 or is it linked to some big projects, Greater Paris projects, in particular, sadly, given the sharp increase in the contribution of, companies consolidated of equity because the contribution of Kansai the reports, annual figures, and amounts that were excellent. If you could give us the precise figure of the contribution to net income for the first half, that'd be nice.
Thank Thank you, Nick Krolla. My colleagues will answer me those questions. What I can take a break Okay. That's what it is. Yes, we don't announce we don't communicate on reversal of provisions.
Because there are reversals. I don't know. It's a two way process, but overall EBITDA performance is good. If you take this into account, but it's not significant. So EBITDA margin has risen from 56 to 59 for the quarter.
And the this for this time of year, they're they're significant. We have 50 years ahead of on Japan. Once again, no details there. As Xavier said, we are ahead of our forecast for traffic in Japan, particularly international traffic. Japan has decided to open up to, tourism from China and Korea.
And so the trend is 89% before Japan, which is much greater than the legacy trend. And, certainly more than we had, predicted in our business model, but this has been a trend for about 2, 3 years now. So no specifics, but we're ahead of the business plan for Japan. On CapEx, there was an increase in CapEx of about 160,000,000 for the period. 50 odd for contracting directly related to business 100, obviously, for the period company and and and real estate.
This is the new corporate HQ. The pace of events is picking up on the outgoings, therefore, accordingly. Oh, well, it was stable. Yes. But there's the effect of, of Greater Paris plus Africa, because, there we've had to, we've had a lot of earthworks, CapEx, I talked about the BCR Leopay to Real Estate.
Here we now we're talking about CapEx and the new HQ. In one case, we're a property developer. And the other case, we're an investor. So the investment is, is booked as CapEx. That's one last question.
So we have a final question from Brian Gandy over to you. Yes. Hi. Just a couple of quick ones. The first on the latest motor, I mean, stimulus plan from all two routes.
Was this all the counsel of state in this stimulus plan is not gonna reduce with the increased cost of bitumen because the you negotiated the plan at the time of oil price is lower than the current level. And second question on did did you utilization of your job sites where you are, are things accelerating on that front or not? Thanks. Care followed by Jerome on CapEx. This is in-depth by the public work sector of the Cote Dibda.
The last meeting was held yesterday, and it was it concerned the, Coffee Orton Skota plans, and we don't have feedback yet because the call center informs the government before releasing, and its conclusions. 5 years ago, we would take 1 month to negotiate a plan. Now it's Well, it it looks as if we're almost there. And on the cost of bitumen, for any impact on the overall cost, we're relatively same when it's not significant. Particularly, would you consider that as it is partially paid off by slight tariff increases, which themselves are tagged to the CPI, which itself is influenced by the price of oil.
With 2, it's peanuts. It's your home digitalization. Proceeding quite swiftly. First of all, the bin, which is, now being rolled out on most of our sites operationally We have a digital site in house tool, and which is today used on over 300 websites. It digitalizes basically all the data from the form and form form the supervisory stuff.
And we we're testing much more. Cutting edge technology, which should give us productivity, deltas, but we'll no doubt be able to discuss that at a a meeting, but the, results were rather very promising. Thank you, 1, and all for being with us. Thank you for taking part. And I wish you a very pleasant summer.
And refreshments await you outside.