Earnings Call: H2 2020

Feb 24, 2021

Good evening. Thanks for being here today as a presentation of the Annual Results 2020 of the Efaz Group. To abide by the health rules, we made a choice to have this meeting online. And as you may notice, we're privileged to use all the videos. I hope we'll be able to meet again for the presentation of the half year results next August. As usual, analysts will be able, of course, to ask their questions following the presentations. Please allow me to get back for a few seconds on the video you have just seen the opening of this sequence. As you may have noticed, the future motorway A79 that we're implementing between SASR in the Aliyah department in Digoin is a major project for Efas, 88 kilometers of the National Road 79 up to the motorway standards, mobilizing all the business lines of the group so as to secure these major projects design construction and of course, a new concession of 48 years at the core of a territory enabling us to beef up our portfolio. I have a special thought father family and those close of Marc Legrand, who left us January 13. Mark was the leading figure of our group, member of the EXCOM and manager of the concessions. He led the projects, the most iconic projects of Efage like the MELO Viaduct and the high speed train, Brotamp Peguard, and fully invested himself as he knew how to do it and the project of A79, Mark was something special with tremendous human qualities respected by all. His succession is organized and will be implemented beginning of May. Remember, a year ago. We're closing a magnificent year, 2019. Our order books were full of works, and we had won great successes in concessions. That was without and before this virus was not immediately perceived as a pandemic that would very, totally impact whole of the economy and turn our lives personal and professional topsy-turvy. Thanks to the responsibilities of our teams, the quality of the social dialogue and the nimbleness of our group, we knew how to adapt day after day to the evolution of the situation and remain mobilized as close as possible of the territories so as to make sure as much as possible the operational continuity of our activities in constraining health conditions. We experienced 2 half years totally different. First half year, as we said last August, was strongly impacted by the lockdown with the decrease of activity meeting more or less 2 months in France and 1 month internationally speaking. Then the recovery of activities some governments required the full stop was done progressively in full security for all of our collaborators, for all our employees. As by the end of June, almost the totality of our progresses processes had recovered. Our concessions never stopped operating. According to what we announced during the half year results, we experienced a sensitive recovery of the activity at the second half of the year. The sanitary trends were being aligned in all the countries where we work. The works activities worked almost normally enabling us to be back to activity levels very close to what we knew before the crisis. In France, our clients went on with their major programs of investment, but the businesses experienced a decrease. Electoral years are never easy, but in 2020, elections lasted several months, which froze a lot of decision making. In the other countries, our activities remain also supported by major projects. The struggle against the virus demands vigilance of all moments. We successfully proved it during the second half of the year. We know how to live and how to work in spite of the virus. We also experienced magnificent trade successes, commercial successes. First half, we successfully commended major operations to which we have fought for several years: HS2 in England A3 in Germany not forgetting A79 in France. The second half year enabled us to win magnificent contracts and offer, a order book at the historical level. I'm inviting you to discover one of the some of those contracts pictures in Germany. In France, Electrical Infrastructures on Line 1617 of Grand Paris Express. In Germany PPP, 76 kilometers of motorway A3, France concession of the future motorway a709 in the Aliyah region France renewal of the former headquarters of Peugeot in Paris. France Future Swimming Pool of Bordeaux Merignac Olympic Swimming Pool U. K. Terminal phase of HS2, design, implementation and maintenance of the Pericakle Hospital. North Sea substation for the wind farm, Boulansee Coest, France, building operation maintenance of a School, Wood and Straw France, building of the real estate project Gioia, new headquarters for RTBF in Brussels. That's the public radio and television. Offshore substation for the wind farm in the Bay of Saint Brieux Ocean. France. Spain Electric Sola Farm France new headquarters of Lille and Chateaune Malabry department stores. Foundation of the 2 first phases of the wind farm, Dougal Bank. No way implementation of a motorway of 7 kilometers, efas some areas were especially active in 2020 like renovation, renewable energies, health and of course, the major transport infrastructures. Beside those orders, the year was wealth and activity and in deliveries. In concession 2020 witnessed the materialization of our activities in our news lines, the start of the world's exploitation and operation of our small power plants, enabling us to be a player on the whole chain of value of renewable energies and also the airport activity. Well, less than 2 months after our beginnings, this business had to face the most important zone of turbulence that it ever experienced. We're today currently very impacted. And getting back to the traffic level of 2019 will take several years. On the motorway concessions, we have experienced a brutal decrease of traffic during the lockdown. With the recovery as of the end of the lockdown in May, in the summer, we all almost went back to traffic levels close to 2019. Motorway concessions proved a very high reactivity to the government decision tent. December 2019 was also very important due to the strike of the trains in France. About the other concessions in PPP, the high speed train BPL goes on without any traffic risk. In spite of the closing to public of the stadium Pierre Le Mroix, the teams have secured the handball matches of the Olympic Games in 2024. We acquired also in 2020 2% of the APRR capital. Now we're shareholding up to 52% of APRR. In the works, our activity sustained. Construction was highly impacted by the health crisis. Real estate proved its resilience and due to its expertise made an exemplary year even processes during the COVID are complexifying the situation. However, initiatives around new ways of building strengthened by recent acquisitions will be drivers for the development. The very good situation of our activities in Belgium and the first significant successes of real estate in Poland. Energy organization by axis of market, by directions of market implemented during the past years, helped us to take up the opportunities of the recovery plans line by line. Resilience of our organization enables us to implement its human resource and its capacity where there is a need. Nimbleness is basic. Some businesses are impacted by their exposition to industrial lines, which are very impacted like airspace. Other are submitted to strong demands like pharmaceuticals. European activities were very dynamic, especially in Spain and in Benelux. Motorways. The work margins resisted in our teams went on innovating: Road of the Recycling and Vegetable Binding Agents from are doing from Efa Jorud, a renowned player of the ecological environmental transition, METAL, who enjoyed the very dynamic market of the wind farms in Europe. In 2020, we'll develop this expertise in France. This will enable the teams of Ephage Mittal to consolidate this know how that makes us unique. Civil engineering, the work implemented during the past years to widen our coverage, geographic coverage and our expertise in Germany enables us to grab beautiful opportunities. In France, the recovery of the specialty businesses concentration in region with a high added value the major project like the Lion Touraine and the Grand Paris Express enabled us to remain at exceptional levels of activity. Allow me to insist upon the Grand Paris Express involving all of our lines of business. More than 3,000 employees are mobilized on the various projects. Beyond Civil Engineering with no less than 10 tunnel bores in activities. As we announced Monday, we won 2 stations on construction and the branch Energy Systems, besides its implementation and those stations also secured several technical allocations on high voltage, low voltage and ventilation. Let's see a summary and images of the activities over 2020. 10 Tunel Bores on the Grand Paris Express in France. Rebuilding of an electric line, very high voltage. Warsaw Facades of the Hub Delivery of 3 Buildings high endergic performance for Laresco, some of the largest in the Paris suburb. Renewal of the elevator of the Eiffel Tower, North Bille. Power plant for the nuclear park, the largest solar farm in Europe, Nunez de Balboa Spain and of the works at the BNP Paribas Fortis bank, the lock and the down of Harald Baker in Senegal, the works of the train in the Dakar region, bringing down the Pentagon Tower Plaza in Clermard, a suburb of Paris, renovation of a building that will host the boosters of the Arian Rocket. Transformation of wall containers into buildings, the biofowl solution on the roads. Mango Mobility Services of APRR. Grand Tortue R. H. A. Named in Senegal building. Permanent activity in our airports for the needs link to the COVID-nineteen crisis in the airports: works in operation of micro power plants in France, large headquarters of Danone end of the works for the Reims Hall. Opening of line 14, north of the Paris Underground Metro. 1st Electrical Cars Volvo, restoration of the marine house in Paris, High River Bridge in Canada, efage. During this period, we have to be really aware about our capacity to hire, integrate and support the development of our teams. In 2020, in France, we hired no less than 2,250 young people and welcome 3,900 alternates and 2,000 people who are working part time. We implemented 820,000 hours of training and more than 1,000,000 in 2021. Who have to maintain an awareness of all time in prevention. This is even more so basic that we're exposed to important risks highlight by the health crisis that we are experiencing. Thanks to the mobilization of all our teams in France, as in Europe, internationally also. This year, we reached a frequency a rate of frequency of the labor accidents at 5.82%, below 6%, according to the ambitious target that we had set collectively and the framework of the strategic plan, EFAJ 2020. It's a major satisfaction, but it's never enough, and we should maintain our efforts day after day. 2020, it was also the 30 years of the employee shareholding plan at Efage. We couldn't commemorate the way we'd wished, but in spite of the situation, the underwriting campaign made during the lockdown was a major success. Again, we experienced a progression of the underwriting rate reaching 70, 71% in the group. This is showing a magnificent collective momentum and the great pride of belonging. As you certainly noticed, pandemic impacting us on the short term didn't prevent us from mobilizing ourselves on the challenges of the environmental transition. We published in April our first climate report according to the framework of TCFD, updating our biodiversity plan and launching a second phase of call for solution on the industrial partner platform Sequoia. We are convinced that the challenges climate carbon, often perceived as constraint are an ocean of opportunities for our businesses. We had the emergence of several materials concrete solution that we have to implement because the strategy of the group is to be a player of sterilization of those innovation, making them known internally and externally. The recovery plans that are being implemented in all our countries will be as many opportunities of acceleration of the environmental transition. It's a very good information for our business. We have a double challenge, be exemplary on our own release, but also to be able to offer to our customers innovative solutions to improve their own emission of gases. We committed ourselves to the script of 1.5 degrees that will match a reduction of 40% of our greenhouse effect on the Scope 12 adds until 2030 compared to 2019. We have already presented this kind of graph, putting forward all the top actions implemented by the group on these topics for the past 15 years. On screen, You Have a Focus on 2020. 2020 will have highlighted by the release of the first climate report and the action plan biodiversity, as I said previously. The cooperation of our corporate social responsibility during the refinancing of the banking lines up to €5,100,000,000 since 2019. And we reached the A- rate in the ranking of climate change 2020 of CDP. Challenges of carbon climate are a concrete way to make our signature Live, make our difference known. It's in this mindset and total of the equation with the values of the group that we started our campaign of Communication in Low Carbon, Make the Invisible Visible, so as to each and every one could really pick up the already operational solutions and become an ambassador facing our clients. I suggest to see how to see again the film of the launching of this campaign. Coffee break or a coffee break. Brake to recharge the batteries. You can see a surface paradise of the energies of future eco neighborhoods, roadworks, 100% recycled surface, thanks to Pine Sap Lampost, a smart lighting that adjusts to actual needs, working together for a city with a high quality of life. You can see a daring architecture of 1,000 square meters of crops in the heart of the city, working together for urban farming. You can see old containers are a high energy performance contemporary house, working together for a circular economy. We know there are at least 2 ways of looking at things. Let's see both. For the past 10 years, with our customers, suppliers and partners, we have adopted an eco responsible approach to meet the challenges of climate change and the preservation of diversity. It's by seeing things in such a way that we can work together to create a future enriched by human perspective. Okay, after the start of what we have done, a summary of 2020 in figures, a decrease of the results limited to 10%, thanks to a very good second half of the year in works, following the first half year decrease unprecedented decrease of 19%. Our operating profit is at €1,263,000,000 strong decrease. However, we have to highlight the profitability of the works at the second half twenty twenty identical to the one of 2019. In spite this exceptional crisis, the net result reached €375,000,000 €375,000,000 half of the one of 2019 after our first half year, we generated a loss of €8,000,000 Cash flow of works did well. You can see it on the graph variation of the WCR, generating a cash flow level very close to the one of 2019. We can reduce again the gearing, which is at €9,900,000,000 which was not really foreseeable at mid March. Visibility, our order book is, as I said, at the historical level of €16,200,000,000 an increase of 14.14 percent. For 2021, we foresee a progression of activity and results. However, without being back this year to the levels of 2019. Our work's activity Sourcing and a significant increase bearing on the very good order book and our capacity to work with or in spite of the virus. However, the activity of the concessions will remain very depending on the evolution of the health situation end of the decisions of the governments. We'll suggest at the General Assembly a dividend of €3 per share, I. E, €1.5 for 2020. I'm confident the group is solid, and we have the mean to go on with our development in all our lines of business who are at the heart of the environment transition. Thank you for your attention, and I invite Christian to give you the in detail explanation of our financial elements. Thank you. Good afternoon. To you also, I suggest we return to the major figures mentioned by Benoit. Our revenue is down 10%, As you can see, minus 9.5 percent in contract in mind, 12.7 percent concessions like for like And 12.7 percent without the revenue of airports integrated this year, this demonstrates the persistence of the health crisis on concessions traffic throughout the year, exception of the beginning of the year and the holiday period. In contracting without surprise activities down in each of the divisions, the highlights just been stated is contracting as of H2 returned almost to the level of 2019 with a limited reduction of 1.4%, even revenue stability of contracting in France in H2 at plus 0 1%. The consequence you can see on the right of the screen because remember, in H1, the drop in activity was twice as strong in France than in international. That was corrected because full years, the activity reduction losses are very similar, 0.7% between France and Rest Our activities in Germany were up 10% for three reasons: business continuity during the first lockdown next sustained order intake and the start of the construction work of the A3 Motorway in Spain. Energy business slightly up. That's a limited decrease overall in the country despite decrease in road activity. Belgium, minus 13% in the country heavily impacted by the health crisis and the halting of many of its job sites in March. On the recurring operating income, the margin is down 7.7%, 38 0.4% in Concessions, 2% in Contracting. That's minus 1.6%. In contracting, this decrease of 1.7% is 2.1% and 0.5% international, Given the shock that we mentioned in the first half, what's also interesting is to focus on the second half I'll comment separately this year. We don't normally do that. Shown here is once the contracting activity returned to a level close to 2019. Margins also become similar to what they were back in 2019. Slightly up in Infrastructure and Energy Systems Business Lines and down in construction where building suffered more. All in all, you see a contracting margin in H2, to 5.4 percent identical to 2019 proves that our company's integrated the health constraints demonstrating agility, capacity to adapt and cost discipline. The result of concessions remains heavily impacted by traffic drop even if concessions adapted their costs and their investment budget. The outlook over 5 years, it's a usual document that is of no real interest. This year, you'll find this shape in the curve of all the following slides. Turning now to the results by division. In construction, The activity drop is stronger than elsewhere, notably during the 1st lockdown, longer periods to obtain planning permission in France. That didn't help us during the year. Real estate held up well with a drop of reservations, 16%, 25%, if we just take France, boosted by renewed interest from institutional investors for block sales and also the significant first successes achieved in Poland. Real Estate generated €58,000,000 in operating profit, lower than the €77,000,000 achieved in 'nineteen, but for a margin of good quality at 6.2%. So the takeaway here is building slightly, loss making affected by distancing measures, more costly and more unrest to put in place and of course, the lumps on nature of most of our contracts that made it more difficult to obtain compensation. Now we're here close to Angel to illustrate what I'm saying by initiative in low carbon construction. We're building here 4 R+4 collective housing units Bayer B3 Eco design that you've seen. It's a modular construction company using seed containers across all types of housing, but also in the service sector. It's a virtuous constructive mode because it's of low carbon emissions in addition to recycling containers. It's off-site, and the finished product is very energy efficient in the infrastructure division. The drop in activity is lower, thanks to the major sites of the Greater Paris, euros730,000,000 in revenues against €700,000,000 in 'nineteen, as we saw in the film. Wind power that counts for the growth of metal in France and as performance of international driven by the market for road and rail infrastructure in Germany. Lastly, road in France is down by 13% in a market that's more depressed than that. And in H1, We increased to 100% our holding in the Migneur quarries, hence the stability in quarry tonnage levels at the foot of the screen as to the results of the division they picked up in H2 across businesses with a margin slightly higher than that of 2019 in spite of bidding costs, very significant in that activity. I'd like to return to the A79 to comment this original initiative. We're using a belt conveyor over 1.7 kilometers to carrying materials from the quarry to the job site. Nothing revolutionary, but it's the first time that it's used in a major works Earthworks projects avoiding our 160,000 rail trips by trucks, that's colossal, And the corresponding CO2 discharge and traffic disruption. Energy Systems Business Line Activity the acquisition of 2 specialized companies. This year, we also delivered major transactions, cited on the screen, And we also renewed the order book in major projects, some cited by Benoit and Greater Paris mentioned at the foot of the screen that augurs well at a time when certain industrial clients will no doubt slow their order intake. I mentioned SANOV there for infrastructure, energy systems also active. This is the E STACK. There's 1 perm wind power unit. It converts high voltage power and sends it back to the substation, 3 modules assembled at the San Jose airport with a gantry. In Concessions, APRR traffic was mentioned. Its strong variability over the year. The good management of operating costs and quick responsive teams preserve the EBITDA margin, a very laudable level, 71.4 percent down but very limited given the traffic drop experienced. This allows APRR to see its credit note A- confirmed by S and P stable outlook and its short term credit note upgraded to F1 by Fitch, all that without neglecting customer service on screen, a few major initiatives Significant nor investment in the company's low carbon strategy. I'll return to one of those in Grenoble. This is the ARIA network we introduced in October 2020, this dynamic carpooling lane over 8 ks. It's only activated in the event of traffic congestion by the diamond shaped luminous panel reserved for vehicles with 2 passengers or those with 0 emission, either electric or hydrogen. Next, Across all concessions we've been presenting since June 30, this slide on the left with motorways. We mentioned APRR, other motorways closer to that of APRR Then there's the airport activity with the change versus 2019 that we indicate just from memory because we didn't have those assets numbers in 2019. 3rd block, PPP, including the high speed line BPL without traffic risk. The operating margin is down 11.3 percent owing to the drop in the APRR EBITDA margin and then the integration of airports, the losses there, €45,000,000 in that, €45,000,000 of losses, €33,000,000 correspond to the amortization of goodwill. The difference is the operating loss of the asset. Illustration, our Crowe power plants acquired in 2019, full ownership, works over 3 years for ecological compliance and to boost There are 3 tranches essentially in the summer. 2 of the sites on screen find autumn views. For our income statement, I extensively mentioned as did and were the 2 main metrics. The other income and expenses down £17,000,000 as June 30. There are 2 very significant amounts, say, charge of €57,000,000 for impairment asset impairment of the Pierre Morois stadium given the crisis and income cash balance, €61,000,000 as part of the buyback of the 2% of the APRR Capital cost. The net debt is down once again €12,000,000 with a more significant drop in the debt of APRR, but additional financial expenses at IFAJA SA to structure additional liquidity, the bond issue that we made. In the other income and financial expenses, we had the GetLink dividend in 20 Jean, a few impairments of securities non significant tax expense down. Net income comes in at €375,000,000 which brings us to earnings per share of €3.83 Now the debt, I'll comment here through this bridge development across the year. The EBITDA decline is around €500,000,000 At the foot of the page, you have the 19 figures, offset by the change in WCR, which generates cash for some €321,000,000 The drop in tax paid for operating cash, the first gray line that's identical to €90, €2,200,000,000 give or take €20,000,000 Each contracting division contributed to the good holding of WCR for a total of €364,000,000 Turning to investments. OpEx contracting slightly higher than 2019. That's the tunnel borrowers for Greater Paris introduced This year, they'd have been down without that. Concessions, CapEx, €400,000,000 for APRR, €150,000,000 €150,000,000 for building the new A79 motorway, €100,000,000 on other assets and PPP and construction for a total that I round off at €650,000,000 So this leads us to a net investment flow of €1,100,000,000 above by €250,000,000 through 2019, which is the construction of the new Autoroute A79 development, investment and renewal, even if it's positioned at this point in the bridge important to bear in mind. Free cash flow, €1,100,000,000 close, very close to its 2019 level. The variance only made up, let me insist, of the investment differential that I just explained, The buyback of 2% of APRR this year. Next, we have under this item acquisitions small, 5 companies in Energy Systems. Lastly, capital transactions made up of the dividend paid by APRR to its minority shareholder and movements on IFRS stock increased by its treasury stock by 1% over the year. So all in all, net debt down €330,000,000 to €9,900,000,000 in spite of the turbulence experienced in 2020. Next week detailed as always this debt, but it's split between the non recourse portion of concessions and with recourse holding and contracting. We really attach importance to this split, which represented within our business model and our financial capacity and our leeway. Lower part in black, you have the stability of the concessions debt upper part. Net cash of €1,100,000,000 benefited of the change in contract In WCR, so financed our growth investments, some €300,000,000 also carrying the financing of A79 at Equity by the group holding company. Group liquidity is detailed on Page 38. It strengthened significantly in 2020 once again. Let me end with our order book already discussed by Benoit overall. You have the detail here by division in construction, the order book slightly down, which highlights lower order intake in a highly competitive building market. In France, We see on the graph clearly the impact of major projects treated in 2020 for infrastructure already had a significant order book for Greater Paris and of Wind Power. Energy, plus 16%, mainly for major projects To the lesser extent, same situation as for infrastructure. I believe I've detailed our major metrics. We can now move to Q and A. With Benoit. Let's start with questions in French before moving to questions in English. Thank you. The. Our first question comes from JPMorgan. Yes. Hi. Good evening, Benoit, Christian. I hope you can hear me clearly. Thanks for taking my question. Well done for the results. My first question will be on WCR Fine performance. We saw that VINCI also, They indicated, however, that there were some early anticipated payments for certain public clients in 2020 and that boosted the cash flow performance. Is it also the case for you? And what must we factor in for 2021 as you see. And my second question on the construction margin, they're down in H2. Can we hope that they'll level off in 'twenty one versus 'nineteen? Or should we consider a bit more pressure on that. And where does that come from? My third question on the outlook for negotiating new contracts, stimulus package on APRR Autoroutes. VINCI seemed to be saying was no longer on the cards and the extension. What's your take on that? Thanks. Christian maybe on WCR. Yes. So from time to time, we have public clients the pay. I mean, we will that happen? I mean, it went well towards the end of the year, but not significantly more than usual. I just Just we return to a slide, the small multiyear graphs of changes in WCR discussed by Benoit, what we see for WCR, total as a period, you do this somewhere in a variation of 0, pretty much for revenue of 80 €1,000,000,000 We've always said on the long term trend, the WCR change if our results are clearly assessed to 0 even if from time to time we can accelerate payments, have payments advantage, but midterm we can say it's 0. Second point, look at the graph just above and you see that we're consuming WCR in growth years. And conversely, we gain WCR, that is we improve our treasury in years of decrease. So it's so for the industry as a crisis dampener when we saw a sharp drop in revenue. We haven't seen it on this scale, but it's quite pleasing to have that incoming cash flow this year. And so logically, I think that if we regain volume in contracting will consume a bit of WCR would be logical given past history, but we RWCR is under control. I think we should rather anticipate a stable WCR with a slight cash out for W For 'twenty one, it would be consistent with what we see on the chart, even if it's somewhat difficult to theorize WCR. What weighed previous year's weight of real estate. We had strong real estate growth levels in the past year 3 years, 'sixteen, 'seventeen through 'nineteen real estate consumer was a bit more WCR, the other stability, slight cash out, but not a total unusual behavior by our clients. Maybe Olivier on the construction margins. Yes, hi. What we can say for the construction margin, the market remains competitive as was said, notably in France. The second issue is that generally results depend on order intake and volume. Generally, we're on markets that are pretty flat or downward or slightly down or up. Here, we are in pretty marked uncertainty in the trend of our order intake. So I'd say really the challenge is considerable in 2022 than it is in 2021. You see that our order book was slightly down. And if the drop were to heighten, it wouldn't contribute to stabilizing profitability earning really depend on our order intake that we're really keeping a close watch on month by month. Thank you, Olivier. Philippe, maybe some input on the stimulus package or possibility thereof. Good evening, yes. At the start of 2020, the Transport Ministry had asked us to prepare proposals, investment proposals for to accelerate the ecological transition, a bit more biodiversity on our motorways and this massive stimulus package offset by an extension in concessions was put on hold by the government for the time being given the political priorities of the day. And today, we're moving towards a plan based contract, more modest in terms of volume, clear towards the ecological transition, vote it would appear to be financed by more moderate tariff increases. Our proposals to reduce CO2 emissions on motorways are on the table, have been for several months. Ready for a massive stimulus plan or for a more modest contract plan, we're available with the government to move forward on those fronts. Thank you, Philippe. Next question from Jean Christophe Lefebvre. Yes, good evening. Can you hear me? Yes, indeed. Francois Christian. Good evening. Jean Francois, if he is present. It's about the motorway 79. We can barely hear the speaker. Out of the €548,000,000 of the project in 2021, 2022, will this be refinanced with partners I think it's APR, the Test to Managers project. You didn't elaborate on this project yet. Clauses of the sharing of the revenues. 2nd question. Kursley on airport of Toulouse. We don't see the monthly traffic. Can we have the base traffic on an annual base and the lost can we have the EBITDA? It would be nice. And third and last question about Efraj Energy and Systems. Can we have the magnitude of the revenues in Spain, in Belgium and in Germany. The German figures didn't go above €150,000,000 was the figure improved this year. Thank you. Christian, ex Cap. I'll give you approximate figures, €300,000,000 in 2021, above the €150,000,000 and €100,000,000 residual to get to this figure that you alluded to next year in 2022. It's a very short period of time. Today, we are on a track that we have from the beginning. It's a project that is totally supported by Efaz S. A. And it's only the operation that is picked up by APRR. And for the time being, we are in the classic framework to be financed by a factoring the construction. And the question will be asked when the refinements will come, when the motorway 79 will be operated. We'll see if it changes regarding the shareholder proportion between APRR and Nefarge. Okay. On the tariffs pricing. What do you mean? About the pricing? All the pricing about our offer are elements that cannot be disclosed at this stage because it's going to be only at the end when the motorway will be operated in consultation with the government that prices will be announced. What is the magnitude of the revenues during the 1st year? Projected? No, we cannot do that. Airport of Toulouse. Yes, on the airport and other concessions. What I can tell you is the EBITDA is positive, of course. We have a loss of EUR 11,000,000 before amortization and the margin of EBITDA, which is positive. On the Efaz Energy System. We are on growth in Germany, but we didn't have an external growth, a significant one in the past years. We made only small external growth. We had no opportunities of important growth. Currently, in Germany, we have several subsidiaries who are on businesses which are halted, and there is no bridgehead that would have an important German activity. Those are areas where we think we'll strengthen ourselves, but I alluded to it in the past. I'd say that our Spanish position, conversely, so it's very important the most important in the market for the foreign operators. Some figures per country. In Germany, €100,000,000 activity, the rest by the infrastructure, metal and civil engineering. In Belgium, we have 115,000,000 in energy, the rest in construction. We didn't do as Benoit external growth, major external growth. We are on the figures that you know. However, in Spain, we had a small external growth and a lot of organic growth. We changed the scale, and we're on the figure between €500,000,000 €600,000,000 something very important, energy. We took our share on the market of renewable energies. We're very active there. I didn't hear properly. Is it a loss of EBITDA? No, the EBITDA is positive in Toulouse in the airport, and the operational result is negative by €11,000,000 to the tune of €11,000,000 Thank you. The €45,000,000 of loss for the airports, because I thought it was an important figure, €33,000,000 of overvalue €11,000,000 of loss €1,000,000 of the Lille Airport, 1, €1,000,000 1, 1 unit. Sound is no good. Next question Comes from Barclays. Yes. Hi, good evening. Thanks for taking my question. I have 3 quick ones. In fact, the first point of detail about CapEx on A79, what could you do as a repeat year on the phasing of investments at APRR and the rest of the concessions portfolio. My second question concerns the outlook. You mentioned strong rebound, no surprise of your construction activity in 2021 versus the basis of 2020. Could you give us an idea where you plan to get to as compared to 2019? Is it a total return to the level of 2 years ago on what you see on your order book? You think that you'll be slightly below that and qualitatively by activity? And final point, could you give us an order of the margins in the various contracting business, very good margin in Infrastructure and Energy system in H2 2020. Can we extrapolate that into 2021? Maybe Christian on the phasing on the CapEx. Philippe, do you want to speak to that? And then I'll come in on the remaining CapEx. Yes, for the phasing APRRR year, we invested €400,000,000 in 2020. For 'twenty one, we anticipate €450,000,000 It's a strong activity year for the 2 major projects, A80 in Grenoble and A75 at Clermont Ferrand, there should be a decrease as of 'twenty two. We're anticipating today some €350,000,000 Expect €30,000,000 to €50,000,000 over the number on the only operations under the Arenard Reims PPP police station in Paris still PPP, the nautical stadium at Merignac that we saw in the upgrade of the dams renewal CapEx for airports and the marina of Wilneuve Lube count between 120, 150, 120 on that scope €150,000,000 for new business in 2021, once again, €100,000,000 for 2022, and then it will depend on successes achieved on new deals. On the outlook In contracting, as I said, the order book is at an all time high. But what's crucially important to be borne in mind is It's hugely driven by the major projects. Impressive figures, but a spread over time far longer. It's good news because it stabilizes a lot, but it's really, hides the forest here on the kind of business on a day to day basis, short order books. It's a lot softer. There were issues linked to elections that I mentioned earlier, there are some industrial sectors where we were exposed on service work small civil engineering or energy systems division. It's repositioning, but we don't have great visibility on the share of activity that naturally we have to secure during the course of the year and that we execute during the year. So that's why the rise versus 'twenty is obvious, is evident because we're assuming that we'll continue to be allowed to work as we did during the 2nd lockdown, as we did in a number of countries, including during the first half. However, the uncertainty on certain business franchise volumes as such that could be lower compared to activity levels reached in 2019. On the portion that you call margin extrapolation, Both somewhat linked today, I think, and this is demonstrated in H2 and the H2 margins that we announced for all contracting similar to 'nineteen. There's no return to better fortunes on big deals. I mean, it's really kind of half year execution in spite of constraints and number of difficulty. We're able to factor that into our costs, notably for short term order intake. There's no reason to have impacts and to produce less well. But in our business, you have an obvious volume effect that, of course, leads to SG and A coverage that's not as good. And if Molybdenum were to reach what we saw in 'nineteen, I see no reason for margins not to continue to grow. But if volumes were to land at a weaker level, there would be a slight margin erosion. Question. Thank you. Next question, Pierre Hosset, HSBC. Good evening. Three questions. First, about Grand Paris. Can you have an idea of the market share of Efage on the share of the works. I think there are 3 groups in design and building, what other trade strategy or business strategy will you have? Second question is about the Toulouse airport decrease of traffic. Is there any solution to be expected about changes in the concessions? Third question, privatization of the local airports. Is it all on standby? Privatization of the regional airports in France? Yes, nothing for the time being. Would there be something? It would be excessively complicated to structure a business plan in the short term, the years to come, I. E, all the movements noticed could really justify a certain amount of concentration of the very tiny airports who will not live over the crisis. Those are not significant elements. The pricing. Regarding the lack of visibility, we renewed the prices of 2020 that were those of 2019 and those of 2018. Due to the lack of visibility, we have no capacity to establish a regulation contract, so we'll remain in the situation day after day, okay? About the Grand Paris Express. Grand Paris impacts all of the Works business lines. Your question was more on civil engineering, I suppose. But on the other lines today, all of the stations, certain amount of groups. We made a choice to integrate between IFRS Construction and IFRS System. We had 2 successes, 2 first successes. We won 2 stations and we operate on the same way for the other stations which are put at call for tender. It's between €50,000,000 and €100,000,000 according to which station certain amount will be put for auction. And at the scale of the energy system, those are significant contracts that may go up to €50,000,000 to €100,000,000 of €1,000,000 the Society of the Grand Paris, to all the groups to be very active in mobilizing qualified teams to be able to catch up weather delays or concentrate the resources in order to be starting several pits at the same time, which encouraged the groupings, and we have a stable group, high voltage, low voltage and another group regarding ventilation. And for the time being, we have won a certain amount of things. We are on the Line 15 and the Line 1617. Those are the studies being led and the first works will be able to start soon. And the last element is for the major projects of civil engineering. I think that globally speaking, we remain on market shares which are classical. The only element that was totally out of unusual. We made a choice strategic choice to go on our own on the tremendous project of the 16, while most of the time it was a grouping. And well, it had an effect, a very special effect. And in the 1st year, the market share of the group due to the Line 16 was a special case. And I'll leave the floor to Guillaume for the menu of years to come so to speak, which is still very important. Hello indeed the menu is still very important for years to come. We're positioned on 2 call for tenders by the company of the Grand Paris in 2020. In spite of all the lockdown effects and the health crisis, the most important one. We are preparing our offer as the Southwest from the Pont de Sevres to the Defense and the second one in parallel is the southeast closing the Line 15 to the east. The 2 lots haven't started yet. 2 of the lots haven't started yet. On those call for tenders, Efij is positioning itself. We took the strategic decision to renew the same recipes that work on the Line 16. We organize the investigation in solidarity with partners who are subcontracting. Guillaume? Thank you, Guillaume. Is it clear enough, Pierre? Yes. Thank you. Thank you. Our next question comes from Brian Garnier. Yes. Hi, thanks for taking my question. First, Following up on your comments about the 2 tenders by the Greater Paris Authority, could you give us an idea of the sums involved? What's the size of the project that's expected? That's the first question. 2nd, on a lighter note, you mentioned at the outset that the accident rate was down again last year. Do you see similar situation for temporary personnel. What do you plan to do to reduce the difference? When we look the accident rate. There's quite a marked difference if we just look at AFASH employees and also temporary staff. Is it training that accounts for the difference? Maybe you could there are some lessons Learnt to reduce the delta between the 2. 3rd more general question, you mentioned business in Urban Lighting. Today, you're seeing a lot of attention for the smart city or as the pandemic slowed that those initiatives. Thanks. Maybe, Guillaume, On the tenders of the Greater Paris, well, we're in the ARFA phase, and we haven't done all the costing. I can't give you the amount of our offer, but these are segments of the order of €2,000,000,000 €2,000,000,000 for each of the 2 contracts. On accident industrial accident frequency rate, you're absolutely right. What's So very important is fundamentally to work on prevention so that it becomes a full management enabler and that it's included throughout the chain. The first key driver is to be deployed internally with all our teams because The more we can set the example, well, as a knock on effect, it can improve the situation for our temporary staff. The difficulty for temporary staff is the turnover. We're working increasingly with temporary staff companies to help them to train them rather than and that they can indeed benefit from training assisted by companies Before they are received, we also use make increasing use of so called systems that allow us to improve process and at management, we track rates for our own personnel and the temps and of course the subcontractors. It's the whole chain. But you need the car that's in front that pulls everything along, headcount complement and the company to achieve excellence on that front. I can assure you When there's a sense of pride that's established, we had very long spells at 0 accident. That can be a problem that occurs, But we immediately analyze it, and the teams get back to the original process and that will improve the situation for our temporary staff and subcontractors because it's very important issue for them too. Turning to the Smart City. Well, I don't think There's a real change here. I think that we're moving clearly to something that is far more comprehensive. When we address a district Overall, we see that clearly with the urban development phase of Efage to proposed inclusive solutions with technology to share usage, to implement more attractive and finer solutions in terms of impact, disruption and carbon footprint, and that's moving forward with the help of technology, but not only. And that really is what is driving the process forward, perhaps with another name, but it's another vision of what we call the smart city or an aspect of smart that involves more topics than something that is merely technological as a few years ago. And I can assure you that Efals urban development or the cutting edge to implement those changes. And there's keen interest from our clients and our people to implement term standing standard setting district. The company's societal responsibility is all about generating eco districts and to promote better living together and other things that will have a beneficial impact on society long term. Thank you. We have no more questions in French, and we'll move to the English questions, questions in English. The first question comes from the line of Luiz Pietro. Please go ahead. Good evening, gentlemen. Luiz Pietro from Kepler. I had just one question. The rest have been answered. So regarding the question, I'd like to know what the capital allocation strategy should be over the longer term, over the medium long term. We have seen in recent times airport capital allocation, Abrr stake at Link. I'd like to know what we should expect along these same lines over the next years. Given the current situation today, we're still obviously more constrained and looking at an improvement over coming years? As I said in the past, the basic strategy will not change. Let me remind you, we believe in 2 main balances: 1 balance between know to be very present in our territories, but also to know how to take projects much more complex, large infrastructures being a global player. And the Chokchas being a global player. And the second balance of the group is between those works and those concessions. And today, we're convinced that we have the means and the capacity to go on develop ourselves on those two lines in time, keep this balance between works on the one hand and concessions on the other and to allocate the capital so as to be able to develop our 2 businesses. It goes through the works being active on our capacity to be able to go on growing and knit of the territory in a more important way to add a certain amount of specialties with a specific direction with the Efraj Energy Systems and the works to be able to be more performing noticeably in the international development, I do believe that we should better be in less countries and stronger in those countries. In some, there are businesses which are not present that we can implement. And if not, for those who are present, is to be able to become, little by little, a more global player in those countries. We discussed it earlier on the Energy Systems line of business, strengthening in Germany, Belgium, we did it in Holland recently and the Netherlands. Those elements have a lot of interest for us, and we work on that because at the end, in the given country, if we're able to have the whole countries that will be able to generate the power and capacity of the development of the group in those countries, less countries but strong in those countries with all our businesses. When we talk about the development of our concessions, the first risk of the concession holder is the political one. And a good way to not to cancel it because it's impossible, a political risk, but to circumvent it or to restrain it is to be a real player in the works. We have our social responsibility at our heart, and we have a territorial strategy. We're ready to open up this kind of things, but we focus on places where we are a player works recognized like the French region, but also the case of Belgium, Germany, Netherlands, Switzerland, Spain. Those are playgrounds where we can carry on growing and develop our concessions. In the recent elements we performed in the past years. Our presence and the capital of Getlink is of interest to us in the long run, and we'll be ready to strengthen ourselves if need be I mean, if there's an opportunity and meeting what we think is good for the company and its development. And if not on the other topics, we are open to certain amount of elements linked to energy either on hydroelectricity or solar, those are businesses where we can totally integrate. And obviously, at the in the long run, when we allocate capital, if you can be sure if it's a greenfield or a brownfield, we need the works competences or skills. The more works you have, the less the competition is difficult. That's why it's of interest to us. This is why the example we showed you with the Motorway 79 is the perfect illustration of the group strategy in this development because we can secure this new concession in the long run while doing a major project with our works teams and the operation in the long run. If I should summarize, develop both sides, works and concessions, but in the territorial configuration, that remains consistent so as to remain eventually able to carry on with our values and attract talents to develop the group. And a follow-up, if I may, on that respect. When you mentioned energy, hydroelectricity and solar, you're referring to energy generation, right? Sorry? And when you mentioned in the last part of your contribution, You've mentioned hydroelectricity and solar in the energy business. You're referring to energy developing Energy generation assets in those fields, right? And operation? We see Cessaro. Yes, yes, absolutely. If I take hydro power plants, fundamentally, It's of interest because we're learning on a sector in order to be able to signed long term contracts for buying power under good conditions. You have to invest some CapEx and it's through our contracting team. Operation maintenance is done by our teams over the long term and that allows us on us at our scale to understanding, of course, would be fully open whether to be hydropower concession deals more consequential, but today they don't exist in the territories where we're established. But there are A number of opportunities that are looming. It's of interest because it's greenfield And rather brownfield, I should say, and we're capable of leveraging all the skills of the group and not just buyback and existing asset where there would be nothing special to do. Christian? Any other question from the English side? And the next question comes from the line of Tobias Werner from Stifel Europe. Please go ahead. Yes, good evening. Thanks for taking the questions. 2 if I may. And apologies if they've been asked already. Number 1, can you give us an update where your traffic on the APRR year to date compared to 2020 2019. And also, it would be quite helpful what sort of assumptions you take with a view to 2021 in terms of traffic versus 2019. And secondly, you're paying a dividend of €3, Of which $150,000,000 relates to 2020. So you're basically saying the additional $150,000,000 is a special dividend. Is that the right way to see it? Yes. Where we see it? Christian, you got it perfectly. It's €1,500,000,000 for the 98,000,000 of shares that will be taken on the net result that we have for 2020 of €375,000,000 an extra dividend of €1,500,000,000 that will be paid at the same date in at the same time in once, I mean, Philippe, some news about the traffic, some information about the traffic. Indeed, our traffic remains under the pressure of the health crisis and the government measures to prevent the circulation of the virus, the closing of the ski stations is really having a very important impact on our concession network. We are impacted more strongly than other networks in Europe. In terms of figures, accumulated traffic 2021 since the beginning of the year, year for year, is minus 25%. I will not give you a perspective for 2021. We have no guidance on the traffic for the year 2021. It's even more so difficult that we are in a great uncertainty about what's going to come next. I'm not able to give you any guidance about the traffic for 2021. Thank you, Philippe. Thank you so much. And the next question comes from the line of Gregor Kuklisky From UBS. Please go ahead. Hi, good evening. Thank you for squeezing my question in. Two or three questions. Maybe one is to the clarification from earlier. You mentioned the airport breakdown in loss. Can you just explain, Understood, dollars 11,000,000 loss for Toulouse, dollars 1,000,000 for Lille. What's the balance to get to $45,000,000 is an amortization charge for the Price paid on to lose just a clarification on that. Second question is on capital allocation. So I understand your broad Framework. But can you give us an idea when you think about returns, what you're looking for? So for instance, when you buy shares in GetLink, What is it that you're looking for as an example in terms of rate of return? And linked to that, do you Is our share buyback something that you consider actively when you benchmark acquisitions? In other words, do you look at your own stock To see whether it's more attractive than acquiring something else? Thank you. On your first question, I confirm your understanding the operational loss of the 2 airports that you mentioned, €11,000,000 The variance is the amortization by ephage of the goodwill of the price paid that we decided to amortize linearly over the period between the acquisition date and the end of concession to the tune of €33,000,000 per year. On the share buybacks, our purposes of capital allocation is to develop the group, the focus areas mentioned by Benoit. Then we regularly buy back shares We have an offer, as you understood, employee offering every year. And so we pledge to cancel the new shares that we create for employees. We buy some back for the councilor. We're opportunistic. And depending on the share price drop, we intervene more or less strongly, but long term to maintain the shares of the current number €98,000,000 or to dilute existing shareholders through capital increases for employees, but we're not going to reduce by benchmarking the value creation of a capital reduction versus growth. The idea is to invest our cash flow in the group's growth. Thank you so much. And the next question comes from the line of Maxine Wachter Bank of America. Please go ahead. Yes. Thank you and good afternoon. My question is on your dividend policy. Can you clarify what sort of payout ratio can we expect in the next 2 years. I think if we look at this dividend for 2020, the 1.5%, that would be around 40% or 39%. So is that the floor? Is that the recurrent payout ratio for the coming years as well? Good calculation, good mathematics. The basic element is that you're talking about policy of dividend. We have no policy of dividend. However, the 39% or 40% you've seen since a certain amount of years, we have shown that we know how to make move our dividend given the evolution of the results, And there's no reason to change. Sure, we are facing an exceptional year, but when we have taken the decision to suggest this dividend of €3, €1,500,000 for year 2020. During the pandemic, when we took the decision, all the uncertainties and all the government pressure not to hand out any dividend, we explained that when we'll have to side about the suggestion of a dividend to the general assembly of 2021, we would take into account the fact that we canceled this dividend, and this is why we decided to add €1,500,000 making that we were paying out €3, I mean, suggesting €3,000,000 to the General Assembly of the Year. Thanks. We have another question in French from Morgan Stanley. Your line is open, sir. So dividend once again And to simplify the €3 today, are they a floor or not? That's my first question. Then not many acquisitions, not many divestments, rotation in construction. I mean, are the things that are beginning to be sellables excluding the lockup? And Thirdly, you shared your caution, your prudence on construction. I mean, if we take into account the potential stimulus package in France, Germany, at European level, be it in road or energy, can the more things I mean that things that are going to improve energy that delivered a good H2 where we were used to a margin progression of 20 bps Per year for 6, 7 years now. Thanks. Maybe, Christian, on the first two points. Well, €3 dividend, no, it's not a floor. It's £150,000,000 plus £150,000,000 Maybe you can come in here. The policy, we don't have a dividend policy. It's not a floor. We're not pledging today not to reduce the dividend versus those €3 On the PPPs, no change of policy as regards the building PPPs. We always said that what was going to be divested was our building PPPs. We've done that several times penitentiary education. Let me remind you that for an attractive gift, it's not a matter of selling a PPP of €30,000,000 in debt and €3,000,000 to €5,000,000 in equity. We have to aggregate a number of things to make the package attractive. We'll sell the oldest PPPs that will arrive to debt ranges where they're sellable. I don't know if it'll be the end of 2021, early 2020 But we can expect 2021, 2022. If the markets there, we'll sell the oldest PPP building projects in our portfolio. As always, we Keep the maintenance long term maintenance portion of those assets and we free up the correspond free ourselves of the corresponding debt, but you know that. On construction margin, obviously, we'll remain attentive as regards a number of issues that are linked to the stimulus plan or the recovery plan. One of the first points is, of course, the speed at which they'll be able to come into execution and depending on the countries that may have considerable impact. We can say, for example, today, our infrastructure activities in Germany already benefiting from the recovery that picked up pre crisis on the renovation of a lot of structure that accelerated with the crisis. And we're growing significantly in Germany. Thanks to that. In Spain, well, necessarily, I mean, the country is excessively affected and is set in great by this European stimulus plan to revive some infrastructure effect our road business. So yes, we're attentive. I just think that 2021 is slightly. It's a bit tight aside from certain countries that have already started, but It's true that midterm, there's no reason not to have this flow that will come and help and then there are a number of projects already existing and we reroute them towards finance from a recovery plan that can accelerate their execution and that's very positive for the sector. Then on the portion of your question specific to Energy Systems division. I haven't changed my mind. There are better than us, I mean, for several years, we've always said that we That we needed to reach on a recurring basis 5% profit margin on those businesses given our geographic mix and above all our size, these are places where volume is accretive on the profitability front. I think that had there not been the COVID pandemic, it's clear that we would have delivered at least an additional 20 basis points. We're on track. H2, we managed to deliver a margin higher by 20 bps in 2019, all other things being equal, We're nearing 5 and we haven't changed our view. We plan to reach them. As soon as there's a bit more volume, it's easier. There you have it. It's more the uncertainty of the volume. The short term can be impactful, but the underlying profitability of deals today, the process in place is that we can be Quite profitable in those businesses. Okay. If I may, one last one about GetLink. Things seem to be getting some visibility around the other side of the arps. To feel a beginning of a start of emergency to look into this file well, I think our will and our capacity have nothing to do with the Alps and the other side of the Alps mountain. There's no issue. We already debated about that. I think that Atlanta, outside of Italy is more a financial investor than an industrialist. And as you know, we had a partnership of long term with financial investors two deals together with the ATHEA RN area, it went well. So there are no major issues regarding that point. Our only issue regarding Gatling is simple. What is the right level of valuation for the group? This is is this the right level to be able to strengthen ourselves. We have time. It's a concession that is ending in 20 IT6. Thank you. No emergency, if this is what you meant. Thank you. One last question from Jean Christophe Lefebvre, CIC. Mr. Lefebvre, your line is open. No further questions. Well, thank you all, and we all hope to See you again physically at the half yearly results if the health crisis allows us.