Eiffage SA (FGR) Earnings Call Transcript & Summary

[Interpreted] Good evening. Thanks for being here today at the presentation of the annual results 2020 of the Eiffage 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 of 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 at the opening of this sequence. As you may have noticed, the future motorway A79 that we're implementing between Sazeret in the Allier Department and Digoin is a major project for Eiffage, 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 and 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 for the family and the close of Marc Legrand, who left us January 13. Marc was the leading figure of our group member of the ex com and manager of the concessions. He led the projects, the most iconic projects of Eiffage, like the Millau Viaduct and the high-speed train Bretagne-Pays de la Loire and fully invested himself as we knew how to do it in the project of A79. Marc 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 were closing a magnificent year 2019. Our order books were full with 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 toughly impact all 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 all the territories so as to make sure, as much as possible, the operational continuation 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 our 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 have recovered. Our concessions never stopped operating. According to what we announced during the half year results, we experienced a sensitive recovery of the activity of the second half of the year. The sedentary constraints were being aligned in all of 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 the 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 remained also supported by major projects. The struggle against the virus, demands a 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 commanded 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 an order book at a historical level. I'm inviting you to discover one of the -- some of these contracts in pictures. In Germany, in France, electrical infrastructure of line 16 and 17 of Grand Paris Express; in Germany, PPP, 76 kilometers of Motorway A3; France, concession of the future motorway A79 in the Allier region; France renewal of the former headquarters of Peugeot in Paris; France, future swimming pool of Bordeaux-Mérignac, Olympic swimming pool; U.K., terminal phase of HS2; design, implementation, maintenance of the Paris-Saclay Hospital; North Sea, substation for the wind farm, Hollandse Kust; France, building, operation, maintenance of a school, wood and straw; France building of the real estate project, Joya; new headquarters for RTBF in Brussels, that's the public radio and television; offshore substation for the wind farm in the Bay of Saint-Brieuc ocean; Major port of Marina Baie des Anges in Villeneuve-Loubet on the Mediterranean France; Spain, electric solar farm; France, new headquarters of Lidl in Châtenay-Malabry, department stores; foundation of the 2 first phases of the wind farm Dogger Bank; Norway, implementation of a motorway of 7 kilometers. Eiffage, 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 wealthy in activity and in deliveries. In concession, 2020 witnessed the materialization of our activities in our new lines. The start of the works and expectation 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 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 lockdown in May. In the summer, we almost went back to traffic levels close to 2019. Motorway concessions proved a very high reactivity to the government decision in the recovery of the traffic. Over the year, traffic of APRR is decreasing by 21%. December 2019 was also very important to the strike on the trains in France. About the other concessions of PPP, the high-speed train BPL goes on without any traffic risk. In spite of the closing to public of the stadium Pierre-Mauroy, 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 is sustained. Construction was highly impacted by the health crisis. Real estate proved its resilience and due to its expertise made an exemplary year even if the administrative 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 access of market by direction of markets implemented during the past years, helped us to take up the opportunities of the recovery plans, line by line, resilience of organization enabling us to implement human resource and capacity where there is a need. Nimbleness is basic. Some businesses are impacted by their exposition to industrial lines, which are very impacted, like air, space. Others are submitted to strong demands like pharmaceuticals. European activities were very dynamic, especially in Spain and in Benelux. Motorways. The work margins registered in our teams went on innovating road of the future, recycling and vegetal binding agents from -- are drawing from Eiffage Route, a renowned player of the ecological environmental transition. Metal, we enjoy of the very dynamic market of the wind farms in Europe. In 2020, we developed this expertise in France. This will enable the teams of Eiffage Metal 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 of the major project like the Lyon-Turin 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 total tunnel bores and activities as we announced Monday, we won 2 stations on construction and the branch energy systems besides the implementation in those stations also secured several technical allocations on high voltage, low voltage and ventilation. Let's see a summary in images of the activities over 2020. 10 tunnel bores on the Grand Paris Express in France. Rebuilding of an electric line, very high voltage. Warsaw façades of the Hub, delivery of 3 buildings: high energy performance for Le Floresco, St Mandé in the Paris suburb. Renewal of the elevator of the Eiffel Tower, north pillar. Power plant for the nuclear park. The largest solar farm in Europe, Núñez de Balboa in Spain, and of the works at the BNP Paribas Fortis Bank. The lock on the dam of Harelbeke, in Senegal, the works of the train in the Dakar region, bringing down the Pentagone Tower Plaza in Clamart, a suburb of Paris. Renovation of a building that will host the boosters of the Ariane rocket. Transformation of all containers into buildings, the Bio car solution on the roads. Mango mobilities, services of APRR. Grand Tortue-Ahmeyim Senegal building. Permanent activities in our airports for the needs linked to the COVID-19 crisis in the airports. Works and operation of micro power plants in France, launch headquarters of Danone and of the works for the Reims hall. Opening of line 14, north of the Paris underground metro. First electrical cars, Volvo. Restoration of the Marine House in Paris, High River Bridge in Canada. Eiffage 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 welcomed 3,900 alternates and 2,000 people who are working part-time. We implemented 820,000 hours of training and more than 1 million in 2021. We have to maintain an awareness at all-time in prevention. This is even more so basic that we're exposed to important risks highlighted 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 -- rate of frequency of the labor accidents at 5.82, below 6 according to the ambitious target that we had set collectively in the framework of the strategic plan Eiffage 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 Eiffage. 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 underwriting rate, reaching 70% -- 71% in the group. This is showing a magnificent collective momentum and a great pride of belonging. As you certainly noticed, the 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 carbon solution on the industrial partner platform Sekoya. We are convinced that the challenges climate carbon often perceived as constraints 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 industrialization of those innovations, 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 effects on the scope 1 and 2 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 this topic 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 by a diverse as I said previously. The cooperation of our corporate social responsibility during the refinancing of the banking lines up to EUR 5.1 billion since 2019. And we reached the A minus rate in the ranking of climate change in 2020 of CDP. Challenges of carbon climate are a concrete way to make our signature alive, make our difference known. It's in this mindset and total of the question with the values of the group that we started our campaign of communication low carbon, make the invisible visible. So as to each and everyone could really pick up the already operational solutions and become an ambassador facing our clients. I suggest to see or to see again the film of the launching of this campaign, a coffee break or -- a break to recharge the batteries, you can see a surface paradise of the energies of future eco-neighborhoods, roadworks, or 100% recycled service, thanks to pine sap, lamp post or 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 or 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 store of what we have done, a summer 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, a decrease unprecedented decrease of 19%. Our operating profit is at EUR 1.263 billion, strong decrease. However, we have to highlight the profitability of the works in the second half 2020, identical to the one of 2019. In spite this exceptional crisis, the net result reached EUR 375 million, 3-7-5 million euro, half of the one of 2019. After a first half year, we generated a loss of EUR 8 million. Cash flow of works did well, you can see it on the graph of 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 EUR 9.9 billion, which was not really foreseeable at mid-March. Visibility, our order book is, as I said, at the historical level at EUR 16.2 billion, an increase of 14%. For 2021, we foresee a progression of activity and results. However, without being back this year to the levels of 2019. Works activity this was seen in a significant increase bearing on a 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 and of the decisions of the governments. We will suggest at the general assembly, a dividend of EUR 3 per share, i.e., EUR 1.5 for 2020. I'm confident the group is solid, and we have the means to go on with our development in all our lines of business. We're at the heart of the environment transition. Thank you for your attention, and I invite Christian to give you the in detailed explanation of our financial elements. Thank you.

Bonjour à tous. 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% in contracting mine, 12.7% concessions like-for-like and 12.7% 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 highlight has 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 international, that was corrected because full years the activity reduction losses a very similar 0.7% between France and rest of Europe by country on Page 36, a major trend. I'll return to 3 of our major countries of operation. Our activities in Germany were up 10% for 3 reasons: business continuity during the first lock down; 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 productivity; Belgium, minus 13% in a 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%, 38.4% 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 that 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 buildings suffered more. All in all, you see a contracting margin in H2, 5.4%, identical to 2019 proves that our company integrated the health constraints demonstrating agility, capacity to adapt and cost discipline. The result of concessions remained heavily impacted by traffic drops even if concessions adapted their costs and their investment budget. The outlook over 5 years. It's the 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 first lock down 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 reservation, 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 EUR 58 million in operating profit lower than the EUR 77 million achieved in '19, 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 onerous to put in place. And of course, the lump sum nature of most of our contracts that made it more difficult to obtain compensation. Now we're here close to one. I'll illustrate what I'm saying by initiative in low-carbon construction. We're building here 4, R+4 collective housing units by our B3 co design that you've seen. It's a modular construction company using sea 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, EUR 730 million in revenues against EUR 700 million in '19, as we saw in the film. Wind power accounts for the growth of metal in France. And as [indiscernible] says a good 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. In H1, we increased to 100% our holding in the mini 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 turn 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 160,000 trips by trucks. That's colossal and the corresponding CO2 discharge and traffic disruption. Energy systems, business line activities down by 9.5%, slightly less international. And it limits its drop in margin to 90 basis points. Would have posted profitability up without the shock of H1. This better margin resistance is due to the diversity of contracts in the branch. We strengthened in France and Belgium on that of broadcasting integration through 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, I'm cited by Benoit, Greater Paris, mentioned at the foot of the screen. That all goes well at a time when certain industrial clients will no doubt slow their order intake. I mentioned Saint-Nazaire for infrastructure, energy systems also active. This is the e stack. There's one per wind power unit. It converts high-voltage power and sends it back to the substation 3 modules assembled at the Saint-Nazaire airport with a gantry. In concessions, APRR traffic was mentioned, its strong variability over the year. The good management of operating costs and quick response of teams preserved the EBITDA margin, a very laudable level, 71.4%, down but very limited given the traffic drop experienced. This allows APRR to see its credit note, A- confirmed by S&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 that are significant nor investment in the company's low carbon strategy. Our return to one of those in Grenoble, this is the AREA network we introduced in October 2020. This dynamic car pooling lane over 8 ks, it's only activated in the event of traffic congestion by the Diamond shaped Luminus 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 the motorways, we mentioned APRR or other motorways closer to that of APRR. Then there's the airport activity with the change versus 2019 that we indicate just for memory because we didn't have those assets in our numbers in 2019. Third block PPP, including the high-speed line BPL without traffic risk. The operating margin is down 11.3% owing to the drop in the APRR EBITDA margin and then the integration of airports, the losses there, EUR 45 million. In that EUR 45 million of loss, EUR 33 million correspond to the amortization of goodwill. The differential is the operating loss of the asset illustration. Our micro power plants acquired in 2019, full ownership works over 3 years for ecological compliance and to boost their powers. There are 3 tranches essentially in the summer, 2 of the sites on screen, fine autumn views. For our income statement, I extensively mentioned a dip and were the 2 main metrics. The other income and expenses down EUR 17 million as June 30. There are 2 very significant amounts, a charge of EUR 57 million for impairment -- asset impairment of the Pierre Mauroy Stadium, given the crisis. And income cash balance, EUR 61 million as part of the buyback of the 2% of the APRR capital cost. The net debt is down once again, EUR 12 million with a more significant drop in the debt of APRR, but additional financial expenses at Eiffage SA to structure additional liquidity, the bond issue that we made. In the other income and financial expenses, we had the Getlink dividend in 2019, a few impairments of securities. Nonsignificant tax expense down. Net income comes in at EUR 375 million, which brings us to earnings per share of EUR 3.83. Now the debt. I'll comment it through this bridge of development across the year. The EBITDA declined at around EUR 500 million . At the foot of the page, you have the '19 figures, offset by the change in WCR, which generates cash for some EUR 321 million. The drop in tax paid for operating cash, the first gray line, that's identical to '19, EUR 2.2 billion, give or take EUR 20 million. Each contracting division contributed to the good holding of WCR for a total of EUR 364 million. Turning to investments, OpEx contracting slightly higher than 2019. That's the tunnel bores for Greater Paris introduced this year. They'd have been down without that. Concessions, Capex, EUR 400 million for APRR; EUR 150 million for building the new A79 Motorway; EUR 100 million other assets; and PPP in construction for a total that I round off at EUR 650 million. So this leads us to a net investment flow of EUR 1.1 billion above by EUR 250 million through 2019, which is the construction of the new auto route A79 development investment and renewal, even if it's positioned at this point in the bridge, important to bear in mind. Free cash flow, EUR 1.1 billion close, very close to its 2019 level. The variance only made up, let me insist, of the investment differential that I just explained, which is a growth investment. In acquisitions, for some EUR 300 million. The main transaction is the buyback of 2% of APRR this year. Next, we have under this item, acquisitions of small 5 companies in Energy Systems. Lastly, capital transactions made up of the dividend paid by APRR to its minority shareholder. And movements on Eiffage stock increased by its treasury stock by 1% over the year. So all in all, debt net -- net debt down EUR 330 million to EUR 9.9 billion, in spite of the turbulence experienced in 2020. Next, we detailed as always this debt, but it's split between the nonrecourse portion of concessions and with recourse of 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 EUR 1.1 billion benefited of the change in contracting WCR. Also financed our growth investments, some EUR 300 million, 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 to detail here by division and construction, the order book is 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 at a lesser extent. Same situation as for infrastructure, I believe I detailed our major metrics. We can now move to Q&A. With Benoit, let's start with questions in French before moving to questions in English. Thank you.

[Interpreted] [Operator Instructions] Our first question comes from JP Morgan.

[Interpreted] Yes. Benoit, Christian. I hope you can hear me clearly. Well done for the results. My first question will be on WCR. Fine performance. We saw it at VINCI also. They indicated, however, that there was 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 '21 as you see it? And my second question on the construction margin, they're down in H2. Can we hope that they'll level off in '21 versus '19? 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 it was no longer on the cards and the extension. What's your take on that?

[Interpreted] Christian, maybe on WCR. Yes. So from time to time, we have public clients that pay -- I mean, will that happen. I mean, it went well towards the end of the year, but not significantly more than usual. I'd just suggest we return to a slide the small multiyear graphs of the changes in WCR discussed by Benoit. What we see for WCR total of the period, you do this somewhere in a variation of 0, pretty much for revenue of $80 [ billion ]. We've always said on a long-term trend, the WCR change, if our results are clearly assessed at 0 even if from time to time, we can accelerate payments, have payments advantage. But midterm, we can say 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 for the industry as a crisis dampener when we saw a sharp drop in revenue. We hadn'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 we'll consume a bit of WCR, would be logical given past history. But we -- our WCR is under control. I think we should rather anticipate a stable WCR with a slight cash out for W for '21, 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,'16, '17 through '19. Real estate consumes always 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.

[Interpreted] Yes. 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 a pretty marked uncertainty in the trend of our order intake. So I'd say, really, the challenge is more considerable in '22 than it is in '21, you see that our order book was slightly down. And if the drop were to heighten, it wouldn't contribute to stabilizing profitability earning. It would really depend on our order intake that we're really keeping a close watch on month by month.

[Interpreted] Olivier, Philippe maybe some input on the stimulus package or possibility thereof. At the start of 2020, the transport ministry asked us to prepare proposals, investment proposals for -- to accelerate the ecological transition a bit more by diversity 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 though 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. They're ready for a massive stimulus plan or for a more modest contract plan were available with the government to move forward on those fronts.

[Interpreted] Next question from Jean-Christophe, Leferve. Yes. Can you hear me? Yes, indeed. Including Jean-François is present. It's about the motorway A79.

[Interpreted] We can barely hear the speaker.

[Interpreted] Out of the EUR 548 million of the project in 2021, 2022. Will this be refinanced with partners? I think it's APRR, the test of managers project. You didn't elaborate on this project yet. Are the clauses of the sharing of the revenues? Second question. Curiously, 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 Eiffage 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 EUR 150 million. Was this figure improved this year.

[Interpreted] Christian, ex cap, I'll give you approximate figures, EUR 300 million in 2021, above the EUR 150 million. And EUR 100 million 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 Eiffage SA. And it's only the operation that is picked up by APRR. And from the time being, we are in the classic framework to be financed by Eiffage during the construction. And the question will be asked when the refinancement will come when the motorway A79 will be operated we'll see if it changes regarding the shareholder proportion between APRR and Eiffage. 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 the prices will be announced. What is the magnitude of the revenues during the first 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 million before amortization and a margin of EBITDA, which is positive. On the Eiffage 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 a 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 and the most important in the market for the foreign operators. Some figures per country. In Germany, EUR 100 million activity, the rest by the infrastructure; metal and civil engineering in Belgium, we had EUR 115 million energy the rest in construction. We didn't do as Benoit, external growth, major external growth. We are in 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 EUR 500 million and EUR 600 million, something very important in 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 EUR 11 million -- to EUR 11 million. The EUR 45 million of loss for the airports because I thought it was an important figure is EUR 33 million of over value and EUR 11 million of loss and EUR 1 million of the Lille airport. EUR 1 million -- 1, 1 unit. Sound is no good.

[Interpreted] Next question comes from Barclays.

[Interpreted] I've 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 '21 versus the basis of '20. 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 and 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 -- give the margins in the various contracting business? Very good margin in infrastructure and energy system in H2 2020. Can we extrapolate that into '21?

[Interpreted] Maybe Christian on the phasing.

[Interpreted] On the CapEx, Philippe, do you want to speak to that? And then I'll comment on the remaining CapEx.

[Interpreted] Yes, for the phasing APRR year, we invested EUR 400 million in 2020. For '21 we anticipate EUR 450 million. 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 '22. We're anticipating today some EUR 350 million in '22.

[Interpreted] On the other concessions with our new operations, we can expect EUR 30 million to EUR 50 million over the number -- on the only operations on the Arena Reims PPP Police Station in Paris still. PPP, the Nautical stadium at Mérignac that we saw and the upgrade of the dams, renewal CapEx for airports and the Marina Villeneuve-Loube count between EUR 120 million, EUR 150 million, EUR 120 million on that scope, and EUR 150 million for new business in '21. Once again, EUR 100 million for '22, and then it will depend on successes achieved on new deals.

[Interpreted] 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 that it's hugely driven by the major projects. Impressive figures, but spread over time for longer. Good news because it stabilizes a lot, but it's really -- hides the forest here on the kind of business franchise 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 '20 is obvious, is evident because we're assuming that we'll continue to be allowed to work as we did during the second lock down, as we did in a number of countries, including during the first half. However, the uncertainty on certain business franchise volumes is 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 '19. There's no return to better fortunes on big deals. I mean, it's really kind of half year execution in spite of constraints, a number of difficulties. 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&A coverage. That's not as good. And if volumes were to reach what we saw in '19, 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. Is the answer sufficiently clear?

[Interpreted] Next question, Pierre Bosset, HSBC.

[Interpreted] Three questions. First, about Grand Paris. Can we have an idea of the market share of Eiffage on the share of the works. I think there are 3 groups in design and building. What are the 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 in standby?

[Interpreted] 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. On the pricing?

[Interpreted] 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 a situation day after day. Okay?

[Interpreted] 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, the certain amount of groups, we made a choice to integrate between Eiffage Construction and Eiffage System. We had 2 successes, 2 first successes. We want 2 stations. And we operate on the same way for the other stations which are put at call for tender. It's between EUR 50 million and EUR 100 million according to each station. A certain amount will be put for auction. And at a scale of the energy system, those are significant contracts that may go up to EUR 50 million to EUR 100 million. The society of the Grand Paris to all groups to be very active in mobilizing qualified teams to be able to catch up with the delays or concentrate the resources in order to be starting several pits at the same time, which encourage the groupings. And we have a stable group, high voltage, low voltage and another groupment regarding ventilation. And for the time being, we have won a certain amount of things. We are on the line 15 and line 16 and 17. Those are the studies being led and the first works we'd be able to start soon. And the last element is for the major projects of civil engineering, I think that globally speaking, will 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 first 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.

[Interpreted] 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 d'Issy of Île-de-France 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, Eiffage is positioning itself. We took the strategic decision to renew the same recipes that worked on the line 16. We organize the investigation and solidarity with partners who are subcontracting.

[Interpreted] Thank you, Guillaume. Is it clear enough, Pierre?

[Interpreted] Yes.

[Interpreted] Our next question comes from Brian [indiscernible]

[Interpreted] 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. Second, on a lighter note, you mentioned at the outset that the accident rate was down again last year. You've seen similar situation for temporary personnel, what do you plan to do to reduce the difference? When we look at the accident rate, there's quite a marked difference if we just look at Eiffage employees and also temporary staff. Is it training that accounts to the difference? Maybe you could -- are there some lessons learned to reduce the delta between the 2? Third, 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.

[Interpreted] Maybe, Guillaume, on the tenders, the Greater Paris.

[Interpreted] Well, we're in the offer phase, and we haven't done all the costing. Can't give the amount of our offer, but these are segments of the order of EUR 2 billion. EUR 2 billion for each of the 2 contracts.