TANGUY BERTOLUS Technical Director

SMART CAPEX Driving value with investment projects

What is our role AS PrOGRAMME MANAGERS? Planning investments that create value Anticipate the long run: masterplan… …but remain flexible to adapt to actual evolution 5 year plan is the right medium term planning horizon Economical justification of investment projects: creating capacity, enhancing revenues, allowing cost savings… VINCI Airports Convention 2014

What is our role AS PROGRAMME MANAGERS? Delivering cost effective projects: managing and monitoring execution The basis: supervision of contractors/suppliers Involve all stakeholders: internal customers, HQ, other divisions Manage project variations Ensure cost-effectiveness of end product VINCI Airports Convention 2014

What is our role AS PROGRAMME MANAGERS? Preparing hand-over to Operations from day 1 We don’t supply just a building or an equipment or a system We deliver operational tools that our colleagues will use They must be involved and prepared all along the projects: requirements, design monitoring, procedure definition, training, tests… VINCI Airports Convention 2014

SMART CAPEX TWO DRIVERS OF SUCCESS Coordinate all stakeholders along investment process Focus on delivering value SMART CAPEX VINCI Airports Convention 2014

Defining requirements : functional programming THREE ISSUES Defining requirements : functional programming Project planning and monitoring Life-cycle costs and project value VINCI Airports Convention 2014

Defining requirements: functional programming Delphine Roy

Requirements definition Weak functional program leads to: Increase the cost Delays Dissatisfaction Clients know their needs but sometimes have difficulties to express them VINCI Airports Convention 2014

All stakeholders must think through their needs from the beginning : Never skip the functional program phase All stakeholders must think through their needs from the beginning : > a formal process is necessary VINCI Airports Convention 2014

1 Proposed solutions ENHANCE TRANSVERSALITY Involvement of every stakeholder (Grantor, BU, airlines,… ) > Definition of who needs to be involved and when > Strong client leader able to decide. BU? > Technical Dpt assists the client in the functional requirement redaction and the client must validate it > Impose economical justification for all requirements ENHANCE TRANSVERSALITY VINCI Airports Convention 2014

2 Proposed solutions Checklist of questions The technical departement can define a list of questions to be answered by the stakeholders prior to start the project > Main goal > Quantity > Performance > Functional needs VINCI Airports Convention 2014

3 4 Proposed solutions VINCI Airports standards > There is a need of defining standards for VINCI Airports > And then use them when applicable 4 Cost estimation > Technical department has to provide clients with preliminary cost estimation > Client has to prepare the business case and decide to stop the project or move forward

Proposed solutions One of the main goal of the monitoring process is to ensure that the project is compliant with functional program VINCI Airports Convention 2014

PROJECT PLANNING AND monitoring Elsa Franco

Allows to manage priorities and flexibility WHY PLANNING IS VITAL? A way of understanding the constraints of the parties involved in the investment process Planning is vital to anticipate risk management, resource allocation (including financial resources) Allows to manage priorities and flexibility Necessary to reach an agreement by all stakeholders on a common strategy and common target VINCI Airports Convention 2014

WHY MONITORING IS VITAL? Right level of decisions at the right time An act of transparency that must involve all project participants Monitoring is a way of achieving compliance of the project with the defined main goals Allows to react at the right time VINCI Airports Convention 2014

Implement 5 year CAPEX budgets in common with all airport divisions ACTIONS : PLANNING Implement 5 year CAPEX budgets in common with all airport divisions Define a common VINCI Airports format with relevant information Define a process to give priorities to projects VINCI Airports Convention 2014

Implement INVESTMENT COMMITTEES: role and responsibilities ACTIONS : Monitoring Implement INVESTMENT COMMITTEES: role and responsibilities Define who needs monitoring information (Operations, management, HQ, external stakeholders…) and which information to give Define VINCI Airports management investment process that defines project phases, decision steps, organization… Standard VINCI Airports KPIs for CAPEX projects VINCI Airports Convention 2014

Life-cycle costs and project value Sopy

ConclusionS LCC = CAPEX + OPEX (+ RECYCLING) Operation development End of life Operation development Engineering LCC = CAPEX + OPEX (+ RECYCLING) VINCI Airports Convention 2014

WHY IS IT VITAL? OPEX is a risky stage in term of costs : variables and duration On a project/equipment lifespan OPEX could be more expensive than initial CAPEX Smart definition of requirements lead to a better balance CAPEX/OPEX and therefore major OPEX savings OPEX affects the EBITDA and not shared with the Grantor VINCI Airports Convention 2014

Monitoring Energy costs : assessment tool ACTIONS Monitoring Energy costs : assessment tool Monitoring Maintenance costs : CMMS with targeting a standard Monitoring Operational costs : extension of CMMS? => PROCUREMENT EFFICIENCY + SMART DATAS : RELEVANT BENCHMARK within VINCI Airports network to increase each BU performance VINCI Airports Convention 2014