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1
November 2014
Bouygues Group presentation
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE
1
November 2014
This presentation contains forward-looking information and statements about the Bouygues group and its businesses. Forward-looking
statements may be identified by the use of words such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates”
and similar statements. Forward-looking statements are statements that are not historical facts, and include, without limitation: financial
projections, forecasts and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with
respect to future operations, products and services; and statements regarding future performance of the Group. Although the Group’s
senior management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned
that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and
generally beyond the control of the Group, that could cause actual results and developments to differ materially from those expressed in, or
implied or projected by, the forward-looking information and statements. Investors are cautioned that forward-looking statements are not
guarantees of future performance and undue reliance should not be placed on such statements. The following factors, among others set
out in the Group’s Registration Document (Document de Référence) under the section headed Risk factors (Facteurs de risques), could
cause actual results to differ materially from projections: unfavourable developments affecting the French and international
telecommunications, audiovisual, construction and property markets; the costs of complying with environmental, health and safety
regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets;
the impact of current or future public regulations; exchange rate risks and other risks related to international activities; risks arising from
current or future litigation. Except to the extent required by applicable law, the Bouygues group makes no undertaking to update or revise
the projections, forecasts and other forward-looking statements contained in this presentation.
2
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
9M 2014 RESULTS Slide 33
CONCLUSION Slide 71
APPENDIX Slide 73
3
Profile
A diversified industrial group
5 businesses with different cycles focusing on three sectors: construction, telecoms and media
Key figures1 in 2013 €647m4 net profit
128,067 employees
4
26.12.4
4.6
Sales2 at €33.1bn
1,005
223 125
Current operating profit2 at €1,319 m
2013 contribution1 by business area
819
149 24(3)
Free cash flow2 at €818m3
Construction businesses Bouygues TelecomTF1
(1) 2013 figures restated for IFRS 11 (2) Including Holding contribution: €9m for sales; -€34m for current operating profit; and -€174m for the free cash flow
(3) Free cash flow is calculated before changes in WCR. It excludes capitalised interest related to 4G frequencies for €33m at Group level (o/w €13m at Bouygues Telecom
level and €20m at holding company level) (4) Before the write-down of Alstom for €1,404m
Key strengths
A family company with a stable share ownership structure allowing long-term focus
A strong and distinctive corporate culture
A positioning on markets underpinned by solid demand
A solid operational track record of delivering revenue and earnings growth
A sound financial profile
5
Shareholders’ structure allowing long-term focus
Shareholder structure at 30 June 2014
A stable share ownership structure
6
SCDM
Employees
Other French
shareholders
Voting rights
At 31 June 2014: 335,727,874 shares and 484,648,071 voting rights.
SCDM is a company controlled by Martin and Olivier Bouygues
Capital
20.9%
24.1%
16.8%
38.2%
Foreign
shareholdersSCDM
Employees
Other French
shareholders
Foreign
shareholders 27.8%
30.0%12.9%
29.3%
A strong and distinctive corporate culture
Construction is a “good management school”
Project management skills and knowhow in complex projects
Managers have experienced previous crises
Strong mobility within the Group and of top managers
7Pragmatic – Cautious – Opportunistic – Entrepreneurial
Masan Bay bridge, South Korea Stade de France Bouygues Telecom 3G network
Long-term growth opportunities
Growing long-term infrastructure needs in both developed and emerging countries
Drivers: demographic growth, urbanization, saturated and
aging infrastructures…
Estimated total cumulative world infrastructure requirements
(additions and renewal) to 2030*: 53 trillion $
New opportunities arising from environmental concerns
Sustainable construction: from the building to the neighborhood
Alternative transport infrastructures (railways, canals…)
Strengthening existing customer base and increasing addressable
market in Telecom / Media
Fixed broadband market, mobile data, B2B market …
8*Source OECD - rail, road, telecoms, electricity transmission & distribution, water
QP District, Qatar
A solid operational track record
€20.5bn
9
€876m
2001
€344m
2013(1)
+ 4 %
+ 3 %
+ 5 %
(1) 2013 figures restated for IFRS 11 (2) Attributable to the Group (3) Before the write-down of Alstom for €1,404m
€0.36X 4.4
€33.1bn
€1,319m
€647m3
€1.60
Sales
Operating profit
Net profit2
DPS
CAGR
0%
2%
4%
6%
Ability to control capex
Capex-to-sales ratio2
A healthy financial profile
10
Available Cash = €8.7bn
Low gearing at 51%1
Evenly spread repayment schedule
No significant off-balance sheet commitment
High level of liquidity
Free cash flow2 = €0.8bn
Average Free cash flow since 2005 at €1bn
Cash remittance to the holding
Sustainable cash-flow
generation
All figures are at end December 2013
Debt under control
(1) Including impact of the write-down of Alstom
(2) Capex and Free cash flow exclude capitalised interest related to 4G frequencies for €33m at Group level
1Dividend yield based on closing price
0.36
0.50.75
0.90
1.21.5 1.6 1.6 1.6 1.6 1.6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Dividend yield1:
1
Dividend per share
4.4% 5.0%5.3%2.6% 6.6%2.5%2.2%2.2%2.7% 7.1%
11
5.8%
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
9M 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 71
APPENDIX Slide 7312
Construction businesses
13
A world leader: n°7 “top international contractor” according to ENR ranking1
2013 key figures
France59%Europe
(excl. France)
16%
Americas11%
Asia & Middle East
8%
Africa6%
11.1
2.512.8
Buildings & civil works Real estate Roads
CONSTRUCTION BUSINESSES: profile
Sales2: €26.1bn3
437
178
390
Building & civil works Real estate Roads
331
110
378
Building & civil works Real estate Roads
(1) Companies are ranked according to construction revenue generated outside home country (2) 2013 figures restated for IFRS 11 (3) Total of the sales contributions (after eliminations within the
construction businesses) (4) As published in 2013 (not restated for IFRS 11)
Sales4 by region
Free cash flow2: €819mOperating profit2 : €1,005m
14
Building & civil works
Bouygues Construction is a world leading full service contractor in building & civil works, electrical
contracting and maintenance
A recognized expertise at every stage of a project from design to construction, operation,
maintenance, and including financing arrangement
Real estate
Bouygues Immobilier is the leading property developer in France
A pure player in real estate development with more than 50 years of experience, acting both in
residential and commercial segments and predominantly in France
Roads
Colas is a world leader in road construction and maintenance
Key competitive advantage thanks to vertical integration with a widespread industrial footprint
(aggregates, emulsions, asphalt mix, bitumen...)
CONSTRUCTION BUSINESSES: profile
15
CONSTRUCTION BUSINESSES: strengths & opportunities
The ability to provide innovative, high value-added solutions tailored to customers' requirements
The development of specialty activities, which are sources of growth
A strong and diversified international presence
The focus on long-term sustainability and the ability to adapt
The Baluarte bridge, Mexico
16
CONSTRUCTION BUSINESSES: high value-added solutions
High-level technical know-how
A solid track record valued by customers all around the world
Ability to develop high value-added end-to-end offers
20 years of expertise in full service offering contracts
More than 120 projects (PPP/PFIs1/concessions) over the period
Comprehensive solutions including design, construction, maintenance and
financing
Competitive advantage in sustainable construction
Increasing market demand, supported by regulation, for energy-efficient
buildings
Currently developing new offerings for green neighbourhood relying on the
entire Bouygues Group’s expertise
1PPP: Public-Private Partnerships, PFI: Private Finance Initiative
French Ministry of Defense, Balard, 2012-2014
Green office®, Meudon
Sports Hub, Singapore, 2010-2014
17
CONSTRUCTION BUSINESSES: high value-added solutions
18
L2 bypass PPP in
Marseille, France
New Coastal Road on
Reunion Island, France
The largest infrastructure project awarded
in France in 2013
30-year PPP
Works valued at €340m for Bouygues
Construction and Colas
Completion: 2017
Construction of the longest off-shore viaduct
in France (5.4 km)
Contract worth €218m for Bouygues
Construction
Construction of four sections of an elevated
dual three-lane road
Contract worth €318m for Colas
Completion: 2018
Some examples in transport: major road construction projects
19
Iqaluit International Airport, Canada
Financing, design and construction of a new terminal
Works valued at €160m for Bouygues Construction and Colas
Handover scheduled for end-2017
Lyon-Saint Exupéry Airport, France
Design and construction of a new terminal
Works valued at €142m
Handover of the first phase in 2016
Passenger capacity: close to 10 million
Zagreb Airport, Croatia
Financing, design and construction of a new terminal
Works valued at €243m
Handover scheduled for end-2016
Passenger capacity: 5 million
Some examples in transport: airports
CONSTRUCTION BUSINESSES: high value-added solutions
CONSTRUCTION BUSINESSES: development of specialty activities
Strategy
Expand the offering available to customers
Develop synergies with existing business areas
Penetrate new growth potential markets
For example: urban transport, a growing market
Increasingly strong demand in large and mid-sized towns and cities
Recognised know-how
30 projects completed in France since 1985
International know-how: Cairo metro (Egypt), Rabat-Salé and Casablanca
(Morocco), Geneva (Switzerland), Los Teques (Venezuela), Kuala Lumpur
(Malaysia), etc.
2013 sales at Colas Rail up +19% (€767m):
Strong growth in the order book, which enjoys increasing maturity with several
commercial successes : high-speed rail line in Morocco for €124m, RFR rapid
transit rail network in Tunis for €86m, Santiago metro in Chile for €67m
Rabat-Salé tramway, Morocco
Order book at Colas Rail
0.3 0.3 0.4 0.5
0.30.6
0.70.8
0.6
0.9
1.1
1.3
End-2010 End-2011 End-2012 End-2013
Share of more than 1 year
Share of less than 1 year
€bn
20
+14%
YoY
Countries where Bouygues Construction
and Colas generated sales in 2013
CONSTRUCTION BUSINESSES: main international contracts won in 2013
21
Canada
Iqaluit Airport (€160m)
Road maintenance (€35m)
US
Private property development (€200m)1
Airport runway (€20m)
Cuba
Luxury hotel complex (€60m)
Trinidad and Tobago
National oncology centre (€40m)
Morocco
Luxury residence (€40m)
Tangier-Kenitra high-speed
rail line (€125m)
Tunisia
Tunis rapid rail network (€85m)
Chad
Road (€40m) Turkmenistan
Theatre and concert centre (€340m)
International university (€90m)
Singapore
Bangkok condominium tower (€100m)
Bishan condominium tower (€100m)
Thailand
Photovoltaic solar power plants (€40m)
Myanmar
Residential complex (€70m)
Hong Kong
Subsea road tunnel (€1.15bn)
Macao
Luxury hotel complex (€360m)1
Switzerland
Erlenmatt eco-neighbourhood in Basel (€130m)
Im Lenz eco-neighbourhood in Lenzburg (€110m)
UK
University campus in Hertfordshire (€140m)
Property complex in Lewisham (€70m)
Road maintenance in London (€205m)
(1) Partial order intake in 2013
Group share – rounded up/down
50% of the order books at Bouygues Construction and Colas is to be executed in international markets
Croatia
Zagreb Airport (€240m)
Chile
Santiago metro in Chile (€70m)
Hungary
M85 motorway (€90m)
Slovakia
R2 motorway (€80m)
Operations in 80 countries
CONSTRUCTION BUSINESSES: focus on long-term sustainability
22
Order books (€m)
14,154 15,283 17,147 17,832
2,2803,051
2,957 2,6106,1416,472
6,704 7,08822,57524,806
26,808 27,530
End-2010 End-2011 End-2012 End-2013
Bouygues Construction Bouygues Immobilier Colas
+3%
-12%
+4%
+6%
+22%
A safe and extensive order book providing good visibility on future activity
A record order book of €27.5bn at end-December 2013, up 3% year-on-year and up 22% since end-2010
An increase in the depth of the order book, giving time to adapt
2013 orders at Bouygues Construction and Colas to be executed beyond
one year (Y+1) are up 7% y-o-y and represent 44% of the total
A strong ability to adapt
Cost structure mostly variable (attached to projects)
Geographical flexibility of teams
Management’s proven responsiveness
Focus on controlling operating and financial risks in order
to ensure long-term performance
Commercial selectivity (preference is given to margin)
Strict control procedures and cautious guidelines
161
368 420
617497 450
695784*
488605
812819
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
384 379
535783
966 1,1581,236
1,079832
1,020949 1,005
2,7%2,8%
3,7%
4,7%5,1% 5,3% 5,0%
4,6%
3,6%
4,2%3,7% 3,9%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CONSTRUCTION BUSINESSES: robust financial profile
A solid profitability1
Operating profit (€m) and margin
A recurring FCF generation1 (€m)
1,185
1,689
2,2592,440
2,4952,794
2,587
3,547
3,1753,404
3,281 3,308
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
*Excluding Axione disposal at Bouygues Construction for €163m
A high net cash position1 (€m)
23(1) 2013 figures restated for IFRS 11
24
A strong media group
The leading TV channel in France, TF1
Strong position on free-to-air market with 4 channels
12 other pay-TV channels including Eurosport (n°1 sport TV channel in Europe)
Diversification activities: audiovisual rights and production, licensing…
2013 key figures
€2.5bn revenue
€137m net profit1
Around 3,800 employees
Leader in audience share
A core channel offering a unique exposure for advertisers generating a premium to the leader
A leadership in combined audience share (28.9%2 for TF1, TMC, NT1 and HD1 at end-December 2013)
representing an unrivalled television offer
A unique position in Europe
Channels and brands available on every media and every screens
A true multimedia advertising agency (TV, radio, web, press)
TF1: profile
68% 32%
2013 sales breakdown
TF1 Group
advertisingOther activities
Journalist Harry Roselmack
1 Attributable to the group 2 Individuals > 4y - 2013 - Médiamétrie / Médiamat25
TF1: targets
Strengthen core free-to-air business
Maintain the group’s leading market position
Develop close relationship with TV viewers thanks to strong positions in new media
Keep innovating to enhance the efficiency of ad campaigns and increase monetization
Continue the development of TF1’s pay services and products
Eurosport: a strong asset
Partnership signed with Discovery Communication
Foster the counter-cyclical advantage of diversification
Develop different sales modes (B2B, B2C,…)
Improve profitability
Phase 2 of the cost-optimization plan launched in 2012: increase productivity and flexibility
Review the Group’s processes and organizations
Pursue the rationalization of diversification businesses 26
27
Major actor of the French telecom market for more than 17 years
Mobile commercial launch in 1996, fixed broadband commercial launch in 2008
11.1 million mobile customers at end-December 2013 for a 15% market share
2.0 million fixed broadband customers at end-December 2013 for an 8% market share
A network of about 500 stores
Tradition of innovation to deliver value for money to customers
First call plans in the French market
First unlimited bundles (Neo)
First quadruple play offer (ideo)
First “SIM-only/Web-only” offer for less than €25 (B&YOU)
2013 key figures
€4.7bn revenue
€13m net result2
9,100 employees
BOUYGUES TELECOM: profile
281SIM-only/web-only 2Attributable to the group
BOUYGUES TELECOM: facing a challenging mobile market
A challenging mobile market since 2012
Strong growth in SIM-only plans transforming the business model
Sharp fall in pricing
Operators’ profitability squeezed significantly due to more and more customers switching to the new
price plans combined with falls in market share
Bouygues Telecom reacted quickly beginning of 2012 with two strategic priorities
Transform the business model
Reposition the offering in order to boost differentiation and return to growth
29
A strong mobile network
15,000 sites deployed covering 99% of the French population in 2G and 96% in 3G
4G network open commercially on 1 October 2013: 71%1 of the population having access to 4G
Network sharing agreement signed with SFR to significantly improve geographical coverage and network
quality as well as generate cost savings
Access to spectrum secured to support mobile data services in the future
A capacity of 73 MHz of spectrum (27% of the total available) on 800, 900, 1,800, 2,100 and 2,600 MHz
bands
Fixed network
78% of the population covered in unbundled zones – 50% of the population covered by Bouygues
Telecom’s own network with a target to add 1 million households by end 2014
1.2 million Fibre home passed (FTTH) – Target of 1.4 million by end 2014 and 2 million by end 2015
More than 7 million households eligible for very-high-speed thanks to Numericable wholesale agreement
BOUYGUES TELECOM: technology and innovation
30(1) Data collected on November 2014
Creating value by developing mobile data use
4G allows intensive data use making new uses possible
Pursuing growth in the fixed broadband business by making
services and very-high-speed broadband accessible to
as many people as possible
Roll out of the directly-owned network enabling Bouygues Telecom to
offer customers market-beating prices (€15.99, €19.99 and €25.99)
Seize opportunities in B2B markets : take advantage of the €13bn2
corporate market opening up to competition
Major existing corporate clients include BNP Paribas, Lafarge, Foncia etc.
243
414
627
820
2010 2011 2012 2013
BOUYGUES TELECOM: opportunities
Fixed broadband sales from
network (m€)1
1Sales from network excluding ideo discount 2Estimate by Arcep and Bouygues Telecom
+31%
31
Average GB consumption per month by Bouygues
Telecom customers in 3G vs 4G
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
9M 2014 RESULTS Slide 33
CONCLUSION Slide 71
APPENDIX Slide 73
32
33
Reminder: change of accounting methods in 2014
As announced
The figures published in 2013 have been restated for IFRS 11
TF1's remaining 49% interest in Eurosport International is consolidated by the equity
method from 1 June 2014, following the sale of a controlling stake to Discovery
Communications on 30 May 2014
Eurosport International’s contribution recorded at Bouygues level from 1 January until 30 May 2014
Sales: €150m
Current operating profit: €26m
Alstom’s contribution to Bouygues’ net profit is now booked only in Bouygues’ Q1 and Q3
and it is calculated from the net results reported by Alstom for the six months ended 31
March and 30 September
ANNEX
34
GROUP KEY FIGURES
BUSINESS SEGMENTS
FINANCIAL STATEMENTS
ANNEXES
€ million 9M 2013 restated 9M 2014 Change
Sales
o/w France
o/w international
24,088
16,115
7,973
24,223
15,664
8,559
+1%a
-3%
+7%
Current operating profit 878 554 -€324m
Operating profit 878 949b +€71m
Net profit attributable to the Group 548 728c +€180m
Group key figures (1/2)
9-month 2014 results are in line with H1 2014 trends
Based on the first 9 months, 2014 Group sales should be about stable
vs 2013 (between -1% and 0% vs 2013)
35
(a) +1% like-for-like and at constant exchange rates (b) Including non-current operating income of €81m related to Bouygues Telecom and a capital gain of €314m on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%) (c) Including a net capital gain of €240m on the sale by Colas of its stake in Cofiroute
Group key figures (2/2)
36
€ million 9M 2013 restated 9M 2014 Change
Current operating profit 878 554 -€324m
of which construction businesses
of which TF1
of which Bouygues Telecom
635
104
160
541
58
(26)
-€94m
-€46m
-€186m
Current operating margin 3.6% 2.3% -1.3 pts
Current operating profit mainly reflects the expected decline in profitability
at Bouygues Telecom
Financial results of the construction businesses
37
Sales growth driven by international activities
Bouygues Construction results reflect a number of major projects in their early stages, in particular the Zhuhai Macao
bridge
Colas operating margin holding up well, excluding the impact of the sales of refined products activity, thanks to the railways
and international activities
Decrease of activity in the French roads market partly compensated by the benefits of the 2013 reorganisation
9-month 2014 operating loss of €41m at the sales of refined products activity (vs operating loss of €31m in 9-month 2013 and €46m in 2013)
€m 9M 2013 restated 9M 2014 Change
Sales
o/w France
o/w international
18,934
11,282
7,652
19,34710,976
8,371
+2%a
-3%
+9%
Current operating profit
o/w Bouygues Construction
o/w Bouygues Immobilier
o/w Colas
635
311
123
201
541
244
124
173
-€94m
-€67m
+€1m
-€28m
Current operating margin 3.4% 2.8% -0.6 pts
(a) Up 2% like-for-like and at constant exchange rates (down 3% in France and up 10% internationally)
Q3 2014 results confirm H1 2014 trends
Continuation of the subscriber base repricingd: 82% at end-September 2014 vs 60% at end-December 2013
4G licence fee related to the refarming of 1800 MHz: €44m in the 9-month 2014
Confirmation of the target to generate an "EBITDA minus Capex" item close to zero in 2014
Financial results of Bouygues Telecom
38(d) Number of retail customers subscribing to a plan whose price has been revised since April 2013 as a percentage of the total retail plan subscriber base
(a) Down 5% like-for-like and at constant exchange rates (b) Including non-current income of €86m: €432m for litigation settlements and
other minus €346m in provisions for adaptation costs and other (c) Excluding capitalised interest related to 4G frequencies for €13m
€m 9M 2013 9M 2014 Change
Sales 3,453 3,294 -5%a
Sales from network 3,169 2,915 -8%
EBITDAEBITDA/network sales
727
22.9%
538
18.5%
-€189m
-4.4 pts
Current operating profit/(loss) 160 (26) -€186m
Operating profit 160 60b -€100m
EBITDA minus Capex 166c 44 -€122m
39
GROUP KEY FIGURES
BUSINESS SEGMENTS
FINANCIAL STATEMENTS
ANNEXES
40
Construction businesses
Solid commercial performance of the construction businesses
High level order book: €27.4bn at end-September 2014,
stable year-on-year
41
15,262 17,051 17,711 17,626
2,6302,879 2,615 2,144
6,6697,006 7,094 7,671
End Sept.2011
End-Sept.2012
End-Sept.2013
End-Sept.2014
ColasBouygues ImmobilierBouygues Construction
Order books (€m)
€24.6n
€27.4bn€26.9bn €27.4bn
Roland-Garros airport, Reunion island
Update on trading environment
As expected, the French market got tougher in the 9-month 2014 period
Significant slowdown in the French roads activity
9-month 2014 sales down 12% vs 9-month 2013
Order book at end-September 2014 down 11% vs end-September 2013
Scarcity of very large contracts
No recovery yet in the property market
Positive government measures could stimulate the residential market in 2015
However, to cope with the French slowdown, Bouygues’ construction activities demonstrate…
A strong momentum in international business
A diverse mix of offerings and technical expertise providing differentiation
… and can rely on a flexible cost structure and ongoing adaptation plans to mitigate the impact
on operating margin42
Strong momentum in international business
Increased international presence
51% of the combined order book at Bouygues Construction and Colas (vs 49% at end-September
2013): €13bn at end-September 2014, up 6% year-on-year
At €8.5bn, Bouygues Construction international order book has yet to include the East West Link
contract in Australia for €975m
Colas international order book: €4.4bn, up 24% year-on-year at end-September 2014
43
Colas order book (€m)
+8%
+24%
-8%
Bouygues Construction order book (€m)
9,050 9,094
8,661 8,532
17,711 17,626
End Sept. 2013 End Sept. 2014
International
France
=
-1%
=3,523 3,226
3,571 4,445
7,0947,671
End Sept. 2013 End Sept. 2014
International andFrench overseasterritories
Mainland France
East West Link contract in Australia
Project
PPP contract to finance, design and construct a new 6.6-kilometre freeway link in northern
Melbourne and to operate it for 25 years
Customer: the Linking Melbourne Authority
Total value: about €4.6bn
As part of a consortium, Bouygues Construction
will design and build the road
Value for Bouygues Construction: €975m
The project will take 5 years to complete
Contract has yet to be included in the order book
This success confirms the development strategy in Australia, which relies on executing high
value added projects in partnership with established local companies44
Strong momentum in international business
45
International sales
represented 48% of
Bouygues Construction
and Colas sales
in the 9-month 2014,
versus 44% a year ago
Americas:
€2.2bn, +4%+10% at constant
exchange rates
Africa:
€0.9bn, =
+3% at constant
exchange rates
Asia, Oceania &
Middle-East:
€1.7bn, +13%
+17% at constant
exchange rates
Europe (excl. France):
€3.5bn, +15%+13% at constant exchange
rates
France:
€9.1bn, -6%
Countries where
Bouygues Construction and
Colas generated sales in 9M 2014
Sales generated by Bouygues Construction and Colas in 9M 2014
(and change vs 9M 2013)
A diverse mix of offerings and technical expertise provides differentiation
leading to outperformance in the French market
Strong momentum in the railways activity at Colas
Solid French order intake at Bouygues Construction
Ex: contract for the new coastal Road on Reunion Island and contract for package 2 of the Paris metro line 14 extension
Expertise in turnkey projects at Bouygues Immobilier
Reservations increased in a depressed market thanks to the gain of a large commercial property project
Diverse mix of offerings and technical expertise
46
3,859 4,076
9M 2013 9M 2014
+6%
Bouygues Construction French order intakea
(a) Definition: contracts are booked as order intakes at the date they take effect
(b) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)
1,090 992
210 420
1,300
9M 2013 9M 2014
Commercialproperty
Residentialproperty
Bouygues Immobilier reservationsb
+9%
1,2101,590
End Sept. 2013 End Sept. 2014
+31%
Colas order book in railways
1,412
SMA's future head office in Paris
SMA, a provider of insurance services, has acquired its future head office
from Bouygues Immobilier
35,000-m² turnkey office building, located in the 15th arrondissement of Paris, on the site
of the former Hotel Pullman Porte de Sèvres
It will benefit from stringent environmental construction standards, guaranteed by the following
certifications: BREEAM Good, LEED Gold, and NEF bâtiments tertiaires – HQE®
Contract signed in Q3 2014
Total value of reservations booked in Q3 2014 around €300m,
of which about half has already been recorded
in Q3 2014 revenue for the sale of the land
Project scheduled to be delivered in summer 2017
47
Flexible cost structure and ongoing adaptation plans
Visibility in the order book at Bouygues Construction allowing time to adapt
Highly variable cost structure in the construction businesses
A cost structure driven by projects
Flexibility in personnel costs resulting from subcontracting, temporary workers or ability to hire
personnel for the duration of a contract
Ex: about 63% variable costs in the Colas French roads activity
Ex: about 80% variable costs in the Bouygues Construction French building activity
Ongoing adjustment measures or cost-cutting plans in each business
Notably, Colas presented a redundancy plan at the Dunkerque refinery with the objective to return to
breakeven in 2016
Closing of the “base oil activity” to ensure the future of the bitumen production
48
49
Attracting Mobile customers to value-added plans
50(a) Customers with offer including data consumption higher or equal to 500MB/month
(b) Customers having used the 4G network in the last 3 months (Arcep definition)
59%61%
64%68%
72% 73%77%
End Q1 13 End Q2 13 End Q3 13 End Q4 13 End Q1 14 End Q2 14 End Q3 14
% of retail customers subscribing to a value-added plana
Growth in value-added plans
Close to 80% of retail plan customers on a value-added plana at end-September 2014
22% of the mobile subscriber base were active 4G usersb at end-September 2014, i.e. 2.5 million 4G
customersb (700,000 new 4G customers in Q3 2014)
Nearly 60% of B&YOU customers were on a 4G plan ≥ 3GB at end-September 2014
1,000
1,400
1,8002,500
End Q4 13 End Q1 14 End Q2 14 End Q3 14
Active 4Gb subscribers ('000) and share
of the total mobile subscriber base
9%13%
16%
22%
4G traction in the business segment
51
Bouygues Telecom business mobile subscriber base
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14
+ 10 %
Launch of
4G Business mobile subscriber
base up 10% since the launch
of 4G
New major business contract signed
with La Poste
Postmen will be equipped with connected smartphones
allowing the development of new services
Increase in data usage thanks to 4G
52
Average data use of a Bouygues Telecom customer
0
1
2
3
Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14
All customers
Active 4G customers
GB/customer Launch of
4G
Average data use of a Bouygues Telecom customer
800 MB per month for all customers: x2.5 since the launch of 4G
2 GB per month for 4G active users
74% of the retail subscriptionsa with a 4G handset: x2 since the launch of 4G
(a) Sales with subsidized handsets
33%
61% 64% 67%74%
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Share of 4G handset in the retail plan salesa
Continued momentum in the fixed activity
53
4510
4072
100 102 104
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Net growth of the fixed broadband business (‘000)a
Confirmed success of the new fixed broadband offers
Bouygues Telecom No. 1 in terms of net addsb for the fourth quarter in a row
Net growth of 306,000 customers in the 9 months of 2014
Bouygues Telecom directly-owned fixed network covers about 50% of the French households
Share of Bouygues Telecom fixed broadband
customers on directly-owned network
(a) Includes broadband and very-high-speed subscriptions (b) Company estimate for Q3 14 and Arcep figures for previous quarters
June 2014 September 2014 End 2014 (e)
45%50%
55%
Launch of Bbox Miami
Commercial launch: beginning 2015
On-going Friendly User Test (FUT) with 300
customers
Bouygues Telecom maintains full control
over the user interface designed by its
partner iFeelSmart company
Bbox Miami: bringing TV and internet content together
54
5% The Miami Set Top Box awarded « Most Innovative Service
Provider » at the 2014 Broadband World Foruma55%
iFeelSmart interface for Bbox Miami
(a) The Broadband World Forum is the world’s largest broadband event
Accelerating transformation while reasserting positioning (1/2)
55
A positioning focused on customer experience
The objective : choose Bouygues Telecom for the best offer and stay for the best experience
A set of new simplified offers and a “golden rule” that existing customers will always benefit from
latest offer enhancements
Offering the best experience to access the digital world (best 4G network, innovative fixed services)
Enhanced customer service for all (boutique, web, phone)
The means
Simplification of the number of tariff plans managed in IT systems (from 650 to less than 40)
Migration of existing customer base
The benefits for Bouygues Telecom
Churn reduction and opportunity for value increase thanks to data consumption
Dramatic cost reduction allows success in delivering recurring cost saving
Accelerating transformation while reasserting positioning (2/2)
56
Executing the plan to generate savings of €300m by 2016 vs. 2013, around half of which
will occur in 2015
Simplification of organisation and processes
On-going redundancy plan of 1,404 jobs
210 departures at end-September 2014
Confident that a large majority of departures would be voluntary departures vs forced redundancies
Entering the operational phase of the network sharing agreement with SFR
An opportunity for improved network quality and coverage as well as additional cost savings
Looking ahead, the complete transformation of Bouygues Telecom initiated in 2012 will
be almost complete by mid 2015
57
GROUP KEY FIGURES
BUSINESS SEGMENTS
FINANCIAL STATEMENTS
ANNEXES
Condensed consolidated income statement (1/2)
€ million9M 2013
restated9M 2014 Change
Sales 24,088 24,223 +1%
Current operating profit 878 554 -€324m
Other operating income and expenses 0 395a +€395m
Operating profit 878 949 +€71m
Cost of net debt
o/w financial income
o/w financial expenses
(222)
40
(262)
(238)
40
(278)
-€16m
=
-€16m
Other financial income and expenses (16) 16 +€32m
58(a) Including non-current operating income of €81m related to Bouygues Telecom and a capital gain of €314m on the sale of Eurosport International (31%)
and the remeasurement of the residual interest (49%)
Condensed consolidated income statement (2/2)
€ million9M 2013
restated9M 2014 Change
Income tax expense (242) (185) +€57m
Investments in joint ventures and associateso/w share of profits
o/w net capital gain on Cofiroute disposal
212212
-
407154
253a
+€195m-€58m
+€253m
Net profit 610 949 +€339m
Net profit attributable to non-controlling interestsb (62) (221) -€159m
Net profit attributable to the Group 548 728 +€180m
59(a) Net capital gain at 100% (b) Formerly 'Minority interests'
Change in net cash position in Q3 2014 and 9M 2014 (1/2)
(a) Including scope effects
(b) Sale of Colas' 16.67% stake in Cofiroute and sale of 31% of Eurosport International
(c) Exercise of stock options (+€14m) and other capital transactions
(d) Exercise of stock options (+€1m)
(e) Share issue and buybacks (-€74m), capitalised interest related to 4G frequencies (-€21m)
(f) Capitalised interest related to 4G frequencies (-€12m)
-11-198
-1,600+1,060
+263+10 -79+1
Net cash at
31/12/2013
€m
2013
restated(4,176) -35 -591 -860 -95e (5,757) -57 +227 -12f (5,599)
(4,435)
Net cash at
30/09/2014
OperationExceptional
disposalsb
(4,989)
Acquisitions/
disposalsa
Dividends
paid
Otherc
(5,174)
Operation Otherd
Net cash at
30/06/2014
60
Acquisitions/
disposalsa
Change in net cash position in Q3 2014 (2/2)
+608
-323-22
Net cash flowa€m
+263
Net capital expenditure
Change in operating WCRb
and other
Q3 2013 restated +773 -268c -278 +227c
Breakdown of operations
61
(a) Net cash flow = cash flow - cost of net debt - income tax expense
(b) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets
(c) Excluding capitalised interest on 4G frequencies for €12m
62
GROUP KEY FIGURES
BUSINESS SEGMENTS
FINANCIAL STATEMENTS
ANNEXES
Key figures at Bouygues Construction
63
(a) Definition: contracts are booked as order intakes at the date they take effect
Order intake(a) Order book (€m)
€m
International France
France52%
Asia and Middle East
19%
Europe (excl.
France)19%
Americas6%
Africa4%At end-September
2014
(b) Up 6% like-for-like and at constant exchange rates
ANNEX
€ million 9M 2013 restated 9M 2014 Change
Sales 7,992 8,492 +6%b
o/w France 4,396 4,362 -1%o/w international 3,596 4,130 +15%
Current operating profitCurrent operating margin
3113.9%
2442.9%
-€67m-1.0 pt
Net profit attributable to the Group 204 184 -€20m
5,027 5,6963,859 4,076
3,2863,284
4,752 3,972
8,3138,980 8,611
8,048
9M 2011 9M 2012 9M 2013 9M 2014
For execution in Y
2,452 2,581 2,856 2,844
6,541 7,063 7,505 7,183
3,8674,753 4,642 4,968
2,402
2,654 2,708 2,631
End-Sept.2011
End-Sept.2012
End-Sept.2013
End Sept.2014
Long-term order book (beyond Y+5)
For execution from Y+2 to Y+5
15,262
For execution in Y+1
17,051 17,626=
17,711
-7%
-16%
+6%
1,040 1,090
358 210 420
1,3981,300
1,412
9M 2012 9M 2013 9M 2014
9922,111
2,460 2,381 2,087 1,778
75170 498
528366
2,186
2,6302,879
2,615
2,144
End-Sept2010
End-Sept2011
End-Sept2012
End-Sept2013
End-Sept2014
Order book
Key figures at Bouygues Immobilier
64
(a) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)
Reservations(a)
Commercial property
Residential property
€m
+9%
YoY
€ million 9M 2013 restated 9M 2014 Change
Sales 1,710 1,942 +14%b
o/w residential 1,445 1,484 +3%
o/w commercial 265 458 x2
Current operating profitCurrent operating margin
1237.2%
1246.4%
+€1m-0.8 pts
Net profit attributable to the Group 70 74 +€4m
(b) Up 12% like-for-like and at constant exchange rates
ANNEX
-18%
YoY
Key figures at Colas
65
Mainland FranceInternational and French overseas territories
3,994 3,615 3,941 3,515 3,523 3,226 3,277
3,537 4,449 3,629 4,7273,571 4,445
3,811
7,5318,064
7,570
8,242
7,0947,671
7,088
End-March2013
End-March2014
End-June2013
End-June2014
End-Sept2013
End-Sept2014
End-Dec2013
End-Dec2014
+8%
+24%
-8%
Order book (€m)
ANNEX
€ million9M 2013
restated 9M 2014 Change
Sales 9,511 9,184 -3%a
o/w France 5,509 4,980 -10%
o/w international 4,002 4,204 +5%
Current operating profit
Current operating margin
201
2.1%
173
1.9%
-€28m
-0.2 pts
Net profit att. to the Group 187 515b +€328m
(a) Down 3% like-for-like and at constant exchange rates
(b) Including a net capital gain of €385m on the sale of the stake in Cofiroute
Key figures at TF1
€ million 9M 2013 restated 9M 2014 Change
Sales
o/w group advertising
1,739
1,158
1,613
1,123
-7%b
-3%
Current operating profit
Current operating margin
104
6.0%
58
3.6%
-€46m
-2.4 pts
Operating profit 104 387c +€283m
Net profit attributable to the Group 62 343 +€281m
(b) Up 2% like-for-like and at constant exchange rates
(c ) Including a capital gain of €329m on the sale of Eurosport International (31%) and the remeasurement of the remaining interest (49%) 66
22.7
22.9
3.5
3.2
2.1
1.8
0.5
0.9
9M 2013
9M 2014TF1
TMC
NT1
HD1
Group audience share(a)
(a) Individuals aged 4 and over – Source: Médiamétrie
ANNEX
28.8
In %
28.8
Key figures at Bouygues Telecom
67
ANNEX
(a) Including non-current income of €200m related notably to litigation settlements
(b) Including non-current charges of €115m: €129m for litigation settlements and other minus €244m in provisions for adaptation costs and other
(c) Excluding capitalised interest related to 4G frequencies for €13m in 9m 2013 (o/w €4m in Q1 2013, €4m in Q2 2013 and €5 in Q3 2013)
€m Q1 2014Change vs
Q1 2013Q2 2014
Change vs
Q2 2013Q3 2014
Change vs
Q3 20139m 2014
Change vs
9m 2013
SalesSales from network
1,085966
-5%-9%
1,092974
-4%-7%
1,117975
-4%-8%
3,2942,915
-5%-8%
EBITDAEBITDA/Sales from network
16316.9%
-€49m-3.0 pts
16917.4%
-€88m-7.1 pts
20621.1%
-€52m-3.3 pts
53818.5%
-€189m-4.4 pts
Current operating
profit/(loss)(19) -€47m (22) -€85m 15 -€54m (26) -€186m
Operating profit/(loss) 181a +€153m (137)b -€200m 16 -€53m 60 -€100m
Net profit/(loss)
attributable to the Group110 +€94m (86) -€125m 7 -€33m 31 -€64m
EBITDA minus CAPEX (17) -€20mc 12 -€47mc 49 -€55mc 44 -€122mc
1,334
1,509
1,634
1,750
1,8761,966
2,044
End-March2013
End-June2013
End-Sept2013
End-Dec2013
End-March2014
End-June2014
End-Sept2014
B&YOU mobile subscriber base ('000)
Fixed and mobile business and financial performance
68(a) Plan subscribers: total customer base excluding prepaid customers according to the Arcep definition (b) Includes broadband and very-high-speed subscriptions
(c) Arcep definition: subscriptions with peak downstream speed higher or equal to 30 Mbit/s (d) Sales from network excluding the ideo discount
'000End-Dec
2013
End-March
2014
End-June
2014
End-Sept
2014
Mobile customer base 11,143 11,064 11,024 11,048
o/w plan subscribersa
o/w prepaid customers
9,910
1,233
9,940
1,124
9,984
1,040
10,031
1,017
Fixed broadband customer baseb
o/w very-high-speedc
2,013
363
2,113
378
2,215
368
2,319
368
Total subscriber base 13,156 13,177 13,239 13,367
ANNEX
Sales from the fixed broadband networkd (€m)
222 223197
219203 207 213
Q1 13 Q1 14 Q2 13 Q2 14 Q3 13 Q3 14 Q4 13
+9%+11% +8%
Marketing costse Q3 2013 Q3 2014
Marketing costs (€m) 114 107
Marketing costs/sales from network 10.8% 11.0%
Key indicators at Bouygues Telecom
(a) Includes broadband and very-high-speed broadband subscriptions according to theArcep definition
(b) Rolling 12-month period, stripping out the ideo discount, and excluding machine-to-machine SIM cards for mobile ARPU
(c) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machine SIM cards
(d) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machineSIM cards and excluding internet SIM cards
(e) Mobile and fixed subscriber acquisition and retention costs
Plan Prepaid Total subscriber base
Q2 2014 Q3 2014 Q2 2014 Q3 2014 Q2 2014 Q3 2014
Subscribers
SIM cards ('000) 9,984 10,031 1,040 1,017 11,024 11,048
SIM cards (% mix) 90.6% 90.8% 9.4% 9.2%
Fixed broadband subscriber basea ('000) 2,215 2,319
Unit data – mobile subscribers
ARPU (€/year/subscriber)b 349 339 109 108 320 313
Data usage (MB/month/subscriber)c 474 587
Text usage (texts/month/subscriber)d 379 372 118 122 347 344
Voice usage (min/month/subscriber)d 504 515 171 176 463 476
Unit data – fixed subscribers
ARPU (€/year/subscriber)b 396 385
69
ANNEX
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
9M 2014 RESULTS Slide 33
CONCLUSION Slide 71
APPENDIX Slide 73
70
Conclusion
71
Looking ahead, the Bouygues group continues to demonstrate its responsiveness
The construction businesses can rely on international momentum, differentiated
knowhow and strong adaptation capabilities to cope with the challenging French
environment
The strategy of Bouygues Telecom is starting to bear fruit with the first signs of
tangible positive results
The financial structure remains robust and will be strengthened in 2015 by the
exceptional cash return from Alstom
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
9M 2014 RESULTS Slide 33
CONCLUSION Slide 71
APPENDIX Slide 73
72
Condensed consolidated income statement (1/2)
73
€m 2012 2013 Change
Sales 33,547 33,121 -1%
Current operating profit 1,286 1,344 +5%
Other operating income and expenses (166)1 (91)2 nm
Operating profit 1,120 1,253 +12%
Cost of net debt
o/w financial income
o/w financial expenses
(290)
62
(352)
(309)
55
(364)
+7%
-11%
+3%
Other financial income and expenses 11 (26) nm
(1) Including €200m of non-current charges at Bouygues Telecom and TF1 and €34m of capital gains on asset disposals at Bouygues Telecom
(2) Including €80m at Bouygues Telecom and €11m at Colas
Annex – as published
Condensed consolidated income statement (2/2)
74
€m 2012 2013 Change
Income tax expense (330) (367) +11%
Associates 217(1) 205(2) -6%
Net profit from continuing operations 728 756 +4%
Net profit attributable to non-controlling interests3 (95) (109) +15%
Net profit attributable to the Group
before the write-down of Alstom633 647 +2%
Write-down of Alstom - (1,404) nm
Net profit/(loss) attributable to the Group 633 (757) nm
(1) Including non-current charges of €53m related to the dilution loss further to the capital increase at Alstom
(2) Before the write-down of Alstom for €1,404m (3) Formerly called "minority interests"
Annex – as published
Sales by business area
75
€m 2012 2013 Change
Bouygues Construction 10,640 11,111 +4%
Bouygues Immobilier 2,396 2,510 +5%
Colas 13,036 13,049 =
Sub-total of construction businesses1 25,753 26,275 +2%
TF1 2,621 2,470 -6%
Bouygues Telecom 5,226 4,664 -11%
Holding company and other 123 119 nm
Intra-Group elimination (495) (578) nm
TOTAL
o/w France
o/w international
33,547
22,308
11,239
33,345
22,118
11,227
-1%
-1%
=
(1) Total of the sales contributions (after eliminations within the construction businesses)
Annex – as published
Contribution of business areas to Group EBITDA
76
€m 2012 2013 Change
Bouygues Construction 614 668 +€54m
Bouygues Immobilier 186 191 +€5m
Colas 832 823 -€9m
TF1 318 300 -€18m
Bouygues Telecom 908 880 -€28m
Holding company and other (36) (27) +€9m
TOTAL 2,822 2,835 +€13m
EBITDA = current operating profit + net depreciation and amortisation expense + net provisions and impairment losses - reversals of
unutilised provisions and impairment losses
Annex – as published
Contribution of business areas to Group current operating profit
€m 2012 2013 Change
Bouygues Construction 364 435 +€71m
Bouygues Immobilier 179 178 -€1m
Colas 406 417 +€11m
Sub-total of construction businesses 949 1,030 +€81m
TF1 258 223 -€35m
Bouygues Telecom 122 125 +€3m
Holding company and other (43) (34) +€9m
TOTAL 1,286 1,344 +€58m77
Annex – as published
Contribution of business areas to Group net profit/(loss)
€m 2012 2013 Change
Bouygues Construction 267 277 +€10m
Bouygues Immobilier 107 101 -€6m
Colas 291 301 +€10m
Sub-total of construction businesses 665 679 +€14m
TF1 59 60 +€1m
Bouygues Telecom (14) 11 +€25m
Alstom 240 168 -€72m
Holding company and other (317)1 (271)2 +€46m
Net profit attributable to the Group
before the write-down of Alstom633 647 +€14m
Write-down of Alstom - (1,404) nm
Net profit/(loss) attributable to the Group 633 (757) nm
Attributable to the Group
78(1) Including non-current charges of €53m related to the dilution loss further to the capital increase at Alstom (2) Before the write-down of Alstom
Annex – as published
Condensed consolidated balance sheet
79
€mEnd-Dec
2012
End-Dec
2013Change
Non-current assets
Current assets
Held-for-sale assets and operations
TOTAL ASSETS
20,170
16,584
-
36,754
17,684
15,469
1,151
34,304
-€2,486m
-€1,115m
+€1,151m
-€2,450m
Shareholders' equity
Non-current liabilities
Current liabilities
Liabilities related to held-for-sale operations
TOTAL LIABILITIES
10,078
9,845
16,831
-
36,754
8,684
8,959
16,495
166
34,304
-€1,394m
-€886m
-€336m
+€166m
-€2,450m
Net debt 4,172 4,427 +€255m
(1) Including impact of the write-down of Alstom (2) Relating to Eurosport International and Cofiroute (3) Relating to Eurosport International
(1)
(1)
(2)
(3)
Annex – as published
Change in net cash position in 2013 (1/2)
(1) Including scope effects
(2) Capitalised interest related to 4G frequencies
(3) Disposal in 2012 of 20% stake in Eurosport and the theme channels at TF1 as well as divestment of tower business and data centres at Bouygues Telecom
(4) Reclassification of Eurosport International to held-for-sale operations 80
-103-591
-71
+610 -33(2) -67
Acquisitions/
disposals1
Net cash at
31/12/2012 €m
2012 (3,862) -123 -608 +122 +599 -726 +426 (4,172) (4,172)
(4,172) (4,427)(3 872)
Net cash at
31/12/2013
4G frequenciesDividends
paidIssue &
buyback of
Bouygues
shares
Operation
Exceptional
disposals3
Reclassification
of Eurosport
International4
(4,360)
Annex – as published
(2)
Net cash flow1
+2,066
Change in net cash position in 2013 (2/2)
81
€m
+610(2)
Net capital
expenditure
-1,245(2)
Change in operating
WCR3 and other
-211
Breakdown of operation
(1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Excluding capitalised interest related to 4G frequencies for €33m at Group level
(3) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets
(4) Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band (acquisition cost and capitalised interest for €726m) and asset
disposals for €207m
2012 +2,157 -1,433(4) -125 +599(4)
Annex – as published
Contribution of business areas to Group net cash flow
82
€m 2012 2013 Change
Bouygues Construction 486 488 +€2m
Bouygues Immobilier 120 120 =
Colas 723 678 -€45m
TF1 206 188 -€18m
Bouygues Telecom 780 763 -€17m
Holding company and other (158) (171) -€13m
TOTAL 2,157 2,066 -€91m
Net cash flow = cash flow - cost of net debt - income tax expense
Annex – as published
Contribution of business areas to Group net capital expenditure
83
€m 2012 2013 Change
Bouygues Construction 159 159 =
Bouygues Immobilier 13 10 -€3m
Colas 345 296 -€49m
TF1 45 39 -€6m
Bouygues Telecom 869(1) 739(2) -€130m
Holding company and other 2(1) 2(2) =
Total excluding exceptional items 1,433(1) 1,245(2) -€188m
Exceptional items 519 33 -€486m
TOTAL 1,952 1,278 -€674m
(1) Excluding exceptional items related to Bouygues Telecom: acquisition cost and capitalised interest related to 4G frequencies for €726m at Group level (o/w €696m at Bouygues Telecom level and €30m at Holding company level) and asset disposals for €207m
(2) Excluding capitalised interest related to 4G frequencies for €33m at Group level (o/w €13m at Bouygues Telecom level and €20m at Holding company level)
Annex – as published
Contribution of business areas to Group free cash flow
84
€m 2012 2013 Change
Bouygues Construction 327 329 +€2m
Bouygues Immobilier 107 110 +€3m
Colas 378 382 +€4m
Sub-total of construction businesses 812 821 +€9m
TF1 161 149 -€12m
Bouygues Telecom (89)1 24(2) +€113m
Holding company and other (160)1 (173)2 -€13m
TOTAL 724(1) 821(2) +€97m
Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR
(1) Excluding exceptional items related to Bouygues Telecom: acquisition cost and capitalised interest related to 4G frequencies for €726m at Group level (o/w €696m at Bouygues Telecom level and €30m at Holding company level) and asset disposals for €207m
(2) Excluding capitalised interest related to 4G frequencies for €33m at Group level (o/w €13m at Bouygues Telecom level and €20m at holding company level)
Annex – as published
Net cash by business area
85
€mEnd-Dec
2012
End-Dec
2013Change
Bouygues Construction 3,093 3,006 -€87m
Bouygues Immobilier 358 271 -€87m
Colas (170) 39 +€209m
TF1 237 188(1) -€49m
Bouygues Telecom (650) (783) -€133m
Holding company and other (7,040) (7,148) -€108m
TOTAL (4,172) (4,427) -€255m
(1) After reclassification of net cash for €67m at Eurosport International to held-for-sale operations
Annex – as published
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Undrawn
MLT
facilities
€5.3bn
Cash
€2.8bn
Available cash: €8.1bn
Financing
Debt maturity schedule at end-June 2014
€m
86
Impact of IFRS 11 on the Group's 2013 financial statements
87
€m2013
reported
Restatement2013
restatedBouygues
Construction Colas TF1
Sales 33,345 (10) (204) (10) 33,121
Current operating profit 1,344 2 (27) - 1,319
Operating profit 1,253 2 (27) - 1,228
Cost of net debt
Other financial income and expenses
Income tax expense
Associates1
(309)
(26)
(367)
205
-
-
-
(2)
5
-
7
14
-
-
-
-
(304)
(26)
(360)
217
Net profit from continuing operations1 756 - (1) - 755
Net profit attributable to non-controlling interests (109) - 1 - (108)
Net profit attributable to the Group
before the write-down of Alstom1 647 - - - 647
Annex
(1) Before the write-down of Alstom for €1,404m
Impacts of exceptional items on net profit attributable to the Group
88
Annex
€m 9M 2013 restated 9M 2014 Change
Net profit attributable to the Group 548 728 +€180m
Non-current operating income of €81m related to Bouygues Telecom, net of taxes (45) -€45m
Net capital gain on the sale by Colas of its stake in Cofiroute
Net capital gain on the sale of Eurosport International (31%) and the
remeasurement of the residual interest (49%)
(240)
(115)
-€240m
-€115m
Cofiroute contribution to 9M 2013 net profit 41 +€41m
Net profit attributable to the Group before exceptional items 548 369 -€179m
€m 9M 2013 restated 9M 2014 Change
Net profit attributable to the Group of the construction businesses 455 755 +€300m
Net capital gain on the sale by Colas of its stake in Cofiroute
Cofiroute contribution to 9M 2013 net profit
(372)
41
-€372m
+€41m
Net profit attributable to the Group of the construction businesses
before exceptional items455 424 -€31m
Impacts of the sale of the stake in Cofiroute on the income statement
89
€m
9M 2014
Colas
income
statement
Colas
contributiona
Bouygues
income
statement
Net capital gain on disposal 385 385 385
- Goodwill at holding company level 0 0 -132
Net capital gain on disposal after goodwill 385
0
385 253
-13- Net capital gain attributable to non-controlling interestsb (3.4%) -13
Net capital gain attributable to the Group 385 372 240
Annex
(a) Colas contribution to net profit attributable to the Group
(b) Calculated on net capital gain (at 100%) before goodwill
Impacts of the sale of the 31% stake in Eurosport International on the income statement
90
€m
9M 2014
TF1
income
statement
TF1
contributiona
Bouygues
income
statement
Net capital gain on disposal and remeasurementb before tax 329 329 329
- Income tax expense
Net capital gain on disposal and remeasurementb after tax
-30
299
-30
299
-30
299
- Goodwill at holding company level 0 0 -15
Net capital gain on disposal and remeasurementb after goodwill 299
0
299 284
-169- Net capital gain attributable to non-controlling interestsc (56.5%) -169
Net capital gain and remeasurementb attributable to the Group 299 130 115
Annex
(a) TF1 contribution to net profit attributable to the Group
(b) Net capital gain on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%)
(c) Calculated on net capital gain (at 100%) before goodwill
Figures as of 31 December 2013
Group organisation chart
Roadworks Building / Civil Engineering Property
96.6 % 100 % 100 %
CONSTRUCTION
43.5 %
TELECOMS
90.5 %
MEDIA
(1986) (1952) (1956)
(1994) (1987)
29.3% stakePOWER - TRANSPORT
(2006)
91
Annex
A diversified portfolio
Entering new businesses under good conditions
Growing market
Regulatory or technological changes
Favorable financial conditions
Ability to bring managerial skills
Disposing of businesses under the following circumstances
Lack of understanding and control of the market and its opportunities
Structural reduction of free cash-flow generation
Better opportunities for use of proceeds
Excessive Capex requirement
Acquisition of Colas / Screg in 1985
Acquisition of TF1 in 1987
Launch of Bouygues Telecom in 1994
Investment in Alstom in 2006
Maison Bouygues in 1990
Bouygues Offshore in 2002
Saur in 2005
TPS in 200692
Annex
19%
15%
66%
Specialty activites
Building materials
Roadworks
53%
20%
16%
7%4%
France
Europe (excl. France)
Asia and Middle east
Americas
Africa
96%
4%
France
Europe
85%
15%
Residential
Commercial
19%
15%57%
9% North America
Europe (excl. France)
France
Others
44%
42%
14% Building and Civil Works France
Building and Civil WorksInternational
Electrical Contracting
CONSTRUCTION BUSINESSES: 2013 sales breakdown
93
Annex – as published
20 years of know-how in concession and PPP/PFI contracts
A28 motorway concession
A41 motorway concession
Stade de France concession
Reims tramway concession
Cofiroute
Libourne street lighting PPP
United Kingdom
18 health, education, social housing and street lighting PFI contracts
(incl. Home Office, Broomfield hospital, social housing in Brent,
Hertfordshire campus etc.)
New Tyne Tunnel concession
Portsmouth road maintenance PFI
MAC-type road and railway maintenance contracts
Croatia
Istria motorway concession
phases 1 and 2
Zagreb Airport concession
South Africa Gautrain rail link concession
Jamaica Motorway concession:
highway 2000, 1A
South Korea
Machang Bay Bridge
concession
Pusan port concession
Hong Kong
AsiaWorld-Expo concession
and Marriott hotel
United States Miami port tunnel PPP
Canada Hospital PPP in British Columbia
Royal Canadian Mounted Police headquarters PPP
Iqaluit International Airport PPP
Long-term road maintenance contracts
Saudi Arabia Equestrian Club PPP
Cyprus
Lanarka and Pafos
airport concession
Singapore
Sports Hub PPP
Germany
Rostock tunnel concessionHungary M5 motorway concession
M6-M60 motorway PPP
Sport facilities PPPs (Stade Vélodrome in Marseille, Velodrom in Saint-Quentin en Yvelines)
Hospital PPPs (Bourgoin-Jailleu, Caen etc.)
Prison PPPs (Réau, Annœullin, Nantes, etc.)
PPPs in the education sector (Paris 4, Versailles Saint-Quentin universities, 5 secondary schools in Loiret)
Territorial planning PPPs (Paris and Valenciennes street lighting, broadband network in Vaucluse, etc.)
French Ministry of Defence, Paris
Paris Law courts complex
Nîmes and Montpellier railway bypass
Municipal authority complex in Bordeaux
L2 bypass in Marseille
Bouygues Construction
Colas
Australia
Sydney metro
94
Ivory Coast
Highway concession
Annex
25 February 2015 Full year 2014 sales and earnings 7.30am
23 April 2015 Annual General Meeting 3.30pm
Calendar
95
Annex
96BUILDING THE FUTURE IS OUR GREATEST ADVENTURE
96
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