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1Bouygues Group presentation – September 2014
S t b 2014S t b 2014
Bouygues Group presentationBouygues Group presentation1
September 2014September 2014
1BUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTURE
This presentation contains forward-looking information and statements about the Bouygues group and its businesses. Forward-lookingstatements 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: financialprojections, forecasts and estimates and their underlying assumptions; statements regarding plans, objectives and expectations withrespect to future operations, products and services; and statements regarding future performance of the Group. Although the Group’srespect to future operations, products and services; and statements regarding future performance of the Group. Although the Group ssenior management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautionedthat forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict andgenerally beyond the control of the Group, that could cause actual results and developments to differ materially from those expressed in, orimplied or projected by, the forward-looking information and statements. Investors are cautioned that forward-looking statements are notguarantees of future performance and undue reliance should not be placed on such statements. The following factors, among others setout in the Group’s Registration Document (Document de Référence) under the section headed Risk factors (Facteurs de risques), couldcause actual results to differ materially from projections: unfavourable developments affecting the French and internationaltelecommunications, audiovisual, construction and property markets; the costs of complying with environmental, health and safetyregulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets;
September 2014
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 fromcurrent or future litigation. Except to the extent required by applicable law, the Bouygues group makes no undertaking to update or revisethe projections, forecasts and other forward-looking statements contained in this presentation.
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2Bouygues Group presentation – September 2014
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 863
Profile
A diversified industrial group
5 businesses with different cycles focusing on three sectors: construction, telecoms and media
2013 contribution1 by business area
26.12.4
4.6
Sales2 at €33.1bn
1,005
223 125
Current operating profit2 at €1,319 m
819
149 24(3)Free cash flow2 at €818m3
Construction businesses Bouygues TelecomTF1
Key figures1 in 2013 €647m4 net profit 128,067 employees
4
(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
3Bouygues Group presentation – September 2014
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 growthp g g g
A sound financial profile
5
Shareholder structure at 30 June 2014
A stable share ownership structure
Voting rights CapitalForeign
SCDM
Employees
Other French
20.9%
24.1%
16.8%
38.2%
shareholdersSCDM
Employees
Other Frenchshareholders
Foreign shareholders 27.8%
30.0%12.9%
29.3%
Shareholders’ structure allowing long-term focus 6
shareholders
At 31 June 2014: 335,727,874 shares and 484,648,071 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues
4Bouygues Group presentation – September 2014
A strong and distinctive corporate culture
Construction is a “good management school”
Project management skills and knowhow in complex projects j g p p j
Masan Bay bridge, South Korea Stade de France Bouygues Telecom 3G network
Managers have experienced previous crises
Strong mobility within the Group and of top managers
7Pragmatic – Cautious – Opportunistic – Entrepreneurial
Long-term growth opportunities
Growing long-term infrastructure needs in both developed and emerging countries Drivers: demographic growth, urbanization, saturated and
aging infrastructures…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
5Bouygues Group presentation – September 2014
A solid operational track record
2001 2013(1)
+ 4 %
CAGR
€20.5bn
€876m
€344m
+ 4 %
+ 3 %
+ 5 %
€33.1bn
€1,319m
€647m3
Sales
Operating profit
Net profit2
9
€344m
(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
€647m3
€1.60
Net profit2
DPS
A healthy financial profile
Low gearing at 51%1
Evenly spread repayment schedule
All figures are at end December 2013
Debt under control
6%
Ability to control capex
Capex-to-sales ratio2Available Cash = €8.7bn
No significant off-balance sheet commitment
High level of liquidity
S t i bl h fl
0%
2%
4%
10
Free cash flow2 = €0.8bnAverage Free cash flow since 2005 at €1bn
Cash remittance to the holding
Sustainable cash-flowgeneration
(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
6Bouygues Group presentation – September 2014
0.90
1.21.5 1.6 1.6 1.6 1.6 1.6
1
Dividend per share
0.36
0.50.75
0.90
1Dividend yield based on closing price
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Dividend yield1: 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
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 8612
7Bouygues Group presentation – September 2014
Construction businesses
13
A world leader: n°7 “top international contractor” according to ENR ranking1
2013 key figures
Asia & Middl E t
Africa6%
CONSTRUCTION BUSINESSES: profile
Sales2: €26.1bn3Sales4 by region
France59%Europe
(excl. France)
16%
Americas11%
Middle East8%
6%
11.12.5
12.8
Buildings & civil works Real estate Roads
Free cash flow2: €819mOperating profit2 : €1,005m
437178
390
Building & civil works Real estate Roads
331110
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)
Free cash flow2: €819mOperating profit : €1,005m
14
8Bouygues Group presentation – September 2014
Building & civil works
Bouygues Construction is a world leading full service contractor in building & civil works, electricalcontracting and maintenance
CONSTRUCTION BUSINESSES: profile
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 inid ti l d i l t d d i tl i Fresidential 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...)
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
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9Bouygues Group presentation – September 2014
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 offersy p g
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 French Ministry of Defense, Balard, 2012-2014
Sports Hub, Singapore, 2010-2014
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
Green office®, Meudon
17
CONSTRUCTION BUSINESSES: high value-added solutions
L2 bypass PPP in New Coastal Road on R i I l d F
Some examples in transport: major road construction projects
Marseille, France Reunion Island, France
The largest infrastructure project awarded in France in 2013
30-year PPP
Construction of the longest off-shore viaduct in France (5.4 km)
Contract worth €218m for Bouygues C t ti
18
30 yea
Works valued at €340m for Bouygues Construction and Colas
Completion: 2017
Construction Construction of four sections of an elevated
dual three-lane road
Contract worth €318m for Colas
Completion: 2018
10Bouygues Group presentation – September 2014
Some examples in transport: airports
CONSTRUCTION BUSINESSES: high value-added solutions
Iqaluit International Airport, Canada
Financing design and
Lyon-Saint Exupéry Airport, France
Design and construction of a
Zagreb Airport, Croatia
Financing, design and
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Financing, design and construction of a new terminal
Works valued at €160m for Bouygues Construction and Colas
Handover scheduled for end-2017
gnew terminal
Works valued at €142m Handover of the first phase
in 2016 Passenger capacity: close
to 10 million
g, gconstruction of a new terminal
Works valued at €243m Handover scheduled for
end-2016 Passenger capacity: 5 million
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
Rabat-Salé tramway, Morocco
Order book at Colas Rail
Share of more than 1 year
€bn+14% YoY(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 0.3 0.3 0.4 0.5
0.30.6
0.70.8
0.6
0.91.1
1.3
End-2010 End-2011 End-2012 End-2013
yShare of less than 1 year
20
YoY
11Bouygues Group presentation – September 2014
CONSTRUCTION BUSINESSES: main international contracts won in 2013
Canada
Iqaluit Airport (€160m)Road maintenance (€35m)
SwitzerlandErlenmatt eco-neighbourhood in Basel (€130m)Im Lenz eco-neighbourhood in Lenzburg (€110m)
UKUniversity campus in Hertfordshire (€140m)Property complex in Lewisham (€70m)
Group share – rounded up/down
50% of the order books at Bouygues Construction and Colas is to be executed in international markets
Road maintenance (€35m)
USPrivate property development (€200m)1
Airport runway (€20m) Cuba Luxury hotel complex (€60m)
Morocco Luxury residence (€40m)Tangier-Kenitra high-speed Thailand
Ph t lt i l l t (€40 )
Hong KongSubsea road tunnel (€1.15bn)Macao Luxury hotel complex (€360m)1
Road maintenance in London (€205m)
CroatiaZagreb Airport (€240m)
HungaryM85 motorway (€90m)
Slovakia R2 motorway (€80m)
Operations in 80 countries
Countries where Bouygues Construction and Colas generated sales in 2013
21
Trinidad and Tobago National oncology centre (€40m)
rail line (€125m) TunisiaTunis rapid rail network (€85m)
ChadRoad (€40m) Turkmenistan
Theatre and concert centre (€340m)International university (€90m)
SingaporeBangkok condominium tower (€100m)Bishan condominium tower (€100m)
Photovoltaic solar power plants (€40m)MyanmarResidential complex (€70m)
(1) Partial order intake in 2013
ChileSantiago metro in Chile (€70m)
CONSTRUCTION BUSINESSES: focus on long-term sustainability
Order books (€m)
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 adaptOrder books (€m)
2,2803,051
2,957 2,6106,1416,472
6,704 7,08822,57524,806
26,808 27,530
Bouygues Construction Bouygues Immobilier Colas
+3%
-12%
+6%
+22%
2013 orders at Bouygues Construction and Colas to be executed beyondone 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
22
14,154 15,283 17,147 17,832
,
End-2010 End-2011 End-2012 End-2013
+4%
Focus on controlling operating and financial risks in orderto ensure long-term performance
Commercial selectivity (preference is given to margin)
Strict control procedures and cautious guidelines
12Bouygues Group presentation – September 2014
1 2362 7%3,7%
4,7%5,1% 5,3% 5,0%
4,6%
3,6%4,2% 3,7% 3,9%
4,0%
5,0%
6,0%
CONSTRUCTION BUSINESSES: robust financial profileA solid profitability1
Operating profit (€m) and margin
161
368 420
617497 450
695784*
488605
812819
384 379
535783
966 1,1581,236
1,079832
1,020949 1,005
2,7%2,8%
0,0%
1,0%
2,0%
3,0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
A recurring FCF generation1 (€m)
2 794
3,547
3,1753,404
3,281 3,308
A high net cash position1 (€m)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1,185
1,689
2,2592,440
2,4952,794
2,587
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
*Excluding Axione disposal at Bouygues Construction for €163m
23(1) 2013 figures restated for IFRS 11
24
13Bouygues Group presentation – September 2014
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)
TF1: profile
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
68% 32%
2013 sales breakdownTF1 Group advertising
Other activities
Journalist Harry Roselmack 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)
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
K i i h h ffi i f d i d i i i 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
14Bouygues Group presentation – September 2014
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
BOUYGUES TELECOM: profile
A network of more than 600 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 281SIM-only/web-only 2Attributable to the group
15Bouygues Group presentation – September 2014
BOUYGUES TELECOM: facing a challenging mobile market
A challenging mobile market since 2012
Strong growth in SIM-only plans transforming the business model
Sh f ll i i i 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 modelTransform 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: 70%1 of the population having access to 4G
BOUYGUES TELECOM: technology and innovation
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 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
1.1 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 agreement30(1) Data collected on 13th March 2014
16Bouygues Group presentation – September 2014
Creating value by developing mobile data use
4G allows intensive data use making new uses possible
f
BOUYGUES TELECOM: opportunities
Average GB consumption per month by Bouygues Telecom customers in 3G vs 4G
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 €13bn2820
Fixed broadband sales from network (m€)1
+31%
Seize opportunities in B2B markets : take advantage of the €13bncorporate market opening up to competition Major existing corporate clients include BNP Paribas, Lafarge, Foncia etc.
243
414
627
2010 2011 2012 20131Sales from network excluding ideo discount 2Estimate by Arcep and Bouygues Telecom
31
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 8632
17Bouygues Group presentation – September 2014
Reminder: change of accounting methods in 2014
As announced
The figures published in 2013 have been restated for IFRS 11
ANNEX
Following the sale of a controlling stake to Discovery Communications on 30 May 2014, TF1's remaining 49% interest in Eurosport International is consolidated by the equity method from 1 June 2014
To simplify the accounting method, Alstom’s contribution to Bouygues’ net profitis now booked only in respect of Bouygues’ Q1 and Q3; it is calculated from the net
33
is now booked only in respect of Bouygues Q1 and Q3; it is calculated from the net results reported by Alstom for the six months ended 31 March and 30 September
HIGHLIGHTS AND KEY FIGURESHIGHLIGHTS AND KEY FIGURES
BUSINESS AREAS
ALSTOM
FINANCIAL STATEMENTS
34
18Bouygues Group presentation – September 2014
Highlights
In a challenging economic and competitive environment in H1 2014 in France, Bouygues continues to demonstrate
Its competitiveness and its innovation capacity to the benefit of customers Its competitiveness and its innovation capacity to the benefit of customers Robust commercial performance of the construction businesses Good audience ratings at TF1 Success of the new commercial offers at Bouygues Telecom
No. 1 in the fixed activity for the third consecutive quarter1
4G taken up by 16% of mobile customers
Its ability to ensure the strength of its financial structure while operating conditions were more difficult, in particular for Bouygues Telecom and Colas in France Ability to sell assets at the right moment in order to finance new developments Ability to find the financial resources to improve free cash flow generation
35(1) Company estimate for Q2 2014 and Arcep figures for Q4 2013 and Q1 2014
€m H1 2013 restated H1 2014 Change
Sales 15,094 15,182 +1%1
Current operating profit 347 134 -€213m
Group key figures
Current operating profit 347 134 €213m
Operating profit 347 523(2) +€176m
Net profit attributable to the Group 188 410(3) +€222m
Sales were driven by international growth (up 8% vs H1 2013)
(1) Up 1% like-for-like and at constant exchange rates (2) Including non-current operating income of €81m related to Bouygues Telecom and a capital gain of €308m on the sale of Eurosport International (31%) and the remeasurement of the remaining interest (49%) (3) Including a net capital gain of €240m on the sale by Colas of its stake in Cofiroute
y g ( p )
Current operating profit mainly reflects the expected decline in profitability at Bouygues Telecom
Operating profit includes non-current items giving a positive €389m
Non-current income of €737m related to the sale of the controlling interest in Eurosport International in Q2 2014 and to litigation settlements at Bouygues Telecom
Non-current charges of €348m mainly related to the cost of the transformation plan at Bouygues Telecom
Net profit attributable to the Group includes a net capital gain of €240m on the sale of the stake in Cofiroute in Q1 2014 36
19Bouygues Group presentation – September 2014
Group free cash flow
€m H1 2013 restated H1 2014 Change
Cash flow 1,002 1,044 +€42m
Cost of net debt (157) (163) €6m- Cost of net debt (157) (163) -€6m
- Income tax expense (98) (59) +€39m
- Net capital expenditure (592)2 (592) =
Free cash flow1 155(2) 230 +€75m
(1) Before change in WCR (2) Excluding capitalised interest related to 4G frequencies for €21m at Group level
Tight control of capital expenditure
The Group managed to find the financial resources to withstand the decline in H1 current operating profit and maintain free cash flow generation Cash flow benefited from non-current income at Bouygues Telecom
37
Group financial position
€mEnd-Dec 2013
restatedEnd-June
2014Change
End-June 2013
restated
Change in net debt between end-December 2013 and end-June 2014 reflects
Shareholders' equity
Net debt
Net gearing
8,669
4,435
51%
8,952
5,174
58%
+€283m
+€739m
+7 pts
9,603
5,757
60%
The usual seasonal effect at Colas' business
Proceeds from the sale of the stakes in Cofiroute for €780m in Q1 2014 and in Eurosport International for €256m in Q2 2014
A particularly unfavourable trend in WCR not representative of the full-year
38
20Bouygues Group presentation – September 2014
HIGHLIGHTS AND KEY FIGURESHIGHLIGHTS AND KEY FIGURES
BUSINESS AREAS
ALSTOM
39
FINANCIAL STATEMENTS
Construction businesses
40
21Bouygues Group presentation – September 2014
Bouygues ConstructionBouygues ImmobilierC l
Robust commercial performance of the construction businesses
Order book: €28.0bn at end-June 2014, up 3% year-on-yearOrder books (€m)
3,060 2,815 2,210
7,856 7,570 8,242
Colas
Increased international presence
50% of the order book at Bouygues Construction and Colas on international markets (vs 46% at end-June 2013): €12.9bn, up 15% year-on-year
€28.6bn €28.0bn€27.3bn
+3%
17,650 16,877 17,537
End-June 2012
End-June 2013
End-June 2014
41
A tougher environment in France
The French market was tougher in H1 2014 Slowdown in public-sector orders since the municipal elections, particularly in roads
Scarcity of very large contracts
No recovery in the property market
However Bouygues Construction's order book provides good visibility
A number of large contracts were booked in H1 2014: Paris-Bercy sports stadium, 'City of Music' on Seguin island at Boulogne-Billancourt and new hospital buildings in Strasbourg
Government measures to stimulate residential property are set to be taken in Q4 2014 Government measures to stimulate residential property are set to be taken in Q4 2014 (impact in 2015)
Colas' railways activity is growing
The potential for large infrastructure projects remains strong in the medium term, notably as part of “Grand Paris” infrastructure programme
Example: contract for package 2 of the Paris metro line 14 extension, booked in July 201442
22Bouygues Group presentation – September 2014
Dynamic international activity
SwitzerlandFacility management services
Sales generated by Bouygues Construction and Colas in H1 2014 (and change vs H1 2013)
Sales generated by Bouygues Construction and Colas in H1 2014 (and change vs H1 2013)
Operations in more than 100 countries Main international orders taken in H1 2014
(rounded up/down)
CanadaHighway 63 in Alberta (€110m)
USParks Highway in Alaska (€60m)
Cuba Singapore
y g(5 years) at Crédit Suisse offices (€90m)Ankenbüel residential complexat Zumikon (€60m)UK3 rail contracts (€130m)
Americas: €0.9bn (+2%)
Africa:
€0 6bn (=)
Asia, Oceania & Middle-East:
€1.1bn (+14%)
Europe (excl. France):€2.1bn (+13%)
France: €5.9bn (-4%)
43
CongoBrazzaville northern road exit (€40m)GhanaRidge hospital (€160m)
Las Brujas hotel (€70m)
NigeriaJabi Lake shopping centre (€60m)
SingaporeNew Futura condominium tower (€90m)Tai Thong condominium tower (€70m)ThailandAustralian Embassy (€70m)
€0.6bn (=)
Countries where Bouygues Construction and Colas generated sales in H1 2014
International momentum: the example of Canada (1/2)
Bright economic prospects in the short- and medium terms
One of the countries in the world the least affected by the crisis
Civil engineering infrastructure needs in Canada estimated at more than CAD170bn1Civil engineering infrastructure needs in Canada estimated at more than CAD170bn
Operations by Colas since 1962 and Bouygues Construction since 2008
2013 sales of over €1bn
Average annual sales growth of 7% since 2007
New developments in Canada
At end-2013, Colas set up operations in Ontario with the acquisition of Furfari Paving, a roadworks company
In July 2014, Bouygues Construction took an 85% interest in Canadian company Plan Group, specialising in electrical engineering (design, installation, maintenance and related services)
2013 order book: ~€260m. 2013 sales: ~€240m
Consolidated in Bouygues Construction's financial statements from the financial close (scheduled end-Q3 2014)
44(1) Source: Ernst and Young report, ‘2013 infrastructure’, Global Priorities, Global Insights
23Bouygues Group presentation – September 2014
International momentum: the example of Canada (2/2)Examples of completed or ongoing projects
Surrey hospital(British Columbia) 30-year PPP to finance,
design, build, operate and maintain a hospital building
Contract orth €114m for
Motorway and rail contracts
(Quebec and Alberta) Construction and upgrading
of sections of Highways 73 and 85 in Quebec
Sports facilities for Pan American Games
(Ontario) Financing, design and
construction of sports facilities in Ontario for the
Iqaluit International Airport (Arctic North) Financing, design and
construction of a new terminal
45
Contract worth €114m for Bouygues Construction
Duration of the works: 2008-2011
and 85 in Quebec Construction of an
intermodal rail logistics hub in Calgary
Contract worth €160m for Colas
Duration of the works: 2012-2015
facilities in Ontario for the 2015 Pan American Games Contract worth €111m for
Bouygues Construction
Duration of the works: 2012-2014
Works valued at €160m for Bouygues Construction
and Colas
Handover scheduled for end-2017
Business activity at Bouygues Construction
Good level of order intake
€5.2bn in H1 2014, up 2% year-on-year
Includes the 'City of Music' contract on Seguin island for around €200 i Q2 2014
For execution in Y
For execution in Y+1
For execution from Y+2 to Y+5
Order book (€m)
€200m in Q2 2014
Order book at a high level of €17.5bn at end-June 2014, up 4% year-on-year
Strong visibility on full-year 2014 with €10.8bn in sales secured at 30 June 2014
6,105
8 887
6,076
2,9386,203
3,643
2,7292,742 2,609
16,87717,832 17,537
Long-term order book (beyond Y+5) +4%
46
5,105 5,2098,887
End-June 2013 End-Dec 2013 End-June 2014
‘City of Music’ on Seguin Island, Boulogne-Billancourt
24Bouygues Group presentation – September 2014
Business activity at Bouygues Immobilier
Reservations (€m)1
Commercial propertyResidential property
Residential property reservations reflect a market in crisis
Increased wait-and-see attitude since Q2 2014 andmarket contraction expected in 2014
C i l ff t t d
752 675
203
62
955
737-23%
-69%
-10%
Residential property Commercial efforts stepped up
Necessary trade-off between volumes and margins
Decline in reservations in H1 2014 not representative of the full year
A number of commercial property projects and significant residential block sales expected in H2 2014
47
H1 2013 H1 2014
(1) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)
Les Lodges, Chanteloup-en-Brie, labelled as an “exceptional building”
by Ademe
Business activity at Colas
Order book at a high level of €8.2bn, up 9% year-on-year
Decline in order intake in France following the slowdown in local authority spending after the municipal elections
St t i F h t it i d
Mainland FranceInternational and French overseas territories
Order book (€m)
3,594 3,835 3,6294,727
3,6344,021 3,941
3,515
7,2287,856 7,570
Strong momentum in French overseas territories and international markets
Longer order book
Orders to be executed beyond 2014 were up 35% year-on-year (up €945m) at end-June 2014
Orders to be executed in 2014 were down 5% year-on-year at end-June 2014
+9%
+30%
-11%
8,242
End-June 2011
End-June 2012
End-June 2013
End-June 2014
48
Roland-Garros airport, Reunion island
25Bouygues Group presentation – September 2014
Financial results of the construction businesses
€m H1 2013 restated H1 2014 Change
Sales
o/w France
o/w international
11,632
7,209
4,423
11,8547,040
4,814
+2%1
-2%
+9%
Sales gro th dri en b international acti ities
,
Current operating profit/(loss)o/w Bouygues Construction
o/w Bouygues Immobilier
o/w Colas
201204
84
(87)
137180
71
(114)
-€64m-€24m
-€13m
-€27m
Current operating margin 1.7% 1.2% -0.5 pts
(1) Up 3% like-for-like and at constant exchange rates (down 3% in France and up 11% internationally)
49
Sales growth driven by international activities
Start of a number of major projects at Bouygues Construction
Tougher French roads market for Colas and increase in the current operating loss at the sales of refined products activity
Options are currently being reviewed to stem recurrent losses at the sales of refined products activity (operating loss of €30m in H1 2014 vs €23m in H1 2013 and €46m in 2013)
3,2252,390
2,559
2 252
6,105 6,1346,893
5,052 5,174
Key figures at Bouygues ConstructionOrder intake (€m)1 Order book (€m)International
France
+2%
ANNEX
-5% 17,147 16,877 17,832 17,537
For execution in YFor execution in Y+1For execution from Y+2 to Y+5Long-term order book (beyond Y+5)
2,8803,744 4,334
2,686 2,922
,2,366 2,252
H1 2010 H1 2011 H1 2012 H1 2013 H1 2014
(1) Definition: contracts are booked as order intakes at the date they take effect
€m H1 2013 restated H1 2014 Change
+9%
5%
5,105 5,2098,486
6,105
8,887
6,076
5,959 2,938 6,2033,643
2,702 2,7292,742 2,609
, 16,877
End-Dec 2012 End-June 2013 End-Dec 2013 End-June 2014
50
France 53%Europe
(excl. France)
19%
Asia and Middle East
18%
Africa 5%
Americas5%
(2) Up 7% like-for-like and at constant exchange rates
g
Sales 5,228 5,558 +6%2
o/w France 2,901 2,909 =o/w international 2,327 2,649 +14%
Current operating profitCurrent operating margin
2043.9%
1803.2%
-€24m-0.7 pts
Net profit attributable to the Group 131 123 -€8m
At end-June 2014
26Bouygues Group presentation – September 2014
618 427271
2,815 2,6102,210
99
68 324
317 20362
943
1,243 1,314
1,045 955737
Order book (€m)
Key figures at Bouygues ImmobilierReservations (€m)1
Commercial propertyResidential property
ANNEX
-21% yoy
-23%
69%
2,197 2,183 1,939
End-June 2013 End-Dec 2013 End-June 2014
8441,175 990
728 752 675
62
H1 2009 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014
(1) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)
€m H1 2013 restated H1 2014 Change
-10%
-69%
51
Sales 1,143 1,192 +4%2
o/w residential 973 986 +1%o/w commercial 170 206 +21%
Current operating profitCurrent operating margin
847.3%
716.0%
-€13m-1.3 pts
Net profit attributable to the Group 45 42 -€3m(2) Up 3% like-for-like and at constant exchange rates
Key figures at Colas
Mainland FranceInternational and French overseas territories
8,064 8,242 +9%
Order book (€m)
ANNEX
H1 2013
3,5374,449
3,6294,727
3,571 3,811
3,9943,615
3,941
3,515
3,523 3,277
7,5318,064
7,5708,
7,094 7,088
-11%
+30%
€mH1 2013 restated
H1 2014 Change
Sales
o/w France
o/w international
5,4563,3772,079
5,2943,1552,139
-3%1
-7%+3%
Current operating profit/(loss)
(87) (114) -€27m
Net profit/(loss) attributable to the Group
(32) 317(2) +€349m
52
End-March 2013
End-March 2014
End-June 2013
End-June 2014
End-Sept 2013
End-Sept 2014
End-Dec 2013
End-Dec 2014
attributable to the Group( )
(1) Down 2% like-for-like and at constant exchange rates(2) Including a net capital gain of €385m on the sale of the stake in Cofiroute
27Bouygues Group presentation – September 2014
53
H1 highlights at TF1
Stable audience ratings at the TF1 group in H1 2014
TF1 channel audience ratings progressed in Q2 2014 (up 0.8 pts vs Q2 2013) spurred by the 2014 FIFA World Cup
16 9m viewers for the France/Germany quarter-final a record figure all
3.6 3.5 3.22.1 2.1 1.9
0.5 0.9
HD1
NT1
Group audience share1 (%)29.028.4 28.9
16.9m viewers for the France/Germany quarter final, a record figure all programmes included since October 2007
Sale of an additional 31% interest in Eurosport International to Discovery Communications on 30 May 2014
Consolidation by the equity method of TF1's remaining 49% interest from 1 June 2014
22.7 22.9 22.9
H1 2012 H1 2013 H1 2014
TMC
TF1
54
On 29 July 2014, CSA rejected LCI's request to migrate to free-to-air DTT
(1) Individuals aged 4 and over – Source: Médiamétrie 2014 FIFA Wold Cup show,
Denis Brogniart, Estelle Denis and Franck Leboeuf
28Bouygues Group presentation – September 2014
Financial results at TF1
€mQ1
2014(1)Change vs
2013Q2
2014(1)Change vs
2013H1
2014(1)Change vs
2013
Saleso/w group advertising
556369
-1%=
619430
-3%-5%
1,175799
-2%2
-2%
Current operating profit 23 +€39m 27 -€60m 50 -€21m
Current operating profit includes the cost of screening the FIFA World Cup and the savings from the optimisation plan
p g pCurrent operating margin 4.1% +6.9 pts 4.4% -9.2 pts 4.3% -1.6 pts
Operating profit 23 +€39m 350(3) +€263m 373(3) +€302m
Net profit attributable to the Group 15 +€21m 308 +€260m 323 +€281m
(1) At Bouygues group level, the sales and operating profit of Eurosport International remained included in the results of TF1 until the saleof the additional 31% stake in Eurosport International to Discovery Communications on 30 May 2014
(2) Down 2% like-for-like and at constant exchange rates (3) Including a capital gain of €323m on the sale of Eurosport International (31%) and the remeasurement of the remaining interest (49%)
55
Current operating profit includes the cost of screening the FIFA World Cup and the savings from the optimisation plan €56m in programming costs related to the 2014 FIFA World Cup in Q2 2014
€10m of recurrent savings generated in H1 2014 with a total of €66m generated since 2012 and a targeted €85m by end-2014
Q2 2014 operating profit includes a capital gain of €323m on the sale of the 31% stake in Eurosport International and the remeasurement of the remaining 49%
56
29Bouygues Group presentation – September 2014
Bouygues Telecom's strategy
Given the prospect of exponential growth in digital services, Bouygues Telecom is implementing an aggressive strategy around three main priorities
Creating value by developing mobile data use
Pursuing growth in the fixed broadband business by making services andvery-high-speed broadband accessible to as many people as possible
Accelerating the company's transformation while reasserting its positioning
Bouygues Telecom has the necessary strengths to regain increased competitivenesson a market with four operatorson a market with four operators
A state-of-the-art mobile network, and a comprehensive portfolio of frequencies
Attractive offers and a technological breakthrough in the fixed activity
A cost structure adapted to the changed market
57
Creating value by developing mobile data use (1/2)
A quality mobile network requires a large quantity of spectrum
In 4G, the speeds available to customers are directly correlated to an operator's quantity of frequencies
In the long term all frequency bands will be used for 4G (technological neutrality) In the long term, all frequency bands will be used for 4G (technological neutrality)
Bouygues Telecom has invested in a portfolio of frequencies, giving it a long-term competitive advantage, in order to implement its strategy of winning high-value customers
Acquisition of nearly a 1/3 of available spectrumin order to prepare for an explosion in data usages
Breakdown of the main operators’ frequencies
€1.5bn invested in acquiring frequencies and €70m of annual 4G licence fee related to the1800 MHz refarming
A diversified spectrum portfolio containing all the frequency bands
58
27%
31%
29%
11%Bouygues Telecom
Orange
SFR
Iliad
30Bouygues Group presentation – September 2014
Breakdown of spectrum in FranceANNEX
Quantity of frequencies allocated to the various operators (MHz duplex)1
As at 15 July 2014
24 5 20
230 11%
10 1023(2)
15 1510 10
2420 2010 10
24
20 15
5
5 20
800 MHz 900 MHz 1 800 MHz 2 100 MHz 2 600 MHz TOTAL % of total
79
84
73
29%
31%
27%
59
Bouygues Telecom Orange SFR Free Not allocated
Bouygues Telecom has 31% of the low frequencies (800 MHz and 900 MHz) which provide quality 4G indoors and facilitate data usages
(1) The quantity of FDD (Frequency Division Duplexing - a technique where two separate frequency bands are used at the transmitter and receiver side) spectrum is rounded up or down. Source: Arcep (2) The quantity of frequencies allocated to Bouygues Telecom in the 1800 MHz band, after the return of spectrum in certain towns and cities according to a timetableprovided in Arcep decision No. 2013-0514.
TOTAL % of total
A modern, high-quality mobile network As early as 2011, Bouygues Telecom initiated a complete modernisation of its network...
Creating value by developing mobile data use (2/2)
2011 2013 2014
....enabling it to become the No. 1 4G operator today
No. 1 in 4G coverage with 70% of the population covered2
No. 1 in speeds thanks to 4G+ (speeds of up to 220 Mbits/s3)
Investment in single RAN1
technology
More than 7,000 4G-compatible sites
Opening of the widest 4G network
Refarming of 1800 MHz frequencies
First operator to launch 4G+
Aggregation of 1800 MHzwith 2600 MHz or 800 MHz
4G coverage in July 20142
70%66%
% of population% of country
Innovation to be launched in 2015: Ultra High Speed Mobile
An offer competitors will find difficult to match Speeds close to 300 Mbits/s thanks to the aggregation
of 3 frequency bands 60(1) Single RAN technology allows operators to support all existing mobile communication standards (from GSM to LTE) on one single network
(2) Arcep observatory on the coverage and quality of mobile services (3) Maximum theoretical download speed
22% 18%
30%
1.7%
24%
1.5%
% of country
31Bouygues Group presentation – September 2014
A modern, high-quality mobile network ANNEX
No 1 for s ccessf l 5 min No 2 all criteria incl ded
According to Arcep's survey of the quality of mobile services in mainland France in June 2014, Bouygues Telecom is
No. 1 for successful 5-min web browsing in 3G
No. 2 all criteria included
Number of above-average indicators Successful 5-min web browsing in 3G
92%
96%
100%258
6180%
84%
88%
92%
0
The positive impact of 4G for Bouygues TelecomANNEX
The average data use of a Bouygues Telecom customer
The average data use of aB T l t
2 All customersActive 4G customers
GB/customer Launch of 4G
Bouygues Telecom business customer mobile subscriber base
Bouygues Telecom customer:x2 since the launch of 4G
0
1
janv.-12 juil.-12 janv.-13 juil.-13 janv.-14 juil.-14Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14
62janv.‐13 avr.‐13 juil.‐13 oct.‐13 janv.‐14 avr.‐14
+ 7 %
Business customer mobilesubscriber base up 7% sincethe launch of 4G
Launch of 4G
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14
32Bouygues Group presentation – September 2014
From 4G+ to Ultra High Speed MobileANNEX
From 4G+...
A ti f 2 f b d h …to Ultra High Speed Mobile
Bouygues Telecom already offers 4G+ and is preparing for Ultra High Speed Mobile which competitors will find difficult to match
Aggregation of 2 frequency bands: each new 2600 or 800 MHz base station can provide 4G+ directly thanks to the1800 MHz already rolled out at 7,000 sites
Speeds up to twice as fast as 4G
Available in France's 16 biggest towns and cities from September 2014
Aggregation of 3 frequency bands (800 MHz/1800 MHz/2600 MHz) for an available total of 45 MHz
Speeds up to 3 times faster than 4G
+
63
1
or
Pursuing growth in fixed broadband (1/3)
The network directly owned by Bouygues Telecom is already accessible to 12m households in broadband and to 1.1m households in FTTH1
Enabling Bouygues Telecom to offer its customers market-beating prices (€15 99 €19 99 and €25 99)(€15.99, €19.99 and €25.99)
Roll-out is speeding up in order to increase the number of customers that may benefit from these low prices
Winning new customers on the directly-owned network
55%
Share of Bouygues Telecom fixed broadband customers on directly-owned network
End-2014
65%45%
June 2014 2016
Coverage targets for directly-owned network at end-2015
16m eligible households for broadband
2m households with access to FTTH1
Agreements with SFR & Orange for a target of 6.5m households covered by FTTH in the long term
64(1) Number of fibre optic horizontal and vertical connections by Bouygues Telecom
33Bouygues Group presentation – September 2014
Strategy of offering low prices and technological breakthroughs in fixed broadbandsince end-2013
N 2013 Q4 2014M h 2014 J 2014
Pursuing growth in fixed broadband (2/3)
B T l i i f l ti b i i t th t diti l t l i i d
2P broadband offer for €15.99/month
Nov 2013 Q4 2014
3P broadband offerfor €19.99/month
March 2014
3P FTTH offerfor €25.99/month
June 2014
Launch of the new “Miami” TV box
Bouygues Telecom is preparing for a revolution: bringing together traditional television and web content, responding to the growing appetite for consumption on demand
Launch of a major technological innovation by the end of the year: the “Miami” TV Box
65
The “Miami” TV Box
Partnership with Google and access to the large
eco-system of Android developers
A fast and pertinent suggestion engine based on
user preferences
ANNEX
One single box and access to three technologies
(DTT, IPTV, OTT)
Connection possible from all Android-compatible
devicesThe “Miami” TV Box
66
TV and web in a single interface (connected television,
games, VOD, etc.)
Comprehensive catalogue of applications via access to
Google Play Store
34Bouygues Group presentation – September 2014
A revolutionary TV box at an affordable price and a reduced cost
TV box production cost halved vs the Bbox Sensation…
Pursuing growth in fixed broadband (3/3)
...benefitting from perpetual app innovations by Android developers at an affordable price...
...and fully in line with the operator's strategy of offering market-beating prices An attractively-priced premium offer (less than €30/month)
By integrating 3 technologies (DTT, IPTV, OTT), the “Miami” TV Box offers televisionand the related services via a 3P offer to a larger number of customers
67
Accelerating transformation while reasserting the positioning (1/2)
Helping customers embrace the new uses of digital technology
Redesigned stores, more focused on the sale and use of connected objects
Enhanced mobile customer relations with advisers based in France
Simplification of offers and processes
The radical simplification of offers will facilitate choice for customers: there will be fewer offers, they will be clearer and easier to compare
As early as the end of 2014, this far-reaching overhaul will simplify processes and automatically reduce the use of support functions (IT, marketing, etc.)
68
35Bouygues Group presentation – September 2014
Accelerating transformation while reasserting the positioning (2/2)
Adapt the cost structure to the fall in market value Roll-out of a plan to generate savings of €300m by end-2016 vs 2013, around half of which
in 2015in 2015
These savings are to come from the simplification of offers and processes and the related downsizing
Terms of the draft redundancy plan currently being negotiated with social partners Downsizing target: around 1,500 jobs
The first redundancies could take place at the beginning of November 2014
The implementation of these transformations will trigger a major change in the organisationof the company and make it more dynamic and more agile to the benefit of customers
69
H1 commercial performance, a result of the strategy
'000End-Dec2013
End-March 2014
End-June 2014
Mobile customer base 11,143 11,064 11,024o/w B&YOU subscribers 1,750 1,876 1,966
4510
4072
100 102
Net growth of the fixed broadband business (‘000)1
Growth in value-added plans
More than 70% of retail plan customers subscribed to a value-added plan2
at end-June 2014
16%3 of the mobile subscriber base uses 4G with average usage of 2GB/month
Fixed subscribers1 2,013 2,113 2,215
Total subscriber base 13,156 13,177 13,239
4510
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
1,800
Active 4G3 subscribers ('000) and share of the total mobile
subscriber base
Nearly 60% of B&YOU customers were on a 4G plan ≥ 3GB at end-June 2014
Confirmed success of the new fixed broadband offers
Bouygues Telecom No. 1 in terms of net adds4 for the third quarter running
Net growth of 202,000 customers in H1 2014
70(1) Includes broadband and very-high-speed subscriptions (2) Offer with data consumption higher or equal to 500MB/month (3) Customers having used the 4G network in the last 3 months (Arcep definition) (4) Company estimate for Q2 14 and Arcep figures for Q4 13 & Q1 14
1,000
1,400
End Q4 13 End Q1 14 End Q2 14
9%13%
16%
36Bouygues Group presentation – September 2014
Financial results of Bouygues Telecom€m H1 2013 H1 2014 Change
Sales 2,287 2,177 -5%1
Sales from network 2,113 1,940 -8%
EBITDA 469 332 -€137m
As expected, sales and EBITDA reflect commercial performances, the repricing of the subscriber base andthe growing share of SIM-only plans
(1) Down 5% like-for-like and at constant exchange rates (2) Including non-current income of €85m: €429m for litigation settlements and other minus €344m in provisions for adaptation costs and other (3) Excluding capitalised interest related to 4G frequencies for €8m
Current operating profit/(loss) 91 (41) -€132m
Operating profit 91 44(2) -€47m
EBITDA minus Capex 62(3) (5) -€67m
Repricing4 rate of the retail plan subscriber base: 76% at end-June 2014 vs 60% at end-December 2013
EBITDA impacted by a €30m 4G licence fee related to the refarming of 1800 MHz in H1 2014
Bouygues Telecom finds its resources independently to finance its ongoing transformation The costs of the transformation plan are offset by litigation settlements
The "EBITDA minus Capex" item is positive in Q2 2014: +€12m vs -€17m in Q1 2014
71(4) 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
Key figures at Bouygues TelecomANNEX
€m Q1 2014Change vs
Q1 2013 Q2 2014Change vs
Q2 2013H1 2014
Change vs H1 2013
Sales 1,085 -5% 1,092 -4% 2,177 -5%Sales from network
,966 -9%
,974 -7%
,1,940 -8%
EBITDAEBITDA/sales from network
16316.9%
-€49m-3.0 pts
16917.4%
-€88m-7.1 pts
33217.1%
-€137m-5.1 pts
Current operating profit/(loss) (19) -€47m (22) -€85m (41) -€132m
Operating profit/(loss) 181(1) +€153m (137)2 -€200m 44 -€47m
Net profit/(loss) attributable
72
Net profit/(loss) attributable to the Group
110 +€94m (86) -€125m 24 -€31m
EBITDA minus Capex (17) -€20m3 12 -€47m3 (5) -€67m3
(1) Including non-current income of €200m related notably to litigation settlements(2) Including non-current charges of €115m: €129m for litigation settlements and other minus €244m in provisions for adaptation costs and other(3) Excluding capitalised interest related to 4G frequencies for €8m in H1 2013 (o/w €4m in Q1 2013 and €4m in Q2 2013)
37Bouygues Group presentation – September 2014
Fixed and mobile business and financial performance
'000End-June
2013End-Sept
2013End-Dec
2013End-March
2014End-June
2014
Mobile customer base 11,286 11,094 11,143 11,064 11,024o/w plan subscribers1
o/w prepaid customers9,8021,484
9,7601,334
9,9101,233
9,9401,124
9,9841,040
ANNEX
1,6341,750
1,8761,966
B&YOU mobile subscriber base ('000)
Fixed broadband customer base2
o/w very-high-speed31,901
3201,941
3342,013
3632,113
3782,215
368
Sales from the fixed broadband network4 (€m)
222197
219 203 207 213
1,334
1,509
,
End-March 2013
End-June 2013
End-Sept 2013
End-Dec 2013
End-March 2014
End-June 2014
73(1) Plan subscribers: total customer base excluding prepaid customers according to the Arcep definition(2) Includes broadband and very-high-speed subscriptions
Q1 13 Q1 14 Q2 13 Q2 14 Q3 13 Q4 13
+9%+11%
(3) Arcep definition: subscriptions with peak downstream speed higher or equal to 30 Mbit/s(4) Sales from network excluding the ideo discount
Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base
Q1 2014 Q2 2014 Q1 2014 Q2 2014 Q1 2014 Q2 2014Subscribers SIM cards ('000) 9,940 9,984 1,124 1,040 11,064 11,024SIM cards (% mix) 89.8% 90.6% 10.2% 9.4%
ANNEX
Fixed broadband subscriber base1 ('000) 2,113 2,215
Unit data – mobile subscribers
ARPU (€/year/subscriber)2 359 349 109 109 327 320Data usage (MB/month/subscriber)3 393 474Text usage (texts/month/subscriber)4 384 379 114 118 348 347Voice usage (min/month/subscriber)4 496 504 166 171 452 463
Unit data – fixed subscribersARPU (€/year/subscriber)2 402 396
Marketing costs5 Q2 2013 Q2 2014
Marketing costs (€m) 123 89
Marketing costs/sales from network 11.7% 9.1%
(1) Includes broadband and very-high-speed broadband subscriptions according to theArcep definition
(2) Rolling 12-month period, stripping out the ideo discount, and excluding machine-to-machine SIM cards for mobile ARPU
(3) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machine SIM cards
(4) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machineSIM cards and excluding internet SIM cards
(5) Mobile and fixed subscriber acquisition and retention costs
ARPU (€/year/subscriber) 402 396
74
38Bouygues Group presentation – September 2014
HIGHLIGHTS AND KEY FIGURESHIGHLIGHTS AND KEY FIGURES
BUSINESS AREAS
ALSTOM
75
FINANCIAL STATEMENTS
ALSTOM
Following the sale of the Power businesses to General Electric, Alstom will be a stronger companyAlstom will be a stronger company
A world leader in the growing transport market
A portfolio of products at the cutting edge of innovation
A strong international dimension
A strengthened balance sheet allowing it to develop further
Bouygues believes in the growth and upside potential of the"new Alstom"
76
Citadis tramway, Tours
39Bouygues Group presentation – September 2014
HIGHLIGHTS AND KEY FIGURES
BUSINESS AREAS
ALSTOM
77
FINANCIAL STATEMENTS
Condensed consolidated income statement (1/2)
€m H1 2013 restated H1 2014 Change
Sales 15,094 15,182 +1%
Current operating profit 347 134 -€213m
Operating profit 347 523(1) +€176m
Cost of net debto/w financial income
o/w financial expenses
(157)22
(179)
(163)21
(184)
-€6m-€1m
€5mo/w financial expenses (179) (184) -€5m
Other financial income and expenses (7) 3 +€10m
78
(1) Including non-current operating income of €81m related to Bouygues Telecom and a capital gain of €308m on the sale of Eurosport International (31%) and the remeasurement of the remaining interest (49%)
40Bouygues Group presentation – September 2014
Condensed consolidated income statement (2/2)
€m H1 2013 restated H1 2014 Change
Income tax expense (98) (59) +€39m
Investments in joint ventures and associateso/w share of profitso/w net capital gain on Cofiroute disposal
138138
-
30754
253
+€169m-€84m
+€253m
Net profit 223 611 +€388m
Net profit attributable to 2 (35) (201) -€166m
(1)
non-controlling interests2 (35) (201) €166m
Net profit attributable to the Group 188 410 +€222m
79
(1) Net capital gain at 100% (2) Formerly 'Minority interests'
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 8680
41Bouygues Group presentation – September 2014
Outlook (1/2)
The Group's sales should be down very slightly in 2014(between -1% and -2% vs 2013)
O tl k f th t ti b i Outlook for the construction businesses The slowdown in public-sector orders in France remains a point to watch
However, the construction businesses enjoy major strengths Strong momentum in their international activities offsets a more challenging economic
environment in France
The order book provides good visibility on future business activity
81
The order book provides good visibility on future business activity
Diversity of business activities and expertise
A selective approach to orders and adaptation of organisations to actual business activity
Financial performances should remain robust in 2014
Outlook (2/2)
Outlook for TF1 In a low-visibility context, TF1 is continuing to transform its business model
Two exceptional events in 2014: the FIFA World Cup and the sale of a controlling interest Two exceptional events in 2014: the FIFA World Cup and the sale of a controlling interest in Eurosport International
Outlook for Bouygues Telecom Bouygues Telecom confirms its target of generating a slightly positive
"EBITDA minus Capex" item in 2014, and is rolling out its 3 strategic priorities in order to benefit from its renewed competitiveness as early as 2016 on a market with 4 operators
82
Creating value with mobile data use
Pursuing growth in the fixed broadband business
Accelerate the company's transformation with targeted annual savings of €300mas early as 2016
42Bouygues Group presentation – September 2014
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13 THE BUSINESSES Slide 13
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 86 83
Conclusion
Although the competitive and economic environment is more challenging in France
The Bouygues group has strengthened...The Bouygues group has strengthened... The construction businesses have ramped up their international expansion
Bouygues Telecom has implemented and is rolling out an aggressive strategy
The new Alstom will enjoy good growth and upside potential
and once again proved its ability to ensure its financial strength
84
...and once again proved its ability to ensure its financial strength Ability to sell assets at the right moment in order to finance new developments
Ability to find the financial resources to improve its free cash flow generation
43Bouygues Group presentation – September 2014
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13 THE BUSINESSES Slide 13
H1 2014 RESULTS Slide 33
GROUP OUTLOOK Slide 81
CONCLUSION Slide 84
APPENDIX Slide 86 85
Condensed consolidated income statement (1/2)
€m 2012 2013 Change
Sales 33,547 33,121 -1%
Annex – as published
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/ fi i l i
(290)62
(309)55
+7%11%
86
o/w financial income
o/w financial expenses
62
(352)
55
(364)
-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
44Bouygues Group presentation – September 2014
Condensed consolidated income statement (2/2)
€m 2012 2013 Change
Income tax expense (330) (367) +11%
Annex – as published
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 Alstom
633 647 +2%
87
before the write-down of Alstom
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"
Sales by business area
€m 2012 2013 Change
Bouygues Construction 10,640 11,111 +4%
Bouygues Immobilier 2,396 2,510 +5%
Annex – as published
yg , ,
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
88
Holding company and other 123 119 nm
Intra-Group elimination (495) (578) nm
TOTALo/w France
o/w international
33,54722,30811,239
33,34522,11811,227
-1%-1%
=(1) Total of the sales contributions (after eliminations within the construction businesses)
45Bouygues Group presentation – September 2014
Contribution of business areas to Group EBITDA
€m 2012 2013 Change
Bouygues Construction 614 668 +€54m
Annex – as published
Bouygues Immobilier 186 191 +€5m
Colas 832 823 -€9m
TF1 318 300 -€18m
Bouygues Telecom 908 880 -€28m
89
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 ofunutilised provisions and impairment losses
Contribution of business areas to Group current operating profit
€m 2012 2013 Change
Bouygues Construction 364 435 +€71m
Annex – as published
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 +€58m90
46Bouygues Group presentation – September 2014
Contribution of business areas to Group net profit/(loss)€m 2012 2013 Change
Bouygues Construction 267 277 +€10m
Bouygues Immobilier 107 101 -€6m
291 301
Attributable to the Group
Annex – as published
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
H ldi d th (317)1 (271)2 +€46m Holding company and other (317)1 (271)2 +€46m
Net profit attributable to the Group before the write-down of Alstom
633 647 +€14m
Write-down of Alstom - (1,404) nm
Net profit/(loss) attributable to the Group 633 (757) nm91(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
Condensed consolidated balance sheet
€mEnd-Dec
2012End-Dec
2013Change
Non-current assets 20,170 17,684 -€2,486m(1)
Annex – as published
Current assetsHeld-for-sale assets and operationsTOTAL ASSETS
,16,584
-36,754
,15,4691,151
34,304
,-€1,115m
+€1,151m-€2,450m
Shareholders' equityNon-current liabilitiesCurrent liabilities
10,0789,845
16 831
8,6848,959
16 495
-€1,394m-€886m-€336m
(1)
(2)
92
Current liabilitiesLiabilities related to held-for-sale operationsTOTAL LIABILITIES
16,831-
36,754
16,495166
34,304
-€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
(3)
47Bouygues Group presentation – September 2014
Change in net cash position in 2013 (1/2)
Net cash at 31/12/2012 €m
Net cash at 31/12/2013
Annex – as published
-103 -591
-71
+610 -33(2) -67
Acquisitions/disposals1
(4,172) (4,427)(3 872)
4G frequenciesDividends paid
Issue & buyback of Bouygues
shares
Operation
Exceptional disposals3
Reclassification of Eurosport International4
(4,360)
(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 93
2012 (3,862) -123 -608 +122 +599 -726 +426 (4,172) (4,172)
Net cash flow1
+2,066
Change in net cash position in 2013 (2/2)
€m
Net capital expenditure
-1,245(2)
Breakdown of operation
Annex – as published
+610(2)
Change in operating WCR3 and other
-211
(2)
94
(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)
48Bouygues Group presentation – September 2014
Contribution of business areas to Group net cash flow
€m 2012 2013 Change
Bouygues Construction 486 488 +€2m
Annex – as published
Bouygues Immobilier 120 120 =
Colas 723 678 -€45m
TF1 206 188 -€18m
Bouygues Telecom 780 763 -€17m
95
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
Contribution of business areas to Group net capital expenditure
€m 2012 2013 Change
Bouygues Construction 159 159 =
Bouygues Immobilier 13 10 -€3m
Annex – as published
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
96
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)
49Bouygues Group presentation – September 2014
Contribution of business areas to Group free cash flow
€m 2012 2013 Change
Bouygues Construction 327 329 +€2m
Bouygues Immobilier 107 110 +€3m
Annex – as published
ouygues ob e 0 0 €3
Colas 378 382 +€4m
Sub-total of construction businesses 812 821 +€9m
TF1 161 149 -€12m
Bouygues Telecom (89)1 24(2) +€113m
97
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)
Net cash by business area
€mEnd-Dec
2012End-Dec
2013Change
Bouygues Construction 3,093 3,006 -€87m
Annex – as published
yg 3,093 3,006 €8
Bouygues Immobilier 358 271 -€87m
Colas (170) 39 +€209m
TF1 237 188(1) -€49m
Bouygues Telecom (650) (783) -€133m
98
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
50Bouygues Group presentation – September 2014
9,000
10,000
Available cash: €8.1bn
Financing
Debt maturity schedule at end-June 2014
€m
3,000
4,000
5,000
6,000
7,000
8,000
UndrawnMLT
facilities €5.3bn
0
1,000
2,000
,
Cash €2.8bn
99
Impact of IFRS 11 on the Group's 2013 financial statements
€m2013
reported
Restatement2013
restatedBouygues Construction
Colas TF1
Sales 33 345 (10) (204) (10) 33 121
Annex
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
(309)
(26)
(367)
-
-
-
5
-
7
-
-
-
(304)
(26)
(360)
100
p
Associates1
( )
205 (2) 14 -
( )
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
(1) Before the write-down of Alstom for €1,404m
51Bouygues Group presentation – September 2014
Impacts of exceptional items on net profit attributable to the GroupANNEX
€m H1 2013 restated H1 2014 Change
Net profit attributable to the Group 188 410 +€222m
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 (240) €240Net 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 remaining interest (49%)
(240)
(113)
-€240m
-€113m
Cofiroute contribution to H1 2013 net profit 21 +€21m
Change in calculation method for Alstom quarterly contribution 27 +€27m
Net profit attributable to the Group before exceptional items 188 60 -€128m
101
€m H1 2013 restated H1 2014 Change
Net profit attributable to the Group of the construction businesses 145 471 +€326m
Net capital gain on the sale by Colas of its stake in CofirouteCofiroute contribution to H1 2013 net profit
(372)21
-€372m+€21m
Net profit attributable to the Group of the construction businesses before exceptional items 145 120 -€25m
Impacts of the sale of the stake in Cofiroute on the income statement
€mH1 2014
Colas income
statement
Colas contribution1
Bouygues income
statement
ANNEX
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 interests2 (3.4%) -13
102
Net capital gain attributable to the Group 385 372 240
(1) Colas contribution to net profit attributable to the Group(2) Calculated on net capital gain (at 100%) before goodwill
52Bouygues Group presentation – September 2014
Impacts of the sale of the 31% stake in Eurosport International on the income statement
€mH1 2014
TF1 income
statement
TF1contribution1
Bouygues income
statement
N t it l i di l d t2 b f t 323 323 323
ANNEX
Net capital gain on disposal and remeasurement2 before tax 323 323 323
- Income tax expense
Net capital gain on disposal and remeasurement2 after tax
-29
294
-29
294
-29
294
- Goodwill at Holding company level 0 0 -15
Net capital gain on disposal and remeasurement2 after goodwill 294 294 279
103
et cap ta ga o d sposa a d e easu e e t a te good 294
0
294 279
-166- Net capital gain attributable to non-controlling interests3 (56.5%) -166
Net capital gain and remeasurement2 attributable to the Group 294 128 113(1) TF1 contribution to net profit attributable to the Group
(2) Net capital gain on the sale of Eurosport International (31%) and the remeasurement of the remaining interest (49%)
(3) Calculated on net capital gain (at 100%) before goodwill
Group organisation chart
Roadworks Building / Civil Engineering Property(1986) (1952) (1956)
Annex
96.6 % 100 % 100 %
CONSTRUCTION
(1994)
29.3% stakePOWER - TRANSPORT
(2006)
Figures as of 31 December 2013
43.5 %
TELECOMS
90.5 %
MEDIA
(1994) (1987)
104
53Bouygues Group presentation – September 2014
A diversified portfolio
Entering new businesses under good conditions
Growing market
Regulatory or technological changes
Acquisition of Colas / Screg in 1985
Acquisition of TF1 in 1987
Annex
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
Acquisition of TF1 in 1987
Launch of Bouygues Telecom in 1994
Investment in Alstom in 2006
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
Maison Bouygues in 1990
Bouygues Offshore in 2002
Saur in 2005
TPS in 2006105
53%
20%
16%
7% 4%FranceEurope (excl. France)Asia and Middle eastAmericasAfrica
44%
42%
14% Building and Civil Works France
Building and Civil Works International
Electrical Contracting
CONSTRUCTION BUSINESSES: 2013 sales breakdownAnnex – as published
Africa
96%
4%
France
Europe85%
15%
Residential
Commercial
19%
15%
66%
Specialty activites
Building materials
Roadworks
19%
15%57%
9% North America
Europe (excl. France)
France
Others
106
54Bouygues Group presentation – September 2014
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
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
Annex
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
South Korea Machang Bay Bridge
concession
Canada Hospital PPP in British Columbia Royal Canadian Mounted Police headquarters PPP Iqaluit International Airport PPP
Singapore Sports Hub PPP
Germany Rostock tunnel concession Hungary
M5 motorway concession M6-M60 motorway PPP
Nîmes and Montpellier railway bypass Municipal authority complex in Bordeaux L2 bypass in Marseille
Istria motorway concession
phases 1 and 2 Zagreb Airport concession
South Africa Gautrain rail link concession
Jamaica Motorway concession:
highway 2000, 1A
concession Pusan port concession
Hong Kong AsiaWorld-Expo concession
and Marriott hotel
United States Miami port tunnel PPP
Long-term road maintenance contracts
Saudi Arabia Equestrian Club PPP
Cyprus Lanarka and Pafos
airport concession
Bouygues Construction Colas
Australia Sydney metro
107
Ivory Coast Highway concession
CalendarAnnex
14 November 2014 Nine-month 2014 sales and earnings 7.30am
23 April 2015 Annual General Meeting 3.30pm
108
55Bouygues Group presentation – September 2014
109
109BUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTURE