bouygues group presentation · bouygues — investors presentation – may 2013 2 the bouygues...
TRANSCRIPT
Bouygues — Investors presentation – May 2013 1
M 2013M 2013
Bouygues Group presentationBouygues Group presentation1
May 2013May 2013
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;
May 2013
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.
2
Bouygues — Investors presentation – May 2013 2
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
Q1 2013 FIGURES Slide 32
GROUP OUTLOOK Slid 64 GROUP OUTLOOK Slide 64
APPENDIX Slide 70
3
A diversified industrial group
5 businesses with different cycles focusing on two sectors: construction and telecoms/media
Profile
2012 breakdown by business area
25.82.5
5.2
Sales1 at €33.5bn
949
258
122 Current operating profit1 at €1,286m
812
161
-892
Free cash flow1 at €724m2
Construction businesses Bouygues TelecomTF1
Key figures in 2012 €633m net profit ~ 134,000 employees Market capitalization: ~ €7bn
1Excluding Holding contribution: €11m for sales; -€43m for current operating profit; and -€160m for the free cash flow 2Free cash flow is calculated before changes in WCR. It excludes exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band (acquisition cost and capitalised interest for €726m at Bouygues group level and for €696m at Bouygues Telecom level) and asset disposals for €207m
4
Bouygues — Investors presentation – May 2013 3
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 31 December 2012
A stable share ownership structure
Voting rights Capital
Foreign
SCDM
Employees
Other French
20.5%
23.7%
18.0%
37.8%
shareholdersSCDM
Employees
Other Frenchshareholders
Foreign shareholders 29.2%
28.7%14.6%
27.5%
Shareholders’ structure allowing long-term focus
shareholders
At 31 December 2012: 324,232,374 shares and 445,673,682 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues
6
Bouygues — Investors presentation – May 2013 4
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
Pragmatic – Cautious – Opportunistic – Entrepreneurial 7
Long-term growth opportunities
Growing long-term infrastructure needs in both developed and emerging countries Drivers: demographic growth urbanization saturated and 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
Alt ti t t i f t t ( il l )
QP District, Qatar
Alternative transport infrastructures (railways, canals…)
Strengthening existing customer base and increasing addressable market in Telecom / Media Fixed broadband market, mobile data, B2B market …
*Source OECD - rail, road, telecoms, electricity transmission & distribution, water
A Bbox Sensation advertisement
8
Bouygues — Investors presentation – May 2013 5
A solid operational track record
2001 2012
+ 5 %
CAGR
€20.5bn
€876m
€344m
+ 5 %
+ 4 %
+ 6 %
€33.5bn
€1,286m
€633m
Sales
Operating profit
Net profit1 €344m
(1) Attributable to the Group
€0.36X 4.4
€633m
€1.60
Net profit1
DPS
9
A healthy financial profile
Low gearing at 41%Evenly spread repayment schedule
Debt under control
6%
Ability to control capex
Capex-to-sales ratio1Available Cash = €9.7bn
No significant off-balance sheet commitment
High level of liquidity
S t i bl h fl
0%
2%
4%
Free cash flow1 = €0.7bnAverage Free cash flow since 2005 at €1bn
Cash remittance to the holding
Sustainable cash-flowgeneration
All figures are at end December 20121 Capex and Free cash flow exclude the impact of mobile frequencies purchases and exceptional asset disposals at Bouygues Telecom 10
Bouygues — Investors presentation – May 2013 6
1 2
1.5 1.6 1.6 1.6 1.6 1.61
Dividend per share
0.360.5
0.750.90
1.2
1Dividend yield based on closing price
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
4.4% 5.0%5.3%2.6%Dividend yield1: 6.6%2.5%2.2%2.2%2.7%2.1% 7.1%
11
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
Q1 2013 FIGURES Slide 32
GROUP OUTLOOK Slid 64 GROUP OUTLOOK Slide 64
APPENDIX Slide 70
12
Bouygues — Investors presentation – May 2013 7
Construction businesses
13
Africa Americas
12%
A world leader: n°4 “top international contractor” according to ENR ranking1
2012 key figures
CONSTRUCTION BUSINESSES: profile
Sales: €25.8bnSales by region
France 58%Europe
(excluding France)
17%
Asia and Middle East
8%
Africa 5%10.6
2.413.0
Buildings & civil works Real estate Roads
Free cash flow: €812mOperating profit : €949m
364
179406
Building & civil works Real estate Roads
327107
378
Building & civil works Real estate Roads
1 Companies are ranked according to construction revenue generated outside home country. 14
Bouygues — Investors presentation – May 2013 8
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 a property development leader 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
16
Bouygues — Investors presentation – May 2013 9
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
Some examples
Rail tunnel, Australia
Rail tunnel, Australia
MahaNakhon tower,
Thailand
MahaNakhon tower,
Thailand
Sporting facilities, Canada
Sporting facilities, Canada
Renovation of The Ritz Hotel Paris
Renovation of The Ritz Hotel Paris
Upgrading of roads,
London
Upgrading of roads,
London
Green Office®
Rueil-Green Office®
Rueil-A restricted
worksite environment where trains continue to
run on existing tracks
A restricted worksite
environment where trains continue to
run on existing tracks
ThailandThailand's tallest tower and an all-
time record height for Bouygues Construction(314 metres,77 storeys)
ThailandThailand's tallest tower and an all-
time record height for Bouygues Construction(314 metres,77 storeys)
CanadaExpertise in sustainable
construction: all buildings (including two stadiums and one velodrome)
have Leed® Silver certification
CanadaExpertise in sustainable
construction: all buildings (including two stadiums and one velodrome)
have Leed® Silver certification
Hotel, ParisA showcase of the company's
know-how in the renovation of luxury hotels
Hotel, ParisA showcase of the company's
know-how in the renovation of luxury hotels
London8-year contract
for the upgrading and maintenance
of roads in central London
London8-year contract
for the upgrading and maintenance
of roads in central London
Malmaison, France
The second positive-energy building developed by
Bouygues Immobilier
Leased toUnilever
Malmaison, France
The second positive-energy building developed by
Bouygues Immobilier
Leased toUnilever
Photo credit: Augusto Da Silva 18
Bouygues — Investors presentation – May 2013 10
CONSTRUCTION BUSINESSES: development of specialty activities
Strategy Expand the offering available to customers
Develop synergies with existing business areas
Penetrate new growth potential markets 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
Rabat-Salé tramway, Morocco
Order book at Colas Rail
1 1Share of more
€bn
International know-how: Cairo metro (Egypt), Rabat-Salé and Casablanca (Morocco), Geneva (Switzerland), Los Teques (Venezuela), Kuala Lumpur (Malaysia), etc.
2012 sales at Colas Rail up +10% (€644m):
Strong growth in the order book, which enjoys increasing maturity with several commercial successes (Nîmes-Montpellier high-speed railway bypass PPP, extension of the Algiers metro, Tunis RFR rapid rail network)
0.3 0.3 0.4
0.30.6
0.70.6
0.9
1.1
End-2010 End-2011 End-2012
Share of more than 1 year
Share of less than 1 year
19
A strong international presence
C dSwitzerland
UKProperty complex in London (€70m)Three tower blocks in Southampton (€60m)
Main international contracts won since the start of 20121
46% of the order book at Bouygues Construction and Colas to be executed in international markets, o/w nearly 40% in emerging markets
CanadaSporting facilities (€110m)Highway 85 in Quebec (€40m)
CubaLuxury hotel complex(€60m)
AlgeriaExtension of an Algiers
ThailandM h N kh t
Hong KongBridge linking Hong Kong, Zhuhai and Macao (€610m)Office block (€210m)
Residential and commercial complexes in Zurich, Thun and Gland (€280m)Swiss post office building in Bern (€110m)
Three tower blocks in Southampton (€60m)Residential complex in Chelmsford (€60m) Road upgrading in London (€205m)
Countries where Bouygues Construction and Colas generated sales in 2012
20
Extension of an Algiers metro line (€45m)TunisiaTunis rapid rail network (€85m)
Ivory CoastRoad concessioncontract in Abidjan (€230m)
GabonUpgrading of RN1 road(€40m)
TurkmenistanTheatre and concert centre (€340m)Renovation of Rukhiet Palace (€50m)
AustraliaRail tunnel and track (€100m)
MahaNakhon towerThree residential tower blocks (€100m)
(1) Amounts attributable to the Group – rounded up/down
Bouygues — Investors presentation – May 2013 11
A safe and extensive order book providing good visibilityon future activity A record order book of €26.8bn at end-December 2012,
up 8% versus end December 2011
CONSTRUCTION BUSINESSES: focus on long-term sustainability
3 0 12,9576,141
6,4726,704
ColasBouygues Construction
Order book at the construction businesses Bouygues Immobilier
€26.8bn€24.8bn€22.6bn
+8%
-3%
+4%
up 8% versus end-December 2011
An increase in the depth of the order book, giving time to adapt
A strong ability to adapt Cost structure mostly variable (attached to projects)
Geographical flexibility of teams
Management’s proven responsiveness 8.5 2005 2012x2.1
14,154 15,283 17,147
2,280 3,0512,957
End-Dec. 2010 End Dec. 2011 End Dec. 2012
Bouygues Construction order book
3%
+12%
g p p
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
4.0
1.3 0.7
6.0
2.7
for execution in Y+1
for execution from Y+2 to Y+5
for execution beyond Y+5
x4.6x3.9
21
1 2362 7%3.7%
4.7%5.1% 5.3% 5.0%
4.6%
3.6%4.2%
3.7%4,0%
5,0%
6,0%
CONSTRUCTION BUSINESSES: robust financial profileA solid profitability
Operating profit (€m) and margin
161
368 420
617497 450
695784*
488605
812
384 379
535783
966 1,1581,236
1,079832
1,020949
2.7%2.8%
0,0%
1,0%
2,0%
3,0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
A recurring FCF generation (€m)
3 547 3 404 3,281
A high net cash position (€m)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1,185
1,689
2,2592,4402,495
2,7942,587
3,5473,175
3,404 3,281
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
*Excluding Axione disposal at Bouygues Construction for €163m
22
Bouygues — Investors presentation – May 2013 12
23
A strong media group The leading TV channel in France, TF1
Strong position on free-to-air market with 4 channels1
12 other pay-TV channels including Eurosport (n°1 sport TV channel in Europe)
TF1: profile
12 other pay TV channels including Eurosport (n 1 sport TV channel in Europe)
Diversification activities: audiovisual rights and production, licensing…
2012 key figures €2.6bn revenue
€136m net profit2
Around 4,000 employees
Leader in audience share
68% 32%
2012 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 (28.4%3 for TF1, TMC and NT1 at end-December 2012)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
2 Attributable to the group 3 Individuals > 4y - 2011 - Médiamétrie / Médiamat1 HD1 launched in Q4 201224
Bouygues — Investors presentation – May 2013 13
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 25
26
Bouygues — Investors presentation – May 2013 14
3rd telecom operator in France Mobile commercial launch in 1996, Fixed broadband commercial launch in 2008
11.3 million mobile customers at end-December 2012 for a 15% market share
1.8 million fixed broadband customers at end-December 2012 for almost 8% market share
BOUYGUES TELECOM: profile
A network of 650 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)
Fi “S W 1” ff f l h €2 (B&YOU) First “SoWo1” offer for less than €25 (B&YOU)
2012 key figures €5.2bn revenue
-€16m net result2
9,700 employees1SIM-only/web-only 2Attributable to the group
27
A strong mobile network 15,000 sites deployed covering 99% of the French population in 2G / 96% in 3G+ / 60% in H+
4G network open comercially in 10 towns pending the national launch
BOUYGUES TELECOM: technology and innovation
40% of the population having access to 4G on 1 October 2013
Access to spectrum secured to innovate on mobile services in the future
A capacity of 76 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
7 million households eligible for very-high-speed thanks to Numericable wholesale agreement
Bbox Sensation
The most advanced set top box on the market, compatible with all technologies (ADSL, cable, fibre)28
Bouygues — Investors presentation – May 2013 15
BOUYGUES TELECOM: facing a challenging mobile market
A stage-by-stage transformation of the consumer mobile market in 2011/2012
Increasing cost of handsets, changes in usages (data, etc.)
Launch of Free Mobile in early 2012
New market segmentation: “SoWo1” vs. “Offers with services" (tailored offers with a handset and customer support)
Sharp fall in the market prices
Bouygues Telecom’s objective: transform the company while recovering leadership on innovation
1SIM-only/web-only offers 29
Expand market share in the fixed broadband market Market growing both in volume and value
Good positioning on the very high speed broadband market414
627
BOUYGUES TELECOM: opportunitiesFixed broadband sales from
network (m€)1
+51%
Good positioning on the very high speed broadband market 18% market share (289,000 very high speed customers at end-December 2012)
Launch of the new Bbox Sensation set top box in September 2012
Distribution partnership signed with Darty in July 2012
Satisfy the increasing demand for data traffic (volume and speed) C t l ith th i l f 4G
243
2010 2011 2012
Create value with the arrival of 4G
Seize opportunities in B2B markets : take advantage of the €15bn2 corporate market opening up to competition Major existing corporate clients include BNP Paribas, Lafarge, Foncia etc.
1Sales from network excluding ideo discount 2Estimate by Arcep and Bouygues Telecom30
Bouygues — Investors presentation – May 2013 16
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
Q1 2013 FIGURES Slide 32
GROUP OUTLOOK Slid 64 GROUP OUTLOOK Slide 64
APPENDIX Slide 70
31
Highlights of Q1 2013
The Bouygues group delivered a good commercial performance in Q1 2013 in a challenging economic and competitive environmentchallenging economic and competitive environment...
...and stepped up its adaptation plans
Like every year, Q1 operating results are not indicative of the Group’s yearly fperformance
32
Bouygues — Investors presentation – May 2013 17
Highlights of Q1 2013: commercial performance (1/3)
Good start of the year for the construction Bouygues Immobilier
Order book at the construction businesses
Bouygues Construction€m
businesses Order book at end-March 2013: €27.8bn, up 3%
Strong international presence: 45% of Bouygues Construction and Colas order book, o/w 40% in emerging markets
14,668 16,727 17,331
2,2693,005 2,890
6,9947,254 7,531 +4%
-4%
+4%
+3%
€23.9bn€27.0bn €27.8bn
Colas
33
14,668
End-March 2011
End-March 2012
End-March 2013
Highlights of Q1 2013: commercial performance (2/3)
Improved audience ratings1 at TF1
28.4
23.5 3.5 2.2 0.4
France Television
TF1 Group
TF1 TMC NT1 HD1
18 3
25.6 3.8 3.0 0.6
Individuals aged ≥ 4
Var. vs. Q1 2012
Women aged < 50(2)
+1.1 pts
-1 5 pts
29.6 33.0
Var. vs. Q1 2012
+0.7 pts
-2 4 pts
In %
14.3
28.4
M6 Group
Group
21.0
18.3
34(1) Source Médiamétrie(2) “Women aged under 50 purchasing decision-makers”
1.5 pts
-0.3 pts
2.4 pts
-0.7 pts
Bouygues — Investors presentation – May 2013 18
Highlights of Q1 2013: commercial performance (3/3)
Good commercial resilience for Bouygues TelecomQ1 2013 net adds yg Stable mobile customer base and growing plan customer
base despite Bouygues Telecom’s higher prices versus Orange and SFR during the entire quarter
Continued momentum at B&YOU
Solid fixed net adds
QMobile subscribers
+20kPlan subscribers
+190kB&YOU subscribers
+335k
Fixed subscribers
35
+45k
Highlights of Q1 2013: stepping up adaptation plans
Colas The new organization for the roads activity in France is being implemented according to plan
TF1 TF1 Phase II of the optimisation plan aimed at generating recurring savings of €85m in 2014 is being
accelerated
Additional cost cutting measures for 2013 are being prepared in response to the advertising market deterioration
Bouygues Telecom The measures taken in 2012 will secure €400m of cost savings in the Mobile activity in 2013
instead of the €300m planned initially
The additional actions decided at the beginning of 2013 in order to continue transformingBouygues Telecom are in progress
Focus on breakthrough in two domains: the technical assets and the marketing of plans with services36
Bouygues — Investors presentation – May 2013 19
€ million Q1 2012 Q1 2013 Change
Sales 6,985 6,698 -4%1
Group key figures
Current operating income 82 (76) -€158m
Net income attributable to the Group 35 (42) -€77m
(1) Down 5% like-for-like and at constant exchange rates
Like every year, Q1 operating results are not indicative of the Group’s yearly performance
Both TF1 and Bouygues Telecom results reflect a tough environment and a difficult base of comparison
37
Group financial position
€ millionEnd-March
2012
End-March
2013Change
End-Dec. 2012
Change
Ti ht t l f t d bt d M h 2012
Shareholders' equity
Net debt
Net gearing
9,689
5,324
55%
9,927
5,007
50%
+€238m
-€317m
-5 pts
10,078
4,172
41%
-€151m
+€835m
+9 pts
Tight control of net debt versus end-March 2012
As usual, Q1 net debt is impacted by Colas’ seasonality
38
Bouygues — Investors presentation – May 2013 20
(3 862) (4 172)(3 872)
Net cash at31/03/2013
Net cash at 31/12/2012
€m
Change in net cash position (1/2)
( )
(4,172) (4 172) (4 212) (4 286)(5 007) (5,007)
Issue & buyback of shares Operation
Acquisitions/Disposals1
-40 -74 -721-40
Q1 2012 (3,862) -7 -772 -683(2) (5,324)
(1) Including scope effects and the impacts on shareholders’ equity(2) 4G frequencies (800 MHz band)
39
Change in net cash position (2/2)
Net cash flow1
+185
€
Net capital expenditure
-297(2)
Change in the operating 3
Breakdown of operation
‐303€m
-721
WCR3 & other-609
Q1 2012 +323 -239(4) -856 -772
(1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Excluding capitalised interest related to 4G frequencies for €11m that are recorded in “others” (3) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets (4) Excluding investment on 4G frequencies (€683m on the 800 MHz band) 40
Bouygues — Investors presentation – May 2013 21
Contribution of business areas to Group net capital expenditure
€ million Q1 2012 Q1 2013 Change
Bouygues Construction 35 24 -€11m
Bouygues Immobilier 2 2 =
Colas 53 56 +€3m
TF1 5 6 +€1m
Bouygues Telecom 145(1) 209(2) +€64m
Holding company and other (1) 0(2) +€1m
Total excluding frequencies 239 297(2) +€58m
4G f i 683 11 €672
41
4G frequencies 683 11 -€672m
TOTAL 922 308 -€614m
Bouygues Telecom shifted its investments forward into the first quarter
(1) Excluding 4G frequencies in the 800 MHz band for €683m(2) Excluding capitalised interest related to 4G frequencies for €11m at Bouygues group level (for €4m at Bouygues Telecom level and €7m at the holding company level)
Construction businesses
42
Bouygues — Investors presentation – May 2013 22
BOUYGUES CONSTRUCTION: Q1 2013 overview
Good level of order intake Similar level of order intake as previous years excluding
the Paris Law Courts contract signed for €823m in Q1 20128232,800 2,813
3,689(2)
2,787
Order intake (€m)1
International
France
Strong order book providing visibility Order book at end-March 2013 up 4% at €17.3bn The sales secured for FY 2013 cover 89% of the sales
target
Strong presence in international markets
1,270 1,219 1,238 1,112
1,530 1,594 1,628 1,675
Q1 2010 Q1 2011 Q1 2012 Q1 2013
(1) Definition: contracts are booked as order intakes at the date they take effect
(2) Q1 2012 order intake includes Paris Law Courts contract for €823m
Strong presence in international markets 43% of the order book outside of France Seizing opportunities in emerging countries
Photovoltaic power plants in Thailand First contract in Myanmar
43Star City, Yangon, Myanmar
2 736 2,702 2,595
For execution in Y For execution in Y+1For execution from Y+2 to Y+5Long-term order book (beyond Y+5)
BOUYGUES CONSTRUCTION: key figures
(1) Definition: contracts are booked as order intakes at the date they take
Order intake (€m)1 Order book at end-March 2013International
France+4% YoY
ANNEX
€17.1bn€16.7bn €17.3bn8232,800 2,813
3,689(2)
2,787
-24% €m
6,686 7,102
4,890
8,486
5,052
2,4155,959
2,5822,736 ,
End-March 2012 End-Dec 2012 End-March 2013
effect
(2) Q1 2012 order intake includesParis Law Courts contract for €823m
A i
€ million Q1 2012 Q1 2013 Change 2013 target
1,270 1,219 1,238 1,112
1,530 1,594 1,628 1,675
Q1 2010 Q1 2011 Q1 2012 Q1 2013
44
France57%
Europe (excl.
France) 18%
Asia & Middle East
16%
Africa5%
Americas 4%Sales 2,380 2,451 +3%3 10,750
o/w France 1,296 1,318 +2%o/w international 1,084 1,133 +5%
Current operating profitCurrent operating margin
793.3%
853.5%
+€6m+0.2 pts
Net profit att. to the Group 52 60 +€8m
(3) Up 1% like-for-like and at constant exchange rates
Bouygues — Investors presentation – May 2013 23
BOUYGUES IMMOBILIER: Q1 2013 overview
Q1 2013 commercial activity once again highlights Bouygues Immobilier's expertise in green property developments Rehabilitation contract for a 41,420 m2 building for AG2R La Mondiale
Reservations (€m)1
Commercial property
Residential property Rehabilitation contract for a 41,420 m building for AG2R La Mondiale
Residential reservations are up 4% but do not change the full year expectations of a 2013 market at best stable in volume
At €2.9bn, the order book secures 14 months of sales 293 306
116 131
409 437
Titre de l'axe
Residential property
+7%
+13%
+4%
45
Q1 12 Q1 13
(1) Definition: residential property reservations are reported netof cancellations. Commercial property reservations are firmorders which cannot be cancelled (notarised deeds of sale)
Rehagreen, Issy-les-Moulineaux, France
2 616 2 357
389 600 646
3,005 2,957 2,890
Order book
BOUYGUES IMMOBILIER: key figuresReservations1
Commercial propertyResidential property
€m
-4% YoY
ANNEX
116 131
201
41
223
409 437
636
353
870
tre de l'axe
+7%
2,616 2,357 2,244
End-March 2012
End-December 2012
End-March 2013
(1) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale)
€ million Q1 2012 Q1 2013 Change 2013 target
S l 472 526 11%2 2 500
293 306435
312
647116 131 41
Q1 12 Q1 13 Q2 12 Q3 12 Q4 12
Tit
46
Sales 472 526 +11%2 2,500o/w residential 434 444 +2%o/w commercial 38 82 x2
Current operating profitCurrent operating margin
35
7.4%
39
7.4%
+€4m=
Net profit attr. to the Group 22 20 -€2m
(2) Up 11% like-for-like and at constant exchange rates
Bouygues — Investors presentation – May 2013 24
COLAS: Q1 2013 overview
Order book (€m)
Mainland France
International and French overseas territories
Solid order book at €7.5bn, up 4%, with a good dynamic in French order intakes
Q1 2013 does not change the 2013 expected outlook
3,578 3,994
3,676 3,537
7,254 7,531+4%
-4%
+12%
Q1 2013 does not change the 2013 expected outlook The French market is expected to be close to the 2012 level and
activity should be stable abroad
Continued dynamic in the rail activity RFR high speed railway network in Tunis (€86m) First high speed train line in Morocco (€124m, not yet included in the
order book)
47
End-March2012
End-March2013
Rail track renewalWest Coast, United Kingdom
COLAS: key figures
Mainland FranceInternational and French overseas territories
7 5317,856+4% € million Q1 2012 Q1 2013 Change
2013
Order book (€m)
ANNEX
3,578 3,994 4,021 3,708 3,467
3,6763,537 3,835
3,298 3,237
7,254 7,5317,006
6,704
-4%
+12%
€ million Q1 2012 Q1 2013 Changetarget
Saleso/w Franceo/w international
2,2091,440
769
2,1091,372
737
-5%1
-5%-4%
13,200
Current operating income
(186) (203) -€17m
Net income attr. to the Group
(127) (131) -€4m
48
,
End-March2012
End-March2013
End-June 2012
End-June 2013
End-Sept 2012
End-Sept 2013
End-Dec 2012
End-Dec 2013
(1) Down 5% like-for-like and at constant exchange rates
Bouygues — Investors presentation – May 2013 25
CONSTRUCTION BUSINESSES: Q1 2013 operating results
Current operating income (€ million) Q1 2012 Q1 2013 Change
Construction businesses (72) (79) -€7m
Like every year, the first quarter operating results are not indicative of full year performance due to Colas’ seasonality
Q1 2013 operating results
Sales contribution€5bn (=)
Current operating income-€79m (-€7m)
o/w Bouygues Construction o/w Bouygues Immobiliero/w Colas
7935
(186)
8539
(203)
+€6m+€4m
-€17m
Poor weather conditions in March 2013 explain the declining results at Colas compared to Q1 2012
Construction businesses outlook for 2013 is confirmed
49
Net income contribution-€46m (+€3m)
50
Bouygues — Investors presentation – May 2013 26
TF1: Q1 2013 overview
Q1 sales reflect the tough economic and competitive environment Group advertising revenues down 12% vs. Q1 2012
Q1 2013 key figures Operating income impacted by
The decrease in advertising revenues A tough basis of comparison: Q1 2012 operating profit
included €27m of tax reimbursement
Phase II of the optimisation plan is being implemented and accelerated
Q1 2013 key figuresTF1 group audience share1
29.6%
Sales€566m (-10%)
Current operating income-€16m (-€72m)
Net income att to the Group and accelerated €15m recurring savings have already been secured in
2012 and €7m in Q1 2013 out of the €85m target by 2014
Additional cost cutting measures for 2013 are being prepared in response to the advertising market deterioration
51
Net income att. to the Group -€6m (-€41m) “The Voice”, the TV show
(1) Individuals aged 4 and over – Source Médiamétrie
A 1.1 pts increase in audience share for the TF1 group in Q1 2013
A 0 6 t i i di h f th TF1 h l
TF1: key figures
3.5 3.52.1 2.2
0.4
HD1
NT1
TF1 group audience share1
28.5%29.6%
ANNEX
A 0.6 pts increase in audience share for the TF1 channel
€ million Q1 2012 Q1 2013 Change 2013 target
Sales 629 566 -10%2 2,500
22.9 23.5
Q1 2012 Q1 2013
TMC
TF1
(1) Individuals aged 4 and over – Source Médiamétrie
Saleso/w TF1 group advertising
629419
566369
10%-12%
2,500
Current operating income 56 (16) -€72m
Operating income 56 (16) -€72m
Net income att. to the Group 35 (6) -€41m
(2) Down 10% like-for-like and at constant exchange rates 52
Bouygues — Investors presentation – May 2013 27
53
BOUYGUES TELECOM: market overview in Q1 2013
Two major developments in the mobile market at the beginning of 2013 Sharp price cuts in plans with services have been carried out by competitors
The "SoWo1" segment continues to show substantial growth and is now split into three sub-segments (€0 to €5; around €10; around €20)
Fixed broadband market Volumes expected to be down in Q1 2013p Q
Tougher competition regarding premium box Orange has launched LiveBox Play in February
54(1) "SoWo": SimOnly/WebOnly
Bouygues — Investors presentation – May 2013 28
BOUYGUES TELECOM: marketing initiatives
• €3.99/month for intensive users of SMS/MMS with 2 hours of calls• B&YOU is now present in the 3 sub-segments of the SoWo market
L
Introduction of a new B&YOU planIn a challenging environment, Bouygues Telecom keeps on adapting its offerings
• Lower rates for households • Limited edition plans to experience 4G
Launch of new Sensation plans
• Opening in 10 towns (Lyon Toulouse Strasbourg ) pending the national launch
Commercial opening of the 4G network
55(1) Awarded Best TV Experience Enhancement at the TV Connect Industry Awards on 20 March 2013
• Opening in 10 towns (Lyon, Toulouse, Strasbourg…) pending the national launch• 40% of the population having access to 4G on 1 October 2013 through premium plans
• Bbox Tab1, Bbox experience on your tablet• Bbox Entreprises designed for small businesses
Innovations of Bbox Sensation
BOUYGUES TELECOM: Q1 2013 overview
Good commercial resilience in an extremely challenging environment Growth in contract net adds thanks to good B&YOU dynamic
Net plan subscriber adds of 190,000
Q1 2013 key figuresMobile subscriber base
11,271,000 Net plan subscriber adds of 190,000 B&YOU: 13% of the total mobile subscriber base at end-Q1 2013
Continued momentum in the fixed activity 68,000 new Bbox customers in Q1 2013, excluding Darty Telecom
Repricing1 within the retail plan subscriber base: 66% at end-Q1 2013
Results in line with expectations and therefore full year outlook remains
11,271,000B&YOU subscriber base
1,413,000Fixed subscriber base
1,891,000
Sales€1.1bn (-16%)
EBITDA€212m ( €84m)
“Sensation” offers advert
Results in line with expectations and therefore full year outlook remains unchanged Tough basis of comparison since Q1 2012 had not yet been impacted by
the market disruption Sales were up 6% excluding MTR cuts in Q1 12 and EBITDA was only down €25m vs. Q1 11
Sales from network are down 13% and down 7% excluding MTR cuts
56
€212m (-€84m)Current operating profit
€28m (-€79m)Net profit att. to the Group
€16m (-€49m)
(1) The number of retail customers subscribing to a plan whose price has been revised since January 2012 as a percentage of the total retail plan subscriber base
Bouygues — Investors presentation – May 2013 29
BOUYGUES TELECOM: mobile business performance
Growth in plan subscribers Net plan subscriber adds of 190,000 in Q1 2013
ANNEX
190
55
188
285
Q1 12 Q1 13 Q2 12 Q3 12 Q4 12
Trend in plan subscriber base1‘000
'000
59253
452625
1,078
1,413
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
B&YOU subscriber base Good momentum at B&YOU
13% of mobile subscribers at end-Q1 2013 At end-March 2013, 60% of B&YOU
customers are on the €19.99 plan
-210
(1) Plan subscribers: total subscriber base excluding prepaid customers according to the Arcep definition(2) The number of retail customers subscribing to a plan whose price has been revised since January 2012 as a percentage of the total retail plan subscriber base 57
11%27%
40%
58% 66%
End-March 12 End-June 12 End-Sept. 12 End-Dec. 12 End-March 13
% repricing2 within the retail plan subscriber base
Steady upward trend of repricing2 within the retail plan subscriber base: 66% at end-Q1 2013
BOUYGUES TELECOM: fixed broadband business performance
Continued momentum at the fixed activity Net Bbox subscriber adds of 68,000 in Q1 2013
excluding Darty Telecom Total fixed broadband subscriber base of 1.9 million
Net growth of fixed broadband business2
359(3)‘000
ANNEX
Total fixed broadband subscriber base of 1.9 million at end-Q1 2013
Strong growth posted by very-high-speed1
Subscriber base of 312,000 customers
Very-high-speed1 Bbox customers represent 25% of gross sales on average in Q1 2013
Sales from the fixed broadband network4
197 187€m
8845
70 88
Q1 12 Q1 13 Q2 12 Q3 12 Q4 12
Sales: +49% in Q1 2013 vs. Q1 2012
(1) Arcep definition: subscriptions with peak downstream speed higher or equal to 30 Mbit/s (2) Includes broadband and very-high-speed subscriptions (3) 77,000 customers excluding integration of Darty Telecom (4) Sales from the network excl. the ideo discount 58
132 139169
187
Q1 12 Q1 13 Q2 12 Q3 12 Q4 12
+49%
Bouygues — Investors presentation – May 2013 30
BOUYGUES TELECOM: key figures
€ million Q1 2012 Q1 2013 Change 2013 target
Sales 1,366 1,148 -16%(1) 4,850Sales from network 1,220 1,063 -13%
EBITDA 296 212 -€84m
ANNEX
(1) Down 16% like-for-like and at constant exchange rates
EBITDAEBITDA/sales from network
29624.3%
21219.9%
€84m-4.4 pts
Current operating profit 107 28 -€79m
Operating profit 107 28 -€79m
Net profit attributable to the Group 65 16 -€49m
Impact of mobile termination rates on sales from network
“Sensation” offers advert
59
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Sales from network (€ million) 1,220 1,166 1,132 1,113 1,063
YoY change in sales from network -3% -11% -10% -11% -13%
YoY change in sales from network excl. MTR2 +6% -2% -4% -5% -7%
(2) Mobile Termination Rates
BOUYGUES TELECOM: results of the 2012 transformation plan Cumulative €238m of cost savings generated in the mobile activity through Q1 13
The measures taken in 2012 will secure €400m of savings in the mobile business in 2013 instead of the €300m initially planned
Between Q1 11 and Q1 13, costs in the mobile activity are €109m lower thanks to the transformation plan Of hi h €87 t i t d i Q1 13
238
2013/2011 change€m
Fixed broadband
costs
Mobile operating
costs
Mobile marketing
costs
Cumulative costs savings in the mobile activity since end December 2011
€m
Of which €87m cost savings were generated in Q1 13
Fixed broadband costs are down 16% in Q1 2013 vs. Q4 2012
22
94 104151
End-March 12 End-June 12 End-Sept 12 End-Dec 12 End-March 13
60
- 68
- 41
+ 35
€109m of cost savings in the mobile activity between Q1 11
and Q1 13
Bouygues — Investors presentation – May 2013 31
Condensed consolidated income statement (1/2)
€ million Q1 2012 Q1 2013 Change
Sales 6,985 6,698 -4%
Current operating income 82 (76) nm
Other operating income and expenses 0 0 nm
Operating income 82 (76) nm
Cost of net debt (79) (79) =
15%
61
o/w financial income
o/w financial expenses
13
(92)
11
(90)
-15%
-2%
Other financial income and expenses (1) (8) nm
Condensed consolidated income statement (2/2)
€ million Q1 2012 Q1 2013 Change
Income tax expense (5) 52 nmIncome tax expense (5) 52 nm
Share of profits and losses from associates 62 64 +3%
Net income 59 (47) nm
Net income attr. to non-controlling interests1 (24) 5 nm
Net income attributable to the Group 35 (42) nm
62
Net income attributable to the Group 35 (42) nm(1) Formerly called “minority interests”
Bouygues — Investors presentation – May 2013 32
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
Q1 2013 FIGURES Slide 32
GROUP OUTLOOK Slid 64 GROUP OUTLOOK Slide 64
APPENDIX Slide 70
63
Outlook for the construction businesses (1/2)
The world economic environment remains challenging
However some bright spots in France for 2013 However, some bright spots in France for 2013 The creation of a public bank to finance local authorities
The municipal elections (to be held in 2014)
The government's strong backing for new home construction
Furthermore, the construction businesses enjoy a number of major strengths, j y j g Good visibility on future activity thanks to the order book
Diversity of business activities and expertise
A strong international presence
They are highly adaptable64
Bouygues — Investors presentation – May 2013 33
Outlook for the construction businesses (2/2)
Bouygues Construction The sales secured for FY 2013 cover 89% of the sales target
45% of the order book is on international markets, particularly in areas less affected by the crisis such as Hong Kong, Qatar, Canada, etc.
Profitability will continue to be favoured over volumes
Bouygues Immobilier The order book represents 14 months of sales
The residential property market is expected to be stable at best in 2013.“Green commercial property" development opportunities will continue to materialise
Colas The year started under good conditions thanks to the order book
The French market is expected to be close to the 2012 level and activity should be stable abroad
Colas will benefit from action plans aimed at improving its competitiveness
65
Outlook
Outlook for TF1 Advertising spend is expected to fall in a challenging economic environment
Phase II of the optimisation plan is to be stepped up
Outlook for Bouygues Telecom The measures taken in 2012 will secure €400m of savings in the mobile business in
2013 instead of the €300m initially planned
The additional actions decided at the beginning of 2013 in order to continue transforming Bouygues Telecom’s business model are in progress Focus on breakthrough in two domains: the technical assets and the marketing of plans
with services
2013 guidance confirmed: stabilization of EBITDA and improvement of EBITDA minus Capex from 2013
66
Bouygues — Investors presentation – May 2013 34
2013 outlook2013 sales target
€ million 2012In
FebruaryIn
MayChange
2013/2012
Bouygues Construction 10 640 10 700 10 750 +1%Bouygues Construction 10,640 10,700 10,750 +1%
Bouygues Immobilier 2,396 2,500 2,500 +4%
Colas 13,036 13,200 13,200 +1%
TF1 2,621 2,540 2,500 -5%
Bouygues Telecom 5,226 4,850 4,850 -7%
Holding company and other 123 120 120 nmHolding company and other 123 120 120 nm
Intra-Group elimination (495) (460) (470) nm
TOTALo/w Franceo/w international
33,54722,30811,239
33,45022,25011,200
33,45022,25011,200
===
67
Conclusion
Bouygues has once again proven in 2012 that it is highly adaptable in a challenging economic and competitive environment
The Group will continue to draw on its fundamentals
A high level of commercial flexibility
The ability of its business areas to generate cash flow on a regular basis
A robust financial structure
The Group’s priority is to continue and accelerate the action plans in all its The Group’s priority is to continue and accelerate the action plans in all its business areas Under those conditions 2012 should mark the low point in Bouygues group’s
profitability
68
Bouygues — Investors presentation – May 2013 35
THE BOUYGUES GROUP Slide 4
THE BUSINESSES Slide 13
Q1 2013 FIGURES Slide 32
GROUP OUTLOOK Slid 64 GROUP OUTLOOK Slide 64
APPENDIX Slide 70
69
Condensed consolidated income statement (1/2)
€ million 2011 2012 Change
Sales 32,706 33,547 +3%
ANNEX
Current operating profit 1,819 1,286 -29%
Other operating income and expenses 38(1) (166)2 nm
Operating profit 1,857 1,120 -40%
Cost of net debt (277) (290)
62+5%
o/w financial income
o/w financial expenses
82
(359)
62
(352)
-24%
-2%
Other financial income and expenses (13) 11 nm
(1) €38m of non-current income related to an asset disposal at Bouygues Telecom (2) Including €200m of non-current charges at Bouygues Telecom and TF1 and €34m of capital gains on asset disposals at Bouygues Telecom
70
Bouygues — Investors presentation – May 2013 36
Contribution of business areas to Group net cash flow
€ million 2011 2012 Change
Bouygues Construction 425 486 +€61m
ANNEX
Bouygues Immobilier 146 120 -€26m
Colas 728 723 -€5m
TF1 258 206 -€52m
Bouygues Telecom 1,067 780 -€287m
Holding company and other (104) (158) -€54m
TOTAL 2,520 2,157 -€363m
Net cash flow = cash flow - cost of net debt - income tax expense
71
Condensed consolidated income statement (2/2)
€ million 2011 2012 Change
Income tax expense (528) (330) -38%
ANNEX
Income tax expense (528) (330) -38%
Share of profits and losses from associates 198 217(1) +10%
Net profit 1,237 728 -41%
Minority interests (167) (95) -43%
Net profit attributable to the Group 1 070 633 41%Net profit attributable to the Group 1,070 633 -41%(1) Including non-current charges of €53 million related to the dilution loss further to the capital increase at Alstom
72
Bouygues — Investors presentation – May 2013 37
Sales by business area
€ million 2011 2012 Change
Bouygues Construction 9,802 10,640 +9%
Bouygues Immobilier 2,465 2,396 -3%
ANNEX
yg , ,
Colas 12,412 13,036 +5%
Sub-total of the sales generated by the construction businesses1 24,375 25,753 +6%
TF1 2,620 2,621 =
Bouygues Telecom 5,741 5,226 -9%
Holding company and other 120 123 nmHolding company and other 120 123 nm
Intra-Group elimination (454) (495) nm
TOTALo/w Franceo/w international
32,70622,60110,105
33,54722,30811,239
+3%-1%
+11%
(1) Total of the sales contributions (after eliminations within the construction activities) 73
Contribution of business areas to Group EBITDA
€ million 2011 2012 Change
Bouygues Construction 549 614 +€65m
ANNEX
Bouygues Immobilier 181 186 +€5m
Colas 934 832 -€102m
TF1 357 318 -€39m
Bouygues Telecom 1,272 908 -€364m
Holding company and other (51) (36) +€15m
TOTAL 3,242 2,822 -€420m
EBITDA = current operating profit + net depreciation and amortisation expense + charges to net provisions and impairment losses -reversals of unutilised provisions
74
Bouygues — Investors presentation – May 2013 38
Contribution of business areas to Group current operating profit
€ million 2011 2012 Change
Bouygues Construction 353 364 +€11m
ANNEX
Bouygues Construction 353 364 €11m
Bouygues Immobilier 201 179 -€22m
Colas 466 406 -€60m
TF1 283 258 -€25m
Bouygues Telecom 561 122 €439mBouygues Telecom 561 122 -€439m
Holding company and other (45) (43) +€2m
TOTAL 1,819 1,286 -€533m
75
Contribution of business areas to Group net profit
€ million 2011 2012 Change
Bouygues Construction 226 267 +€41m
Attributable to the Group
ANNEX
Bouygues Immobilier 120 107 -€13m
Colas 324 291 -€33m
TF1 80 59 -€21m
Bouygues Telecom 331 (14) -€345m
Alstom 190 240 +€50m
Holding company and other (201) (317)1 -€116m
TOTAL 1,070 633 -€437m(1) Including non-current charges of €53 million related to the dilution loss further to the capital increase at Alstom 76
Bouygues — Investors presentation – May 2013 39
Condensed consolidated balance sheet
€ millionEnd-Dec
2011End-Dec
2012Change
ANNEX
Non-current assetsCurrent assetsTOTAL ASSETS
19,44215,48034,922
20,17016,58436,754
+€728m+€1,104m+€1,832m
Shareholders’ equityNon-current liabilities
9,6788,875
10,0789,845
+€400m+€970m
Current liabilitiesTOTAL LIABILITIES
16,36934,922
16,83136,754
+€462m +€1,832m
Net debt 3,862 4,172 +€310m
77
Change in net cash position in 2012 (1/2)
Net cash at 31/12/2011 (€m)
Net cash at 31/12/2012
ANNEX
-123
122
-608 599 -726 426
(3,862) (4,172)(3,872)
Acquisitions/ disposals1
4G frequencies800 MHz2 Exceptional
disposals3
Issue & buyback of Bouygues
shares Dividendspaid Operation
426
2011 (2,473) -122 -1,345 -694 1,000 (3,634) -228 0 (3,862)
(1) Including scope effects and the impacts on shareholders’ equity(2) Including capitalised interest(3) Disposal of 20% stake in Eurosport and in the theme channels at TF1 as well as divestment of the tower business and three data centres at Bouygues Telecom 78
Bouygues — Investors presentation – May 2013 40
Net cash flow1
+2,157
Change in net cash position in 2012 (2/2)
€m
Net capital expenditure
-1,433(2)
Breakdown of operation
ANNEX
+599(2)
Change in the operating WCR3 & other
-125
(2)
+599( )
(1) Net cash flow = cash flow - cost of net debt - income tax expense (2) 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 (3) Operating WCR: WCR relating to operating activities + WCRrelating to net liabilities related to property, plant & equipment and intangible assets (4) Excluding investment on 4G frequencies (€228m on the 2,600 MHz band)
2011 +2,520 -1,658(4) +138 +1,000
79
Contribution of business areas to Group net cash flow
€ million 2011 2012 Change
Bouygues Construction 425 486 +€61m
ANNEX
Bouygues Immobilier 146 120 -€26m
Colas 728 723 -€5m
TF1 258 206 -€52m
Bouygues Telecom 1,067 780 -€287m
Holding company and other (104) (158) -€54m
TOTAL 2,520 2,157 -€363m
Net cash flow = cash flow - cost of net debt - income tax expense
80
Bouygues — Investors presentation – May 2013 41
Contribution of business areas to Group net capital expenditure
€ million 2011 2012 Change
Bouygues Construction 268 159 -€109m
Bouygues Immobilier 12 13 +€1m
ANNEX
Bouygues Immobilier 12 13 +€1m
Colas 414 345 -€69m
TF1 108 45 -€63m
Bouygues Telecom 859(1) 869(2) +€10m
Holding company and other (3) 2(3) +€5m
Total excluding exceptional items 1,658(1) 1,433(2) -€225m
Exceptional items 228 519 +€291m
TOTAL 1,886 1,952 +€66m
(1) Excluding 4G frequencies in the 2,600 MHz band for €228m(2) Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band (acquisition cost and capitalised interest for €726m
at Bouygues group level and for €696m at Bouygues Telecom level) and asset disposals for €207m (3) Excluding the capitalised interest on the 4G frequencies for €30m 81
Contribution of business areas to Group free cash flow
€ million 2011 2012 Change
Bouygues Construction 157 327 +€170m
Bouygues Immobilier 134 107 -€27m
ANNEX
Bouygues Immobilier 134 107 €27m
Colas 314 378 +€64m
Sub-total of the free cash flow of the construction activities 605 812 +€207m
TF1 150 161 +€11m
Bouygues Telecom 208(1) (89)2 -€297m
Holding company and other (101) (160)3 -€59m
TOTAL 862(1) 724(2) -€138mFree cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR
(1) Excluding 4G frequencies in the 2,600 MHz band for €228m
(2) Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band (acquisition cost and capitalised interest for €726m at Bouygues group level and for €696m at Bouygues Telecom level) and asset disposals for €207m
(3) Excluding the capitalised interest on the 4G frequencies for €30m82
Bouygues — Investors presentation – May 2013 42
Net cash by business area
€ millionEnd-Dec
2011End-Dec
2012Change
ANNEX
Bouygues Construction 2,869 3,093 +€224m
Bouygues Immobilier 507 358 -€149m
Colas 28 (170) -€198m
TF1 (40) 237 +€277m
Bouygues Telecom (581) (650) -€69m
Holding company and other (6,645) (7,040) -€395m
TOTAL (3,862) (4,172) -€310m
83
Financing
10,000
Debt repayment schedule at end December 2012
€m Available cash: €9.7 billion
ANNEX
3,000
4,000
5,000
6,000
7,000
8,000
9,000Debt repayment schedule at end-December 2012
UndrawnMLT
credit facilities€5.4bn
Cash€4 3bn
0
1,000
2,000€4.3bn
84
Bouygues — Investors presentation – May 2013 43
Group organisation chart
Roadworks Building / Civil Engineering Property(1984) (1952) (1956)
ANNEX
96.6 % 100 % 100 %
CONSTRUCTION
(1994)
29.4% stakePOWER - TRANSPORT
(2006)
Figures as of 31 December 2012
43.7 %
TELECOMS
90.5 %
MEDIA
(1994) (1987)
85
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 200686
Bouygues — Investors presentation – May 2013 44
52%
22%
16%
4%6%
FranceEurope (excl. France)Asia and Middle eastAmericasAfrica
43%
43%
14% Building and Civil Works France
Building and Civil Works International
Electrical Contracting
CONSTRUCTION BUSINESSES: 2012 sales breakdownANNEX
Africa
94%
6%
France
Europe
89%
11%
Residential
Commercial
18%
15%
67%
Specialty activites
Building materials
Roadworks
20%
15%56%
9% North America
Europe (excl. France)
France
Others
87
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
Stade Vélodrome PPP in Marseille Hospital PPPs (Bourgoin-Jailleu, Caen etc.) Prison PPPs (Réau, Annœullin, Nantes, etc.) PPPs in the education sector (Paris 4, Versailles Saint-
Quentin universities) Urban development PPPs (Boulogne and Sèvres street
lighting, broadband network in Finistère, etc.)
ANNEX
United Kingdom 18 health, education, social housing and street lighting PFI contracts
(incl. Home Office, Broomfield hospital, social housing in Brent, etc.) New Tyne Tunnel concession Portsmouth road maintenance PFI MAC-type road and railway maintenance contracts
C ti
South Korea Machang Bay Bridge
concession
Canada Hospital PPP in British Columbia Royal Canadian Mounted Police
headquarters PPP L d i
Singapore Sports Hub PPP
GermanyRostock tunnel concession
Hungary M5 motorway concession M6-M60 motorway PPP
g g, , ) French Ministry of Defence, Paris Paris Law courts complex
Croatia Istria motorway
concession phases 1 and 2
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
88
Bouygues — Investors presentation – May 2013 45
BOUYGUES TELECOM: key indicatorsPlan Prepaid Total subscriber base
Q4 2012 Q1 2013 Q4 2012 Q1 2013 Q4 2012 Q1 2013Subscribers SIM cards (‘000) 9,428 9,618 1,823 1,653 11,251 11,271SIM cards (% mix) 83 8% 85 3% 16 2% 14 7%
ANNEX
SIM cards (% mix) 83.8% 85.3% 16.2% 14.7%Fixed broadband subscriber base1 (‘000) 1,846 1,891
Unit data – mobile subscribersARPU (€/year/subscriber)2 443 418 123 117 382 364Data usage (MB/month/subscriber)3 193 219SMS usage (SMS/month/subscriber)4 397 403 130 124 346 353Voice usage (min/month/subscriber)4 436 451 133 140 378 395
Unit data – fixed subscribers2
Marketing costs5Q1 2012 Q1 2013
Marketing costs (€ million) 191 149
Marketing costs/sales from network 15.6% 14.0%
(1) Includes broadband and very-high-speed subscriptions according to the Arcep definition and Darty Telecom customers since Q3 2012
(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-machine SIM cards and excluding internet SIM cards
(5) Mobile and fixed subscriber acquisition and loyalty costs
ARPU (€/year/subscriber)2 389 391
89
BOUYGUES TELECOM: mobile termination rates
€ cents/minute for voice€ cents/unit for SMS
Voice termination rates SMS termination rates
At 1 July
At 1July
At 1 January
At 1July
At 1 January
At 1 July
At 1 Feb
At 1 July
At 1 July
ANNEX
€ cents/unit for SMS July 2010
July 2011
January 2012
July 2012
January 2013
July 2013
Feb 2010
July 2011
July 2012
Rates to Bouygues Telecom
3.40 2.00 1.50 1.00 0.80 0.80 2.17 1.50 1.00
% change -43% -41% -25% -33% -20% - -38% -31% -33%
Rates to Orange and SFR 3.00 2.00 1.50 1.00 0.80 0.80 2.00 1.50 1.00
R t t F M bil 1 60(1) 1 10 0 80 Arcep’s cost model for Rates to Free Mobile 1.60(1) 1.10 0.80 Arcep s cost model for new entrants
Bouygues Telecom differential 0.40 - - - - - 0.17 - -Free Mobile differential 0.60 0.30 -
(1) Effective from 1 August 2012
90
Bouygues — Investors presentation – May 2013 46
28 A t 2013 Fi t h lf 2013 l d i 7
CalendarANNEX
28 August 2013 First-half 2013 sales and earnings 7am
28 August 2013 First-half 2013 results presentation 11am
13 November 2013 Nine-month 2013 sales and earnings 5.45pm
All times are Central European Times
91
BUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTUREBUILDING THE FUTURE IS OUR GREATEST ADVENTURE
Valérie AGATHON, Director Investor Relations
Tel : +33 1 44 20 12 04
92
Tel : +33 1 44 20 12 04
e-mail : [email protected]
92
Corporate information : www.bouygues.comBOUYGUES – 32 avenue Hoche75378 Paris Cedex 08 - FRANCE