Bouygues Sa · EURONEXT:EN
Bouygues Sa — Merger or Acquisition (March 2020)
16 slides from Bouygues Sa's merger presentation, Mar 5, 2020
Slide 1: Project Saint Malo - Bouygues Telecom
PROJECT SAINT MALO BOUYGUES TELECOM THURSDAY 5 MARCH 2020 TEACHING
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking information and statements about the Bouygues group and its businesses. Forward-looking statements may be identified by the use of words such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements.
Slide 3: What is Saint Malo Project?
WHAT IS SAINT MALO PROJECT ? ◼ Roll-out of nationwide optical fiber infrastructure (FTTAa and FTTOb) ◼ Aiming to satisfy the growth in data usage on networks > Connect Bouygues Telecom’s network equipment (mobile antennas, central offices) > Market very-high-speed fixed broadband offers to businesse
Slide 4: Satisfy the growth in data usage on networks
SATISFY THE GROWTH IN DATA USAGE ON NETWORKS ⚫ BTOB, A STRATEGIC BUSINESS SEGMENT DEMANDING VERY-HIGH-SPEED FIXED BROADBAND OFFERS Very-high-speed required at all sites Network digitalization ⚫ CONTINUED GROWTH IN CUSTOMER DATA USAGE IN A GROWING MOBILE MARKET Postpaid Mobile Customers Data Traffic
Slide 5: How to cope with traffic growth?
HOW TO COPE WITH TRAFFIC GROWTH? HAVE MORE FREQUENCIES Participation in 3.5 GHz auction process INCREASE CAPACITY IN BACKBONE AND BACKHAUL NETWORK Metropolitan Offices and inside cities backhaul network already built in the very dense area ADD MORE SITES From 21,000 mobile sites in 2019 to 28,000 in
Slide 6: Roll-out of nationwide optical fiber infrastructure (FTTA and FTTO)
ROLL-OUT OF NATIONWIDE OPTICAL FIBER INFRASTRUCTURE (FTTA AND FTTO) ◼ Backhauling of mobile sites and central offices: capacity multiplied between 10 to 100 ◼ Expand FTTO and develop wholesale Backhaul and backbone network Access network Fibre to the antenna F ibre Mobile site (FTTA) Fibre to the of
Slide 7: Detailed Saint Malo infrastructure
DETAILED SAINT MALO INFRASTRUCTURE 3 STRUCTURAL ELEMENTS ◼ Up to 90 Metropolitan Offices ◼ Inside city backhaul network MO ◼ Inter-city lines Local backhaul network NRA/O NRA/O MO 10 km Local backhaul Inter-citylines Inter-city lines network NRA/O Inside Insidecity citybackhaul backhaulnetwork netwo
Slide 8: Saint Malo, the most efficient solution
SAINT MALO, THE MOST EFFICIENT SOLUTION Options OPTION A OPTION B - SAINT MALO ◼ Build a complete and shared infrastructure ◼ Build our own Metropolitan Offices and inside > No short term impact on FCF cities backhaul network > Lower opex in the long term vs option A > Few capex (25% to 30% of S
Slide 9: Saint Malo financial structure
SAINT MALO FINANCIAL STRUCTURE ⚫ FINANCIAL SCHEME ALLOWING BOUYGUES TELECOM TO ◼ Keep 49% of Saint Malo JV to take profit of value creation ◼ Limit the injection of capital Bouygues €30m Equity €31m Financing Cellnex Telecom 49% 51% Shareholder loan Debt (banks) Saint Malo JV Operations 30 years mas
Slide 10: Saint Malo key points
SAINT MALO KEY POINTS ⚫ A NATIONWIDE AND HIGH-CAPACITY OPTICAL FIBER INFRASTRUCTURE USED FOR ◼ Backhauling mobile sites and central offices (capacity multiplied between 10 to 100) ◼ Expanding FTTO and developing wholesale ⚫ A PRAGMATIC FINANCIAL SCHEME ◼ No short term impact on Free Cash Flow ◼ Poss
Slide 11: Bouygues Telecom's flexible FTTH access strategy
BOUYGUES TELECOM’S FLEXIBLE FTTH ACCESS STRATEGY Total premises on Area the marketa Horizontal infrastructure Vertical infrastructure • Joint investment: acquisition of Very Dense • 50% with CityFastb: fixed annual opex vertical infrastructure (capex) + cost 6.4m Area • 50% with SFR or Orange: capex
Slide 12: What is "Asterix Project"?
WHAT IS “ASTERIX PROJECT” ? ◼ Objective: speed up the roll-out of Bouygues Telecom’s FTTHa in the Medium Dense Area while optimizing its cost ◼ Currently, Bouygues Telecom accesses Orange’s FTTH vertical network in the Medium Dense Area > via joint investments by 5% tranche of completed lines in one
Slide 13: Optimize Bouygues Telecom's FTTH costs in medium dense area
OPTIMIZE BOUYGUES TELECOM’S FFTH COSTS IN MEDIUM DENSE AREA AREA COST TO ACCESS ONE FTTH PREMISE COST TO BUY ONE FTTH PREMISE Cost / premise Cost / premise Orange €13.2 Orange €513 « Asterix » « Asterix » Year 0 Year 20 Time Year 0 Year 20 Time 13
Slide 14: Asterix financial structure
ASTERIX FINANCIAL STRUCTURE Bouygues Investor Small capital injection 51% 49% Telecom Financing Debt (banks) JV Purchase of existing 5% Operations tranches already bought by Bouygues Bouygues Telecom € ̴ 200M Telecom Rental agreement Bouygues (rental cost< €13.20) Telecom Other Orange Purchase of ad
Slide 15: Asterix key points
ASTERIX KEY POINTS ⚫ SPEED UP THE ROLL-OUT OF BOUYGUES TELECOM’S FTTH IN THE MEDIUM DENSE AREA ⚫ OPTIMIZE THE ACCESS COST OF THE PREMISES ◼ An access cost lower than €13.20/month/subscriber as the JV will buy 5% tranches and will be able to rent to other operators ◼ No impact during the first three
Slide 16: Bouygues Telecom's flexible FTTH access strategy
BOUYGUES TELECOM’S FLEXIBLE FTTH ACCESS STRATEGY Total premises on Area the marketa Horizontal infrastructure Vertical infrastructure • Joint investment: acquisition of Very Dense • 50% with CityFastb (fixed annual opex) vertical infrastructure (capex) + cost 6.4m Area • 50% with SFR or Orange (cape