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Bouygues SA — Debt Investor Presentation (September 2006)

33 slides from Bouygues SA's debt investor presentation, Sep 20, 2006

  1. Slide 1: Bouygues Group Bond investors presentation

    20 September 2006 BOUYGUES GROUP Bond investors presentation 1 This document contains projections and forecasts. They express objectives based on the current assessments and estimates of the Group’s general management which are subject to many factors and uncertainties. Consequently, actual figures

  2. Slide 2: The Bouygues Group today: three business areas and a stake

    „ THE BOUYGUES GROUP „ THE GROUP OUTLOOK „ THE BOUYGUES - ALSTOM PARTNERSHIP „ APPENDIX 1: THE BUSINESSES „ APPENDIX 2: FINANCIAL DATA 3 THE BOUYGUES GROUP TODAY three business areas and a stake Roadworks Building / Civil Works Property (1984) (1952) (1956) 96.4 % 100 % 100 % CONSTRUCTION (2006) 24.

  3. Slide 3: Profile of a diversified industrial group; key figures over 5 years

    BOUYGUES: profile of a diversified industrial group „ A strong corporate culture, shared by all business areas 9 Entrepreneurial 9 Opportunistic 9 Prudent „ An effective control of the strategies and cash-flows of the subsidiaries „ Most of the activities are non cyclical „ A portfolio of complement

  4. Slide 4: 1st half 2006 highlights; key operating figures

    BOUYGUES GROUP: 1st half 2006 highlights „ Strong increase of the Group’s net earnings „ Announcement of an industrial and commercial partnership with ALSTOM, and acquisition of a 24.4% stake „ Strong commercial performance in all business areas 9 Bouygues Construction: orders taken +37% 9 Bouygues

  5. Slide 5: Debt situation; financing policy at end-June 2006

    BOUYGUES GROUP: debt situation 1st half Full Year Change € million 2005 2006 2005 Shareholders’ equity 5,053 5,806 + €753m 5,561 Net debt before ALSTOM 3,980 2,923 - €1,057m 2,352 Investment in ALSTOM - 2,192 ns - Total net debt 3,980 5,115 + €1,135m 2,352 Debt-to-equity ratio 79% 88% + 9 pts 42% 9

  6. Slide 6: Net cash by business area; free cash flow

    BOUYGUES GROUP: net cash by business area End-June Change € million End - 2005 2005 2006 (€ m) Bouygues Construction 1,470 1,757 + €287m 1,874 Bouygues Immobilier 160 97 - €63m 150 Colas (292) (398) - €106m 415 TF1 (537) (391) + €146m (351) Bouygues Telecom (1,001) (398) + €603m (441) Holding compan

  7. Slide 7: A favourable financial profile; Bouygues Construction

    BOUYGUES GROUP: a favourable financial profile „ A sound financial structure „ A limited exposure to risk: 9 Small exposure to currency and interest rates risks 9 A portfolio of complementary and non cyclical businesses „ No significant off-balance sheet commitment „ An increasing generation of free

  8. Slide 8: Bouygues Immobilier; Colas

    BOUYGUES IMMOBILIER: France’s leading property developer Corporate & Commercial Housing Property „ Leading property developer in France 78% 22% „ A positive cash situation H1 2006 revenue breakdown „ 90% of revenues in France by activity „ No speculative exposure, thanks to prudent business guidelin

  9. Slide 9: TF1; Bouygues Telecom profile

    TF1: profile of the French TV leader „ The leading channel in France TF1 channel Other activities 9 35% of audience share advertising 33% 9 54,4% of the advertising market share 67% „ A successful diversification 9 Thematic channels (Eurosport) H1 2006 revenue breakdown 9 Internet activities, TF1 Vi

  10. Slide 10: Share ownership structure at 30 June 2006

    BOUYGUES: share ownership structure at 30 June 2006 „ Capital „ Voting rights Foreign Foreign shareholders SCDM shareholders SCDM Groupe 18.4% Artémis 25.7% 2.1% (F. Pinault) 28.1% 35.0% Groupe 13.4% 2.4% Artémis Employees 17.6% (F. Pinault) 31.1% 26.2% Employees Other French Other French shareholde

  11. Slide 11: 2006 sales targets; status report

    BOUYGUES: 2006 sales targets 2006 target Change 2005* Published in Published in 2006/2005 June September Bouygues Construction 5,815 6,450 6,550 +13% Bouygues Immobilier 1,557 1,720 1,650 +6% Colas 9,424 10,180 10,370 +10% TF1 2,489 2,640 2,650 +6% Bouygues Telecom 4,434 4,500 4,460 +1% Holding comp

  12. Slide 12: Strategic guidelines

    BOUYGUES: strategic guidelines (1/2) „ The acquisition of a 24.4% stake in ALSTOM in 2006 has used up a large proportion of Bouygues’ investment capacity „ Backed by a sound financial structure, in the medium term the Group plans to 9 Expand further in the power and transport sectors 9 Increase remu

  13. Slide 13: Bouygues & ALSTOM: completion of the transaction

    „ THE BOUYGUES GROUP „ THE GROUP OUTLOOK „ THE BOUYGUES - ALSTOM PARTNERSHIP „ APPENDIX 1: THE BUSINESSES „ APPENDIX 2: FINANCIAL DATA 25 BOUYGUES & ALSTOM: completion of the transaction „ Bouygues’ stake in ALSTOM : 24.4% at 1st september 2006 9 On 26 June 2006, Bouygues acquired the French governm

  14. Slide 14: Bouygues & ALSTOM: synergies; a common vision

    BOUYGUES & ALSTOM: synergies „ Commercial cooperation 3 Sharing of information on market analysis 3 Coordination of commercial action upstream 3 Development of integrated offers on a case by case basis „ Operational cooperation 3 Sharing of best practices, notably on project management, contract neg

  15. Slide 15: Benefits of the partnership; ALSTOM key figures

    BENEFITS OF THE PARTNERSHIP FOR BOUYGUES „ The strategic partnership between ALSTOM and Bouygues… 9 Should allow Bouygues to expand into new high-growth business lines in which it will make the most of its entrepreneurial skills and its management capacity in complex projects 9 Will allow both group

  16. Slide 16: Bouygues Construction: order book

    „ THE BOUYGUES GROUP „ THE GROUP OUTLOOK „ THE BOUYGUES - ALSTOM PARTNERSHIP „ APPENDIX 1: THE BUSINESSES „ APPENDIX 2: FINANCIAL DATA 31 BOUYGUES CONSTRUCTION (B/CW): order book € bn New method Former method 8 7.6 At 30 June 2006 +27% (former method) France 7 53% 6.0 6.7 Americas 6 4% 5.0 5.2 78% 5

  17. Slide 17: Bouygues Construction: outlook; major public-private contracts

    BOUYGUES CONSTRUCTION (B/CW): outlook „ Construction businesses 9 The French market is still buoyant, notably in housing and the construction of public infrastructure 9 In Europe, Bouygues Construction is developing through external growth, packaged development projects and Public-Private Partnershi

  18. Slide 18: Major public-private contracts won since 2002 (2/2)

    MAJOR PUBLIC-PRIVATE CONTRACTS won by Bouygues Construction since January 2002 (2/2) Project Project Description total amount „ Under development Broomfield Hospital / PFI preferred bidder 892–bed hospital in Chelmsford, Essex (UK) £220m / €323m Lewisham Schools / PFI preferred bidder 7 schools sout

  19. Slide 19: Bouygues Immobilier: reservations; outlook

    BOUYGUES IMMOBILIER: reservations 30 June 30 June Reservations Change 2005 2006 Housing Number of units 4,011 4,242 +6% Amount (€ m) 655 749 +14% Corporate/Commercial Office space (sq. m) 31,000 57,000 -+84% Amount (€ m) 85 157 +85% TOTAL (€ m) 740 906 +22% Sharp rise in commercial activity in 1st h

  20. Slide 20: Colas: order book; a non cyclical business

    COLAS: order book End-June End-June € million Change 2005 2006 Metropolitan France 2,590 2,863 +11% International and French 2,708 3,264 +21% overseas territories TOTAL 5,298 6,127 +16% Strong commercial activity 39 COLAS: a non cyclical business French GAAP IFRS 10 000 9,540 9 000 Sales 8 000 % : 1

  21. Slide 21: Colas outlook; TF1 outlook

    COLAS: outlook „ Roadworks in France: the market is levelling off „ Roadworks in international markets 9 Business is on the rise in North America, Central Europe and the Indian Ocean region 9 Stable business in Northern Europe „ Other activities: bright prospects Sales target (€ m) 2005 2006 Change

  22. Slide 22: Bouygues Telecom: key figures; financial structure

    BOUYGUES TELECOM: key figures Million euros 1st half Change FY 2005 2005 (1) 2006 (1) Pro forma: restated for Bouygues Telecom Caraïbes (BTC) Sales 2,150 2,182 + 1% 4,447 Net sales from network 2,029 2,029 = 4,144 o/w sales excluding incoming traffic revenues 1,546 1,613 + 4% 3,342 EBITDA 660 618 -

  23. Slide 23: Telecom H1 2006 market share; taking the offensive

    BOUYGUES TELECOM: H1 2006 market share (France and overseas territories) „ Customer market share (1) „ Value market share (3) 1.9% (2) 16.9% Bouygues Telecom 19.3% Orange 35.5% 38.0% SFR 45.7% MVNO & other 42.7% (3) Source: operators (1) Source: ARCEP and operators (2) O/w MVNO: 1.4% Consolidated sa

  24. Slide 24: Neo: a commercial success; year of commercial investment

    NEO: a commercial success 9 7 plans ranging from 2 to 15 hours 9 Unlimited calls to all operators 9 Free, unlimited emails Calls to 43 countries From 8pm to for the price midnight every day + of a call in France 671,000 Neo customers at end-June 2006 Creating a real difference with the rest of the m

  25. Slide 25: Neo: a profitable investment; regulation

    NEO: a profitable investment „ Neo customers will generate the same profitability as Bouygues Telecom 9 ARPU of Neo customers is about €20 higher than for Contract customers 9 Less use of free minutes (observed with other unlimited offers) 9 Future decline in call termination rates „ 80% of Bouygues

  26. Slide 26: Bouygues Telecom: competitive environment; outlook

    BOUYGUES TELECOM: competitive environment „ Arrival of MVNOs on the French market 9 Expected to make the market more fluid, MVNOs accounted for only 1,4% of the market at end-June 2006 9 Trends: ¾ Emergence of brand licences ¾ Low-cost MVNOs, targeting the youth market „ Bouygues Telecom’s response

  27. Slide 27: Bouygues Telecom: technologies; commercial performance

    BOUYGUES TELECOM: reminder of different technologies „ EDGE and UMTS currently offer similar capabilities „ EDGE is ten times cheaper than UMTS „ The real break will come with the 2nd generation UMTS (HSDPA) Actual download speed: network to mobile Actual upload speed: mobile to network Kbps 1,500 K

  28. Slide 28: Condensed consolidated income statement

    „ THE BOUYGUES GROUP „ THE GROUP OUTLOOK „ THE BOUYGUES - ALSTOM PARTNERSHIP „ APPENDIX 1: THE BUSINESSES „ APPENDIX 2: FINANCIAL DATA 55 BOUYGUES: condensed consolidated income statement 1st half € million Change 2005 2006 Sales 11,043 12,052 +9% Operating profit 844 862 +2% Cost of net financial d

  29. Slide 29: Contribution of business areas to Group sales and EBITDA

    Contribution of business areas to Group sales 1st half € million Change 2005 2006 Bouygues Construction 2,790 3,155 +13% Bouygues Immobilier 758 721 -5% Colas 3,928 4,496 +14% TF1 1,277 1,377 +8% Bouygues Telecom 2,144 2,175 +1% Holding company and other 146 128 ns TOTAL 11,043 12,052 +9% of which F

  30. Slide 30: Contribution to operating profit and net profit

    Contribution of business areas to Group operating profit 1st half € million Change 2005 2006 Bouygues Construction 137 152 +€15m Bouygues Immobilier 73 80 +€7m Colas 38 74 +€36m TF1 264 209 -€55m Bouygues Telecom 351 298 -€53m Holding company and other (19) 49 +€68m TOTAL 844 862 +2% As TPS and BTC

  31. Slide 31: Contribution to cash flow and net investments

    Contribution of business areas to Group cash flow 1st half € million Change 2005 2006 Bouygues Construction 211 232 +€21m Bouygues Immobilier 75 66 -€9m Colas 184 219 +€35m TF1 299 264 -€35m Bouygues Telecom 660 605 -€55m Holding company and other 24 (4) -€28m TOTAL 1,453 1,382 -5% Including TPS and

  32. Slide 32: Contribution to free cash flow; return on capital employed

    Contribution of business areas to Group free cash flow 1st half € million Change 2005 2006 Bouygues Construction 124 97 -€27m Bouygues Immobilier 50 43 -€7m Colas 10 (6) -€16m TF1 139 138 -€1m Bouygues Telecom 202 287 +€85m Holding company and other (35) (218) -€183m TOTAL 490 341 -30% Free cash flo

  33. Slide 33: Financial calendar; Bouygues IR contact

    BOUYGUES: financial calendar „ 9 November 2006 9-month 2006 sales „ 7 December 2006 9-month 2006 earnings „ 12 February 2007 Full-year 2006 sales „ 28 February 2007 Full-year 2006 earnings „ 26 April 2007 Annual Meeting of Shareholders „ 9 August 2007 First-half 2007 sales „ 31 August 2007 First-hal

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