Bouygues Sa · EURONEXT:EN
Bouygues Sa — Investor Day (October 2015)
18 slides from Bouygues Sa's investor day presentation, Oct 6, 2015
Slide 1: Forward-looking information disclaimer
06/10/2015 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
Slide 2: Creating value in the mobile and fixed businesses
06/10/2015 Creating value in the mobile and fixed businesses Richard Viel Deputy CEO, Head of Commercial Operations 3 Agenda The world is increasingly becoming mobile and data centric Creating value in mobile Creating value in fixed 4 2
Slide 3: The world is increasingly becoming mobile and data centric
06/10/2015 The world is increasingly becoming mobile and data centric Creating value in mobile Creating value in fixed 5 The world is increasingly becoming mobile (1/2) Facebook advertising salesa Apple salesa (in USD bn) (in USD bn) 3.8 3.6 183 3.3 171 3.0 157 2.7 Mobile Mobile 2.3 2.3 products sal
Slide 4: The world is increasingly becoming mobile (2/2)
06/10/2015 The world is increasingly becoming mobile (2/2) Time spent every day per devicea (UK, hours per day) 3:17 3:15 3:14 3:12 2:26 1:59 1:22 0:53 0:31 (Non voice) 2011 2012 2013 2014 2015 7 (a) eMarketer, Millward Brown The smartphone revolution: faster than ever Time for equipment penetration
Slide 5: Empowered smartphones 'mechanically' drive data consumption up
06/10/2015 Empowered smartphones ‘mechanically’ drive data consumption up iPhone screen and camera pixels evolutiona (resolution pixel index, base 100) 651 400 400 250 100 100 iPhone 2G iPhone 4 iPhone 6 2007 2010 2014 Screen Camera 9 (a) Apple data Video as the main driver of data traffic boom Mobi
Slide 6: Smartphone-related data consumption should continue to grow
06/10/2015 Smartphone-related data consumption should continue to grow Traffic per smartphone in top Western Europe countriesa (GB/smartphone/month) x6 6.4 4.8 3.5 2.3 1.5 0.7 1.0 0.2 0.2 0.3 0.5 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E 11 (a) Arthur D. Little Exane BNP Paribas V
Slide 7: Multi SIM and multi device, a strong driver of customer base growth
06/10/2015 Multi SIM and multi device, a strong driver of customer base growth Super-connected householdsa Mobile penetrationb (France, million) (France, penetration as a %) +700k In less than 9.0 108% 1 year 100% Continued multi SIM penetration 8.3 Q1 2014 Q4 2014 2010 2012 2014 2016 2018 2020 Supe
Slide 8: Leveraging market trends and Bouygues Telecom's competitive advantage to create value
06/10/2015 Leveraging market trends and Bouygues Telecom’s competitive advantage to create value 1 Strong ability to capture customers thanks to 4G Focusing on high-end customers while successfully 2 stimulating and monetizing data usage 3 Increasing customer loyalty 4 Improving customer experience
Slide 9: Increasing mobile market share thanks to 4G and network extension
06/10/2015 Increasing mobile market share thanks to 4G 1 and network extension “Best value for money” with Incremental market share Acquisition a differentiation thanks to 4G thanks to network extension Value - Leadership on network - Coverage improvement Loyalty quality: towards 300 Mbit/s in non-d
Slide 10: Bouygues Telecom is capturing more high-end 'connected' customers
06/10/2015 Bouygues Telecom is capturing more high-end 2 “connected” customers Bouygues Telecom’s household mixa regarding appetite for technologies Connected family Acquisition Households +3.4 pts with 26% Value children of ByTel subs. Loyalty Connected people Innovation Households without +7.2 pts
Slide 11: Encouraging data use to create value
06/10/2015 2 Encouraging data use to create value A “Bonus” service to be Bouygues Telecom’s customers chosen with a premium plan data usagea (GB/customer/month) Acquisition Music streaming ~4 GB Value TV package Loyalty 2 GB SVoD service Innovation Unlimited access to a mobile game platform
Slide 12: Encouraging data use; increasing customer loyalty
06/10/2015 2 Encouraging data use to create value Share of handset by generation in Bouygues Telecom mobile customer base Facilitating 4G uses by giving access to new 51% Acquisition generation handsets 41% with instalment plans 30% Value 36% 19% More 4G than 3G 23% Loyalty handsets in the Innov
Slide 13: Achieving strong churn reduction
06/10/2015 3 Achieving strong churn reduction Mobile churn (excluding MtoM) Acquisition Value -15% churn rate Loyalty vs 2011 (before Free Mobile’s Innovation commercial launch) H1 H2 H1 H2 H1 H2 H1 H2 H1 11 11 12 12 13 13 14 14 15 25 4 Improving customer experience through innovation 1996 1999 2006
Slide 14: Shaking up the fixed market and opening the way for value creation
06/10/2015 The world is increasingly becoming mobile and data centric Creating value in mobile Creating value in fixed 27 Shaking up the fixed market and opening the way for value creation Continued acquisition strategy to quickly increase 1 Bouygues Telecom’s market share Aggressive offers and pric
Slide 15: New fixed technologies, new challengers
06/10/2015 1 New fixed technologies, new challengers The FTTH Era Market share in number of The ADSL Era subscribersa in France Acquisition The PSTN Era Value Loyalty Other Other Other Other 9% 2%5% 3% Innovation 26% 1% 10% 30% 35% 47% 21% 40% 18% 24% 14% 12% 6% 31% 15% 10% 19% 23% 1998 2001 2007 Q2
Slide 16: Ability to generate growth and value: low entry points
06/10/2015 2 Ability to generate growth and value: low entry points Competition still with Bouygues Telecom’s higher prices aggressive offers ADSL market prices Acquisition €29.99 to €36.99 Value NC-SFR cable plans Loyalty €39.99 to €59.99 Innovation Fibre market prices €35.98 to €45.99 Strong
Slide 17: Increasing customer loyalty to create value
06/10/2015 3 Increasing customer loyalty to create value Target to reduce churn by 20% thanks to Acquisition - Delivery system simplification Value - Improvement in customer base Loyalty convergence Innovation - Fluent process for recovery, migration, relocation 33 4 Improving customers’ digital l
Slide 18: Conclusion: a strong position in mobile and an assumed challenger positioning on fixed
06/10/2015 Conclusion: a strong position in mobile and an assumed challenger positioning on fixed Mobile Fixed Acquisition Value Loyalty Innovation 35 18