Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2003 Earnings Presentation
57 slides from Bouygues Sa's earnings presentation, Sep 10, 2003
Slide 1: Highlights, Business Areas, Accounts, Outlook and Objectives
! HIGHLIGHTS ! BUSINESS AREAS ! ACCOUNTS ! OUTLOOK AND OBJECTIVES
Slide 2: Highlights for 1st Half of 2003
HIGHLIGHTS FOR 1st HALF OF 2003 ! Further sharp rise in Group earnings ! Increased stake in Bouygues Telecom ! S&P’s credit rating confirmed: A- ! Cancellation of 9.7 million shares (2.8 % of the capital): relutive for the stockholder ! Bouygues Telecom: excellent commercial and financial performanc
Slide 3: Key Figures: Operation
KEY FIGURES: operation 1st half Million euros Change 2002 2002 comp.* 2003 Sales 10,813 10,272 10,191 - 0.8% Operating income 506 478 524 + 10% Earnings before tax and 356 337 402 + 19% exceptional items Net earnings attributable 465 (1) 116 130 + 12% to the Group * Excluding capital gains on dispos
Slide 4: Key Figures: Financial Data
KEY FIGURES: financial data 1st half Million euros Change 2002 2002 2003 Cash flow 700 878 + 25% 1,713 (1) Net operating investment - 655 - 374 - 43% - 1,226 Free cash flow before WCR + 45 + 504 x 11 + 487 Change in WCR - 264 - 844 x 3.2 + 434 Free cash flow - 219 - 340 - 55% + 921 Net debt at 30 Ju
Slide 5: Debt Situation
DEBT SITUATION ! Situation at 31 December 2002: €3,201m " Acquisition of Bouygues Telecom shares + €394m from E.ON (including stockholder loans) " Bouygues stock buy-back + €60m " Colas (seasonal effects) + €526m " Other + €12m ! Situation at 30 June 2003 €4,193m At 30 June 2002 €3,638m
Slide 6: Stock Ownership Structure
STOCK OWNERSHIP STRUCTURE At 30 June 2003 Holding Voting rights SCDM (1) 14.7% 22.1% Tennessee (groupe Pinault) 3.0% 4.2% Simetra (groupe Pinault) 5.1% 4.1% Total stockholder agreement 22.8% 30.4% Bouygues group employees 10.8% 14.0% Groupe Arnault 4.8% 3.9% Mme F. Bouygues 1.6% 2.5% Banks (2) 2.7%
Slide 7: Stock Market
STOCK MARKET ! Performance from 1 January to 5 September 2003 120 TF1 110 CAC 40 100 BOUYGUES €25.40 90 80 70 60 01/01/03 01/03/03 01/05/03 01/07/03 01/09/03
Slide 8: Highlights, Business Areas, Accounts, Outlook and Objectives
! HIGHLIGHTS ! BUSINESS AREAS ! ACCOUNTS ! OUTLOOK AND OBJECTIVES
Slide 9: Construction (B/CW): Key Figures (1/2)
BOUYGUES CONSTRUCTION (B/CW): key figures (1/2) 1st half Million euros 2002 Change 2002 pro forma 2003 Sales 3,229 2,658 2,377 - 11% of which France 1,580 1,467 1,358 - 7% of which International 1,649 1,191 1,019 - 15% Operating income 63 35 4 - €31m Net earnings attributable (1) 182 39 (5) - €44m t
Slide 10: Construction (B/CW): Key Figures (2/2)
BOUYGUES CONSTRUCTION (B/CW): key figures (2/2) 2002 pro forma 2003 Million euros 1st 2nd 1st half 2nd half quarter quarter 1st half Sales 2,658 2,595 1,176 1,201 2,377 Operating income 35 (31) 2 2 4 Net earnings attributable 39 (76) (12) 7 (5) to the Group Earnings continued to improve in second qu
Slide 11: Construction (B/CW): Order Book
BOUYGUES CONSTRUCTION (B/CW): order book* €bn At 30 June 2003 6 49% 5,3 4,8 4,9 5 4,6 4% 4,4 69% 4 10% 3,6 11% 20% 3 6% France 2 Western Europe (excluding France) 1998 1999 2000 2001 2002 31/08/2003 Eastern Europe Asia * Excluding Bouygues Offshore Africa Latin America and other Orders remain very s
Slide 12: Construction (B/CW): Strategy and Outlook
BOUYGUES CONSTRUCTION (B/CW): strategy and outlook ! Restore sustainable profitability by: " streamlining organisational structure and injecting young blood " improving risk management and ensuring tighter control over projects " continuing to be selective in our choice of projects ! Offer high-adde
Slide 13: Colas: Key Figures
COLAS: key figures 1st half Million euros Change 2002 2002 2003 Sales 3,196 3,164 - 1% 7,415 of which France 1,932 2,016 + 4% 4,276 of which International 1,264 1,148 - 9% 3,139 Operating income 24 11 - €13m 292 Net earnings attributable 20 15 - €5m 208 to the Group Net debt at 30 June 441 371 - €70
Slide 14: Colas: Order Book
COLAS: order book 30 June Million euros Change 2002 2003 France 1,850 1,983 + 7% International 1,979 1,996 + 1% TOTAL 3,829 3,979 + 4% Favorable trend
Slide 15: Colas: Strategy and Outlook
COLAS: strategy and outlook ! Pursue the external growth strategy implemented for the last few years, by focusing on: " strategic material reserves " industrial activities " international ! 2003 sales (e): €7,350m - 1% " of which France €4,410m + 3% " of which International €2,940m - 6%
Slide 16: Bouygues Immobilier: Key Figures
BOUYGUES IMMOBILIER: key figures 1st half Million euros Change 2002 2003 Sales 602 596 - 1% Housing 291 324 + 11% Corporate/Commercial property 311 272 - 13% Operating income 31 51 + €20m Net earnings attributable 18 26 + €8m to the Group Net cash 18 60 + €42m Excellent results
Slide 17: Immobilier: Business Activity
BOUYGUES IMMOBILIER: business activity ! Reservations 1st half Change 2002 2003 Housing Number of units 2,257 2,699 + 20% Total (€m) 319 401 + 26% Corporate/Commercial Office space (m²) 79,000 105,000 + 33% Total (€m) 243 391 + 61% Business remains firm
Slide 18: Immobilier: Strategy and Outlook
BOUYGUES IMMOBILIER: strategy and outlook ! Reinforce its position as a leading property developer in France by: " pursuing a prudent development policy in the housing segment " controlling risks in the corporate segment ! Reduce vulnerability to the business cycle by: " favouring conditional offers
Slide 19: Saur: Key Figures
SAUR: key figures 1st half Million euros Change 2002 2003 Sales 1,233 1,211 - 2% France 815 838 + 3% International 418 373 - 11% Operating income 46 34 - €12m Net earnings attributable 11 10 - €1m to the Group Net debt at 30 June 631 489 - €142m Stable sales and improvement in cash situation
Slide 20: Saur: Strategy and Outlook
SAUR: strategy and outlook ! Develop the most profitable business areas: " Water services and in particular works (design/ construction of drinking water and wastewater facilities) " Environmental services ! Pursue refocusing policy abroad ! 2003 sales (e): €2,460m - 2% " of which France €1,715m + 2
Slide 21: TF1: Key Figures
TF1: key figures 1st half Million euros Change 2002 2003 Sales 1,352 1,409 + 4% of which advertising 817 835 + 2% of which diversification 535 574 + 7% Operating income 202 233 + 15% Net earnings attributable 112 138 + 23% to the Group Net debt at 30 June 525 519 - €6m Improvement in earnings
Slide 22: TF1: Audience Share
TF1: audience share 2002 2003 Channel 1st half Full year 1st half Women under 50 35% 35.7% 34.0% Viewers 4 years and over 32.5% 32.7% 31.4% Viewers between 15 and 24 31.6% 32.3% 32.2% Viewing time per person 3hr26 3hr20 3hr24 (4 years and over) 48 of 50 best audience ratings in first half
Slide 23: TF1: Eurosport Key Figures
TF1: Eurosport key figures 1st half Million euros 2002 2003 Sales 161 144 Operating income 18 17 Net earnings 4 5 " 97 million households, including 47 million direct paying subscribers " Audience: 21 million viewers a day in Europe " No winter Olympics in 2003 " Reduction in programming costs Leadi
Slide 24: TF1: TPS Key Figures
TF1: TPS key figures (at 100%) 1st half Million euros 2002 2003 Sales 250 262 Operating income (10) 13 Net earnings (16) 8 " 1.4 million subscribers at end June 2003 of which 1.2 million via Direct Broadcast Satellite TPS reports interim positive earnings for first time
Slide 25: TF1: Strategy
TF1: strategy ! Consolidate its leading position in free-to-air TV in France by: " securing broadcasting rights for popular TV programmes whilst controlling programming costs " increasing advertising revenues through implementation of European standards in particular " capitalising on the TF1 brand
Slide 26: TF1: Outlook
TF1: outlook ! 2003 sales (e): €2,760m + 4% * " of which advertising €1,545m + 3% " of which diversification €1,215m + 5% * * like-on-like
Slide 27: Bouygues Telecom: Stock Ownership Structure
BOUYGUES TELECOM: stock ownership structure ! September 2003 72.9% 10.5% 6.5% 10.1% * Bouygues has raised its stake in Bouygues Telecom from 34% to 73% * Bouygues has an option to buy E.ON’s remaining stake until 2005 and E.ON has an option to sell its stake to Bouygues until 2007. As a result, Bouy
Slide 28: Bouygues Telecom: Key Figures
BOUYGUES TELECOM: key figures 1st half Million euros Change 2002 2002 2003 Sales 1,396 1,583 + 13% 2,945 of which net sales from network 1,302 1,465 + 13% 2,703 EBITDA 415 464 + 12% 846 Operating income 153 200 + 31% 305 Net earnings attributable 65 96 + 48% 130 to the Group EBITDA / net sales from
Slide 29: Bouygues Telecom: Financial Data
BOUYGUES TELECOM: financial data 30 June 31 Dec. Million euros Change 2002 2003 2002 Stockholders’ equity 1,447 2,265 + 57% 2,148 Net debt 1,806 1,401 - 22% 1,486 Net debt/stockholders’ equity 125% 62% - 69% Capital expenditure 168 186 + 11% (1) 469 Free cash flow 86 80 - 7% (1) 410 (1) Excluding UM
Slide 30: Bouygues Telecom: Breakdown of Sales
BOUYGUES TELECOM: breakdown of sales 1st half Million euros Change 2002 2002 2003 Net sales from network 1,302 1,465 + 13% 2,703 of which data (incl. SMS) 130 197 + 51% 285 % of net sales from network 10% 13.4% + 3.4 pt 10.5% Handsets and other 94 118 + 25% 242 Total sales 1,396 1,583 + 13% 2,945 Fu
Slide 31: Bouygues Telecom: Commercial Policy (1/3)
BOUYGUES TELECOM: commercial policy (1/3) VOICE SERVICES ! Pricing by the second, from the first second, for all offers except for Millennium contract ! Contract " Simplified range of options " Unlimited airtime offers ! Prepay " Rates that allow customers to choose their credit duration " Roaming g
Slide 32: Bouygues Telecom: Commercial Policy (2/3)
BOUYGUES TELECOM: commercial policy (2/3) MOBILE MULTIMEDIA SERVICE: i-mode ! 260,000 customers: most successful launch outside Japan ! Today, 35 to 40% of i-mode subscribers are new Bouygues Telecom customers ! A constantly enhanced offering with: " 165 official sites " several thousand unofficial
Slide 33: Bouygues Telecom: Commercial Policy (3/3)
BOUYGUES TELECOM: commercial policy (3/3) CORPORATE SERVICES ! Competitive and well-adapted " Platinium (unlimited talk time between 6am and 8pm from Monday to Friday) " Flexible and personalised plans ! Innovative and varied (data) " i-mode " i-PDA " GPRS modem card ! Major contracts signed with: F
Slide 34: Bouygues Telecom: Commercial Performance (Contract)
BOUYGUES TELECOM: commercial performance ! Contract 1st half 2003 (mainland France) 2002 2003 trend Contract customer base (in thousands) 3,272 3,807 # Market share of net additions 23% 26.6% Market share on installed base 16.9% 17.3% ARPU (€/month) 54 53 = SAC (€/customer) 236 244 = Monthly churn 1
Slide 35: Bouygues Telecom: Commercial Performance (Prepay)
BOUYGUES TELECOM: commercial performance ! Prepay 1st half 2003 (mainland France) 2002 2003 trend Active SIM cards (in thousands) 2,625 2,091 # SAC (€/customer) 88 43 $ Usage (min/month) 66 89 # Net sales from network (€m) 228 228 = Sales are stable SACs fall by half
Slide 36: Bouygues Telecom: Active SIM Cards
BOUYGUES TELECOM: active SIM cards 2002 2003 In thousands of SIM cards Breakdown 30 June 31 Dec. 30 June 30 June Contract customer base 3,272 3,534 3,807 63% in metropolitan France Active prepay customer 2,625 2,076 2,091 35% base in mainland France Caribbean 172 182 135 2% TOTAL 6,069 5,792 6,033 1
Slide 37: Bouygues Telecom: Technology Review
BOUYGUES TELECOM: technology review EDGE ("EGPRS") ! Enhanced transmission speed for GPRS data services ! GPRS/EDGE handsets available in 2004 ! Flexible rollout and network continuity UMTS ! Careful monitoring of launches by foreign players ! Medium then high-speed voice and data services while on
Slide 38: Bouygues Telecom: Technological Choices
BOUYGUES TELECOM: technological choices ! Enhance i-mode services: java, digital photos, international roaming, etc. ! Develop corporate applications: i-PDA, i-mode, etc. ! Prepare network development so as to offer advanced services by examining two solutions: EDGE and UMTS Provide our customers wi
Slide 39: Bouygues Telecom: Strategic Objectives
BOUYGUES TELECOM: strategic objectives ! Enhance Bouygues Telecom’s brand image by: " leveraging i-mode " improving awareness of the network quality and coverage " developing the number of Bouygues Telecom boutiques ! Ensure that sales continue to rise sharply in the coming years by: " developing th
Slide 40: Bouygues Telecom: Outlook
BOUYGUES TELECOM: outlook ! 2003 sales " Total sales: €3,290m (+ 12%) " Net sales from network: 3,030m (+ 12%) Become the preferred brand of mobile communication services
Slide 41: Bouygues Telecom: Objectives for 2003
BOUYGUES TELECOM: objectives for 2003 Set for end-2003 Met at end-June Sales: €1,583m +13% Boost sales Net sales from network: €1,465m +13% Increase market 1st half 2002: 17.4% share in terms of sales 1st half 2003: 18.4% Concentrate on high-value Contract 2hrs or +: 61% of new market segments custo
Slide 42: Highlights, Business Areas, Accounts, Outlook and Objectives
! HIGHLIGHTS ! BUSINESS AREAS ! ACCOUNTS ! OUTLOOK AND OBJECTIVES
Slide 43: Bouygues: Consolidated Income Statement
BOUYGUES: consolidated income statement 1st half Million euros 2002 Change 2002 comp. (1) 2003 Sales 10,813 10,272 10,191 - 0.8% Operating income 506 478 524 + 10% Earnings before tax and 356 337 402 + 19% exceptional items Exceptional items 416 (24) 12 + €36m Income tax (205) (112) (178) - €66m Net
Slide 44: Bouygues: Sales by Business Area
BOUYGUES: sales by business area 1st half Million euros 2002 Change 2002 comp. (1) 2003 Bouygues Telecom 1,390 1,390 1,577 + 13% TF1 1,343 1,380 1,402 + 2% Saur 1,232 1,232 1,210 - 2% Bouygues Construction 3,060 2,482 2,245 - 10% Colas 3,174 3,174 3,150 - 1% Bouygues Immobilier 599 599 596 - 1% Hold
Slide 45: Bouygues: Operating Income by Business Area
BOUYGUES: operating income by business area 1st half Million euros 2002 Change 2002 comp. (1) 2003 Bouygues Telecom 153 153 200 + €47m TF1 202 201 232 + €31m Saur 46 46 34 - €12m Bouygues Construction 63 36 5 - €31m Colas 25 25 11 - €14m Bouygues Immobilier 31 31 52 + €21m Holding and other (14) (14
Slide 46: Earnings Before Tax and Exceptional Items by Business Area
BOUYGUES: earnings before tax and exceptional items by business area 1st half Million euros 2002 Change 2002 comp. (1) 2003 Bouygues Telecom 70 70 127 + €57m TF1 184 183 221 + €38m Saur 34 34 24 - €10m Bouygues Construction 58 40 17 - €23m Colas 22 22 12 - €10m Bouygues Immobilier 26 26 46 + €20m Ho
Slide 47: Bouygues: Net Earnings by Business Area
BOUYGUES: net earnings by business area 1st half Million euros 2002 Change 2002 comp. (1) 2003 Bouygues Telecom 36 41 70 + €29m TF1 47 46 57 + €11m Saur 8 (1) 10 + €11m Bouygues Construction 179 27 (11) - €38m Colas 19 19 15 - €4m Bouygues Immobilier 18 18 26 + €8m Holding and other 158 (34) (37) -
Slide 48: Bouygues: Cash Flow by Business Area
BOUYGUES: cash flow by business area 1st half Million euros Change 2002 2002 2003 Bouygues Telecom 335 399 + 64 694 TF1 173 202 + 29 270 Saur 83 88 +5 171 Bouygues Construction 61 67 +6 161 Colas 114 105 -9 437 Bouygues Immobilier 22 34 + 12 52 Holding and other (88) (17) + 71 (72) TOTAL 700 878 + 2
Slide 49: Bouygues: Free Cash Flow by Business Area
BOUYGUES: free cash flow by business area 1st half Million euros Change 2002 2002 2003 Bouygues Telecom 66 64 -2 362 TF1 133 118 - 15 266 Saur 55 (4) - 59 115 Bouygues Construction (94) (83) + 11 (46) Colas (333) (439) - 106 282 Bouygues Immobilier (46) 56 + 102 (41) Holding and other 0 (52) - 52 (1
Slide 50: Condensed Consolidated Balance Sheet Items
BOUYGUES: condensed consolidated balance sheet items 30 June 31 Dec. Million euros Change 2002 2003 2002 Stockholders’ equity 6,026 6,151 + 125 6,379 Long & medium term provisions 1,791 1,832 + 41 1,882 Financial liabilities 5,172 4,675 - 497 4,825 Long-term capital 12,989 12,658 - 331 13,086 12 357
Slide 51: Bouygues SA: Condensed Balance Sheet
BOUYGUES SA: condensed balance sheet 30 June 31 Dec. Million euros 2002 2003 2002 Stockholders’ equity 5,133 4,917 5,103 Long & medium term provisions 222 228 232 Financial liabilities 2,036 2,491 2, 232 Long-term capital 7,391 7,636 7,567 F 12 357 Long-term investments 6,015 6,896 6,651 Other asset
Slide 52: Bouygues: Net Debt by Business Area
BOUYGUES: net debt by business area 30 June 31 Dec. Million euros Change 2002 2003 2002 Bouygues Telecom 1,806 1,401 - 405 1,486 TF1 514 508 -6 481 Saur 621 489 - 132 549 Bouygues Construction (918) (891) + 27 (1,011) Colas 440 369 - 71 (144) Bouygues Immobilier (18) (59) - 41 (30) Holding and other
Slide 53: Highlights, Business Areas, Accounts, Outlook and Objectives
! HIGHLIGHTS ! BUSINESS AREAS ! ACCOUNTS ! OUTLOOK AND OBJECTIVES
Slide 54: Bouygues: Forecast Sales for 2003
BOUYGUES: forecast sales for 2003 Million euros 2002 2003 (e) Change Bouygues Telecom 2,932 3,280 + 12% TF1 2,608 2,740 + 4%* Saur 2,514 2,460 - 2% Bouygues Construction 5,511 4,580 - 7%* Colas 7,376 7,300 - 1% Bouygues Immobilier 1,283 1,120 - 13% Holding and other 23 20 ns TOTAL 22,247 21,500 - 3%
Slide 55: Bouygues: Short-Term Prospects
BOUYGUES: short-term prospects ! Further rise in Group earnings: " positive trend of Telecoms-Media division " Bouygues Construction’s return to profitability ! Substantial generation of free cash flow ! Reduction in the number of shares ! Expected increase in dividends The diversity of Bouygues’ bu
Slide 56: Bouygues: Strategic Guidelines
BOUYGUES: strategic guidelines Backed by a solid financial structure and substantial free cash flow, Bouygues: ! devotes its resources first and foremost to its Telecoms-Media businesses ! continues to develop its other business areas through organic growth ! improve stockholders’ return through " s
Slide 57: Bouygues: Strategic Assets
BOUYGUES: strategic assets For each of its business areas, Bouygues ! has actual control over the strategies and cash flow of " Bouygues Telecom: 73% 83% " TF1: 41% (maximum stake 49%) " Colas: 95% " Saur, Bouygues Construction, Bouygues Immobilier: 100% ! has major growth prospects ! is determined