Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2016 Earnings Presentation
48 slides from Bouygues Sa's earnings presentation, May 13, 2016
Slide 1: First quarter 2016 results presentation
First quarter 2016 results presentation Paris – 32 Hoche 13 May 2016 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE
Slide 2: Forward-looking information 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: Highlights and key figures
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 3
Slide 4: Q1 2016 highlights
Q1 2016 highlights Bouygues Telecom’s commercial and financial results confirmed the turnaround started in 2015 The construction businesses delivered a solid commercial performance Full-year outlook is confirmed 4
Slide 5: Group key figures (1/2)
Group key figures (1/2) €m Q1 2015 Q1 2016 Change Sales 6,731 6,534 -3%a o/w France 4,503 4,361 -3% o/w international 2,228 2,173 -2% Current operating profit/(loss) (194) (140) +€54m Operating profit/(loss) (216)b (227)b -€11m Net profit/(loss) attributable to the Group (157) (180) -€23m Net profit
Slide 6: Group key figures (2/2)
Group key figures (2/2) €m Q1 2015 Q1 2016 Change Current operating profit/(loss) (194) (140) +€54m o/w Bouygues Telecom (62) (33) +€29m o/w construction businesses (146) (116) +€30m o/w TF1 28 15 -€13m Improved profitability at Bouygues Telecom Dunkirk refinery’s losses (€15m) have been booked as n
Slide 7: Group financial position strong
Group financial position strong End-Dec. End-March End-March € million Change Change 2015 2016 2015 Shareholders' equity 9,293 8,897 -€396m 9,308 -€411m Net debt 2,561 3,524 +€963m 4,264 -€740m Net gearing 28% 40% +12pts 46% -6pts The change in net debt between end-December 2015 and end-March 2016 m
Slide 8: Review of operations
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 8
Slide 9: Construction businesses
Construction businesses The largest solar farm in South-East Asia - Negros Island in the Philippines 9
Slide 10: Solid commercial performance in the construction businesses
Solid commercial performance in the construction businesses Order books (€m) High level order book: €29.9bn at end-March 2016 Up 3% vs. end-December 2015 -1% €30.1bn €29.9bn €27.8bn €28.8bn Strong international presence 57% of the order book at Bouygues Construction and Colas coming from internation
Slide 11: First signs of a gradual stabilization in France
First signs of a gradual stabilization in France Building and civil works Significant project wins: Louvre Post office, extension of Calais harbour (~€300m), Alto tower in La Défense (~€200m) 0% Stable order book at Bouygues Construction at end-March 2016 vs. end-March 2015 Continued growth in resid
Slide 12: Telecom
ih 4 ] 0 TELECOM Si
Slide 13: On track to achieve targets in a 4-operator market
On track to achieve targets in a 4-operator market Good commercial and financial performance in Q1 16, confirming the turnaround started in 2015 Bouygues Telecom has the strengths necessary to achieve its targets in a market with 4 operators 13
Slide 14: Continued growth in mobile activity
Continued growth in mobile activity Good Q1 2016 performance in a highly competitive market +240,000 new mobile customers in Q1 16 +664,000 new mobile customers excl. MtoMa at end-March 2016 (vs. end-2014) +151,000 new plan customers excl. MtoMa in Q1 16 Total net growth of mobile customers ('000) a
Slide 15: Bouygues Telecom's 4G leadership boosting data usage
Bouygues Telecom’s 4G leadership boosting data usage Active 4Ga customers ('000) and share of the mobile subscriber base excluding MtoMb Fast 4G penetration 4G customersa: 55% of mobile base excluding MtoMb 55% 51% at end-March 2016 46% 42% 36% 4G users consume on average 2.7 GB/month c Mobile custo
Slide 16: Continued growth in fixed broadband
Continued growth in fixed broadband Fixed broadbanda subscriber base of 2.9m Additional 71,000 new customers in Q1 2016 of which 20% on FTTHb On track with the target of 1m additional fixed customers at end-2017 vs. end-2014 (a) Includes broadband and very-high-speed broadband subscriptions (b) Fibr
Slide 17: Strong improvement in sales
Strong improvement in sales Q1 16 total sales up 6% vs. Q1 15 Q1 16 sales from network up 4% vs. Q1 15 17
Slide 18: On track towards 25% EBITDA margin target in 2017
On track towards 25% EBITDA margin target in 2017 Change vs. Q1 €m Q1 2015 Q1 2016 2015 Sales 1,063 1,131 +6%a Sales from network 932 971 +4% EBITDA 118 146 +€28m EBITDA/Sales from network 12.7% 15% +2.3 pts Current operating profit/(loss) (62) (33) +€29m Operating profit/(loss) (84)b (55)b +€29m EB
Slide 19: Long-term competitive edge in 4G network
Long-term competitive edge in 4G network Bouygues Telecom is reinforcing its 4G leadership 4G compatible Deeper 4G network through carrier aggregation Investment in 25% of French spectrum with the best ratio of spectrum per user 4 bands available on 4G to improve speeds Wider 4G network Network shar
Slide 20: Best in class in mobile quality network
Best in class in mobile quality network Ranked first or second in any mobile survey nPerf Q1 2016 score ♦ #1 in 4G connexion rate ♦ #2 in global 2G/3G/4G final score 4Gmark, March 2016 ♦ #1 in 4G connexion rate ♦ #2 in download speeds and global score Rootmetrics, H2 2015 ♦ #1 in download speeds in
Slide 21: Access to the full range of infrastructure in Fixed
Access to the full range of infrastructure in Fixed Unbundling DSL network in strategic areas >16m households with more than 1,500 central offices at end-2015 Very-High-Speed offers accessible to almost 8m households through NC-SFR network Co-investment in FTTHa infrastructure Very dense areas: hori
Slide 22: Competitive Mobile and Fixed offers
Competitive Mobile and Fixed offers Best value for money plans Content differentiation strategy with bonuses Integration of bonuses in Sensation plans (Spotify, Canal Play Start, Gameloft, B.tv) The most competitive plans in the market in Fixed * +€3/month of box rental * +€3/month of box rental 22
Slide 23: Financial statements
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 23
Slide 24: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) € million Q1 2015 Q1 2016 Change Sales 6,731 6,534 -3% Current operating profit/(loss) (194) (140) +€54m Other operating income and expenses (22)a (87)a -€65m Operating profit/(loss) (216) (227) -€11m Cost of net debt (72) (62) +€10m o/w financial income
Slide 25: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) € million Q1 2015 Q1 2016 Change Income tax 118 89 -€29m Share of net profit of joint ventures and associates 9 9 €0m o/w Alstom 0a 0b €0m Net profit/(loss) from continuing operations (148) (197) -€49m Net (profit)/loss attributable to non-controlling in
Slide 26: Change in net cash position (1/2)
Change in net cash position (1/2) Net cash at 12/31/2015 €m Net cash at 03/31/2016 Othersb 700 MHz Acquisitions / Frequencies Disposalsa Operations Q1 2015 (3,216) (2) + 12 - (1,058) (4,264) (a) Including Alstom’s public share buy-back offer and the acquisition of 70% of Newen studios (b) Including
Slide 27: Change in net cash position (2/2)
Change in net cash position (2/2) Breakdown of operations Net cash flowa Net capital expenditure Change in the operating WCR & otherb €m +144 -366 -1,337 -1,559 Q1 2015 +87 -287 -858 (1,058) (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating to oper
Slide 28: Outlook
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 28
Slide 29: Outlook for 2016 confirmed
Outlook for 2016 confirmed Construction businesses continue to target growth in international markets and broaden the portfolio of offers with innovative products and services Profitability expected to improve starting in 2016 Target of a return to long-term growth in sales and profits confirmed at
Slide 30: Annex
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 30
Slide 31: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction Order intakea (€m) Order book at end-March 2016 (€m) o/w NorthConnex contract (Australia) -18% -1% +9% excl. NorthConnex YoY €19.8bn €19.5bn -46% €19.3bn -13% excl. NorthConnex +35% International France (a) Definition: contracts are booked as order intakes
Slide 32: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa (€m) Order book (€m) Commercial property YoY evolution Residential property +7% -20% +1% ns +12% +9% (a) Definition: residential property reservations are reported net of cancellations and excluding VAT. Commercial property reservations are firm
Slide 33: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France € million Q1 2015 Q1 2016 Change -2% Sales 1,979 1,754 -11%a o/w France 1,189 1,084 -9% o/w international 790 670 -15% +2% Current operating profit/(loss) (244) (223) +€21m Current operating marg
Slide 34: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Mobile customer base 11,064 11,024 11,048 11,121 11,121 11,273 11,433 11,641 11,890 11,890 12,130 o/w plana excluding MtoMb 8,476 8,498 8,523 8,596 8,596 8,742 8,889 9,038
Slide 35: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Mobile ARPUa €/month/subscriber 24.2 24.4 24.6 23.8 22.7 22.8 23.3 22.8 22.4 Plana ARPU €/month/subscriber 26.3 26.3 26.3 25.5 24.3 24.3 24.7 24.1 23.6 Prepaida ARPU €/month/subscri
Slide 36: Sales by sector of activity
ANNEX Sales by sector of activity Change like-for-like € million Q1 2015 Q1 2016 Change and at constant exchange rates Construction businessesa 5,203 4,937 -5% -3% o/w Bouygues Construction 2,779 2,771 0% 0% o/w Bouygues Immobilier 513 475 -7% -7% o/w Colas 1,979 1,754 -11% -7% TF1 475 482 +1% -3% B
Slide 37: Contribution to Group EBITDA by sector of activity
ANNEX Contribution to Group EBITDA by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (86) (116) -€30m o/w Bouygues Construction 72 63 -€9m o/w Bouygues Immobilier 15 8 -€7m o/w Colas (173) (187) -€14m TF1 26 54 +€28m Bouygues Telecom 118 146 +€28m Holding company and oth
Slide 38: Contribution to Group current operating profit by sector of activity
ANNEX Contribution to Group current operating profit by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (146) (116) +€30m o/w Bouygues Construction 71 82 +€11m o/w Bouygues Immobilier 27 25 -€2m o/w Colas (244) (223) +€21m TF1 28 15 -€13m Bouygues Telecom (62) (33) +€29m
Slide 39: Contribution to Group operating profit by sector of activity
ANNEX Contribution to Group operating profit by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (146) (136) +€10m o/w Bouygues Construction 71 78a +€7m o/w Bouygues Immobilier 27 24a -€3m o/w Colas (244) (238)b +€6m TF1 28 (19)c -€47m Bouygues Telecom (84)d (55)d +€29m Ho
Slide 40: Contribution to Group net profit by sector of activity
ANNEX Contribution to Group net profit by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (98) (103) -€5m o/w Bouygues Construction 51 47 -€4m o/w Bouygues Immobilier 15 16 +€1m o/w Colas (164) (166) -€2m TF1 14 (6) -€20m Bouygues Telecom (49) (40) +€9m Alstom 0a 0b €0m H
Slide 41: Contribution to Group net cash flow by sector of activity
ANNEX Contribution to Group net cash flow by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (11) (25) -€14m o/w Bouygues Construction 104 85 -€19m o/w Bouygues Immobilier 17 13 -€4m o/w Colas (132) (123) +€9m TF1 5 39 +€34m Bouygues Telecom 116 160 +€44m Holding company
Slide 42: Contribution to Group net capital expenditure by sector of activity
ANNEX Contribution to Group net capital expenditure by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses 72 80 +€8m o/w Bouygues Construction 32 35 +€3m o/w Bouygues Immobilier 2 4 +€2m o/w Colas 38 41 +€3m TF1 5 49 +€44m Bouygues Telecom 207 238 +€31m Holding company and o
Slide 43: Contribution to Group free cash flow by sector of activity
ANNEX Contribution to Group free cash flow by sector of activity € million Q1 2015 Q1 2016 Change Construction businesses (83) (105) -€22m o/w Bouygues Construction 72 50 -€22m o/w Bouygues Immobilier 15 9 -€6m o/w Colas (170) (164) +€6m TF1 0 (10) -€10m Bouygues Telecom (91) (78) +€13m Holding comp
Slide 44: Net cash by business area
ANNEX Net cash by business area € million End-March 2015 End-March 2016 Change Bouygues Construction 2,733 2,828 +€95m Bouygues Immobilier 94 (143) -€237m Colas 20 64 +€44m TF1 572a 341b -€231m Bouygues Telecom (902) (1,295)c -€393m Holding company and other (6,781) (5,319)d +€1,462m TOTAL (4,264) (
Slide 45: Financing
ANNEX Financing Available cash: €8.3bn Debt maturity schedule at end-March 2016 Redemption of a €600m bond issue on 24th May 45
Slide 46: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group € million Q1 2015 Q1 2016 Change Net profit/(loss) attributable to the Group (157) (180) -€23m o/w non-current income/charges related to Bouygues Telecom, net of taxes 12 13 +€1m o/w non-current income/charges related to the
Slide 47: Calendar
ANNEX Calendar 31 August 2016 First-half 2016 sales and earnings 7.30am 16 November 2016 Nine-month 2016 sales and earnings 7.30am All times are Central European Times (CET) 47
Slide 48: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE