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Bouygues SA — Bouygues Immobilier — Investor Presentation (June 2012)
26 slides from Bouygues SA's investor presentation, Jun 21, 2012
Slide 1: Introduction to Bouygues Immobilier
INTRODUCTION TO BOUYGUES IMMOBILIER Eric Guillemin - Deputy CEO & CFO 21 June 2012
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking information and statements about the Bouygues Group and its businesses, including those within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.
Slide 3: Agenda
Agenda PROFILE BASIC ACCOUNTING OPPORTUNITIES STRENGTHS 3
Slide 4: Profile
Profile A pure player in property development with more than 50 years of experience... A 3-step business Finding land Subcontracting Selling the and designing a and monitoring program program the construction Focusing on its core business: no diversification in property-related businesses (ren
Slide 5: 2011 key figures
2011 key figures Key financial indicators Sales: €2.5bn Operating profit: €201m, i.e. 8.2% operating margin Net profit: €120m Net cash: €507m Key activity indicators Over 1,500 employees Reservations: €3.2bn Housing units sold: 14,723 Backlog at end Dec. 2011: €3.1bn Galeo buildi
Slide 6: The French residential property market leader
The French residential property market leader Bouygues Immobilier French residential property market: 103,300 units in 2011 footprint Bouygues Immobilier is the leader of a fragmented market with a 13.9% market share in 2011 Bouygues Immobilier relies on A presence in all major French region
Slide 7: A leader on the commercial property market
A leader on the commercial property market Bouygues Immobilier has a strong expertise in Developing new office buildings or “turnkey” projects of high architectural quality Renovating and rebuilding older office spaces Sequana Tower, Issy “Le Monde” Head Office, Paris (Architect: ( Architect:
Slide 8: Agenda
Agenda PROFILE BASIC ACCOUNTING OPPORTUNITIES STRENGHTS 8
Slide 9: Basic accounting (1/3)
Basic accounting (1/3) Reservations are booked In residential property Once a contract has been signed by the customer Net of withdrawals In commercial property: when the sale is notarized and firm Ginko eco-neighbourhood, Bordeaux Backlog at end-Y+1 = Backlog at end-Y + Reservations Y+1
Slide 10: Basic accounting (2/3)
Basic accounting (2/3) The VEFA agreement is specific to the French market Property is sold “off-plan” for future completion Ownership of the land is transferred to the buyer as soon as the notarized sale has been signed Ownership of the building is transferred to the buyer as the constructi
Slide 11: Basic accounting (3/3)
Basic accounting (3/3) For each project, revenue in France is recognized on a percentage-of-completion basis as construction progresses Notarized sales trigger the beginning of revenue recognition Revenue = notarized sales X percentage of completion of the works Margin recognition follows th
Slide 12: Example of a residential program's revenue recognition
Example of a residential program’s revenue recognition Minimum Minimum Commercial 20% reservation 40% reservation Option on the land launch Purchase of the land Start of the works Completion M M+9 M+12 M+15 delivery M+20 M+30 M+36 LAND Land secured Land purchased RESERVATIONS 10% 20% 40% 70% 100% NO
Slide 13: Example of a residential program's cash profile
Example of a residential program’s cash profile 20% reservation 40% reservation Option on the land Purchase of the land Start of the works M M+12 M+15 Delivery M+20 M+30 M+36 LAND Land secured Land purchased NOTARIZED SALES 10% 40% 70% 100% WORKS 0% 20% 60% 100% REVENUE 0% 8% 42% 100% Securing build
Slide 14: Agenda
Agenda PROFILE BASIC ACCOUNTING OPPORTUNITIES STRENGTHS 14
Slide 15: A sound French residential property market (1/2)
A sound French residential property market (1/2) A French market underpinned by strong drivers Dynamic demographic trends: +6.5 million inhabitants between 2005 and 20301 Growing number of households: +25% between 2005 and 20301 Increased mobility and internal migrations A relatively low p
Slide 16: A sound French residential property market (2/2)
A sound French residential property market (2/2) Property is more and more considered as a safe investment in times of uncertainty Even when incentives were less favorable the market showed resilience A well-balanced market between investors and buyers Continued government incentives support
Slide 17: A robust French commercial property market
A robust French commercial property market Commercial property investment in France2 In €m The Paris region is the largest commercial 30,000 property market in Europe 25,000 20,000 55m sqm stock vs. 20m for London, 18m for 15,000 Berlin and 12m for Madrid at end 20111 10,000 5,000 2003 2004 2005
Slide 18: Sustainable development
Sustainable development The Grenelle environmental law has been strengthening standards for buildings in France Demanding thermal regulation for new buildings 2010 2012 2020 Low-energy Low-energy Positive-energy consumption1 consumption1 buildings2 for non residential for residential buildings b
Slide 19: Agenda
Agenda PROFILE BASIC ACCOUNTING OPPORTUNITIES STRENGTHS 19
Slide 20: A clear strategy (1/2)
A clear strategy (1/2) Bouygues Immobilier operates in 2 segments of property development: residential and commercial property This positioning can help cushion cyclical effects within each segment In residential property, Bouygues Immobilier is positioned on the entry- and mid-level segment o
Slide 21: A clear strategy (2/2)
A clear strategy (2/2) In Commercial property, Bouygues Green Office®, Immobilier delivers projects with high Rueil-Malmaison architectural quality and good environmental performance for users or investors Tailor-made projects answering customer’s needs and expectations Rehagreen®: Green Offic
Slide 22: A cautious risks management policy
A cautious risks management policy No administrative risk is taken All land promises are subject to administrative agreement Management of commercial risk A cautious policy before launching the programs In Residential property: Criteria to buy the land: Criteria to start the works: Minimum
Slide 23: Ability to react quickly
Ability to react quickly Dynamic management of the landbank Ex: rapid downsizing of the landbank in autumn 2008 and acquisition of land at attractive prices at first signs of an upturn during the spring 2009 Quickly adapting the offers to the changes in future anticipated market demand Adapt
Slide 24: A resilient financial profile
A resilient financial profile Strong sales growth: +9% CAGR between 2000 and 2011 Solidity of margin even during downturns 10.9% 12% 10.0% 10.1% 8.8% 10% 8.4% 8.4% 8.2% 6.5% 6.8% 8% 6.4% Sales (€m) 4.8% 4.8% 6% 2,924 2,989 2,418 2,465 4% 2,075 Operating margin (%) 1,557 1,608 1,288 1,230 1,295 2
Slide 25: Competitive edge
Competitive edge Recognized expertise in sustainable construction Anticipating regulations: 100% of residential programs meet low-energy criteria since July 2010 Development of partnerships to provide future energy performance services Ability to innovate: new products are emerging both for
Slide 26: IR Contact
IR CONTACT Valérie Agathon, VP Investor Relations Tel: +33 1 44 20 12 04 e-mail: vagathon@bouygues.com Corporate information: www.bouygues.com BOUYGUES - 32 avenue Hoche, 75378 Paris Cedex 08, France 26
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