Bouygues SA · EURONEXT:EN
Bouygues SA — FY2002 Earnings Presentation
33 slides from Bouygues SA's earnings presentation, February 2003
Slide 1: Highlights, Business Areas, Accounts, Outlook and Objectives
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 2: Construction sector: key figures
CONSTRUCTION SECTOR: key figures * Million euros 2001 2002 Sales 14,248 14,170 EBITDA 786 775 Net earnings 242 350 (1) Net cash 741 1,185 (1) including the €140m capital gain on the disposal of Bouygues Offshore * contribution to consolidated accounts The Construction sector houses Bouygues Construc
Slide 3: Bouygues Construction: key figures
BOUYGUES CONSTRUCTION (B/CW): key figures Million euros 2001 2002 Sales 6,324 5,827 of which France 2,987 2,986 of which International 3,337 2,841 EBITDA 205 171 Net earnings 21 113 * Net cash 675 1,040 (1) including the €140m capital gain on the disposal of Bouygues Offshore Strong sales, substanti
Slide 4: Bouygues Construction: 2002 earnings
BOUYGUES CONSTRUCTION (B/CW): 2002 earnings 2002 Million euros 2001 2002 2001 Recurring net earnings 21 49 + 28 3 difficult large-scale projects - (76) - 76 Capital gain on Bouygues Offshore - 140 + 140 Total net earnings 21 113 + 92 Good profit margins in France Some difficulties identified on inte
Slide 5: Bouygues Construction: difficult large-scale projects
BOUYGUES CONSTRUCTION (B/CW): difficult large-scale projects n Tahiti hospital ü €150m contract ü Disagreement on the work’s design and contract enforcement n Lötschberg tunnel (Switzerland) ü €250m contract (Bouygues share: €200m) ü Technical and geological problems encountered at the start of one
Slide 6: Bouygues Construction: prospects
BOUYGUES CONSTRUCTION (B/CW): prospects n 2003 sales (e): €4,750m - 10% * ü of which France €2,645m - 7% * ü of which International €2,105m - 13% * * Like-on-like Modernise organisational structures and adapt to the market
Slide 7: Colas: key figures
COLAS: key figures Million euros 2001 2002 Sales 7,328 7,415 of which France 4,250 4,276 of which International 3,078 3,139 EBITDA 530 536 Net earnings 203 208 Net cash 2 156 Continued excellent performance despite weak dollar
Slide 8: Colas: 2003 prospects
COLAS: 2003 prospects n Remain attentive to developments in the privatisation of the French motorway network n Pursue external growth as and when opportunities arise n 2003 sales (e): €7,400m = ü of which France €4,280m = ü of which International €3,120m = Good start to 2003
Slide 9: Bouygues Immobilier: key figures
BOUYGUES IMMOBILIER: key figures Million euros 2001 2002 Sales 940 1,288 housing 461 607 corporate/commercial property 479 681 EBITDA 51 69 Net earnings 31 37 Net cash 64 30 Further rise in sales (+ 37%) and net earnings (+ 19%)
Slide 10: Immobilier: 2003 prospects
BOUYGUES IMMOBILIER: 2003 prospects n Corporate/commercial market: our offer remains adapted to demand n Housing market: growth with no increase in prices n 2003 sales (e): €1,140m - 11% ü of which housing €685m + 13% ü of which corporate/commercial €455m - 33% Business remains firm in 2003
Slide 11: Saur: key figures
SAUR: key figures Million euros 2001 2002 Sales 2,494 2,516 of which France 1,607 1,682 of which International 887 834 EBITDA 198 221 Operating income 85 108 Net earnings 33 27 Net debt 678 550 Significant improvement in operating income, as announced
Slide 12: Saur: business activities in Côte d'Ivoire
SAUR: business activities in Côte d’Ivoire n Business activities: Offshore gas production: 40% stake in Foxtrot Power generation: 88% stake in CIPREL Power supply: 70% stake in CIE * Water supply: 49% stake in SODECI * n Contribution to consolidated sales: €400m (of which over 90% in the south of th
Slide 13: Saur: exposure to political risk in Côte d'Ivoire
SAUR: exposure to political risk in Côte d’Ivoire n Value of securities held by Saur at 31/12/2002: €91m ü Additional provisions: - €17m ü Balance of guarantees given and received: - €21m n Net exposure to political risk: €53m
Slide 14: Saur: 2003 prospects
SAUR: 2003 prospects n Continued improvement in operation, excluding the impact of the situation in Côte d’Ivoire n 2003 sales (e): €2,520m = ü of which France €1,680m = ü of which International €840m = Saur has a non-cyclical business It is financially autonomous
Slide 15: TF1: key figures
TF1: key figures Million euros 2001 2002 pro forma (1) Sales 2,522 2,625 of which advertising 1,497 1,507 of which diversification 1,025 1,118 EBITDA 500 428 Net earnings 179 155 Net debt 739 494 (1) pro forma taking TPS consolidation into account TF1 holding up well
Slide 16: TF1: audience share
TF1: audience share Channel 2001 2002 Women under 50 35.5% 35.7% Individuals 4 years and over 32.7% 32.7% Individuals between 15 and 24 31.0% 32.3% Viewing time per person 3hr17 3hr20 (individuals 4 years and over) Still leader in terms of audience share
Slide 17: TF1: 2003 prospects
TF1: 2003 prospects n Remain leader in free TV segment and be a key player in pay TV segment in France n 2003 sales (e): €2,730m + 2% * ü of which advertising €1,534m + 2% ü of which diversification activities €1,196m + 3% * Like-on-like TF1 is adapting to less favourable advertising market conditio
Slide 18: Stock ownership structure, March 2003
BOUYGUES TELECOM: stock ownership structure n March 2003 79.1% 33.4% BDT 20.9% 50% 6.5% 10.1% Bouygues holds 73% of Bouygues Telecom
Slide 19: Stock ownership structure after planned merger of Bouygues Telecom and BDT
BOUYGUES TELECOM: stock ownership structure n After planned merger of Bouygues Telecom and BDT 72.9 % 10.5 % 6.5 % 10.1 % General principles of stockholder agreements maintained
Slide 20: Bouygues Telecom: key figures
BOUYGUES TELECOM: key figures Million euros 2001 2002 2002 2001 Sales 2,681 2,945 + 10% of which recurring net sales(1) 2,316 2,703 + 17% EBITDA 473 846 + 79% Operating income 53 305 x 5.8 Net earnings (group share) (61) 130 ns EBITDA / Recurring net sales 20.4 % 31.3 % + 53% (1) Airtime, excluding
Slide 21: Bouygues Telecom: financial data
BOUYGUES TELECOM: financial data Million euros 2001 2002 2002 2001 Stockholders’ equity 1,340 2,148 + 60% Net debt 1,904 1,486 - 22% Net debt/stockholders’ equity 142% 69% - Capital expenditure excl. UMTS licence 744 469 - 37% UMTS licence - 619 - Total capital expenditure 744 1,088 - Very sound fin
Slide 22: Bouygues Telecom: generation of free cash flow
BOUYGUES TELECOM: generation of free cash flow Net investments for operations €m Cash flow + change in working capital requirement 1, 200 1,049 1, 000 800 868 688 600 534 458 * 400 200 239 0 -10 Free cash flow -200 - 449 + 410 -313 -400 1999 2000 2001 2002 2003 * Excluding UMTS licence With capital
Slide 23: UMTS
BOUYGUES TELECOM: UMTS n Financing ü The licence (€619m) was financed by stockholders in the form of a capital increase ü Investments will replace the costs of renewing the GSM/GPRS network ü These investments will be covered by Bouygues Telecom’s cash flow n The roll-out pace will be adapted to the
Slide 24: Bouygues Telecom: debt
BOUYGUES TELECOM: debt n In 2002, Bouygues Telecom repaid €382m of its syndicated loan, of which €304m in advance n In 2005, Bouygues Telecom should be in a positive cash situation n An improved net debt / EBITDA ratio cut the spread on its syndicated loan from 130 to 75 basis points in 2002 Bouygue
Slide 25: Bouygues Telecom: market shares
BOUYGUES TELECOM: market shares Recurring sales (1) Customer base (2) Contract 2001 2002 2001 2002 2002 Bouygues Telecom 17.7% 17.7% 17.9% 15.1% 16.8% Orange 45.1% 45.5% 48.2% 49.8% 49.7% SFR 37.2% 36.8% 33.9% 35.1% 33.5% TOTAL 100% 100% 100% 100% 100% (1) source: analysts (2) source: French telecom
Slide 26: Bouygues Telecom: breakdown of sales
BOUYGUES TELECOM: breakdown of sales Million euros 2001 2002 2002 2001 Recurring net sales 2,316 2,703 + 17% of which services (incl. SMS) 204 285 + 40% % of recurring net sales 8.8% 10.5% - Handsets and other 365 242 - 34% Total sales 2,681 2,945 + 10% Strong growth in network-related revenues
Slide 27: Bouygues Telecom: mobile multimedia
BOUYGUES TELECOM: mobile multimedia n By launching i-mode, a user-friendly and reliable mobile multimedia service, Bouygues Telecom has got a head start over its competitors n Almost 100,000 i-mode customers acquired in three months Best commercial launch outside Japan
Slide 28: Bouygues Telecom: mobile multimedia, a wide range of services
BOUYGUES TELECOM: mobile multimedia a wide range of services SERVICES TECHNOLOGIES SMS 1.5 billion SMS exchanged in 2002 GSM kiosk 80 services available, SMS+ 8 million SMS + sent in 2002 GPRS MMS A wide range of handsets, (Sept. 2002) some with inbuilt cameras i-mode Successful commercial launch (N
Slide 29: i-mode: simple, works and good value for money
BOUYGUES TELECOM: i-mode, it’s simple, it works and it’s good value for money n All the advantages of a pocket Internet Send and receive Browse websites Create and share Make a call! e-mails of major brand names personalised homepage n A universe that offers a wide range of services and uses: ü Offi
Slide 30: i-mode, first results
BOUYGUES TELECOM: i-mode, first results n 84% of i-mode subscribers actually use the services on offer n Most popular services: 1. Ring tones / images 2. News / weather / sport 3. Practical information 4. Horoscope / games n 600,000 e-mails exchanged at end December 2002 800,000 e-mails exchanged in
Slide 31: i-mode business model
BOUYGUES TELECOM: i-mode business model Content providers i-mode paid customers • Better services Open portal • Regularly updated content 86% of revenues from Bouygues Access, pay-for-use services Telecom navigation, are paid back to Additional subscription content providers revenues A motivating an
Slide 32: Objectives
BOUYGUES TELECOM: objectives n Develop mobile multimedia services, a major growth platform for Bouygues Telecom, with i-mode n Enhance customer satisfaction and loyalty n Optimise acquisition and retention costs according to segments n Continue developing its own network of boutiques n Improve Bouyg
Slide 33: 2003 prospects
BOUYGUES TELECOM: 2003 prospects n Strong differentiation factor with i-mode n Sound financial situation n Generating more free cash flow n Rigorous and efficient management n 2003 recurring net sales (e): €3,000m + 11% 2003 sales (e): €3,200m + 9% A simple and clear strategic vision