Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2017 Earnings Presentation
43 slides from Bouygues Sa's earnings presentation, May 17, 2017
Slide 1: First Quarter 2017 Results Presentation
FIRST QUARTER 2017 RESULTS PRESENTATION 17 MAY 2017
Slide 2: Forward-looking statements 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: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 3
Slide 4: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS As every year, Q1 results are not indicative of the Group’s full-year performance Backlog for the construction businesses reached a record level at end-March 2017 Bouygues Telecom’s good commercial and financial results confirmed its robust growth which resulted in positive curren
Slide 5: Group Key Figures (1/2)
GROUP KEY FIGURES (1/2) Q1 Q1 €m Change 2016 2017 Sales 6,534 6,847 +5%a o/w France 4,361 4,601 +6% The positive trend in Q1 results gives us o/w international 2,173 2,246 +3% confidence in our ability to meet our 2017 objective of improved profitability Current operating profit/(loss) profit (140)
Slide 6: Group Key Figures (2/2)
GROUP KEY FIGURES (2/2) In line with 2016, the Group has improved its profitability in the first quarter of 2017, Q1 Q1 driven mainly by Bouygues Telecom €m 2016 2017 Change The cost-cutting and programming Current operating profit/(loss) (140) (67) +73m optimization strategy implemented since o/w B
Slide 7: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 7
Slide 8: Construction Businesses
CONSTRUCTION BUSINESSES EXTENSION OF IQALUIT AIRPORT - CANADA Widening of RD 177 in Ille-et-Vilaine Carré Mosaïk - Montpellier Zagreb Airport - Croatia 8
Slide 9: Construction Businesses Backlog at a Record Level
CONSTRUCTION BUSINESSES BACKLOG AT A RECORD LEVEL Backlog (€m) +4%a €31.0bn RECORD BACKLOG OF €31bn €28.8bn €30.1bn €29.9bn 2,972 AT END-MARCH 2017, UP 4% YEAR-ON-YEAR 2,485 2,421 2,601 +14% 7,849 7,723 7,769 +1% 8,064 STRONG INTERNATIONAL PRESENCE 57% of the backlog at Bouygues Construction and Col
Slide 10: French Construction Sector Improving
FRENCH CONSTRUCTION SECTOR IMPROVING Backlog in France (€m) BACKLOG UP 6% YEAR-ON-YEAR +6% €15.4bn 5th quarter of growth in residential property €14.9bn €14.2bn €14.1bn reservations at Bouygues Immobilier 2,381 2,796 +14% 2,314 2,448 > +30%a in Q1 2017 vs Q1 2016 3,615 3,262 3,037 3,298 +9% Level of
Slide 11: Grand Paris: Contracts Won
GRAND PARIS: CONTRACTS WON Extension of metro line 14 Tramway T4 Excavation of a 2.2-km tunnel and construction of 4 stations Laying of railway track and road works Duration of the work: 2015-2018 Duration of the work: 2016-2019 Contract amount: €128m Contract amount: €49m Metro line 15 South Develo
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Slide 13: Continued Growth in Mobile
CONTINUED GROWTH IN MOBILE 13.4M MOBILE CUSTOMERS AT END-MARCH 2017 +364,000 customers in Q1 2017 Of which +130,000 were mobile plan customers Plan net adds excluding MtoMa excluding M2Ma ('000 of customers) 228 147 149 151 171 146 129 130 73 101 25 22 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14
Slide 14: Steady Growth in Fixed Broadband
STEADY GROWTH IN FIXED BROADBAND 3.2M FIXED CUSTOMERS AT END-MARCH 2017 Total net growth of fixed broadbanda +88,000 customers in Q1 2017 ('000 of customers) In line to reach target of +1m fixed customers Actual Target set in 2014 at end-2017 (vs end-2014) BASE OF 518,000 VERY-HIGH-SPEEDa CUSTOMERS
Slide 15: Strong Financial Results for Bouygues Telecom
STRONG FINANCIAL RESULTS FOR BOUYGUES TELECOM SALES UP 8% YEAR-ON-YEAR €m Q1 2016 Q1 2017 Change EBITDA UP €97m VS Q1 2016 Sales 1,131 1,222 +8%a Sales from network up €66m o/w sales from network 971 1,037 +7% EBITDA 146 243 +€97m Opex down €31m EBITDA/sales from network margin 15.0% 23.4% +8.4pts >
Slide 16: Leadership Maintained in 4G and Preparing for 5G
LEADERSHIP MAINTAINED IN 4G OVER THE LONG TERM AND PREPARING FOR 5G IMPROVING COVERAGE AND QUALITY OF MOBILE SERVICE Number of active 4G sitesa In dense areas, continuation of network densification > Number of sites to be increased by 50% in the next 4 years In less dense areas, sharp improvement in
Slide 17: Ramping-up of FTTH Roll-out
RAMPING-UP OF FTTH ROLL-OUT END-MARCH 2017 Growth in FTTHa premises – secured and marketed (millions) +4m premises secureda vs end-December 2016, reaching 13m > Extension of the agreement with Orange in medium dense area (+3m) > Agreement with Altitude Infrastructure in PIN area (+1m) 20m 20m 13m Of
Slide 18: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 18
Slide 19: Condensed Consolidated Income Statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) €m Q1 2016 Q1 2017 Change Sales 6,534 6,847 +5%a Current operating profit (140) (67) +€73m Other operating income and expensesb (87) (17) +€70m Operating profit (227) (84) +€143m Cost of net debt (62) (57) +€5m o/w financial income 6 5 -€1m o/w financial
Slide 20: Condensed Consolidated Income Statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) €m Q1 2016 Q1 2017 Change Income tax 89 42 -€47m Share of net profit of joint ventures and associates 9 75 +€66m o/w Alstom 0a 45 +€45m Net profit from operations (197) (26) +€171m Net profit attributable to non- non-controlling interests 17 (12) -€29m N
Slide 21: Change in Net Cash Position (1/2)
CHANGE IN NET CASH POSITION (1/2) In €m Net cash at Net cash at 31--12- 31 12-2016 31--03- 31 03-2017 (1,866) (3 304) +94 +48 0 Acquisitions/disposalsa Otherb 700 MHz Frequencies -1,580 Operations Q1 2016 (2,561) +712c +1 -117 -1,559 (3,524) (a) Including the disposal of AB Group and the acquisition
Slide 22: Change in Net Cash Position (2/2)
CHANGE IN NET CASH POSITION (2/2) In €m Breakdown of operation Net cash Change in operating Net Capex WCR and otherb flowa +251 -408 -1,423 -1,580 Q1 2016 +144 -366 -1,337 -1,559 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating to operating activi
Slide 23: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 23
Slide 24: Confirmation of 2017 Outlook
CONFIRMATION OF 2017 OUTLOOK THE GROUP EXPECTS TO CONTINUE TO IMPROVE ITS PROFITABILITY IN 2017 In a market demonstrating long-term growth potential, the Construction businesses will continue a selective approach to focus on profitability rather than volumes > As a result, current operating margin s
Slide 25: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 25
Slide 26: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€m) Backlog by region (end-March 2017) France 5% 3% €3.6bn -3% 32% €3.0bn €3.0bn €2.9bn 1,487 2,380 1,292 1,243 -4% 1,497 1,243 1,674 1,645 -2% 44% 16% Q1 2014 Q1 2015 Q1 2016 Q1 2017 France Asia and Middle East Europe (excl. Fr
Slide 27: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Commercial property Reservationsa (€m) Residential property +29% €0.6bn €0.5bn €0.4bn 15 x3 €0.4bn 160 5 40 541 +27% 382 426 324 Q1 2014 Q1 2015 Q1 2016 Q1 2017 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commerc
Slide 28: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS Backlog (€m) €m Q1 2016 Q1 2017 Change Sales 1,754 1,928 +10%a €8.1bn €7.8bn €7.7bn €7.8bn +1%a o/w France 1,084 1,180 +9% o/w international 670 748 +12% Current operating profit (223) (264) -€41m 3,615 3,262 3,037 3,298 +9% Operating profitb (238) (268) -€30m (a) Up 10% l
Slide 29: Key Indicators at Bouygues Telecom (1/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (1/2) Q1 Q2 Q3 Q4 Q1 2015 2016 '000 customers (end of period) 2016 2016 2016 2016 2017 Mobile customer base 11,890 12,130 12,433 12,660 12,996 12,996 13,359 Mobile customer base excl. MtoM 10,091 10,251 10,421 10,533 10,682 10,682 10,773 o/w plana 9,139 9,290
Slide 30: Key Indicators at Bouygues Telecom (2/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (2/2) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Mobile ARPUa €/month/subscriber 22.4 22.4 23.0 22.7 22.5 Plan ARPUa €/month/subscriber 23.6 23.6 24.1 23.8 23.6 Prepaid ARPUa €/month/subscriber 7.0 7.2 7.3 7.1 6.9 Data usageb MB/month/subscriber 1,635 1,997 2,31
Slide 31: Bouygues Telecom Has Secured Its FTTH Access
ANNEX BOUYGUES TELECOM HAS SECURED ITS FTTHa ACCESS (millions) Total premises on Bouygues Telecom Bouygues Telecom the market at end-Q1 2017 at end-2019 1.5 In negotiation 5.5 5.5 Secured o/w Very Dense Area Secured o/w 4 4.5 marketed 1.8 marketed 6 Medium Dense Area/ 12 12 Secured o/w Call for Expr
Slide 32: Condensed Consolidated Balance Sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET €m End- End-Dec 2016 End- End-Mar 2017 Change Non-current assets 17,432 17,593 +€161m Current assets 17,301 16,593 -€708m Held-for-sale assets and operations 121 121 €0m TOTAL ASSETS 34,854 34,307 -€547m Shareholders’ equity 9,420 9,428 +€8m Non-current lia
Slide 33: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY lfl & €m Q1 2016 Q1 2017 Change constant fx Construction businessesa 4,937 5,144 +4% +5% o/w Bouygues Construction 2,771 2,768 0% 0% o/w Bouygues Immobilier 475 517 +9% +9% o/w Colas 1,754 1,928 +10% +10% TF1 482 499 +4% +2% Bouygues Telecom 1,131 1,222 +8% +8% Hold
Slide 34: Contribution to Group EBITDA by Sector of Activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (116) (105) +€11m o/w Bouygues Construction 63 94 +€31m o/w Bouygues Immobilier 8 13 +€5m o/w Colas (187) (212) -€25m TF1 54 74 +€20m Bouygues Telecom 146 243 +€97m Holding company and other (
Slide 35: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (116) (134) -€18m o/w Bouygues Construction 82 99 +€17m o/w Bouygues Immobilier 25 31 +€6m o/w Colas (223) (264) -€41m TF1 15 36 +€21m Bouygues Telecom (33) 41 +€74m Holding c
Slide 36: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (136) (138) -€2m o/w Bouygues Construction 78a 99 +€21m o/w Bouygues Immobilier 24a 31 +€7m o/w Colas (238)a (268)b -€30m TF1 (19)a 30b +€49m Bouygues Telecom (55)a 34b +€89m Holding
Slide 37: Contribution to Net Profit Attributable to the Group by Sector
ANNEX CONTRIBUTION TO NET PROFIT ATT. TO THE GROUP BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (103) (94) +€9m o/w Bouygues Construction 47 79 +€32m o/w Bouygues Immobilier 16 16 +€0m o/w Colas (166) (189) -€23m TF1 (6) 12 +€18m Bouygues Telecom (40) 18 +€58m Alstom 0a 45
Slide 38: Contribution to Group Net Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (25) (15) +€10m o/w Bouygues Construction 85 125 +€40m o/w Bouygues Immobilier 13 13 €0m o/w Colas (123) (153) -€30m TF1 39 72 +€33m Bouygues Telecom 160 209 +€49m Holding company and o
Slide 39: Contribution to Net Capital Expenditure by Sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses 80 72 -€8m o/w Bouygues Construction 35 18 -€17m o/w Bouygues Immobilier 4 6 +€2m o/w Colas 41 48 +€7m TF1 49 52 +€3m Bouygues Telecom 238 282 +€44m Holding company and other (1) 2 +
Slide 40: Contribution to Group Free Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m Q1 2016 Q1 2017 Change Construction businesses (105) (87) +€18m o/w Bouygues Construction 50 107 +€57m o/w Bouygues Immobilier 9 7 -€2m o/w Colas (164) (201) -€37m TF1 (10) 20 +€30m Bouygues Telecom (78) (73) +€5m Holding company a
Slide 41: Net Cash by Business Segment
ANNEX NET CASH BY BUSINESS SEGMENT End- End-March €m End- End-Dec 2016 Change 2017 Bouygues Construction 3,387a 2,934a -€453m Bouygues Immobilier (124)a (335)a -€211m Colas 517a (171)a -€688m TF1 187 215 +€28m Bouygues Telecom (1,012) (1,143) -€131m Holding company and other (4,821)b (4,804)b +€17m
Slide 42: Debt Maturity Schedule at End-March 2017
ANNEX DEBT MATURITY SCHEDULE AT END-MARCH 2017 Available cash: €9.0bn €10bn €9bn €8bn Undrawn MLT facilities €7bn €5.7bn €6bn €5bn €4bn €3bn Cash €3.3bn €2bn €1bn €0bn 42
Slide 43: Impacts of Exceptional Items on Net Profit Attributable to the Group
ANNEX IMPACTS OF EXCEPTIONAL ITEMS ON NET PROFIT ATTRIBUTABLE TO THE GROUP Net profit attributable to the Group excl. exceptional items €m Q1 2016 Q1 2017 Change Net profit attributable to the Group (180) (38) +€142m o/w non-current income/charges related to the construction businesses (net of taxes