Bouygues Sa · EURONEXT:EN
Bouygues Sa — 9M 2015 Earnings Presentation
51 slides from Bouygues Sa's earnings presentation, Nov 13, 2015
Slide 1: Nine-month 2015 results presentation
Nine-month 2015 results presentation Paris – 32 Hoche 13 November 2015 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
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: Reminder: change of accounting methods in 2015
Reminder: change of accounting methods in 2015 As announced Application of IFRIC 21 from 1 January 2015, which affects the timing of the recognition of some taxes (such as C3S and IFER in France) Neutral impact over the full year but material for quarterly reporting: these taxes are no longer sp
Slide 4: Highlights and key figures
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 4
Slide 5: 9M 2015 highlights
9M 2015 highlights 9-month 2015 results in line with H1 2015 trends Solid construction businesses thanks to strong international momentum and adaptation to a tough French market Bouygues Telecom’s commercial and financial results on track to achieve 2015 targets 2015 outlook confirmed 5
Slide 6: Group key figures (1/2)
Group key figures (1/2) €m 9M 2014 restated 9M 2015 Change Sales 24,223 23,824 -2%a o/w France 15,664 14,650 -6% o/w international 8,559 9,174 +7% Current operating profit 526 597 +€71m Operating profit 921b 491c -€430m Net profit attributable to the Group 712d 334 -€378m Net profit/(loss) attributa
Slide 7: Group key figures (2/2)
Group key figures (2/2) Current operating profit/(loss) Change vs Change vs Change vs Change vs €m Q1 2015 2014 Q2 2015 2014 Q3 2015 2014 9M 2015 2014 restated restated restated restated Construction businesses (146) -€20m 234 -€7m 431 +€17m 519 -€10m TF1 28 +€9m 69 +€41m 10 €0m 107 +€50m Bouygues T
Slide 8: Review of operations
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 8
Slide 9: Construction businesses
Construction businesses CONSTRUCTION, Bouygues Immobilier cl a
Slide 10: Financial results of the construction businesses
Financial results of the construction businesses Like-for-like and €m 9M 2014 restated 9M 2015 Change at constant exchange rates Sales 19,347 19,134 -1% -7% o/w France 10,976 10,013 -9% -9% o/w international 8,371 9,121 +9% -5% Current operating profit 529 519 -€10m o/w Bouygues Construction 240 235
Slide 11: Solid commercial performance of the construction businesses
Solid commercial performance of the construction businesses Construction businesses’ order book (€m) Colas Bouygues Immobilier Bouygues Construction €29.0bn +6% High level order book: €29bn at end-September 2015, €26.9bn €27.4bn €27.4bn up 6% year-on-year (+1% at constant exchange rates) 7,083 7,0
Slide 12: Continued tough French environment
Continued tough French environment Construction businesses’ order book in France (€m) Bouygues Construction Bouygues Immobilier Colas French order book: €13bn, down 10% year-on-year €15.1bn €14.4bn €13.0bn -10% 3,523 3,226 2,901 2,514 2,047 2,132 However, some market segments are performing bett
Slide 13: Positive momentum in international activity
Positive momentum in international activity Construction businesses’ international order book (€m) Bouygues Construction Change International order book: €16.1bn at end-September 2015, over Bouygues Immobilier up 30% over 2 years and up 23% year-on-year Colas 2 years (up 11% year-on-year at consta
Slide 14: Two illustrations of a growing international presence
Two illustrations of a growing international presence Exam board headquarters for Cambridge University (UK) Construction of two new five-story office blocks and a 39-meter tower Project developed using Building Information Modelling technology Delivery expected end-2017 Amount: ~€165m Tw
Slide 15: Sustainable construction is an opportunity
Sustainable construction is an opportunity Bouygues has a competitive edge in sustainable construction Expertise and innovative know-how in integrated renovation, eco-neighbourhoods, low carbon construction and soft mobility 79 innovations to create a desirable and sustainable urban environmen
Slide 16: A track record in sustainable construction
A track record in sustainable construction Renovate Design and build eco-districts Construct low carbon buildings Enhance soft mobility Bouygues Construction’s Head Office Green City Green Office Wattway (solar road) St Quentin-en-Yvelines, France Zurich, Switzerland Bordeaux, France World’s 1st bui
Slide 17: 17
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Slide 18: Maintaining strong momentum in mobile
Maintaining strong momentum in mobile Total net growth of mobile customers ('000) 1,000 Good commercial performances in a highly competitive environment 520 208,000 new mobile customers in Q3 2015 312 149,000 new plan customers excl. MtoMa 152 in Q3 2015 and 442,000 in 9M 2015 Q1 15Q2 15Q3 15Q
Slide 19: Leadership in mobile data use
Leadership in mobile data use Mobile customers consume on average 1.3 GB/month in Q3 2015 4G users: 2.4 GB/month Strong increase in data top-up sales: ~500,000 in September 2015 vs ~80,000 in September 2014 Bouygues Telecom customers represent 27% of national 3G/4G traffic Average data use b
Slide 20: Continued increase of fixed broadband market share
Continued increase of fixed broadband market share Total net growth of fixed broadband customers (‘000) 1,000 No.2 in net adds in Q3 2015 with 94,000 new fixed customers 268 174 96 2.7m customers at end Q3 2015 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 YTD Objective
Slide 21: Recovery in sales from network
Recovery in sales from network 35 ARPU trend (€/customer/month) 33.0 29.4 30 28.6 Stabilized mobile and fixed ARPU 24.2 25 22.9 23.3 20 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Fixed ARPU Mobile ARPU Sales from network up 3% vs Q2 2015 Sales from network (€m) and 0.3% year-on-year 978 974 975 S
Slide 22: Bouygues Telecom's improving financials
Bouygues Telecom’s improving financials Change Change Change vs Change €m Q1 2015 vs 2014 Q2 2015 vs 2014 Q3 2015 2014 9M 2015 vs 2014 restated restated restated restated Sales 1,063 -2% 1,093 0% 1,163 +4% 3,319 +1% Sales from network 932 -4% 952 -2% 978 0% 2,862 -2% EBITDA 118 €0m 205 +€21m 242 +€2
Slide 23: Financial statements
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 23
Slide 24: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) 9M 2014 €m 9M 2015 Change restated Sales 24,223 23,824 -2% Current operating profit 526 597 +€71m Other operating income and expenses 395a (106)b -€501m Operating profit 921 491 -€430m Cost of net debt (238) (210) +€28m o/w financial income 40 29 -€11m o
Slide 25: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) 9M 2014 €m 9M 2015 Change restated Income tax expense (175) (82) +€93m Share of profits/(losses) of joint ventures and associates 407a 159b -€248m o/w Alstom 119c 0 -€119m Net profit/(loss) 931 381 -€550m Net profit attributable to non-controlling intere
Slide 26: Solid group financial position
Solid group financial position End-Sept End-Sept 2014 €m End-Dec 2014 Change Change 2015 restated Shareholders' equity 9,455 8,952 -€503m 9,300 -€348m Net debt 3,216 4,883 +€1,667m 4,989 -€106m Net gearing 34% 55% +21 pts 54% +1 pts €106m decrease of net debt year-on-year despite the €428m increas
Slide 27: Change in net cash position (1/2)
Change in net cash position (1/2) Net cash at 12/31/2014 €m Net cash at 09/30/2015 (3,216) +133 (4,883) Acquisitions / -736 Disposalsa Dividends -1,081 +17 Operation Othersb 2014 (4,435) +970c -198 -1,337 +11 (4,989) restated (a) Including scope effects (b) Including stock options and TF1’s buyback
Slide 28: Change in net cash position (2/2)
Change in net cash position (2/2) Breakdown of operation Net cash flowa Net capital expenditure €m -881 Change in operating WCRb +1,196 and other -1,396 -1,081 9M 2014 restated +1,412 -915 -1,834 -1,337 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR rela
Slide 29: Outlook
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 29
Slide 30: Outlook for 2015 confirmed
Outlook for 2015 confirmed Good resilience of the construction businesses thanks to strong momentum in the international activity and the ongoing adaptation measures in France Current operating margin at the level of 2014, at constant exchange rates Improvement in TF1’s current operating margi
Slide 31: Annex
HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 31
Slide 32: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction International France Order book (€m) Order intakea Long-term order book (beyond Y+5) For execution in Y+1 8,980 9,112 +13% For execution from Y+2 to Y+5 For execution in Y 8,611 8,048 €m 19,681 +12% 3,284 17,051 17,711 17,626 2,613 4,752 3,972 5,705 +44% 2,
Slide 33: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa Commercial property Order book Residential property 2,879 1,412 1,375 -3% 2,615 +6% 1,300 €m 498 2,274 191 528 2,144 210 420 -55% 318 366 -13% 1,184 +19% 2,381 2,087 1,090 992 1,778 1,956 +10% 9M 2013 9M 2014 9M 2015 End-Sept End-Sept End-Sept E
Slide 34: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France 8,064 8,242 9M 2014 7,849 8,079 7,671 €m 9M 2015 Change 7,083 -8% 7,158 restated Sales 9,184 8,933 -3%b 4,449 4,727 o/w France 4,980 4,478 -10% 4,587 4,910 4,445 4,182 -6% 4,123 o/w international
Slide 35: Key figures at TF1
ANNEX Key figures at TF1 Group audience sharea In % TF1 9M 2015 21.3 3.1 2.0 1.2 27.6 TMC NT1 HD1 9M 2014 22.9 3.2 1.8 0.9 28.8 9M 2014 €m 9M 2015 Change restatedb Sales 1,613 1,400 -13%c o/w group advertising 1,123 1,082 -4% Current operating profit 57 107 +€50m Current operating margin 3.5% 7.6% +
Slide 36: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Mobile customer base 11,271 11,286 11,094 11,143 11,143 11,064 11,024 11,048 11,121 11,121 11,273 11,433 11,641 ('000) o/w plana 9,618 9,802 9,760 9,910 9,
Slide 37: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 Mobile ARPUa €/month/subscriber 26.6 26.8 26.9 25.5 24.2 24.4 24.6 23.8 22.9 22.9 23.3 Plana ARPU €/month/subscriber 30.3 30.0 29.9 27.8 26.3 26.3 26.3 25.5 24.4 24.
Slide 38: Sales by sector of activity
ANNEX Sales by sector of activity Change like-for-like 9M 2014 €m 9M 2015 Change and at constant restated exchange rates Construction businessesa 19,347 19,134 -1% -7% o/w Bouygues Construction 8,492 8,826 +4% -5% o/w Bouygues Immobilier 1,942 1,569 -19% -20% o/w Colas 9,184 8,933 -3% -7% TF1 1,613
Slide 39: Contribution to EBITDA by sector of activity
ANNEX Contribution to EBITDA by sector of activity 9M 2014 €m 9M 2015 Change restated Construction businesses 900 872 -€28m o/w Bouygues Construction 349 324 -€25m o/w Bouygues Immobilier 112 67 -€45m o/w Colas 439 481 +€42m TF1 57 117 +€60m Bouygues Telecom 523 565 +€42m Holding company and other (
Slide 40: Contribution to current operating profit by sector of activity
ANNEX Contribution to current operating profit by sector of activity 9M 2014 €m 9M 2015 Change restated Construction businesses 529 519 -€10m o/w Bouygues Construction 240 235 -€5m o/w Bouygues Immobilier 123 89 -€34m o/w Colas 166 195 +€29m TF1 57 107 +€50m Bouygues Telecom (41) (9) +€32m Holding c
Slide 41: Contribution to operating profit by sector of activity
ANNEX Contribution to operating profit by sector of activity €m 9M 2014 restated 9M 2015 Change Construction businesses 529 504 -€25m o/w Bouygues Construction 240 223a -€17m o/w Bouygues Immobilier 123 86a -€37m o/w Colas 166 195 +€29m TF1 386b 92a -€294m Bouygues Telecom 45c (85)a -€130m Holding c
Slide 42: Contribution to net profit attributable to the Group by sector
ANNEX Contribution to net profit attributable to the Group by sector of activity €m 9M 2014 restated 9M 2015 Change Construction businesses 747 471 -€276m o/w Bouygues Construction 181 243 +€62m o/w Bouygues Immobilier 73 46 -€27m o/w Colas 493a 182 -€311m TF1 149b 28 -€121m Bouygues Telecom 20 (50)
Slide 43: Condensed consolidated balance sheet
ANNEX Condensed consolidated balance sheet Restated End-Dec End-Sept €m Change end-Sept 2014 2015 2014 Non-current assets 18,504 17,627 -€877m 18,426 Current assets 16,364 16,005 -€359m 17,251 Held-for-sale assets and operations - 541a +€541m - TOTAL ASSETS 34,868 34,173 -€695m 35,677 Shareholders'
Slide 44: Contribution to net cash flow by sector of activity
ANNEX Contribution to net cash flow by sector of activity 9M 2014 €m 9M 2015 Change restated Construction businesses 721 705 -€16m o/w Bouygues Construction 258 263 +€5m o/w Bouygues Immobilier 66 42 -€24m o/w Colas 397 400 +€3m TF1 48 79 +€31m Bouygues Telecom 812 547 -€265m Holding company and oth
Slide 45: Contribution to net capital expenditure by sector of activity
ANNEX Contribution to net capital expenditure by sector of activity 9M 2014 €m 9M 2015 Change restated Construction businesses 397 281 -€116m o/w Bouygues Construction 139 130 -€9m o/w Bouygues Immobilier 9 10 +€1m o/w Colas 249 141 -€108m TF1 23 29 +€6m Bouygues Telecom 494 571 +€77m Holding compan
Slide 46: Contribution to free cash flow by sector of activity
ANNEX Contribution to free cash flow by sector of activity 9M 2014 €m 9M 2015 Change restated Construction businesses 324 424 +€100m o/w Bouygues Construction 119 133 +€14m o/w Bouygues Immobilier 57 32 -€25m o/w Colas 148 259 +€111m TF1 25 50 +€25m Bouygues Telecom 318 (24) -€342m Holding company a
Slide 47: Net cash by business segment
Net cash by business segment End-Sept. 2014 €m End-Sept. 2015 Change restated Bouygues Construction 2,231 2,642 +€411m Bouygues Immobilier 93 (188) -€281m Colas (143)a (231) -€88m TF1 436b 235 -€201m Bouygues Telecom (890) (1,012) -€122m Holding company and other (6,716) (6,329) +€387m TOTAL (4,989)
Slide 48: Financing
ANNEX Financing Available cash: €7.4bn €m Debt maturity schedule at end-September 2015 8,000 7,000 6,000 5,000 Undrawn facilities o/w €672m of 4,000 €5.5bn commercial 3,000 papers 2,000 1,000 Cash €1.9bn 0 48
Slide 49: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group 9M 2014 €m 9M 2015 Change restated Net profit attributable to the Group 712 334 -€378m H1 exceptional items (398) 38 +€436m o/w net capital gain on the sale of Eurosport International (31%) and the remeasurement of the (113)
Slide 50: Impact of the application of IFRIC 21 on 2014 interim results
ANNEX Impact of the application of IFRIC 21 on 2014 interim results Q1 2014 Q2 2014 Q3 2014 Q4 2014 €m Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Bouygues Construction 91 (10) 81 89 3 92 64 3 67 91 4 95 Bouygues Immobilier 31 (3) 28 40 1 41 53
Slide 51: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 51