Bouygues Sa · EURONEXT:EN
Bouygues Sa — Investor Day (February 2023)
104 slides from Bouygues Sa's investor day presentation, Feb 23, 2023
Slide 1: Capital Markets Day
PARIS 23 FEBRUARY 2023 CAPITAL MARKETS DAY 1 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 2: Forward-looking statements
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: Today's speakers
Today’s speakers Olivier ROUSSAT Pascal GRANGÉ Bouygues Group Bouygues Group CEO Deputy CEO & CFO Jérôme STUBLER Ana GIROS Thomas JUNG Etienne JACOLIN Equans Equans Equans Equans President EVP Strategy, Development & CSR EVP Operational Senior EVP & Executive President of Excellence, Innovation & Fi
Slide 4: Today's agenda
Today’s agenda Introduction Equans, a world Being selective in TOGETHER, an leader in Energies & growing inclusive integration services markets on track PERFORM, a plan Financial outlook Conclusion Q&A session to drive performance to best-in-class levels 4 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS -
Slide 5: Introduction
INTRODUCTION 5 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 6: A solid rationale behind the acquisition of Equans
A solid rationale behind the acquisition of Equans A leader in Energies & Services businesses Positioned on critical market transitions that will sustain growth Robust management team with a strategic vision perfectly aligned with Bouygues’ Cultural roots based on service excellence and client satis
Slide 7: A strong strategic fit between Equans and Bouygues
A strong strategic fit between Equans and Bouygues Large human capital with an emphasis on responsibility Committed employees with a strong entrepreneurial mindset Unparalleled expertise across multiple technical fields High value-added solutions Client-centric approach spanning the entire value cha
Slide 8: Energies & Services: a new business segment
Energies & Services: a new business segment Construction Energies & Services Media Telecoms (1952) (1956) (1986) (Since 4 October 2022) (1987) (1994) 100% 100% 96.8% 100% 44.5% 90.5% Sales(1) : €26.7bn Sales(2) : €17.7bn Sales: €2.5bn Sales: €7,5bn ~92,000 employees(1) ~90,000 employees(2) ~4,000 em
Slide 9: A rebalanced business portfolio with 4 strong business segments
A rebalanced business portfolio with 4 strong business segments Group structure before Equans acquisition Group structure after Equans acquisition Telecoms Construction & Construction Telecoms Services 14% 19% Media 5% 6% Media 75% 48% Energies €41bn ~125,000 ~€54bn ~196,000 sales Employees sales Em
Slide 10: Equans' financial ambition: profitable growth, best-in-class margin and cash
Equans’ financial ambition: ensure profitable growth and bring margin and cash generation to best-in-class levels Sustained sales COPA(2) margin Disciplined Improved FCF growth(1) target capital allocation generation Cash conversion from 2025 + + ratio(3) before WCR: acceleration to align 5% in 2027
Slide 11: Equans Corporate video
Equans Corporate video 11 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 12: Equans, a world leader in Energies & Services
#1 Equans, a world leader in Energies & Services Systecon-USA heatpump cooling assembly line 12 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 13: Equans market positioning
1. Equans, a world leader in Energies & Services Equans market positioning In the presentation, Equans means Equans combined with Bouygues Energies & Services (unless otherwise specified) All 2022 figures are unaudited and combining Equans proforma (assuming an acquisition on January 1st 2022) and B
Slide 14: Equans serves three major transitions
Equans serves three major transitions Our teams contribute, with their expertise and technologies, to the energy, digital and industrial transitions with the ambition of living better together Contribute to decarbonising energy production and transport, optimising usages and maximising energy effici
Slide 15: A unique positioning throughout the lifecycle of energy and data
A unique positioning throughout the lifecycle of energy and data Energy generation Transportation, storage and Telecom data concentration distribution of energy & data Bio/pharma microelectronics Marine & Industry Transport & mobility food & beverage Offshore infrastructures Smart cities & public Sm
Slide 16: Equans in a nutshell: a well-established leader
Equans in a nutshell: a well-established leader (2022 figures) €17.7bn >20 67% ~90,000 85% sales Countries Outside France Employees revenue from of presence worldwide repeat contracts(1) All figures are combined, estimated and unaudited (Equans + BYES), assuming a contribution of BYES to Equans as o
Slide 17: #2 global player in Energies & Services
#2 global player in Energies & Services Global presence Local presence 20 (1) 17 (2) 11 9 7 5 4 3 3 2 2 2 2 1 1 Headquarter Main Europe Europe Western Western Geographical and and US and and and Mainly Northern Canada US central central Europe US US US Europe Nordics Europe Nordics Nordics Presence
Slide 18: Our expertise
PROCESS & Our expertise SPECIALITIES 2022 sales Air Ground Transportation / Green Mobility €4.8bn Private and Public Buildings & Offices Defence HVACa Education Marine & Offshore 20% Energy production Mechanical & Cooling & & Renewable Healthcare Robotics Fire protection solutions 11% 8% Industrial
Slide 19: More than 80 well-established complementary brands
A unique portfolio of more than 80 powerful, well-established and complementary brands One global leading brand Local Brands Proud of our local brands, our history, our network. Proud to be a local partner rooted in our territories … Expert & Specialist Proud of our technical expertise and specialti
Slide 20: Worldwide footprint with leading position in key markets
Worldwide footprint with leading position in key markets UK Top5 BeLux #1 €3.5bn €1.8bn 15,500 9,500 #1 Netherlands #2 Franceex-aequo €5.9bn €1.2bn 35,500 5,500 North America Switzerland #1 Rest of Europe (Germany, Italy, Austria, €1.9bn €1.4bn Hungary, Romania,…) 6,400 €1.4bn 2,800 5,600 Latin Amer
Slide 21: A manifesto for global and sustainable performance
A manifesto for global and sustainable performance For our clients For the planet For people & communities For our employees & shareholders 21 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 22: A resilient business model across regions and customers
1. Equans, a world leader in Energies & Services A resilient business model across regions and customers 22 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023 Date
Slide 23: A diversified portfolio of expertises
Equans, a world leader in Energies & Services A resilient business model across regions and customers with 3 key elements A diversified portfolio of expertises 23 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 24: Electrical
Electrical As a leader, build an electrified and decarbonised world Key takeaways Key illustrative project Our services Washington DC, State of Michigan Street Lighting and Energy • Design, build, maintain solutions for each segment of the value chain, from power generation & infrastructures to tert
Slide 25: Mechanical & robotics
Mechanical & robotics Improve performance in industries and support the transition to Industry 4.0 Key takeaways Key illustrative project Our services Ministry of Armed Forces – Robotics lab Transition to Industry 4.0 by incorporating new digital technologies into production lines and logistics De
Slide 26: HVAC – Air quality and climatic engineering
HVAC – Air quality and climatic engineering Combine comfort with energy & carbon efficiency Key takeaways Key illustrative project Our services ASML Clean rooms • Design, build and maintain heating, air treatment, ventilation and climate control solutions for tertiary & industry • Ventilation, heat
Slide 27: Cooling & Fire protection
Cooling & Fire protection Secure buildings, processes with environmentally friendly & low carbon solutions Key takeaways Key illustrative project Our cooling services • Tailor-made solutions with energy Eisberg – High quality & sustainable cooling concept performance contracts • Long-standing expert
Slide 28: Technical & Facility management
Technical & Facility management Being our clients' preferred partner in energy savings and overall performance Key takeaways Key illustrative project Our services Pritchatts Park Student Village, University of Birmingham • Multi-technical maintenance • Preventive and predictive maintenance Private P
Slide 29: Birmingham video
Birmingham video 29 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 30: Digital & ICT
Digital & ICT 10,000 experts to improve the performance & efficiency of our clients’ assets & processes Key takeaways Key illustrative project Our services: from the IT infra to customised applications SOITEC Digital transformation toward Industry 4.0 through data mining • Telecommunication networks
Slide 31: Soitec video
Soitec video 31 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 32: A diversified geographic footprint
Equans, a world leader in Energies & Services A resilient business model across regions and customers with 3 key elements A diversified geographic footprint 32 CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 33: France: a historical stronghold with unique expertise in specialty services
FRANCE: a historical stronghold with unique expertise in specialty services One of the French leaders in electrical engineering, HVAC(1) and mechanical engineering, #1 with strong positions in ICT(2) Ex-aequo Locally-based services Key strengths ▪ Dense network with ~600 agencies close to ▪ Tied at
Slide 34: UK: a major player in decarbonisation and energy savings
UK: a major player in decarbonisation and energy savings Top We contribute to our clients’ net zero carbon route in compliance with the UK legal targets 5 Locally-based services Key strengths ▪ Strong local network with 74 agencies close ▪ Strong expertise in Technical Services, Facility to our clie
Slide 35: USA & Canada: a growth platform
USA & Canada: a growth platform A leader in mechanical and electrical construction, industrial and energy Infrastructure, and building services Locally-based services Key strengths ▪ A network of >30 agencies close to our clients ▪ A full set of services: from design engineering, ▪ Our local brands
Slide 36: Belgium & Luxembourg: a market leader in multi-technical services
Belgium & Luxembourg: a market leader offering a broad range of multi-technical services #1 Locally-based services Key strengths ▪ A strong local presence with ~100 agencies ▪ 70+ years of experience close to our clients Key figures ▪ Complete, end-to-end service, from design to installation, includ
Slide 37: Switzerland: dense network in electrical, HVAC & cooling
Switzerland: dense network in electrical, HVAC & cooling from design to maintenance #1 Locally-based services Key strengths ▪ Dense local network of 110 agencies ▪ Position in most of the cantons with high Key figures value reputation ▪ A complementary network BYES/Equans ▪ 65% repeat business ▪ Gri
Slide 38: Netherlands: a long-term partner for major industrial players
Netherlands: a long-term partner for major industrial players #2 A market leader in technical services Locally-based services Key strengths ▪ Strong local network with 40 agencies close ▪ Covers the whole value chain of electrical, to our clients Key figures HVAC & cooling and mechanical & robotics
Slide 39: A vast and diversified customer base
Equans, a world leader in Energies & Services A resilient business model across regions and customers with 3 key elements A vast & diversified customer base with close and long-term relationships 39 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 40: A well-balanced portfolio of customer segments
A well-balanced portfolio of customer segments Building Cities Inter cities Industries 42% of sales 5% of sales 17% of sales 36% of sales Main customers Main customers Main customers Main customers • Retail: Lidl, Carrefour • Smart cities: Angers, Dijon, • Energy: RTE, Enel, Tennet • Power productio
Slide 41: A diverse customer base with a high level of repeat business
A diverse customer base with close relationships and a high level of repeat business Diversified High share Backlog providing client base of repeat contracts visibility ● ~35,000 clients ● 85% of sales from repeat ● €25.2bn at end-December 2022 business(1) High portion Maintenance & Facility 30% of
Slide 42: An example of long-term customer relationship
An example of long-term customer relationship Virtus London client testimonial 42 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 43: Our people are our main asset
3. Equans, a world leader in Energies & Services Our people are our main asset 43 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023 Date
Slide 44: Our people are our main asset
Our people are our main asset Highly skilled teams and experienced managers with long industry practice Figures as at December 31, 2022 ~90,000 >10,000 7.5% >2,000 Employees Recruitments/year Apprenticeship Training programs Permanent contracts 1,700 technical amongst employees 300 transversal in Fr
Slide 45: Our commitment to our employees
Our commitment to our employees 2 5 6 7 SAFETY & HEALTH, COMMUNITY FAIR & EQUAL SHARE FRUITS OF ETHICS, CYBER DEVELOPMENT OPPORTUNITIES FOR ALL SUCCESS • Providing safe, • Being a proactive and • Give everyone the same chance to • Celebrate healthy working conditions responsible local economic expre
Slide 46: Our ambition: to be the best place to work
Our ambition: to be the best place to work Our strategic HR priorities Attract Develop Care Share a vision of Be recognized for our managerial Caring for our people meaningful work and technical excellence • Servant Leadership • Young talents strategy • High standards of learning • Living our values
Slide 47: A highly experienced management team
A highly experienced management team with track record in corporate transformation PRESIDENT Jérôme STUBLER EXCOM BELUX CENTRAL EUROPE (2) ANZ HUMAN UNITED KINGDOM FINANCE, FRANCE STRATEGY RESOURCES & IRELAND Data Center IT & LEGAL DEVELOPMENT & HEALTH & SAFETY Solar & Storage(3) CSR Pierre Jean-Phi
Slide 48: Our climate roadmap
4. Equans, a world leader in Energies & Services Our climate roadmap 48 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023 Date
Slide 49: Our commitment to improve our own environmental footprint
Our commitment to improve our own environmental footprint Our commitments to scope 1 and 2 Most of our internal carbon footprint in France comes from the fuel for our vehicle fleet • Improve our carbon, circular economy, water & biodiversity Car policy: footprint and commit to ensure the compliance
Slide 50: Our commitment to improve our clients' environmental footprint
Our commitment to improve our clients’ environmental footprint Our commitments to Scope 3a and 3b Actions (Scope 3a) • Ensure sustainable procurement, low-carbon • Measure the impact of incorporated component solutions and products, from suppliers and • Favour local supply subcontractors • Be proact
Slide 51: Being selective in growing markets
#2 Being selective in growing markets 51 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 52: Strong markets growth allowing selectivity
Strong markets growth allowing selectivity Traditional markets CAGR examples Fast growing markets CAGR examples 2021-27 CAGR (1) 2021-27 CAGR (1) HVAC +4-6% EV charging points (2) +25-30% Cooling & Fire protection +5-6% Data center (includ. data >10% center cooling system) Facility Management +3-5%
Slide 53: Supporting low carbon electricity production
Energy Supporting low carbon electricity production Transition ACT FOR SUSTAINABLE DEVELOPMENT Industrial Transition Digital Transition Major trends Equans’ response Key illustrative project x 10 World mix Energy used solar energy Solar farm Renewable, Nuclear and 5.5 installed capacity Our action b
Slide 54: Supporting reinforcement of electric grids
Energy Supporting reinforcement of electric grids Transition ACT FOR SUSTAINABLE DEVELOPMENT Industrial Transition Digital Transition Major trends Equans’ response Key illustrative project Wahle-Mecklar ~€360bn annual global investment in T&D ~€750m high voltage line networks over 2021-30 vs. ~€250B
Slide 55: Supporting electrification of mobility
Energy Transition Supporting electrification of mobility ACT FOR SUSTAINABLE DEVELOPMENT Industrial Transition Digital Transition Major trends Equans’ response Key illustrative project EV charging Billy Berclau Douvrain >25,000 Our action +25-30% p.a. Number of installed rapid chargers for EV in Fra
Slide 56: Supporting decarbonization of heating and cooling
Energy Transition Supporting decarbonization of heating and cooling ACT FOR SUSTAINABLE DEVELOPMENT Industrial Transition Digital Transition Major trends Equans’ response Key illustrative project Heat Pumps installed – Global (in million units)(1) From its large 600 Core364 - Sunderland +13% CAGR ex
Slide 57: Offering solutions for data explosion and connectivity needs
Energy Transition Offering solutions for data explosion and connectivity needs ACT FOR SUSTAINABLE DEVELOPMENT Industrial Digital Transition Transition Major trends Equans’ response Key illustrative project Interxion Marseille data centre €40bn ~€500m Data Centre Cooling market size Sales from Datac
Slide 58: Strong innovation flow with focus on implementation
Strong innovation flow with focus on implementation Innovation from Innovation Reward and connect the field through towards business 500 innovators Innovation Awards 2022 organisation and through new through Empower Winner "Upgrader 95" Equans Kältetechnik (Austria) Ammonia high-temperature heat pum
Slide 59: In fast growing markets, Equans will monitor its growth
In fast growing markets, Equans will monitor its growth The alpinist rule How Equans applies it The rope: Contract Priority to margin 1 over volume Type of 2 THE RULE project/skills Size of Change only one parameter project to move Focus on existing geographies The Alpinist : Experienced team with t
Slide 60: TOGETHER: An inclusive integration on track
#3 TOGETHER: An inclusive integration on track 60 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 61: Together: the shape of a new company
Together: the shape of a new company, taking advantage of the best of each EQUANS started BYES launched its its performance improvement plan in improvement 2019, with strong journey in 2021 results already visible EQUANS has a wide BYES brings range of specialties a high level of (Clean-tech, Naval
Slide 62: A new organisation guided by performance and efficiency
A new organisation guided by performance and efficiency Key principles Decentralised model Single line of Lean at the top Servant with clear rules and responsibility Leadership governance 3 absolute must haves SAFETY ETHICS CYBER SECURITY 62 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP
Slide 63: Together: integration well on track
Together: integration well on track Engagement Action plans Mobilisation Execution Senior management fully Specific integration plans Teams fully mobilised Strong governance engaged and incentivised in key countries and focused on delivering to drive execution (FR, UK, CH, Canada) commitments to cus
Slide 64: A 3-year IT integration underway
A 3-year IT integration underway ~€50m IT improvement CAPEX over 4 years Agile, innovative to create secured IT systems < • Create value for the businesses ~€35m IT integration non-current charges over 3 years • Cyber-secured by nature • Based on technical, cloud convergence • Cost efficient(1) Firs
Slide 65: PERFORM, a plan to drive performance to best-in-class levels
#4 PERFORM, a plan to drive performance to best-in-class levels 65 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 66: Our ambition
OUR AMBITION We aim to be the best in class for operational performance To strengthen our competitive advantage ● Bringing an attractive, attentive and proactive attitude to our employees ● In order to be close to our customers and our operations, aiming to be the best at providing the innovative so
Slide 67: Past performance plans have yielded significant results
Past performance plans have yielded significant results at end 2022 “DIOGENE” launched in 2019 “1ABCD2” launched in 2021 COPA(1) margin improvement Cash improvement COPA(1) margin improvement Cash improvement +4pts +€721m (2) +0.8pts (3) +€150m in 4 years Since January 2019 in 1 year Since January 2
Slide 68: Equans 2022 results
Equans 2022 results A transition year for both Equans standalone and Bouygues Energies & Services EQUANS EQUANS standalone + BYES ● Equans €M BYES standalone(1) 2022 2022 > Finalization of Equans set up 2022 > Implementation of core company systems to be autonomous Sales 17,683 13,820 3,863 > Prepar
Slide 69: PERFORM, our new plan to drive performance
PERFORM, our new plan to drive performance to best-in-class levels 1ABCD2 DIOGENE A plan supported by the right package of management incentives to achieve targets within the set timeframe 69 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 70: PERFORM, a plan to grow profitability already underway
PERFORM, a plan to grow profitability already underway +3.5pts of potential COPA margin improvement of which €120/200m run rate synergies +1pt +1pt +0.5pt +0.5pt +0.5pt PROCUREMENT PRICING BUG KILLER BPC(1) RECOVERY PRODUCTIVITY Deliver global savings program Implement robust pricing strategy Reduce
Slide 71: Procurement strategy
~€9bn total addressable spend ~1.4bn addressed by 2023 First impact on results expected beginning 2024 Procurement strategy What has been done so far • Put together the spend of Equans and BYES and increase the total spend mapping from 40% to 80% 1. Set a Procurement • Launch of the 1st wave of nego
Slide 72: Capacity to improve pricing
Capacity to improve pricing with our recognised skills & expertise Pricing strategy What has been done so far • Set clear pricing rules: margin over volume: no offer < 3% project net margin in 2022 1. Increase • Set marketing and pricing strategy selectivity • Developed a “1 day training” on strateg
Slide 73: Project performance: bug killer
In 2022 number of risk committees: 119 with CEO / 173 at N-1 level / 374 at N-2 Project performance strategy What has been done so far • Loss diagnosis performed • Project manager principles book deployed 1. Set actions plan • Rules defined → Take project solely when skills 2 trainings for Project M
Slide 74: BPC recovery strict monitoring
BPC recovery strict monitoring 900 Equans Business Bimonthly BPC review with country CEO Profit Centers BPCa recovery strategy What has been done so far 1. Set dedicated • PERFORM tool developed: clear understanding of the performance of each BPC at a segment level workforce to drive • Specific acti
Slide 75: Productivity: gradually bearing fruits
Gradually bearing fruits Productivity strategy What has been done so far 1. Optimize SG&A • Specific SG&A reduction plans have been launched in most countries (IT, Premises • Development of training modules Organisation …) • Risk committees now include a systematic installation method review • Local
Slide 76: Improve WCR structurally to grow cash-flow
Improve WCR structurally to grow cash-flow Priority given to the optimisation of outstanding receivables Action plan during project management process 1. More demanding during commercial phase COMMON KPI FOR PROJECT MANAGERS: ● Check the creditworthiness of clients & partners ● Negotiate favourable
Slide 77: Spread a strong cash culture
Spread a strong cash culture to drive cash conversion to best-in-class level Acculturation & training Regular animation Common KPI and Cash target in to raise awareness at all levels to dashboard to stick managers’ about cash make it visible to the objective compensation Dedicated workforce already
Slide 78: €120m to €200m run rate synergy potential
Between €120m and €200m run rate synergy potential integrated into the Perform plan Synergy ambition included in COPA Actions already initiated 2 main levers of synergies Start of procurement Other Procurement synergy plans 40% 60% • Procurement €120m/200m • Other (SG&A, Real- First optimization pla
Slide 79: Management incentives to achieve targets
A plan supported by a right package of management incentives to achieve targets within the set timeframe Short term bonuses Long term management incentive plan Integration of 2 financial KPIs representing a Management incentive plan granted to a selected significant part (at least 50%) of bonuses ta
Slide 80: Leveraging on our plan to deliver 5% COPA margin in 2027
Ready to succeed in the delivery of our performance plan Leveraging on our plan to deliver 5% COPA margin in 2027 80 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 81: Financial outlook
#5 Financial outlook 81 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 82: Our financial ambition
Our financial ambition Ensure profitable growth bringing margin and cash generation to best-in-class levels 82 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 83: Equans organic sales: sustained growth expected
Equans organic sales: sustained growth expected 2023 -2024 From 2025 Focus on selectivity & profitability Back to growth while keeping focus on profitability Potential for growth….. • Dynamic market A first step of performance reached, allowing growth • High-level backlog providing visibility • Turn
Slide 84: Target of 5% COPA margin in 2027
Target of 5% current operating margin from activities in 2027 2023 2025 2027 • Selectivity strategy Improvement supported by: Leveraging on: • Integration and synergies’ • Perform plan • Growth strategy implementation • Synergies • Perform plan • Perform plan first impacts • Selectivity strategy ong
Slide 85: A structural cash-generative business
A structural cash-generative business Equans’ free-cash-flow generation fully Perform cash plan to optimise correlated to COPA increase Working Capital Requirements • Asset-light model (capex to sales ~1,2% in 2022) • Existing potential for improvement of the WCR leading to a high structural cash co
Slide 86: Strategic review of our portfolio: asset disposals
First concrete output of the strategic review of our portfolio Asset based activities disposals ▪ Completion of a strategic review of its asset based historical businesses: district heating and cooling and EV charging activities, in both the UK and Netherlands (mainly concessions contracts) ▪ M&A ad
Slide 87: Equans' financial ambition summary
Equans’ financial ambition: ensure profitable growth and bring margin and cash generation to best-in-class levels Sustained sales COPA(2) margin Disciplined Improved FCF growth(1) target capital allocation generation Cash conversion from 2025 + + ratio(3) before WCR: acceleration to align 5% in 2027
Slide 88: Summary
Summary Deliver sustainable and profitable growth Topline organic growth: acceleration to align with peers’ growth rate from 2025(1) Recognizing our people’s value Our capacity to grow is linked to our teams’ capacity HR plan to attract, train, care Priority given to selectivity and profitability in
Slide 89: Conclusion
Conclusion 89 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 90: Bouygues, a supportive shareholder for Equans (1/2)
Bouygues, a supportive shareholder for Equans’ success (1/2) A stable shareholding structure ● Long term vision ● High share of employee shareholders (with progressive increase for Equans employees) Equans governance in line with listed companies' best practices: ● Boards and committees: ▪ 4 per yea
Slide 91: Bouygues, a supportive shareholder for Equans (2/2)
Bouygues, a supportive shareholder for Equans’ success (2/2) Bouygues’ main key success drivers ● Customer-centric services businesses ● Entrepreneurial mindsets ● Global reach made of multi local champions ● People at the core of the strategy ● Fundamentals of our culture: respect, trust, creativit
Slide 92: A dedicated management incentive plan for Equans
A dedicated management incentive plan for Equans to achieve its guidance ● Decision by Bouygues to implement a dedicated incentive scheme to ensure that targets set by Bouygues for Equans are met within the set and demanding timeframe ● Key principles: ▪ Ensure engagement of selected managers in all
Slide 93: Impact of management incentive plan on financial statements
Impact of management incentive plan on Group’s financial statements ● P&L impact: ▪ Cost estimated at ~€60m in 2023(1) and around €80m per year between 2024 and 2026 if Equans’ guidance is achieved(2) ▪ Cost split between Equans and Bouygues SA, with Equans bearing most of it ▪ Accounted for as “Oth
Slide 94: Equans' Purchase Price Allocation amortization
Equans’ Purchase Price Allocation amortization ● Equans’ acquisition price: €6.1bn ● €6bn of excess purchase price to be allocated (after cancellation of goodwill and intangible assets recognized by Equans before its acquisition by Bouygues and alignment with Bouygues’ accounting practices) of which
Slide 95: Equans' acquisition financed at favorable conditions
Equans’ acquisition financed at favorable conditions Impact of Equans acquisition on Bouygues’ net debt at closing date: €6.5bn • Including €0.4bn of Equans net debt estimated at closing date • Equans net debt reduced to €0.02bn on 31st December 2022 Acquisition financing: • Fixed-rate for the entir
Slide 96: An acquisition enhancing the Group's resilience
An acquisition enhancing the Group’s resilience New Group profile based on 2022 proforma figures for Equans Construction Bouygues Bouygues SA €m 2022 (1) Equans (2) TF1 businesses Telecom & other sales 54,385 26,686 17,683 2,508 7,532 207 Current operating profit from Activities 2,164 781 415 322 69
Slide 97: An accretive acquisition on Group Free Cash Flow and Net profit
An accretive acquisition on the Group Free Cash Flow1 and on the Group Net profit2 Strong long term growth outlook COPA margin expected to increase to 5% in 2027 and then reaching best-in-class levels Reinforcing asset-light activities and the Group cash generation profile, Equans targeting to conve
Slide 98: 2023 outlook for the Group Bouygues
2023 outlook for the Group Bouygues The outlook below is based on information known to date ● In an unstable environment, marked by inflation, rising interest rates and currency volatility, Bouygues is aiming 2023 sales close to those of 2022, as well as an increase in its current operating profit f
Slide 99: Q&A
Q&A 99 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 100: Annexes
ANNEXES 100 ● CAPITAL MARKETS DAY DEDICATED TO EQUANS - BOUYGUES GROUP - 23 FEBRUARY 2023
Slide 101: A new business segment combining Equans with Bouygues' E&S division
A new business segment resulting from the combination of Equans with Bouygues’ E&S division Situation as of October 2022 Situation from January 2023 Other business Other business segments segments Construction & Public works Construction & Public works Carve-out of the E&S division Bouygues E&S Cont
Slide 102: Equans 2022 P&L proforma unaudited figures
Equans 2022 P&L proforma unaudited figures Equans 2022 proforma figures on the three following lines • Net charges for depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets, • Net charges for depreciation, amortisation and impairment losses on right
Slide 103: Glossary
Glossary Net surplus cash (+)/Net debt (-) ● Net debt (or net surplus cash) is obtained by aggregating cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments. Net surplus/(net debt) does not include non-current and current lease
Slide 104: Bouygues SA contact details
Bouygues SA 32 avenue Hoche • 75378 Paris CEDEX 08 bouygues.com