Slide 1: Nine-month 2016 results presentation
Nine-month 2016 results presentation Paris – 32 Hoche 16 November 2016 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: Agenda
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK ■ ANNEX 3
Slide 4: Highlights
Highlights Bouygues Telecom’s 9-month commercial and financial results on track to achieve 2017 targets Solid commercial performance of the construction activities reflecting gradual stabilization in France and targeted growth in international markets 2016 Group outlook confirmed 4
Slide 5: Group key figures
Group key figures €m 9M 2015 9M 2016 Change Sales 23,824 23,113 -3%a o/w France 14,650 14,520 -1%a o/w international 9,174 8,593 -6%a Current operating profit 597 714 +20% Current operating margin 2.5% 3.1% +0.6pts Operating profit 491b 570b +16% Net profit/(loss) attributable to the Group 334 345 +
Slide 6: Group financial position
Group financial position End-Sept End-Sept YoY End-Dec €m Change 2015 2016 change 2015 Shareholders' equity 8,952 8,773 -€179m 9,293 -€520m Net debt 4,883 3,890 -€993m 2,561 +€1,329m Net gearing 55% 44% -11 pts 28% +16pts Strengthened financial structure Net debt at end-September 2016 down €993m
Slide 7: Review of operations
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK ■ ANNEX 7
Slide 8: Construction businesses
Construction businesses The Russian Orthodox Spiritual and Cultural Centre - Paris 8
Slide 9: Solid commercial performance maintained
Solid commercial performance maintained High level order book: €28.1bn at end-September 2016, down 1% year-on-year, at constant exchange rates Order book (€m) Colas Bouygues Immobilier Bouygues Construction -3%a €29.0bn €28.1bn €27.4bn €27.4bn 7,083 Construction barge - La Réunion Island coastal r
Slide 10: Gradual stabilization of the construction sector in France
Gradual stabilization of the construction sector in France Order book in France (€m) Continued growth in residential property reservationsa Bouygues Construction Bouygues Immobilier Colas at Bouygues Immobilier +23% in 9M 2016 vs 9M 2015 €15.1bn €14.4bn +1 % €13.0bn €13.1bn 3,523 Increase in o
Slide 11: Targeted growth in international markets
Targeted growth in international markets 58% of the order book at Bouygues Construction and Colas International order book (€m) in international markets Bouygues Construction Bouygues Immobilier Colas -7%a Order book at a high level: €15bn at end-September 2016, €16.1bn €15.0bn down 3%, at const
Slide 12: Key figures of the construction businesses
Key figures of the construction businesses Like-for-like and €m 9M 2015 9M 2016 Change at constant exchange rates Sales 19,134 18,219 -5% -2% o/w France 10,013 9,670 -3% -3% o/w international 9,121 8,549 -6% -1% Current operating profit 519 568 +€49m o/w Bouygues Construction 235 235 €0m o/w Bouygue
Slide 13: Bouygues Telecom
Bouygues Telecom shop in Parly 2 shopping center 13
Slide 14: Steady growth in mobile thanks to 4G
Steady growth in mobile thanks to 4G 12.7 million mobile customers with +227,000 customers in Q3 2016 and +770,000 customers in 9M 2016 An additional 129,000 plan customers excluding MtoMa in Q3 2016 The 2017 target of +1 million net growth in mobile customers should be achieved one year ahead
Slide 15: Sustained increase in mobile data usage
Sustained increase in mobile data usage 6.5 million customers or 62% of the mobile base excluding MtoMa on 4G network at end-September 2016 Sharp increase in average mobile data usage 3.7 GB for 4G customers (x1.6 year on year) 2.3 GB for mobile customers (x1.8 year on year) Average data con
Slide 16: Strengthening of 4G leadership
Strengthening of 4G leadership Continuing to improve the coverage and the quality of service 4G sites in operationa 9,464 4G sites in operation at end-September 2016 9,464 9,392 8,056 In dense areas, ongoing network strengthening program 6,910 Over 50% additional sites in the next 5 years to
Slide 17: Winning customers in fixed to expand positioning in households
Winning customers in fixed to expand positioning in households More than 3 million customers at end-September 2016 with +93,000 customers in Q3 2016, +215,000 in 9M 2016 448,000 Very-High-Speeda customers, of which 91,000 FTTHb at end-September 2016 In Q3 2016, 70% of Bouygues Telecom’ s fixed
Slide 18: Access to FTTH network
Access to FTTHa network Market premises Bouygues Telecom (millions) 2 Under discussion 5.5 Very Dense Area 3.5 Being rolled out Open to rent or co-investment by steps of 5% 9 Less Dense Area 12 connections per areas Private initiative 3 Being rolled out Less Dense Area 11 Open to rent or co-investme
Slide 19: Continued growth in sales from network
Continued growth in sales from network Growth in sales from network for 5 consecutive quarters 9-month 2016 sales from network up 5% year-on-year Growth of customer base Stabilization of both mobile and fixed Arpu Change in quarterly mobile sales from network (YoY) +6.6% +5.5% +4.2% +0.9% +0
Slide 20: Significant rise in mobile sales from network
Significant rise in mobile sales from network 3rd consecutive quarter of growth in mobile sales from network Change in quarterly mobile sales from network Mobile Arpu (in €) (YoY) 24.7 +5.9% 24.3 24.3 24.1 24.1 23.6 23.6 +4.1% 23.3 +2.0% 22.7 22.8 22.8 23.0 22.4 22.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2015
Slide 21: Improvement in the EBITDA margin by 3.4 pts for the 9 months
Improvement in the EBITDA margin by 3.4 pts for the 9 months Change Change Change Change €m Q1 2016 vs 2015 Q2 2016 vs 2015 Q3 2016 vs 2015 9M 2016 vs 2015 Sales 1,131 +6% 1,160 +6% 1,212 +4% 3,503 +6%a Sales from network 971 +4% 1,004 +5% 1,043 +7% 3,018 +5% EBITDA 146b €28m 262 +€57m 289 +€47m 697
Slide 22: Financial statements
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK ■ ANNEX 22
Slide 23: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) €m 9M 2015 9M 2016 Change Sales 23,824 23,113 -3%a Current operating profit 597 714 +20% Other operating income and expenses (106)b (144)b +36% Operating profit 491 570 +16% Cost of net debt (210) (171) -19% o/w financial income 29 20 -31% o/w financial
Slide 24: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) €m 9M 2015 9M 2016 Change Income tax (82) (138) +68% Share of net profits of joint ventures and associates 159a 91 -43% o/w Alstom 0 36 ns Net profit/(loss) 381 355 -7% Net profit attributable to non-controlling interests (47) (10) ns Net profit attribut
Slide 25: Change in net cash position in 9M 2016 (1/2)
Change in net cash position in 9M 2016 (1/2) Net cash at €m Net cash at 31-12-2015 30-09-2016 -2,561 -98 -3,890 +847 -655 Acquisitions / Othersb Dividends -117 Disposalsa -1,306 700 MHz frequencies Operation (4 264) 9M 2015 -3,216 + 133 + 17 -736 - -1,081 -4,883 (a) Of which Alstom’s public share bu
Slide 26: Change in net cash position in 9M 2016 (2/2)
Change in net cash position in 9M 2016 (2/2) Breakdown of operation €m Net cash flowa Net capital expenditure -1,075 +1,411 Change in operating WCRb and other -1,642 -1,306 9M 2015 +1,196 -881 -1,396 -1,081 (a) Net cash flow = cash flow - cost of net debt - income tax expense 26 (b) Operating WCR: W
Slide 27: Outlook
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK ■ ANNEX 27
Slide 28: Group outlook for 2016 confirmed
Group outlook for 2016 confirmed Good performance in the first 9-months strengthens the outlook for improved Group profitability in 2016 Profitability of the construction businesses expected to improve starting in 2016 TF1 has revised downward its cost of programs and implemented an additional
Slide 29: Annex
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK ■ ANNEX 29
Slide 30: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction Order book (€m) Order intakea (€m) Long-term order book (beyond Y+5) For execution in Y+1 International France For execution from Y+2 to Y+5 For execution in current Y 8,611 9,112 8,048 7,643 -16% -7%b 19,681 18,225 17,711 17,626 2,613 4,752 3,972 5,705 2,7
Slide 31: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa (€m) Commercial property Order book (€m) +22% Residential property +20% 1,674 2,615 2,722 1,412 1,375 231 +21% 2,144 2,274 477 +50% 1,300 528 191 366 318 210 420 +15% 1,443 +22% 2,087 1,956 2,245 1,090 992 1,184 1,778 End-Sept End-Sept End-Sept
Slide 32: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France 7,849 8,079 8,011 7,723 +1%a 7,083 7,178 7,006 4,587 4,686 4,910 4,896 4,182 4,302 +3% 4,294 LGV Nîmes-Montpellier €m 9M 2015 9M 2016 Change Sales 8,933 8,115 -9%b 3,262 3,037 3,169 3,115 2,901 2
Slide 33: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Q3 2016 Mobile customer base 11,273 11,433 11,641 11,890 11,890 12,130 12,433 12,660 o/w plan excl. MtoMa 8,742 8,889 9,038 9,139 9,139 9,290 9,461 9,589 (‘000) o/w MtoM 1,585 1,648 1,727 1,799 1,799
Slide 34: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Q3 Q4 Q1 Q1 2015 Q2 2015 Q2 2016 Q3 2016 2015 2015 2016 Mobile Arpua €/month/subscriber 22.7 22.8 23.3 22.8 22.4 22.4 23.0 Plan Arpua €/month/subscriber 24.3 24.3 24.7 24.1 23.6 23.6 24.1 Prepaid Arpua €/month/subscriber 7.5 7.2 7.6 7.3 7.0 7.2 7.3 Data
Slide 35: Sales by sector of activity
ANNEX Sales by sector of activity Change like-for-like €m 9M 2015 9M 2016 Change and at constant exchange rates Construction businessesa 19,134 18,219 -5% -2% o/w Bouygues Construction 8,826 8,698 -1% 0% o/w Bouygues Immobilier 1,569 1,626 +4% +3% o/w Colas 8,933 8,115 -9% -5% TF1 1,400 1,427 +2% -4
Slide 36: Contribution to EBITDA by sector of activity
ANNEX Contribution to EBITDA by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 872 891 +€19m o/w Bouygues Construction 324 335 +€11m o/w Bouygues Immobilier 67 68 +€1m o/w Colas 481 488 +€7m TF1 117 193 +€76m Bouygues Telecom 565 697 +€132m Holding company and other (19) (30) -
Slide 37: Contribution to current operating profit by sector of activity
ANNEX Contribution to current operating profit by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 519 568 +€49m o/w Bouygues Construction 235 235 €0m o/w Bouygues Immobilier 89 92 +€3m o/w Colas 195 241 +€46m TF1 107 47 -€60m Bouygues Telecom (9) 124 +€133m Holding company and o
Slide 38: Contribution to operating profit by sector of activity
ANNEX Contribution to operating profit by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 504 512 +€8m o/w Bouygues Construction 223a 220a -€3m o/w Bouygues Immobilier 86a 90a +€4m o/w Colas 195 202b +€7m TF1 92c (22)c -€114m Bouygues Telecom (85)d 117d +€202m Holding company an
Slide 39: 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 2015 9M 2016 Change Construction businesses 471 379 -€92m o/w Bouygues Construction 243 165 -€78m o/w Bouygues Immobilier 46 53 +€7m o/w Colas 182 161 -€21m TF1 28 (6) -€34m Bouygues Telecom (50) 57 +€107m Alstom
Slide 40: Condensed consolidated balance sheet
ANNEX Condensed consolidated balance sheet End-Dec End-Sept End-Sept €m Change 2015 2016 2015 Non-current assets 18,210 17,289 -€921m 17,627 Current assets 15,590 16,023 +€433m 16,005 Held-for-sale assets and operations 35 - -€35m 541a TOTAL ASSETS 33,835 33,312 -€523m 34,173 Shareholders' equity 9,
Slide 41: Contribution to Group net cash flow by sector of activity
ANNEX Contribution to Group net cash flow by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 705 752 +€47m o/w Bouygues Construction 263 288 +€25m o/w Bouygues Immobilier 42 51 +€9m o/w Colas 400 413 +€13m TF1 79 142 +€63m Bouygues Telecom 547 629 +€82m Holding company and other
Slide 42: Contribution to Group net capital expenditure by sector of activity
ANNEX Contribution to Group net capital expenditure by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 281 320 +€39m o/w Bouygues Construction 130 127 -€3m o/w Bouygues Immobilier 10 17 +€7m o/w Colas 141 176 +€35m TF1 29 147 +€118m Bouygues Telecom 571 605 +€34m Holding company
Slide 43: Contribution to Group free cash flow by sector of activity
ANNEX Contribution to Group free cash flow by sector of activity €m 9M 2015 9M 2016 Change Construction businesses 424 432 +€8m o/w Bouygues Construction 133 161 +€28m o/w Bouygues Immobilier 32 34 +€2m o/w Colas 259 237 -€22m TF1 50 (5) -€55m Bouygues Telecom (24) 24 +€48m Holding company and other
Slide 44: Net cash by business segment
ANNEX Net cash by business segment €m End-Sept. 2015 End-Sept. 2016 Change Bouygues Construction 2,642 2,758 +€116m Bouygues Immobilier (188) (274) -€86m Colas (231) (17) +€214m TF1 235 148a -€87m Bouygues Telecom (1,012) (1,123)b -€111m Holding company and other (6,329) (5,382)c +€947m TOTAL (4,883
Slide 45: Financing
ANNEX Financing Available cash: €7.5bn €m Debt maturity schedule at end-September 2016 10,000 9,000 8,000 7,000 6,000 Undrawn MLT 5,000 facilities €5.5bn 4,000 3,000 2,000 Cash 1,000 €2.0bn 0 45
Slide 46: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group €m 9M 2015 9M 2016 Change Net profit/(loss) attributable to the Group 334 345 +€11m 9M exceptional items non-current income/charges at Bouygues Telecom (net of taxes) 43 4 -€39m non-current income/charges at the construction
Slide 47: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 47