Bouygues Sa · EURONEXT:EN
Bouygues Sa — Investor Day (October 2018)
160 slides from Bouygues Sa's investor day presentation, Oct 2, 2018
Slide 1: Capital Markets Day Construction Businesses
CAPITAL MARKETS DAY CONSTRUCTION BUSINESSES PARIS - 2 OCTOBER 2018 PRESENTATION Making progress become reality
Slide 2: Agenda
AGENDA BE A LEADER IN ECO-NEIGHBORHOOD AND SMART CITIES 10.40 ECO-NEIGHBORHOOD : TWO COMPLEMENTARY APPROACHES E. Desmaizières, Managing Director, Urbanera, Bouygues Immobilier 8.00 COFFEE AND DEMOS P. Minault, Managing Director, Property Development, Bouygues 11.00 SMART CITY WELCOME & INTRODUCTION
Slide 3: Today's Speakers
TODAY’S SPEAKERS Olivier Roussat Philippe Marien Hervé Le Bouc François Bertière Philippe Bonnave Louis Gabanna Thierry Méline Group deputy CEO Group deputy CEO Chairman & CEO, Chairman & CEO, Chairman & CEO, EVP, Colas EVP, Colas Bouygues Immobilier Bouygues Construction North America Colas France
Slide 4: Introduction
INTRODUCTION OLIVIER ROUSSAT DEPUTY CEO
Slide 5: A major player in France and international markets
A MAJOR PLAYER IN FRANCE AND INTERNATIONAL MARKETS 3 BUSINESS SEGMENTS CONSTRUCTION BUSINESSES’ KEY FIGURES at 31 December 2017 Revenues Backlog €25.8bn €31.9bn Employees Countries 104,500 90 #6 Worldwidea 5 (a) ENR The top 250 international contractors, August 2018 (excluding petroleum)
Slide 6: Construction businesses' key strengths
CONSTRUCTION BUSINESSES’ KEY STRENGTHS 104,500 TALENTED AND COMMITTED EMPLOYEES HIGH VALUE-ADDED PRODUCTS AND SERVICES POSITIONED IN EACH STEP OF THE VALUE CHAIN STRONG AND SELECTIVE INTERNATIONAL PRESENCE RESILIENT BUSINESS MODEL Zagreb international airport 6
Slide 7: 104,500 talented and committed employees
104,500 TALENTED AND COMMITTED EMPLOYEES PEOPLE ARE OUR MOST IMPORTANT RESOURCE RESPECT EMPOWERMENT CREATIVITY EXPERTISE SHARING 7
Slide 8: High value-added products and services
HIGH VALUE-ADDED PRODUCTS AND SERVICES Worldwide recognized technical expertise and commitment to quality supporting strong brands Ability to accomplish complex and sophisticated projects (tunnels, high-rise buildings, bridges) Specific know-how in sustainable construction Offering services
Slide 9: Positioned in each step of the value chain
POSITIONED IN EACH STEP OF THE VALUE CHAIN Increase contract value and strengthen competitive positioning by covering the entire value chain > Strengthen the long-term relationships developed with customers Source, integrate and manage external expertise to offer full-service solutions and provi
Slide 10: Strong and selective international presence
STRONG AND SELECTIVE INTERNATIONAL PRESENCE Bouygues is located in low-risk profile countries offering advantageous infrastructure plans North America Northern and Central Europe Middle-East Asia and Australia $43bn High Speed 2 $20bn 2016-2033 Trudeau Plan €33bn 2016-2026 European Structural and 41
Slide 11: Resilient business model
RESILIENT BUSINESS MODEL Current operating profit (€ million) High net cash position (€ million) 1,236 1,140 3,785 3,837 3,780 3,756 1,079 3,547 1,005 1,020 949 1,005 948 3,175 3,404 3,281 3,308 884 841 831 879 827 2,794 2,440 2,495 2,587 2,259 535 1,689 379 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 12: 4 mega trends sources of opportunity
4 MEGA TRENDS SOURCES OF OPPORTUNITY 1. POPULATION GROWTH 3. DIGITAL 4. CHANGING USERS 2. CLIMATE CHANGE AND URBANIZATION TRANSFORMATION BEHAVIOR 12
Slide 13: Construction businesses' strategic priorities
CONSTRUCTION BUSINESSES’ STRATEGIC PRIORITIES Control key resources Be a market leader for construction and renovation of buildings and infrastructure Help customers control energy consumption and design less carbon-intensive construction methods Lead the market for urban design and developm
Slide 14: Group construction activities positioning
GROUP CONSTRUCTION ACTIVITIES POSITIONING DEVELOPER BUILDER OPERATOR 14
Slide 15: Construction businesses strategy
CONSTRUCTION BUSINESSES STRATEGY PHILIPPE BONNAVE CHAIRMAN & CEO The Morpheus – Macao
Slide 16: Contents
CONTENTS WHO WE ARE STRATEGIC GUIDELINES STRATEGIC FOCUS IN OUR RESPECTIVE SECTORS PROSPECTS OF A NEW DIGITAL AREA 16
Slide 17: Our sectors of expertise
OUR SECTORS OF EXPERTISE ee, rance
Slide 18: Our sectors of expertise
OUR SECTORS OF EXPERTISE Tramway - Reims, France Installation of fibre optics ~ Oise department, France Construction and concession, Henri PAB Konan Bédié bridge - Abidjan, Ivory Coast 18 (@{Bourcues ) "J y
Slide 19: Our sectors of expertise
OUR SECTORS OF EXPERTISE Data Center Intersion - Fi 19 (| {Bouycues ))
Slide 20: Our people: health and safety our first priority
OUR PEOPLE: HEALTH AND SAFETY OUR FIRST PRIORITY 20
Slide 21: A global construction group positioned in every step of the value chain
A GLOBAL CONSTRUCTION GROUP POSITIONED IN EVERY STEP OF THE CONSTRUCTION VALUE CHAIN A RESPONSIBLE AND COMMITTED LEADER IN SUSTAINABLE CONSTRUCTION 21
Slide 22: Positive trends in our market
POSTIVE TRENDS IN OUR MARKET Anticipated evolution of the world population BUILDING ▪ Digitalization allowing numerous innovations ▪ Construction process more and more industrialized 35% (3.3bn) INFRASTRUCTURE ▪ Increasing urbanization leading to growing needs for infrastructure 44% ▪ Strong nee
Slide 23: Strategic priorities
STRATEGIC PRIORITIES Act as a global player in stable countries with a low risk profile where we have a long-established presence Develop exceptional projects with local partners in our domains of expertise Chernobyl Arch – Ukraine Pursue the rebalancing of our activities towards energies & se
Slide 24: Act as a global player in stable countries with low risk profile
ACT AS A GLOBAL PLAYER IN STABLE COUNTRIES WITH LOW RISK PROFILE WHERE WE HAVE A LONG-ESTABLISHED PRESENCE Countries with an established presence with revenues > €300m Target high value projects while taking a highly selective approach 2016 2017* Deploy the full scope of our activities (Infra. /
Slide 25: Develop exceptional projects with local partners
DEVELOP EXCEPTIONAL PROJECTS WITH LOCAL PARTNERS IN OUR DOMAINS OF EXPERTISE Leverage our strong expertise of large projects with exceptionally high complexity Address local markets with reliable and well-established local partners or other major international competitors Zagreb international ai
Slide 26: Pursue the rebalancing towards Energies & Services
PURSUE THE REBALANCING OF OUR ACTIVITIES TOWARDS ENERGIES & SERVICES Global turnover Global turnovera 14% Global Turnover 29% 17% 2012 2017 48% 68% 23% Building Civil Works Energies & Services Building Civil Works Energies & Services (a) incl. FY impact of Alpiq E&S and AW Edwards 26
Slide 27: Position and scope of activities in Energies & Services
POSITION AND SCOPE OF ACTIVITIES IN ENERGIES & SERVICES POSITION A global leader in energy, digital and industrial transformation Established presence in France, Switzerland, Canada, UK, Germany, Italy, Hong-Kong and Romania France’s first smart city in Dijon In the Top5 European players E
Slide 28: Energies & Services is a key development area
ENERGIES & SERVICES IS A KEY DEVELOPMENT AREA A MARKET WITH STRONG GROWTH PROSPECTS Smart cities Smart buildings / smart grids Upgrade of Addis Ababa’s power network Smart industry EXPANDING OUR PORTFOLIO OF SOLUTIONS An increasing importance of Energies & Services in the global construc
Slide 29: Strategic focus – Building
STRATEGIC FOCUS – BUILDING REINFORCE OUR PROJECT DEVELOPMENT ACTIVITIES Offer more value to our clients through a global and differentiated project in France in 2017 development approach : > Offering the widest range of activities across the construction value chain Offices Commercial (from land
Slide 30: Strategic focus – Infrastructure
STRATEGIC FOCUS – INFRASTRUCTURE RER Eole Extension - Paris STRATEGIC GOALS Remain a reference player in the major infrastructure markets Further strengthen and market our expertise in tunnels and in concessions and PPPs Roby 850, Liantang tunnel, Hong Kong Strengthen our infrastructure repa
Slide 31: Strategic focus – Industry
STRATEGIC FOCUS – INDUSTRY STRATEGIC GOALS Enhance our skills and level of expertise in industrial processes and maintenance Become an acknowledged player in Industry 4.0 area Pursue our development in power generation projects (especially solar farms) where we have a strong expertise 31
Slide 32: Prospects of a new digital era
PROSPECTS OF A NEW DIGITAL ERA DIGITALIZE OUR OFFERS Capitalize on our expertise in the smart cities area Develop innovative offers in the smart building area Operational control cockpit, Dijon smart city project DIGITALIZE OUR ORGANIZATION Develop a digital mindset in every aspect of our
Slide 33: Construction businesses strategy – Bouygues Immobilier
CONSTRUCTION BUSINESSES STRATEGY FRANÇOIS BERTIERE, CHAIRMAN & CEO Evasion – Romainville - France
Slide 34: Bouygues Immobilier, creator of better living
BOUYGUES IMMOBILIER, “CREATEUR DE MIEUX VIVRE”a Key figures at 31 December 2017 Revenues Reservations A leading French property developer in residential, €2.7bn €3.1bn commercial and sustainable neighborhood Housing Units Nextdoorb Sites A constant development since 1956 Reserved Unique know-h
Slide 35: Operates on the entire real estate value chain
BOUYGUES IMMOBILIER OPERATES ON THE ENTIRE REAL ESTATE VALUE CHAIN, FROM BUILDING TO NEIGHBORHOOD NEIGHBORHOOD BUILDING LEVEL LEVEL Energie Co-living Marketing Operation Land Usage User Urbanism Design & Construction & Management Analysis Services Sales Management 35
Slide 36: Bouygues Immobilier strengths and assets
BOUYGUES IMMOBILIER STRENGTHS AND ASSETS EXTENSIVE GEOGRAPHIC COVERAGE IN FRANCE WIDE AND DIVERSIFIED RANGE OF INNOVATIVE PRODUCTS AND SERVICES ADAPTED TO NEW USAGES Residential: affordable, intermediate and premium housing for owner-occupiers, buy-to-let properties, student and senior citizen
Slide 37: A strategy relying on mega trends
A STRATEGY RELYING ON 5 MEGA TRENDS Urbanization and Metropolization 3 STRATEGIC PRIORITIES 2 1. Leader in customer experience, focused on usage 1 3 2. From single buildings Demographic Collaborative to neighborhoods Pressure Economy 3. Digital transformation 5 4 Digital Energy Transition 37
Slide 38: Strategic priorities in residential
STRATEGIC PRIORITIES IN RESIDENTIAL Maintain leadership by enhancing customer experience Development in large French cities to improve market share gradually, notably with accelerating in Grand Paris area Propose differentiated and innovative offers to suit new usages > First developer to propos
Slide 39: Resilient residential market in France (1/2)
RESILIENT RESIDENTIAL MARKET IN FRANCE (1/2) SPECIFICS OF THE FRENCH RESIDENTIAL MARKET Trend in average housing price (index base 100 in 2007) VEFA scheme (sales before completion) 130 Bank lending policies: 120 > Loans are granted according to the ability of a household to repay its obligati
Slide 40: Resilient residential market in France (2/2)
RESILIENT RESIDENTIAL MARKET IN FRANCE (2/2) SHORT TERM DRIVERS French residential market 126 127 127 130 125 122 Interest rates remaining at a low level 112 109 103 102 99 100 Zero-interest loan program and Pinel tax incentive 84 85 83 76 confirmed until 2021 in dense areas Loi Elan supportin
Slide 41: Strategic priorities in commercial
STRATEGIC PRIORITIES IN COMMERCIAL Maintain leadership in sustainable and innovative offers Remain leader in Green-Office® positive-energy buildings Develop Rehagreen® activity (office building rehabilitation) in obsolete tertiary market Balance portfolio of projects between turnkey, presold o
Slide 42: Commercial market in an upward cycle
COMMERCIAL MARKET IN AN UPWARD CYCLE Vacancy ratea and market offer (in m sqm) in greater Paris area 4 10% THE LARGEST COMMERCIAL MARKET IN EUROPE 8% 3 (54M sqm STOCK) SUPPORTED BY 6% 2 4% Major urban development related to Grand Paris 1 2% Attractiveness of Paris following Brexit 0 0% 2008 20
Slide 43: Digital transformation and new businesses
DIGITAL TRANSFORMATION AND NEW BUSINESSES CUSTOMER EXPERIENCE Virtual reality CRM Flexom Entrevoisins application BUILDING INFORMATION MODELING MARKET PLACES Valorissimo platform: market shop and housing units for buy-to-let Co-design platform to create a housing program with futur
Slide 44: Construction business strategy – Colas
CONSTRUCTION BUSINESS STRATEGY HERVÉ LE BOUC CHAIRMAN & CEO
Slide 45: A world leader in construction and maintenance of transport infrastructure
A WORLD LEADER IN CONSTRUCTION AND MAINTENANCE OF TRANSPORT INFRASTRUCTURE Mission: promoting infrastructure solutions for sustainable mobility Vision: global expertise federated around a strong brand Main business segments ROADS MATERIALS RAILWAYS PRESENT IN OVER 50 COUNTRIES VIA MORE THAN 80
Slide 46: Colas operates in long-term growth markets
COLAS OPERATES IN LONG-TERM 90% GROWTH MARKETS Maintenance 10% GROWING NEED FOR CONSTRUCTION AND MAINTENANCE OF TRANSPORT INFRASTRUCTURE Construction FAVORABLE FUNDAMENTAL TRENDS Population growth and urbanization Infrastructure upgrading programs in developed countries Equipment needs in
Slide 47: Main strategic axes
MAIN STRATEGIC AXES 1. VALUING INDUSTRIAL ACTIVITIES Brotonne bridge – Rouen – France 2. EXPANDING SERVICE OFFERING Major projects Smart Roads, Smart Mobility 3. CONTINUING TARGETED INTERNATIONAL DEVELOPMENT High speed lane – Nîmes Montpellier – France 4. ACCELERATING THE DIGITAL TRANSFORMATION
Slide 48: Valuing industrial activities
VALUING INDUSTRIAL ACTIVITIES Thanks to its drive to ensure vertical integration, Colas now boasts a competitive edge with strong footholds in aggregates and bitumen 741 quarries 1 refinerya 125 emulsion plants 568 asphalt plants 168 concrete plants Storage and logistics sites on 5 con
Slide 49: Expanding offering
EXPANDING OFFERING With the creation of Colas Projects in 2016, Colas federated and strengthened its resources for studying, arranging the financing and executing complex projects, allowing to expand its offer and Iqualuit airport increase its market share > Major road and airport projects > Major
Slide 50: Continuing international development
CONTINUING INTERNATIONAL DEVELOPMENT Colas makes roughly 50% of its revenue outside Francea - mainly in low risk countries EUROPE (excl. France) FRANCE 16% NORTH AMERICA 26% 50% 5% 3% ASIA & OCEANIA REST OF THE WORLD In 2018, with the acquisition of Miller McAsphalt (Canada) and Alpiq’s railway
Slide 51: Accelerating the digital transformation
ACCELERATING THE DIGITAL TRANSFORMATION Digital technologies are now part of our businesses, and this means transformation > Process > Industries 4.0 > New businesses With digital technologies, Colas has a major lever to take full advantage of its global position > Sharing of know-how and expert
Slide 52: Maximize the value of industrial assets: bitumen products and quarries
MAXIMIZE THE VALUE OF INDUSTRIAL ASSETS BITUMEN PRODUCTS LOUIS GABANNA EXECUTIVE VICE-PRESIDENT, NORTH AMERICA QUARRIES THIERRY MÉLINE EXECUTIVE VICE-PRESIDENT, FRANCE - RAILWAYS
Slide 53: Vertical integration, a long-standing model and strategic asset
VERTICAL INTEGRATION, A LONG-STANDING MODEL AND STRATEGIC ASSET AT COLAS Securing supply Guaranteeing quality Stabilizing products profit margins Increasing profitability Improving competitive edge 53
Slide 54: Maximize the value of industrial assets: bitumen products
MAXIMIZE THE VALUE OF INDUSTRIAL ASSETS BITUMEN PRODUCTS LOUIS GABANNA EXECUTIVE VICE-PRESIDENT, NORTH AMERICA
Slide 55: Bitumen is part of Colas' DNA
BITUMEN IS PART OF COLAS’ DNA BITUMEN IS WHERE COLAS STARTED Creation of Colas in 1929 with Cold Asphalt Many products and specialties invented and patented by Colas since COLMAT® COLAS HAS AN INTERNATIONAL CAMPUS FOR SCIENCE AND TECHNIQUES 130 employees 90 years of capitalized expertise
Slide 56: Colas is a major player in the bitumen market
COLAS IS A MAJOR PLAYER IN THE BITUMEN MARKET BIGGEST PURCHASER WORLDWIDE 5 million tons / year ≈5% share of the market GREAT NUMBER OF DISTRIBUTION POINTS Network reinforced by acquisition of McAsphalt in 2018 PRESENT THROUGHOUT THE ENTIRE VALUE CHAIN Production (Kemaman Refinery in M
Slide 57: Colas sells and distributes bituminous products
COLAS SELLS AND DISTRIBUTES BITUMINOUS PRODUCTS Canada - USA McAsphalt Third-party sales ~700 kt Southeast Asia Tipco Asphalt Australia Third-party sales ~1,600 kt SAMI Third-party sales ~200 kt 57
Slide 58: McAsphalt: a major Colas acquisition in 2018
MCASPHALT: A MAJOR COLAS ACQUISITION IN 2018 AN ENTREPRENEURIAL SUCCESS Established in 1970 Rapid growth through acquisitions, building storage depots, sustainable ventures with major industry players THE LEADER IN THE BITUMEN INDUSTRY IN CANADA Strong expertise in product formulation St
Slide 59: Bulk storage - 300,000 tons across Canada
BULK STORAGE - 300,000 TONS ACROSS CANADA 59
Slide 60: McAsphalt supply network
MCASPHALT SUPPLY NETWORK 60
Slide 61: McAsphalt: rapid integration
MCASPHALT: RAPID INTEGRATION INTEGRATION OF COLAS CANADA BITUMEN ACTIVITIES IN MCASPHALT Integration started at a high level, immediately upon acquisition Each company independently reviewed their own processes and best practices WITH IMMEDIATE SYNERGIES Common brand Mutualization of ass
Slide 62: Maximize the value of industrial assets: quarries
MAXIMIZE THE VALUE OF INDUSTRIAL ASSETS QUARRIES THIERRY MÉLINE EXECUTIVE VICE-PRESIDENT, FRANCE - RAILWAYS
Slide 63: Quarries located as close as possible to construction activities
QUARRIES LOCATED AS CLOSE AS POSSIBLE TO CONSTRUCTION ACTIVITIES Rest of the World North France 91 SITES America PRODUCTION 2017 = 27 MT (*) 392 SITES 258 SITES PRODUCTION 2017 = 26 MT (*) PRODUCTION 2017 = 43 MT (*) Group 741 SITES PRODUCTION 2017 = 96 MT (*) Total (*) MT = million tons 63
Slide 64: Colas continues to grow in quarries
COLAS CONTINUES TO GROW IN QUARRIES MAIN ACQUISITIONS OVER THE LAST THREE YEARS Malet (50%) Aggregates Pays de Loire Miller Quebec NY state La Compagnie Meloche Graymont Carayon Languedoc UAE Oman 64
Slide 65: Quarries, a strategic asset for Colas
QUARRIES, A STRATEGIC ASSET FOR COLAS IN ORDER TO MEET A BASIC NEED Aggregates, 2nd most consumed resource after water Growth in demand for infrastructure QUARRIES ARE A MAJOR ASSET FOR COLAS, TO Secure the supply of road and railway building materials Supply manufacturing facilities: as
Slide 66: Diversified assets
DIVERSIFIED ASSETS Different types of deposits > Massive rocks > Soft rocks Different types of operations > Quarries > Gravel pits Different types of end-users > Industries > Building > Public works > Railways 66
Slide 67: Very long-term assets
VERY LONG-TERM ASSETS Authorized reserves by zone (in Mt) and by year of AUTHORIZED RESERVES AMOUNT TO production at end 2017 2,900 million tons, i.e. 30 years of production Americas 1,300 Mt 50 years 4,800 million tons including potential reserves Rest of the World 600 Mt 23 years France 1,00
Slide 68: Main strategic axes (1/2)
MAIN STRATEGIC AXES (1/2) PURSUE TARGETED ACQUISITIONS IN RELATION TO OUR ACTIVITIES INCREASE THE VOLUME OF INTERNAL AND EXTERNAL SALES REDUCE PRODUCTION COSTS AND OPTIMIZE INVESTMENTS 68
Slide 69: Main strategic axes (2/2)
MAIN STRATEGIC AXES (2/2) DEVELOP CIRCULAR ECONOMY ACTIVITIES Deconstruction Recycling of materials Storage activities 69
Slide 70: Initiatives to protect the environment and bolster communication with the public
INITIATIVES TO PROTECT THE ENVIRONMENT AND BOLSTER COMMUNICATION WITH THE PUBLIC AROUND THE WORLD 70
Slide 71: Conclusion
CONCLUSION Backed by vertical integration strategy, Colas has developed strong positions in aggregates and bitumen sectors These activities provide Colas with an additional lever to improve performance in the future thanks to the development of their own business model 71
Slide 72: Q&A
Q&A
Slide 73: A buoyant market
A BUOYANT MARKET A favorable context New expectations Demographic pressure and growing urbanization From elected representatives Decrease in local authority budget emphasizing the > Urban renewal aiming to: need to cooperate with the private sector o Develop the attractiveness of areas o Respo
Slide 74: Urbanera
URBANERA EMMANUEL DESMAIZIÈRES, MANAGING DIRECTOR, URBANERA
Slide 75: Urbanera's mission
THE 6 COMMITMENTS OF URBANERA URBANERA’S MISSION 1. ENERGY & UTILITIES 2. URBAN SERVICES & MOBILITY Design mixed neighborhoods, with a common identity that creates value for all stakeholders of the urban project: residents, employees, 3. WATER & WASTE companies, investors, local authorities, publi
Slide 76: Urban development end-to-end coordinator
URBAN DEVELOPMENT “END-TO-END COORDINATOR” Concession Urban URBAN DEVELOPER LOCAL AUTHORITIES contracts developer Designing and developing Defining zoning regulations public infrastructure Defining and financing Sale of macro lots public infrastructure Following up the operators’ Pub
Slide 77: Urbanera strategic priorities
URBANERA STRATEGIC PRIORITIES Respond to city expectations and end-user needs Become a leader in the fast growing urban renewal market Increase Bouygues Immobilier market share and profitability on its three business segments: residential, commercial and retail Generate additional revenues t
Slide 78: Urbanera's key strengths
URBANERA’S KEY STRENGTHS PROPOSE UNIQUE PROJECTS TAILORED TO AREAS, RESPONDING TO CITY EXPECTATIONS AND PROVIDING NEIGHBORHOODS THEIR OWN IDENTITY “Les Fabriques” in Marseille: development of a productive city with makers “Quartier de la Gare” in Divonne Les Bains: revitalization of the city c
Slide 79: Fort d'Issy, an iconic eco-neighborhood
FORT D’ISSY, AN ICONIC ECO-NEIGHBORHOOD 95%a OF PERSONS INTERVIEWED PROUD TO LIVE IN FORT D’ISSY SPECIFICS “ IssyGrid ”, a smart Grid serving the whole district Optimum energy consumption with geothermal energy covering 75% of needs Fort d’Issy – crédit : Pierre Perrin Pneumatic waste coll
Slide 80: Ginko, spearhead of Bordeaux 2030
GINKO, SPEARHEAD OF “BORDEAUX 2030” 76%a OF PERSONS INTERVIEWED SAY THAT GINKO IS A PLEASANT NEIGHBORHOOD TO LIVE SPECIFICS Biomass heating plant Lagooning water treatment 4.5 hectares of park and 20 shared garden plots 50% of roads dedicated to soft mobility Concierge services DESCR
Slide 81: Charenton, flagship project of Reinventing Grand Paris
CHARENTON, FLAGSHIP PROJECT OF “REINVENTING GRAND PARIS” STRONG AMBITIONS Create a new economic hub in Eastern Paris based on the virtual reality Open up the district Deliver a remarkable sustainable neighborhood SPECIFICS A 180m green residential and hospitality tower A garden bridge
Slide 82: Sustainable districts
SUSTAINABLE DISTRICTS PASCAL MINAULT MANAGING DIRECTOR, PROPERTY DEVELOPMENT, BOUYGUES SA La Colline des Mathurins (Bagneux - France)
Slide 83: Our vision of project development
OUR VISION OF PROJECT DEVELOPMENT A SOPHISTICATED AND DIFFERENTIATED MARKETING APPROACH Positioned as the long-term strategic partner to local authorities, property investors and operators Positioned across the whole value chain, from land management to operation and user experience through co
Slide 84: Our market approach
OUR MARKET APPROACH LINKCITY in 2017 in France LINKCITY: GLOBAL BRAND, LOCAL PRESENCE An umbrella brand name to market project development offers in various countries Capitalizing on the local networks of our construction subsidiaries Lucerne Zurich Bâle SPECIFIC EXPERTISE OF LOSINGER-MARAZZ
Slide 85: The idea behind sustainable districts
THE IDEA BEHIND SUSTAINABLE DISTRICTS TRANSFORMING EXISTING, ABANDONED, DISOWNED URBAN AREAS INTO NEW VIBRANT SUSTAINABLE MIXED-USE DISTRICTS COMPOSED OF HOUSING, OFFICE, RETAIL, EDUCATIONAL FACILITIES Eole Evangile – Paris 19e - France 85
Slide 86: Sustainable districts represent a true opportunity
SUSTAINABLE DISTRICTS REPRESENT A TRUE OPPORTUNITY Little or no upfront investment No property market risk assumed High profile / high impact projects Generating high volume / long term projects Extended skill set required (building on Bouygues Group’s businesses) Limited competition / h
Slide 87: Our inclusive approach to district development
OUR INCLUSIVE APPROACH TO DISTRICT DEVELOPMENT IMPROVE OUR VALUE PROPOSITION BY OFFERING AN INCREASINGLY INCLUSIVE APPROACH 87
Slide 88: An iconic development project
AN ICONIC DEVELOPMENT PROJECT “CASERNE DES VERNETS” IN GENEVA Existing Swiss Army barracks in central Geneva Geneva’s ambition to create a new sustainable housing district Public tender to select investors to develop, build and operate the district Bouygues Construction’s Swiss subsidiary
Slide 89: Mastering contractual environment at each stage of a project
MASTERING CONTRACTUAL ENVIRONMENT AT EACH STAGE OF A PROJECT URBAN DISTRICT DEVELOPMENT: AN AMBITION, AN OPPORTUNITY Development partnerships with stakeholders: land owners, public authorities PROJECT DEVELOPMENT: A MARKET, A PROPERTY Leases and sales agreements with future tenants/investors
Slide 90: Bouygues Construction's expertise
BOUYGUES CONSTRUCTION’S EXPERTISE URBAN DISTRICT DEVELOPMENT Local knowledge, contacts with administrations/city executives Sociology, demographics, community management, co- living Urban planning, mobility, energy, bio-diversity PROJECT DEVELOPMENT Market knowledge and investor/operator
Slide 91: Greencity in Zurich
GREENCITY IN ZURICH PROGRAM 165,000 sqm built area 60% housing/40% offices, hotel, senior housing, education 2000 Watts certified TIMELINE Project development: 2004-2013 Construction: 2014-2021 Greencity – Zurich - Switzerland INVESTMENT VALUE CHF800m 91
Slide 92: Caserne des Vernets in Geneva
“CASERNE DES VERNETS” IN GENEVA PROGRAM 150,000 sqm 1,500 housing units Offices, hotel, retail, public facilities TIMELINE Bid: 2013-2014 Development: 2015-2019 Construction: 2020-2024 INVESTORS 2 insurers (Swisslife, Mobilière), 3 local pension funds, 3 housing coooperatives C
Slide 93: Bouygues smart cities approach
BOUYGUES SMART CITIES APPROACH FRANÇOIS PITTI DIRECTOR PROSPECTIVE & STRATEGIC MARKETING, BOUYGUES CONSTRUCTION
Slide 94: In demand for smarter cities
IN DEMAND FOR SMARTER CITIES 94
Slide 95: User-centric expectations
USER-CENTRIC EXPECTATIONS 95
Slide 96: Our objectives for smart districts and cities
OUR OBJECTIVES FOR SMART DISTRICTS AND CITIES 96
Slide 97: A global partnership-based approach
A GLOBAL PARTNERSHIP-BASED APPROACH Work together on Define Conduct Support and challenges Your sustainable the development maintain neighborhood plan a long term project commitment 97
Slide 98: A global ecosystem
A GLOBAL ECOSYSTEM Group Global/ National Local 98
Slide 99: Eureka - Lyon - Partnerships
EUREKA - LYON - PARTNERSHIPS 99
Slide 100: Smart city in Dijon
SMART CITY IN DIJON Citizens Representatives Companies and public services Single control center available Geo-tracking of 205 vehicles 24/7 year round 148 traffic light intersections Automatic bollards 34,000 street lamps (100% LED) 220 CCTV Wi-Fi hot spots 1,600 smart car parking spaces Displays 1
Slide 101: End user view
END USER VIEW Stake : + Stake : + Stake : + Social Environmental Connected Types of places in the neighborhood Quality of life and ecocitizenship Smart governance 101
Slide 102: Tools to co-develop the neighborhood
TOOLS TO CO-DEVELOP THE NEIGHBORHOOD Play Sketch Board / Market Place Collaborative Game for Neighborhood profiling application Innovations and best practices co-conception 102
Slide 103: Conclusion
CONCLUSION 103 (]{Bouycues ))
Slide 104: Smart road smart mobility
SMART ROAD SMART MOBILITY FRÉDÉRIC GARDÈS EXECUTIVE VICE-PRESIDENT, INTERNATIONAL S
Slide 105: From infrastructure to mobility solutions
FROM INFRASTRUCTURE TO MOBILITY SOLUTIONS To respond to underlying trends and new expectations > From infrastructure to mobility solutions > With the rise of Mobility as a Service (MaaS) Colas expands its range of offerings to > Adapt to the specificities of each territory > Be more and more cre
Slide 106: Mobility solutions, a major axis for Colas
MOBILITY SOLUTIONS, A MAJOR AXIS FOR COLAS Major resources earmarked for innovation > Campus for Science and Techniques, world’s leading private research center dedicated to roads > Creation in 2017 of Mobility by Colas, a digital offer designed to serve infrastructure For roads that are > Safer
Slide 107: Colas has three targets in mobility
COLAS HAS THREE TARGETS IN MOBILITY CREATING NEW FUNCTIONS FOR INFRASTRUCTURE Smart Roads ANTICIPATING MAINTENANCE NEEDS Roads as a Service DEVELOPING A CUSTOMER-FOCUSED APPROACH BY SERVING USERS Smart Mobility 107
Slide 108: Smart road - Wattway: positive energy road surfacing
SMART ROAD - WATTWAY: POSITIVE ENERGY ROAD SURFACING Powering signs Street lights Auto consumption Powering charging stations for electric vehicles Trial site in Japan 7-Eleven store Over 30 trial sites around the world: North America, Europe, Japan Numerous use cases have been identified 2019
Slide 109: Smart road - Flowell: dynamic multi-modal roads
SMART ROAD - FLOWELL: FOR DYNAMIC, MULTI-MODAL ROADS Characteristics > Luminous marking > Dynamic marking > Programmable marking Use cases > Crosswalks > Sharing infrastucture > Dynamic lane allocation 1st in-situ, real-life trials at the beginning of 2019 109
Slide 110: Road as a service - Anaïs
ROAD AS A SERVICE - ANAÏS ACQUIRE - DIGITIZE - ANALYZE - INFORM - SECURE Digital action recommendation tool for infrastructure maintenance > Preventive detection of risk zones using on-board sensors and near accident statistics > Recommendations for actions and improvements on road assets > Optimi
Slide 111: Mobility as a service - Moov'Hub in Paris-Saclay
MOBILITY AS A SERVICE - MOOV’HUB IN PARIS - SACLAY PILOTING TOOL FOR PARIS-SACLAY Mobility platform Innovation partnership & and web site Moov’Hub Smart, shared parking management service Observatory Digital experience centered on the user Mobility and Parking CHARACTERISTICS OF THE PROJEC
Slide 112: Benefits and stakes for Colas
BENEFITS AND STAKES FOR COLAS REINFORCING BRAND IMAGE 1 to 2 Notoriety to reinforce the value of the Colas brand years Positive impact on employer brand as resources are lacking POSITIONING ON VALUE CHAIN 2 to 5 Leadership strengthened in ecosystem of mobility years Added-value partners
Slide 113: Q&A
Q&A S Future APHP building
Slide 114: Innovation in the construction business
INNOVATION IN THE CONSTRUCTION BUSINESS CHRISTOPHE LIÉNARD GROUP CHIEF INNOVATION OFFICER Paris , October 2nd 2018
Slide 115: Main trends impacting us
MAIN TRENDS IMPACTING US Climate Change Changing user Population Digital and behavior growth and technological urbanization revolution 115
Slide 116: Innovation and digital
INNOVATION AND DIGITAL NEW USAGES MADE POSSIBLE THANKS TO THE DEVELOPMENT OF 4 KEY TECHNOLOGIES VIRTUAL, AUGMENTED INTERNET OF THINGS ARTIFICIAL BLOCKCHAIN AND MIXED REALITY AND BIG DATA INTELLIGENCE A new interactive Information storage and Collecting massive From automation to environment for the
Slide 117: Innovation culture and management
INNOVATION CULTURE AND MANAGEMENT A ROBUST GROUP-WIDE R&D POLICY ACTIVE MONITORING A DIGITAL OF TRANSFORMA- TECHNOLOGICAL TION PROCESS ADANCES WORLDWIDE AN INNOVATION- FRIENDLY ECO- ECOSYSTEM THE "INNOVATE THINK TANKS LIKE A STARTUP" AND ACADEMIC PROGRAM AND INSTITUTIONS ITS ACTION TANK OPEN CIB Dév
Slide 118: Digital: a pillar of the Group's transformation
DIGITAL: A PILLAR OF THE GROUP’S TRANSFORMATION A PLAN DEVELOPED ALONG 3 AXIS Transform INTERNAL processes and work methods Improve customer experience and develop new business related to the EXTERNAL ecosystem Instill a digital CULTURE within the group La Seine Musicale – Boulogne 118
Slide 119: Employees are key players of this transformation
EMPLOYEES ARE KEY PLAYERS OF THIS TRANSFORMATION SPACE AND EVENT SHARING IMPLEMENTED SO EACH EMPLOYEE PARTICIPATES IN THE GROUP DIGITAL TRANSFORMATION The TRANSFORMER CLUB founded in January 2018, comprised of 30 participants belonging to 5 digital sections, working swiftly for 3 month to empower
Slide 120: R&D and innovation are accelerators of digital transformation
R&D AND INNOVATION ARE ACCELERATORS OF DIGITAL TRANSFORMATION 1- IMPROVE PRODUCTIVITY AND PERFORMANCE 2- ENRICH AND RETHINK THE CUSTOMER EXPERIENCE 3- UNCOVER DISRUPTIVE ACTIVITIES 3D printing 120
Slide 121: Improve productivity and performance
IMPROVE PRODUCTIVITY AND PERFORMANCE EXAMPLES AN EXOSKELETON FOR OUR SITES (COLAS): EXOPUSH ➢ A tool to facilitate the work of our companions on road works, co- developed between Colas and the RB3D startup ➢ The deployment of EXOPUSH underway with 35 devices already in the field. It contributes to
Slide 122: Enrich and rethink the customer experience
ENRICH AND RETHINK THE CUSTOMER EXPERIENCE EXAMPLES "COLAS & MOI" SMARTPHONE APPLICATION An application that creates a direct link with residents of worksites to improve their experience and inform them of our work progress. This approach is favorably perceived by our clients and prompted intern
Slide 123: Emergence of disruptive activities
EMERGENCE OF DISRUPTIVE ACTIVITIES EXAMPLES BLOCKCHAIN TO MANAGE THE CONSUMPTION OF ENERGY (BY IMMO) A first model was produced in 2017 with Microsoft and the startup Energisme The implementation of a blockchain in Lyon in the Hikari district (Island joint offices/housing/shops) will be curren
Slide 124: Digital transformation of project activities
DIGITAL TRANSFORMATION OF PROJECT ACTIVITIES MARIE-LUCE GODINOT EVP DIGITAL TRANSFORMATION, INNOVATION AND SUSTAINABLE DEVELOPMENT Construction data from products and projects are sources of innovation and value creation
Slide 125: Our business challenges
OUR BUSINESS CHALLENGES Improve our efficiency Better manage the Integrate the growing complexity digital revolution Strengthen our of our projects into our businesses competitiveness 125
Slide 126: Digital transformation of Bouygues Construction project activities
THE DIGITAL TRANSFORMATION OF BOUYGUES CONSTRUCTION PROJECT ACTIVITIES Bouygues Construction launched in 2014 the B In Motion project Implement BIM: Building Information Modeling Data of buildings and structures 126
Slide 127: Digital transformation of Bouygues Construction project activities
THE DIGITAL TRANSFORMATION OF BOUYGUES CONSTRUCTION PROJECT ACTIVITIES Bouygues Construction launched in 2014 the B In Motion project Implement BIM: Digitise our Building projects Information activities Modeling Data of buildings Data of and structures projects 127
Slide 128: Use cases providing value to projects
THE DIGITAL TRANSFORMATION OF BOUYGUES CONSTRUCTION PROJECT ACTIVITIES Use cases providing value to projects BUILDINGS and EXCHANGES CLIENTS PROJECTS STRUCTURES REQUIREMENTS ACTIVITIES BIM MODELS DOCUMENTATION AND EVENTS 128
Slide 129: Use cases providing value to the company
THE DIGITAL TRANSFORMATION OF BOUYGUES CONSTRUCTION PROJECT ACTIVITIES Use cases providing value to the company Provide a Provide access to Simplify & Massify consolidated & other projects data standardize purchasing transversal to draw upon current business activities project overview to company co
Slide 130: Conclusion
CONCLUSION AN EXPERIMENTATION PHASE WITH REAL PROJECTS A MAJOR INNOVATIVE ADVENTURE : FIRST IN OUR INDUSTRY TO LAUNCH A PROGRAM OF THIS SIZE AN IMPORTANT EXPECTED VALUE 130
Slide 131: Tunnel Lab
TUNNEL LAB MARIE-LUCE GODINOT EVP DIGITAL TRANSFORMATION, INNOVATION AND SUSTAINABLE DEVELOPMENT
Slide 132: Two challenges
TWO CHALLENGES IMPROVE SAFETY INCREASE PRODUCTIVITY 132
Slide 133: Data collection on a worksite
DATA COLLECTION ON A WORKSITE 133
Slide 134: Powerful data platform leads to new applications
POWERFUL DATA PLATFORM LEADS TO NEW APPLICATIONS 134
Slide 135: Facts
FACTS More than 10 Data Scientist Tunnel Lab + Data Lab More than 8 Terabytes Raw Data More than 10 computing nodes Processing power 135
Slide 136: Data analysis use case: decision making tool for production crews
DATA ANALYSIS – USE CASE CREATE A DECISION MAKING TOOL FOR PRODUCTION CREWS BASED ON MACHINE DATA 136
Slide 137: Goal & target
GOAL & TARGET GOAL Prescribe appropriate boring parameters to the production crew depending on soil and machine configuration in real time TARGET Improve safety Reduce risk of over excavations or cavities Reduce waiting time Improve equipment availability time Increase productivity 1
Slide 138: Data analysis (1/3)
DATA ANALYSIS (1/3) 1 Analysis over 50 variables sampled at 1hz from Tunnel Boring Machine regarding soil and excavation 138
Slide 139: Data analysis (2/3)
DATA ANALYSIS (2/3) Clogging +++ 2 Clogging ++ Create a soil / machine interaction classification Clogging + Soft-- Clogging + Soft - Clogging + Soft - Soft + Hard + Hard ++ Hard +++ 139
Slide 140: Data analysis (3/3)
DATA ANALYSIS (3/3) Clogging +++ 3 Clogging ++ Classification robustness checking Clogging + 1 2 Soft-- Clogging + Soft - Clogging + Soft - Soft + Hard + Plu Clay Clay/Sand Altered rock Roc Roc Concr Roc g k ete k k Hard ++ 0 50 100 150 200 250 300 350 traitement CDG CDG CDG Hard +++ 140
Slide 141: Machine learning on different worksites
MACHINE LEARNING ON DIFFERENT WORKSITES 141
Slide 142: BIM at Colas
BIM AT COLAS MAUD GUIZOL BIM BY COLAS
Slide 143: Building Information Modeling by Colas
Butiding Information Modeting GOVERNANCE TRAINING Innovation biImMsECco Building Information Modeling by Colas \ =<oias— TECHNICAL ASSISTANCE SOLUTIONS INTEGRATION PRODUCTION ”
Slide 144: Dunkerque refinery site
DUNKERQUE REFINERY SITE 144
Slide 145: Digital transformation
DIGITAL TRANSFORMATION NATHALIE WATINE, EVP, DIGITAL TRANSFORMATION & HR Ginko – Bordeaux - France
Slide 146: Digital transformation: rapidly changing the property activity
DIGITAL TRANSFORMATION: RAPIDLY CHANGING THE PROPERTY ACTIVITY Very fast pace 400 start-ups created in the property sector in the last 4 years Half are less than 2 years old 20 billion USD of investments expected in 2020 Split by technology Big Data Artificial intelligence 6%3% 8% Virtual reality 9%
Slide 147: Bouygues Immobilier is stepping up its digital transformation
BOUYGUES IMMOBILIER IS STEPPING UP ITS DIGITAL TRANSFORMATION Digitising business processes Preparing for change and creating Augmented customer and employee new businesses experience Enhancing culture, expertise and soft skills 147
Slide 148: Using data and big data to find land lots
USING DATA AND BIGDATA TO FIND LAND LOTS Faster and more reliable land identification and valuation Zoning regulations, transportation, minutes of meetings, etc. STRONG PARTNERSHIPS TO OPTIMIZE DATA INNOVATIVE SOLUTIONS FOR OUR BUSINESSES Identification of value-added plots, appointments plannin
Slide 149: Data and big data for more efficient marketing
DATA AND BIGDATA, FOR MORE EFFICIENT MARKETING Using data (Private & Open Data) and creating a Data Lab: analysis, statistics, algorithms, projection, etc. Targets for marketing campaigns Ranking of prospects and reservations Use data from mobile phone base stations to identify Statistical analysis
Slide 150: An even better customer experience
AN EVEN BETTER CUSTOMER EXPERIENCE DIGITAL, AN OPPORTUNITY TO TRANSFORM THE CUSTOMER EXPERIENCE Visualize and conceive Customize, configure and implement on-line 7,500 LOTS CAN BE CONFIGURED ON-LINE IN 2D OR 3D 150
Slide 151: Personalized customer relations enhanced by digital
PERSONALIZED CUSTOMER RELATIONS ENHANCED BY DIGITAL PERSONALIZED PURCHASING PROCESS, FROM RESERVATION TO HANDOVER, WITH DIGITAL TOOLS AND SUPPORT Electronic contract and paperwork Online appointments (options, move-in inspection, pre-handover, handover, etc.) Chatbot Information on worksit
Slide 152: Ultra customization: co-design platform
ULTRA CUSTOMIZATION: CO-DESIGN PLATFORM From commercial offers to personalized responses to customer enquiries by combining BigData and BIM Finding customers Land opportunities Marketing lots Demand Designing developments Co-designing Supply developments Finding land A new customer experience that g
Slide 153: New uses in the home
NEW USES IN THE HOME MON LOGEMENT 100% CONNECTE
Slide 154: Q&A
Q&A
Slide 155: Conclusion
CONCLUSION PHILIPPE MARIEN DEPUTY CEO Departmental road 177 Ille et Vilaine – France
Slide 156: We are in a long period of high demand at worldwide level
WE ARE IN A LONG PERIOD OF HIGH DEMAND AT WORLWIDE LEVEL Large infrastructure Strong need for renewal 4 Megatrends plans in mature and maintenance Infrastructure, roads, districts, countries buildings, industry Urbanization & Climate Population change growth Digital Changing revolution user behavior
Slide 157: Evolution of the construction sector leads to higher entry barriers and less cyclicality
EVOLUTION OF THE CONSTRUCTION SECTOR LEADS TO HIGHER ENTRY BARRIERS AND LESS CYCLICALITY HIGHER DEMAND FOR 1. POPULATION GROWTH AND URBANISATION More complex and sophisticated projects Bigger projects BETTER requiring more SUSTAINABILITY expertise HIGHER ENTRY 2. CLIMATE CHANGE Offers with enh
Slide 158: A key opportunity for the Group's construction businesses
A KEY OPPORTUNITY FOR THE GROUP’S CONSTRUCTION BUSINESSES DEVELOPER OUR POSITIONING AND STRENGTHS BRING US STRONG COMPETITIVE ADVANTAGES Ability to realize complex and sophisticated projects Specific knowhow in sustainable construction BUILDER Full-service solutions offering the best to cust
Slide 159: Conclusion
CONCLUSION We have entered a long period of high demand at worlwide level The evolution of the construction market leads to high entry barriers and lower cyclicality and thus to a better sustainability of margin Bouygues’ construction businesses positioning and strengths bring us strong compet
Slide 160: Thank you for attending
Thank you for attending Yves Saint Laurent Museum - Morocco