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Bouygues SA — Investor Presentation (May 2006)

52 slides from Bouygues SA's investor presentation, May 2006

  1. Slide 1: Bouygues Group Presentation May 2006

    Bouygues Group Presentation May 2006 Investor Relations

  2. Slide 2: Forward-looking statements and contents

    This document contains projections and forecasts. They express objectives based on the current assessments and estimates of the Group’s general management which are subject to many factors and uncertainties. Consequently, actual figures could differ significantly from projected figures. The followin

  3. Slide 3: Bouygues Group: four business areas

    BOUYGUES GROUP : four business areas Roadworks Building / Civil Works Property (1984) (1952) (1956) 96.4 % 100 % 100 % CONSTRUCTION (1994) (1987) TELECOMS MEDIA 89.5 % (1) (2006) 42.9 % POWER / TRANSPORT 21 % (2) (1) Agreement with BNP Paribas Group for the purchase of their 6.5% stake at the latest

  4. Slide 4: Bouygues Group: key operating figures

    BOUYGUES GROUP: key operating figures Million euros - IFRS 2004 2005 Change Sales 20,894 24,073 (1) + 15% Current operating profit 1,557 1,852 + 19% Net profit attributable to the Group 909 832 - 8% Net profit excl. capital gain from 700 832 + 19% disposal of Saur ROCE 12.7% 16.5% + 3.8 pts Strong r

  5. Slide 5: Key figures per share and debt situation

    BOUYGUES GROUP: key figures per share (in euros) „ Net profit per share „ Dividend per share (excluding exceptional payout) 0.90 2.72 0.75 x 3.5 2.57 1.93 2.51 x 3.3 0.50 2.10 0.36 0.36 0.36 1.03 2.01 0.26 1.34 0.93 0.75 2001 2002 2003 2004 2004 2005 IFRS 1999 2000 2001 2002 2003 2004 2005 French GA

  6. Slide 6: Free cash flow and Q1 2006 sales

    BOUYGUES GROUP: free cash flow Million euros - IFRS 2004 2005 Cash flow 2,714 3,090 - Cost of net financial debt - 159 - 187 - Income tax * - 501 - 570 - Net operating investment - 1,047 - 1,229 Free cash flow 1,007 1,104 (*) income tax expense for the year, including deferred tax (€185m in 2004 and

  7. Slide 7: Contents: the businesses

    „ THE BOUYGUES GROUP page 2 „ THE BUSINESSES page 6 „ GROUP OUTLOOK page 28 „ THE BOUYGUES - ALSTOM DEAL page 30 „ APPENDIX 1: FINANCIAL DATA page 36 „ APPENDIX 2: BUSINESS DRIVERS page 43 1111 1212 Investors presentation – May 2006 6

  8. Slide 8: Bouygues Construction: Building & Civil Works

    BOUYGUES CONSTRUCTION : Building & Civil Works 9 From design and construction to operation : a world leader 9 A global operator involved at all stages of the value chain 9 A recurring high cash position Million euros - IFRS 2004 2005 Change Sales 5,512 6,131 + 11% of which France 3,236 3,653 + 13% o

  9. Slide 9: Major public-private projects

    MAJOR PUBLIC-PRIVATE PROJECTS „ Since 2002, 18 major contracts won combining public and private funding „ These projects can take different legal forms: PFI, PPP, concession, etc. „ This market is growing fast due to: 9 increased needs in public infrastructure and facilities 9 efficiency drives 9 bu

  10. Slide 10: Bouygues Construction: strategy and outlook

    BOUYGUES CONSTRUCTION (B/CW): strategy and outlook „ In a globally favourable environment, Bouygues Construction seeks to: 9 Maintain a high level of performance 9 Remain selective in its choice of projects and vigilant on risks 9 Continue to improve productivity 9 Pursue a controlled external growt

  11. Slide 11: Bouygues Immobilier: key figures and commercial activity

    BOUYGUES IMMOBILIER: key figures Corporate & Commercial 9 Leading property developer in France Housing Property 33% 67% 9 No speculative exposure, thanks to prudent business guidelines 2005 revenue breakdown by activity Million euros - IFRS 2004 2005 Change Sales 1,295 1,557 + 20% Operating profit 1

  12. Slide 12: Bouygues Immobilier: strategy and outlook

    BOUYGUES IMMOBILIER: strategy and outlook „ In an environment which remains favourable, Bouygues Immobilier: 9 is on track for a soft landing in the housing segment and gradual recovery of corporate/commercial property in France 9 will pursue controlled growth by adopting an increasingly responsive

  13. Slide 13: Colas: profile and key figures

    COLAS: profile of a world leader „ A seasonal but non-cyclical activity „ A local business (clients are mostly local communities) „ A vertically integrated company 9 Ownership of quarries 9 Production of aggregates, asphalt mixes and emulsions „ A 16.7% stake in Cofiroute, a private motorway company

  14. Slide 14: Colas: order book and strengths

    COLAS: order book Million euros End-2004 End-2005 Change Metropolitan France 2,080 2,420 + 16% International and French 1,867 2,242 + 20% overseas territories TOTAL 3,947 4,662 + 18% Record increase in order book 2525 COLAS: strengths „ Material reserves : 9 560 quarries and gravel pits 9 Presence i

  15. Slide 15: Colas: developments in Central Europe

    COLAS: developments in Central Europe „ 1989: the group began search for companies to acquire „ Strong growth in sales, due to: Poland 9 steady development in 15 years of a network Czech of local firms having a broad range of activities Republic Slovakia 9 infrastructure renewal investment in these

  16. Slide 16: Colas: non cyclical business, strategy and prospects

    COLAS: a non cyclical business French GAAP IFRS 10 000 9,540 9 000 Sales 8 000 % : 11.8 rowth 7 000 ual g e ann 6 000 €m 5 000 A verag 4 000 3 000 2 000 1 000 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2005 350 307 300 Net profit 15.8% owth: ual gr 250 g e ann Avera 200 €m 150 100 50 0 1986

  17. Slide 17: TF1: profile and key figures

    TF1: profile of the French leader „ The leading channel in France TF1 channel Other 9 35% of audience share * advertising activities • TF1 channel: 32% • Thematic channels: 3% 34% 66% 9 54,4% of the advertising market share * „ A successful diversification 2005 revenue breakdown (excluding TPS) 9 Th

  18. Slide 18: TF1: Bouygues Telecom licence, strategy and outlook

    TF1: licence agreement with Bouygues Telecom „ A natural partnership between 9 a telecoms operator recognised for its innovative capacity 9 and a major content provider for mobile telephony „ An innovative and attractive voice and data offer „ An original market positioning „ Launched in May 2006 33

  19. Slide 19: Bouygues Telecom: ownership and key figures

    BOUYGUES TELECOM: share ownership structure „ Agreement with BNP Paribas 9 In June 2005, Bouygues entered into a put-and-call agreement with BNP Paribas on its 6.5% stake in Bouygues Telecom. 9 Booked at 30 June 2005, the agreement generated an additional €460 million of debt for Bouygues at end-Dec

  20. Slide 20: Bouygues Telecom: financial structure and market share

    BOUYGUES TELECOM: financial structure Million euros - IFRS 2004 2005 Change Shareholders’ equity 1,783 2,132 + 20% Net debt 1,197 441 div. by 3 o/w shareholder loans 614 0 ns Debt-to-equity ratio 67% 21% - 46 pts Cash flow 1,159 1,261 (2) + 9% - Cost of net financial debt - 62 -26 - 58% - Income tax

  21. Slide 21: Bouygues Telecom: customer breakdown and commercial performance

    BOUYGUES TELECOM: customer breakdown at 31 December 2005 (Metropolitan France and French overseas territories) „ Customer mix Prepaid Contract 31.6% 68.4% 38.2% 61.8% 36.7% 63.3% „ Increase in Bouygues Telecom’s share of contract customers 68.4% 66.1% 64.4% + 2.3 pts 62% 2002 2003 2004 2005 The best

  22. Slide 22: Bouygues Telecom: competitive environment

    BOUYGUES TELECOM: competitive environment (1/2) „ Arrival of MVNOs on the French market 9 Expected to make the market more fluid, MVNOs accounted for less than 1% of the market at end-2005 9 Trends: ¾ Emergence of brand licences ¾ Low-cost MVNOs ¾ Intense competition to capture youth market „ Bouygu

  23. Slide 23: NEO unlimited double play; regulatory environment

    NEO: unlimited double play by Bouygues Telecom Unlimited Unlimited Voice Internet „ Voice 9 Unlimited calls to ALL French fixed and mobile operators as of 8pm 9 Calls to all European and North American fixed and mobile operators at the French rate „ Internet 9 Unlimited surf with i-mode 9 Free and u

  24. Slide 24: Bouygues Telecom: 2006 sales target and technologies

    BOUYGUES TELECOM: sales target for 2006 Change Change Million euros - IFRS 2004 (1) 2005 2006 2005/2004 (1) 2006/2005 Revenues from outgoing traffic 2,939 3,212 + 9% 3,449 + 7% Revenues from incoming traffic 1,153 1,028 - 11 % 831 - 19% Net sales from network 4,092 4,240 + 4% (2) 4,280 + 1% Total sa

  25. Slide 25: Bouygues Telecom: broadband services

    BOUYGUES TELECOM: launch of broadband services in 2005 „ November 2002: launch of i-mode services (1.5m active and paying customers today) „ May 2005: Broadband services for corporates „ October 2005: Broadband services for the mass market with i-mode 9 With a national coverage (90 % of the French p

  26. Slide 26: i-mode broadband and mobile TV

    BOUYGUES TELECOM: broadband i-mode, a real break, comparable to ADSL Æ i-mode provides services and applications that are: 9 simple, useful and easy to use 9 and which prove handy on a daily basis. Æ Access to a wider universe of brands : 4949 NEW FUNCTIONALITIES: mobile TV „ Telecoms networks are n

  27. Slide 27: Contactless applications

    NEW FUNCTIONALITIES: contactless applications (1/3) „ Tomorrow’s services 5151 NEW FUNCTIONALITIES: contactless applications (2/3) „ Implementation stages for Bouygues Telecom 9 Develop transport applications in the short term: ¾ Give customers services with noticeable advantages in everyday use ¾ E

  28. Slide 28: Contactless in Japan; Bouygues Telecom strategy

    CONTACTLESS APPLICATIONS: (3/3) NTT DoCoMo model in Japan „ Results since launch in July 2004 9 Sony technology: Felica 9 12 compatible handsets and 7 million customers 9 25,000 stores and 6,000 cash points equipped with readers „ Usage is developing 9 2 million users (especially working people in t

  29. Slide 29: Group 2006 sales targets

    „ THE BOUYGUES GROUP page 2 „ THE BUSINESSES page 6 „ GROUP OUTLOOK page 28 „ THE BOUYGUES - ALSTOM DEAL page 30 „ APPENDIX 1: FINANCIAL DATA page 36 „ APPENDIX 2: BUSINESS DRIVERS page 43 5555 BOUYGUES: 2006 sales targets 2006 Million euros (IFRS) 2005 Change target Bouygues Construction 5,815 6,10

  30. Slide 30: Bouygues: strengths, outlook and ambitions

    BOUYGUES: strengths and outlook „ Thanks to genuine strengths… 9 businesses with strong positions on buoyant markets 9 complementary business activities and good visibility 9 a strong, entrepreneurial corporate culture „ …the outlook for Bouygues is favourable 9 increase in sales and profitability 9

  31. Slide 31: ALSTOM & Bouygues: a common vision

    „ THE BOUYGUES GROUP page 2 „ THE BUSINESSES page 6 „ GROUP OUTLOOK page 28 „ THE BOUYGUES - ALSTOM DEAL page 30 „ APPENDIX 1: FINANCIAL DATA page 36 „ APPENDIX 2: BUSINESS DRIVERS page 43 5959 ALSTOM & BOUYGUES: a common vision „ The world power and transport infrastructure market is growing rapidl

  32. Slide 32: ALSTOM-Bouygues partnership

    THE ALSTOM - BOUYGUES PARTNERSHIP: 3 issues „ Commercial and operational cooperation framework agreement between ALSTOM and Bouygues „ Project to create a 50-50 joint venture in hydro power „ Sale by the French state of its 21.03% stake in ALSTOM to Bouygues (1) (1) Subject to 2 conditions precedent

  33. Slide 33: Hydro power joint company and stake acquisition

    THE ALSTOM - BOUYGUES PARTNERSHIP (2/3): a joint company in hydro power market „ Project to create a joint company in hydro power 9 Acquisition by Bouygues of a 50% stake 9 Potential synergies between civil engineering and hydro power equipment 9 Joint company complying with ALSTOM’s commitment to t

  34. Slide 34: Impact on financial position and benefits

    IMPACT ON BOUYGUES’ FINANCIAL POSITION Impact of transaction Bouygues figures in 2006 Positive Net profit attributable to the Group (financial costs after tax lower than the share of ALSTOM’s net profit) Net debt + €2 billion „ Standard & Poor’s confirmed its A- rating for Bouygues after the deal „

  35. Slide 35: ALSTOM: key figures and business portfolio

    ALSTOM: key figures „ 2004/2005 sales: €11.5 billion (1) „ 2005/2006 operating margin target: > 5% „ World no.3 „ Positive free cash flow in September 2005 in power generation „ Net profit of over €150 million (2) „ Debt-to-equity ratio: 68% at end September 2005 „ Backlog: €25.8 (1) billion at end

  36. Slide 36: ALSTOM: share ownership and recovery

    ALSTOM: share ownership structure at 30 September 2005 French state 21% Institutional investors 57% Individual shareholders 21% Employees 1% • 138 million shares 6969 ALSTOM: recovery completed „ Recovery programme undertaken in 2003 now completed 9 Refocus group activities on Transport and Power Ge

  37. Slide 37: Condensed consolidated income statement

    „ THE BOUYGUES GROUP page 2 „ THE BUSINESSES page 6 „ GROUP OUTLOOK page 28 „ THE BOUYGUES - ALSTOM DEAL page 30 „ APPENDIX 1: FINANCIAL DATA page 36 „ APPENDIX 2: BUSINESS DRIVERS page 43 7171 BOUYGUES: condensed consolidated income statement Million euros - IFRS 2004 2005 Variation Sales 20,894 24

  38. Slide 38: Contribution of business areas to sales and EBITDA

    Contribution of business areas to Group sales Million euros - IFRS 2004 2005 Change Bouygues Construction 5,227 5,815 + 11% 2005 revenue breakdown by business area : Bouygues Immobilier 1,295 1,557 + 20% 19% 1% 24% Colas 7,947 9,424 + 19% TF1 (1) 2,483 2,489 = 10% 6% Bouygues Telecom 3,649 4,525 + 3

  39. Slide 39: Contribution to operating profit and net profit

    Contribution of business areas to Group operating profit Million euros - IFRS 2004 2005 Change Bouygues Construction 168 238 + 42% 2005 op. profit breakdown by business area : Bouygues Immobilier 119 156 + 31% Colas 310 389 + 25% 1% 14% 34% 9% TF1 (1) 381 353 - 7% Bouygues Telecom 597 598 = 22% 20%

  40. Slide 40: Return on capital employed and cash flow

    BOUYGUES: return on capital employed (1) 2003 2004 2005 At business level French GAAP IFRS IFRS Bouygues Construction (2) +++ +++ +++ Bouygues Immobilier (3) +++ +++ +++ Colas 22.8% 26.8% 34.6% TF1 16% 17.9% 15.5% Bouygues Telecom 8.5% 12.3% 15.4% At Group level Bouygues 8.6% 12.7% 16.5% (1) Current

  41. Slide 41: Net investments and free cash flow by business area

    Contribution of business areas to Group net investments „ Net operating investments Million euros - IFRS 2004 2005 Change Bouygues Construction 73 56 - 23% 2005 net investments breakdown by business area : Bouygues Immobilier 4 4 = 5% Colas 348 411 + 18% 2% 0,3% TF1 (1) 79 155 + 96% 33% 47% Bouygues

  42. Slide 42: Condensed consolidated balance sheet and cash position

    BOUYGUES: condensed consolidated balance sheet Million euros - IFRS End-2004 End-2005 Non-current assets 11,481 11,444 Current assets 12,467 12,590 Held-for-sale assets / 564 TOTAL ASSETS 23,948 24,598 Shareholders’ equity 4,978 5,561 Non-current liabilities 5,982 6,075 Current liabilities 12,988 12

  43. Slide 43: Net cash by business area and financing policy

    BOUYGUES: net cash by business area Change Million euros - IFRS End- 2004 End-2005 (€m) Bouygues Construction 1,523 1,874 + 351 Bouygues Immobilier 249 150 - 99 Colas 423 415 -8 TF1 (409) (351) (1) + 58 Bouygues Telecom (1,197) (441) + 756 Holding and other (2,464) (3,999) - 1,535 TOTAL (1,875) (2,3

  44. Slide 44: Employee share ownership

    „ THE BOUYGUES GROUP page 2 „ THE BUSINESSES page 6 „ GROUP OUTLOOK page 28 „ THE BOUYGUES - ALSTOM DEAL page 30 „ APPENDIX 1: FINANCIAL DATA page 36 „ APPENDIX 2: BUSINESS DRIVERS page 43 8585 BOUYGUES GROUP: employee share ownership „ Success of Bouygues Confiance 3, a new capital increase reserve

  45. Slide 45: Major public-private contracts won since 2002

    MAJOR PUBLIC-PRIVATE CONTRACTS won by Bouygues Construction since January 2002 (1/2) Project Project Description total amount „ Delivered Home Office / PFI New UK Home Office £300m / €440m A28 / Concession 125 km motorway section between Rouen and Alençon (France) €920m IEC / Design, construction, 1

  46. Slide 46: Colas Central Europe strategy; TF1 audience share

    COLAS: strategy in Central Europe „ External growth: acquisition of 25 companies 9 Privatisation of many companies 9 Selection criteria: ¾ Country’s development potential ¾ Legal framework ¾ Cultural understanding ¾ Quality of local management teams „ Internal development 9 Extremely quick moderniza

  47. Slide 47: TF1 advertising breakdown; pay-TV agreement

    TF1: advertising - sectorial breakdown in 2005 Change vs. FY 2004 FOOD Weight = 26.2% - 9.0% COSMETICS 14.4% + 0.9% PUBLISHING 10.3% - 7.2% AUTOMOTIVE 8.9% + 4.2% TELECOMMUNICATION 7.5% + 25.9% HOUSE CLEANING 5.5% + 1.4% SERVICES 5.4% + 3.6% CULTURE & LEISURE 3.5% + 2.3% Source : TNS Secodip – gross

  48. Slide 48: Pay-TV agreement; Eurosport key figures

    Pay-TV agreement (2/2) „ The merger is the result of unexpectedly fast developments in the audiovisual environment, with five trends threatening the balance of the French market: 9 the rapid advances in digital delivery technology and fast take-up by consumers of ADSL, DTT, mobile TV, etc. 9 the dev

  49. Slide 49: Agreement with BNP Paribas; Bouygues Telecom licences

    BOUYGUES: agreement with BNP Paribas in June 2005 „ The BNP Paribas group wished to make its 6.5% stake in Bouygues Telecom liquid. „ Bouygues granted BNP Paribas an option to sell 6.5% of Bouygues Telecom, exercisable from September 2005 to July 2007, at a price of €477 million to €495 million (€47

  50. Slide 50: Regulatory environment; i-mode Alliance

    BOUYGUES TELECOM: regulatory environment „ Regulatory decisions in 2005 9 20% cut in the wholesale price of text messages ¾ Decided in November 2005 with retroactive effect from 1 July 2005, without any differential between the operators ¾ Impact of approx. €10m on Bouygues Telecom’s sales ¾ No impa

  51. Slide 51: Share ownership structure and financial calendar

    BOUYGUES: share ownership structure at 15 February 2006 „ Capital (337,150,519 shares) „ Voting rights (423,787,714 voting rights) Foreign Foreign shareholders SCDM SCDM shareholders 18.5% Groupe 28.3% 25.6% 35.5% Artémis 7.3% (F. Pinault) Groupe 6.6% Artémis 13.3% 22.0% 17.5% (F. Pinault) 25.4% Emp

  52. Slide 52: Bouygues share details and contact

    BOUYGUES SHARE DETAILS „ Listed on the Eurolist of Euronext – compartment A „ ISIN Code : FR0000120503 „ Bloomberg code : EN FP „ Reuters code : BOUY.PA „ Indexes : CAC 40, Euronext 100, FTSE Eurofirst 80, DJ STOXX 600 „ Sector classification : 9 MSCI / S&P: Telecommunication Services 9 FTSE / Dow J

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