Bouygues Sa · EURONEXT:EN
Bouygues Sa — FY2013 Earnings Presentation
71 slides from Bouygues Sa's earnings presentation, Feb 26, 2014
Slide 1: Full-year 2013 results presentation
Full-year 2013 results presentation Paris – 32 Hoche 26 February 2014 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
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: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 3
Slide 4: Highlights of 2013
Highlights of 2013 The Group confirmed its competitiveness and its innovation capacity to the benefit of customers Excellent commercial activity in the construction businesses Successful launch of 4G in October 2013, taken up by close to 10% of Bouygues Telecom's customers Leadership of the
Slide 5: Group key figures (1/2)
Group key figures (1/2) €m 2012 2013 Change Sales 33,547 33,345 -1%1 Current operating profit 1,286 1,344 +5% Current operating margin 3.8% 4.0% +0.2 pts Operating profit 1,120(2) 1,253(3) +12% Net profit attributable to the Group before the write-down of Alstom 633 647 +2% Sales and current opera
Slide 6: Group key figures (2/2)
Group key figures (2/2) Current operating profit Change vs Change vs Change vs Change vs Change vs €m Q1 2013 2012 Q2 2013 2012 Q3 2013 2012 Q4 2013 2012 2013 2012 Construction (79) -€7m 289 +€5m 445 +€38m 375 +€45m 1,030 +€81m businesses TF1 (16) -€72m 87 +€9m 33 +€13m 119 +€15m 223 -€35m Bouygues
Slide 7: Group free cash flow
Group free cash flow €m 2012 2013 Change Free cash flow1 724(2) 821(3) +€97m o/w construction businesses 812 821 +€9m o/w TF1 161 149 -€12m o/w Bouygues Telecom -89(2) 24(3) +€113m Free cash flow maintained at a high level in the construction businesses and at TF1 Improvement in free cash flow a
Slide 8: Group financial position
Group financial position €m End-2012 End-2013 Change Shareholders' equity 10,078 8,684 -€1,394m Net debt 4,172 4,427 +€255m Net gearing 41% 51% +10 pts Decline in shareholders' equity resulting from the write-down against Bouygues' investment in Alstom Tight control of net debt Net debt has ye
Slide 9: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 9
Slide 10: Construction businesses
Construction businesses Bouygues ea Bel Mele 10
Slide 11: Excellent commercial performance by the construction businesses
Excellent commercial performance by the construction businesses Order books: €27.5bn, up 3% year-on-year and up 22% since end-2010 Order books (€m) The excellent commercial performance of the construction Bouygues Construction Bouygues Immobilier businesses demonstrates their strong competitive
Slide 12: Transport infrastructure: major road construction projects
Transport infrastructure: major road construction projects L2 bypass PPP in New Coastal Road on Marseille, France Reunion Island, France Construction of the longest off-shore viaduct The largest infrastructure project awarded in France (5.4 km) in France in 2013 Contract worth €218m for Bouygu
Slide 13: Transport infrastructure: airports
Transport infrastructure: airports Iqaluit International Airport, Lyon-Saint Exupéry Airport, Zagreb Airport, Canada France Croatia Financing, design and Design and construction of a Financing, design and construction of a new terminal new terminal construction of a new terminal Works valued
Slide 14: Transport infrastructure: railways
Transport infrastructure: railways Colas Rail: sales of €767m (up 19% vs 2012) and order book of €1.3bn at end-December 2013 (up 14% year-on-year) Design and construction of the first high-speed rail line between Tangier and Kenitra in Morocco for €124m1 Duration of the works: 42 months. Due t
Slide 15: Main international contracts won in 2013
Main international contracts won in 2013 Group share – rounded up/down 50% of the order books at Bouygues Construction and Colas is to be executed in international markets Canada UK Switzerland University campus in Hertfordshire (€140m) Erlenmatt eco-neighbourhood in Basel (€130m) Iqaluit Airport (€
Slide 16: International success: the example of Hong Kong
International success: the example of Hong Kong Strong and long-lasting presence of Bouygues Construction in Hong Kong Recognised know-how and value-added in complex projects Buildings, tunnels, bridges, railway lines, post-tensioning for engineering structures, land reclamation Sales increa
Slide 17: Business activity at Bouygues Construction
Business activity at Bouygues Construction Excellent level of order intake: €11.8bn International growth offset the decline in France following the gains of very large-scale projects launched by the government in 2011 and 2012 Record order book of €17.8bn at end-December 2013, up 4% vs end-Dec
Slide 18: Business activity at Bouygues Immobilier
Business activity at Bouygues Immobilier Reservations1 (€m) Market share gains in a residential property market in crisis Commercial property Residential property reservations grew 9% to €1.8bn in 2013 Residential property 62 unsold completed homes at end-2013, equivalent to two days of market
Slide 19: Business activity at Colas
Business activity at Colas Order book at a high level of €7.1bn, up 6% year-on-year Order book (€m) International and Mainland France Strong momentum in international markets French overseas territories +6% The order book to be executed in international markets has 7,088 6,472 6,704 increased
Slide 20: Financial results of the construction businesses (1/2)
Financial results of the construction businesses (1/2) €m 2012 2013 Change Sales 25,753 26,275 +2%1 Current operating profit 949 1,030 +9% Current operating margin 3.7% 3.9% +0.2 pts Net profit attributable to the Group 665 679 +2% Free cash flow 812 821 +1% (1) Up 2% like-for-like and at constant e
Slide 21: Financial results of the construction businesses (2/2)
Financial results of the construction businesses (2/2) €m 2012 2013 Change 2012 2013 Change Current operating profit Current operating margin Construction businesses 949 1,030 +9% 3.7% 3.9% +0.2 pts o/w Bouygues Construction 364 435 +20% 3.4% 3.9% +0.5 pts o/w Bouygues Immobilier 179 178 -1% 7.5% 7.
Slide 22: Key figures at Bouygues Construction
Annex Key figures at Bouygues Construction Order intake1 (€m) Order book at end-December 2013 (€m) -1% Long-term order book (beyond Y+5) 11,976 11,839 10,946 For execution in Y+2 to Y+5 For execution in Y+1 4,777 17,832 +4% International 4,108 6,133 17,147 France 15,283 2,742 2,702 2,410 5,959 6,203
Slide 23: Key figures at Bouygues Immobilier
Annex Key figures at Bouygues Immobilier Reservations1 (€m) Order book (€m) 3,200 Commercial property 3,051 2,957 -12% Residential property 2,280 313 2,610 2,477 781 -8% 600 2,268 2,080 64 427 1,955 167 152 581 236 2,738 2,357 2,310 2,419 2,216 2,183 1,803 1,687 1,844 End-Dec End-Dec End-Dec End-Dec
Slide 24: Key figures at Colas
Annex Key figures at Colas Order book (€m) International and French overseas territories Mainland France €m 2012 2013 Change 7,856 7,570 +6% Sales 13,036 13,049 =1 7,531 7,254 7,006 7,094 7,088 o/w France 7,363 7,432 +1% 6,704 o/w international 5,673 5,617 -1% 3,537 3,835 3,629 Current operating pro
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Slide 26: 2013 overview at TF1
2013 overview at TF1 TF1 group became the leading television group in France in 2013 thanks to the renewal of its programming schedule in a highly competitive context Audience share1 of 28.9% vs 28.4% in 2012 TF1 has demonstrated its ability to adapt in a market affected by strong pricing pres
Slide 27: Adaptation of the business model at TF1
Adaptation of the business model at TF1 PROGRAMMING OPTIMISATION PRODUCTIVITY OVERHEADS Stepping-up of phase II of the optimisation plan €56m of recurring savings generated since 2012 (o/w €41m in 2013) out of €85m planned by end-2014 Operating charges cut by €115m in total in 2013 thanks to a
Slide 28: Key figures at TF1
Annex Key figures at TF1 Group audience share1 28.4 28.9 2.1 0.6 2.1 TF1 scored 99 of the top 100 TV audience ratings2 in 2013 3.6 3.4 HD1 (all channels) NT1 HD1 is leader amongst the six new DTT channels launched TMC at end-2012 22.7 22.8 TF1 (1) Source: Médiamétrie, individuals aged 4 and over
Slide 29: Bouygues Telecom
Bouygues o
Slide 30: 2013 strategic priorities accomplished
2013 strategic priorities accomplished In keeping with 2012, Bouygues Telecom accomplished its two strategic priorities 1. Overhaul of the business model Continued optimisation of Refocusing on own distribution channels distribution channels Breakthrough in the marketing of Exclusive from Bouygues
Slide 31: SFR network sharing agreement
SFR network sharing agreement Aims To significantly improve geographical coverage and network quality to provide the best services to customers To provide a solution to the unlevel competitive playing field in sparsely-populated areas created by the roaming agreement which gives Free Mobile ac
Slide 32: A successful 4G launch
A successful 4G launch Positive impact on Bouygues Telecom's image 4G penetration rate in The brand's appeal has improved subscriber base in Europe2 Tracking1 of the Bouygues Telecom brand 50% Fastest mobile 40% Navigation la plus Internet browsing rapide sur internet thanks to 4G 30% en mobilit
Slide 33: 2013 financial performance at Bouygues Telecom
2013 financial performance at Bouygues Telecom Results in line with objectives Sales (€4.7bn, down 11% vs 2012) reflect the commercial performances of the first nine months, the fall in prices and the increasing share of SIM-only sales Almost stable EBITDA at €880m thanks to the transformation
Slide 34: Key figures at Bouygues Telecom
Annex Key figures at Bouygues Telecom €m 2012 2013 Change Sales 5,226 4,664 -11%1 Sales from network 4,631 4,182 -10% EBITDA 908 880 -€28m EBITDA/sales from network 19.6% 21.0% +1.4 pts Current operating profit 122 125 +€3m Operating profit 4(2) 45(3) +€41m Net profit/(loss)attributable to the Group
Slide 35: 2013 commercial performance at Bouygues Telecom
2013 commercial performance at Bouygues Telecom A mixed mobile performance in 2013... Improvement in net adds in Q4 2013 (+49,000 mobile customers), but which did not offset the decline in the first nine months Total subscriber base of 11,143,000, down 108,000 year-on-year Net adds of 482,000
Slide 36: Strategic priorities for 2014
Strategic priorities for 2014 Context Intense price competition and a war of words surrounding 4G since the end of 2013… …which is limiting the value creation potential and accentuating the on-going repricing within the customer base The under €10-plan segment continues growing to the detrim
Slide 37: Develop data use (1/2)
Develop data use (1/2) Continue to widen access to 4G Enhance nationwide network coverage and optimise network quality Provide very affordable handsets A range of more than 50 4G handsets is currently available New 4G handsets for less than €150. The aim is to offer one for under €100 by e
Slide 38: Develop data use (2/2)
Develop data use (2/2) Share of customers on plans with 1GB of data or more: up 15% in only three months in Q4 2013 More than 50% of B&YOU customers subscribe to plans ≥ €19.99 An increase in data use as soon 4G is switched on Average TV consumption (MB/DAY/CUSTOMER) October 2013 Average GB co
Slide 39: Develop data use
Annex Develop data use 4G allows intensive data use… ...making new uses possible Share of customers Share of customers who using music use the tethering function Mobile shopping streaming services1 frequently1 Very-high-speed mobile Internet HD video streaming Video games in real time TV on tabl
Slide 40: Launch multiple breakthroughs in the fixed segment
Launch multiple breakthroughs in the fixed segment Bouygues Telecom is continuing its initiatives to make Internet in the home accessible to as many people as possible A plan in several stages November 2013: launch of la Box Internet (2P1 offer) for €15.99/month H2 2014: launch of a new offe
Slide 41: Mobile business performance at Bouygues Telecom
Annex Mobile business performance at Bouygues Telecom End-Dec End-March End-June End-Sept End-Dec ‘000 2012 2013 2013 2013 2013 Mobile customer base 11,251 11,271 11,286 11,094 11,143 o/w plan subscribers 9,428 9,618 9,802 9,760 9,910 o/w prepaid customers 1,823 1,653 1,484 1,334 1,233 Net plan subs
Slide 42: Fixed broadband business performance at Bouygues Telecom
Annex Fixed broadband business performance at Bouygues Telecom Net adds in the fixed broadband business2 (‘000) 359(3) Fixed broadband subscriber base of 2 million at end-2013 Net adds of 167,000 customers year-on-year 88 70 88 72 45 Strong growth posted by very-high-speed broadband1 10 40 Q1
Slide 43: Key indicators at Bouygues Telecom
Annex Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base Q3 2013 Q4 2013 Q3 2013 Q4 2013 Q3 2013 Q4 2013 Subscribers SIM cards (‘000) 9,760 9,910 1,334 1,233 11,094 11,143 SIM cards (% mix) 88.0% 88.9% 12.0% 11.1% Fixed broadband subscriber base1 (‘000) 1,941 2,013 Unit data – mob
Slide 44: Mobile termination rates
Annex Mobile termination rates Text termination Voice termination rates rates € cents/minute for voice At 1 At 1 At 1 At 1 At 1 At 1 At 1 € cents/text January July January July January July July 2012 2012 2013 2013 2014 2011 2012 Rates to 1.50 1.00 0.80 0.80 1.50 1.00 Bouygues Telecom % change -25%
Slide 45: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 45
Slide 46: Alstom
ALSTOM When publishing Q3 orders and sales for its FY2013/14, Alstom announced that lower- than-expected orders in Thermal Power would weigh on its outlook Low single-digit organic sales growth and an operating margin of around 7% in FY2013/14 with moderately negative free cash flow in H2 Slig
Slide 47: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 47
Slide 48: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) €m 2012 2013 Change Sales 33,547 33,345 -1% Current operating profit 1,286 1,344 +5% Other operating income and expenses (166)1 (91)2 nm Operating profit 1,120 1,253 +12% Cost of net debt (290) (309) +7% o/w financial income 62 55 -11% o/w financial expe
Slide 49: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) €m 2012 2013 Change Income tax expense (330) (367) +11% Associates 217(1) 205(2) -6% Net profit from continuing operations 728 756 +4% Net profit attributable to non-controlling interests3 (95) (109) +15% Net profit attributable to the Group 633 647 +2%
Slide 50: Sales by business area
Annex Sales by business area €m 2012 2013 Change Bouygues Construction 10,640 11,111 +4% Bouygues Immobilier 2,396 2,510 +5% Colas 13,036 13,049 = Sub-total of construction businesses1 25,753 26,275 +2% TF1 2,621 2,470 -6% Bouygues Telecom 5,226 4,664 -11% Holding company and other 123 119 nm Intra-
Slide 51: Contribution of business areas to Group EBITDA
Annex Contribution of business areas to Group EBITDA €m 2012 2013 Change Bouygues Construction 614 668 +€54m Bouygues Immobilier 186 191 +€5m Colas 832 823 -€9m TF1 318 300 -€18m Bouygues Telecom 908 880 -€28m Holding company and other (36) (27) +€9m TOTAL 2,822 2,835 +€13m EBITDA = current operatin
Slide 52: Contribution of business areas to Group current operating profit
Annex Contribution of business areas to Group current operating profit €m 2012 2013 Change Bouygues Construction 364 435 +€71m Bouygues Immobilier 179 178 -€1m Colas 406 417 +€11m Sub-total of construction businesses 949 1,030 +€81m TF1 258 223 -€35m Bouygues Telecom 122 125 +€3m Holding company and
Slide 53: Contribution of business areas to Group net profit/(loss)
Annex Contribution of business areas to Group net profit/(loss) €m Attributable to the Group 2012 2013 Change Bouygues Construction 267 277 +€10m Bouygues Immobilier 107 101 -€6m Colas 291 301 +€10m Sub-total of construction businesses 665 679 +€14m TF1 59 60 +€1m Bouygues Telecom (14) 11 +€25m Alst
Slide 54: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec End-Dec €m Change 2012 2013 Non-current assets 20,170 17,684(1) -€2,486m Current assets 16,584 15,469 -€1,115m Held-for-sale assets and operations - 1,151(2) +€1,151m TOTAL ASSETS 36,754 34,304 -€2,450m Shareholders' equity 10,078 8,684(1) -€1,394m Non-cu
Slide 55: Change in net cash position in 2013 (1/2)
Change in net cash position in 2013 (1/2) Net cash at Net cash at 31/12/2012 €m 31/12/2013 (4,172) (4,360) (4,427) (3 872) Acquisitions/ Reclassification Dividends Issue & disposals1 4G frequencies of Eurosport paid buyback of Operation International4 -103 Bouygues -591 shares +610 -33(2) Exceptiona
Slide 56: Change in net cash position in 2013 (2/2)
Change in net cash position in 2013 (2/2) Breakdown of operation Net capital Net cash flow1 expenditure €m +2,066 -1,245(2) Change in operating WCR3 and other -211 +610(2) 2012 +2,157 -1,433(4) (2) -125 +599(4) (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Excluding capit
Slide 57: Contribution of business areas to Group net cash flow
Annex Contribution of business areas to Group net cash flow €m 2012 2013 Change Bouygues Construction 486 488 +€2m Bouygues Immobilier 120 120 = Colas 723 678 -€45m TF1 206 188 -€18m Bouygues Telecom 780 763 -€17m Holding company and other (158) (171) -€13m TOTAL 2,157 2,066 -€91m Net cash flow = ca
Slide 58: Contribution of business areas to Group net capital expenditure
Contribution of business areas to Group net capital expenditure €m 2012 2013 Change Bouygues Construction 159 159 = Bouygues Immobilier 13 10 -€3m Colas 345 296 -€49m TF1 45 39 -€6m Bouygues Telecom 869(1) 739(2) -€130m Holding company and other 2(1) 2(2) = Total excluding exceptional items 1,433(1)
Slide 59: Contribution of business areas to Group free cash flow
Annex Contribution of business areas to Group free cash flow €m 2012 2013 Change Bouygues Construction 327 329 +€2m Bouygues Immobilier 107 110 +€3m Colas 378 382 +€4m Sub-total of construction businesses 812 821 +€9m TF1 161 149 -€12m Bouygues Telecom (89)1 24(2) +€113m Holding company and other (1
Slide 60: Net cash by business area
Net cash by business area End-Dec End-Dec €m Change 2012 2013 Bouygues Construction 3,093 3,006 -€87m Bouygues Immobilier 358 271 -€87m Colas (170) 39 +€209m TF1 237 188(1) -€49m Bouygues Telecom (650) (783) -€133m Holding company and other (7,040) (7,148) -€108m TOTAL (4,172) (4,427) -€255m (1) Aft
Slide 61: Financing
Financing €m Available cash: €8.7bn 10,000 9,000 8,000 7,000 Debt maturity schedule at end-December 2013 Undrawn 6,000 MLT facilities 5,000 €5.5bn 4,000 3,000 2,000 Cash 1,000 €3.2bn 0 61
Slide 62: Changes in accounting methods for 2014
Changes in accounting methods for 2014 On 1 January 2014 application of IFRS 11 relating to accounting of joint arrangements Impact1 on the Group’s 2013 financial statements (mainly on Colas) Sales reduced by €224m Current operating profit reduced by €25m Neutral impact on net profit Aft
Slide 63: Impact of IFRS 11 on the Group's 2013 financial statements
Annex Impact of IFRS 11 on the Group's 2013 financial statements Restatement 2013 2013 €m Bouygues reported Colas TF1 restated Construction Sales 33,345 (10) (204) (10) 33,121 Current operating profit 1,344 2 (27) - 1,319 Operating profit 1,253 2 (27) - 1,228 Cost of net debt (309) - 5 - (304) Other
Slide 64: Impact of divestments on 2014 financial statements
Impact of divestments on 2014 financial statements At end-January 2014, Colas sold its 16.67% stake in Cofiroute Inflow of €780m, to be booked in Q1 2014 Financial impacts in 2014 at Bouygues group level Decrease in the share of profits and losses from associates (contribution of €50m in 201
Slide 65: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 65
Slide 66: Outlook (1/2)
Outlook (1/2) Group total sales1 in 2014 should be close to the 2013 level Outlook for the construction businesses The construction businesses enjoy major strengths Strong momentum in their international activities, offsetting a more challenging economic environment in France in 2014 Good
Slide 67: Outlook (2/2)
Outlook (2/2) Outlook for TF1 In a context of low visibility, the net television advertising market could contract in 2014 2014 will be marked by two exceptional events for TF1 The Football World Cup, which will weigh on profitability The probable divestment of Eurosport International TF
Slide 68: Conclusion (1/2)
Conclusion (1/2) Bouygues' Board of Directors proposes to maintain the dividend at €1.60(1) for 2013 given That full-year operating objectives have been achieved The sound financial situation That there is no impact from the write-down of Alstom on the Group's cash position and operating per
Slide 69: Conclusion (2/2)
Conclusion (2/2) The upheaval on the telecoms market is having a negative impact on Bouygues’ performances Nonetheless, the Group's fundamentals remain intact... It operates on long-term markets that meet essential needs High resilience of cash generation thanks to the diversity of the busin
Slide 70: Calendar
Annex Calendar 24 April 2014 2013 Annual General Meeting 3.30pm 5 May 2014 Dividend payment 15 May 2014 First-quarter 2014 sales and earnings 5.45pm 28 August 2014 First-half 2014 sales and earnings 7.30am 28 August 2014 First-half 2014 results presentation 11.00am 14 November 2014 Nine-
Slide 71: Building the future is our greatest adventure
71 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 71