Bouygues Sa · EURONEXT:EN
Bouygues Sa — Merger or Acquisition (November 2021)
17 slides from Bouygues Sa's merger presentation, Nov 9, 2021
Slide 1: Proposed Acquisition of Equans
PROPOSED ACQUISITION OF EQUANS 09 NOVEMBER 2021 PRESENTATION
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: The proposed acquisition of Equans is in line with the group development strategy
THE PROPOSED ACQUISITION OF EQUANS IS IN LINE WITH THE GROUP DEVELOPMENT STRATEGY Strengthen the positioning of the existing business segments Grow the portfolio of sustainable products and services to seize new business opportunities Enhance differentiation through innovation, quality and proximity
Slide 4: Three major transitions underpin the buoyant multi-technical services market
THREE MAJOR TRANSITIONS UNDERPIN THE BUOYANT MULTI-TECHNICAL SERVICES MARKET GLOBAL MARKET TRENDS 3 MAJOR TRANSITIONS Shift of the energy mix towards renewable and decentralized energies Energy 32% share of electricity in EU energy transition demand in 2050 vs. 21% in 2020 Transformation of the ener
Slide 5: Multi-technical services provide a resilient business model
MULTI-TECHNICAL SERVICES PROVIDE A RESILIENT BUSINESS MODEL A RESILIENT MARKET AN ASSET-LIGHT ACTIVITY A CASH GENERATING BUSINESS >70% of revenues generated by recurring clientsa for key players <€50k <2% Strong EBITDA-to-cash conversion rate for key multi- CAPEX ratio on revenues for technical play
Slide 6: An attractive opportunity to accelerate Bouygues' development in multi-technical services
AN ATTRACTIVE OPPORTUNITY TO ACCELERATE BOUYGUES’ DEVELOPMENT IN MULTI-TECHNICAL SERVICES ⚫ A UNIQUE OPPORTUNITY ◼ To create a France-based global player in a strategic sector with strong development opportunities ◼ To build the Group's first business segment strengthening the resilience of its busi
Slide 7: Equans overview
EQUANS OVERVIEW MAIN BUSINESSES Mechanical engineering & Digital systems & telecom Electrical engineering HVAC & refrigeration Facility Management robotics networks ▪ Installation/renovation/ ▪ Installation/maintenance of ▪ Plumbing/pipework ▪ Data and communication ▪ Installation/management of main
Slide 8: A world leader in multi-technical services with €16 billion in revenue
A WORLD LEADER IN MULTI-TECHNICAL SERVICES WITH €16 BILLION IN REVENUE Ranking based on 2020 revenue of European players (in €bn) 19.4a 15.8b 11.7 6.5 4.1 4.1b 3.5 2.2 2.1 2.0 1.0 0.9 Equans + Bouygues Energies & Services Building on Bouygues Group's long-standing international experience, the combi
Slide 9: Complementary geographic presence
COMPLEMENTARY GEOGRAPHIC PRESENCE ⚫ A BROADER GLOBAL FOOTPRINT ⚫ A DENSIFIED LOCAL NETWORK IN FRANCE AND SWITZERLAND ENABLING ◼ Presence in more than 20 countries ◼ Close proximity to all customers ◼ A limited overlap ◼ In-depth knowledge and privileged access to local markets ◼ Strong responsivenes
Slide 10: The combination will benefit both Equans and Bouygues Energies & Services customers
THE COMBINATION WILL BENEFIT BOTH EQUANS AND BOUYGUES ENERGIES & SERVICES CUSTOMERS GEOGRAPHIC STRENTHENED ACCELERATED COMPLEMENTARITY PORTFOLIO & INNOVATION EXPERTISE CAPABILITIES ◼ A world leader in multi-technical services, ◼ A broad portfolio of public and private, ◼ Know-how and cutting-edge so
Slide 11: The combined entity creates new opportunities for its employees
THE COMBINED ENTITY CREATES NEW OPPORTUNITIES FOR ITS EMPLOYEES ◼ ~96,000 employees, united by common values and constantly striving to offer customers the highest quality in service and innovation, setting a sound base for a successful combination ◼ Bringing together the expertise of Equans and Bou
Slide 12: Combination offers the potential of recurring synergies
THE COMBINATION OF BOUYGUES ENERGIES & SERVICES AND EQUANS OFFERS THE POTENTIAL OF RECURRING SYNERGIES ⚫ BREAKDOWN OF SYNERGIES ~40% Procurement Others ~60% Potential synergiesa between €120-200mb 1 under normal operating conditions Cumulative one-off implementation costs 2 ⚫ MAIN LEVERS of around €
Slide 13: A clear value creation over the long term
A CLEAR VALUE CREATION OVER THE LONG TERM TARGET FOR THE COMBINED ENTITY: MID-TERM CURRENT OPERATING MARGIN > 5% Short term objectives Medium term objectives 1 Successful integration and profitability increase 2 Growth and additional value creation Achieve combination, activate synergies and execute
Slide 14: Acquisition price and financing
ACQUISITION PRICE AND FINANCING ⚫ PRICE In €bn 7.1 6.7 -0.4 ◼ Enterprise value of €6.7bn ◼ Enterprise value/2026 current operating profit: 11.4x, considering the expected synergies and strong growth over the coming years ◼ Deal significantly accretive for Bouygues group EPS Equans’ Enterprise IFRS 1
Slide 15: Next stages and indicative timetable
NEXT STAGES AND INDICATIVE TIMETABLE ⚫ THE DEAL HAS ALREADY BEEN APPROVED UNANIMOUSLY BY THE RELEVANT EMPLOYEE REPRESENTATIVE BODIES WITHIN THE BOUYGUES GROUP ⚫ CONSULTATION OF THE EMPLOYEE REPRESENTATIVE BODIES AT ENGIE AND EQUANS TO BE CONDUCTED IN ACCORDANCE WITH THE LEGISLATION IN FORCE ⚫ COMPLE
Slide 16: Conclusion
CONCLUSION ⚫ A UNIQUE OPPORTUNITY TO BOOST BOUYGUES AS A GLOBAL LEADER IN MULTI-TECHNICAL SERVICES ◼ Creation of a France-based global player in a strategic sector at the convergence between the energy, digital and industrial transitions with strong development opportunities ⚫ STRENGTHENING THE RESI
Slide 17: fe reality vy
— A fe reality vy i.