Bouygues Sa · EURONEXT:EN
Bouygues Sa — FY2001 Earnings Presentation
58 slides from Bouygues Sa's earnings presentation, Mar 6, 2002
Slide 1: Group Bouygues 2001 Accounts 2002 Prospects
GROUP BOUYGUES 2001 ACCOUNTS 2002 PROSPECTS Paris 6 March 2002
Slide 2: Agenda
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 3: Highlights
HIGHLIGHTS n Further rise in earnings n Sound financial structure n Bouygues Telecom met its objectives n Bouygues is raising its stake in Bouygues Telecom n TF1 consolidated its leading position n Good commercial activity in the Construction sector n Increase of employee stock ownership n Extension
Slide 4: Key figures: further rise in earnings
KEY FIGURES 2001 Million euros 1999 2000 2001 2000 Sales 15,857 19,060 20,473 + 7% EBITDA 974 1,474 1,680 + 14% EBIT 484 812 876 + 8% Net earnings 45 215 * 344 + 60% attributable to the Group EPS in euros 0.16 0.67 1.03 + 54% Stockholders' equity 2,878 5,168 5,503 + 6% Net debt 2,201 967 1,124 + 16%
Slide 5: Sound financial structure
SOUND FINANCIAL STRUCTURE Debt ratios 80% Consolidated 76% Debt / Stockholders' equity 60% 52% Bouygues SA Debt / Stockholders' equity 40% 19% 20% 20% 10% Net debt 0% 4% = 0.7 1999 2000 2001 EBITDA The Bouygues group has a very low debt level
Slide 6: Bouygues Telecom: significant improvement in results
BOUYGUES TELECOM: significant improvement in results 2001 2000 n EBITDA (20% of airtime revenues) : €473m x 4.8 n Positive EBIT : €53m vs - €195m n Strong improvement in net results : - €61m vs - €277m Net results at breakeven point, excluding ü mobile multimedia : - €33m ü Caribbean : - €29m As ann
Slide 7: Bouygues is raising its stake in Bouygues Telecom
Bouygues is raising its stake in Bouygues Telecom n Bouygues acquired Telecom Italia's shares in BDT for €750m 79.1% * 21% BDT 20.9% 55% 6.5% 17.5% Bouygues is raising its direct and indirect stake from 53.7% to 64.5% * * unless JC Decaux International exercises its pre-emptive rights
Slide 8: TF1 consolidated its leading position
TF1 consolidated its leading position n Leading position as general-interest channel maintained in terms of audience share and advertising revenues n Development of television offering ü 100% of Eurosport (50% acquired in 2001 for €375m) ü 50% of TPS (25% acquired in December 2001 for €195m, payable
Slide 9: Construction sector: good commercial activity
CONSTRUCTION SECTOR: good commercial activity n Building/Civil Works: high level of orders and strong order book maintained n Bouygues Offshore: record backlog n Colas: sharp rise in sales and orders n Bouygues Immobilier: increase in housing and office reservations
Slide 10: Stock ownership structure
STOCK OWNERSHIP STRUCTURE Capital Voting rights At 31/12/2001 % % SCDM 15.2 21.9 Artémis 10.1 10.0 Bouygues group employees 9.7 13.0 Arnault Group * 5 -10 5 - 10 Mme F. Bouygues 1.5 2.5 CNCA 1.7 1.4 BNP Paribas 1.2 1.0 Crédit Lyonnais 0.2 0.2 Other 50 - 55 40 - 45 TOTAL 100 100 Extension of SCDM/Art
Slide 11: Stock market
STOCK MARKET n Stock market performance from 1 January 1999 to 100 1 March 2002 90 80 70 60 50 40 32.75€ 30 Bouygues 20 CAC 40 Nasdaq 10 0 jan-1999 jul-1999 jan-2000 jul-2000 jan-2001 jul-2001 jan-2002
Slide 12: Stock market
STOCK MARKET n Stock market performance from 1 January 1999 to 1 March 2002 100 Bouygues 90 Vodafone Vivendi 80 France Telecom 70 60 50 40 30 32.75€ 20 10 0 jan-1999 jul-1999 jan-2000 jul-2000 jan-2001 jul-2001 jan-2002
Slide 13: Agenda
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 14: Construction sector: five business areas
CONSTRUCTION SECTOR: five business areas n 2001 sales: €14,248m * (+ 7%) 6% Building/Civil Works 33% Energy contracting Electrical contracting Roads 7% 51% 3% Property * contribution to consolidated accounts
Slide 15: Construction sector: key figures
CONSTRUCTION SECTOR: key figures Share of Group 2001 Million euros 2001 * sales 2000 Sales 14,248 + 7% of which international 6,465 + 8% EBITDA 786 + 11% EBIT 413 + 4% 70% Net income 265 + 24% Net cash 1,102 2002 sales (e): 14,650 + 3% High profitability for a business sector with low capital intens
Slide 16: Construction sector: breakdown by geographical area
CONSTRUCTION SECTOR: breakdown by geographical area n 2001 sales: €14,248m * 8% France 13% Western Europe (excluding France) 6% Eastern Europe Asia 7% Americas 12% 54% Africa and other Well-balanced geographical breakdown of sales * contribution to consolidated accounts
Slide 17: Construction sector: net cash by business area
CONSTRUCTION SECTOR: net cash by business area Million euros 2000 2001 Building/Civil Works 872 831 Energy contracting 156 205 Electrical contracting 0 -1 Roads - 213 3 Property - 18 64 TOTAL 797 1,102 The construction sector is in a positive cash situation
Slide 18: Building/Civil Works: key figures
CONSTRUCTION SECTOR: Building/Civil Works n Key figures 2001 Million euros 2001 2000 Sales 4,890 + 3% of which international 2,437 + 3% Net income 20 - 55% Order book 4,742 + 3% Net cash 831 2002 sales (e) : 4,705 - 4% Sales remain strong Earnings adversely affected by a difficult project
Slide 19: Building/Civil Works: order book
CONSTRUCTION SECTOR: Building/Civil Works n Order book at 31/12 * At 31/12/2001 In €bn 10% 5 4.6 4.7 8% 4.2 9% 45% 4 3.4 3.3 28% 3 France Western Europe (excluding France) Eastern Europe 2 Asia 1997 1998 1999 2000 2001 Africa and other Ample and well-balanced order book * contracts signed with notic
Slide 20: Bouygues Offshore: key figures
CONSTRUCTION SECTOR: Bouygues Offshore n Key figures 2001 Million euros 2001 2000 Sales 1,028 - 3% of which international 848 + 1% Net income 46 +18% Order book 1,126 + 4% Net cash 205 2002 sales (e): 1,200 + 17% Strong growth in earnings
Slide 21: Colas: key figures
CONSTRUCTION SECTOR: Colas n Key figures 2001 Million euros 2001 2000 Sales 7,328 + 12% of which international 3,078 + 14% Net income 203 + 33% Order book 3,064 + 13% Net cash 3 2002 sales (e): 7,440 + 2% Continued excellent performance
Slide 22: Bouygues Immobilier: key figures
CONSTRUCTION SECTOR: Bouygues Immobilier n Key figures 2001 Million euros 2001 2000 Sales 940 + 2% Net income 31 + 48% Net cash 64 2002 sales (e): 1,150 + 22% Strong increase in profitability
Slide 23: Bouygues Immobilier: financial structure
CONSTRUCTION SECTOR: Bouygues Immobilier n Financial structure In €m 700 Net debt including finance leases 600 Stockholders' equity 500 400 300 200 100 0 -100 1997 1998 1999 2000 2001 Bouygues Immobilier is in a positive cash situation
Slide 24: SAUR: key figures
SAUR: key figures 2001 Share of Group Million euros 2001 sales 2000 12% Sales 2,494 + 4% of which France 1,607 + 4% of which international 887 + 3% EBITDA 198 - 10% EBIT 85 - 27% Net income 33 + 3% Net debt 676 2002 sales (e): 2,500 = Excluding changes in provision, EBITDA and EBIT would grow 16% an
Slide 25: SAUR: sales by geographic area
SAUR: sales by geographic area 2% 4% France 3% Africa 9% UK Italy Spain 18% Other 64% Total sales for 2001: €2,494m Substantial rise in sales in France
Slide 26: TF1: key figures
TF1: key figures 2001 2001 Share of Group Million euros 2001 sales 2000 1999 11% Sales 2,282 + 3% + 26% of which advertising 1,497 - 5% + 11% EBITDA 475 - 11% + 26% EBIT 376 - 11% + 29% Net income 210 - 16% + 33% Net debt 188 2002 sales (e): 2,580 + 13% Good results in a depressed market
Slide 27: TF1: leader in terms of audience
TF1: leader in terms of audience n 2001 Other channels 19.1% 35.5% 32.7% 13.5% 13.0% 21.1% 18.6% 17.1% Women < 50 Individuals 4 years and over January 2002: 38.4% January 2002: 33.5% La Cinquième Arte Canal +
Slide 28: TF1: programming costs
TF1: programming costs In €m 1992 595 1993 598 1994 634 1995 669 1996 699 1997 700 1998 715 1999 724 2000 741 +3.9% 2001 770 Annual average growth of 2.9% since 1992
Slide 29: TF1: advertising revenues
TF1: advertising revenues n 2001: slowdown after an exceptional year 2000 2001/2000: - 4.7% 2000/1999: + 16.2% In €m 1500 Channel's net advertising income 1300 1100 900 700 500 92 93 94 95 96 97 98 99 00 01 19 19 19 19 19 19 19 19 20 20 Average annual growth of 5.2% since 1992
Slide 30: TF1: Eurosport key figures
TF1: Eurosport key figures 2001 Million euros 2001 2000 Sales 297 + 23% EBIT 26 + 8% Net income 3 n.s. ü 93 million households ü 54 countries ü 18 languages The leading pan-European channel in terms of audience
Slide 31: TF1: Eurosport's broadcasting rights
TF1: Eurosport's broadcasting rights n Football: World Cup in France, European Cup, UEFA, CAN n Tennis: Roland Garros, Australian Open, US Open n Cycling: Tour de France, World Championship n Motor sports: "24H du Mans" racing, Grand Prix motorcycling n Winter and summer Olympics n Athletics: World
Slide 32: TF1: TPS key figures
TF1: TPS key figures (at 100%) 2001 Million euros 2001 2000 Sales 457 + 19% EBIT - 82 vs - 112 Net income - 99 vs - 122 ü 1.3 million subscribers at end 2001 ü More than 170 channels broadcast Improvement in results
Slide 33: Bouygues Telecom: key figures
BOUYGUES TELECOM: key figures Share of Group sales (contribution) 7% 2001 Million euros 2001 2000 Sales 2, 681 + 32% EBITDA 473 x 4.8 Net loss - 61 vs - 277 2002 sales (e) : 3, 085 + 15% Strong improvement in results
Slide 34: Bouygues Telecom: subscriber acquisition costs (SAC)
BOUYGUES TELECOM: subscriber acquisition costs (SAC) n Change in accounting methods: Subscriber acquisition costs (SAC) are now recorded as charges in the current year (and no longer amortized over 4 years and cancelled in case of termination) n Impact on 2001 consolidated accounts: ü Stockholders’
Slide 35: Bouygues Telecom: financial data
BOUYGUES TELECOM: financial data 2001 (1) Million d’euros 2000 2001 2002 (e) pro forma Sales 2, 037 2, 681 2, 681 3, 085 EBITDA 98 473 473 ä EBIT - 195 75 53 ä Net loss - 277 - 46 - 61 >0 Consolidated stockholder's 1, 799 1, 796 1, 340 equity Net debt 1, 455 1, 903 1, 903 Capital expenditure 1, 075
Slide 36: Bouygues Telecom: prepaid customer base
BOUYGUES TELECOM: prepaid customer base n Definition of active customers since June 2001 ü Active: • Prepaid customers who have made or received at least one chargeable call in the last 3 months ü Inactive: • Prepaid customers who have not made or received any chargeable calls in the last 3 months;
Slide 37: Bouygues Telecom: performance
BOUYGUES TELECOM: performance ART figures Million Bouygues Telecom customers Active Bouygues customers Telecom customers 35.9 8 French market 29.7 7.0 7 6.6 20.6 x 1.3 6.1 +15% 6 5.2 5 11.2 x 1.6 4 5.8 3.2 3 x2 2.3 2 x 3 1.4 1 x 6 0.5 0.1 0 1996 1997 1998 1999 2000 2001 2001 2002 (obj.)
Slide 38: Bouygues Telecom: commercial activity
BOUYGUES TELECOM: commercial activity Million customers 2001 2002 (1) 1999 2000 2001 at 31 December (1) (obj.) Contract 2.0 2.6 3.2 3.2 3.8 Prepaid 1.2 2.6 3.4 2.9 3.2 Customer base 3.2 5.2 6.6 6.1 7.0 Market share (%) 15.7 17.6 17.9 n.s. n.s. Market share on net 19.4 21.8 19.3 n.s. n.s. additions (
Slide 39: Bouygues Telecom: main drivers (prepaid)
BOUYGUES TELECOM: main drivers n Prepaid 2001 2002 1999 2000 2001 (1) (1) (obj.) ARPU (€/month) 21.0 16.1 12.7 14.1 ä SAC (€) 134 127 96 96 æ Monthly churn 1.9% 1.6% 2.7% n.s. n.s. Usage (min/month) 75 66 58 64 ä The new approach for the prepaid segment will improve performance (1) After deducting i
Slide 40: Bouygues Telecom: main drivers (contract)
BOUYGUES TELECOM: main drivers n Contract 2002 1999 2000 2001 (obj.) ARPU (€/month) 51.5 51.3 55.1 = SAC (€) 255 260 253 æ Monthly churn 2.5% 2.0% 2.1% = Usage (min/month) 281 326 366 = Favourable trend in ARPU for the contract segment
Slide 41: Bouygues Telecom: breakdown of sales
BOUYGUES TELECOM: breakdown of sales 2001 Million euros 2000 2001 2000 Airtime sales 1, 787 2, 387 + 34% of which roaming 67 126 + 88% of which services 73 184 x 2.5 Handset sales 201 240 + 19% Other sales 49 54 + 10% TOTAL 2, 037 2, 681 + 32% Growth of airtime sales boosted by services and roaming
Slide 42: Bouygues Telecom: new sources of revenue
BOUYGUES TELECOM: new sources of revenue n Roaming : 5.3% of 2001 airtime revenues (up 88%) n Services: 7.7% of 2001 airtime revenues (increased by 2.5) ü including SMS: 3.5% of 2001 airtime revenues 800 million messages in 2001 Solid growth in new sources of revenue
Slide 43: Bouygues Telecom: mobile multimedia
BOUYGUES TELECOM: mobile multimedia n Our approach ü Offer services that are simple, accessible and useful, at competitive prices n Timetable for mobile multimedia offering using GPRS ü 1st quarter 2002: launch of corporate services ü 4th quarter 2002: launch of services for the general public Bouyg
Slide 44: Bouygues Telecom: UMTS
BOUYGUES TELECOM: UMTS n New conditions ü Licence fee reduced: • to €619m (from €4,950m) and 1% of revenues from UMTS ü Licence term extended from 15 to 20 years n Our position ü We are preparing our bid ü We shall reserve our decision, depending on expected profitability
Slide 45: Bouygues Telecom: network quality
BOUYGUES TELECOM: network quality n Survey to assess the quality of service of networks (ART – February 2002) Bouygues Telecom scored: ü 1st place in 10 out of 23 criteria for successful calls of two minutes and of acceptable quality ü 1st place in 18 out of 23 criteria for calls of perfect quality
Slide 46: Bouygues Telecom: strong assets
BOUYGUES TELECOM: strong assets n Innovative sales policy based on a strong brand, with a simplified, easily-recognizable visual identity n Continuous improvement of network coverage and quality n A healthy financial situation ü Low debt level ü Steady increase in cash-flow, able to finance mobile m
Slide 47: Agenda
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 48: Bouygues Group: sound financial structure
BOUYGUES GROUP: sound financial structure Million euros 31/12/99 31/12/00 31/12/01 Stockholders’ equity 2, 878 5, 168 5, 503 Long & medium term provisions 1, 856 2, 002 1, 909 Financial liabilities 3, 138 3, 028 3, 081 Long-term capital 7, 872 10, 198 10, 493 Fixed assets 7, 222 8, 381 9, 275 Workin
Slide 49: Net debt per business area
NET DEBT PER BUSINESS AREA Million euros 31/12/00 31/12/01 Bouygues Telecom (54%) (782) (1, 023) TF1 340 (188) SAUR (761) (676) Construction 797 1, 102 Holding and other (1) (2) (561) (339) TOTAL (967) (1, 124) (1) Bouygues SA, financial subsidiaries and acquisition of Bouygues Offshore and ETDE sha
Slide 50: Consolidated income statement
CONSOLIDATED INCOME STATEMENT Million euros 2000 2000 * 2001 Sales 19, 060 19, 060 20, 473 EBITDA 1, 474 1, 474 1, 680 EBIT 812 812 876 Earnings before tax and 797 678 727 exceptionals Exceptional items 15 43 73 Income tax (152) (267) (268) Net earnings before 627 421 510 minority interests Net earn
Slide 51: EBITDA
EBITDA 2001 Million euros 2000 2001 2000 Bouygues Telecom (54%) 18 234 x 13 TF1 532 475 - 11% SAUR 222 198 - 11% Construction 709 786 + 11% Holding and other (7) (13) TOTAL 1, 474 1, 680 + 14%
Slide 52: Net earnings attributable to the Group
NET EARNINGS ATTRIBUTABLE TO THE GROUP 2001 Million euros 2000 2001 2000 Bouygues Telecom (54%) (149) (37) ä TF1 100 87 - 13% SAUR 22 22 = Construction 214 265 + 24% Holding and other (1) 28 7 n.s. TOTAL 215 (2) 344 + 60% (1) Bouygues SA, financial subsidiaries and financing of Bouygues Offshore and
Slide 53: Agenda
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 54: Outlook for 2002
OUTLOOK FOR 2002 2002 sales Million euros 2001 sales (e) Bouygues Telecom (54% and 100%) 1, 434 3, 075 Bouygues Telecom at 100 % 2, 670 3, 075 TF1 2, 277 2, 570 TELECOM-MEDIA 3, 711 5, 645 SAUR SERVICES 2, 487 2, 500 Building and Civil Works 4, 642 4, 430 Bouygues Offshore 1, 022 1, 200 ETDE 377 470
Slide 55: Strategic orientation
STRATEGIC ORIENTATION n Bouygues devotes its resources first and foremost to its development in telecommunications and to supporting TF1 projects n All the other businesses finance their growth from cashflow
Slide 56: Bouygues' assets
BOUYGUES’ ASSETS n Sound financial structure with very low debt n A unique position of operator in both television and telecommunications n World-class expertise and reputation in the construction sector n Well-run businesses with excellent growth potential A strong entrepreneurial culture in all it
Slide 57: Objectives
OBJECTIVES n Pursue the Group's sustainable development and increase its profitability n Enhance Bouygues Telecom’s profitability and development n Create value for our stockholders
Slide 58: Group Bouygues 2001 Accounts 2002 Prospects
GROUP BOUYGUES 2001 ACCOUNTS 2002 PROSPECTS Paris 6 March 2002