Bouygues SA · EURONEXT:EN

Bouygues SA — FY2005 Earnings Presentation

53 slides from Bouygues SA's earnings presentation, March 2006

  1. Slide 1: Highlights, Business Areas, Accounts, Outlook and Objectives

    „ HIGHLIGHTS „ BUSINESS AREAS „ ACCOUNTS „ OUTLOOK AND OBJECTIVES 14

  2. Slide 2: Bouygues Construction: key figures

    BOUYGUES CONSTRUCTION (B/CW): key figures Million euros - IFRS 2004 2005 Change Sales 5,512 6,131 + 11% of which France 3,236 3,653 + 13% of which international 2,276 2,478 + 9% Operating profit 168 238 + 42% Net profit att. to the Group 140 175 + 25% Net cash 1,523 1,874 + €351m Waterfront Internat

  3. Slide 3: Bouygues Construction: highlights in 2005

    BOUYGUES CONSTRUCTION (B/CW): highlights in 2005 „ Record orders taken (€6.5 billion, + 27%) „ A number of projects won (not yet included in the order book), illustrating Bouygues Construction’s strengths in high-growth sectors: 9 A41 motorway between Annecy and Geneva (€500m for Bouygues Constructi

  4. Slide 4: Bouygues Construction: order book

    BOUYGUES CONSTRUCTION (B/CW): order book At 31 December 2005 €bn Total order book o/w France and Europe 56% 5% 5,5 5.2 5.0 5% 5 76% 4.6 4.6 4,5 14% 4.0 20% 4 3.6 3.4 3.4 France 3,5 Europe (excluding France) 3 Asia Africa and other 2002 2003 2004 2005 Americas Good visibility 17

  5. Slide 5: 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 ETDE’s controlled external

  6. Slide 6: Bouygues Immobilier: key figures

    BOUYGUES IMMOBILIER: key figures Million euros - IFRS 2004 2005 Change Sales 1,295 1,557 + 20% o/w housing 864 1,047 + 21% o/w orporate/commercial 431 510 + 18% Operating profit 119 156 + 31% Net profit att. to the Group 64 90 + 41% Net cash 249 150 - €99m Exaltis building, Paris La Défense Strong g

  7. Slide 7: Bouygues Immobilier: highlights in 2005

    BOUYGUES IMMOBILIER: highlights in 2005 „ Strong commercial activity and substantial increase in land reserves in the housing segment as a result of firm market conditions in France „ New organization aimed at improving commercial performance „ Steep rise in business in Europe 96 boulevard Haussmann

  8. Slide 8: Bouygues Immobilier: commercial activity

    BOUYGUES IMMOBILIER: commercial activity RESERVATIONS 2004 2005 Change Housing Number 6,759 8,200 + 21% Amount (€m) 1,068 1,350 + 26% Corporate/Commercial Office space (sq m) 167,000 157,000 - 6% Amount (€m) 481 388 - 19% TOTAL (€m) 1,549 1,738 + 12% Housing: strong commercial activity 21

  9. Slide 9: 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

  10. Slide 10: Colas: key figures

    COLAS: key figures Million euros - IFRS 2004 2005 Change Sales 8,024 9,540 + 19% of which France 4,957 5,580 + 13% of which international 3,067 3,960 + 29% Operating profit 289 390 + 35% Net profit att. to the Group 251 307 + 22% Net cash 423 415 -€8m A75 motorway, Hérault, France Another record yea

  11. Slide 11: Colas: highlights in 2005

    COLAS: highlights in 2005 „ Strong commercial activity, notably on international markets 9 Roadbuilding contracts in Slovakia worth €75m 9 Motorway construction contract in Hungary worth €49m 9 Involvement in the successful bid for the A41 motorway concession in France „ Continued acquisitions polic

  12. Slide 12: Colas: sales by region

    COLAS: sales by region Europe France excl. France North America 58% 18% 19% Other 5% 25

  13. Slide 13: Colas: sales by segment

    COLAS: sales by segment Civil engineering Roadworks 6.7% Pipes and mains 69.8% 3.0% Safety, signs and signals 81.6% 11.8% 18.4% 4.2% Waterproofing Construction materials 2.7% Building 1.8% Railways 26

  14. Slide 14: Colas: order book

    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 27

  15. Slide 15: Colas: developments in Central Europe

    COLAS: developments in Central Europe „ 1989: the group launched search for companies to acquire „ 2005: €940m in sales (up 70% on 2004) Poland Czech Republic Slovakia Hungary Romania 28

  16. Slide 16: Colas: developments in Central Europe

    COLAS: developments in Central Europe „ Strong growth in sales, due to: 9 steady development in 15 years of a network of local firms having a broad range of activities 9 infrastructure renewal investment in these countries, speeded up by their entry into the European Union 1 000 €940m 900 800 700 €m

  17. Slide 17: Colas: developments in Central Europe

    COLAS: developments in Central Europe „ Timely development by external growth of a network of local companies: 9 Hungary: 1991 Quarries 1992 Pipes and mains, civil engineering 1998 Road construction 9 Romania: 1991 Road maintenance (in partnership with the government) 2001 Earthworks 2005 Bitumen st

  18. Slide 18: Colas: strategy in Central Europe

    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

  19. Slide 19: Colas in Central Europe: subsidiaries (1/4)

    COLAS IN CENTRAL EUROPE: subsidiaries with a broad range of activities (1/4) „ Production and sale of materials (quarries): 9 Production in 2005: 8 million tonnes 9 Reserves: 300 million tonnes „ Asphalt mixing plants „ Emulsion plants „ Bitumen storage and sale: 9 Constanta site (Romania) Transbitu

  20. Slide 20: Colas in Central Europe: subsidiaries (2/4)

    COLAS IN CENTRAL EUROPE: subsidiaries with a broad range of activities (2/4) „ Roadworks 9 Construction and maintenance M3 motorway, Hungary Application of asphalt mix, Hungary 33

  21. Slide 21: Colas in Central Europe: subsidiaries (3/4)

    COLAS IN CENTRAL EUROPE: subsidiaries with a broad range of activities (3/4) „ Pipes and mains „ Civil engineering „ Earthworks 9 ALTERRA (Hungary) 9 SCCF (Romania) ALTERRA water treatment plant, Hungary 34

  22. Slide 22: Colas in Central Europe: subsidiaries (4/4)

    COLAS IN CENTRAL EUROPE: subsidiaries with a broad range of activities (4/4) „ Major civil engineering works as part of road construction 9 IS KOSICE (Slovakia) D1 motorway, Slovakia 35

  23. Slide 23: Colas in Central Europe

    COLAS IN CENTRAL EUROPE „ After 15 years of expansion, this area currently represents: 9 10% of Colas’s total sales (€940m) 9 6,800 employees including 15 expatriates, 350 engineers 9 25 companies 9 Excellent return on capital employed „ Outlook 9 High level of orders „ Strategic priorities 9 Contin

  24. Slide 24: Colas: strategy and prospects

    COLAS: strategy and prospects „ Colas will pursue its internal growth strategy supported by its network of local companies, industrial production capabilities and expertise in new types of contracts (PFI, PPP) „ and will carry on its policy of acquisitions „ Sales target for 2006: Million euros - IF

  25. Slide 25: TF1: key figures

    TF1: key figures Million euros - IFRS 2004 2005 Change Sales 2,501 2,509 = core channel advertising 1,646 1,648 = other activities 856 861 + 1% Operating profit 381 353 - 7% Net profit att. to the Group 225 236 + 5% Net debt 409 351 - €58m As TPS was held for sale at end-December 2005, only its shar

  26. Slide 26: TF1: leader in terms of audience share

    TF1: leader in terms of audience share Channel 2004 2005 Change Women under 50 35.5% 36.2% + 0.7 pt Individuals 4 years and over 31.8% 32.3% + 0.5 pt Viewing time per person per day 3hrs 24 3hrs 26 + 2 mins (individuals 4 years and over) Advertising market share 54.8% 54.4% - 0.4 pt 97 of 100 best a

  27. Slide 27: Pay-TV agreement (1/2)

    Pay-TV agreement (1/2) „ A commercial agreement was concluded in January 2006 to merge the pay-TV businesses of TPS and the Canal+ group in an entity controlled by Vivendi Universal. „ The merger, to take place in several steps, will be finalised in 2006 after approval by the competent authorities.

  28. Slide 28: Pay-TV agreement (2/2)

    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

  29. Slide 29: TF1: strategy and outlook

    TF1: strategy and outlook „ Ambitions: 9 Maintain TF1’s leading position in programme content in France and prepare for the opening up of the French TV advertising market in 2007 to mass distribution 9 Develop Eurosport 9 Create new programme and service formats adapted to new technologies „ Sales t

  30. Slide 30: TF1: licence agreement with Bouygues Telecom

    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 „ Launch planned for 2006

  31. Slide 31: Bouygues Telecom: share ownership structure

    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

  32. Slide 32: Bouygues: agreement with BNP Paribas in June 2005

    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

  33. Slide 33: Bouygues Telecom: key figures

    BOUYGUES TELECOM: key figures Million euros - IFRS 2004 (1) 2005 Change Sales 4,427 4,537 + 2% Net sales from network 4,092 4,240 + 4% o/w mobile-to-mobile billing 761 665 - 13% o/w data 14.4% 16.4% + 2.0 pts EBITDA 1,167 1,349 + 16% EBITDA / net sales from network 28.5% 31.8% + 3.3 pts Current oper

  34. Slide 34: Bouygues Telecom: financial structure

    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 + 9% - Cost of net financial debt - 62 -26 - 58% - Income tax * -

  35. Slide 35: Bouygues Telecom: 2005 highlights

    BOUYGUES TELECOM: 2005 highlights „ 8-million-customer mark passed (+ 9% in one year) 9 Further increase in contract customer share (68.4% of total base) 9 Success of Universal Mobile, with 400,000 customers to date „ Launch of broadband services, accessible to over 90% of French population on natio

  36. Slide 36: Bouygues Telecom: commercial performance

    BOUYGUES TELECOM: commercial performance Total customer Contract Prepaid (Metropolitan France) base 2004 2005 2004 2005 2004 2005 Active SIM cards (in thousands) (1) 4,854 5,454 2,397 2,424 7,251 7,878 including Universal Mobile (1) 94 363 - - 94 363 ARPU (€ / month) (2) 62 57 21 19 48 45 SAC (€ / c

  37. Slide 37: Bouygues Telecom: market share at December 2005

    BOUYGUES TELECOM: market share at 31 December 2005 (Metropolitan France and French overseas territories) „ Customer market share (1) „ Value market share (2) 0.6% Bouygues Telecom 19.7% 16.9% Orange 46.7% 42.5% SFR 35.8% 37.8% MVNOs and other (1) Source: ARCEP (2) Source: operators MVNO and other: n

  38. Slide 38: Bouygues Telecom: customer breakdown at December 2005

    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% 62% 2002 2003 2004 2005 The best customer

  39. Slide 39: Mobile telephony: comparison of main European countries

    MOBILE TELEPHONY: Comparison of main European countries Population Total revenues Revenues Minutes (million) of mobile per inhabitant per inhabitant 2004 operators per month per month (€m) (€) France 61.6 21,626 29.3 100 Germany 82.5 22,288 22.5 38 UK 59.6 23,833 33.3 86 Italy 57.7 20,612 29.8 not a

  40. Slide 40: Bouygues Telecom: competitive environment (1/2)

    BOUYGUES TELECOM: competitive environment (1/2) „ Arrival of MVNOs on the 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 „ Bouygues Tele

  41. Slide 41: Bouygues Telecom: competitive environment (2/2)

    BOUYGUES TELECOM: competitive environment (2/2) „ Voice-over-IP 9 The consumer telecoms market is undergoing major transformation due to the development of unlimited double-play (Internet access and voice calls to fixed lines) and triple-play offers (Internet, TV and telephone). 9 Bouygues Telecom’s

  42. Slide 42: Bouygues Telecom: regulatory environment (1/2)

    BOUYGUES TELECOM: regulatory environment (1/2) „ Reductions in call termination rates imposed by ARCEP: Euro cents 2004 2005 2006 2007 Calls to Bouygues Telecom 18.39 * 14.79 11.24 % change - 17.4% - 19.6% - 24.0% Reduction decided - Calls to Orange / SFR 14.94 12.5 9.5 amount not yet % change - 12.

  43. Slide 43: Bouygues Telecom: regulatory environment (2/2)

    BOUYGUES TELECOM: regulatory environment (2/2) „ 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 N

  44. Slide 44: Bouygues Telecom: review of earnings

    BOUYGUES TELECOM: review of earnings Net profit/loss Aggregate net loss 600 400 321 352 201 200 130 1995 1996 1997 1998 1999 2000 2001 Aggregate €m 0 0 2002 2003 2004 2005 -53 -61 -200 -123 * - €94m -190 -400 -277 -394 -600 -800 -1000 -1200 -1400 * The net loss in 1999 includes an exceptional profit

  45. Slide 45: Bouygues Telecom: sales target for 2006

    BOUYGUES TELECOM: sales target for 2006 Change Change Million euros - IFRS 2004 (1) 2005 2006 2005/2004 (1) 2006/2005 Net sales from network excluding revenues from 2,939 3,212 + 9% 3,449 + 7% incoming traffic Net sales from network 4,092 4,240 + 4% (2) 4,280 + 1% Total sales 4,427 4,537 + 2% 4,580

  46. Slide 46: Bouygues Telecom: broadband strategy

    BOUYGUES TELECOM: broadband strategy „ 2006: pave the way for 3G rollout 9 Tests are under way on an experimental network using HSDPA technology Î concrete results confirm the break that will come with HSDPA 9 A “core network” equipment contract has been signed with Ericsson 9 Radio equipment suppli

  47. Slide 47: Bouygues Telecom: reminder of different technologies

    BOUYGUES TELECOM: reminder of different technologies „ Actual transfer speed Download speed: network to mobile Upload speed: mobile to network Kbps 1,500 Kbps 1600 160 128 128 1400 140 1200 120 100 1000 100 800 80 600 360 60 400 200 40 40 20 200 20 0 0 GPRS EDGE UMTS-R99 HSDPA GPRS EDGE UMTS-R99 HSD

  48. Slide 48: Bouygues Telecom: licences

    BOUYGUES TELECOM: licences „ UMTS licence (€619 million): straight-line amortisation from May 2005 until its expiry in 2022 „ Renewal of GSM licences: 9 1% tax on sales 9 lump-sum fee of €25 million per year Î These conditions will apply to Orange and SFR as of March 2006, and to Bouygues Telecom fr

  49. Slide 49: New functionalities: mobile TV

    NEW FUNCTIONALITIES: mobile TV „ Telecoms networks are not designed to offer TV under good conditions Broadcast system Unicast system 9 Unlimited capacity 9 Network saturation 9 Unlimited number of viewers at same 9 Limited number of viewers at same time time 9 New network needed 9 High cost for use

  50. Slide 50: New functionalities: contactless applications (1/2)

    NEW FUNCTIONALITIES: contactless applications (1/2) „ Tomorrow’s services Ticketing Transport Parking Loyalty cards Gift Payment vouchers Access control Identification & security 63

  51. Slide 51: New functionalities: contactless applications (2/2)

    NEW FUNCTIONALITIES: contactless applications (2/2) „ Implementation stages for Bouygues Telecom 9 Develop transport applications in the short term: ¾ Give customers services with immediately noticeable advantages in everyday use ¾ Meet transport company demand ¾ Extend the experience with the RATP

  52. Slide 52: Contactless applications: NTT DoCoMo model in Japan

    CONTACTLESS APPLICATIONS: 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 their t

  53. Slide 53: Bouygues Telecom: strategy and outlook

    BOUYGUES TELECOM: strategy and outlook FREEING UP VOICE USAGE ƒ unlimited calling with standard BRINGING BROADBAND WITHIN price plans EVERYONE’S REACH ƒ to all networks: NEO ƒ unlimited broadband i-mode plan ƒ to fixed lines: Exprima ƒ Edge card for laptops Personal telephony MAKING LIFE EASIER COMM

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