Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2013 Earnings Presentation
67 slides from Bouygues Sa's earnings presentation, Aug 28, 2013
Slide 1: First-half 2013 results presentation
1 First-half 2013 results presentation Paris – 32 Hoche 28 August 2013 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
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: Highlights and key figures
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 3
Slide 4: Highlights
Highlights Good commercial performance in the construction businesses Resilience of TF1 and Bouygues Telecom in a very challenging environment The adaptation plans produced the expected results Margin consolidation at Bouygues Immobilier Tight control of expenditure at TF1 Continued tran
Slide 5: Group key figures (1/2)
Group key figures (1/2) First half € million 2012 2013 Change Sales 15,505 15,207 -2%1 Current operating profit 476 356 -€120m Net profit attributable to the Group 278 188 -€90m (1) Down 2% like-for-like and at constant exchange rates The decline in sales is mainly related to Bouygues Telecom Th
Slide 6: Group key figures (2/2)
Group key figures (2/2) Current operating profit/(loss) Change vs. Change vs. Change vs. € million Q1 2013 2012 Q2 2013 2012 H1 2013 2012 Construction businesses (79) -€7m 289 +€5m 210 -€2m TF1 (16) -€72m 87 +€9m 71 -€63m Bouygues Telecom 28 -€79m 63 +€22m 91 -€57m Group total (76) -€158m 432 +€38m
Slide 7: Group financial position
Group financial position End-June € million 2012 2013 Change Shareholders’ equity 9,372 9,617 +€245m Net debt 6,215 5,758 -€457m Net gearing 66% 60% -6 pts Asset disposals1 at the end of 2012 enabled to cut net debt by €426m Tight control of net debt at end-June 2013, despite the decline in resu
Slide 8: Group free cash flow
Group free cash flow First half € million 2012 2013 Change Cash flow 1,274 1,007 -€267m - Cost of net debt (142) (157) -€15m - Income tax expense (130) (102) +€28m - Net capital expenditure (592)2 (596)3 -€4m Free cash flow1 410(2) 152(3) -€258m The decline in cash flow mainly reflects the lower r
Slide 9: Business areas
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 9
Slide 10: Construction businesses
Construction businesses Bouygues Inmobilier st i 10
Slide 11: Business activity at Bouygues Construction
Business activity at Bouygues Construction A good level of order intake: €5.1bn in H1 2013 Order book (€m) For execution in Y Order intake grew 6% stripping out the 3 major contracts1 worth more than For execution in Y+1 €600m booked in H1 2012 For execution from Y+2 to Y+5 Long-term order book
Slide 12: Business activity at Bouygues Immobilier
Business activity at Bouygues Immobilier Reservations (€m)1 Residential property reservations grew 3% year-on-year The market is still expected to decline in 2013 Commercial property Residential property Commercial property reservations held up well in a sluggish market 1,045 -9% H1 2012 inc
Slide 13: Business activity at Colas
Business activity at Colas Order book (€m) International and French overseas territories Mainland France 7,856 7,570 7,228 -4% 3,835 3,629 -5% 3,594 3,634 4,021 3,941 -2% A63 motorway, France End-June End-June End-June 2011 2012 2013 The order book remained at a high level The order book at end-
Slide 14: Good commercial performance of the construction businesses
Good commercial performance of the construction businesses The economic environment, particularly in Europe, remains challenging Order books (€m) Bouygues Construction Bouygues Immobilier Colas However, the resilience of the order books in the construction €28.6bn €26.8bn €27.3bn businesses resu
Slide 15: A strong and selective international presence
A strong and selective international presence Strong international presence Representing 46% of the Bouygues Construction and Colas order books, of which close to 40% in emerging countries Targeted expansion in areas less affected by the crisis Switzerland, North America, Qatar, Central Asia
Slide 16: Recognised know-how in complex projects
Recognised know-how in complex projects Eco-neighbourhoods Luxury hotels and "green" buildings Photo credit: Augusto Da Silva Property High-rise complexes tower blocks PPPs1 and complex projects Rail Tunnels and bridges 16 (1) PPP: Public Private Partnership
Slide 17: Tuen Mun - Chek Lap Kok tunnel in Hong Kong
Tuen Mun - Chek Lap Kok tunnel in Hong Kong Tuen Mun Northern Illustration of Bouygues’ know-how in tunnels landfall A 4.2-km sub-sea twin-tube 2-lane tunnel Each tube will have a diameter of 14 m Carried out at 50 m below sea level Southern landfall International Pressure of more than 5 b
Slide 18: Renovation of Hôtel de Crillon in Paris
Renovation of Hôtel de Crillon in Paris Illustration of Bouygues' know-how in the construction and renovation of luxury hotels First major renovation since the hotel opened in 1909 Complete refurbishment of the 14,000-m² building Creation of new facilities (restaurants, spa, pool) Contract
Slide 19: Construction of Brickell CityCentre in Miami
Construction of Brickell CityCentre in Miami Illustration of Bouygues' know-how in property complexes A 445,000-m² property complex with a shopping centre, hotel, office buildings and residential blocks in the heart of the Miami business district LEED® Gold certification sought as part of its
Slide 20: Financial results of the construction businesses (1/2)
Financial results of the construction businesses (1/2) First half € million 2012 2013 Change Sales 11,550 11,740 +2% Current operating profit/(loss) 212 210 -€2m o/w Bouygues Construction 163 202 +€39m o/w Bouygues Immobilier 83 84 +€1m o/w Colas (34) (76) -€42m Net profit attributable to the Group
Slide 21: Financial results of the construction businesses (2/2)
Financial results of the construction businesses (2/2) Operating profit at Bouygues Construction reflects the good execution of ongoing projects Operating profit at Bouygues Immobilier remains stable. In line with expectations, the decline in the operating margin is limited thanks to the adaptat
Slide 22: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction International Order intake1 Order intake excluding major Order book (€m) France contracts2 >€600m booked in H1 2012 For execution in Y 6,893 For execution in Y+1 6,105 6,134 -27% +6% For execution from Y+2 to Y+5 €m 5,052 4,780 Long-term order book (beyond
Slide 23: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservations1 Order book Commercial property 1,243 1,314 3,060 2,957 -9% Residential property 2,890 2,815 68 324 1,045 522 600 943 955 €m 646 618 99 317 203 1,175 2,538 2,357 2,244 2,197 844 990 728 752 End-June End-Dec End-March End-June H1 2009 H1 2010 H1 2
Slide 24: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France 7,856 7,570 -4% 7,531 7,254 7,006 H1 H1 2013 6,704 € million Change 2012 2013 target -5% Sales 5,594 5,560 -1%1 13,200 3,537 3,835 3,629 3,676 3,298 o/w France 3,367 3,399 +1% 3,237 o/w internati
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Slide 26: H1 2013 overview at TF1
H1 2013 overview at TF1 Leadership in freeview TV strengthened in H1 2013 TF1 is the only major broadcaster to post audience growth HD1 is the leader of the six new HD DTT channels A competitive and economic environment that continued to be challenging with strong pressure on prices In the
Slide 27: Phase II of the TF1 optimisation plan
Phase II of the TF1 optimisation plan Phase II of the optimisation plan is being stepped up €9m of savings generated in Q2 2013 €31m of savings generated to date, out of the €85m targeted for end-2014 27
Slide 28: Key figures at TF1
ANNEX Key figures at TF1 Group audience share1 28.4 29.0 The TF1 TV channel's audience share increased 0.2 points versus H1 2012 2.1 2.1 0.5 3.6 3.5 TF1 is the only major broadcaster to see growth during the first half, in an even HD1 wider offering of 25 TV channels NT1 At end-June 2013, HD1
Slide 29: Bouygues Telecom
Bouygues o
Slide 30: Structural change in the French mobile market
Structural change in the French mobile market Two major changes in the French mobile market in the last 18 months The fierce competition wanted by the public authorities has resulted in a very swift contraction in market value The business model is being transformed due to strong growth in SIM
Slide 31: Bouygues Telecom's strategy
Bouygues Telecom's strategy Bouygues Telecom’s far-reaching transformation implemented at the start of 2012 has been stepped up in 2013 Overhaul of the business model to cope with upheavals in the market The change in the way plans are marketed and the fall in operating costs are generating high
Slide 32: Transforming the way plans are marketed
Transforming the way plans are marketed Bouygues Telecom reacted quickly to the market upheaval It expanded B&YOU, withdrew swiftly from highly competitive distribution channels and divested Extenso Telecom in 2012 1 Mobile sales exc. MTR effect These measures are now having their desired effe
Slide 33: Cost reductions
Cost reductions The results of the transformation plan launched in 2012 have exceeded expectations €339m of savings on mobile costs since end-2011 The fall in costs accelerated in H1 2013: €188m in H1 2013 vs. H1 2012, compared with €94m in H1 2012 vs. H1 2011 Change in mobile costs: H1 2013 v
Slide 34: Network sharing agreement expected with SFR
Network sharing agreement expected with SFR Exclusive negotiations with SFR since 22 July to define an agreement to share part of the mobile networks Aims To offer customers the best geographical coverage and best quality of service To optimise investments and operating costs The main poin
Slide 35: Overview of H1 2013 at Bouygues Telecom
Overview of H1 2013 at Bouygues Telecom Stabilisation of mobile subscriber base thanks to B&YOU End-Dec End-March End-June Net growth in plan subscribers of 184,000 in Q2 2013 '000 2012 2013 2013 188,000 new B&YOU customers in Q2 2013 Mobile subscribers 11,251 11,271 11,286 o/w B&YOU subscribe
Slide 36: Mobile business performance at Bouygues Telecom
ANNEX Mobile business performance at Bouygues Telecom Net plan subscriber adds1 Growth in plan subscribers 285 '000 188 190 184 Net plan subscriber adds of 184,000 in Q2 55 Stabilisation of total mobile subscriber base at Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 11.3 million customers -
Slide 37: Fixed broadband business performance at Bouygues Telecom
ANNEX Fixed broadband business performance at Bouygues Telecom Net growth of the fixed broadband business2 Total fixed broadband subscriber base of 1.9 million at '000 359(3) end-June 2013 Net subscriber adds of 55,000 in H1 2013 88 70 88 45 Strong growth posted by very-high-speed1 10 Subscr
Slide 38: Key figures at Bouygues Telecom
ANNEX Key figures at Bouygues Telecom € million H1 2012 H1 2013 Change 2013 target Sales 2,676 2,287 -15%1 4,600 Sales from network 2,386 2,113 -11% EBITDA 559 469 -€90m EBITDA/sales from network 23.4% 22.2% -1.2 pts Current operating profit 148 91 -€57m Operating profit 148 91 -€57m Net profit attr
Slide 39: 4G for all will become a reality (1/3)
4G for all will become a reality (1/3) Bouygues Telecom believes in the potential of 4G... Mobile internet consumption is surging due to the ramp-up of mobile usages 4G is essential to satisfy the appetites of users …and so do its customers “With 4G you can surf faster than at home with br
Slide 40: 4G for all will become a reality (2/3)
4G for all will become a reality (2/3) Bouygues Telecom is liberating data usage for all! A battle Bouygues Telecom has been waging for more than 2 years… Preparation of the network to host 4G services A different strategic choice from its rivals: use of 1800 MHz frequencies to launch 4G more
Slide 41: 4G for all will become a reality (3/3)
4G for all will become a reality (3/3) Bouygues Telecom's new plans give 4G access to all Transparency in the financing of handsets, since the subsidised model has now reached its limits Freedom to choose how to pay for handsets In cash, 3 interest free payments or long-term instalments A
Slide 42: 2013 outlook at Bouygues Telecom
2013 outlook at Bouygues Telecom Bouygues Telecom has revised its 2013 sales target to €4,600m from the previously announced €4,850m to factor in The very fast structural changes in the mobile market (SIM-only sales) resulting in a fall in sales from network and in handset sales Moderate comme
Slide 43: Alstom section agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 43
Slide 44: ALSTOM
ALSTOM Order intake of €4.1bn in Q1 2013/14 despite the lack of large-scale projects Robust level of small and mid-sized orders Order book of €51bn at 30 June 2013, representing 31 months of sales Italo Sales in Q1 2013/14: €4.6bn, (-4% vs. Q1 2012/13) Alstom has confirmed its 3-year objec
Slide 45: Financial statements
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 45
Slide 46: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) First half € million 2012 2013 Change Sales 15,505 15,207 -2% Operating profit 476 356 -25% Cost of net debt (142) (157) +11% o/w financial income 28 24 -14% o/w financial expenses (170) (181) +6% Other financial income and expenses 8 (7) nm 46
Slide 47: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) First half € million 2012 2013 Change Income tax expense (130) (102) -22% Share of profits and losses from associates 131 134 +2% Net profit 343 224 -35% Net profit/(loss) attributable to non-controlling (65) (36) -45% interests1 Net profit attributable
Slide 48: Sales by business area
Sales by business area € million H1 2012 H1 2013 Change Bouygues Construction 5,028 5,232 +4% Bouygues Immobilier 1,066 1,143 +7% Colas 5,594 5,560 -1% Sub-total of the construction businesses1 11,550 11,740 +2% TF1 1,301 1,208 -7% Bouygues Telecom 2,676 2,287 -15% Holding company and other 68 62 nm
Slide 49: Contribution of business areas to Group EBITDA
ANNEX Contribution of business areas to Group EBITDA First half € million 2012 2013 Change Bouygues Construction 268 239 -€29m Bouygues Immobilier 69 88 +€19m Colas 131 74 -€57m TF1 174 92 -€82m Bouygues Telecom 559 469 -€90m Holding company and other (21) (17) +€4m TOTAL 1,180 945 -€235m EBITDA = c
Slide 50: Contribution of business areas to Group current operating profit
Contribution of business areas to Group current operating profit First half € million 2012 2013 Change Bouygues Construction 163 202 +€39m Bouygues Immobilier 83 84 +€1m Colas (34) (76) -€42m Sub-total of the construction businesses 212 210 -€2m TF1 134 71 -€63m Bouygues Telecom 148 91 -€57m Holding
Slide 51: Contribution of business areas to Group net profit
Contribution of business areas to Group net profit Attributable to the Group First half € million 2012 2013 Change Bouygues Construction 107 131 +€24m Bouygues Immobilier 51 45 -€6m Colas (18) (31) -€13m Sub-total of the construction businesses 140 145 +€5m TF1 41 18 -€23m Bouygues Telecom 83 49 -
Slide 52: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec End-June End-June € million Change 2012 2013 2012 Non-current assets 20,170 20,209 +€39m 20,249 Current assets 16,584 15,876 -€708m 15,808 TOTAL ASSETS 36,754 36,085 -€669m 36,057 Shareholders' equity 10,078 9,617 -€461m 9,372 Non-current liabilities 9,84
Slide 53: Change in net cash position in H1 2013 (1/2)
Change in net cash position in H1 2013 (1/2) Net cash at Net cash at 31/12/2012 €m 30/06/2013 (4,172) (2,172) (3,872) (2,883) Acquisitions/ Issue & Dividends (5 007) disposals1 (5,758) paid buyback of Bouygues -46 -591 shares Operation -74 4G frequencies -854 -21(2) H1 2012 (3,862) -29 -606 -4 -1,01
Slide 54: Change in net cash position in H1 2013 (2/2)
Change in net cash position in H1 2013 (2/2) Breakdown of operation Net capital Net cash flow1 expenditure €m -596(2) Change in the operating -596 +748 3 WCR and other -1,006 -854(2) H1 2012 +1,002 -592(4) -1,420 -1,010 (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Exclud
Slide 55: Contribution of business areas to Group net cash flow
ANNEX Contribution of business areas to Group net cash flow First half € million 2012 2013 Change Bouygues Construction 203 236 +€33m Bouygues Immobilier 54 57 +€3m Colas 178 120 -€58m TF1 120 77 -€43m Bouygues Telecom 456 385 -€71m Holding company and other (9) (127) -€118m TOTAL 1,002 748 -€254m N
Slide 56: Contribution of business areas to Group net capital expenditure
Contribution of business areas to Group net capital expenditure First half € million 2012 2013 Change Bouygues Construction 80 55 -€25m Bouygues Immobilier 6 4 -€2m Colas 125 112 -€13m TF1 13 17 +€4m Bouygues Telecom 366(1) 407(2) +€41m Holding company and other 2(1) 1(2) -€1m Total excluding freque
Slide 57: Contribution of business areas to Group free cash flow
ANNEX Contribution of business areas to Group free cash flow First half € million 2012 2013 Change Bouygues Construction 123 181 +€58m Bouygues Immobilier 48 53 +€5m Colas 53 8 -€45m Sub-total of the construction businesses 224 242 +€18m TF1 107 60 -€47m Bouygues Telecom 90(1) (22)2 -€112m Holding c
Slide 58: Net cash by business area
Net cash by business area End-June End-June End-Dec € million Change 2012 2013 2012 Bouygues Construction 2,531 2,845 +€314m 3,093 Bouygues Immobilier 305 239 -€66m 358 Colas (1,074) (1,142) -€68m (170) TF1 (91) 166 +€257m 237 Bouygues Telecom (1,462) (774) +€688m (650) Holding company and other (6,
Slide 59: Financing
Financing €m Available cash: €6.9bn 10,000 9,000 Debt maturity schedule at end-June 2013 8,000 7,000 Undrawn 6,000 MLT credit facilities 5,000 €4.7bn 4,000 3,000 2,000 1,391 Cash 821 727 964 996 696 1,000 330 794 589 €2.2bn 19 528 20 0 0 48 0 0 59
Slide 60: Outlook section agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 60
Slide 61: 2013 outlook (1/2)
2013 outlook (1/2) Construction businesses The order books of the construction businesses secure their sales targets for FY 2013 TF1 In a challenging advertising market, TF1 showed its ability to cut costs whilst maintaining audience share Bouygues Telecom The 2013 sales target has been
Slide 62: 2013 outlook (2/2)
2013 outlook (2/2) The Group's consolidated sales could range between €33.2bn (-1% vs. 2012) and €33.4bn (flat vs. 2012), following the revision to Bouygues Telecom's sales target and depending on the final sales figure of the construction businesses In keeping with Q2 2013, profitability should
Slide 63: Annexes section agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK ANNEXES 63
Slide 64: Revision of 2013 sales targets
ANNEX Revision of 2013 sales targets 2013 targets 2013/2012 € million 2012 In Feb In May In August change Bouygues Construction 10,640 10,700 10,750 10,750 +1% Bouygues Immobilier 2,396 2,500 2,500 2,500 +4% Colas 13,036 13,200 13,200 13,200 +1% TF1 2,621 2,540 2,500 2,500 -5% Bouygues Telecom 5,226
Slide 65: Key indicators at Bouygues Telecom
ANNEX Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base Q1 2013 Q2 2013 Q1 2013 Q2 2013 Q1 2013 Q2 2013 Subscribers SIM cards (‘000) 9,618 9,802 1,653 1,484 11,271 11,286 SIM cards (% mix) 85.3% 86.9% 14.7% 13.1% Fixed broadband subscriber base1 (‘000) 1,891 1,901 Unit data – mob
Slide 66: Mobile termination rates
ANNEX Mobile termination rates Text termination Voice termination rates rates € cents/minute for voice € cents/text At 1 July At 1 Jan At 1 July At 1 Jan At 1 July At 1 July At 1 July 2011 2012 2012 2013 2013 2011 2012 Rates to 2.00 1.50 1.00 0.80 0.80 1.50 1.00 Bouygues Telecom % change -41% -25% -
Slide 67: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 67