Bouygues Sa · EURONEXT:EN
Bouygues Sa — FY2020 Earnings Presentation
58 slides from Bouygues Sa's earnings presentation, Feb 18, 2021
Slide 1: Full-Year 2020 Results Presentation
FULL-YEAR 2020 RESULTS 18 FEBRUARY 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: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK FOR THE GROUP ⚫ ANNEXES 3
Slide 4: New governance for the Group as of 17 February 2021
NEW GOVERNANCE FOR THE GROUP AS OF 17 FEBRUARY 2021 SEPARATION OF THE FUNCTIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER ◼ Martin Bouygues will be the Chairman ◼ Olivier Roussat, previously Deputy CEO, is appointed Chief Executive Officer of the Bouygues group As such, he will chair the Group Managem
Slide 5: Highlights of 2020
HIGHLIGHTS OF 2020 AN AGILE, RESPONSIBLE AND RESILIENT GROUP ⚫ ACTIVITIES REBOUND SHARPLY IN H2 2020 AFTER H1 SUBSTANTIALLY IMPACTED BY THE PANDEMIC ◼ Business segments show strong ability to adapt ◼ Group returns to significant profitability in H2 2020 > Sharp increase in current operating profit:
Slide 6: Highlights of 2020 by sector of activity
HIGHLIGHTS OF 2020 BY SECTOR OF ACTIVITY ⚫ CONSTRUCTION BUSINESSES ◼ Backlog maintained at record level ◼ Rapid rebound in activity in H2 2020, after H1 substantially impacted by the pandemic > Increase in profitability in H2 2020: current operating margin up 0.5 pts vs H2 2019 > Free cash flow afte
Slide 7: Group key figures for 2020
GROUP KEY FIGURES FOR 2020 ⚫ GROUP DEMONSTRATES RESILIENCE DURING THE COVID-19 CRISIS ◼ Limited decline in sales (-9% vs 2019) and in current €m 2019 2020 Change operating profit (-€454m) thanks to the concerted efforts Sales 37,929 34,694 -9%c of all business segments o/w France 22,446 20,402 -9% ◼
Slide 8: Group returns to significant profitability in H2 2020
GROUP RETURNS TO SIGNIFICANT PROFITABILITY IN H2 2020 GROUP CURRENT OPERATING MARGIN: 6.8%, UP 0.8 PTS VS H2 2019, EXCEEDING THE TARGET ◼ Construction businesses: catch-up of activity mainly in France in Q3, implementation of savings measures, and compensations linked to worksites shutdown in H1 202
Slide 9: Group strong free cash flow generation
GROUP STRONG FREE CASH FLOW GENERATION ⚫ VERY HIGH FREE CASH FLOW GENERATION AFTER WCR OF €1.2BN, Group free cash flow after WCRc (€m) UP SHARPLY VS 2019 +47% ◼ Robust free cash flowa of €725m, despite the impacts of the pandemic on sales 1,202 and earnings d > Group continues to invest to accelerat
Slide 10: Very robust Group financial structure
VERY ROBUST GROUP FINANCIAL STRUCTURE ⚫ LOW LEVEL OF NET DEBTa AT END-2020 (€2BN VS €2.2BN AT END-2019), WHICH TAKES INTO ACCOUNT ◼ The strong generation of free cash flow after WCR ◼ The positive impact of the sale of around 4.8% of Alstom’s share capital for €450mb ◼ The acquisition of EIT by Bouy
Slide 11: Group liquidity at a high level
GROUP LIQUIDITY AT A HIGH LEVEL ⚫ AVAILABLE CASH AT END-DECEMBER 2020: €12BN Available cash (€bn) Debt maturity schedule at end-December 2020 (€bn) 3 4.0 2 Evenly spread debt maturity schedule €12bn 1 8.0 No covenants on 0 medium/long-term 2021 2022 2023 2024 2025 2026 2027 2028 facilitiesa Undrawn
Slide 12: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK FOR THE GROUP ⚫ ANNEXES 12
Slide 13: Construction businesses
CONSTRUCTION BUSINESSES Construction of cycle paths – Alsace – France Vitry-sur-Seine station on the future Line 15 South of the Grand Rehabilitation of Les Fabriques – Marseille – France Paris Express project – France 13
Slide 14: Backlog in the construction businesses at record level
BACKLOG IN THE CONSTRUCTION BUSINESSES AT RECORD LEVEL Backlog in the construction businesses (€bn) b 0% ⚫ BACKLOG AT END-DECEMBER 2020 OF €33.1BN (+1%a), 33.0 33.1 PROVIDING LONG-TERM VISIBILITY 2.0 2.2 -10% ◼ 62% of the backlog at Bouygues Construction and Colas 9.2 9.2 in international markets (s
Slide 15: Backlog in the construction businesses in France
BACKLOG IN THE CONSTRUCTION BUSINESSES IN FRANCE ⚫ BACKLOG AT END-DECEMBER 2020 OF €13.6BN Backlog in France (€bn) a ◼ Order intake up 5% year-on-year in Q4 at Bouygues Construction -1% ◼ Stable backlog for Colas’ Roads activity in mainland France 13.8 13.6 ◼ Decline in reservations at Bouygues Immo
Slide 16: International backlog in the construction businesses
INTERNATIONAL BACKLOG IN THE CONSTRUCTION BUSINESSES ⚫ BACKLOG AT END-DECEMBER 2020: UP 2%d International backlog (€bn) a +1% ◼ Strong growth in order intake at Bouygues Construction: up 10% in 2020 vs 2019 19.2 19.5 0.1 -4% 0.1 EXAMPLES OF CONTRACTS BOOKED IN Q4 2020 6.1 -2%b 6.0 Health Authority P
Slide 17: Key figures for 2020 in the construction businesses
KEY FIGURES FOR 2020 IN THE CONSTRUCTION BUSINESSES ⚫ RAPID REBOUND IN ACTIVITY IN H2 2020 LIMITED €m 2019 2020 Change THE DECLINE IN SALES AND CURRENT OPERATING MARGIN YEAR-ON-YEAR Sales 29,575 26,208 -11%a o/w France 14,316 12,123 -15% ◼ Sales down 11% vs 2019, more pronounced in France (impact of
Slide 18: Génération Ushuaïa
18 Génération Ushuaïa
Slide 19: Key figures at TF1 Group
KEY FIGURES AT TF1 GROUP ⚫ LEADERSHIP MAINTAINED AMONG TARGET AUDIENCES ◼ Improved audience share among individuals aged 25 to 49 (up 0.5 pts since 2019) €m 2019 2020 Change ⚫ SALES DOWN 11% YEAR-ON-YEAR Sales 2,337 2,082 -11%a DUE TO THE IMPACT OF THE COVID-19 CRISIS Current operating profit 255 19
Slide 20: Outlook for TF1 Group
OUTLOOK FOR TF1 GROUP This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 ⚫ IN 2021, TF1 WILL BENEFIT FROM A STRONG AND DIVERSIFIED LINE-UP (DRAMA, ENTERTAINMENT, EURO 2021,…) ⚫ IN A MACROECONOMIC AND HEALTH CONTEXT THAT REMAINS
Slide 21: Bouygues Telecom
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Slide 22: Strong commercial performance
STRONG COMMERCIAL PERFORMANCE Mobile plan customers excl. EIT and MtoM (millions of customers) ⚫ 12.1 MILLION MOBILE PLANa CUSTOMERS AT END-DECEMBER 2020 12.1 11.5 ◼ +606,000 customers year-on-year, +150,000 in Q4 2020 10.9 10.3 ⚫ 4.2 MILLION FIXED CUSTOMERS AT END-DECEMBER 2020 9.8 ◼ Over 38% of fi
Slide 23: 5% increase in sales from services in Q4 2020
Mobile ABPU (€/customer/month) 5% INCREASE IN SALES FROM SERVICES +0.5 +0.7 IN Q4 2020a YEAR-ON-YEAR 19.2 19.7 20.4 * Q4 2018 Q4 2019 Q4 2020 ⚫ GROWTH IN MOBILE AND FIXED ABPU b Mobile ABPU *Restated mobile ABPU (€ 19.8 excl. restatement) ◼ +€0.7 for mobile in Q4 2020 vs Q4 2019 to €20.4 Fixed ABPU
Slide 24: 2020 key figures at Bouygues Telecom
2020 KEY FIGURESa AT BOUYGUES TELECOM ⚫ SALES FROM SERVICES: UP 6.4% VS 2019, EXCEEDING €m 2019 2020 Change THE 2020 TARGET Sales 6,058 6,438 +6%c o/w sales from services 4,597 4,893 +6% ⚫ 6% INCREASE IN EBITDA AFTER LEASES TO €1,502M o/w other sales 1,461 1,545 +6% ◼ Of which a net roaming impact d
Slide 25: EIT: a strategic acquisition
EIT: A STRATEGIC ACQUISITION KEY FIGURES 2020 sales: ⚫ TRANSACTION COMPLETED ON 31 DECEMBER 2020 FOR A PRICE OF €564M ~ €550m (BEFORE FACTORING IN AN ESTIMATE OF THE EARN-OUT CLAUSE) Customer base of 2.1 million ⚫ BOUYGUES TELECOM, THIRD BIGGEST MOBILE OPERATOR WITH 14.2 MILLION 2020 mobile ABPU: CU
Slide 26: A new strategic plan for Bouygues Telecom
A NEW STRATEGIC PLAN FOR BOUYGUES TELECOM MOBILE FIXED BTOC FIXED BTOB Become N°2 +3m BtoC fiber Double the market share in mobile customers in fixed BtoB Provide the best customer service Broadband network: joint leader in terms of Employee dedication: network coverage, capacity and quality Remain
Slide 27: Leverage success factors and implement new initiatives
Leverage the factors that have driven Bouygues Telecom’s success since 2015 (duplicate) and implement new initiatives (accelerate) ⚫ TO BE RECOGNIZED BY CUSTOMERS AS THE NUMBER TWO MOBILE OPERATOR ◼ Benefit from the brand’s repositioning “We are made to be together” introduced in 2020 ◼ Consolidate
Slide 28: Outlook for Bouygues Telecom
OUTLOOK FOR BOUYGUES TELECOM This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 ⚫ IN 2021, BOUYGUES TELECOM WILL LAUNCH THE FIRST STAGE OF ITS STRATEGIC PLAN: RAMPING UP IN FTTH, AND IN MOBILE WITH THE INTEGRATION OF EIT IT EXPE
Slide 29: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK FOR THE GROUP ⚫ ANNEXES 29
Slide 30: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m 2019 2020 Change Sales 37,929 34,694 -9%a Current operating profit 1,676 1,222 -€454m Other operating income and expenses 20b (98)c -€118m Operating profit 1,696 1,124 -€572m Cost of net debt (207) (167) +€40m Interest expense on lease obligations (57) (53)
Slide 31: Condensed consolidated balance sheet
CONDENSED CONSOLIDATED BALANCE SHEET End Dec Of which: End Dec €m 2019 Change • Intangible assets: +€517m, including 5G licences 2020 restateda (+€608m) and impairment of Unify brands (-€17m) • Goodwill: +€691m, including EIT (+€756m) and Non-current assets 20,365 21,497 +€1,132m impairment of Unify
Slide 32: Change in net debt position in 2020 (1/2)
CHANGE IN NET DEBT POSITIONa IN 2020 (1/2) €m Net debt at Net debt at 31/12/2019 31/12/2020 Alstomb Operations +450 -747 (1,981) (2,222) +37 +1,275 Acquisitions/ Capital -687 disposalsc transactionsd -87 and other Dividends 5G frequencies 2019 (3,612) +1,405e -180f +182g -710 0 +693 (2,222) (a) See
Slide 33: Change in net debt position in 2020 (2/2)
CHANGE IN NET DEBT POSITIONa IN 2020 (2/2) €m Breakdown of operations Repayment of Net cash flowb lease obligations Net capexc +2,709 Changes in WCR related to -372 property, plant & Changes in WCR equipment and related to intangible assets, operating and otherc -1,612 activities +73 +477 +1,275 +2,
Slide 34: Contribution to net capital expenditure by sector of activity
CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 521 303 -€218m o/w Bouygues Construction 189 114 -€75m o/w Bouygues Immobilier 11 5 -€6m o/w Colas 321 184 -€137m TF1 242 283 +€41m Bouygues Telecom 836 1,025a +€189m Bouygues SA & other 3 1 -€2
Slide 35: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ GROUP OUTLOOK ⚫ ANNEXES 35
Slide 36: An agile, responsible and resilient Group
AN AGILE, RESPONSIBLE AND RESILIENT GROUP ◼ Activities that meet essential needs (housing, transportation, communication, information, entertainment, etc.), with business models which have not been undermined by the pandemic ◼ Business segments able to rebound swiftly and strongly > The business seg
Slide 37: Capital allocation policy maintained
CAPITAL ALLOCATION POLICY MAINTAINED, REFLECTING THE GROUP’S CONFIDENCE IN ITS STRATEGY Grow the construction businesses Energies & Services Strong Investment Grade rating e.g. strengthen expertise in renewable energies S&P (electric vehicle charge point infrastructure, solar power, green hydrogen)
Slide 38: Outlook for the Group
OUTLOOK FOR THE GROUP This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 ⚫ RELYING ON A PARTICULARLY STRONG FINANCIAL POSITION, THE GROUP WILL INVEST IN 2021 TO STRENGTHEN ITS BUSINESS SEGMENTS AND ACCELERATE THEIR GROWTH IN THE
Slide 39: The Group's CSR roadmap
THE GROUP’S CSR ROADMAP The Group has set four priorities for 2021: health and well-being in the workplace, gender balance, the climate, and biodiversity ◼ The protection of health and improved well-being for employees in the workplace > Boost the Quality of Life at Work initiative > Continue the ro
Slide 40: Calendar
CALENDAR ◼ 22 April 2021 Combined Annual General Meeting (2.30pm CET) ◼ 20 May 2021 First-quarter 2021 results (7.30am CET) ◼ 26 August 2021 First-half 2021 results (7.30am CET) ◼ 18 November 2021 Nine-month 2021 results (7.30am CET) Bourse du Commerce building – Paris 40
Slide 41: Questions & Answers
QUESTIONS & ANSWERS Martin Bouygues Olivier Roussat Pascal Grangé Chairman CEO Deputy CEO Chief Financial Officer Philippe Bonnave Pascal Minault Frédéric Gardès Gilles Pélisson Richard Viel Chairman and CEO Chairman Chairman and CEO Chairman and CEO Chairman and CEO 41
Slide 42: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK FOR THE GROUP ⚫ ANNEXES 42
Slide 43: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€bn) France +3% Backlog by geographic region (at end-Dec 2020) 14.5 12.3 12.7 8.7 7% 2% France 7.2 +10% 39% 8.0 Asia-Pacific 34% €22bn Europe (excl. France) 5.8 Americas 5.1 4.8 -6% Africa and Middle East 18% 2018 2019 2020 (a)
Slide 44: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€bn) Commercial property -32% 2.6 2.7 0.3 0.6 1.8 0.2 -60% 2.3 2.1 1.6 -23% 2018 2019 2020 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial property) Hôtel des Postes – S
Slide 45: Key figures at Colas
ANNEX KEY FIGURES AT COLAS International and French Backlog (€bn) overseas territories a -1% Mainland France 9.2 9.2 8.5 -2%b 5.1 6.1 6.0 3.4 +2%c 3.1 3.1 End-December 2018 End-December 2019 End-December 2020 Colas Rail project – Poland (a) Up 1% at constant exchange rates and excluding principal di
Slide 46: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Sales from mobile 719 734 779 754 2,986 751 776 804 818 3,149 816 805 830 840 3,291 services (€m) Sales from fixed 312 309 319 330 1,270 343 356 367
Slide 47: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Bouygues Telecom Bouygues Telecom Bouygues Telecom Bouygues Telecom at end-December 2019 at end-December 2020 target for end-2022 target for end-2026 35.0 27.0 +6 17.7 11.8 5.1 4.0 10.2 6.8 1.0 2.3 c c Very dense area Medium dense area (AMII) Medium dense ar
Slide 48: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m 2019 2020 Change constant fxa Construction businessesb 29,575 26,208 -11% -11% o/w Bouygues Construction 13,355 12,047 -10% -10% o/w Bouygues Immobilier 2,706 2,032 -25% -25% o/w Colas 13,688 12,297 -10% -9% TF1 2,337 2,082 -11% -11% Bouygues Telecom 6,058
Slide 49: Contribution to Group EBITDA after Leases by sector
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 1,640 1,300 -€340m o/w Bouygues Construction 591 424 -€167m o/w Bouygues Immobilier 117 47 -€70m o/w Colas 932 829 -€103m TF1 514 454 -€60m Bouygues Telecom 1,411 1,502 +€91m Bouygues S
Slide 50: Contribution to Group current operating profit by sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 910 437 -€473m o/w Bouygues Construction 378 171 -€207m o/w Bouygues Immobilier 99 12 -€87m o/w Colas 433 254 -€179m TF1 255 190 -€65m Bouygues Telecom 540 623 +€83m Bouygues SA & o
Slide 51: Contribution to Group operating profit by sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 859 387 -€472m o/w Bouygues Construction 355 207 -€148m o/w Bouygues Immobilier 99 (5) -€104m o/w Colas 405 185 -€220m TF1 255 115 -€140m Bouygues Telecom 610 651 +€41m Bouygues SA & other
Slide 52: Contribution to net profit attributable by sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 623 214 -€409m o/w Bouygues Construction 325 152 -€173m o/w Bouygues Immobilier 46 (29) -€75m o/w Colas 252 91 -€161m TF1 67 24 -€43m Bouygues Telecom 343 377 +€34m Alstom 238
Slide 53: Contribution to Group net cash flow by sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 1,391 992 -€399m o/w Bouygues Construction 491 355 -€136m o/w Bouygues Immobilier 120 (4) -€124m o/w Colas 780 641 -€139m TF1 416 373 -€43m Bouygues Telecom 1,275 1,422 +€147m Bouygues SA & o
Slide 54: Contribution to Group free cash flow by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 675 481 -€194m o/w Bouygues Construction 204 141 -€63m o/w Bouygues Immobilier 100 (18) -€118m o/w Colas 371 358 -€13m TF1 156 69 -€87m Bouygues Telecom 301 254 -€47m Bouygues SA & other 247
Slide 55: Contribution to Group free cash flow after WCR by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOW AFTER WCRa BY SECTOR OF ACTIVITY €m 2019 2020 Change Construction businesses 704 1,040 +€336m o/w Bouygues Construction 58 393 +€335m o/w Bouygues Immobilier 305 (24) -€329m o/w Colas 341 671 +€330m TF1 124 172 +€48m Bouygues Telecom 135 40 -€95m Bouygues S
Slide 56: Net surplus cash/net debt
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End-Dec End-Dec €m Change 2019 2020 Bouygues Construction 3,113 3,143 +€30m Bouygues Immobilier (279) (306) -€27m Colas (367) (7) +€360m TF1 (127) (1) +€126m Bouygues Telecom (1,454) (1,740) -€286m Bouygues SA & other (3,108) (3,070) +€38m Group net surplus c
Slide 57: Glossary (1/2)
ANNEX GLOSSARY (1/2) SALES FROM SERVICES (BOUYGUES TELECOM) COMPRISE: ◼ Sales billed to customers, which include: In mobile: o For BtoC customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services o For BtoB customers: sales from outgoing call charge
Slide 58: Glossary (2/2)
ANNEX GLOSSARY (2/2) ABPU (AVERAGE BILLING PER USER): ◼ Sales billed to customers divided by the average number of customers over the period EBITDA AFTER LEASES (EBITDAAL) ◼ Current operating profit after taking account of the interest expense on lease obligations, before (i) net charges for depreci