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Bouygues SA — Bouygues Construction — Investor Presentation (April 2012)
27 slides from Bouygues SA's investor presentation, Apr 4, 2012
Slide 1: Introduction to Bouygues Construction
INTRODUCTION TO BOUYGUES CONSTRUCTION Pascal GRANGÉ - Deputy CEO & CFO 4th April 2012
Slide 2: 4th April 2012
This presentation contains projections and forecasts. They express objectives based on the current assessments and estimates of the Group’s senior management which are subject to many factors and uncertainties. The following factors among others set out in the Registration Document (Document de Réfé
Slide 3: Agenda
Agenda PROFILE BASIC REPORTING RULES STRATEGY STRENGTHS OPPORTUNITIES 3
Slide 4: Profile
Profile A world leader: n°4 “top international contractor” according to 2011 ENR ranking1 A recognized expertise at every stage of a project from design to construction, operation, maintenance, and including financing arrangements A full-service contractor in building & civil works, electrical
Slide 5: 2011 key figures
2011 key figures Breakdown of activity 16% Building and civil works 84% Electrical contracting Learning Centre, Ecole Polytechnique Fédérale de Financials Lausanne, Switzerland, 2009 €9.8bn revenue €226m net profit €2.9bn net cash position Key activity indicators A wide range of projec
Slide 6: A global player
A global player Sales by region in 2011 Rest of Europe 22% France 55% Americas 3% Africa - Middle Asia - East Pacific 9% 11% Ability to seize opportunities worldwide 6
Slide 7: Know-how
Know-how With an extensive range of know-how, Bouygues Construction is involved throughout the entire value chain both upstream and downstream of construction activity Legal engineering Operation Design Construction Maintenance Financial engineering PROPERTY DEVELOPMENT / DESIGN-BUILD OPERATIONS P
Slide 8: Agenda
Agenda PROFILE BASIC REPORTING RULES STRATEGY STRENGTHS OPPORTUNITIES 8
Slide 9: Basic reporting rules
Basic reporting rules Cautious reporting rules providing order book safety A project is booked once the notice to proceed with the works and the first advanced payment are received Order Book at end N+1 = Order Book at end N + Order intake N+1 – Revenue N+1 At 1st January, order book covers
Slide 10: Example of a project schedule
Example of a project schedule Nature of the project: PPP for design, construction, operation/maintenance and financing of 2 schools in France Customer: Lorraine Regional Council Total amount of the project: ~€80m (o/w €20m for maintenance) Duration of the works: 44 months Key figures 100
Slide 11: A project life cycle
A project life cycle Progress in sales and margins of a fictitious project SALES MARGIN 50% 100% 100 80 PROGRESS % 60 40 Agreement settled Claim by the client asking for further with the client modifications 20 Bad weather generating delays in earthworks 0 TIME 10% 20% 30% 40% 50% 60% 70% 80% 90%
Slide 12: Agenda
Agenda PROFILE BASIC REPORTING RULES STRATEGY STRENGTHS OPPORTUNITIES 12
Slide 13: Strategy
Strategy Expand the business through four strategic priorities Development of international business: position ourselves on promising markets thanks to two complementary approaches with one-off major projects on a long-term basis through local subsidiaries This flexible growth model gives us t
Slide 14: Agenda
Agenda PROFILE BASIC REPORTING RULES STRATEGY STRENGTHS OPPORTUNITIES 14
Slide 15: A solid track record
A solid track record A solid track record to manage complex projects all around the world based on Human resources’ commitment Strong technical expertise throughout the entire value chain Ability to develop innovative “tailor-made” cost-effective solutions answering customers’ needs Long t
Slide 16: Focus on long-term sustainability
Focus on long-term sustainability Focus on controlling operating and financial risks in order to ensure long term performance Cautious guidelines Commercial selectivity (preference is given to margin) Keeping a positive cash situation throughout the duration of a project Escalation clauses
Slide 17: Increasing visibility
Increasing visibility Thanks to its strategy, Bouygues Construction has won an increasing number of large turnkey projects as well as contracts generating long-term revenue As a result, both maturity and value of the order book have improved x1.8 2005 2011 15.3 x1.9 7.8 14.2 12.3 12.0 x3.9 11.3
Slide 18: Ability to adapt
Ability to adapt Order book length giving time to adapt On average 70-80% of the forecasted yearly revenue is secured at 1st January A variable cost structure providing flexibility 2011 cost breakdown (% of sales) Purchases used in production: 55% Personnel costs: 24% External charges1
Slide 19: Robust financial profile
Robust financial profile 5% CAGR Sales (€m) 9,497 9,546 9,235 9,802 8,340 Good resilience of sales thanks to an order 6,131 6,923 book smoothing the business cycles 2005 2006 2007 2008 2009 2010 2011 Operating profit (€m) 314 335 315 353 5,0% 308 262 238 A solid profitability for a business with
Slide 20: Agenda
Agenda PROFILE BASIC REPORTING RULES STRATEGY STRENGTHS OPPORTUNITIES 20
Slide 21: Growing infrastructure needs
Growing infrastructure needs Growing infrastructure needs worldwide Public and private non-residential buildings (schools, hospitals and hotels, etc.) Transport: high-speed train lines, metro and tramways, canals, airports, etc. Energy: nuclear and thermal power plants Strong underlying tr
Slide 22: Example of Hong Kong
Example of Hong Kong A promising market A geography demanding transport infrastructures (tunnels, bridges, highways) A dynamic economic environment A proactive public policy of investing in infrastructure ~20 projects to be awarded shortly representing more than of HK $250bn Bridges, exp
Slide 23: Example of Qatar
Example of Qatar OPPORTUNITIES: example of Qatar The Soccer World cup will take place in Qatar in 2022 Building and civil work projects for a total amount of €70bn Example of Bouygues Nature of Project Amount Construction references Sydney and Cairo underground Metro lines and metro stations $35
Slide 24: Full service offering
Full service offering Increasing market for full service offering Comprehensive solutions including a large range of services Legal framework favourable to PPPs in a growing number of countries Extension to small/medium sized projects as well as infrastructure maintenance is an emerging tren
Slide 25: Strong pipeline of potential projects
Examples of PPP/PFI/concessions OPPORTUNITIES: opportunities strong pipeline of potential projects Road and motorway: L2 bypass in Marseille Railway: Nîmes-Montpellier bypass PPP* Hydraulic infrastructures: Canal Seine-Nord PPP, Aisne-Meuse dams Engineering structure: Kerino tunnel project
Slide 26: Sustainable construction
Sustainable construction Increasing market demand for sustainable construction Becoming a pre-requisite for new buildings Progressively expanding in the housing and commercial property renovation market Supported by regulations Target to reduce energy consumption of existing non residentia
Slide 27: IR Contact
IR CONTACT Valérie AGATHON, Director Investor Relations Tel : +33 1 44 20 12 04 e-mail : vagathon@bouygues.com Corporate information : www.bouygues.com BOUYGUES – 32 avenue Hoche 75378 Paris Cedex 08 - FRANCE 27
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