Bouygues Sa · EURONEXT:EN
Bouygues Sa — 9M 2017 Earnings Presentation
51 slides from Bouygues Sa's earnings presentation, Nov 16, 2017
Slide 1: Nine-Month 2017 Results Presentation
NINE-MONTH 2017 RESULTS PRESENTATION 16 NOVEMBER 2017
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 ANNEX 3
Slide 4: 9M 2017 Highlights
9M 2017 HIGHLIGHTS Sharp increase in Group results and profitability Good commercial momentum in all businesses The Group is on track to achieve its 2017 targets The new terminal of Iqaluit airport - Canada 4
Slide 5: Sharp increase in Group results
SHARP INCREASE IN GROUP RESULTS 9M 9M €m Change CURRENT OPERATING PROFIT UP 37% YEAR-ON-YEAR, 2016 2017 DRIVEN BY BOUYGUES TELECOM AND TF1 PROFITABILITY Sales 23,113 23,828 +3%a Current operating margin up 1 point year-on-year o/w France 14,520 14,987 +3% (up 0.9 points excluding Nextdoorb) o/w inte
Slide 6: Change in net debt position in 9M 2017 (1/2)
CHANGE IN NET DEBT POSITION IN 9M 2017 (1/2) €m Net debt at Net debt at 31-12-2016 30-09-2017 (1,866) +147 +24 0 -606 Operation (3,707) Acquisitions/ Otherb 700 MHz Disposalsa Dividends frequencies -1,406 9M 2016 (2,561) +724c +25 -655 -117 -1,306 (3,890) (a) Including the disposal of AB Group, the
Slide 7: Change in net debt position in 9M 2017 (2/2)
CHANGE IN NET DEBT POSITION IN 9M 2017 (2/2) In €m Breakdown of operation Net cash flowa Net capex Change in operating WCR and otherb -1,035 +1,597 -1,406 -1,968 9M 2016 +1,411 -1,075 -1,642 -1,306 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR related t
Slide 8: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 8
Slide 9: Construction businesses
CONSTRUCTION BUSINESSES RENOVATION OF A7 BETWEEN CASABLANCA AND MARRAKECH - MAROCCO A POSITIVE ENERGY RESIDENCE IN ANGLET - FRANCE Renovation of the Crillon Hotel - Paris - France Renovation of Mount Panorama circuit - Australia Eco-neighborhood Faubourgs of Anfa - Casablanca - Morocco 9
Slide 10: Backlog remains at a very high level
BACKLOG REMAINS AT A VERY HIGH LEVEL Backlog (€m) +8%a €30.3bn €29.0bn €28.1bn €27.4bn 2,967 2,274 +9% 2,144 2,722 BACKLOG AT END-SEPTEMBER 2017: €30.3bn 7,666 +7% 7,083 7,671 7,178 Up +9% year-on-year at constant exchange rates 56% of the backlog at Bouygues +8% 17,626 19,681 18,225 19,669 Construc
Slide 11: Good commercial performance in France
GOOD COMMERCIAL PERFORMANCE IN FRANCE Backlog in France (€m) BACKLOG UP 13% YEAR-ON-YEAR +13% €14.4bn €14.8bn Above-market growth in residential €13.0bn €13.1bn property at Bouygues Immobilier 2,047 2,784 +9% 2,132 2,549 > +21% in residential property reservationsa 3,226 3,290 +14% in 9m 2017 vs 9m
Slide 12: Grand Paris Métropole: urban development projects won
GRAND PARIS METROPOLE: 10 URBAN DEVELOPMENT PROJECTS WONa Antony - Antonypôle (62,000 sqm) Sevran - Terre d’eaux (32.8 hectares) Thiais - Orly - Parcs en scène Noisy-le-sec - Triangle Ouest Courcouronnes - Canal Europe Noisy-le-sec - Plaine Ouest (19,000 sqm) Vitry-sur-Seine - Plug & Live (88,000 sq
Slide 13: Continued positive dynamic in international markets (1/2)
CONTINUED POSITIVE DYNAMIC IN INTERNATIONAL MARKETS (1/2) International backlog (€m) +3%a €16.1bn €15.0bn €15.5bn 142 BACKLOG UP 6% YEAR-ON-YEAR AT CONSTANT 173 183 +6% €13.1bn EXCHANGE RATES 97 4,182 4,376 +2% 4,302 4,445 MAJOR CONTRACTS WON IN Q3 2017 Building of the second highest tower 11,746 10
Slide 14: Continued positive dynamic in international markets (2/2)
CONTINUED POSITIVE DYNAMIC IN INTERNATIONAL MARKETS (2/2) MAIN INTERNATIONAL ORDERS TAKEN AS OF END-SEPTEMBER 2017 UK SWITZERLAND Hinkley Point (€178m) Eco-neighbourhood in Crissier (€129m) Housing development Pontoon Dock London (€93m) Residential complex in Bern (€97m) CANADA Croydon District – Lo
Slide 15: Bouygues, an urban operator that makes the city smarter
BOUYGUES AN URBAN OPERATOR THAT MAKES THE CITY SMARTER Dijon railway station concourse - France 15
Slide 16: Dijon, France's first smart city
DIJON, FRANCE’S FIRST SMART CITY BOUYGUES, AS LEADER OF A CONSORTIUMa, WON THE CONTRACT TO CARRY OUT AND MANAGE A CONNECTED CONTROL CENTER FOR PUBLIC FACILITIES OF GRAND DIJON MÉTROPOLE Grand Dijon Métropole: 24 municipalities and 250,000 residents A 12-year contract OPPORTUNITIES Better management
Slide 17: An integrated and innovative offering
AN INTEGRATED AND INNOVATIVE OFFERING Citizens Representatives Companies and public services Single control centre available Geo-tracking of 205 vehicles 24/7 year round 148 traffic light junctions Automatic bollards 34,000 street lamps (100% LED) 220 CCTV Wi-Fi hot spots 1,600 smart car parking pla
Slide 18: A single control center operating an urban hypervisor
A SINGLE CONTROL CENTER OPERATING AN URBAN HYPERVISOR 18
Slide 19: Key figures in the construction businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES lfl & 9M 2017 CURRENT OPERATING MARGIN REFLECTING €m 9M 9M Change constant 2016 2017 fxa Sharp rise year-on-year in current operating profit at Bouygues Construction and Bouygues Immobilier Sales 18,219 18,679 +3% +3% o/w France 9,670 9,896 +2% +2% Strong m
Slide 20: Koh-Lanta 2017 in Fiji islands
Koh-Lanta 2017 in Fiji islands 20
Slide 21: Key figures at TF1
KEY FIGURES AT TF1 IMPROVEMENT OF TF1 PROFITABILITY €m 9M 2016 9M 2017 Change 2% growth in advertising sales year-on-year Sales 1,427 1,466 +3%a Current operating margin of 7.9%, up 4.6 points o/w TF1 group advertising 1,065 1,082 +2% > Transformation of business model Current operating profit 47 11
Slide 22: 22
22
Slide 23: Steady growth continues in mobile
STEADY GROWTH CONTINUES IN MOBILE 13.9M MOBILE CUSTOMERS AT END-SEPTEMBER 2017 Plan subscriber base excluding M2Ma (millions of customers) +940,000 customers in 9m 2017 10.2m 10.1m +295,000 customers in Q3 2017 9.9m 9.8m 10.2M MOBILE PLAN CUSTOMERS EXCLUDING M2Ma 9.5m 9.6m AT END-SEPTEMBER 2017 9.1m
Slide 24: Strong commercial performance in fixed
STRONG COMMERCIAL PERFORMANCE IN FIXED Total net growth of fixed broadbanda +243,000 FIXED CUSTOMERS IN 9M 2017 (‘000 of customers) +110,000 customers in Q3 2017 Actual Target set in 2014 On track to reach 1m additional fixed customers by end-2017 (vs end-2014) FTTHa CONTRIBUTED 36% OF NET GROWTH IN
Slide 25: Continued FTTH roll-out
CONTINUED FTTHa ROLL-OUT In millions of premises Total premises Bouygues Telecom Bouygues Telecom on the market at end-Sept 2017 at end 2019 18M PREMISES SECUREDb AT END-SEPT. 2017 Very 1 In negotiation Secured o/w Dense 5.5 Secured o/w 5.5 4.5 4.5 marketedc Area 2 marketedc +2 million vs end-June 2
Slide 26: 9-month sales up 6.4% year-on-year
9-MONTH SALES UP 6.4% YEAR-ON-YEAR €m Q1 2017 ΔYoY Q2 2017 ΔYoY Q3 2017 ΔYoY 9M 2017 ΔYoY Sales 1,222 8.0% 1,212 4.5% 1,293 6.7% 3,727 +6.4% o/w sales from network 1,037 6.8% 1,046 4.2% 1,095 5.0% 3,179 +5.3% o/w excl. incoming traffic 918 8.1% 931 5.4% 978 5.7% 2,827 +6.4% 6.4% GROWTH YEAR-ON-YEAR
Slide 27: Sharp improvement in profitability
SHARP IMPROVEMENT IN PROFITABILITY €m 9M 2016 9M 2017 Change Sales 3,503 3,727 +6.4% EBITDA UP 27% YEAR-ON-YEAR (+€185m) Margin of 27.7% in 9M 2017 (+4.6 points) o/w sales from network 3,018 3,179 +5.3% o/w excl. incoming 2,658 2,827 +6.4% traffic CAPITAL GAIN ON DISPOSAL OF SITES TO CELLNEX INCLUDE
Slide 28: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 28
Slide 29: Condensed consolidated income statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) €m 9M 2016 9M 2017 Change Sales 23,113 23,828 +3%a Current operating profit 714 976 +37% Other operating income and expenses (144)b 82c +€226m Operating profit 570 1,058 +86% Cost of net debt (171) (170) +€1m o/w financial income 20 17 -€3m o/w financial
Slide 30: Condensed consolidated income statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) €m 9M 2016 9M 2017 Change Income tax (138) (257) -€119m Share of net profit of joint ventures and associates 91 151 +€60m o/w Alstom 36 105 +€69m Net profit from operations 355 794 +€439m Net profit attributable to non-controlling interests (10) (81) -€7
Slide 31: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 31
Slide 32: Outlook for 2017 confirmed
OUTLOOK FOR 2017 CONFIRMED 9-MONTH 2017 RESULTS VALIDATE THE GROUP’S OBJECTIVE TO IMPROVE PROFITABILITY IN 2017 The current operating profit and margin in the construction businesses should continue to improve versus 2016 (excluding the capital gain on the sale of 50% of Nextdoor and on the remeasur
Slide 33: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 33
Slide 34: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Backlog by region (end-Sept. 2017) Order intakea (€m) International 5% €9,1bn +6% 4% €8,0bn €7,6bn €8,1bn 31% 3,972 5,705 3,938 +3% 3,841 4,076 3,407 3,802 4,151 +9% 44% 16% 9M 2014 9M 2015 9M 2016 9M 2017 France Asia and Middle East Europe (excl. Fr
Slide 35: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€m) +14% Commercial property €1,9bn €1,7bn €1,4bn 194 -16% €1,4bn 231 420 191 1,717 +19% 1,184 1,443 992 9M 2014 9M 2015 9M 2016 9M 2017 (a) Net of cancellations (residential property) and firm orders which cannot be cancel
Slide 36: Key figures at Colas
ANNEX KEY FIGURES AT COLAS €m 9M 2016 9M 2017 Change Backlog (€m) Sales 8,115 8,617 +6%a €7,7bn €7,7bn +7%a o/w France 4,256 4,470 +5% €7,1bn €7,2bn o/w International 3,859 4,147 +7% Current operating profit 241 179 -€62m 3,226 3,290 +14% Current operating margin 3.0% 2.1% -0.9pts 2,901 2,876 Operat
Slide 37: Grand Paris: contracts won at end-September 2017
ANNEX GRAND PARIS: CONTRACTS WON AT END-SEPTEMBER 2017 Extension of Line 14 T4 tramway Excavation of a 2.2-km tunnel and Laying of track and road work construction of 4 stations Duration of the work: 2016-2019 Duration of the work: 2015-2018 Contract amount: €49m Contract amount: €128m Bagneux stati
Slide 38: Key indicators at Bouygues Telecom (1/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (1/2) Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 Q3 2017 '000 customers (end of period) Mobile customer base 12,130 12,433 12,660 12,996 12,996 13,359 13,641 13,935 Mobile customer base 10,251 10,421 10,533 10,682 10,682 10,773 10,819 10,874 excl. M
Slide 39: Key indicators at Bouygues Telecom (2/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (2/2) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Mobile ARPUa €/month/subscriber 22.4 22.4 23.0 22.7 22.5 22.3 22.5 Plan ARPUa €/month/subscriber 23.6 23.6 24.1 23.8 23.6 23.2 23.3 Prepaid ARPUa €/month/subscriber 7.0 7.2 7.3 7.1 6.9 7.2 7.3 Data
Slide 40: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY lfl & €m 9M 2016 9M 2017 Change constant fx Construction businessesa 18,219 18,679 +3% +3% o/w Bouygues Construction 8,698 8,521 -2% -1% o/w Bouygues Immobilier 1,626 1,746 +7% +7% o/w Colas 8,115 8,617 +6% +6% TF1 1,427 1,466 +3% +1% Bouygues Telecom 3,503 3,727 +6
Slide 41: Contribution to Group EBITDA by sector of activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 891 866 -€25m o/w Bouygues Construction 335 317 -€18m o/w Bouygues Immobilier 68 126 +€58m o/w Colas 488 423 -€65m TF1 193 256 +€63m Bouygues Telecom 697 882 +€185m Holding company and other (
Slide 42: Contribution to Group current operating profit by sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 568 595 +€27m o/w Bouygues Construction 235 277 +€42m o/w Bouygues Immobilier 92 139 +€47m o/w Colas 241 179 -€62m TF1 47 115 +€68m Bouygues Telecom 124 290 +€166m Holding com
Slide 43: Contribution to Group operating profit by sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 512 590 +€78m o/w Bouygues Constructiona 220 277 +€57m o/w Bouygues Immobiliera 90 139 +€49m o/w Colasb 202 174 -€28m TF1c (22) 98 +€120m Bouygues Telecomd 117 395 +€278m Holding comp
Slide 44: Contribution to net profit attributable to the Group by sector
ANNEX CONTRIBUTION TO NET PROFIT ATT. TO THE GROUP BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 379 468 +€89m o/w Bouygues Construction 165 233 +€68m o/w Bouygues Immobilier 53 81 +€28m o/w Colas 161 154 -€7m TF1 (6) 37 +€43m Bouygues Telecom 57 229 +€172m Alstom 36 105 +€
Slide 45: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-Sept End-Sept €m Change 2016 2017 2016 Non-current assets 17,432 17,576 +€144m 17,289 Current assets 17,301 17,702 +€401m 16,023 Held-for-sale assets and operations 121 67 -€54m - TOTAL ASSETS 34,854 35,345 +€491m 33,312 Shareholders' equity 9,4
Slide 46: Contribution to Group net cash flow by sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 752 805 +€53m o/w Bouygues Construction 288 292 +€4m o/w Bouygues Immobilier 51 79 +€28m o/w Colas 413 434 +€21m TF1 142 207 +€65m Bouygues Telecom 629 672 +€43m Holding company and oth
Slide 47: Contribution to net capital expenditure by sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 320 270 -€50m o/w Bouygues Construction 127 65 -€62m o/w Bouygues Immobilier 17 12 -€5m o/w Colas 176 193 +€17m TF1 147 154 +€7m Bouygues Telecom 605 605 - Holding company and other
Slide 48: Contribution to Group free cash flow by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m 9M 2016 9M 2017 Change Construction businesses 432 535 +€103m o/w Bouygues Construction 161 227 +€66m o/w Bouygues Immobilier 34 67 +€33m o/w Colas 237 241 +€4m TF1 (5) 53 +€58m Bouygues Telecom 24 67 +€43m Holding company and othe
Slide 49: Net debt / net surplus cash
ANNEX NET DEBT (-) / NET SURPLUS CASH (+) End-Sept End-Sept €m Change 2016 2017 Bouygues Construction 2,758 2,698 -€60m Bouygues Immobilier (274) (409) -€135m Colas (17) (270) -€253m TF1 148a 297 +€149m Bouygues Telecom (1,123)b (834)c +€289m Holding company and other (5,382)d (5,189) +€193m TOTAL (
Slide 50: Debt maturity schedule at end-September 2017
ANNEX DEBT MATURITY SCHEDULE AT END-SEPTEMBER 2017 Available cash: €8.9bn €10bn €9bn €8bn Undrawn MLT facilities €7bn €5.9bn €6bn €5bn €4bn €3bn Cash €3.0bn €2bn €1bn €0bn 50
Slide 51: Impacts of exceptional items on net profit attributable to the Group
ANNEX IMPACTS OF EXCEPTIONAL ITEMS ON NET PROFIT ATTRIBUTABLE TO THE GROUP Net profit attributable to the Group excl. exceptional items €m 9M 2016 9M 2017 Change Net profit attributable to the Group 345 713 +€368m o/w non-current income/charges related to the construction businesses (net of taxes) 3