Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2021 Earnings Presentation
55 slides from Bouygues Sa's earnings presentation, Aug 26, 2021
Slide 1: First-Half 2021 Results Presentation
FIRST-HALF 2021 RESULTS 26 AUGUST 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 ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 3
Slide 4: Highlights of H1 2021
HIGHLIGHTS OF H1 2021 ⚫ THE EXCELLENT H1 2021 RESULTS DEMONSTRATE THE GROUP’S RESILIENCE IN AN ENVIRONMENT STILL IMPACTED BY THE PANDEMIC ◼ Strong growth in sales and earnings vs H1 2020 ◼ H1 2021 results returned to pre-crisis level ⚫ VERY ROBUST GROUP FINANCIAL STRUCTURE AT END-JUNE 2021 ◼ Net deb
Slide 5: Group key figures
GROUP KEY FIGURES Change Change €m H1 2020 H1 2021 H1 2019 (vs 2020) (vs 2019) Sales 14,758 17,417 +18%a 17,446 0% o/w France 8,539 10,852 +27% 10,553 +3% o/w international 6,219 6,565 +6% 6,893 -5% Current operating profit/(loss) (132) 471 +€603m 453 +€18m Current operating margin -0.9% 2.7% +3.6 p
Slide 6: Net debt at end-June at a historical low
NET DEBT AT END-JUNE AT A HISTORICAL LOW End-Dec End-June End-June €m Change Change 2020 2021 2020 Shareholders' equity 11,803 11,710 -€93m 11,451 +€259m Net surplus cash (+)/Net debt (-)a (1,981) (2,813) -€832m (3,905) +€1,092m Net gearing 17% 24% +7 pts 34% -10 pts ⚫ BUSINESS SEASONALITY EXPLAINS
Slide 7: Group liquidity at a record level
GROUP LIQUIDITY AT A RECORDa LEVEL ⚫ AVAILABLE CASH AT END-JUNE 2021: €11.8BN Available cash (€bn) Debt maturity schedule at end-June 2021 (€bn) 3 3.6 Evenly spread debt 2 maturity schedule €11.8bn 1 8.2 No covenants on medium/long-term 0 facilities 2021 2022 2023 2024 2025 2026 2027 2028 Undrawn ML
Slide 8: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 8
Slide 9: Construction businesses
CONSTRUCTION BUSINESSES 9 Samaritaine Store 3 – Paris – France – Photo credits: Nicolas Grosmond
Slide 10: Backlog in the construction businesses (1/2)
BACKLOG IN THE CONSTRUCTION BUSINESSES (1/2) ⚫ BACKLOG AT A HIGH LEVEL AT END-JUNE 2021 ◼ 64% of the backlog at Bouygues Construction and Colas in international markets (+1 pt vs end-June 2020) Backlog in the construction businesses (€bn) a 35.7 33.7 33.8 33.3 New St Paul's Hospital (€190m) – Canada
Slide 11: Backlog in the construction businesses (2/2)
BACKLOG IN THE CONSTRUCTION BUSINESSES (2/2) Backlog in the construction businesses (€bn) a -7% ◼ Colas backlog up 4%b year-on-year 35.7 2.4 33.3 -18% 2.0 > Resumption in calls for tender in the roads activity in France: order intake up 22% vs H1 2020 10.1 +3%b 10.3 > Significant order intake in the
Slide 12: Key figures in the construction businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES Change Change €m H1 2020 H1 2021 H1 2019 (vs 2020) (vs 2019) Sales 10,842 12,822 +18%a 13,398 -4% o/w France 4,716 6,381 +35% 6,591 -3% o/w international 6,126 6,441 +5% 6,807 -5% Current operating profit/(loss) (437) 83 +€520m 72 +€11m o/w Bouygues Constru
Slide 13: Colas signs agreement to acquire Destia in Finland
COLAS SIGNS AGREEMENT TO ACQUIRE DESTIA IN FINLAND ⚫ CONTINUATION OF TARGETED EXTERNAL GROWTH STRATEGY IN INTERNATIONAL MARKETS ⚫ OPPORTUNITY TO BOOST COLAS’ PRESENCE IN NORTHERN EUROPE AND GAIN A FOOTHOLD IN THE FINNISH MARKET Finland: an attractive market for Colas A major player in the road and r
Slide 14: TF1 promotional visual
HAUT POTENTIEL INTELLEGCTUEL AUDREY MEHDI FLEUROT NEBBOU TFE PARTAGEONS DES ONDES POSITIVES
Slide 15: Key figures at TF1 group
KEY FIGURES AT TF1 GROUP Change Change €m H1 2020 H1 2021 H1 2019 (vs 2020) (vs 2019) Sales 884 1,129 +28%a 1,145 -1% Current operating profit 68 169 +€101m 163 +€6m (a) Up 28% like-for-like and at Current operating margin 7.7% 15.0% +7.3 pts 14.2% +0.8 pts constant exchange rates (b) Including non-
Slide 16: Proposed merger between TF1 and M6 – update
PROPOSED MERGER BETWEEN TF1 AND M6 – UPDATE ◼ End-June 2021: favorable opinions from employee representative bodies at Bouygues, TF1 and M6 ◼ 8 July 2021: the Bouygues and RTL groups signed agreements related to the proposed merger of TF1 and M6 ◼ The closing of the transaction is subject to approva
Slide 17: Telecom
LY, TELECOM
Slide 18: Good commercial performance in mobile
GOOD COMMERCIAL PERFORMANCE IN MOBILE ⚫ 14.5 MILLION MOBILE PLAN CUSTOMERS EXCLUDING MtoMa AT END-JUNE 2021 ◼ +2.3 million customers in H1 2021 > +2.1 million BTBD customers (integrated on 1 January 2021) > +258,000 customers in H1 Mobile plan customers excl. MtoMa Total net growth of mobile custome
Slide 19: Continued ramp-up of FTTH
CONTINUED RAMP-UP OF FTTH Total net growth of FTTH customers (millions of customers) +2.7 +3.0 ⚫ 1.9 MILLION FTTHa CUSTOMERS AT END-JUNE 2021 ◼ +346,000 customers in H1 2021 > +157,000 in Q2 2021 +0.3 > 45% of fixed customers subscribe to an FTTH offer H1 2021 22 remaining 2026 quarters Fixed custom
Slide 20: Faster FTTH roll-out in the regions
FASTER FTTH ROLL-OUT IN THE REGIONS ⚫ 20.9 MILLION FTTH PREMISES MARKETED AT END-JUNE 2021 ◼ Coverage of 91 French departments and over 10,300 municipalities ◼ Stronger presence in PIN zones: +57% premises marketed at end-June 2021 vs end-December 2020 ◼ Larger footprint than DSL, in line with the t
Slide 21: Growth in mobile and fixed ABPU
GROWTH IN MOBILE AND FIXED ABPUa ◼ +€0.7 in mobile to €20.4 at end-Q2 2021 year-on-year ◼ +€0.6 in fixed to €27.8 at end-Q2 2021 year-on-year Mobilea ABPU (€/customer/month) Fixeda ABPU (€/customer/month) +0.7 +0.6 +1.3 +0.3 20.4 * 27.8 27.2 19.7 * 19.4 25.9 Q2 2019 Q2 2020 Q2 2021 Q2 2019 Q2 2020 Q
Slide 22: Key figures at Bouygues Telecom
KEY FIGURES AT BOUYGUES TELECOM €m H1 2020 H1 2021 Change ⚫ 14% GROWTH IN SALES YEAR-ON-YEAR Sales 3,042 3,471 +14%a ◼ Sales from services: +14%, +5% excluding BTBD o/w sales from services 2,404 2,743 +14% ◼ Other sales: +14%, driven by the increase in handset sales o/w other sales 638 728 +14% ⚫ EB
Slide 23: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 23
Slide 24: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m H1 2020 H1 2021 Change Sales 14,758 17,417 +18%a Current operating profit/(loss) (132) 471 +€603m Other operating income and expenses (44)b 80c +€124m Operating profit/(loss) (176) 551 +€727m Cost of net debt (94) (75) +€19m Interest expense on lease obliga
Slide 25: Condensed consolidated balance sheet
CONDENSED CONSOLIDATED BALANCE SHEET Of which: End-Dec End-June • Property, plant & equipment: +€184m €m Change 2020 2021 • Investments in JVs and associates: -€743m, o/w -€711m related to Alstom Non-current assets 21,497 20,942 -€555m Of which: Current assets 19,085 21,143 +€2,058m • Current operat
Slide 26: Change in net debt position in H1 2021 (1/2)
CHANGE IN NET DEBTa POSITION IN H1 2021 (1/2) €m Net debt at Net debt at 31/12/2020 30/06/2021 -9 +6 -17 Acquisitions/ Exercise of Share -735 +984 disposals stock options buybacksc and other Dividends (1,981) Alstomb -1,061 Operations (2,813) H1 2020 (2,222) 0 -39d +18e -2 -5f -1,655 (3,905) (a) See
Slide 27: Change in net debt position in H1 2021 (2/2)
CHANGE IN NET DEBTa POSITION IN H1 2021 (2/2) €m Breakdown of operations Net cash flowb Repayment of lease obligations Net capex +1,300 -178 Change in -790 operating WCR and other -1,061 -1,393 +1,122 Net cash flow including lease expenses H1 2020 +573 -190 -607 -1,431 -1,655 +383 Net cash flow incl
Slide 28: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 28
Slide 29: 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 ⚫ BASED ON ITS H1 2021 RESULTS, THE GROUP IS REVISING ITS GUIDANCE UPWARD ◼ In 2021, sales and current operating profit should be very close to the 2019 le
Slide 30: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 30
Slide 31: Growing the Group's existing businesses to create value
Growing the Group’s existing businesses to create value 31 Hôtel de La Poste building – 31 Paris
Slide 32: A favorable and supportive environment
A FAVORABLE AND SUPPORTIVE ENVIRONMENT 1 2 3 The Group’s businesses They benefit from a They are well positioned have not been undermined positive mid- to long- thanks to their expertise, by the health crisis term market outlook know-how and innovation capability TELECOMS CONSTRUCTION BUSINESSES MED
Slide 33: Boost existing businesses and ramp up growth
BOOST EXISTING BUSINESSES AND RAMP UP GROWTH STRATEGIC TARGETS 1 Strengthen the positioning of the business segments 2 Grow the portfolio of sustainable products and services to seize new business opportunities 3 Enhance differentiation through innovation, quality and proximity Creating Solar farm –
Slide 34: A targeted development strategy while maintaining a robust financial structure
A TARGETED DEVELOPMENT STRATEGY WHILE MAINTAINING A ROBUST FINANCIAL STRUCTURE A selective investment and external growth policy Seize opportunities Target expertise, technologies in growth sectors and geographies Proposed merger between Participation in the Expertise: Technologies: Geographies: TF1
Slide 35: An investment strategy fostering value creation
AN INVESTMENT STRATEGY FOSTERING VALUE CREATION E&S arm Gradual recovery in margins Optimization plan plan for Gradual Proposed merger Optimisation for at margin the E&Srecovery of Ambition a Ambition 20262026 strategic arm strategic plan plan between TF1 and M6b between industrial activities works
Slide 36: Creating value for all stakeholders
CREATING VALUE FOR ALL STAKEHOLDERS CUSTOMERS SUPPLIERS Innovative, Ramp-up of co-innovation sustainable and high quality and co-development partnerships products and services Group resilience EMPLOYEES SHAREHOLDERS Dividend growth policy Career development Competitive shareholder opportunities, ups
Slide 37: Q&A
Q&A
Slide 38: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ GROUP DEVELOPMENT STRATEGY ⚫ ANNEXES 38
Slide 39: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€bn) France -20% Backlog by region (end-June 2021) 6.3 8% 2% 5.3 France 5.0 2.9 4.3 38% Asia-Pacific -30% €21bn Europe (excl. France) 3.0 36% Americas Africa and Middle East 2.4 2.0 2.0 16% 0% H1 2019 H1 2020 H1 2021 (a) Contrac
Slide 40: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€bn) Commercial property +16% 1.0 1.0 0.0 0.9 0.1 0.0 nm 1.0 0.9 1.0 +10% H1 2019 H1 2020 H1 2021 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial Creation of a mixed-use
Slide 41: Key figures at Colas
ANNEX KEY FIGURES AT COLAS International and Backlog (€bn) French overseas territories a +3% Mainland France 9.9 10.1 10.3 +7%b 6.3 6.5 7.0 3.6 3.6 -6%c 3.4 End-June 2019 End-June 2020 End-June 2021 Renewal of the Watchmakers’ rails – Eastern France (a) Up 4% at constant exchange rates and excluding
Slide 42: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Sales from mobile services (€m) 816 805 830 840 3,291 940 952 Sales from fixed services (€m) 389 394 402 417 1,602 423 427 Mobile customer base 18,010 18,178 18,450 18,755 21,043 21,366 Mobile customer base
Slide 43: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETED b (MILLIONS) Bouygues Telecom Bouygues Telecom Bouygues Telecom Bouygues Telecom at end-Dec 2020 at end-June 2021 target for end-2022 target for end-2026 35.0 27.0 +3.2 20.9 17.7 5.6 5.1 11.7 10.2 2.3 3.6 Very dense area Medium dense area (AMII) c Public Initiative Netw
Slide 44: Reminder of estimated impacts of Covid in H1 2020
ANNEX REMINDER OF ESTIMATED IMPACTS OF COVID IN H1 2020 Estimated impact of Covid-19 in H1 2020 (€m) Sales Current operating profit Construction businesses -2,460 -530 o/w Bouygues Construction -1,250 -290 o/w Bouygues Immobilier -400 -50 o/w Colas -810 -190 TF1 -250 -100 Bouygues Telecom -70 -20 44
Slide 45: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m H1 2020 H1 2021 Change constant fxa Construction businessesb 10,842 12,822 +18% +19% o/w Bouygues Construction 5,321 6,337 +19% +20% o/w Bouygues Immobilier 701 981 +40% +40% o/w Colas 4,870 5,591 +15% +16% TF1 884 1,129 +28% +28% Bouygues Telecom 3,042 3,4
Slide 46: Contribution to Group EBITDA by sector of activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (232) 357 +€589m o/w Bouygues Construction (62) 254 +€316m o/w Bouygues Immobilier (37) 27 +€64m o/w Colas (133) 76 +€209m TF1 160 322 +€162m Bouygues Telecom 711 758 +€47m Bouygues SA and oth
Slide 47: Contribution to Group current operating profit by sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (437) 83 +€520m o/w Bouygues Construction (95) 166 +€261m o/w Bouygues Immobilier (38) 17 +€55m o/w Colas (304) (100) +€204m TF1 68 169 +€101m Bouygues Telecom 253 244 -€9m Bo
Slide 48: Contribution to Group operating profit by sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (482) 77 +€559m o/w Bouygues Construction (95) 166 +€261m o/w Bouygues Immobilier (38) 11 +€49m o/w Colas (349) (100) +€249m TF1 68 167 +€99m Bouygues Telecom 254 335 +€81m Bouygues S
Slide 49: Contribution to net profit attributable to the Group by sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (384) 5 +€389m o/w Bouygues Construction (66) 119 +€185m o/w Bouygues Immobilier (33) (6) +€27m o/w Colas (285) (108) +€177m TF1 17 47 +€30m Bouygues Telecom 142 199 +€5
Slide 50: Contribution to Group net cash flow by sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (239) 277 +€516m o/w Bouygues Construction (45) 222 +€267m o/w Bouygues Immobilier (44) 18 +€62m o/w Colas (150) 37 +€187m TF1 139 299 +€160m Bouygues Telecom 695 746 +€51m Bouygues SA
Slide 51: Contribution to net capital expenditure by sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses 111 86 -€25m o/w Bouygues Construction 37 45 +€8m o/w Bouygues Immobilier 2 2 +€0m o/w Colas 72 39 -€33m TF1 107 122 +€15m Bouygues Telecom 387 582 +€195m Bouygues SA and other 2 - -
Slide 52: Contribution to Group free cash flow by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2020 H1 2021 Change Construction businesses (454) 94 +€548m o/w Bouygues Construction (135) 136 +€271m o/w Bouygues Immobilier (50) 12 +€62m o/w Colas (269) (54) +€215m TF1 22 166 +€144m Bouygues Telecom 233 93 -€140m Bouygues S
Slide 53: Net surplus cash (+)/net debt (-)
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End-Dec End-June €m Change 2020 2021 Bouygues Construction 3,143 2,696 -€447m Bouygues Immobilier (306) (400) -€94m Colas (7) (631) -€624m TF1 (1) 34 +€35m Bouygues Telecom (1,740) (2,229) -€489m Bouygues SA and other (3,070) (2,283) +€787m Group net surplus
Slide 54: 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 char
Slide 55: 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 ◼ Current operating profit after taking account of the interest expense on lease obligations, before (i) net depreciation and amortization e