Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2016 Earnings Presentation
56 slides from Bouygues Sa's earnings presentation, Aug 31, 2016
Slide 1: First-half 2016 results presentation
First-half 2016 results presentation Paris – 32 Hoche 31 August 2016 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, review of operations, financial statements, outlook
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK 3
Slide 4: H1 2016 highlights
H1 2016 highlights Good commercial performance at Bouygues Telecom as well as sales and EBITDA growth confirmed The order book at the construction businesses remained at a high level reflecting strong and diversified positioning in France and abroad 2016 outlook for the Group confirmed 4
Slide 5: Group key figures
Group key figures €m H1 2015 H1 2016 Change Sales 15,098 14,669 -3%a o/w France 9,637 9,532 -1% o/w international 5,461 5,137 -6% Current operating profit 119 206 +€87m Operating profit 45b 57b +€12m Net profit/(loss) attributable to the Group (42) (28) +€14m Net profit/(loss) attributable to the Gr
Slide 6: Financial structure
Financial structure End-Dec End-June End-June YoY €m Change 2015 2016 2015 change Shareholders' equity 9,293 8,415 -€878m 8,732 -€317m Net debt 2,561 4,354 +€1,793m 5,209 -€855m Net gearing 28% 52% +24 pts 60% -8 pts Change in net debt between end-December 2015 and end-June 2016 reflects The usual s
Slide 7: Agenda: review of operations
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK 7
Slide 8: Construction businesses
Construction businesses Clementi Avenue residential complex – Singapore 8
Slide 9: Solid commercial performance
Solid commercial performance Order book (€m) Order book at a high level Bouygues Construction €29.5bn at end-June 2016, up 1% at constant exchange rates Bouygues Immobilier Colas -1%a The order book at end-June 2016 has yet to include the €29.8bn €29.5bn €27.3bn €28.0bn first €842-million tranche of
Slide 10: Confirmation of gradual stabilisation of the construction sector in France
Confirmation of gradual stabilisation of the construction sector in France Continued growth in residential property reservationsa Order book in France (€m) at Bouygues Immobilier +22% in H1 2016 vs H1 2015 Bouygues Construction Bouygues Immobilier Colas €16.0bn +3% €15.0bn €14.0bn Increased order in
Slide 11: Grand Paris, an opportunity for the construction businesses
Grand Paris, an opportunity for the construction businesses A project to modernise and extend the Paris region rail network Grand Paris Express: creation of 4 new automated metro lines (lines 15,16,17 and 18) and extension of 2 existing lines (lines 11 and 14) RER Eole (East-West Express Rail Link):
Slide 12: Grand Paris: first contracts won
Grand Paris: first contracts won Extension of line 14 Extension of RER Eole Excavation of a 6.1-km tunnel between Saint-Lazare and La Défense and Excavation of a 2.2-km tunnel and construction of a station at Porte Maillot construction of 4 stations Duration of the work: 2017-2021 Duration of the wo
Slide 13: Continued targeted growth in international markets
Continued targeted growth in international markets Bouygues operates in growing countries with a low-risk profile Northern and Central Europe Russia: -1.2% 40% UK: +1.7% Switzerland: +1.2% Poland: +3.6% North America 21% US: +2.2% Canada: +1.4% 1% Southern Europe: +1.1% 2% Middle East: +3.4% 22% Asi
Slide 14: Key figures at the construction businesses
Key figures at the construction businesses Like-for-like and €m H1 2015 H1 2016 Change at constant exchange rates Sales 11,983 11,383 -5% -2% o/w France 6,557 6,276 -4% -4% o/w international 5,426 5,107 -6% -1% Current operating profit/(loss) 88 125 +€37m o/w Bouygues Construction 148 151 +€3m o/w B
Slide 15: Strengths of the Group’s construction businesses
Strengths of the Group’s construction businesses Recognised world-wide expertise High-level technical know-how in complex projects (bridges, tunnels in urban areas, towers, etc.) Experience in project and risk management High value-added innovative offering Extensive experience in managing cycles wi
Slide 16: Continued targeted growth in international markets
ANNEX Continued targeted growth in international markets Main international orders taken in H1 2016 (rounded up/down) UK Property complex in Birmingham (€65m) University of Gloucestershire (€50m) Switzerland Eco-neighbourhood in Basel (€130m) Residential complex in Nyon (€110m) Green City Zurich (€1
Slide 17: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction Order book (€m) Order intakea (€m) Long-term order book (beyond Y+5) NorthConnex contract (Australia) For execution in Y+2 to Y+5 For execution in Y+1 -3%b For execution in Y YoY 5,852 -11% 5,052 5,174 5,186 19,317 19,339 18,741 +5% excl. NorthConnex 18,067
Slide 18: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa (€m) Order book (€m) Commercial property Residential property +17% 2,616 2,785 YoY +20% 2,372 494 523 1,195 353 955 997 191 +16% 203 737 165 62 2,019 2,122 2,262 832 1,004 752 675 +21% H1 2013 H1 2014 H1 2015 H1 2016 End-June 2015 End-Dec 2015 E
Slide 19: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France -1%a €m H1 2015 H1 2016 Change 8,079 8,011 7,849 7,723 7,083 7,006 Sales 5,204 4,678 -10%b o/w France 2,813 2,638 -6% 0% o/w international 2,391 2,040 -15% 4,587 4,910 4,896 4,686 4,182 4,294 Cur
Slide 20: Euro 2016 semi-final between France and Germany
Euro 2016 semi-final between France and Germany 20
Slide 21: Key figures at TF1
Key figures at TF1 €m H1 2015 H1 2016 Change Sales 981 1,025 +4%a o/w group advertising 775 770 -1% Current operating profit 97 58 -€39m Current operating margin 9.9% 5.7% -4.2 pts Operating profit 85b 3 -€82m Sales up 4% in H1 2016 Integration of Newen Studios from 1 January 2016 The decline in cur
Slide 22: TF1 rolls out its strategic plan
TF1 rolls out its strategic plan In a highly competitive environment, TF1 strengthened its positions in several strategic domains Freeview television Revamped news offering with the migration of LCI to freeview Strengthening of prime-time programming schedule for TF1 starting in September DTT channe
Slide 23: The “Bouygues Telecom 20th birthday” advertising campaign
The “Bouygues Telecom 20th birthday” advertising campaign 23
Slide 24: Bouygues Telecom's strategy is paying off
Bouygues Telecom's strategy is paying off Good commercial performance in H1 2016 Sales and EBITDA growth confirmed 24
Slide 25: Continued growth in mobile
Continued growth in mobile Good commercial performance thanks to tight churn management and new customer wins 12.4 million mobile customers, +303,000 customers in Q2 2016 and +543,000 in H1 2016 +171,000 plan customers excluding MtoMa in Q2 2016: an acceleration in net growth Plan net adds excl. Mto
Slide 26: Growth in mobile data usage thanks to 4G
Growth in mobile data usage thanks to 4G 6 million customers were on Bouygues Telecom’s 4G network at end-June 2016, or 58% of the mobile base excluding MtoMa Sharp increase in average mobile data usage 2 GB/month for mobile customers, x3.5 in 2 years 3.2 GB/month for 4G customers Active 4G customer
Slide 27: Steady growth in fixed broadband
Steady growth in fixed broadband +122,000 fixed customers in H1 2016, of which +51,000 in Q2 2016 412,000 Very-High-Speeda customers, of which nearly 70,000 FTTHb customers at end-June 2016 Total net growth of fixed broadbandc customers 1,000 ('000) 482 431 360 268 174 96 Q1 15 Q2 15 Q3 15 Q4 15 Q1
Slide 28: Growth in sales from network confirmed
Growth in sales from network confirmed Change in quarterly sales from network (mobile + fixed) Change in quarterly mobile sales from network (YoY) (YoY) +5.5% +4.1% +4.2% +2.0% +0.9% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 +0.3% -1.9% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 -3.6% -2.3% -6.4% -6.1% -3.5% 4th
Slide 29: EBITDA growth confirmed
EBITDA growth confirmed Change vs Change vs Change vs €m Q1 2016 Q1 2015 Q2 2016 Q2 2015 H1 2016 H1 2015 Sales 1,131 +6% 1,160 +6% 2,291 +6%a Sales from network 971 +4% 1,004 +5% 1,975 +5% EBITDA 146 +€28m 262 +€57m 408 +€85m EBITDA margin/sales from network 15.0% +2.3 pts 26.1% +4.6 pts 20.7% +3.6
Slide 30: Continuation of the strategy launched 2 years ago
Continuation of the strategy launched 2 years ago Strengthening of leadership in 4G to keep pace with the surge in mobile data usage Targeting a market share in fixed equivalent to the market share in mobile, in order to expand the positioning in households Seizing opportunities in the B2B market 30
Slide 31: Strengthening of leadership in 4G
Strengthening of leadership in 4G In dense areas, continuing of the network strengthening programme More than one site out of two already covered with 4G+ at end-June 2016 Over 50% additional sites in dense areas in the next 5 years to continue improving quality of service and preparing for the arri
Slide 32: Strategy focused on winning new fixed customers
Strategy focused on winning new fixed customers Launch of competitively-priced, quality offers to support volume growth A 10.6% market sharea: 2.2 points gained in 2 years In ADSL Directly-owned network rolled out in strategic areas covering 16.5 million households at end-June 2016 Access to bundled
Slide 33: Growth opportunities in B2B
Growth opportunities in B2B Business market Strong growth of the Business activity in the last 2 years thanks to the quality of the 4G network and the launch of innovative offers Increase of 11% in the mobile base and of 24% in the fixed base at end-June 2016 vs end-June 2015 Examples of recently-si
Slide 34: A pragmatic investment policy
A pragmatic investment policy An investment strategy focused on the most differentiating assets Frequencies Mobile network in dense areas LoRa® network Box Infrastructure sharing or rental of the parts where there is little differentiation Mobile network sharing in less dense areas FTTH co-investmen
Slide 35: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 Q2 2016 Mobile customer base 11,273 11,433 11,641 11,890 11,890 12,130 12,433 o/w plan excl. MtoMa 8,742 8,889 9,038 9,139 9,139 9,290 9,461 (‘000) o/w MtoM 1,585 1,648 1,727 1,799 1,799 1,879 2,012 End of pe
Slide 36: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Mobile ARPUa €/month/subscriber 22.7 22.8 23.3 22.8 22.4 22.4 Plan ARPUa €/month/subscriber 24.3 24.3 24.7 24.1 23.6 23.6 Prepaid ARPUa €/month/subscriber 7.5 7.2 7.6 7.3 7.0 7.2 Data usageb MB/month/subsc
Slide 37: Agenda: financial statements
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK 37
Slide 38: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) €m H1 2015 H1 2016 Change Sales 15,098 14,669 -3% Current operating profit 119 206 +€87m Other operating income and expenses (74)a (149)a -€75m Operating profit 45 57 +€12m Cost of net debt (146) (118) +€28m o/w financial income 21 14 -€7m o/w financial
Slide 39: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) €m H1 2015 H1 2016 Change Income tax 36 1 -€35m Share of net profit of joint ventures and associates 29 32 +€3m o/w Alstom 0a 0b €0m Net profit/(loss) (11) (26) -€15m Net profit attributable to non-controlling interests (31) (2) +€29m Net profit/(loss) a
Slide 40: Sales by sector of activity
ANNEX Sales by sector of activity Change like-for-like €m H1 2015 H1 2016 Change and at constant exchange rates Construction businessesa 11,983 11,383 -5% -2% o/w Bouygues Construction 5,850 5,800 -1% 0% o/w Bouygues Immobilier 1,058 1,047 -1% -1% o/w Colas 5,204 4,678 -10% -6% TF1 981 1,025 +4% -2%
Slide 41: Contribution to Group EBITDA by sector of activity
ANNEX Contribution to Group EBITDA by sector of activity €m H1 2015 H1 2016 Change Construction businesses 315 256 -€59m o/w Bouygues Construction 228 185 -€43m o/w Bouygues Immobilier 38 32 -€6m o/w Colas 49 39 -€10m TF1 102 162 +€60m Bouygues Telecom 323 408 +€85m Holding company and other (12) (2
Slide 42: Contribution to Group current operating profit by sector of activity
ANNEX Contribution to Group current operating profit by sector of activity €m H1 2015 H1 2016 Change Construction businesses 88 125 +€37m o/w Bouygues Construction 148 151 +€3m o/w Bouygues Immobilier 59 59 €0m o/w Colas (119) (85) +€34m TF1 97 58 -€39m Bouygues Telecom (54) 38 +€92m Holding company
Slide 43: Contribution to Group operating profit by sector of activity
ANNEX Contribution to Group operating profit by sector of activity €m H1 2015 H1 2016 Change Construction businesses 81 85 +€4m o/w Bouygues Construction 141a 143a +€2m o/w Bouygues Immobilier 59 57a -€2m o/w Colas (119) (115)b +€4m TF1 85c 3c -€82m Bouygues Telecom (109)d (5)d +€104m Holding compan
Slide 44: Contribution to net profit attributable to the Group by sector of activity
ANNEX Contribution to net profit attributable to the Group by sector of activity €m H1 2015 H1 2016 Change Construction businesses 78 65 -€13m o/w Bouygues Construction 110 100 -€10m o/w Bouygues Immobilier 34 34 €0m o/w Colas (66) (69) -€3m TF1 27 0 -€27m Bouygues Telecom (66) (12) +€54m Alstom 0a
Slide 45: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec End-June End-June €m Change 2015 2016 2015 Non-current assets 18,210 17,414 -€796m 17,993 Current assets 15,590 15,768 +€178m 17,158 Held-for-sale assets and operations 35 - -€35m 508a TOTAL ASSETS 33,835 33,182 -€653m 35,659 Shareholders' equity 9,293 8,
Slide 46: Change in net cash position in H1 2016 (1/2)
Change in net cash position in H1 2016 (1/2) Net cash at 31/12/2015 €m Net cash at 30/06/2016 -2,561 +858 -133 -656 -4,354 Otherb Acquisitions/ Dividends -117 disposalsa 700 MHz frequencies -1,745 Operation (4264,0) H1 2015 -3,216 -3 +48 -737 - -1,301 -5,209 (a) Includes Alstom’s public share buy-ba
Slide 47: Change in net cash position in H1 2016 (2/2)
Change in net cash position in H1 2016 (2/2) Breakdown of operation Net cash flowa Net capital expenditure Change in operating WCR €m and otherb +719 -789 -1,675 -1,745 H1 2015 +580 -553 -1,328 -1,301 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relati
Slide 48: Contribution to Group net cash flow by sector of activity
ANNEX Contribution to Group net cash flow by sector of activity €m H1 2015 H1 2016 Change Construction businesses 279 280 +€1m o/w Bouygues Construction 191 170 -€21m o/w Bouygues Immobilier 30 34 +€4m o/w Colas 58 76 +€18m TF1 65 120 +€55m Bouygues Telecom 313 395 +€82m Holding company and other (7
Slide 49: Contribution to Group net capital expenditure by sector of activity
Contribution to Group net capital expenditure by sector of activity €m H1 2015 H1 2016 Change Construction businesses 156 227 +€71m o/w Bouygues Construction 66 89 +€23m o/w Bouygues Immobilier 6 10 +€4m o/w Colas 84 128 +€44m TF1 15 96 +€81m Bouygues Telecom 380 464 +€84m Holding company and other
Slide 50: Contribution to Group free cash flow by sector of activity
ANNEX Contribution to Group free cash flow by sector of activity €m H1 2015 H1 2016 Change Construction businesses 123 53 -€70m o/w Bouygues Construction 125 81 -€44m o/w Bouygues Immobilier 24 24 €0m o/w Colas (26) (52) -€26m TF1 50 24 -€26m Bouygues Telecom (67) (69) -€2m Holding company and other
Slide 51: Net cash by business segment
Net cash by business segment €m End-June 2015 End-June 2016 Change Bouygues Construction 2,433 2,707 +€274m Bouygues Immobilier (82) (240) -€158m Colas (569) (316) +€253m TF1 308 133a -€175m Bouygues Telecom (977) (1,267)b -€290m Holding company and other (6,322) (5,371)c +€951m TOTAL (5,209) (4,354
Slide 52: Financing
Financing Available cash: €7.4bn €m 10,000 9,000 8,000 Debt maturity schedule at end-June 2016 7,000 6,000 Undrawn 5,000 MLT facilities 4,000 €5.4bn 3,000 2,000 1,000 Cash €2.0bn 0 52
Slide 53: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group €m H1 2015 H1 2016 Change Net profit/(loss) attributable to the Group (42) (28) +€14m o/w non-current income/charges related to Bouygues Telecom (net of taxes) 31 25 -€6m o/w non-current income/charges related to the construc
Slide 54: Agenda: outlook
■ HIGHLIGHTS AND KEY FIGURES ■ REVIEW OF OPERATIONS ■ FINANCIAL STATEMENTS ■ OUTLOOK 54
Slide 55: 2016 outlook confirmed
2016 outlook confirmed In the construction businesses, continued targeted growth in French and international markets and broadening of the offer portfolio with innovative products and services Profitability expected to improve starting in 2016 Expansion of TF1 into production and content, accelerati
Slide 56: Building the future is our greatest adventure
Building the future is our greatest adventure