Slide 1: Presentation of Half-Year Accounts
PRESENTATION OF HALF-YEAR ACCOUNTS PARIS 11 September 2002
Slide 2: Highlights, Business Areas, Accounts, Outlook and Objectives
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 3: Highlights Since Beginning of 2002
HIGHLIGHTS SINCE BEGINNING OF 2002 n Sharp rise in all Group earnings n Net profit recorded by Bouygues Telecom n Bond issue in April 2002: €750m n Standard & Poor’s credit rating confirmed: A- with stable outlook n Sale of Bouygues Offshore n Increased stake in Bouygues Telecom
Slide 4: Key Figures: Operation
KEY FIGURES: operation 1st half 1st half For info Million euros Variation 2001 2002 2001 Sales 9,558 10,813 + 13% 20,473 EBITDA 734 1,062 + 45% 1,680 Operating earnings 386 506 + 31% 876 Net earnings from 75 127 + 69% 251 recurrent business * Net income attributable 108 465 x4 344 to the group Stron
Slide 5: Key Figures: Consolidated Balance Sheet
KEY FIGURES: consolidated balance sheet For info Million euros 30/06/01 30/06/02 Variation 31/12/01 Stockholders’ equity 5,207 6,026 + 16% 5,503 Net debt 2,134 3,638 + 70% 1,124 Net debt/ 41% 60% - 20% Stockholders’ equity The group has raised its stake in its businesses while keeping debt at a mode
Slide 6: Stock Market
STOCK MARKET n Stock market performance from 1 January to 6 September 2002 140 120 100 80 78 68 60 64 40 23 20 20 0 02/01/02 02/02/02 02/03/02 02/04/02 02/05/02 02/06/02 02/07/02 02/08/02 02/09/02 Bouygues France Telecom TF1 Vivendi Universal CAC 40
Slide 7: Comparative Analysis of Stock Market Performance
COMPARATIVE ANALYSIS OF STOCK MARKET PERFORMANCE 36 months 18 months 6 months (since (since (since 1 Sep. 1999) 1 March 2001) 1 March 2002) Bouygues - 10% - 44% - 28% TF1 - 6% - 52% - 17% CAC 40 - 32% - 41% - 29% France Telecom - 86% - 84% - 66% Vivendi Universal - 84% - 82% - 73%
Slide 8: Highlights, Business Areas, Accounts, Outlook and Objectives
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 9: Construction Sector
CONSTRUCTION SECTOR n Sales for the first half of 2002: €6,833m* (+ 6%) Property Building/ 9% Civil Works 33% 47% 3% 8% Energy contracting Roads Electricity/ networks * contribution to consolidated accounts
Slide 10: Construction Sector: Key Figures
CONSTRUCTION SECTOR: key figures * 1st half 1st half Million euros Variation 2001 2002 Sales 6,448 6,833 + 6% EBITDA 288 311 + 8% EBIT 117 119 + 1% Net earnings 79 78 (1) - 1% Net cash 244 359 + 47% 2002 sales (e): 14,007(2) - 2% (1) excluding the capital gain on disposal of Bouygues Offshore (2) in
Slide 11: Construction Sector: Building/Civil Works
CONSTRUCTION SECTOR: Building/Civil Works n Key figures 1st half 1st half Million euros Variation 2001 2002 Sales 2,329 2,412 + 4% EBIT 16 28 + 75% Net earnings 28 32 + 14% Net cash 757 785 + 4% 2002 sales (e): 4,680 - 4% Focus on improvement of margins
Slide 12: Building/Civil Works: Strategic Objectives
BUILDING/CIVIL WORKS: strategic objectives n Focus on comprehensive high added-value offering ü Packaged development ü Technological and financial expertise ü Management of complex projects n Pursue international development ü Opportunism and flexibility ü Matching products to countries (PFI in the
Slide 13: Major Projects Underway
MAJOR PROJECTS UNDERWAY Home Office London (United Kingdom) Groene Hart tunnel €715m (Netherlands) €380m
Slide 14: Construction Sector: Bouygues Offshore
CONSTRUCTION SECTOR: BOUYGUES OFFSHORE n Sale in May 2002 and payment in July 2002 A sound industrial decision: ü Combination of Bouygues Offshore's engineering skills and Saipem’s considerable maritime resources ü The new group becomes one of the world’s leading turnkey contractors in the offshore
Slide 15: Construction Sector: Colas
CONSTRUCTION SECTOR: COLAS n Key figures 1st half 1st half For info Million euros Variation 2001 2002 2001 Sales 3,177 3,196 + 1% 7,328 EBIT 42 25 - 40% 299 Net earnings 22 20 - 9% 203 Net cash - 625 - 440 - 3 1 2002 sales (e): 7,450 + 2% Excellent performance by the world’s leading roadbuilder
Slide 16: Colas: Strategic Objectives
COLAS: strategic objectives n Restore external growth in ü roadbuilding, mainly in North America ü the supply of construction materials ü complementary activities: railways, waterproofing, safety, signs and signals n Optimize the efficiency of existing locations Consolidate its position as the world
Slide 17: Major Project Underway
MAJOR PROJECT UNDERWAY Port extension in Los Angeles (USA) €89m
Slide 18: Construction Sector: Bouygues Immobilier
CONSTRUCTION SECTOR: BOUYGUES IMMOBILIER n Key figures 1st half 1st half Million euros Variation 2001 2002 Sales 400 602 + 51% EBIT 22 31 + 41% Net earnings 17 18 + 6% Net cash - 31 + 18 - 2002 sales (e): 1,150 + 22% Improvement in earnings
Slide 19: Bouygues Immobilier: Strategic Objectives
BOUYGUES IMMOBILIER: strategic objectives n Ensure controlled growth by ü offering a broader range of products ü increasing its offering in housing n Reduce vulnerability to the business cycle by ü prudent management of land acquisition costs ü controlling debt Consolidate its position as France’s l
Slide 20: Saur: Key Figures
SAUR: key figures 1st half 1st half Million euros Variation 2001 2002 Sales 1,220 1,233 + 1% EBITDA 92 103 + 12% EBIT 38 46 + 21% Net earnings 34 11 - 68% Net cash - 690 - 621 - 2002 sales (e): 2,500 + 1% 2001 earnings included an exceptional net capital gain of €33m
Slide 21: Saur: Exposure in Argentina
SAUR: exposure in Argentina 31/12 31/12 30/06 Million euros 2000 2001 2002 Securities and gross receivables • Buenos Aires Electricity 69 - - • Dams 16 - - • Mendoza Water 77 81 54 TOTAL 162 81 54 Provisions - 36 41 Net balance sheet exposure 162 45 13* ü Variation 2000-2001: Disposals of Buenos Air
Slide 22: Saur: Strategic Objectives
SAUR: strategic objectives n Pursue development ü Secure the renewal of existing contracts in France and target new ones ü Focus on selective expansion in Europe ü Develop process water treatment segment n Continue improving profitability Forge partnerships with local authorities Create value for st
Slide 23: TF1: Key Figures
TF1: key figures 1st half 1st half Million euros Variation 2001 2002* Sales 1,216 1,352 + 11% of which advertising 834 817 - 2% EBITDA 312 256 - 18% EBIT 267 202 - 24% Net earnings 161 112 - 30% Net cash - 118 - 514 - 2002 sales (e): 2,570 + 13% Holding up well despite the unfavourable economic envi
Slide 24: TF1: Audience Share
TF1: audience share 1st half Full-year 1st half 2001 2001 2002 1 Women under 50 35.1% 35.5% 35.0% Individuals 4 years and over 32.8% 32.7% 32.5% 49 of 50 best audience ratings in first half
Slide 25: TF1: Increased Stake in TPS
TF1: increased stake in TPS n December 2001: agreement to acquire a 25% stake in TPS for €195m, paid in 2002 ü TF1: 50% stake in TPS n July 2002: agreement with M6 to acquire a 25% stake in TPS for €160m ü TF1: 66% stake in TPS ü M6: 34% stake in TPS Strategic position in satellite digital TV
Slide 26: TF1: Developments
TF1: developments n Canal Plus: TF1 is attentive to the future of the group and especially CanalSatellite n KirchMedia ü an interesting growth opportunity which is not essential ü TF1's experience and skills are appreciated by German decision-makers ü TF1 may form part of a group of stockholders so
Slide 27: TF1: Strategic Objectives
TF1: strategic objectives n Consolidate TF1's leading position as general- interest channel ü Secure supply and distribution of content ü Capitalise on TF1 brand n Give TPS fresh impetus after simplifying stock ownership structure n Pursue development of existing platforms (Eurosport, LCI, etc.) Rem
Slide 28: Bouygues Telecom: Consolidated Key Figures
BOUYGUES TELECOM: consolidated key figures 1st half 1st half For info Million euros Variation 2001(1) 2002 2001 Sales 1,231 1,396 + 13% 2,681 of which recurrent sales (2) 1,131 1,297 + 15% 2,387 EBITDA 160 415 x 2.6 473 EBIT - 54 153 n.s 53 Net loss - 109 65 n.s - 61 EBITDA/recurrent sales (2) 14% 3
Slide 29: Bouygues Telecom: Breakdown of Sales
BOUYGUES TELECOM: breakdown of sales 1st half 1st half For info Million euros Variation 2001 2002 2001 Recurrent sales * 1,131 1,297 + 15% 2,387 of which Roaming and Services 131 197 + 50% 310 (including SMS) Handsets and other 100 99 - 1% 294 Total sales 1,231 1,396 + 13% 2,681 Services and roaming
Slide 30: Bouygues Telecom: Commercial Policy
BOUYGUES TELECOM: commercial policy n Contract ü Focus on capturing new customers ü Enhance services through innovation • "Mini forfaits", "forfaits évolutifs"… ü Attract prepay customers n Corporate ü Develop the service offering n Prepay ü Realistic approach to counting ü Less subsidy and shorter
Slide 31: Bouygues Telecom: New Billing Policy
BOUYGUES TELECOM: new billing policy n Per second billing: ü as of first second, ü "customers know what they are getting": • no overcharging for calls to mobiles from competing operators • customers are free to choose ü for all customers, including Prepay and corporate n A new offer, with an additio
Slide 32: Bouygues Telecom: Business Activity
BOUYGUES TELECOM: business activity Forecast Customer base End End 30/06 end (millions) 2000 2001 2002 2002 Contract 2.7 3.2 3.4 3.7 Market share on net additions (%) 23.3% 18.2% 24.2% Market share on installed base (%) 16.4% 16.6% 17.0% Prepay (active base according n.d 3.1 2.7 2.2 to ART definitio
Slide 33: Bouygues Telecom: Number of Customers at End 2002
BOUYGUES TELECOM: number of customers at end 2002 n Target announced in March 2002: ü 7 million active customers n Contract: target almost achieved: ü 3.7 rather than 3.8 million customers n Prepay: Bouygues Telecom has taken a realistic approach to counting Despite the difference in the number of c
Slide 34: Bouygues Telecom: Business Indicators
BOUYGUES TELECOM: business indicators 1st half 1st half Variation 2001 2002 Contract (metropolitan France) • Number of customers * (millions) 2.9 3.3 + 14% • Net airtime sales (€m) 824 999 + 21% Prepay (metropolitan France) • Number of customers registered* (millions) 3.0 2.7 - 10% • Net airtime sal
Slide 35: Bouygues Telecom: Prepay Customer Base Trends in Europe
BOUYGUES TELECOM: trends in prepay customer bases in Europe 1st half 2002 Net additions Total base at (in thousands) 30 June 2002 Prepay Contract base base mm02 UK 11,171 - 83 + 179 Vodafone UK 13,009 - 358 + 203 Orange UK 12,802 + 212 + 203 T-Mobile UK 11,099 + 525 + 152 T-Mobile 23,262 - 37 + 218
Slide 36: Bouygues Telecom: Main Drivers
BOUYGUES TELECOM: main drivers n Contract 1st half 1st half Trend (metropolitan France) 2001* 2002 ARPU (€/month) 53.8 54.1 = SAC (€) 238 236 î Monthly churn 2.3% 1.9% = Usage (min/month) 372 356 = Favourable trend in all drivers * does not include "Mini Forfait", launched in June 2001
Slide 37: Bouygues Telecom: Consolidated Financial Data
BOUYGUES TELECOM: consolidated financial data 30/06 30/06 31/12 Variation 2001* 2002 2001 Stockholders' equity (€m) 1,270 1,447 + 14% 1,340 Net debt (€m) 1,870 1,806 - 3% 1,904 Capital expenditure (€m) 389 168 - 57% 744 Net debt / 147% 125% - 142% Stockholders' equity * pro forma: subscriber acquisi
Slide 38: Bouygues Telecom: Roll-out of Mobile Multimedia
BOUYGUES TELECOM: roll-out of mobile multimedia SERVICES TECHNOLOGIES Kiosk SMS Short codes giving customers access to GSM (July enhanced SMS whichever their operator 2002) MMS Multimedia Messaging Service with Comverse (16 Sept. platform: messages, enhanced with images, GPRS 2002) music, photos, et
Slide 39: Bouygues Telecom: i-mode
BOUYGUES TELECOM: i-mode n Promising launch in Netherlands and Germany ü 90% of customers satisfied in Germany ü Higher than expected ARPU n The i-mode "club" is growing ü The operator Base (KPN) in Belgium ü Incumbent operator Telefonica in Spain ü Over 35 million potential i-mode users in Europe
Slide 40: Bouygues Telecom: i-mode Launch
BOUYGUES TELECOM: i-mode n Launch planned by Bouygues Telecom for Christmas 2002 ü The technology is tried and tested ü The pilot scheme works ü The chosen IT platform (NEC) is in place ü The handsets have been ordered ü High quality services are already available All the conditions for a successful
Slide 41: Bouygues Telecom: Uncertainties of UMTS Project
BOUYGUES TELECOM: uncertainties of UMTS project n Predictable difficulties ü Market expectations have not been taken into consideration: technology has prevailed over the market ü Technology is more complex than that of GSM and has to be developed, which will take time ü Applications are difficult t
Slide 42: Bouygues Telecom: UMTS Financing
BOUYGUES TELECOM: UMTS n Financing ü Investments that will replace costs of renewing GSM/GPRS network ü These investments will be covered by Bouygues Telecom's cash flow ü The licence will be financed by Bouygues Telecom stockholders in the form of a capital increase n The roll-out rate will be adap
Slide 43: Bouygues Telecom: Strategic Objectives
BOUYGUES TELECOM: strategic objectives n Develop mobile multimedia services with i-mode n Improve profitability while increasing the Contract customer base ü Boost sales by focusing on ARPU ü Control SACs n Prepare network change to UMTS Become the benchmark operator on personal communications marke
Slide 44: Highlights, Business Areas, Accounts, Outlook and Objectives
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 45: Bouygues: Financial Data
BOUYGUES: financial data For info Million euros 30/06/01 30/06/02 Variation 2001 Stockholders' equity 5,207 6,026 + 16% 5,503 Long & medium 1,987 1,791 - 10% 1,909 term provisions Financial liabilities 3,593 5,172 + 44% 3,081 Long-term capital 10,787 12,989 + 20% 10,493 Fixed assets 9,127 11,585 + 2
Slide 46: Bouygues: Debt Situation
BOUYGUES: debt situation At 31 December 2001: €1,124m n Changes in scope of consolidation • Factoring in Bouygues Telecom at 100% + €881m • Factoring in Saur at 100% + €344m • Factoring in TPS at 50% + €158m • Disposal of Bouygues Offshore + €205m n Investments/disposals • Acquisition of TIM stake i
Slide 47: Bouygues: Net Debt by Business Area
BOUYGUES: net debt by business area For info Million euros 30/06/01 30/06/02 Variation 2001 Bouygues Telecom 1,004* 1,806 n.s 1,023 TF1 118 514 x 4.3 188 Saur 690 621 - 10% 676 Construction (244) (359) + 47% (1,102) Holding and other (1) 566 1,056 + 87% 339 TOTAL 2,134 3,638 + 70% 1,124 (1) Bouygues
Slide 48: Bouygues: Consolidated Income Statement
BOUYGUES: consolidated income statement 1st half 1st half For info Million euros Variation 2001 2002 2001 Sales 9,558 10,813 + 13% 20,473 EBITDA 734 1,062 + 45% 1,680 Operating income 386 506 + 31% 876 Exceptional items 63 416 (1) n.s 73 Income tax (138) (205) (2) n.s (268) Net earnings attributable
Slide 49: Bouygues: Operating Earnings by Business Area
BOUYGUES: operating earnings by business area 1st half 1st half For info Million euros Variation 2001 2002 2001 Bouygues Telecom (15)* 153 ì 28* TF1 267 202 - 24% 375 Saur 38 46 + 21% 85 Construction 117 119 + 2% 413 Holding and other (21) (14) n.s. (25) TOTAL 386 506 + 31% 876 * consolidated at 54%
Slide 50: Bouygues: Net Earnings by Business Area
BOUYGUES: net earnings by business area 1st half 1st half For info Million euros Variation 2001 2002 2001 Bouygues Telecom (35)* 36* ì (37)* TF1 66 47 - 29% 87 Saur 24 8 - 67% 22 Construction 79 78 = 265 Holding and other (26) 296 - 7 TOTAL 108 465 x4 344 * consolidated at 54% until 30 March 2002, 6
Slide 51: Highlights, Business Areas, Accounts, Outlook and Objectives
n HIGHLIGHTS n BUSINESS AREAS n ACCOUNTS n OUTLOOK AND OBJECTIVES
Slide 52: Forecast Sales
FORECAST SALES Million euros For info 2002 1st half Variation 2001 (e) 2002 Bouygues Telecom * 1,434 2,950 n.s 1,390 Bouygues Telecom at 100% 2,670 2,950 + 10% 1,390 TF1 2,277 2,570 + 13% 1,343 TELECOMS-MEDIA 3,711 5,520 + 49% 2,733 Saur SERVICES 2,487 2,500 + 1% 1,232 Building/Civil Works 4,642 4,4
Slide 53: Bouygues: Strategic Objectives
BOUYGUES: strategic objectives n Seize the growth opportunities that may arise in the telecoms-media business while remaining prudent n Pursue organic growth at Colas and Saur n Maintain a policy of improving margins and controlling risks in the building/civil works and property sectors
Slide 54: Bouygues' Assets
BOUYGUES' ASSETS n Sound financial structure n No significant financial off-balance- sheet commitments n Favourable outlook in all its business areas Bouygues is a diversified group and all its businesses are profitable and on track for growth
Slide 55: Presentation of Half-Year Accounts
PRESENTATION OF HALF-YEAR ACCOUNTS PARIS 11 September 2002