Bouygues SA · EURONEXT:EN
Bouygues SA — H1 2006 Earnings Presentation
32 slides from Bouygues SA's earnings presentation, September 2006
Slide 1: Highlights, Business Areas, Accounts, Outlook and Objectives
HIGHLIGHTS BUSINESS AREAS ACCOUNTS OUTLOOK AND OBJECTIVES
Slide 2: Bouygues Construction: key figures
BOUYGUES CONSTRUCTION (B/CW): key figures 1st half € million Change 2005 2006 Sales 2,943 3,261 +11% of which France 1,745 2,085 +19% of which international 1,198 1,176 -2% Current operating profit 137 141 +3% Current operating margin 4.7% 4.3% -0.4 pt Net profit att. to the Group 96 121 +26% Net ca
Slide 3: Bouygues Construction: order book
BOUYGUES CONSTRUCTION (B/CW): order book € bn New method Former method 8 7.6 At 30 June 2006 +27% (former method) France 7 53% 6.0 6.7 Americas 6 4% 5.0 5.2 78% 5 Other 4.6 4.6 5.2 7% Asia 4 11% Rest of Europe 2002 2003 2004 End-June End- End-June 25% 2005 2005 2006 Change in accounting method for
Slide 4: Bouygues Construction: the Flamanville 3 contract
BOUYGUES CONSTRUCTION (B/CW): the Flamanville 3 contract Bouygues Construction has been awarded the civil engineering package for the future Flamanville EPR nuclear power plant 9 Contract amount (share of Bouygues Construction): over €300m 9 More than 1,000 employees will work on the project 9 Sta
Slide 5: Bouygues Construction: outlook
BOUYGUES CONSTRUCTION (B/CW): outlook Construction businesses 9 The French market is still buoyant, notably in housing and the construction of public infrastructure 9 In Europe, Bouygues Construction is developing through external growth, packaged development projects and Public-Private Partnershi
Slide 6: Bouygues Immobilier: key figures
BOUYGUES IMMOBILIER: key figures 1st half € million Change 2005 2006 Sales 758 721 -5% o/w housing 500 566 +13% o/w corporate/commercial 258 155 -40% Current operating profit 72 80 +11% Current operating margin 9.5% 11.1% +1.6 pts Net profit att. to the Group 42 52 +24% Exaltis Tower Net cash at 30
Slide 7: Bouygues Immobilier: reservations
BOUYGUES IMMOBILIER: reservations 30 June 30 June Change Reservations 2005 2006 Housing Number of units 4,011 4,242 +6% Amount (€ m) 655 749 +14% Corporate/Commercial Office space (sq. m) 31,000 57,000 +84% Amount (€ m) 85 157 +85% TOTAL (€ m) 740 906 +22% Sharp rise in commercial activity
Slide 8: Bouygues Immobilier: outlook
BOUYGUES IMMOBILIER: outlook In France, a better balanced market environment 9 In the housing sector, the “soft landing” scenario is taking shape 9 In the corporate/commercial sector, there are signs of a recovery Contrasting international markets 9 A buoyant corporate/commercial sector in Spain
Slide 9: Colas: key figures
COLAS: key figures 1st half € million Change 2005 2006 Sales 3,993 4,507 +13% of which France 2,538 2,858 +13% of which international 1,455 1,649 +13% Current operating profit 38 70 +84% Current operating margin 1% 1.6%* +0.6 pt Net profit att. to the Group 46 70 +52% Net cash at 30 June (293) (398)
Slide 10: Colas: order book
COLAS: order book End-June End-June Change € million 2005 2006 Metropolitan France 2,590 2,863 +11% International and French 2,708 3,264 +21% overseas territories TOTAL 5,298 6,127 +16% Strong commercial activity
Slide 11: Colas: outlook
COLAS: outlook Roadworks in France: the market is levelling off Roadworks in international markets 9 Business is on the rise in North America, Central Europe and the Indian Ocean region 9 Stable business in Northern Europe Other activities: bright prospects 2006 Change Sales target (€ m) 2005
Slide 12: TF1: key figures
TF1: key figures 1st half € million Change 2005 2006 Sales 1,288 1,386 +8% core channel advertising 881 923 +5% other activities 407 463 +14% Current operating profit 250 209 -16% Current operating margin 19.4% 15.1% -4.3 pts Net profit att. to the Group 177 171 -3% France-Portugal semi-final Net ca
Slide 13: TF1: leader in terms of audience share
TF1: leader in terms of audience share January-July Channel Change 2005 2006 Women under 50 35.5% 34.9% -0.6 pt Individuals 4 years and over 32.0% 31.9% -0.1 pt Viewing time per person per day 3hrs 27 3hrs 26 -1 min (individuals 4 years and over) Advertising market share 54.2% 54.4% +0.2 pt Audience
Slide 14: Pay-TV agreement: merger procedures
PAY-TV AGREEMENT: merger procedures January 2006: a commercial agreement was concluded to merge the pay-TV businesses of TPS and the Canal+ group in an entity controlled by Vivendi April 2006: Competition Board examines the merger 13 July 2006: Competition Board releases merger report after co
Slide 15: TF1: outlook
TF1: outlook Contrary to popular opinion, the Internet boom is not cutting into the TV audience. After an expected 4% growth in 2006, the TV advertising market is likely to develop rapidly in 2007 once the market is opened to mass retailers. Technological innovation will create opportunities (
Slide 16: Bouygues Telecom: key figures
BOUYGUES TELECOM: key figures 1st half € million Change 2005 (1) 2006 Sales 2,150 2,182 +1% Net sales from network 2,029 2,029 = o/w sales excluding incoming traffic revenues 1,546 1,613 +4% EBITDA (2) 660 618 -6% EBITDA / net sales from network 32.5% 30.4% -2.1 pts Current operating profit 351 298
Slide 17: Bouygues Telecom: financial structure
BOUYGUES TELECOM: financial structure 1st half € million Change 2005 2006 Shareholders’ equity (1) 1,999 2,036 +2% Net debt (1) 1,003 398 Div. by 2.5 Debt-to-equity ratio 50% 20% -30 pts (1) End of period Cash flow 660 605 -€55m - Cost of net financial debt -17 -5 Div. by 3.4 - Income tax (2) -119 -
Slide 18: Bouygues Telecom: H1 2006 market share
BOUYGUES TELECOM: H1 2006 market share (France and overseas territories) Customer market share (1) Value market share (3) 1.9% (2) 16.9% Bouygues Telecom 19.3% Orange 35.5% 38.0% SFR 45.7% MVNO & other 42.7% (3) Source: operators (1) Source: ARCEP and operators (2) O/w MVNO: 1.4% Consolidated sa
Slide 19: 2006: taking the offensive
2006: taking the offensive Le 1° forfait mobile illimité tous opérateurS wistesjours ces 208
Slide 20: Neo: a commercial success
NEO: a commercial success 9 7 plans ranging from 2 to 15 hours 9 Unlimited calls to all operators 9 Free, unlimited emails Calls to 43 countries From 8pm to for the price midnight every day + of a call in France 671,000 Neo customers at end-June 2006 Creating a real difference with the rest of the m
Slide 21: 2006: a year of commercial investment
2006: a year of commercial investment The new offer was twice as successful As a result, costs rose as expected 9 Higher acquisition costs were due to 9 363,000 net Contract additions in H1 2006, volume effect, even though the unit thanks in particular to Neo acquisition cost was flat 9 Bouygues Tel
Slide 22: Neo: a profitable investment
NEO: a profitable investment Neo customers will generate the same profitability as Bouygues Telecom 9 ARPU of Neo customers is about €20 higher than for Contract customers 9 Less use of free minutes (observed with other unlimited offers) 9 Future decline in call termination rates 80% of Bouygues
Slide 23: Bouygues Telecom: business customers
BOUYGUES TELECOM: business customers 600,000 lines at end-June 2006 9 +15% in one year 9 Roughly 12% market share Growth of high value-added segments 9 SME customers: +16% in one year 9 Professional customers (self-employed): +18% in one year Strong sales growth 9 +10% in H1 2006 9 13-fold inc
Slide 24: Bouygues Telecom: new business offer
BOUYGUES TELECOM: new business offer An innovative fixed and mobile call management system Fixed Mobile Fixed Mobile FT ISP Fixed Internet Fixed + Mobile Internet Target: professionals, SME & big companies operating multiple sites Convergence offers customers several advantages 9 Employees are
Slide 25: Bouygues Telecom: regulation
BOUYGUES TELECOM: regulation Reductions in call termination rates imposed by ARCEP € cents 2004 2005 2006 Draft 2007 Calls to Bouygues Telecom 18.39 * 14.79 11.24 9.24 % change -17.4% -19.6% -24.0% -17.8% Calls to Orange / SFR 14.94 12.5 9.5 7.5 % change -12.5% -16.3% -24.0% -21.1% * Average rate
Slide 26: Bouygues Telecom: roaming
BOUYGUES TELECOM: roaming Wholesale price framework is positive for Bouygues Telecom 9 Lower purchase price for Bouygues Telecom 9 Limits on volume rebate mechanisms for its competitors Retail price framework 9 Difficult for operators to stand out from rivals 9 Operators and regulators are curre
Slide 27: Bouygues Telecom: outlook
BOUYGUES TELECOM: outlook 2006 sales target € million 2005 * 2006 Change Sales excl. incoming traffic revenues 3,155 3,342 +6% Incoming traffic revenues 989 833 -16% Net sales from network 4,144 4,175 +1% Total sales 4,447 4,471 +1% * Excluding BTC
Slide 28: Bouygues Telecom: mobile TV
BOUYGUES TELECOM: mobile TV Tests of DVB-H technology are conclusive 9 Strong customer appeal → wish to view their favourite programmes 9 Good quality image and sound 9 Mobile TV complements fixed TV The French audiovisual law must still be modified by autumn 2006 before the new service can be l
Slide 29: Bouygues Telecom: contactless applications
BOUYGUES TELECOM: contactless applications Bouygues Telecom draws on the experience of NTT DoCoMo 9 14 million Japanese mobile phones are equipped with contactless technology 9 Services available: transport and payment cards Transport: first step for Bouygues Telecom 9 Mobile phone with an integ
Slide 30: Our vision of telecoms (1/2): a review of UMTS
OUR VISION OF TELECOMS (1/2) A review of UMTS In Europe, 60 operators have invested nearly €200bn (licences + networks), generating data revenues (excluding voice and text messages) that are so low that they have not been disclosed. This confirms that we have taken the right positions on 9 The price
Slide 31: Our vision of telecoms (2/2): the assets of mobile operators
OUR VISION OF TELECOMS (2/2) The assets of mobile operators In the short and medium term (3 - 5 years), technologies will allow us to offer our customers data transfer 9 With a high capacity 9 In broadband 9 At a competitive price for the mass market Î In the data segment, mobile operators will be
Slide 32: Bouygues Telecom: commercial performance
BOUYGUES TELECOM: commercial performance Total customer Contract Prepaid base (Metropolitan France) H1 H1 H1 H1 H1 H1 2005 2006 2005 2006 2005 2006 SIM cards (thousands) 5,104 5,823 2,425 2,487 7,529 8,310 ARPU (€ / month) 57 52 ns ns 44 41 SAC (€ / customer) 237 251 27 27 156 170 Voice usage (min /