Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2021 Earnings Presentation
52 slides from Bouygues Sa's earnings presentation, May 20, 2021
Slide 1: Q1 2021 Results Presentation
Q1 2021 RESULTS 20 MAY 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 ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 3
Slide 4: Highlights of Q1 2021
HIGHLIGHTS OF Q1 2021 Q1 2021 RESULTS REFLECT A SHARP IMPROVEMENT COMPARED TO Q1 2020 AND THE USUAL SEASONALITY, IN AN ENVIRONMENT STILL AFFECTED BY THE PANDEMIC ◼ Significant growth in Group sales compared to Q1 2020 ◼ Group current operating result and margin close to Q1 2019 levels ◼ Positive net
Slide 5: Group key figures
GROUP KEY FIGURES ⚫ Q1 2021 RESULTS REFLECT A SHARP IMPROVEMENT COMPARED TO Q1 2020 AND THE USUAL SEASONALITY ◼ Growth in Group sales: +7%a > Solid commercial activity €m Q1 2020 Q1 2021 Change > Return to growth in all business segments Sales 7,219 7,742 +7%a ◼ Strong improvement in current operati
Slide 6: Group liquidity at a high level
GROUP LIQUIDITY AT A HIGH LEVEL ⚫ AVAILABLE CASH AT END-MARCH 2021: €11.5BN Available cash (€bn) Debt maturity schedule at end-March 2021 (€bn) 3 3.6 2 Evenly spread debt maturity schedule €11.5bn 1 7.9 No covenants on 0 medium/long-term 2021 2022 2023 2024 2025 2026 2027 2028 facilitiesa Undrawn ML
Slide 7: Very robust group financial structure
VERY ROBUST GROUP FINANCIAL STRUCTURE End-Dec End-March End-March €m Change Change 2020 2021 2020 Shareholders' equity 11,803 11,977 +€174m 11,551 +€426m Net surplus cash (+)/Net debt (-)a (1,981) (2,643) -€662m (3,589) +€946m Net gearing 17% 22% +5pts 31% -9pts ⚫ CHANGE IN NET DEBT BETWEEN END-MARC
Slide 8: Change in net debt position (1/2)
CHANGE IN NET DEBTa POSITION (1/2) €m Net debt at 31/12/2020 Net debt at 31/03/2021 -4 -1 +492 (1,981) -1,149 Capital (2,643) Alstomb Acquisitions/ Operations disposals transactionsc and other Q1 2020 (2,222) 0 -37d +8e -1,338 (3,589) (a) See glossary for definition (b) Proceeds from the sale of aro
Slide 9: Change in net debt position (2/2)
CHANGE IN NET DEBTa POSITION (2/2) €m Breakdown of operations +325 -91 Repayment of lease obligations -347 Net cash flowb Net capex -946 +234 -1,149 Net cash flow including lease expenses Changes in WCR -90 related to Changes in WCR operating activities related to property, plant & equipment and int
Slide 10: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 10
Slide 11: Construction businesses
CONSTRUCTION BUSINESSES 11
Slide 12: Solid backlog in the construction businesses
SOLID BACKLOG IN THE CONSTRUCTION Backlog in the construction businesses BUSINESSES (€bn) c 0% ⚫ BACKLOG OF €33.4BN AT END-MARCH 2021, UP 2%a YEAR-ON-YEAR 33.5 33.4 2.2 2.0 ◼ High level of backlog -11% ◼ 62% of the backlog at Bouygues Construction and Colas 10.0 9.9 -2%d in international markets Bac
Slide 13: Backlog in the construction businesses by geography
BACKLOG IN THE CONSTRUCTION BUSINESSES BY GEOGRAPHY International backlog (€bn) Backlog in France (€bn) 0%a Low issuance of building permits in -2%a Residential despite a strong demand; 19.5 19.6 14.0 0% 0.1 13.7 Wait-and-see period in Commercial 0.1 2.1 -12% 1.9 6.5 6.5 0%b 3.5 -6% 3.3 Resumption o
Slide 14: Key figures in the construction businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES ⚫ GROWTH IN ACTIVITY AND STRONG IMPROVEMENT IN PROFITABILITY COMPARED TO Q1 2020, IN A QUARTER STILL AFFECTED BY THE PANDEMIC €m Q1 2020 Q1 2021 Change ◼ Increase in sales: +6%a Sales 5,248 5,491 +5%a > Return to growth in each business segment o/w France 2
Slide 15: Encouraging outlook for construction due to stimulus plans
ENCOURAGING OUTLOOK FOR THE CONSTRUCTION BUSINESSES DUE TO THE ANNOUNCEMENT OF SEVERAL STIMULUS PLANS UK: £5bn Canada: CAD180bn “New Deal” stimulus plan 12-year “Investing in Canada” focused on infrastructure infrastructure plan European Union: €1,800bn Includes the “Next generation EU” stimulus Fra
Slide 16: SOFIA
SOFIA ESSAIDI OLIVIER MARCHAL LORANT DEUTSCH GUY LECLUYSE NADIA _ FARES Ss UNE CREATION EatT - (LA“PRON UNE SERIE ECRITE PAR ANNE LANDOIS ue , ra PARTAGEONS DES ONDES POSITIVES
Slide 17: Key figures at TF1 Group
KEY FIGURES AT TF1 GROUP ⚫ IMPROVEMENT IN SALES AND CURRENT OPERATING PROFIT DRIVEN BY THE THREE BUSINESS SEGMENTSa COMPARED TO Q1 2020 ◼ Q1 2021 sales: +3% year-on-year > Rise in audience share: 33.7% among FRDA<50b category €m Q1 2020 Q1 2021 Change (versus 31.6% in Q1 2020) Sales 494 510 +3%c > H
Slide 18: Outlook for TF1 Group confirmed
OUTLOOK FOR TF1 GROUP CONFIRMED This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 ⚫ Q1 RESULTS DEMONSTRATED THE ABILITY OF BROADCASTING TO MAINTAIN A HIGH LEVEL OF ADVERTISING REVENUE AND THE GOOD PERFORMANCE OF NEWEN ⚫ THE REC
Slide 19: Slide 19
Slide 20: A significant step achieved in mobile
A SIGNIFICANT STEP ACHIEVED IN MOBILE 4.0 ⚫ 14.3 MILLION MOBILE PLAN CUSTOMERS EXCLUDING MtoMa AT END-MARCH 2021 ◼ +2.1m customers coming from BTBDb integration (new name for EIT) ◼ +141,000 customers c in Q1 2021 Total net growth of Mobile customers excluding MtoM Mobile plan customers excluding Mt
Slide 21: Solid growth in fixed customer base
SOLID GROWTH IN FIXED CUSTOMER BASE 4.0 ⚫ 4.3 MILLIONa FIXED CUSTOMERS AT END-MARCH 2021 ◼ +98,000 customers in Q1 2021 ⚫ 1.8 MILLION FTTHb CUSTOMERS AT END-MARCH 2021 ◼ +190,000 customers in Q1 2021 ◼ 42% Fixed customers on FTTH compared to 28% in Q1 2020 Total net growth of FTTH customersa Fixed c
Slide 22: A "More for More" strategy that bears fruit
A “MORE FOR MORE” STRATEGY THAT BEARS FRUIT ⚫ GROWTH IN MOBILE AND FIXED ABPUa YEAR-ON-YEAR ◼ Mobile ABPUa: +€0.6 vs Q1 2020 at €20.2 (restated for the roaming impact) ◼ Fixed ABPUa : +€1.1 vs Q1 2020 at €28.2 Mobile ABPUa (€/customer/month) Fixed ABPU a (€/customer/month) +1.1 +0.6 +1.3 +0.4 28.2 2
Slide 23: Key figures at Bouygues Telecom
KEY FIGURES AT BOUYGUES TELECOM ⚫ STRONG SALES GROWTH: +17% YEAR-ON-YEAR €m Q1 2020 Q1 2021 Change ◼ +13% in Sales from Services (+4% excluding BTBD) Sales 1,487 1,743 +17%a > +15% in Mobile (including BTBD) and +9% in Fixed o/w Sales from Services b 1,205 1,363 +13% ◼ +35% in Other sales: growth in
Slide 24: BTBD: on the road to success
BTBD: ON THE ROAD TO SUCCESS ⚫ A POSITIVE START TO INTEGRATION ◼ Full commitment of employees ◼ New Senior Management team put in place ◼ IT integration in line with schedule ⚫ SUCCESSFUL FIRST COMMERCIAL CAMPAIGN IN MARCH/APRIL ◼ BTBD sales performance higher than last year ◼ Commercial trend maint
Slide 25: Outlook for Bouygues Telecom: EBITDA after Leases target revised upwards
OUTLOOK FOR BOUYGUES TELECOM: EBITDA AFTER LEASES TARGET REVISED UPWARDS This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 In Q1 2021, Bouygues Telecom launched the first stage of its strategic plan: ramping up FTTH and mobile
Slide 26: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 26
Slide 27: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m Q1 2020 Q1 2021 Change Sales 7,219 7,742 +7%a Current operating profit/(loss) (242) (77) +€165m Other operating income and expenses 2b 56c +€54m Operating profit/(loss) (240) (21) +€219m Cost of net debt (43) (39) +€4m Interest expense on lease obligations
Slide 28: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 28
Slide 29: Outlook for the Group confirmed
OUTLOOK FOR THE GROUP CONFIRMED This outlook is based on information known to date and excludes any further deterioration in the situation due to Covid-19 ⚫ IN A MACROECONOMIC AND HEALTH CONTEXT THAT REMAINS UNCERTAIN, THE GROUP CONFIRMS ITS OUTLOOK ◼ In 2021, the Group’s sales and earnings should b
Slide 30: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 30
Slide 31: Creation of a major French player in media
CREATION OF A MAJOR FRENCH PLAYER IN MEDIA A French media group with ◼ 360° presence across all TV, radio, production and digital media, drawing on strong brands diversified activities ◼ Around 20% of sales generated in high growth potential segments (production, digital) ◼ Combined sales of €3.4bna
Slide 32: Principle and stages of the transaction
PRINCIPLE AND STAGES OF THE TRANSACTION BySA Free float RTL Free float 1 ◼ Separation of M6’s activities into (i) those related to the broadcasting authorizations granted to the M6 channel 44% 56% 48% 52% (“M6 Edition”) and (ii) all other activities (“M6 Services”) TF1 M6 2 ◼ Merger of “M6 Services”
Slide 33: Financial impacts and value creation for Bouygues
FINANCIAL IMPACTS AND VALUE CREATION FOR BOUYGUES 2020 PROFORMA FIGURES OF THE MERGED ENTITYa 2020 Combined sales ⚫ AN ACCRETIVE TRANSACTION 9% 4% 11% ◼ Current operating margin of the merged entity higher than €3.4bn that of TF1 (9.1% in 2020) 76% ⚫ INCREASED EARNINGS PER SHARE ⚫ A LIMITED IMPACT O
Slide 34: Next stages and indicative timetable
NEXT STAGES AND INDICATIVE TIMETABLE ⚫ COMPLETION OF THIS TRANSACTION IS SUBJECT TO THE CUSTOMARY CONDITION PRECEDENTS, IN PARTICULAR ◼ Approval by the antitrust authority (Autorité de la Concurrence) ◼ Approval by the media regulator (Conseil Supérieur de l’Audiovisuel) ⚫ THE TRANSACTION IS AIMED T
Slide 35: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ PROPOSED MERGER BETWEEN TF1 AND M6 ⚫ ANNEXES 35
Slide 36: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€bn) France +6% 2.4 2.4 2.3 1.5 1.2 1.4 -12% 1.1 0.9 0.9 +35% Q1 2019 Q1 2020 Q1 2021 (a) Contracts are booked as order intakes at the date they take effect Timber building – Switzerland Backlog by geographic region (at end-Marc
Slide 37: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€m) Commercial property +16% 482 452 20 390 9 2 nm 462 443 388 +14% Q1 2019 Q1 2020 Q1 2021 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial property) Backlogb (€bn) Inte
Slide 38: Key figures at Colas
ANNEX KEY FIGURES AT COLAS International and Backlog (€bn) French overseas territories a -2% Mainland France 10.0 10.0 9.9 6.2 6.5 0%b 6.5 3.8 3.5 -6%c 3.3 End-March 2019 End-March 2020 End-March 2021 Applying a cold asphalt mix to a road - France (a) Up 1% at constant exchange rates and excluding p
Slide 39: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Bouygues Telecom Bouygues Telecom Bouygues Telecom Bouygues Telecom at end-December 2020 at end-March 2021 target for end-2022 target for end-2026 35.0 27.0 +1.4 17.7 19.1 5.1 5.3 10.2 10.9 2.3 2.8 c c Very dense area Medium dense area (AMII) Public Initiati
Slide 40: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Sales from mobile services (€m) 816 805 830 840 3,291 940 Sales from fixed services (€m) 389 394 402 417 1,602 423 Mobile customer base 18,010 18,178 18,450 18,755 21,043 Mobile customer base excl. MtoM 12,042 12,1
Slide 41: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m Q1 2020 Q1 2021 Change constant fxa Construction businessesb 5,248 5,491 +5% +6% o/w Bouygues Construction 2,931 3,058 +4% +6% o/w Bouygues Immobilier 373 452 +21% +21% o/w Colas 1,959 2,020 +3% +4% TF1 494 510 +3% +4% Bouygues Telecom 1,487 1,743 +17% +9%
Slide 42: Contribution to Group EBITDA after Leases by sector
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (303) (128) +€175m o/w Bouygues Construction 37 116 +€79m o/w Bouygues Immobilier (26) 1 +€27m o/w Colas (314) (245) +€69m TF1 88 128 +€40m Bouygues Telecom 299 330 +€31m Bouygues
Slide 43: Contribution to Group current operating profit by sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (347) (192) +€155m o/w Bouygues Construction 39 81 +€42m o/w Bouygues Immobilier (16) 4 +€20m o/w Colas (370) (277) +€93m TF1 42 57 +€15m Bouygues Telecom 68 76 +€8m Bouygues
Slide 44: Contribution to Group operating profit by sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (347) (196) +€151m o/w Bouygues Construction 39 81 +€42m o/w Bouygues Immobilier (16) 0 +€16m o/w Colas (370) (277) +€93m TF1 42 57 +€15m Bouygues Telecom 70 136 +€66m Bouygues SA and
Slide 45: Contribution to net profit attributable to the Group by sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (283) (170) +€113m o/w Bouygues Construction 22 57 +€35m o/w Bouygues Immobilier (15) (7) +€8m o/w Colas (290) (220) +€70m TF1 11 15 +€4m Bouygues Telecom 36 80 +€44m Al
Slide 46: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-March €m End-Dec 2020 Change 2021 Non-current assets 21,497 21,364 -€133m Current assets 19,085 19,563 +€478m Held-for-sale assets and operations 41 12 -€29m TOTAL ASSETS 40,623 40,939 +€316m Shareholders' equity 11,803 11,977 +€174m Non-current liabili
Slide 47: Contribution to Group net cash flow by sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (232) (101) +€131m o/w Bouygues Construction 103 129 +€26m o/w Bouygues Immobilier (24) 7 +€31m o/w Colas (311) (237) +€74m TF1 82 117 +€35m Bouygues Telecom 315 339 +€24m Bouygues SA a
Slide 48: Contribution to net capital expenditure by sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses 51 28 -€23m o/w Bouygues Construction 14 16 +€2m o/w Bouygues Immobilier 2 1 -€1m o/w Colas 35 11 -€24m TF1 63 49 -€14m Bouygues Telecom 344 269 -€75m Bouygues SA and other (1) 1 +€2
Slide 49: Contribution to Group free cash flow by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m Q1 2020 Q1 2021 Change Construction businesses (333) (179) +€154m o/w Bouygues Construction 64 91 +€27m o/w Bouygues Immobilier (28) 4 +€32m o/w Colas (369) (274) +€95m TF1 14 63 +€49m Bouygues Telecom (64) 34 +€98m Bouygues SA and
Slide 50: Net surplus cash/net debt
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End-Dec End-March €m Change 2020 2021 Bouygues Construction 3,143 2,566 -€577m Bouygues Immobilier (306) (336) -€30m Colas (7) (441) -€434m TF1 (1) 50 +€51m Bouygues Telecom (1,740) (1,856) -€116m Bouygues SA and other (3,070) (2,626) +€444m Group net surplus
Slide 51: 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 charge
Slide 52: 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 (EBITDAAL) ◼ Current operating profit after taking account of the interest expense on lease obligations, before (i) net charges for depreci