Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2020 Earnings Presentation
52 slides from Bouygues Sa's earnings presentation, May 14, 2020
Slide 1: Q1 2020 Results Presentation
Q1 2020 RESULTS THURSDAY 14 MAY 2020 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 ⚫ ANNEX 3
Slide 4: Bouygues, a responsible player in the Covid-19 crisis
BOUYGUES, A RESPONSIBLE PLAYER IN THE COVID-19 CRISIS ⚫ SHOWING SOLIDARITY WITH STAKEHOLDERS ◼ Relinquishment by Martin and Olivier Bouygues of 25% of their 2020 fixed and variable remuneration ◼ Dividend pay-out proposal withdrawn at the Annual General Meeting on 23 April 2020a ◼ Prompt payment by
Slide 5: Highlights of Q1 2020
HIGHLIGHTS OF Q1 2020 ◼ Initial effects of the Covid-19 pandemic on Group results ◼ Strong Group financial position: €10.3bn of available cash at end-March ◼ Backlog in the Construction businesses remains at a high level at end-March ◼ Resilience of Bouygues Telecom: low Covid-19 impact on commercia
Slide 6: Group key figures
GROUP KEY FIGURES €m Q1 2019 Q1 2020 Change Q1 2020 RESULTS REFLECT THE USUAL EFFECT OF THE SEASONALITY AND THE IMPACT OF THE LOCKDOWN IN Sales 7,933 7,219 -9%b FRANCE SINCE MID-MARCH o/w France 4,995 4,399 -12% ◼ Sales down 8%a year-on-year entirely due to Covid-19 crisis o/w international 2,938 2,
Slide 7: Strong financial position (1/2)
STRONG FINANCIAL POSITION (1/2) AVAILABLE CASH AT END-MARCH 2020: €10.3BN Well-balanced debt maturity schedule No covenants on medium- and long-term credit lines Issuance of €1bn of bonds on 7th April 2020 Debt maturity schedule at end-March 2020 Maturity 2028, coupon 1.125% Not included yet in this
Slide 8: Strong financial position (2/2)
STRONG FINANCIAL POSITION (2/2) ⚫ NO MATERIAL IMPACT OF COVID-19 TO DATE ⚫ THE USUAL SEASONAL EFFECTS EXPLAIN THE CHANGE IN NET DEBT BETWEEN END-DECEMBER 2019 AND END-MARCH 2020 ⚫ CHANGE IN NET DEBT BETWEEN END-MARCH 2019 AND END-MARCH 2020 MAINLY REFLECTS THE POSITIVE €1.4BN IMPACT OF ALSTOM (DIVID
Slide 9: Change in net debt position (1/2)
CHANGE IN NET DEBTa POSITION (1/2) €m Net debt at 31/12/2019 Net debt at 31/03/2020 (2,222) (3,589) -37 +8 Operations Acquisitionsb / Capital transactionsc Disposals and other -1,338 Q1 2019 (3,612) -157d -19e -1,323 (5,111) (a) See glossary for definition (b) Including the acquisition of Granite Co
Slide 10: Change in net debt position (2/2)
CHANGE IN NET DEBT POSITION (2/2) €m Breakdown of operations Repayment of lease Net cash flowa obligations Net Capex -90 Change in WCR +145 and otherb -457 -1,338 +55 Net cash flow including lease expenses -936 Q1 2019 +207 -83 -436 -1,011 -1,323 +124 Net cash flow including lease expenses (a) Net c
Slide 11: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 11
Slide 12: Construction businesses
CONSTRUCTION BUSINESSES Clement Canopy – Singapore Highway 404 – Ontario – Canada Sensations – Strasbourg – France 12
Slide 13: Backlog remains at a high level
BACKLOG REMAINS AT A HIGH LEVEL Backlog in the construction businesses (€bn) ⚫ BACKLOG AT END-MARCH 2020: €33.5BN 34.4 -3%b 33.5 2.4 -8% 2.2 ◼ Bouygues Construction backlog has yet to include the High-Speed rail line (HS2) project in the UK, worth €1.1 billiona 10.0 Stablec 10.0 ◼ 62% of the backlog
Slide 14: Example of contracts won in Q1 2020
EXAMPLE OF CONTRACTS WON IN Q1 2020 Combined-cycle gas and steam power plant – Leuna Germany (>€100m) Control center for the lines 16 and 17 of Grand Paris Express (€141m) Two contracts for highways and one for taxiway – Alaska - USA (€75m) 14 Housing complex – Architect Frédéric Genin – Monaco (€11
Slide 15: Construction activities key figures
CONSTRUCTION ACTIVITIES KEY FIGURES SHARP DECLINE OF Q1 2020 ACTIVITY SINCE LOCKDOWN €m Q1 2019 Q1 2020 Change IN FRANCE AND IN NEIGHBORING COUNTRIES Sales 5,934 5,248 -12%b ◼ Sales down 11%a o/w France 3,035 2,474 -18% > Good start of activity in January and February at Colas and Bouygues o/w inter
Slide 16: Gradual restart of activity since mid-April
GRADUAL RESTART OF ACTIVITY SINCE MID-APRIL ⚫ CAPITALIZING ON THE HONG KONG EXPERIENCE On April 24, @MartinBouygues visited a site on avenue Charles de Gaulle in Neuilly near Paris for the restart of construction work. The ◼ Implementation of the processes designed for Hong Kong worksites in Februar
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Slide 18: TF1 key figures
TF1 KEY FIGURES INITIAL IMPACTS OF COVID-19 ON Q1 2020 RESULTS ◼ TF1 group’s audience share maintained at a high level in key targets €m Q1 2019 Q1 2020 Change ◼ Sales down 9%a year-on-year mainly due to decline in advertising in the Covid-19 crisis context Sales 554 494 -11%b > Gradual cancellation
Slide 19: Slide 19
Slide 20: Growth in mobile and fixed customer base
GROWTH IN MOBILE AND FIXED CUSTOMER BASE Mobile plan customers excl. MtoMa 11.7 ⚫ 11.7 MILLION MOBILE PLAN CUSTOMERS EXCLUDING MtoMa (millions of customers) AT END-MARCH 2020 11.0 10.4 ◼ +113,000 customers in Q1 2020 9.9 9.3 ⚫ 4 MILLION FIXED CUSTOMERS AT END-MARCH 2020 ◼ +47,000 customers in Q1 202
Slide 21: Covid-19 effects on usage
COVID-19 EFFECTS ON USAGE Zone Europe+RDM Voice usage on Mobile on weekdays ⚫ Suivi SIGNIFICANT GROWTH IN MOBILE AND FIXED USAGE quotidien SINCERoaming V/H LOCKDOWN (average hour/customer) Voice+Data ◼ Average voice usage per day on Mobile up 50% ◼ Average internet usage per day on Fixed up 30% ⚫ A
Slide 22: Low Covid-19 impact on Q1 2020 sales from services
LOW COVID-19 IMPACT ON Q1 2020 SALES FROM SERVICES Sales from Services evolution (€m) +10% 1,205 ⚫ SALES FROM SERVICES UP 10% YEAR-ON-YEAR 1,031 +6% 1,094 343 389 312 ◼ Up 9% in Mobile 719 751 816 > Positive revenue impact from incoming calls (no EBITDA after Leases gain due to higher interconnectio
Slide 23: Bouygues Telecom key figures
BOUYGUES TELECOM KEY FIGURES €m Q1 2019 Q1 2020 Change ⚫ Q1 2020 SALES UP 2.5% YEAR-ON-YEAR Sales 1,451 1,487 +2.5%a ◼ Sales from Services up 10% o/w Sales from Services b 1,094 1,205 +10% ◼ Decrease in Other sales o/w Other salesb 357 282 -21% > Unfavorable basis of comparison in build-to-suit reve
Slide 24: Stable EBITDA after Leases year-on-year in Q1 2020
STABLE EBITDA AFTER LEASES YEAR-ON-YEAR IN Q1 2020 ◼ About €30m of non-recurrent opex in Q1 2020 mainly due to brand and advertising expenses as well as Covid-19 costs In €m +10 -10 -50 +100 -20 -30 Ongoing Specific Q1 Ongoing Specific Q1 Non-recurrent 300 activity activity 299 EBITDA After Tax acco
Slide 25: Progressive reopening of business activity
PROGRESSIVE REOPENING OF BUSINESS ACTIVITY ⚫ CONTINUATION OF INFRASTRUCTURE PARTNERSHIP PROJECTS DURING LOCKDOWN ◼ Partnership with PTIa to deploy 4,000 sites in non-dense areas: deal closed and beginning of roll-out implementation ◼ Saint Malo fiber backhauling network: agreement signed with Cellne
Slide 26: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 26
Slide 27: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m Q1 2019 Q1 2020 Change Sales 7,933 7,219 -9%a Current operating profit/(loss) (58) (242) -€184m Other operating income and expenses 15b 2c -€13m Operating profit/(loss) (43) (240) -€197m Cost of net debt (54) (43) +€11m o/w financial income 10 13 +€3m o/w f
Slide 28: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 28
Slide 29: The Group's fundamentals are sound
THE GROUP’S FUNDAMENTALS ARE SOUND ◼ A portfolio of diversified activities with Bouygues Telecom more resilient in this unprecedented crisis ◼ Activities well-positioned in markets with positive medium- to long-term prospects ◼ A strong balance sheet and solid financial position ◼ 130,500 committed
Slide 30: All business segments focused on mitigating the impact of the crisis
ALL BUSINESS SEGMENTS FOCUSED ON MITIGATING THE IMPACT OF THE CRISIS ⚫ ENSURE THE SAFETY AND SECURITY OF ALL EMPLOYEES, SUBCONTRACTORS AND CLIENTS AS FIRST PRIORITY ◼ Widespread application of work-from-home ◼ Implementation of safety procedures related to Covid-19 and distribution of personal prote
Slide 31: 2020 Outlook (1/2)
2020 OUTLOOK (1/2) ◼ On 1st April, Bouygues announced: > The withdrawal of the 2020 guidance for the Group, the construction businesses and TF1 > The suspension of Bouygues Telecom 2020 objectives > The confirmation of the Group 2030 greenhouse gas emissions reduction objective, with the definition
Slide 32: 2020 Outlook (2/2)
2020 OUTLOOK (2/2) ◼ As of today, the full-year impact of Covid-19 on the Group, the construction businesses and TF1 remains uncertain. Given the lack of visibility on business reopenings and catch-up of activity, as well as the uncertain outcome of the current crisis, it is too early to give any ne
Slide 33: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 33
Slide 34: Construction businesses' international sales in 2019
ANNEX CONSTRUCTION BUSINESSES’ INTERNATIONAL SALES IN 2019 NORTHERN AND CENTRAL EUROPE RUSSIA 0% NORTH AMERICA 41% 27% SOUTHERN EUROPE 2% MIDDLE EAST 20% ASIA-PACIFIC 7% AND AFRICA 3% LATIN AMERICA AND CARIBBEAN Construction businesses: regional sales % as a proportion of total international sales i
Slide 35: Backlogs in the construction businesses
ANNEX BACKLOGS IN THE CONSTRUCTION BUSINESSES International backlog (€bn) Backlog in France (€bn) -1%a -5%a 19.7 19.5 14.6 14.0 0.1 +6% 0.1 2.3 -8% 2.1 6.2 6.5 +5%b 3.8 3.5 -7%b 13.5 -4%c 13.0 8.5 -3% 8.3 End-March 2019 End-March 2020 End-March 2019 End-March 2020 Bouygues Construction Colas Bouygue
Slide 36: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France International Order intakea (€bn) 2.5 -8% 2.4 2.3 €m Q1 2019 Q1 2020 Change 1.2 1.5 1.4 Sales 3,148 2,931 -7%a -9% o/w France 1,226 1,120 -9% 1.3 o/w international 1,922 1,811 -6% 0.9 0.9 -6% Current operating profit/(loss) 77 39 -€38m Current operat
Slide 37: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€m) Commercial property -19% 471 482 €m Q1 2019 Q1 2020 Change 6 20 390 -90% Sales 527 373 -29%a 2 o/w residential 487 329 -32% 465 462 o/w commercial 40 44 +10% 388 -16% Current operating profit/(loss) 14 (16) -€30m Curren
Slide 38: Key figures at Colas
ANNEX KEY FIGURES AT COLAS Backlog (€bn) Stablea €m Q1 2019 Q1 2020 Change 10.0 10.0 Sales 2,287 1,959 -14%a 8.4 -7%b o/w France 1,353 1,024 -24% 3.5 o/w international 934 935 0% 3.8 Current operating profit/(loss) (298) (370) -€72m 3.5 Operating profit/(loss) (298) (370) -€72m (a) Down 10% like-for
Slide 39: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Sales from mobile services (€m) 719 734 779 754 2,986 751 776 804 818 3,149 816 Sales from fixed services (€m) 312 309 319 330 1,270 343 356 367 382 1,448 389 Mobile customer ba
Slide 40: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Total premises on the marketc Bouygues Telecom at end-March 2020 Very Dense 6.4 Area 4.3 Target of FTTH premises marketed by end-2022 Medium Dense Area 13.2 AMIId 7.6 22 35.5 13.0 Public Initiative 15.9 Network (PIN) Aread 1.2 (a) Fiber-To-The-Home – optical
Slide 41: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m Q1 2019 Q1 2020 Change constant FXa Construction businessesb 5,934 5,248 -12% -11% o/w Bouygues Construction 3,148 2,931 -7% -8% o/w Bouygues Immobilier 527 373 -29% -29% o/w Colas 2,287 1,959 -14% -10% TF1 554 494 -11% -9% Bouygues Telecom 1,451 1,487 +2.5
Slide 42: Contribution to Group EBITDA after Leases by sector of activity
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY €m Q1 2019 Q1 2020 Change Construction businesses (145) (303) -€158m o/w Bouygues Construction 105 37 -€68m o/w Bouygues Immobilier (6) (26) -€20m o/w Colas (244) (314) -€70m TF1 116 88 -€28m Bouygues Telecom 300 299 -€1m Holding
Slide 43: Contribution to Group current operating profit
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT €m Q1 2019 Q1 2020 Change Construction businesses (207) (347) -€140m o/w Bouygues Construction 77 39 -€38m o/w Bouygues Immobilier 14 (16) -€30m o/w Colas (298) (370) -€72m TF1 63 42 -€21m Bouygues Telecom 91 68 -€23m Holding company and other (5)
Slide 44: Contribution to Group operating profit
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT €m Q1 2019 Q1 2020 Change Construction businesses (207) (347) -€140m o/w Bouygues Construction 77 39 -€38m o/w Bouygues Immobilier 14 (16) -€30m o/w Colas (298) (370) -€72m TF1 63 42 -€21m Bouygues Telecom 106 70 -€36m Holding company and other (5) (5) €0
Slide 45: Contribution to net profit attributable to the Group
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP €m Q1 2019 Q1 2020 Change Construction businesses (158) (283) -€125m o/w Bouygues Construction 55 22 -€33m o/w Bouygues Immobilier 6 (15) -€21m o/w Colas (219) (290) -€71m TF1 18 11 -€7m Bouygues Telecom 53 36 -€17m Alstom 33 35 +€2m Holding
Slide 46: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-March €m End-Dec 2019 Change 2020 Non-current assets 20,239 20,259 +€20m Current assets 19,115 20,184 +€1,069m Held-for-sale assets and operations - - - TOTAL ASSETS 39,354 40,443 +€1,089m Shareholders' equity 11,800 11,551 -€249m Non-current liabilitie
Slide 47: Contribution to Group net cash flow
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa €m Q1 2019 Q1 2020 Change Construction businesses (145) (232) -€87m o/w Bouygues Construction 113 103 -€10m o/w Bouygues Immobilier (1) (24) -€23m o/w Colas (257) (311) -€54m TF1 108 82 -€26m Bouygues Telecom 278 315 +€37m Holding company and other (34) (20
Slide 48: Contribution to net capital expenditure
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE €m Q1 2019 Q1 2020 Change Construction businesses 86 51 -€35m o/w Bouygues Construction 57 14 -€43m o/w Bouygues Immobilier 2 2 €0m o/w Colas 27 35 +€8m TF1 45 63 +€18m Bouygues Telecom 303 344 +€41m Holding company and other 2 (1) -€3m Net capital expen
Slide 49: Contribution to Group free cash flow
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa €m Q1 2019 Q1 2020 Change Construction businesses (275) (333) -€58m o/w Bouygues Construction 34 64 +€30m o/w Bouygues Immobilier (5) (28) -€23m o/w Colas (304) (369) -€65m TF1 58 14 -€44m Bouygues Telecom (59) (64) -€5m Holding company and other (36) (19)
Slide 50: Net debt / net surplus cash
ANNEX NET DEBT (-)/NET SURPLUS CASHa (+) End-March €m End-Dec 2019 Change 2020 Bouygues Construction 3,113 2,632 -€481m Bouygues Immobilier (279) (406) -€127m Colas (367) (944) -€577m TF1 (127) (27) +€100m Bouygues Telecom (1,454) (1,690) -€236m Holding company and other (3,108) (3,154) -€46m Net de
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 ◼ Current operating profit, after taking account of the interest expense on lease obligations, before (i) net depreciation and amortization