Slide 1: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook
HIGHLIGHTS BUSINESS AREAS ACCOUNTS BROADBAND STRATEGY OUTLOOK AND OBJECTIVES 1
Slide 2: Highlights in 2004
HIGHLIGHTS IN 2004 Group net earnings: €858 million Group net earnings excluding capital gain on disposal of Saur: €670 million (+ 49%) Strong improvement in cash in all the Group's business areas Construction businesses: a very good year in terms of sales and profitability Conversion and
Slide 3: Bouygues Group: key operating figures
BOUYGUES GROUP: key operating figures Million euros 2003 2004 Change Sales 21,822 23,402 + 7% Operating income 1,238 1,547 + 25% Net earnings attributable 450 858 + 91% to the Group Net earnings, excluding capital 450 670 + 49% gain on disposal of Saur 2004 profit reached a record high 3
Slide 4: Bouygues: key figures over 5 years
BOUYGUES: key figures over 5 years (in million euros) Sales EBITDA 22,247 21,822 23,402 (+ 7%) 2,730 (+ 13%) 20,473 2,415 19,060 2,260 + 23% + 85% 1,680 1,474 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Operating income 1,547 (+ 25%) Net earnings 858 (+ 91%) Non-recurring items 1,238 Recurring
Slide 5: Bouygues: key figures per share
BOUYGUES: key figures per share (in euros) Net earnings per share Net dividend per share (excluding exceptional payout) 0.75 * 2.57 1.93 0.50 x 4.5 x3 1.31 1.34 0.36 0.36 0.36 1.03 0.26 2.01 0.93 0.75 0.45 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004 Non-recurring items * to be propose
Slide 6: Bouygues Group: financial structure (1/2)
BOUYGUES GROUP: financial structure (1/2) Million euros 2002 2003 2004 Shareholders' equity 6,379 6,192 5,087 Book net debt 1,680 3,201 2,786 Restated net debt 2,313 Restated net debt/shareholders' equity 50% 45% 45% 9 Shareholders' equity includes the impact of the exceptional payout and the capita
Slide 7: Bouygues Group: financial structure (2/2)
BOUYGUES GROUP: financial structure (2/2) Million euros 2002 2003 2004 Cash flow 1,713 2,073 2,267 Net operating investment 1,226 * 930 1,086 Free cash flow 487 * 1,143 1,181 * excluding UMTS licence Increasing generation of free cash flow 7
Slide 8: Dividends over the last five years
DIVIDENDS OVER THE LAST FIVE YEARS 2000 2001 2002 2003 2004 Consolidated earnings excl. capital gains (€m) 149 251 319 450 670 Bouygues SA earnings (€m) 478 237 121 216 586 Dividend per share (€) 0.36 0.36 0.36 0.50 0.75 Number of shares at 31/12 (in millions) 333 344 344 333 333 Amount distributed
Slide 9: Bouygues: share ownership structure at 31 December 2004
BOUYGUES: share ownership structure at 31 December 2004 Capital Voting rights Foreign Foreign shareholders SCDM shareholders SCDM 17% Groupe 21% 27% 25% Artémis 8% (F. Pinault) Groupe 7% 12% Artémis 31% 16% (F. Pinault) 36% Employees Other Other Employees French French shareholders shareholders
Slide 10: Stock market
STOCK MARKET The 10th best performance of the CAC 40 in 2004 38 Bouygues 7 January 2005: adjusted 36 exceptional payout made 34 Bouygues * 32 €32.32 CAC 40 30 28 26 31/12/2003 31/03/2004 30/06/2004 30/09/2004 31/12/2004 * at 25 February 2005 10
Slide 11: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook
HIGHLIGHTS BUSINESS AREAS ACCOUNTS BROADBAND STRATEGY OUTLOOK AND OBJECTIVES 1
Slide 12: Bouygues Construction: key figures
BOUYGUES CONSTRUCTION (B/CW): key figures Million euros 2003 2004 Sales 5,002 5,512 France 2,946 3,236 International 2,056 2,276 Earnings before tax 70 181 and exceptional items Net earnings 32 144 Net cash 1,346 1,520 Sail@Marina Bay, Singapore A very good year Operational margin exceeding 3% in 20
Slide 13: Bouygues Construction: order book
BOUYGUES CONSTRUCTION (BCW): order book At 31/12/2004 €bn 55% 4.8 4.9 5.0 5 4.6 4.6 4.0 3.8 3% 4 3.6 3.6 3.5 6% 75% 3 of which France and Europe 16% 2 20% 1 France 0 Europe (excluding France) 2000 2001 2002 2003 2004 Asia Africa Latin America and other High-quality order book 3
Slide 14: Bouygues Construction: strategy and outlook
BOUYGUES CONSTRUCTION (BCW): strategy and outlook Achieve long-term profitability Develop high-growth markets 9 Private/Public Partnerships in France and abroad 9 Electricity/Maintenance Sales target for 2005 *: 5,500 = 9 France 3,200 = 9 International 2,300 = * IFRS standards - change on 2004
Slide 15: Bouygues Immobilier: key figures
BOUYGUES IMMOBILIER: key figures Million euros 2003 2004 Sales 1,230 1,295 housing 711 864 corporate/commercial 519 431 Operating income 80 114 Net earnings 44 65 Net cash 88 251 Le Monde headquarters, Paris Substantial increase in margins and cash 5
Slide 16: Bouygues Immobilier: business activity
BOUYGUES IMMOBILIER: business activity 2004 RESERVATIONS 2003 2004 2003 Housing Number 5,405 6,759 + 25% Total (€m) 806 1,069 + 33% Corporate/Commercial Office space (sq. m.) 163,000 167,000 + 2% Total (€m) 591 481 - 19% TOTAL (€m) 1,397 1,550 + 11% Strong business activity in housing 6
Slide 17: Bouygues Immobilier: strategy and outlook
BOUYGUES IMMOBILIER: strategy and outlook Pursue dynamic growth while controlling risks Maintain profitability and a sound financial structure Consolidate its position as France's leading property developer and become a major player in the European market Sales target for 2005 *: 1,450 + 13%
Slide 18: Colas: key figures
COLAS: key figures Million euros 2003 2004 Sales 7,426 8,013 France 4,465 4,903 International 2,961 3,110 Operating income 262 289 Net earnings 204 241 Net cash 255 488 A75 motorway, France Good growth in sales Sharp rise in profit Further improvement in cash 8
Slide 19: Colas: geographical breakdown of sales
COLAS: geographical breakdown of sales Europe France excl. France America 61% 16% 18% Other 5% 9
Slide 20: Colas: order book
COLAS: order book End-January End-January 2004 Million euros 2004 2005 2003 France 2,053 2,298 + 12% International 1,622 2,156 + 33% TOTAL 3,675 4,454 + 21% Markets remain buoyant, giving a good start to 2005 10
Slide 21: Colas: strengths
COLAS: strengths A strategic asset: material reserves 9 535 quarry sites in over 15 countries 9 over 2 billion tonnes of aggregate supplies, i.e. approximately 25 years of reserves Geographically balanced activity Strong presence in Central Europe Limited exposure to the dollar The world lea
Slide 22: Colas: locations in Central Europe
COLAS: locations in Central Europe Poland Czech Republic Slovakia Hungary Romania 20 local subsidiaries 2004 sales: €520m (up 25% on 2003) 9 for info: almost no sales booked in 1993 Activities: quarries, roadworks, pipes & mains, civil engineering12
Slide 23: Colas: breakdown of sales
COLAS: breakdown of sales Economic revenue Civil engineering Roadworks 7% Pipes and mains €557m €5,681m 69% 3% Safety, signs and signals €228m 82% 13% 18% 4% Waterproofing €330m Construction materials 3% Building €217m €1,044m 1% Railways €106m A non-cyclical business 13
Slide 24: Colas: strategy and outlook
COLAS: strategy and outlook Seize external growth opportunities Extend geographical coverage and strengthen industrial activities upstream Meet PFI, PPP and Facilities Management demand 9 1st contract won in Portsmouth, UK (£400m over 25 years) Sales target for 2005 *: €8,400m + 5% 9 France
Slide 25: TF1: key figures
TF1: key figures 2004 Million euros 2003 2004 2003 Sales 2,743 2,835 + 3% (1) core channel advertising 1,544 1,646 + 7% diversification activities 1,199 1,189 - 1% (2) Operating income 334 399 + 19% Net earnings 192 220 + 15% Net debt 443 412 - 7% (1) (2) + 7% using the same accounting method (third
Slide 26: TF1: leader in terms of audience share
TF1: leader in terms of audience share Channel 2003 2004 Change Women under 50 34.4 % 35.5% + 1.1 pts Individuals 4 years and over 31.5 % 31.8% + 0.3 pts Viewing time per person / day 3 hrs 22 3 hrs 24 + 2 min (individuals 4 years and over) Advertising market share 54.7 % 54.8% + 0.1 pts Strongest g
Slide 27: TF1: Eurosport key figures
TF1: Eurosport key figures Million euros 2003 2004 Sales 283 291 Operating income 25.7 27.5 Net earnings 5.0 2.5 Contribution to TF1 group Leading pan-European channel 9 98 million households including 51.5 million direct paying subscribers 9 54 countries and 19 languages Rise in audience figure
Slide 28: TF1: TPS key figures
TF1: TPS key figures Million euros 2003 2004 Sales 353 376 Operating income 2.8 1.3 Net earnings (6.4) (3.4) Contribution to TF1 group 1.675 million subscribers, including 1.355 million via Direct Broadcast Satellite and ADSL Record sales in December and January 18
Slide 29: TF1: strategy and outlook
TF1: strategy and outlook Ambitions 9 maintain TF1 channel's leading position 9 continue to consolidate TPS's commercial presence 9 develop and increase the profitability of TF1's other activities 9 expand in Europe in the medium term Sales target for 2005 *: €2,930m + 3% 9 advertising €1,710m +
Slide 30: Bouygues Telecom: share ownership structure
BOUYGUES TELECOM: share ownership structure 83.0% 6.5% 10.5% Bouygues raised its stake in Bouygues Telecom from 34% to 83% in six years 20
Slide 31: Bouygues Telecom: key figures
BOUYGUES TELECOM: key figures Million euros 2003 2004 Change Sales 3,283 3,674 + 12% Net sales from network 2,995 3,326 + 11% including data (%) 13.8% 17.7% + 3.9 pts EBITDA 1,001 1,174 + 17% EBITDA / net sales from network 33.4% 35.3% + 1.9 pt Operating income 461 549 + 19% Net earnings 201 321 + 6
Slide 32: Bouygues Telecom: financial structure
BOUYGUES TELECOM: financial structure Million euros 2003 2004 Change Shareholders' equity 1,553 1,787 + 15% Net debt 1,798 1,196 - 33% of which bank debt 1,031 582 - 44% of which shareholder loans 767 614 - 20% Net debt / shareholders' equity 116% 67% - 49 pts Cash flow 896 1,133 + 26% Gross operati
Slide 33: Bouygues Telecom: free cash flow
BOUYGUES TELECOM: free cash flow Gross operating investments Cash flow €m Free cash flow 1200 1,133 1000 896 530 800 738 741 411 600 273 * - 426 603 400 468 485 200 312 0 2001 2002 2003 2004 Sharp increase in free cash flow * excluding UMTS licence 23
Slide 34: Bouygues Telecom: commercial performance in Contract segment
BOUYGUES TELECOM: commercial performance in Contract segment (excluding Universal Mobile) Mainland France 2003 2004 Contract customer base (in thousands) (1) 4,207 4,760 ARPU (€/month) 52 50 SAC (€/customer) 231 243 Monthly churn 1.6% 1.3% Usage (min/month) 390 393 (1) at 31 December Contract cust
Slide 35: Bouygues Telecom: commercial performance in Prepaid segment
BOUYGUES TELECOM: commercial performance in Prepaid segment Mainland France 2003 2004 Active SIM cards (in thousands) (1) 2,235 2,397 ARPU (€/month) 18 16 SAC (€/customer) 22 27 Usage (min/month) 89 85 (1) at 31 December ARPU affected by the decrease in incoming rates 25
Slide 36: Bouygues Telecom: commercial performance
BOUYGUES TELECOM: commercial performance All customers (mainland France) 2003 2004 ARPU (€/month) 39.5 38.4 SAC (€/customer) 146 148 Usage (min/month) 283 288 High ARPU thanks to a favourable customer mix 26
Slide 37: Bouygues Telecom: success of i-mode
BOUYGUES TELECOM: success of i-mode Launch in November 2002 One million paying-customer-mark passed in December 2004 Rich portal: 300 official sites, over 200 games, 50 JavaTM applications and 5,000 independent sites Accessible with all contracts and mini-contracts Highly satisfied content
Slide 38: Bouygues Telecom: market share
BOUYGUES TELECOM: market share Sales (1) Customer base (2) 2003 2004 2003 2004 Bouygues Telecom 18.2% 18.9% 15.9% 16.8% Orange France 44.4% 44.2% 48.8% 47.7% SFR 37.4% 36.9% 35.3% 35.5% (1) Source: operators (2) Source: ART, France's telecoms regulator A greater market share by value than the custom
Slide 39: Bouygues Telecom: controlled costs
BOUYGUES TELECOM: controlled costs Efficiency projects: implementing purchasing policy, controlling IT costs and overheads, pursuing actions in Network, Customer and Communication divisions Control over commercial costs 20% 16.3% 15.5% 16% 4.8% Subscriber retention costs 4.8% 12% as a % of net s
Slide 40: Is France's mobile phone market under-exploited?
IS FRANCE'S MOBILE PHONE MARKET UNDER-EXPLOITED? The share of telecommunication services in French household expenditure is one of the highest in Europe: 9 2.85% in 2004 compared with 1.45% in 1996 (source: OMSYC) This growth is due to intensive usage of mobile phones: 9 At end-2005, 50% of call
Slide 41: MVNOs
MVNOs MVNOs are merely the return in a different guise of the services marketing companies that existed 10 years ago and disappeared because of the problems encountered: 9 high marketing costs 9 commercial disputes 9 churn rates Can higher operating costs on a market bring down prices? If that w
Slide 42: Bouygues Telecom: outlook
BOUYGUES TELECOM: outlook Sales target for 2005 2004 2005 in million euros Change IFRS IFRS Net sales from network 3,326 3,560 + 7% excluding mobile-to-mobile billing Mobile-to-mobile billing 0 680 ns Net sales from network 3,326 4,240 ns Total sales * 3,674 4,540 ns * the difference between net s
Slide 43: Saur: disposal
SAUR: disposal Sale of Saur concluded with PAI partners on 19 November 2004 for €1,031m (including businesses in France, Spain and Poland) Transfer of securities and payment on 15 February 2005 Bouygues spent €58m for a 15% stake in the company that purchased Saur A net capital gain for Bouy
Slide 44: Impact of disposal of Saur
IMPACT OF DISPOSAL OF SAUR Million euros Impact on Bouygues' net debt: Sale price - 1,031 Acquisition of a 15% stake in the company that owns Saur + 58 - 973 Impact on Bouygues' shareholders' equity: Net capital gain booked in 2004 + 188 34
Slide 45: Saur: activities retained by Bouygues
SAUR: activities retained by Bouygues Water and power supply activities in Africa 9 Bouygues has little net exposure in Ivory Coast Shareholding in water supply companies in Italy Small team transferred from Saur to Bouygues to continue managing these activities, and technical assistance contr
Slide 46: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook
HIGHLIGHTS BUSINESS AREAS ACCOUNTS BROADBAND STRATEGY OUTLOOK AND OBJECTIVES 1
Slide 47: Bouygues: consolidated income statement
BOUYGUES: consolidated income statement 2004 Million euros 2003 2004 2003 Sales 21,822 23,402 + 7% Operating income 1,238 1,547 + 25% Earnings before tax 1,019 1,382 + 36% and exceptional items Exceptional items (14) 209 ns Income tax (380) (519) + 37% Net earnings attributable 450 858 + 91% to the
Slide 48: Bouygues: contribution of business areas to sales
BOUYGUES: contribution of business areas to sales 2004 Million euros 2003 2004 2003 Bouygues Construction 4,742 5,228 + 10% Bouygues Immobilier 1,229 1,294 + 5% Colas 7,387 7,936 +7% TF1 2,727 2,817 + 3% Bouygues Telecom 3,271 3,658 + 12% Saur 2,448 2,453 = Holding and other 18 16 ns TOTAL 21,822 23
Slide 49: Bouygues: contribution of business areas to EBITDA
BOUYGUES: contribution of business areas to EBITDA 2004 Million euros 2003 2004 2003 Bouygues Construction 180 246 + 37% Bouygues Immobilier 85 118 + 39% Colas 505 549 + 9% TF1 455 494 + 9% Bouygues Telecom 1,006 1,153 + 15% Saur 190 184 - 3% Holding and other (6) (14) ns TOTAL 2,415 2,730 + 13% 4
Slide 50: Bouygues: contribution of business areas to operating income
BOUYGUES: contribution of business areas to operating income 2004 Million euros 2003 2004 2003 Bouygues Construction 37 132 x 3.6 Bouygues Immobilier 80 114 + 43% Colas 262 289 + 10% TF1 332 398 + 20% Bouygues Telecom 460 550 + 20% Saur 88 91 + 3% Holding and other (21) (27) ns TOTAL 1,238 1,547 + 2
Slide 51: Bouygues: contribution of business areas to net earnings
BOUYGUES: contribution of business areas to net earnings 2004 Million euros 2003 2004 2003 Bouygues Construction 23 146 + 123 Bouygues Immobilier 44 65 + 21 Colas 192 233 + 41 TF1 79 91 + 12 Bouygues Telecom (1) 146 266 + 120 Saur 20 (4) - 24 Holding and other (54) 61 + 115 Net earnings excl. capita
Slide 52: Bouygues: profitability analysis in 2004 (1/2)
BOUYGUES: profitability analysis in 2004 (1/2) 2003 2004 Operating Operating At business level ROCE (1) ROCE (1) margin margin Bouygues Construction 0.8% +++ (2) 2.4% +++ (2) Bouygues Immobilier 6.5% 34.5% 8.8% ++ (3) Colas 3.5% 22.8% 3.6% 26.5% (1) Operating income after tax and share of companies
Slide 53: Bouygues: profitability analysis in 2004 (2/2)
BOUYGUES: profitability analysis in 2004 (2/2) 2003 2004 Operating Operating ROCE (1) ROCE (1) margin margin At business level TF1 12.6% (2) 16.0% 14.1% 18.2% Bouygues Telecom 14.1% 8.5% 15.0% 11.2% Saur 3.6 % 5.7 % At Group level Bouygues 5.7% 8.6% 6.6% 12.0% (1) operating income after tax and shar
Slide 54: Bouygues: contribution of business areas to cash flow
BOUYGUES: contribution of business areas to cash flow 2004 Million euros 2003 2004 2003 Bouygues Construction 206 269 + 31% Bouygues Immobilier 55 82 + 49% Colas 453 488 + 8% TF1 318 305 - 4% Bouygues Telecom 866 1,111 + 28% Saur 177 143 - 19% Holding and other (2) (131) ns TOTAL 2,073 2,267 + 9% 1
Slide 55: Bouygues: contribution of business areas to net investments
BOUYGUES: contribution of business areas to net investments Operating investments 2004 Million euros 2003 2004 2003 Bouygues Construction 87 75 - 12 Bouygues Immobilier 2 4 +2 Colas 256 340 + 84 TF1 93 76 - 17 Bouygues Telecom 381 515 + 134 Saur 121 77 - 44 Holding and other (10) (1) +9 TOTAL 930
Slide 56: Bouygues: condensed consolidated balance sheet
BOUYGUES: condensed consolidated balance sheet at 31 December Million euros 2002 2003 2004 Shareholders' equity 6,379 6,192 5,087 Long & medium term provisions 1,882 1,896 1,866 Financial liabilities 4,825 5,160 4,686 Long-term capital 13,086 13,248 11,639 Fixed assets 12,357 11,983 10,753 Working c
Slide 57: Bouygues S.A.: condensed balance sheet
BOUYGUES S.A.: condensed balance sheet at 31 December Million euros 2002 2003 2004 Shareholders' equity 5,103 4,901 3,593 Long & medium-term provisions 232 177 187 Financial liabilities 2,232 2,978 3,345 Long-term capital 7,567 8,056 7,125 Long-term investments 6,651 7,823 7,276 Other assets 9 1 1 C
Slide 58: Bouygues: cash position
BOUYGUES: cash position In €m Net cash at 31 December 2003 (2,786) 9 change in scope of consolidation (disposal of Saur) - 124 9 acquisition of Bouygues securities for cancellation - 471 9 conversion of Oceane bonds + 418 9 ordinary dividends paid by Bouygues and TF1 (minority interests) - 249 9 r
Slide 59: Bouygues: net cash by business area
BOUYGUES: net cash by business area 2004 Million euros 2003 2004 2003 Bouygues Construction 1,346 1,520 + 174 Bouygues Immobilier 88 251 + 163 Colas 255 488 + 233 TF1 (426) (404) + 22 Bouygues Telecom (1,031) (582) + 449 Saur 75 0 - 75 Holding and other (3,093) (2,953) + 140 Net book cash (2,786) (1
Slide 60: Bouygues: financing policy
BOUYGUES: financing policy Available cash at 31 December 2004: 6.6 billion euros 7000 6000 Debt repayment schedule 5000 Undrawn MLT 4000 credit lines 3000 2000 Cash 1000 0 Liquidity 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 €633m: net impact of exceptional payout (€1,664) on 07/01/05 and pro
Slide 61: New IFRS standards: status report
NEW IFRS STANDARDS: status report Opening balance sheet at 1 January 2004 9 drawn up according to published standards 9 French standards maintained: utilities management services and customer retention provisions (Bouygues Telecom) Financial statements as of 31 December 2004 9 in progress 4
Slide 62: IFRS: condensed 2004 opening balance sheet (1/2)
IFRS: condensed 2004 opening balance sheet (1/2) French IFRS ASSETS (in €m) Change standards standards Tangible assets 4,532 5,020 + 488 Intangible assets 6,409 1,088 - 5,321 Goodwill 264 5,272 + 5,008 Other non-current assets 778 1,558 + 780 Current financial assets 2,616 2,598 - 18 Other current a
Slide 63: IFRS: condensed 2004 opening balance sheet (2/2)
IFRS: condensed 2004 opening balance sheet (2/2) French IFRS LIABILITIES (in €m) Change standards standards Shareholders' equity, Group share 5,131 5,014 - 117 Minority interests 1,061 890 - 171 Total shareholders' equity 6,192 5,904 - 288 Non-current provisions 1,896 1,516 - 380 Non-current financi
Slide 64: IFRS: impact on income statement for a standard year
IFRS: impact on income statement for a standard year Sales: 9 Water and power distribution businesses in Africa and Italy - €270m 9 Other businesses - €50m NB: same impact in operating expenses no impact on operating income Depreciation of tangible and intangible assets + €15m Depreciation of
Slide 65: IFRS: calendar
IFRS: calendar 3 May 2005 9 publication of 2005 first-quarter sales under IFRS standards with comparison of 2004 first-quarter sales under IFRS 22 June 2005 9 publication of 2005 first-quarter accounts under IFRS standards with comparison of 2004 first-quarter accounts under IFRS 9 accounts at 3
Slide 66: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook
HIGHLIGHTS BUSINESS AREAS ACCOUNTS BROADBAND STRATEGY OUTLOOK AND OBJECTIVES 1
Slide 67: Recap of Bouygues Telecom's broadband strategy
RECAP OF BOUYGUES TELECOM'S BROADBAND STRATEGY January 2001: refusal to take part in first round of bidding for a UMTS licence in France (price: 4.8 billion euros) April 2002: agreement with NTT DoCoMo to develop i-mode in France November 2002: commercial launch of i-mode December 2002: awar
Slide 68: Evolution of technologies since 2002
EVOLUTION OF TECHNOLOGIES SINCE 2002 2nd generation UMTS (UMTS-HSDPA): a real break Downlink: network to mobile Uplink: mobile to network Average speed Maximum speed 4,000 Débit moyen Débit max. 2000 140 128 1800 120 1600 100 100 1400 100 1200 1,000 80 60 64 1000 800 60 50 600 384 40 400 130 200 2
Slide 69: Evolution of technologies since 2002: 1st generation UMTS (UMTS-R99)
EVOLUTION OF TECHNOLOGIES SINCE 2002: 1st generation UMTS (UMTS-R99) As we have always maintained, UMTS-R99 technology does not meet expectations: 9 Technical difficulties remain • complex network engineering • administrative and practical difficulties in terms of rollout (new sites to be found) •
Slide 70: Evolution of technologies since 2002: EDGE (1/2)
EVOLUTION OF TECHNOLOGIES SINCE 2002: EDGE (1/2) EDGE: a technology in its infancy in 2002 and operational by 2004 9 118 operators in 69 countries have chosen EDGE or are in the process of rolling it out 9 38 networks have already launched it commercially More and more operators are choosing EDGE
Slide 71: Evolution of technologies since 2002: EDGE (2/2)
EVOLUTION OF TECHNOLOGIES SINCE 2002: EDGE (2/2) EDGE handsets will become an industry standard Q303 Q403 Q104 Q204 Q304 Q404 Sony Ericsson GC82 GC83 Z500a GC85 Z500i S710a Motorola T725 V547 V551 A780 V555 7260 6220 Nokia 6200 3200 6820 6230 7200 6620 6810 5140 3220 6170 6630 7270 9500 7280 P710
Slide 72: Conditions for successful mobile broadband services in France
CONDITIONS FOR SUCCESSFUL MOBILE BROADBAND SERVICES IN FRANCE Developing the use of mobile broadband requires an approach that focuses on customers rather than technologies: 9 national coverage 9 continuity of services 9 satisfactory speed thanks to reliable and proven technology 9 good-value serv
Slide 73: Bouygues Telecom's technological choices: EDGE in 2005
BOUYGUES TELECOM'S TECHNOLOGICAL CHOICES: EDGE in 2005 National and consistent coverage All i-mode services will be available with EDGE, including TV streaming Commercial launch: 9 May 2005 for the corporate market 9 4th quarter of 2005 for the mass market, with several i-mode-enabled EDGE han
Slide 74: Bouygues Telecom's technological choices
BOUYGUES TELECOM'S TECHNOLOGICAL CHOICES The issues facing Bouygues Telecom, Orange and SFR are not the same (different saturation levels) 9 Orange and SFR need greater voice capacity For the first time, Bouygues Telecom has the opportunity to restore the balance with its competitors in terms of
Slide 75: Comparison of unit costs between EDGE and UMTS
COMPARISON OF UNIT COSTS BETWEEN EDGE AND UMTS Breakdown Investment Unit cost of customers (€m) (€m per %) Bouygues Telecom 16.8% 230 13.7 Orange 47.7% 3,000 62.9 SFR 35.5% 3,000 84.5 Investment required: 9 EDGE (national coverage) €230m 9 UMTS-R99 (densely populated areas) €3,000m 10
Slide 76: Comparison of unit costs between EDGE and UMTS
COMPARISON OF UNIT COSTS BETWEEN EDGE AND UMTS Under current traffic conditions, the unit cost of EDGE is considerably lower than that of UMTS The data revenues currently generated by all European operators remain particularly low, unlike expected usage levels on UMTS networks Those who expect
Slide 77: Bouygues Telecom's technological choices
BOUYGUES TELECOM'S TECHNOLOGICAL CHOICES EDGE from our competitors' point of view: 9 Les Échos of 1 February 2001 (P. Germond, SFR): "EDGE is not yet a stable technology; it is still in the development stage. Volumes could well be so small as to make it very expensive indeed." 9 L'Express of 8 Feb
Slide 78: Bouygues Telecom's technological choices: 2nd generation UMTS (UMTS-HSDPA)
BOUYGUES TELECOM'S TECHNOLOGICAL CHOICES: 2nd generation UMTS (UMTS-HSDPA) A strategy of rolling out UMTS with HSDPA in densely populated areas as soon as the quality and reliability of hardware and handsets allow Rolling out UMTS-HSPDA directly is better than a two-stage rollout which would inv
Slide 79: Bouygues Telecom's technological choices: complementary technologies
BOUYGUES TELECOM'S TECHNOLOGICAL CHOICES: complementary technologies Voice and data network Densely National coverage Hot-Spots populated areas GSM / GPRS / EDGE UMTS - HSDPA WiFi / WiMAX The best strategy for a challenger 15
Slide 80: Our choices
OUR CHOICES Bouygues Telecom's objective has not changed: 9 offer simple, reliable and inexpensive products 9 our entire investment strategy flows from this mindset Mobile multimedia in Europe: everyone talks about it, but how much income does it really generate? 16
Slide 81: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook
HIGHLIGHTS BUSINESS AREAS ACCOUNTS BROADBAND STRATEGY OUTLOOK AND OBJECTIVES 1
Slide 82: Bouygues: sales targets for 2005 (IFRS)
BOUYGUES: sales targets for 2005 (IFRS) 2004 2005 Change 2004 Million euros French target 2005 IFRS IFRS 2004 standards Bouygues Construction 5,228 5,228 5,230 = Bouygues Immobilier 1,294 1,281 1,450 + 13% Colas 7,936 7,936 8,300 + 5% TF1 2,817 2,817 2,910 + 3% Bouygues Telecom 3,658 3,658 4,520 + 2
Slide 83: Bouygues: outlook
BOUYGUES: outlook Bright outlook for the Group over the coming years: 9 businesses with leading positions on buoyant markets 9 marked increase in earnings 9 substantial generation of free cash flow 9 sharp reduction in debt 3
Slide 84: Bouygues: our ambitions
BOUYGUES: our ambitions All business areas will pursue internal and external growth Bouygues will continue to increase remuneration for its shareholders The Group has considerable capacity to invest Bouygues is determined now more than ever to optimise its investments 4
Slide 85: Bouygues: 2005 financial communication calendar
BOUYGUES: 2005 financial communication calendar 28 April: Annual Meeting of Shareholders 3 May: First-quarter sales 4 May: Payment of dividend 22 June: First-quarter earnings 9 August: First-half sales 14 September: First-half earnings 8 November: 9-month sales 14 December: 9-month e