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Bouygues SA — Investor Presentation (March 2005)

35 slides from Bouygues SA's investor presentation, March 2005

  1. Slide 1: Highlights, Business Areas, Accounts, Broadband Strategy, Outlook

    „ HIGHLIGHTS „ BUSINESS AREAS „ ACCOUNTS „ BROADBAND STRATEGY „ OUTLOOK AND OBJECTIVES 1

  2. Slide 2: 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

  3. Slide 3: 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

  4. Slide 4: 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

  5. Slide 5: 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

  6. Slide 6: 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

  7. Slide 7: 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%

  8. Slide 8: 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

  9. Slide 9: Colas: geographical breakdown of sales

    COLAS: geographical breakdown of sales Europe France excl. France America 61% 16% 18% Other 5% 9

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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 +

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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

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