Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2015 Earnings Presentation
50 slides from Bouygues Sa's earnings presentation, May 13, 2015
Slide 1: First quarter 2015 results presentation
First quarter 2015 results presentation Paris – 32 Hoche 13 May 2015 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE
Slide 2: Forward-looking information 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: Reminder: changes in accounting methods for 2015
Reminder: changes in accounting methods for 2015 Application of IFRIC 21 from 1 January 2015, which has affected the timing of the recognition of some taxes (such as C3S and IFER in France) Neutral impact over the full year but material for quarterly reporting: these taxes are no longer spread o
Slide 4: Highlights and key figures; business areas; financial statements; outlook; annex
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 4
Slide 5: Q1 2015 highlights
Q1 2015 highlights As every year, Q1 results are not indicative of the Group’s full-year performance Bouygues Telecom’s good performance validates its strategy The construction businesses’ commercial activity showed continued momentum Full-year outlook is confirmed 5
Slide 6: Group key figures
Group key figures €m Q1 2014 restated Q1 2015 Change Sales 6,841 6,731 -2%a Current operating profit/(loss) (178) (194) -€16m Operating profit/(loss) 18b (216)c -€234m Net profit/(loss) attr. to the Group 238d (157) -€395m Net profit/(loss) attr. to the Group excl. exceptional itemse (111) (145) -€3
Slide 7: Financial results of the construction businesses
Financial results of the construction businesses Change like-for-like Q1 2014 €m restated Q1 2015 Change and at constant exchange rates Sales 5,208 5,203 0% -6% o/w France 3,184 2,995 -6% -6% o/w international 2,024 2,208 +9% -6% Current operating profit/(loss) (126) (146) -€20m o/w Bouygues Constru
Slide 8: Financial results of TF1
Financial results of TF1 Q1 2014 €m restateda Q1 2015 Change Sales 556 475 -15%b o/w group advertising 369 363 -2%c Current operating profit 19 28 +€9m Current operating margin 3.4% 5.9% +2.5 pts Q1 2015 sales were up 1% excluding Eurosport International deconsolidation impact Q1 2015 group adve
Slide 9: Financial results of Bouygues Telecom
Financial results of Bouygues Telecom €m Q1 2014 restated Q1 2015 Change Sales 1,085 1,063 -2%a Sales from network 966 932 -4% EBITDA 118 118 0% EBITDA/sales from network 12.2% 12.7% +0.5 pts Current operating profit/(loss) (64) (62) +€2m Operating profit/(loss) 136b (84)c -€220m Q1 2015 EBITDA st
Slide 10: Highlights and key figures; business areas; financial statements; outlook; annex
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 10
Slide 11: Construction businesses
Construction businesses CONSTRUCTION, Bouygues Immobilier cl a "1
Slide 12: Continued momentum at the construction businesses
Continued momentum at the construction businesses Order books (€m) Order book at a very high level: €30.1bn at end-March 2015, Colas Bouygues Immobilier up 5% year-on-year (stable at constant exchange rates) Bouygues Construction +5% €28.8bn €30.1bn Strong international presence €27.0bn €27.8bn
Slide 13: A challenging French environment
A challenging French environment French roads activity order book at Colas (€m)a As expected, the French environment remained tough… -13% Continued decrease of Colas’ French roads activity 2,689 Slowdown in building and civil works 2,418 2,092 End-March End-March End-March 2013 2014 2015 …an
Slide 14: First signs of potential improvement in France starting 2016
First signs of potential improvement in France starting 2016 Pinel “buy-to-let” law is helping private investors gradually regain confidence in residential investment Private investors represented 51% of Bouygues Immobilier’s residential reservations in Q1 2015 vs. 38% in Q1 2014 Progressive i
Slide 15: International dynamic
International dynamic Construction businesses continued to show strong international momentum Bouygues Construction international order book: €11.2bn at end-March 2015, up 27% year-on-year Including the NorthConnex project in Australia for €900m Colas international order book: €4.6bn at end-
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Slide 17: Bouygues Telecom's 4G success
Bouygues Telecom’s 4G success Plan net adds excluding MtoM (‘000) 146 Good Q1 2015 mobile commercial performance 73 Total customer base: 152,000 net adds 22 25 Plan customers: 197,000 net adds and 146,000 excluding -4 MtoM Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 4G customers: 31% of the total base and
Slide 18: Increase in data usage thanks to 4G and new services
Increase in data usage thanks to 4G and new services Customers keep developing their data usage… Customer data usage in GB, by type of Sensation “bonus” serviceb Total subscriber basea consumes more than 1GB per month No bonus on average x2 Gameloft 4G users consume 2.2GB per month on average
Slide 19: Continued growth in fixed broadband
Continued growth in fixed broadband No. 1 in terms of net growtha in the fixed broadband market for 6 quarters in a row Fixed broadband customers net growth (‘000)b 102 104 110 96 100 72 40 45 10 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Fixed broadband subscriber base of 2.5 million
Slide 20: Strong position in very-high-speed broadband
Strong position in very-high-speed broadband A 12% market sharea in the very-high-speed market Bouygues Telecom’s market share at end-2014, vs. 9% in the total fixed market in the fixed market at end-2014a 392,000 very-high-speed customers at end-March 2015 Total Very-high-speed Secured access
Slide 21: Transformation plan roll-out
Transformation plan roll-out Close to 90% of customers have already been migrated to November 2014 offers at end-March 2015 Migration of the customer base to be completed by Q2 2015 Promoting the new positioning based on the quality of customer experience New visual identity symbolizing Bouy
Slide 22: Highlights and key figures; business areas; financial statements; outlook; annex
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 22
Slide 23: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) Q1 2014 € million Q1 2015 Change restated Sales 6,841 6,731 -2% Current operating income (178) (194) -€16m Other operating income and expenses 196a (22)b -€218m Operating income 18 (216) -€234m Cost of net debt (81) (72) +€9m o/w financial income 10 10 €
Slide 24: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) Q1 2014 € million Q1 2015 Change restated Income tax expense 25 118 +€93m Associates and joint ventures 302 9 -€293m o/w share of profits 49 9 -€40m o/w net capital gain on Cofiroute disposal 253a - -€253m Net profit/(loss) from continuing operations 261
Slide 25: Group financial position
Group financial position Restated end- End-March Restated end- € million Change Dec. 2014 2015 March 2014 Shareholders' equity 9,455 9,308 -€147m 8,889 Net debt 3,216 4,264 +€1,048m 4,725 Net gearing 34% 46% +12 pts 53% The change in net debt between end-December 2014 and end-March 2015 mainly ref
Slide 26: Change in net cash position (1/2)
Change in net cash position (1/2) €m Restated net cash at Net cash at 31/12/2014 31/03/2015 (3,216) +10 (4,264) Othera -1,058 Operations Q1 2014 restated (4,435) +771b -1,061 (4,725) (a) Including scope effects and exercise of stock options (b) Impact of reclassification of Eurosport International t
Slide 27: Change in net cash position (2/2)
Change in net cash position (2/2) Breakdown of operations Net capital Change in the operating Net cash flowa expenditure WCRb & other €m +87 -287 -858 -1,058 Q1 2014 restated +252 -279 -1,034 -1,061 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating
Slide 28: Highlights and key figures; business areas; financial statements; outlook; annex
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 28
Slide 29: Outlook for 2015 confirmed
Outlook for 2015 confirmed Resilience of the construction businesses thanks to momentum in the international activity and the ongoing adaptation in France Excluding currency impacts, current operating margin at the level of 2014 despite a decline in sales Improvement in TF1’s current operating
Slide 30: Annex
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK ANNEX 30
Slide 31: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction Order intake (€m)a Order book (€m) +21% Long-term order book (beyond Y+5) 3,689 3,623 For execution from Y+2 to Y+5 For execution in Y+1 9% 2,984 For execution in Y yoy 2,800 2,813 2,787 1,243 -17% €19.8bn €18.2bn €18.1bn 2,451 2,465 1,497 France 2,644 1,53
Slide 32: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa (€m) Order book (€m) Commercial property yoy evolution 1,077 Residential property -3% 183 2,485 2,390 2,421 366 342 411 675 +12% +49% 542 364 160 X4 373 358 894 2,119 2,048 2,010 40 22 -5% 324 382 +18% 351 317 End-March End-December End-March Q1
Slide 33: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France Q1 2014 € million Q1 2015 Change restated 8,064 7,849 -3% 8,242 7,671 7,158 Sales 2,165 1,979 -9%a o/w France 1,389 1,189 -14% 3,615 3,262 -10% 3,515 3,226 o/w international 776 790 +2% 3,035 Cur
Slide 34: Bouygues Telecom keeps its leadership in mobile network quality
ANNEX Bouygues Telecom keeps its leadership in mobile network quality Bouygues Telecom #1 in 4GMark speed tests for 7 months in a row 3G/4G downstream speeds as measured by 4GMark in Q1 2015 (Mb/s) 24.5 34.2 15.1 11.5 4GMark also rated Bouygues Telecom as providing “the best user experience” on
Slide 35: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Mobile customer base 11,271 11,286 11,094 11,143 11,143 11,064 11,024 11,048 11,121 11,121 11,273 '000 o/w plana 9,618 9,802 9,760 9,910 9,910 9,940 9,984 10,031 10,130 10
Slide 36: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Note that the method of calculation has been changed in Q1 2015 and that 2013/2014 numbers have been restated accordingly: - The ideo discount is now included (mobile ARPU impact only) - The calculation uses the average installed base instead of using t
Slide 37: Sales by business area
ANNEX Sales by business area Q1 2014 Change like-for-like € million Q1 2015 Change and at constant restated exchange rates Bouygues Construction 2,596 2,779 +7% -2% Bouygues Immobilier 536 513 -4% -4% Colas 2,165 1,979 -9% -12% Sub-total of the construction businessesa 5,208 5,203 0% -6% TF1 556 475
Slide 38: Contribution of business areas to Group EBITDA
ANNEX Contribution of business areas to Group EBITDA € million Q1 2014 restated Q1 2015 Change Bouygues Construction 76 72 -€4m Bouygues Immobilier 22 15 -€7m Colas (176) (173) +€3m TF1 26 26 €0m Bouygues Telecom 118 118 €0m Holding company and other (12) (14) -€2m TOTAL 54 44 -€10m EBITDA = current
Slide 39: Contribution of business areas to Group current operating profit
ANNEX Contribution of business areas to Group current operating profit € million Q1 2014 restated Q1 2015 Change Bouygues Construction 81 71 -€10m Bouygues Immobilier 28 27 -€1m Colas (235) (244) -€9m Sub-total of the construction businesses (126) (146) -€20m TF1 19 28 +€9m Bouygues Telecom (64) (62
Slide 40: Contribution of business areas to Group operating profit
ANNEX Contribution of business areas to Group operating profit € million Q1 2014 restated Q1 2015 Change Bouygues Construction 81 71 -€10m Bouygues Immobilier 28 27 -€1m Colas (235) (244) -€9m Sub-total of the construction businesses (126) (146) -€20m TF1 19 28 +€9m Bouygues Telecom 136a (84)b -€220
Slide 41: Contribution of business areas to Group net profit
ANNEX Contribution of business areas to Group net profit € million - attributable to the Group Q1 2014 restated Q1 2015 Change Bouygues Construction 58 51 -€7m Bouygues Immobilier 18 15 -€3m Colas 225a (164) -€389m Sub-total of the construction businesses 301 (98) -€399m TF1 5 14 +€9m Bouygues Telec
Slide 42: Contribution of business areas to Group net cash flow
ANNEX Contribution of business areas to Group net cash flow € million Q1 2014 restated Q1 2015 Change Bouygues Construction 91 104 +€13m Bouygues Immobilier 16 17 +€1m Colas (90) (132) -€42m Sub-total of the construction businesses 17 (11) -€28m TF1 32 5 -€27m Bouygues Telecom 260 116 -€144m Holding
Slide 43: Contribution of business areas to Group net capital expenditure
ANNEX Contribution of business areas to Group net capital expenditure Q1 2014 € million Q1 2015 Change restated Bouygues Construction 40 32 -€8m Bouygues Immobilier 4 2 -€2m Colas 46 38 -€8m Sub-total of the construction businesses 90 72 -€18m TF1 9 5 -€4m Bouygues Telecom 180 207 +€27m Holding comp
Slide 44: Contribution of business areas to Group free cash flow
ANNEX Contribution of business areas to Group free cash flow € million Q1 2014 restated Q1 2015 Change Bouygues Construction 51 72 +€21m Bouygues Immobilier 12 15 +€3m Colas (136) (170) -€34m Sub-total of the construction businesses (73) (83) -€10m TF1 23 0 -€23m Bouygues Telecom 80 (91) -€171m Hold
Slide 45: Net cash by business area
ANNEX Net cash by business area End-March 2014 End-March € million Change restated 2015 Bouygues Construction 2,787 2,733 -€54m Bouygues Immobilier 157 94 -€63m Colas 184a 20 -€164m TF1 254 572b +€318m Bouygues Telecom (894) (902) -€8m Holding company and other (7,213) (6,781) +€432m TOTAL (4,725) (
Slide 46: Financing
ANNEX Financing (€ million) Available cash: €8.7bn 10,000 9,000 8,000 Debt maturity schedule at end-March 2015 7,000 Undrawn 6,000 MLT facilities 5,000 €5.7bn 4,000 3,000 2,000 Cash 1,000 €3.0bn 0 46
Slide 47: Impacts of the exceptional items on the net result attr. to the Group
ANNEX Impacts of the exceptional items on the net result attr. to the Group Q1 2014 € million Q1 2015 Change restated Net profit/(loss) attributable to the Group 238 (157) -€395m Non-current operating income / expenses related to Bouygues Telecom, net of taxes (109) 12 +€121m Net capital gain on the
Slide 48: Reminder: impact of the application of IFRIC 21 on 2014 interim results
ANNEX Reminder: impact of the application of IFRIC 21 on 2014 interim results Q1 2014 Q2 2014 Q3 2014 Q4 2014 € million Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Bouygues Construction 91 (10) 81 89 3 92 64 3 67 91 4 95 Bouygues Immobilier 31
Slide 49: Calendar
ANNEX Calendar 27 August 2015 First-half 2015 sales and earnings 7.30am 27 August 2015 First-half 2015 results presentation 11.00am 13 November 2015 Nine-month 2015 sales and earnings 7.30am All times are Central European Times 49
Slide 50: Building the future is our greatest adventure
50 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE