Bouygues Sa · EURONEXT:EN
Bouygues Sa — 9M 2014 Earnings Presentation
56 slides from Bouygues Sa's earnings presentation, Nov 14, 2014
Slide 1: Nine-month 2014 results presentation
Nine-month 2014 results presentation Paris – 32 Hoche 14 November 2014 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
Slide 2: Forward-looking information and statements
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: change of accounting methods in 2014
ANNEX Reminder: change of accounting methods in 2014 As announced The figures published in 2013 have been restated for IFRS 11 TF1's remaining 49% interest in Eurosport International is consolidated by the equity method from 1 June 2014, following the sale of a controlling stake to Discovery Com
Slide 4: Group key figures, business segments, financial statements
GROUP KEY FIGURES BUSINESS SEGMENTS FINANCIAL STATEMENTS CONCLUSION ANNEXES 4
Slide 5: Group key figures (1/2)
Group key figures (1/2) € million 9M 2013 restated 9M 2014 Change Sales 24,088 24,223 +1%a o/w France 16,115 15,664 -3% o/w international 7,973 8,559 +7% Current operating profit 878 554 -€324m Operating profit 878 949b +€71m Net profit attributable to the Group 548 728c +€180m (a) +1% like-for-like
Slide 6: Group key figures (2/2)
Group key figures (2/2) € million 9M 2013 restated 9M 2014 Change Current operating profit 878 554 -€324m of which construction businesses 635 541 -€94m of which TF1 104 58 -€46m of which Bouygues Telecom 160 (26) -€186m Current operating margin 3.6% 2.3% -1.3 pts Current operating profit mainly r
Slide 7: Financial results of the construction businesses
Financial results of the construction businesses €m 9M 2013 restated 9M 2014 Change Sales 18,934 19,347 +2%a o/w France 11,282 10,976 -3% o/w international 7,652 8,371 +9% Current operating profit 635 541 -€94m o/w Bouygues Construction 311 244 -€67m o/w Bouygues Immobilier 123 124 +€1m o/w Colas 20
Slide 8: Financial results of Bouygues Telecom
Financial results of Bouygues Telecom €m 9M 2013 9M 2014 Change Sales 3,453 3,294 -5%a Sales from network 3,169 2,915 -8% EBITDA 727 538 -€189m EBITDA/network sales 22.9% 18.5% -4.4 pts Current operating profit/(loss) 160 (26) -€186m Operating profit 160 60b -€100m EBITDA minus Capex 166c 44 -€122m
Slide 9: Group key figures, business segments, financial statements
GROUP KEY FIGURES BUSINESS SEGMENTS FINANCIAL STATEMENTS CONCLUSION ANNEXES 9
Slide 10: Construction businesses
Construction businesses Bouygues Immobilier 5 <>
Slide 11: Solid commercial performance of the construction businesses
Solid commercial performance of the construction businesses High level order book: €27.4bn at end-September 2014, stable year-on-year Order books (€m) Colas Bouygues Immobilier Bouygues Construction €26.9bn €27.4bn €27.4bn €24.6n 7,006 7,094 7,671 6,669 2,879 2,615 2,144 2,630 17,051 17,711 17,626
Slide 12: Update on trading environment
Update on trading environment As expected, the French market got tougher in the 9-month 2014 period Significant slowdown in the French roads activity 9-month 2014 sales down 12% vs 9-month 2013 Order book at end-September 2014 down 11% vs end-September 2013 Scarcity of very large contracts
Slide 13: Strong momentum in international business
Strong momentum in international business Increased international presence 51% of the combined order book at Bouygues Construction and Colas (vs 49% at end-September 2013): €13bn at end-September 2014, up 6% year-on-year At €8.5bn, Bouygues Construction international order book has yet to incl
Slide 14: East West Link contract in Australia
East West Link contract in Australia Project PPP contract to finance, design and construct a new 6.6-kilometre freeway link in northern Melbourne and to operate it for 25 years Customer: the Linking Melbourne Authority Total value: about €4.6bn As part of a consortium, Bouygues Constructio
Slide 15: Strong momentum in international business
Strong momentum in international business Sales generated by Bouygues Construction and Colas in 9M 2014 (and change vs 9M 2013) Europe (excl. France): €3.5bn, +15% International sales France: +13% at constant exchange represented 48% of Americas: €9.1bn, -6% rates Bouygues Construction €2.2bn, +4% +
Slide 16: Diverse mix of offerings and technical expertise
Diverse mix of offerings and technical expertise A diverse mix of offerings and technical expertise provides differentiation leading to outperformance in the French market Strong momentum in the railways activity at Colas Solid French order intake at Bouygues Construction Ex: contract for the
Slide 17: SMA's future head office in Paris
SMA's future head office in Paris SMA, a provider of insurance services, has acquired its future head office from Bouygues Immobilier 35,000-m² turnkey office building, located in the 15th arrondissement of Paris, on the site of the former Hotel Pullman Porte de Sèvres It will benefit from str
Slide 18: Flexible cost structure and ongoing adaptation plans
Flexible cost structure and ongoing adaptation plans Visibility in the order book at Bouygues Construction allowing time to adapt Highly variable cost structure in the construction businesses A cost structure driven by projects Flexibility in personnel costs resulting from subcontracting, te
Slide 19: Bouygues Telecom
Bouygues Telecom
Slide 20: Attracting Mobile customers to value-added plans
Attracting Mobile customers to value-added plans Active 4Gb subscribers ('000) and share % of retail customers subscribing to a value-added plana of the total mobile subscriber base 2,500 77% 1,800 72% 73% 1,400 68% 64% 1,000 22% 59% 61% 16% 13% 9% End Q1 13 End Q2 13 End Q3 13 End Q4 13 End Q1 14 E
Slide 21: 4G traction in the business segment
4G traction in the business segment Bouygues Telecom business mobile subscriber base Launch of 4G Business mobile subscriber base up 10% since the launch +10% of 4G Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 New major business contract signed with La Poste Postmen will be equipped with con
Slide 22: Increase in data usage thanks to 4G
Increase in data usage thanks to 4G Average data use of a Bouygues Telecom customer 3 Share of 4G handset in the retail plan salesa GB/customer Launch of 4G All customers 74% 64% 67% 2 Active 4G customers 61% 33% 1 0 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Average d
Slide 23: Continued momentum in the fixed activity
Continued momentum in the fixed activity Net growth of the fixed broadband business (‘000)a Share of Bouygues Telecom fixed broadband customers on directly-owned network 100 102 104 72 40 45 55% 10 50% 45% Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 June 2014 September 2014 End 2014 (e) Confirmed su
Slide 24: Bbox Miami: bringing TV and internet content together
Bbox Miami: bringing TV and internet content together Launch of Bbox Miami Commercial launch: beginning 2015 On-going Friendly User Test (FUT) with 300 customers Bouygues Telecom maintains full control over the user interface designed by its partner iFeelSmart company iFeelSmart interface fo
Slide 25: Accelerating transformation while reasserting positioning (1/2)
Accelerating transformation while reasserting positioning (1/2) A positioning focused on customer experience The objective : choose Bouygues Telecom for the best offer and stay for the best experience A set of new simplified offers and a “golden rule” that existing customers will always benefi
Slide 26: Accelerating transformation while reasserting positioning (2/2)
Accelerating transformation while reasserting positioning (2/2) Executing the plan to generate savings of €300m by 2016 vs. 2013, around half of which will occur in 2015 Simplification of organisation and processes On-going redundancy plan of 1,404 jobs 210 departures at end-September 2014
Slide 27: Group key figures, business segments, financial statements
GROUP KEY FIGURES BUSINESS SEGMENTS FINANCIAL STATEMENTS CONCLUSION ANNEXES 27
Slide 28: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) 9M 2013 € million 9M 2014 Change restated Sales 24,088 24,223 +1% Current operating profit 878 554 -€324m Other operating income and expenses 0 395a +€395m Operating profit 878 949 +€71m Cost of net debt (222) (238) -€16m o/w financial income 40 40 = o/w
Slide 29: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) 9M 2013 € million 9M 2014 Change restated Income tax expense (242) (185) +€57m Investments in joint ventures and associates 212 407 +€195m o/w share of profits 212 154 -€58m o/w net capital gain on Cofiroute disposal - 253a +€253m Net profit 610 949 +€33
Slide 30: Change in net cash position in Q3 2014 and 9M 2014 (1/2)
Change in net cash position in Q3 2014 and 9M 2014 (1/2) Net cash at €m Net cash at Net cash at 31/12/2013 30/06/2014 30/09/2014 (4,435) (5,174) (4,989) Acquisitions/ Dividends disposalsa paid Operation -11 Exceptional Acquisitions/ disposalsb Operation Otherd -198 Otherc disposalsa +1 -1,600 +10 -7
Slide 31: Change in net cash position in Q3 2014 (2/2)
Change in net cash position in Q3 2014 (2/2) Breakdown of operations Net capital expenditure €m Net cash flowa Change in operating WCRb -323 and other -22 +608 +263 Q3 2013 restated +773 -268c -278 +227c (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR rel
Slide 32: Group key figures, business segments, financial statements
GROUP KEY FIGURES BUSINESS SEGMENTS FINANCIAL STATEMENTS CONCLUSION ANNEXES 32
Slide 33: Conclusion
Conclusion Looking ahead, the Bouygues group continues to demonstrate its responsiveness The construction businesses can rely on international momentum, differentiated knowhow and strong adaptation capabilities to cope with the challenging French environment The strategy of Bouygues Telecom is s
Slide 34: Group key figures, business segments, financial statements
GROUP KEY FIGURES BUSINESS SEGMENTS FINANCIAL STATEMENTS CONCLUSION ANNEXES 34
Slide 35: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction International France Order book (€m) Order intake(a) Long-term order book (beyond Y+5) For execution in Y+1 8,980 8,611 -7% For execution from Y+2 to Y+5 For execution in Y 8,313 8,048 €m = 3,284 17,051 17,711 17,626 3,286 4,752 3,972 -16% 15,262 2,654 2,70
Slide 36: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservations(a) Order book Commercial property Residential property 2,879 -18% 1,398 1,412 +9% 2,630 2,615 1,300 YoY YoY €m 2,186 170 498 2,144 358 210 420 528 75 366 2,111 2,460 2,381 1,040 1,090 2,087 1,778 992 9M 2012 9M 2013 9M 2014 End-Sept End-Sept End-
Slide 37: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France 8,242 +8% 8,064 9M 2013 7,531 7,570 7,671 € million 9M 2014 Change 7,094 7,088 restated +24% Sales 9,511 9,184 -3%a 3,537 4,449 3,629 4,727 o/w France 5,509 4,980 -10% 3,571 4,445 3,811 o/w inter
Slide 38: Key figures at TF1
ANNEX Key figures at TF1 In % Group audience share(a) TF1 9M 2014 22.9 3.2 1.8 0.9 28.8 TMC NT1 HD1 9M 2013 22.7 3.5 2.1 0.5 28.8 (a) Individuals aged 4 and over – Source: Médiamétrie € million 9M 2013 restated 9M 2014 Change Sales 1,739 1,613 -7%b o/w group advertising 1,158 1,123 -3% Current opera
Slide 39: Key figures at Bouygues Telecom
ANNEX Key figures at Bouygues Telecom Change vs Change vs Change vs Change vs €m Q1 2014 Q2 2014 Q3 2014 9m 2014 Q1 2013 Q2 2013 Q3 2013 9m 2013 Sales 1,085 -5% 1,092 -4% 1,117 -4% 3,294 -5% Sales from network 966 -9% 974 -7% 975 -8% 2,915 -8% EBITDA 163 -€49m 169 -€88m 206 -€52m 538 -€189m EBITDA/S
Slide 40: Fixed and mobile business and financial performance
ANNEX Fixed and mobile business and financial performance End-Dec End-March End-June End-Sept '000 2013 2014 2014 2014 Mobile customer base 11,143 11,064 11,024 11,048 o/w plan subscribersa 9,910 9,940 9,984 10,031 o/w prepaid customers 1,233 1,124 1,040 1,017 Fixed broadband customer baseb 2,013 2,
Slide 41: Key indicators at Bouygues Telecom
ANNEX Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base Q2 2014 Q3 2014 Q2 2014 Q3 2014 Q2 2014 Q3 2014 Subscribers SIM cards ('000) 9,984 10,031 1,040 1,017 11,024 11,048 SIM cards (% mix) 90.6% 90.8% 9.4% 9.2% Fixed broadband subscriber basea ('000) 2,215 2,319 Unit data – mobi
Slide 42: Sales by business segment
ANNEX Sales by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 7,992 8,492 +6% Bouygues Immobilier 1,710 1,942 +14% Colas 9,511 9,184 -3% Sub-total of the construction businesses(a) 18,934 19,347 +2% TF1 1,739 1,613 -7% Bouygues Telecom 3,453 3,294 -5% Holding compan
Slide 43: Contribution to EBITDA by business segment
ANNEX Contribution to EBITDA by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 398 353 -€45m Bouygues Immobilier 131 113 -€18m Colas 469 446 -€23m TF1 145 58 -€87m Bouygues Telecom 727 538 -€189m Holding company and other (21) (20) +€1m TOTAL 1,849 1,488 -€361m EBIT
Slide 44: Contribution to current operating profit by business segment
ANNEX Contribution to current operating profit by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 311 244 -€67m Bouygues Immobilier 123 124 +€1m Colas 201 173 -€28m Sub-total of the construction businesses 635 541 -€94m TF1 104 58 -€46m Bouygues Telecom 160 (26) -€18
Slide 45: Contribution to operating profit by business segment
ANNEX Contribution to operating profit by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 311 244 -€67m Bouygues Immobilier 123 124 +€1m Colas 201 173 -€28m Sub-total of the construction businesses 635 541 -€94m TF1 104 387a +€283m Bouygues Telecom 160 60b -€100m Hol
Slide 46: Contribution to net profit attributable to the Group by business segment
ANNEX Contribution to net profit attributable to the Group by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 204 184 -€20m Bouygues Immobilier 70 74 +€4m Colas 181 497a +€316m Sub-total of the construction businesses 455 755 +€300m TF1 27 149b +€122m Bouygues Teleco
Slide 47: Condensed consolidated balance sheet
ANNEX Condensed consolidated balance sheet End-Dec End-Sept. End-Sept. € million Change 2013 restated 2014 2013 restated Non-current assets 17,690 18,421 +€731m 20,123 Current assets 15,374 17,251 +€1,877m 16,422 Held-for-sale assets and operations 1,151a - -€1,151m - TOTAL ASSETS 34,215 35,672 +€1,
Slide 48: Contribution to net cash flow by business segment
ANNEX Contribution to net cash flow by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 357 261 -€96m Bouygues Immobilier 85 67 -€18m Colas 457 401 -€56m Sub-total of the construction businesses 899 729 -€170m TF1 115 49 -€66m Bouygues Telecom 595 821 +€226m Holding c
Slide 49: Contribution to net capital expenditure by business segment
ANNEX Contribution to net capital expenditure by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 96 139 +€43m Bouygues Immobilier 7 9 +€2m Colas 165 249 +€84m TF1 30 23 -€7m Bouygues Telecom 561a 494 -€67m Holding company and other 1a 1 = Total excluding frequencies
Slide 50: Contribution to free cash flow by business segment
ANNEX Contribution to free cash flow by business segment 9M 2013 € million 9M 2014 Change restated Bouygues Construction 261 122 -€139m Bouygues Immobilier 78 58 -€20m Colas 292 152 -€140m Sub-total of the construction businesses 631 332 -€299m TF1 85 26 -€59m Bouygues Telecom 34a 327 +€293m Holding
Slide 51: Net cash by business segment
Net cash by business segment End-Sept. End-Dec End-Sept. € million 2013 Change 2013 2014 restated restated Bouygues Construction 2,693 2,231 -€462m 3,006 Bouygues Immobilier 155 93 -€62m 271 Colas (839) (143)a +€696m 31 TF1 189 436b +€247m 189c Bouygues Telecom (745) (890) -€145m (783) Holding compa
Slide 52: Financing
ANNEX Financing Available cash: €8.5 billion 10,000 9,000 Debt maturity schedule at end-September 2014 8,000 7,000 Undrawn MLT credit 6,000 facilities €5.5bn 5,000 €0.8bn bond reimbursed on 4,000 29 October 2014 3,000 2,000 Cash 1,000 €3.0bn 0 52
Slide 53: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group €m 9M 2013 restated 9M 2014 Change Net profit attributable to the Group 548 728 +€180m Non-current operating income of €81m related to Bouygues Telecom, net of taxes (45) -€45m Net capital gain on the sale by Colas of its sta
Slide 54: Impacts of the sale of the stake in Cofiroute on the income statement
ANNEX Impacts of the sale of the stake in Cofiroute on the income statement Colas Bouygues €m Colas income income 9M 2014 contributiona statement statement Net capital gain on disposal 385 385 385 - Goodwill at holding company level 0 0 -132 Net capital gain on disposal after goodwill 385 385 253 -
Slide 55: Impacts of the sale of the 31% stake in Eurosport International
ANNEX Impacts of the sale of the 31% stake in Eurosport International on the income statement TF1 Bouygues €m TF1 income income 9M 2014 contributiona statement statement Net capital gain on disposal and remeasurementb before tax 329 329 329 - Income tax expense -30 -30 -30 Net capital gain on dispos
Slide 56: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 56