Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2014 Earnings Presentation
70 slides from Bouygues Sa's earnings presentation, Aug 28, 2014
Slide 1: First half 2014 results presentation
First-half First half 2014 results presentation esu ts p ese tat o Paris – 32 Hoche 28 August 2014 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
Slide 2: Forward-looking statements disclaimer
This ppresentation contains forward-lookingg information and statements about the Bouygues yg ggroupp and its businesses. Forward-lookingg statements may be identified by the use of words such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar stat
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 Following the sale of a controlling stake to Discovery Communications on 30 May 2014, TF1's remaining 49% interest in Eurosport International is consolidated by the equi
Slide 4: Highlights and key figures, business areas, Alstom, financial statements, outlook
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK 4
Slide 5: Highlights
Highlights In a challenging economic and competitive environment in H1 2014 in France, Bouygues continues to demonstrate Its competitiveness and its innovation capacity to the benefit of customers Robust commercial performance of the construction businesses Good audience ratings at TF1 Succe
Slide 6: Group key figures
Group key figures €m H1 2013 restated H1 2014 Change Sales 15,094 15,182 +1%1 Current operating profit 347 134 -€213m €213m Operating profit 347 523(2) +€176m Net profit attributable to the Group 188 410(3) +€222m (1) Up 1% like-for-like and at constant exchange rates (2) Including non-current opera
Slide 7: Group free cash flow
Group free cash flow €m € H1 2013 restated t t d H1 2014 Change Ch Cash flow 1,002 1,044 +€42m - Cost of net debt (157) (163) -€6m €6m - Income tax expense (98) (59) +€39m - Net capital expenditure (592)2 (592) = Free cash flow1 155(2) 230 +€75m (1) Before change in WCR (2) Excluding capitalised int
Slide 8: Group financial position
Group financial position End-June End-Dec 2013 End-June €m Change 2013 restated 2014 restated Shareholders' equity 8,669 8,952 +€283m 9,603 Net debt 4,435 5,174 +€739m 5,757 Net gearing 51% 58% +7 pts 60% Change in net debt between end-December 2013 and end-June 2014 reflects The usual seasonal
Slide 9: Agenda: business areas
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK 9
Slide 10: Construction businesses
Construction businesses Bouygues Inmobilier B <COLas>> 10
Slide 11: Robust commercial performance of the construction businesses
Robust commercial performance of the construction businesses Order books (€m) Order book: €28.0bn at end-June 2014, up 3% year-on-year Bouygues Construction Bouygues Immobilier C l Colas +3% €28.6bn €27.3bn €28.0bn Increased international presence 7,856 8 242 8,242 7 570 7,570 50% of the order
Slide 12: A tougher environment in France
A tougher environment in France The French market was tougher in H1 2014 Slowdown in public-sector orders since the municipal elections, particularly in roads Scarcity of very large contracts No recovery in the property market However B Bouygues Construction's C t ti ' order d bbookk pro
Slide 13: Dynamic international activity
Dynamic international activity Operations in more than 100 countries Main international orders taken in H1 2014 Sales S l generated t d by b BBouygues C Construction t ti andd (rounded up/down) Colas in H1 2014 (and change vs H1 2013) Switzerland Facilityy management g services Europe (excl. France)
Slide 14: International momentum: the example of Canada (1/2)
International momentum: the example of Canada (1/2) Bright economic prospects in the short- and medium terms One of the countries in the world the least affected by the crisis Civil engineering infrastructure needs in Canada estimated at more than CAD170bn1 Operations by Colas since 1962 and
Slide 15: International momentum: the example of Canada (2/2)
International momentum: the example of Canada (2/2) Examples p of completed p or ongoing g g pprojects j Surrey hospital Motorway and rail Sports facilities for Iqaluit International (British Columbia) contracts Pan American Games Airport (Arctic North) 30-year PPP to finance, (Quebec and Alberta)
Slide 16: Business activity at Bouygues Construction
Business activity at Bouygues Construction Good level of order intake Order book (€m) €5.2bn in H1 2014, up 2% year-on-year For execution in Y For execution in Y+1 Includes the 'City of Music' contract on Seguin island for around For execution from Y+2 to Y+5 €200 in €200m i Q2 2014 Long-term
Slide 17: Business activity at Bouygues Immobilier
Business activity at Bouygues Immobilier Residential property reservations reflect a market in crisis Reservations (€m)1 Increased wait-and-see attitude since Q2 2014 and market contraction expected in 2014 Commercial property Residential property C Commercial i l efforts ff t stepped t d up
Slide 18: Business activity at Colas
Business activity at Colas Order book at a high level of €8.2bn, up 9% year-on-year Order book (€m) Decline in order intake in France following the slowdown in Mainland France International and French overseas territories local authority spending after the municipal elections Strong momentum S
Slide 19: Financial results of the construction businesses
Financial results of the construction businesses €m H1 2013 restated H1 2014 Change Sales 11,632 11,854 +2%1 o/w France 7,209 7,040 -2% o/w international 4,423 , 4,814 +9% Current operating profit/(loss) 201 137 -€64m o/w Bouygues Construction 204 180 -€24m o/w Bouygues Immobilier 84 71 -€13m o/w Co
Slide 20: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction International Order intake (€m)1 Order book (€m) France For execution in Y 6,893 For execution in Y+1 6,105 6,134 For execution from Y+2 to Y+5 +2% 2,559 5,052 5,174 Long-term order book (beyond Y+5) 2,390 17,832 17,537 3,225 , -5% 5% 17,147 , 16,877 2,366
Slide 21: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservations (€m)1 Order book (€m) Commercial property 1,243 1,314 2,815 Residential property 2,610 -21% 68 324 1,045 2,210 943 955 618 427 yoy -23% 99 317 203 737 271 62 -69% 69% 1,175 844 990 2,197 2,183 1,939 728 752 675 -10% H1 2009 H1 2010 H1 2011 H1 201
Slide 22: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) International and French overseas territories Mainland France 8,242 +9% 8,064 H1 2013 7,531 7,570 €m H1 2014 Change 7,094 7,088 restated 3,615 3,515 -11% Sales 5,456 5,294 -3%1 3,994 3,941 3,277 3,377 3,155 -7% 3,523 o/w France o/w international 2,079 2,139
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Slide 24: H1 highlights at TF1
H1 highlights at TF1 Group audience share1 (%) Stable audience ratings at the TF1 group in H1 2014 28 4 28.4 29 0 29.0 28 9 28.9 2.1 0.5 0.9 2.1 1.9 TF1 channel audience ratings progressed in Q2 2014 (up 0.8 pts 3.6 3.5 3.2 vs Q2 2013) spurred by the 2014 FIFA World Cup HD1 16 9m viewers for t
Slide 25: Financial results at TF1
Financial results at TF1 Q1 Change vs Q2 Change vs H1 Change vs €m 2014(1) 2013 2014(1) 2013 2014(1) 2013 Sales 556 -1% 619 -3% 1,175 -2%2 o/w group advertising 369 = 430 -5% 799 -2% Current operating p gp profit 23 +€39m 27 -€60m 50 -€21m Current operating margin 4.1% +6.9 pts 4.4% -9.2 pts 4.3% -1
Slide 26: Bouygues Telecom
Bowaues @ a)
Slide 27: Bouygues Telecom's strategy
Bouygues Telecom's strategy Given Gi the th prospectt off exponential ti l growth th in i digital di it l services, i Bouygues B Telecom T l is i implementing an aggressive strategy around three main priorities Creating value by developing mobile data use Pursuing growth in the fixed broadband
Slide 28: Creating value by developing mobile data use (1/2)
Creating value by developing mobile data use (1/2) A quality mobile network requires a large quantity of spectrum In 4G, the speeds available to customers are directly correlated to an operator's quantity of frequencies In the long term term, all frequency bands will be used for 4G (technologi
Slide 29: Breakdown of spectrum in France
ANNEX Breakdown of spectrum in France Quantity of frequencies allocated to the various operators (MHz duplex)1 As at 15 July 2014 2 30 11% 24 5 20 79 29% 20 15 5 24 10 10 20 20 84 31% 10 10 23(2) 10 10 15 15 73 27% 800 MHz 900 MHz 1 800 MHz 2 100 MHz 2 600 MHz TOTAL % of total Bouygues Telecom Orang
Slide 30: Creating value by developing mobile data use (2/2)
Creating value by developing mobile data use (2/2) A modern, high high-quality quality mobile network As early as 2011, Bouygues Telecom initiated a complete modernisation of its network... 2011 2013 2014 Investment in single RAN1 Opening of the widest 4G network First operator to launch 4G+ tec
Slide 31: A modern, high-quality mobile network
ANNEX A modern, high-quality mobile network According A di tot Arcep's A ' survey off the th quality lit off mobile bil services i in i mainland i l d France F in i June J 2014 2014, Bouygues Telecom is No 2 all criteria included No. incl ded No 1 for ssuccessful No. ccessf l 55-min min web brow
Slide 32: The positive impact of 4G for Bouygues Telecom
ANNEX The positive impact of 4G for Bouygues Telecom The average data use of a Bouygues Telecom customer GB/customer Launch of 4G 2 All customers Active 4G customers The average data use of a B Bouygues Tl Telecom t customer: 1 x2 since the launch of 4G 0 janv.-12 Jan-12 juil.-12 Jul-12 janv.-13 J
Slide 33: From 4G+ to Ultra High Speed Mobile
ANNEX From 4G+ to Ultra High Speed Mobile Bouygues Telecom already offers 4G+ and is preparing for Ultra High Speed Mobile which competitors will find difficult to match From 4G+... …to Ultra High Speed Mobile A Aggregation ti off 2 frequency f b bands: d eachh new Aggregation of 3 frequency
Slide 34: Pursuing growth in fixed broadband (1/3)
Pursuing growth in fixed broadband (1/3) The network directly owned by Bouygues Telecom is already accessible to 12m households in broadband and to 1.1m households in FTTH1 Enabling Bouygues Telecom to offer its customers market-beating prices (€15 99 €19.99 (€15.99, €19 99 and €25.99) €25 99) S
Slide 35: Pursuing growth in fixed broadband (2/3)
Pursuing growth in fixed broadband (2/3) Strategy of offering low prices and technological breakthroughs in fixed broadband since end-2013 N 2013 Nov M h 2014 March J June 2014 Q4 2014 2P broadband offer 3P broadband offer 3P FTTH offer Launch of the new for €15.99/month for €19.99/month for €25.9
Slide 36: The “Miami” TV Box
ANNEX The “Miami” TV Box Partnership with Google and A fast and pertinent access to the large suggestion engine based on eco-system of user preferences Android developers One single box and Connection possible from access to three all Android-compatible technologies devices (DTT, IPTV, OTT) The “Mia
Slide 37: Pursuing growth in fixed broadband (3/3)
Pursuing growth in fixed broadband (3/3) A revolutionary TV box at an affordable price and a reduced cost TV box production cost halved vs the Bbox Sensation… ...benefitting from perpetual app innovations by Android developers at an affordable price... ...and fully in line with the operator'
Slide 38: Accelerating transformation while reasserting the positioning (1/2)
Accelerating transformation while reasserting the positioning (1/2) Helping customers embrace the new uses of digital technology Redesigned stores, more focused on the sale and use of connected objects Enhanced mobile customer relations with advisers based in France Simplification of offers
Slide 39: Accelerating transformation while reasserting the positioning (2/2)
Accelerating transformation while reasserting the positioning (2/2) Adapt the cost structure to the fall in market value Roll-out of a plan to generate savings of €300m by end-2016 vs 2013, around half of which in 2015 These savings are to come from the simplification of offers and processes a
Slide 40: H1 commercial performance, a result of the strategy
H1 commercial performance, a result of the strategy End- End End- End End- End Net growth of the fixed broadband business ((‘000) 000)1 '000 Dec March June 2013 2014 2014 100 102 Mobile customer base 11,143 11,064 11,024 72 40 o/w B&YOU subscribers 1,750 1,876 1,966 45 Fixed subscribers1 2,013 2,113
Slide 41: Financial results of Bouygues Telecom
Financial results of Bouygues Telecom €m H1 2013 H1 2014 Change Sales 2,287 2,177 -5%1 Sales from network 2,113 1,940 -8% EBITDA 469 332 -€137m Current operating profit/(loss) 91 (41) -€132m Operating profit 91 44(2) -€47m EBITDA minus Capex 62(3) (5) -€67m (1) Down 5% like-for-like and at constant
Slide 42: Key figures at Bouygues Telecom
ANNEX Key figures at Bouygues Telecom Change vs Change vs Change vs €m Q1 2014 Q2 2014 H1 2014 Q1 2013 Q2 2013 H1 2013 Sales 1,085 , -5% 1,092 , -4% 2,177 , -5% Sales from network 966 -9% 974 -7% 1,940 -8% EBITDA 163 -€49m 169 -€88m 332 -€137m EBITDA/sales from network 16.9% -3.0 pts 17.4% -7.1 pts
Slide 43: Fixed and mobile business and financial performance
ANNEX Fixed and mobile business and financial performance End End-June June End End-Sept Sept End End-Dec Dec End End-March March End End-June June '000 2013 2013 2013 2014 2014 Mobile customer base 11,286 11,094 11,143 11,064 11,024 o/w plan subscribers1 9,802 9,760 9,910 9,940 9,984 o/w prepaid cu
Slide 44: Key indicators at Bouygues Telecom
ANNEX Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base Q1 2014 Q2 2014 Q1 2014 Q2 2014 Q1 2014 Q2 2014 Subscribers SIM cards ('000) 9,940 9,984 1,124 1,040 11,064 11,024 SIM cards (% mix) 89.8% 90.6% 10.2% 9.4% Fixed broadband subscriber base1 ('000) 2,113 2,215 Unit data – mobi
Slide 45: Agenda: Alstom
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK 45
Slide 46: Alstom
ALSTOM Following the sale of the Power businesses to General Electric, Alstom will be a stronger company A world leader in the growing transport market A portfolio of products at the cutting edge of innovation A strong international dimension A strengthened balance sheet allowing it to dev
Slide 47: Agenda: financial statements
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK 47
Slide 48: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) €m H1 2013 restated H1 2014 Change Sales 15,094 15,182 +1% Current operating profit 347 134 -€213m Operating profit 347 523(1) +€176m Cost of net debt (157) (163) -€6m o/w financial income 22 21 -€1m o/w financial expenses (179) (184) -€5m €5m Other fina
Slide 49: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) €m H1 2013 restated H1 2014 Change Income tax expense (98) (59) +€39m Investments in joint ventures and associates 138 307 +€169m o/w share of profits 138 54 -€84m o/w net capital gain on Cofiroute disposal - 253(1) +€253m Net profit 223 611 +€388m Net p
Slide 50: Sales by business area
ANNEX Sales by business area €m € H1 2013 restated t t d H1 2014 Ch Change Bouygues Construction 5,228 5,558 +6% Bouygues Immobilier 1 143 1,143 1 192 1,192 +4% Colas 5,456 5,294 -3% Sub-total of construction businesses1 11,632 11,854 +2% TF1 1,203 1,175 -2% Bouygues Telecom 2,287 2,177 -5% Holding
Slide 51: Contribution of business areas to Group EBITDA
ANNEX Contribution of business areas to Group EBITDA €m H1 2013 restated H1 2014 Change Bouygues Construction 241 213 -€28m Bouygues Immobilier 88 66 -€22m Colas 58 34 -€24m TF1 90 36 -€54m Bouygues Telecom 469 332 -€137m Holding company and other (17) (15) +€2m TOTAL 929 666 -€263m EBITDA = current
Slide 52: Contribution of business areas to Group current operating profit
ANNEX Contribution of business areas to Group current operating profit €m H1 2013 restated H1 2014 Change Bouygues Construction 204 180 -€24m Bouygues Immobilier 84 71 -€13m Colas (87) (114) -€27m Sub-total of construction businesses 201 137 -€64m TF1 71 50 -€21m Bouygues Telecom 91 (41) -€132m Hold
Slide 53: Contribution of business areas to Group operating profit
ANNEX Contribution of business areas to Group operating profit €m H1 2013 restated H1 2014 Change Bouygues Construction 204 180 -€24m Bouygues Immobilier 84 71 -€13m €13m Colas (87) (114) -€27m Sub total of construction businesses Sub-total 201 137 -€64m €64m TF1 71 373(1) +€302m Bouygues Telecom 91
Slide 54: Contribution of business areas to Group net profit
Contribution of business areas to Group net profit €m Attributable to the Group H1 2013 restated H1 2014 Change Bouygues Construction 131 123 -€8m B Bouygues Immobilier I bili 45 42 -€3m €3 Colas (31) 306(1) +€337m Sub-total of construction businesses 145 471 +€326m TF1 18 141(2) +€123m Bouygues Tel
Slide 55: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec E dD End-June E dJ End-June E dJ €m Change 2013 restated 2014 2013 restated Non-current assets 17,690 18,187 +€497m 20,211 Current assets 15,374 16,808 +€1,434m 15,776 Held-for-sale assets and operations 1,151(1) - -€1,151m - TOTAL ASSETS 34,215 34,995 +€
Slide 56: Change in net cash position in H1 2014 (1/2)
Change in net cash position in H1 2014 (1/2) Net cash at Net cash at 31/12/2013 €m 30/06/2014 (4,435) (5 174) (5,174) Acquisitions/ disposals1 Dividends paid Operation -11 11 Exceptional -198 198 disposals2 Other3 Oth -1,600 +10 +1,060 H1 2013 (4,176) -35 -591 -860 -95(4) (5,757) restated (1) Includ
Slide 57: Change in net cash position in H1 2014 (2/2)
Change in net cash position in H1 2014 (2/2) Breakdown of operation Net cash flow1 Net capital expenditure € €m Change in operating WCR2 -592 +822 and other -1,830 -1,600 H1 2013 restated +747 -592(3) -1,015 -860(3) (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Operating
Slide 58: Contribution of business areas to Group net cash flow
ANNEX Contribution of business areas to Group net cash flow €m H1 2013 restated H1 2014 Change Bouygues Construction 238 177 -€61m Bouygues Immobilier 57 43 -€14m Colas 117 86 -€31m Sub-total of construction businesses 412 306 -€106m TF1 77 33 -€44m Bouygues Telecom 385 599 +€214m Holding company an
Slide 59: Contribution of business areas to Group net capital expenditure
Contribution of business areas to Group net capital expenditure €m € H1 2013 restated H1 2014 C Change Bouygues Construction 55 87 +€32m Bouygues Immobilier 4 6 +€2m Colas 108 145 +€37m Sub-total of construction businesses 167 238 +€71m TF1 17 17 = Bouygues Telecom 407(1) 337 -€70m Holding company a
Slide 60: Contribution of business areas to Group free cash flow
ANNEX Contribution of business areas to Group free cash flow €m H1 2013 restated H1 2014 Change Bouygues Construction 183 90 -€93m Bouygues Immobilier 53 37 -€16m €16m Colas 9 (59) -€68m Sub-total Sub total of construction businesses 245 68 -€177m €177m TF1 60 16 -€44m Bouygues Telecom (22)1 262 +€2
Slide 61: Net cash by business area
Net cash by business area End-June 2013 End-June End-Dec 2013 €m Change restated 2014 restated B Bouygues Construction C t ti 2 844 2,844 2 338 2,338 -€506m €506 3 006 3,006 Bouygues Immobilier 239 26 -€213m 271 C l Colas (1 141) (1,141) (331)1 +€810 +€810m 31 TF1 165 425(2) +€260m 189(3) Bouygues T
Slide 62: Financing
Financing €m A ailable cash: Available cash €8.1bn €8 1bn 10,000 Debt maturity schedule at end-June 2014 9,000 8,000 7,000 Undrawn MLT 6,000 facilities 5,000 €5.3bn 4,000 3,000 , 2,000 Cash €2.8bn 1,000 0 62
Slide 63: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group €m H1 2013 restated H1 2014 Change Net profit attributable to the Group 188 410 +€222m 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 64: 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 H1 2014 contribution1 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 65: 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 B €m TF1 income income H1 2014 contribution1 statement statement N t capital Net it l gain i on disposal di l and d remeasurementt2 before b f taxt 323 323 323 - Income tax expense -29 -29 -29
Slide 66: Agenda: outlook
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK 66
Slide 67: Outlook (1/2)
Outlook (1/2) The Th Group's G ' sales l should h ld be b down d very slightly li htl in i 2014 (between -1% and -2% vs 2013) O tl k ffor th Outlook the construction t ti b businesses i The slowdown in public-sector orders in France remains a point to watch However, the construction business
Slide 68: Outlook (2/2)
Outlook (2/2) Outlook for TF1 In a low-visibility context, TF1 is continuing to transform its business model Two exceptional events in 2014: the FIFA World Cup and the sale of a controlling interest in Eurosport International Outlook for Bouygues Telecom Bouygues Telecom confirms its targe
Slide 69: Conclusion
Conclusion Although the competitive and economic environment is more challenging in France The Bouygues group has strengthened... The construction businesses have ramped up their international expansion Bouygues Telecom has implemented and is rolling out an aggressive strategy The new Alstom
Slide 70: Building the future is our greatest adventure
BUILDING THE FUTURE IS OUR GREATEST ADVENTURE