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Bouygues Sa — Bouygues Telecom — Investor Presentation (October 2024)
29 slides from Bouygues Sa's investor presentation, Oct 2, 2024
Slide 1: Bouygues Telecom
BOUYGUES TELECOM 2 OCTOBER 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and statements about Bouygues Telecom and its businesses. Forward-looking statements may be identified by the use of words such as “will”, “expects”, “Shapes”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statemen
Slide 3: A fast changing market
A fast changing market 3
Slide 4: Mobile B2C market: outlook is deteriorating
A FAST CHANGING MARKET Mobile B2C market: outlook is deteriorating Inflation & purchasing power Less handset innovation issues Data usage: Mobile market deteriorating from exponential to linear 4
Slide 5: Mobile B2C: growth slowdown and price pressure in 2024 on the entry level
A FAST CHANGING MARKET Mobile B2C: growth slowdown and price pressure in 2024 on the entry level Volume: Mobile postpaid net adds slowdown Value: Price pressure on B2C Mobile entry plans H1 2021 – H1 2024, in thousands net addsa Average price for a new Mobile subscription (residential) >10Gob Main u
Slide 6: Fixed broadband B2C market: good outlook confirmed
A FAST CHANGING MARKET Fixed broadband B2C market: good outlook confirmed Move to FTTH Customer usages Importance of WiFi and Fixed market growth network quality 6
Slide 7: Fixed Broadband B2C market: strong trends in volume and value
A FAST CHANGING MARKET Fixed Broadband B2C market: strong trends in volume and value Growth on Fixed market FTTH Penetration Fixed B2C ABPU evolution 2020-2023, in million customers 2020-2023, in million customers In € / subscriber / month 32.3 32.3 € 35.2 30.6 30.6 € 33.8 34% 66% 66% 34% 2020 2023
Slide 8: Bouygues Telecom is ready to face the new market context
Bouygues Telecom is ready to face the new market context 8
Slide 9: Bouygues Telecom benefits from solid tailwinds in Fixed B2C and a high-quality Mobile network
BOUYGUES TELECOM IS READY TO FACE THE NEW MARKET CONTEXT Bouygues Telecom benefits from solid tailwinds in Fixed B2C and a high-quality Mobile network 90% French pop coverage 1 FTTH footprint Around 37m households will be connected end-2024 #1 operator on WiFi (nPerf) 2 Broadband products quality #1
Slide 10: Bouygues Telecom Fiber footprint: higher than DSL, leading to increasing market share in rural areas
BOUYGUES TELECOM IS READY TO FACE THE NEW MARKET CONTEXT Bouygues Telecom Fiber footprint: higher than DSL, leading to increasing market share in rural areas, and development of B2B in the Fixed FTTH Homes covered Bouygues Telecom Fixed market FTTO Homes covered Bouygues Telecom share by area Bouygu
Slide 11: Box's quality: Innovative devices to ramp-up growth in the Fixed segment
BOUYGUES TELECOM IS READY TO FACE THE NEW MARKET CONTEXT Box’s quality: Innovative devices to ramp-up growth in the Fixed segment ● No. 1 on the Fixed broadbanda, all technologies and all criteria combined, for 2 consecutive times ● No. 1 operator on Wifib for the 5th consecutive time ▪ High quality
Slide 12: Bouygues Telecom leverages its brands & channels portfolio to excel at addressing market segments
BOUYGUES TELECOM IS READY TO FACE THE NEW MARKET CONTEXT Bouygues Telecom leverages its brands & channels portfolio to excel at addressing market segments Leverage a unique asset on the market ✓ Capacity to address unique customer needs ✓ Adaptability to have a nimble pricing strategy vs. competitio
Slide 13: Mobile network: an increasing number of active Mobile sites offering great footprint
BOUYGUES TELECOM IS READY TO FACE THE NEW MARKET CONTEXT Mobile network: an increasing number of active Mobile sites offering great footprint on the territory Bouygues Telecom active sites ● Bouygues Telecom’s excellent scores in ARCEP surveys 09/2021 – 09/2024, in thousands 4G sites ▪ #2 on average
Slide 14: Adapting the 2024-2026 trajectory to evolving market conditions
Adapting the 2024-2026 trajectory to evolving market conditions 14
Slide 15: Marketing strategy: time to pivot
ADAPTING THE 2024-2026 TRAJECTORY TO EVOLVING MARKET CONDITIONS Marketing strategy: time to pivot What we have done - Increase ABPU thanks to a more for more pricing approach - Develop our FTTH network and raise our Fixed products and services to the for the last 3 years highest standard - Maintain
Slide 16: Launch on the 7th October 2024
Launch on the 7th October 2024 16
Slide 17: B.iG: a step for a new Fixed-lead value creation
ADAPTING THE 2024-2026 TRAJECTORY TO EVOLVING MARKET CONDITIONS B.iG: a step for a new Fixed-lead value creation A strategic pivot towards households Today With B.iG ~40% of ByTel households have at least one Fixed and one Conquest Large potential to capture Mobile contract vs. 55%a on average for c
Slide 18: B.iG: attractive for multi-line converged homes
ADAPTING THE 2024-2026 TRAJECTORY TO EVOLVING MARKET CONDITIONS B.iG: attractive for multi-line converged homes FIXED MOBILE A box price that does not change after Progressive and applicable discounts the first year on all the lines included in the pack -€5/month -€8/month -€10/month -€7/month per l
Slide 19: B.iG: an opportunity to catch up with household exclusivity
ADAPTING THE 2024-2026 TRAJECTORY TO EVOLVING MARKET CONDITIONS B.iG: an opportunity for Bouygues Telecom to catch up with household exclusivity Operator-exclusive households Orange SFR Bytel Free a 36% 41% a a 45% 53% • Bytel Fixed households: 3.2 million Mobile lines with another operator (a) Sour
Slide 20: B.iG: three pillars
ADAPTING THE 2024-2026 TRAJECTORY TO EVOLVING MARKET CONDITIONS B.iG: three pillars Benefit from low and decreasing prices on your packages + a Bbox at a price that lasts! savings Stay in control whenever you want by activating a “start & stop” feature on your plans and take advantage of the Giga Bo
Slide 21: Bouygues Telecom confirms delivering sustainable FCF
Bouygues Telecom confirms delivering sustainable FCF 21
Slide 22: 2026 services revenue should be slightly below target
FINANCIALS: DELIVERING SUSTAINABLE FREE CASH FLOWA Due to pressure on Mobile and despite breakthroughs in Fixed & B2B, 2026 services revenue should be slightly below target VOLUME GROWTH VALUE GROWTH Limited market growth MOBILE B2C Market share growth thanks to B.IG offer Price pressure FIXED B2C M
Slide 23: Continuing work to improve efficiency
FINANCIALS: DELIVERING SUSTAINABLE FREE CASH FLOWA Continuing work to improve efficiency Cost items Drivers 2023-26 2026 vs CMD Fixed rental # Fixed Clients growth = Mobile & Fixed sites rental and tax # Mobile sites / technology = Energy # Mobile sites - energy price Commercial, customer care # C
Slide 24: EBITDAaL growth: slight growth between 2023 and 2026
FINANCIALS: DELIVERING SUSTAINABLE FREE CASH FLOWA EBITDAaLb growth: slight growth between 2023 and 2026 Incremental EBITDAAL + - + Fixed costs - Efficiency Slight (rental Energy Fixed - growth productivity model) (~€80m in + revenue 2025) Mobile sites compared Mobile growth (B2C and B2B) to 2023 re
Slide 25: Capex peak is behind in Mobile and Fixed
FINANCIALS: DELIVERING PROFITABLE AND SUSTAINABLE FREE CASH FLOWA Capex peak is behind in Mobile and Fixed FTTH coverage: target achieved 3 years in advance Mobile network: already well sized to support growth in usage, less important than expected Mobile data consumption (market - 4G and 5G) FTTH H
Slide 26: 2026 gross capex: ~€1.25bn vs ~€1.4bn
FINANCIALS: DELIVERING PROFITABLE AND SUSTAINABLE FREE CASH FLOWA Bouygues Telecom lighter CAPEX plan Bouygues Telecom can now leverage and capitalize on its strong past investments in the network while maintaining its high-quality ambitions, leading to a decrease of around 10% in capex Bouygues Tel
Slide 27: 2026 FCF ambition is confirmed
FINANCIALS: DELIVERING SUSTAINABLE FREE CASH FLOWA 2026 FCFa ambition is confirmed Incremental FCF ~€600m ~€600m - + EBITDAal - + Tax impactb Financial Lighter costs capex plan 2026 CMD 2026e ambition Note: surface are purely illustrative and not representative of real proportions (a) Before WCR. Ex
Slide 28: Conclusion
FINANCIALS: DELIVERING PROFITABLE AND SUSTAINABLE FREE CASH FLOWA Conclusion In a context of changing market conditions: ▪ inflation and evolving customer behaviors ▪ slower growth in the Mobile market and increased competitive intensity Bouygues Telecom is implementing a new marketing strategy, tha
Slide 29: Thank you
on est fait pour étreensemble _ Ba
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