Bouygues Sa · EURONEXT:EN
Bouygues Sa — 9M 2019 Earnings Presentation
45 slides from Bouygues Sa's earnings presentation, Nov 14, 2019
Slide 1: Nine-Month 2019 Results Presentation
NINE-MONTH 2019 RESULTS NOVEMBER 14TH 2019 PRESENTATION
Slide 2: Forward-looking statements 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: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 3
Slide 4: Highlights for 9M 2019
HIGHLIGHTS FOR 9M 2019 ⚫ 9-MONTH 2019 RESULTS IN LINE WITH H1 2019 TRENDS ◼ Improvement in Group current operating profit and current operating margin year-on-year ◼ Solid performance in construction activities with increased current operating profit year-on-year ◼ Strong commercial and financial mo
Slide 5: Group key figures for 9M 2019
GROUP KEY FIGURES FOR 9M 2019 9M 2018 €m 9M 2019 Change restated ◼ Strong growth in sales year-on-year Sales 25,219 27,601 +9%a > Up 5% like-for-like and at constant FX o/w France 15,646 16,043 +3% o/w international 9,573 11,558 +21% ◼ Improvement in Group current operating profit Current operating
Slide 6: Change in net debt position in 9M 2019 (1/2)
CHANGE IN NET DEBTa POSITION IN 9M 2019 (1/2) €m Net debta at Net debta at 31/12/2018 30/09/2019 Acquisitions/disposalsc (3,612) -165 +1,420 +8 -710 (4,643) Capital transactions Dividends Alstomb and otherd -1,584 Operations 9M 2018 (1,902) - -1,557e +9f -680 -1,335 (5,465) restated (a) See glossary
Slide 7: Change in net debt position in 9M 2019 (2/2)
CHANGE IN NET DEBT POSITION IN 9M 2019 (2/2) €m Breakdown of operations Net cash flowa Repayment of lease excluding Alstom’s dividend obligations -246 Net capex Change in WCR -1,105 and otherc +1,998b -1,584 -2,231 +1,752 Net cash flow excluding Alstom’s dividend and including lease expenses 9M 2018
Slide 8: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 8
Slide 9: Construction businesses
CONSTRUCTION BUSINESSES The Arte – Miami – USA Runaway 3 at Orly airport – France Cosy Parc – Brie Comte Robert – France 9
Slide 10: Backlog at a very high level
Backlog in the construction businesses BACKLOG AT A VERY HIGH LEVEL (€bn) 33.8 32.5 -4%a 2.6 -13% 2.2 ⚫ €32.5BN BACKLOG AT END-SEPTEMBER 2019 8.7 +5%b 9.1 Backlog in the construction businesses (€bn) 33.8 32.5 22.5 21.2 -6%c 29.9 29.0 28.1 27.4 End-Sep 2018 End-Sep 2019 Bouygues Immobilier Colas Bou
Slide 11: Backlog in France
Backlog in the construction businesses BACKLOG IN FRANCE in France (€bn) 15.2 0.7 14.0 -8% ⚫ BACKLOG AT END-SEPTEMBER 2019 DOWN 2%a YEAR-ON-YEAR 0.3 2.4 -11% 2.2 -2% excl. ◼ High increase in Colas’ backlog for roads in mainland France (+8%) Axione and 3.1 +7%a 3.3 Smac ◼ Slight decrease at Bouygues
Slide 12: Backlog in international markets
BACKLOG IN INTERNATIONAL MARKETS Backlog in the construction businesses in international markets (€bn) Stablea 18.5 18.5 0.1 -32% 0.1 ⚫ BACKLOG AT THE HIGH LEVEL OF €18.5BN 5.3 +9%b 5.8 AT END-SEPTEMBER 2019 ◼ Significant orders expected in Q4 2019 and in 2020 at Colas and Bouygues Construction 13.1
Slide 13: Key figures in the construction businesses for 9M 2019
KEY FIGURES IN THE CONSTRUCTION BUSINESSES FOR 9M 2019 9M 2018 9M €m Change ⚫ INCREASE IN CONSTRUCTION BUSINESSES CURRENT restated 2019 OPERATING PROFIT YEAR-ON-YEAR Sales 19,736 21,583 +9%a o/w France 10,270 10,166 -1% ◼ Recovery of current operating profit in Energies and Services at Bouygues Cons
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Slide 15: Strong commercial momentum
Mobile plan customer base exc. MtoMa STRONG COMMERCIAL MOMENTUM (in millions) 11.4 10.8 10.2 ⚫ 11.4 MILLION MOBILE PLAN CUSTOMERS EXCLUDING 9.6 MtoMa AT END-SEPTEMBER 2019 9.0 ◼ +501,000 in 9M 2019 ◼ +220,000 in Q3 2019 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 ⚫ 3.8 MILLION FIXED CUSTOMERS AT END-SEP
Slide 16: Solid top line growth at Bouygues Telecom
SOLID TOP LINE GROWTH AT BOUYGUES TELECOM ⚫ SALES FROM SERVICES UP 7% YEAR-ON-YEAR €m 9M 2018 9M 2019 Change restated ◼ Growth in Mobile and Fixed customer base Sales 3,934 4,426 +13%a o/w Sales from services 3,172 3,396 +7% ◼ Increase in Fixed ABPU (+€1.1), stable in Mobile EBITDA after Leasesb 928
Slide 17: Bouygues Telecom #1 mobile network in rural areas in France
BOUYGUES TELECOM #1 MOBILE NETWORK IN RURAL AREAS IN FRANCE AND #2 NATIONALLY FOR TWO YEARS IN A ROWa #1 Mobile network in rural areas #2 Mobile network in France (a) Arcep 2019 and 2018 surveys 17
Slide 18: Three major growth drivers
THREE MAJOR GROWTH DRIVERS ⚫ MOBILE MARKET SHARE GAINS IN LESS DENSE AREAS ◼ Benefitting from mobile network sharing: 50% more sites vs 2015 ◼ Gradual strengthening of local distribution channels with the opening of around 50 stores ⚫ GROWING SOURCE OF NEW CUSTOMERS FROM THE RAMP-UP OF FIBER ROLL-OU
Slide 19: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 19
Slide 20: Condensed consolidated income statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) 9M 2018 €m 9M 2019 Change restated Sales 25,219 27,601 +9%a Current operating profit 858 1,118 +€260m Current operating profit after Leasesb 818 1,076 +€258m Other operating income and expenses 198 50 -€148m Operating profit 1,056c 1,168d +€112m Operatin
Slide 21: Condensed consolidated income statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) 9M 2018 €m 9M 2019 Change restated Income tax (265) (325) -€60m Share of net profit of joint ventures and associates 252 286 +€34m o/w Alstom 230 238 +€8m Net profit from continuing operations 866 944 +€78m Net profit attributable to non-controlling inte
Slide 22: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 22
Slide 23: Outlook confirmed
OUTLOOK CONFIRMED ◼ In 2019, improvement of Group profitability and free cash flowa generation of €300m at Bouygues Telecom ◼ Increase Group free cash flow generation after WCRb to €1bn within two years, thanks to the contribution of the three sectors of activity (a) Free cash flow: net cash flow (d
Slide 24: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 24
Slide 25: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Backlog by geographic region (at end-Sep 2019) Order intakea (€bn) Axione 6% International 10.2 2% -21% 8.1 8.1 30% 5.8 3.9 4.5 -22% 0.3 0.4 40% 3.9 4.0 -11% excl. 22% 3.6 Axione 9M 2017 9M 2018 9M 2019 France Asia and Middle East Europe (excl. Franc
Slide 26: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€bn) Commercial property 1.9 -17% 1.7 0.2 1.5 0.2 0.1 -80% 1.7 1.5 1.4 -8% 9M 2017 9M 2018 9M 2019 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial EDA Quai d’Issy– Franc
Slide 27: Key figures at Colas
ANNEX KEY FIGURES AT COLAS Backlog (€bn) +5%a 9.1 8.7 7.7 0.4 +7% excl. 0.4 3.3 Smac 3.0 Design, construction and maintenance of the first tramway line in Liège – Belgium – €266 M€ 2.9 9M 2018 €m 9M 2019 Change restated Sales 9,602 10,182 +6%a o/w France 4,691 4,885 +4% 5.8 +9%b 5.3 o/w internationa
Slide 28: A strong and selective international presence
ANNEX A STRONG AND SELECTIVE INTERNATIONAL PRESENCE BOUYGUES OPERATES IN GROWING COUNTRIES WITH A LOW-RISK PROFILE NORTH AMERICA NORTHERN AND CENTRAL EUROPE United States: +2.5% United Kingdom: +1.5% Canada: +1.9% Switzerland: +1.8% RUSSIA: +1.6% 0% 41% 28% 1% SOUTHERN EUROPE MIDDLE EAST AND NORTH S
Slide 29: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 restated restated restated restated restated 2018 2018 2018 2018 2019 2019 2019 Sales from mobile services 705 713 750 737 2,904 719 734 779 754 2,986 751 776 804 (€m) Sales from fixed services 27
Slide 30: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Total premises on the marketc Bouygues Telecom at end-Sept 2019 Bouygues Telecom at end-2019 Very Dense 6.4 Area 3.6 4.5 Medium Dense Area 13.2 AMIId 6.5 35.5 5.9 10.2 12 Public Initiative 15.9 Network (PIN) Aread 0.7 1 (a) Fiber-To-The-Home – optical fiber
Slide 31: Reminder: application of IFRS 16 (Leases) from 1 January 2019
ANNEX REMINDER: APPLICATION OF IFRS 16 (LEASES) FROM 1 JANUARY 2019 ⚫ RESTATEMENT OF 2018 FINANCIAL STATEMENTS ◼ The 2018 financial statements have been restated following the first-time application of IFRS 16 on Leases from 1 January 2019. For 9M 2018, there was a negative impact of €1m on net prof
Slide 32: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY 9M 2018 Lfl & constant €m 9M 2019 Change restated fxa Construction businessesb 19,736 21,583 +9% +4% o/w Bouygues Construction 8,589 9,899 +15% +3% o/w Bouygues Immobilier 1,716 1,610 -6% -6% o/w Colas 9,602 10,182 +6% +6% TF1 1,576 1,615 +2% +0% Bouygues Telecom 3,
Slide 33: Contribution to Group EBITDA after Leases by sector of activity
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 716 980 +€264m o/w Bouygues Construction 222 395 +€173m o/w Bouygues Immobilier 85 32 -€53m o/w Colas 409 553 +€144m TF1 299 328 +€29m Bouygues Telecom 928 1,050 +€122m B
Slide 34: Contribution to Group current operating profit by sector of activity
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 423 545 +€122m o/w Bouygues Construction 146 280 +€134m o/w Bouygues Immobilier 113 42 -€71m o/w Colas 164 223 +€59m TF1 127 184 +€57m Bouygues Telecom 331 405 +€74m
Slide 35: Contribution to Group current operating profit after Leases by sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT AFTER LEASESa BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 407 525 +€118m o/w Bouygues Construction 139 272 +€133m o/w Bouygues Immobilier 112 41 -€71m o/w Colas 156 212 +€56m TF1 124 181 +€57m Bouygues Telecom
Slide 36: Contribution to Group operating profit by sector of activity
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 423 535 + €112m o/w Bouygues Construction 146 270 +€124m o/w Bouygues Immobilier 113 42 -€71m o/w Colas 164 223 +€59m TF1 111 184 +€73m Bouygues Telecom 545 465 -€80m Bouygue
Slide 37: Contribution to Group operating profit after Leases by sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT AFTER LEASESa BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 407 515 +€108m o/w Bouygues Construction 139 262 +€123m o/w Bouygues Immobilier 112 41 -€71m o/w Colas 156 212 +€56m TF1 108 181 +€73m Bouygues Telecom 525 447
Slide 38: Contribution to net profit attributable to the Group by sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 279 381 +€102m o/w Bouygues Construction 110 226 +€116m o/w Bouygues Immobilier 61 20 -€41m o/w Colas 108 135 +€27m TF1 36 52 +€16m Bouygues Telecom 309 251 -€5
Slide 39: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-Dec 2018 €m End-Sep 2019 Change restated Non-current assets 20,879 20,142 -€737m Current assets 17,968 20,532 +€2,564m Held-for-sale assets and operations 340 - -€340m TOTAL ASSETS 39,187 40,674 +€1,487m Shareholders' equity 11,032 11,224 +€192m Non-cur
Slide 40: Contribution to Group net cash flow by sector of activity
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 675 844 +€169m o/w Bouygues Construction 211 367 +€156m o/w Bouygues Immobilier 56 (7) -€63m o/w Colas 408 484 +€76m TF1 235 291 +€56m Bouygues Telecom 989 936 -€53m Bouygues S
Slide 41: Contribution to net capital expenditure by sector of activity
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 314 304 -€10m o/w Bouygues Construction 97 149 +€52m o/w Bouygues Immobilier 6 7 +€1m o/w Colas 211 148 -€63m TF1 129 161 +€32m Bouygues Telecom 714 638 -€76m Bouygues SA an
Slide 42: Contribution to Group free cash flow before WCR by sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOW BEFORE WCRa BY SECTOR OF ACTIVITY 9M 2018 €m 9M 2019 Change restated Construction businesses 247 400 +€153m o/w Bouygues Construction 55 147 +€92m o/w Bouygues Immobilier 43 (20) -€63m o/w Colas 149 273 +€124m TF1 94 117 +€23m Bouygues Telecom 178 205 +€27m
Slide 43: Net surplus cash (+)/net debt (-)
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End-Dec End-Sep €m 2018 Change 2019 restated Bouygues Construction 3,119 2,196 -€923m Bouygues Immobilier (238) (633) -€395m Colas (475) (1,220) -€745m TF1 (28) (53) -€25m Bouygues Telecom (1,275) (1,689) -€414m Bouygues SA and other (4,715) (3,244) +€1,471m
Slide 44: Glossary (1/2)
ANNEX GLOSSARY (1/2) EBITDA AFTER LEASES ◼ Current operating profit after Leases (i.e. current operating profit after taking account of interest expense on lease obligations) before (i) net depreciation and amortization expense on property, plant and equipment and intangible assets, (ii) net charges
Slide 45: Glossary (2/2)
ANNEX GLOSSARY (2/2) SALES FROM SERVICES COMPRISE: - Sales billed to customers, which include: In Mobile: o For BtoC customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services. o For BtoB customers: sales from outgoing call charges (voice, texts an