Bouygues Sa · EURONEXT:EN
Bouygues Sa — FY2006 Earnings Presentation
85 slides from Bouygues Sa's earnings presentation, Feb 28, 2007
Slide 1: Presentation of Full-Year 2006 Results and Outlook
PRESENTATION OF FULL-YEAR 2006 RESULTS AND OUTLOOK PARIS - 32 Hoche 28 February 2007
Slide 2: This presentation contains projections and forecasts. They express objectives based on the current assessments
This presentation contains projections and forecasts. They express objectives based on the current assessments and estimates of the Group’s senior management which are subject to many factors and uncertainties. The following factors among others set out in the Annual Report (Document de Référence) r
Slide 3: Highlights and Key Figures; Business Areas; Financial Statements; Outlook
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK AND OBJECTIVES 3
Slide 4: Highlights in 2006 (1/2)
HIGHLIGHTS IN 2006 (1/2) Further sharp rise in order intakes, sales (+10%) and net profit (+50%) Industrial and commercial partnership with Alstom and acquisition of a 25.1% stake Record order intakes in the three construction businesses Success of Bouygues Telecom’s new unlimited offers C
Slide 5: Highlights in 2006 (2/2)
HIGHLIGHTS IN 2006 (2/2) Continued external growth in each business 9 Bouygues Construction (ETDE, acquisitions in Switzerland and the Czech Republic) 9 Colas (Spie Rail) 9 TF1 (acquisition of a 33.5% stake in AB group) Two bond issues (€1,750m and £400m) under good conditions Hiring of 16,700
Slide 6: Bouygues Group: key operating figures
BOUYGUES GROUP: key operating figures € million 2005 2006 Change Sales 23,983 26,408 +10% Operating profit 1,745 1,877 +8% Net profit att. to the Group 832 1,246 +50% Recurring net profit (excl. TPS and BTC) 824 1,038 +26% Recurring net profit excludes profit related to divested companies: TPS and B
Slide 7: Bouygues Group: key figures over five years
BOUYGUES GROUP: key figures over five years (€ million) Sales 26,408 * EBITDA 3,268 * 3,279 * 2,730 2,805 * +45% 23,402 23,983 * +19% 22,247 21,822 2,260 2,415 20,815 * 2002 2003 2004 2004 2005 2006 2002 2003 2004 2004 2005 2006 French GAAP IFRS French GAAP IFRS Operating profit Net profit att. to t
Slide 8: Bouygues Group: key figures per share
BOUYGUES GROUP: key figures per share (€) Earnings per share Dividend per share (excluding exceptional payout) 1.20 * 3.71 0.90 x 3.3 2.72 0.75 2.57 2.51 1.93 x 3.3 0.50 0.36 3.09 2.48 2.11 2.01 1.34 0.93 2002 2003 2004 2004 2005 2006 2002 2003 2004 2005 2006 French GAAP IFRS Non-recurring items
Slide 9: Bouygues Group: debt situation
BOUYGUES GROUP: debt situation € million 2005 2006 Change Shareholders’ equity 5,561 6,493 +€932m Net debt excluding Alstom 2,352 1,652 -€700m Investment in Alstom / 2,524 ns Total net debt 2,352 4,176 +€1,824m Debt-to-equity ratio 42% 64% +22 pts Standard & Poor’s credit rating maintained: A- wit
Slide 10: Bouygues Group: free cash flow
BOUYGUES GROUP: free cash flow € million 2005 2006 Change Cash flow 3,090 3,155 +2% - Cost of net debt -187 -200 +7% - Income tax -570 -560 -2% - Net operating investments -1,229 -1,606 +31% Free cash flow 1,104 789 -29% Increased investments 10 driven by business development
Slide 11: Bouygues - Alstom
BOUYGUES - ALSTOM Bouygues-Alstom partnership 9 acquisition of a 25.1% stake in Alstom for €2.5 billion 9 non-exclusive cooperation agreement to join forces and face the challenges of global transport and power markets 9 appointment of two Bouygues representatives to Alstom’s Board of Directors 9
Slide 12: Bouygues - Alstom: cooperation (1/2)
BOUYGUES - ALSTOM: cooperation (1/2) Commercial cooperation 9 regular meetings between commercial/business development managers from Alstom, Bouygues Construction and Colas 9 upstream identification of commercial opportunities 9 implementation of synergies thanks to close geographical fit Operat
Slide 13: Bouygues - Alstom: cooperation (2/2)
BOUYGUES - ALSTOM: cooperation (2/2) Initial results 3 a positive phase of learning and getting to know each other 3 Bouygues and Alstom have compatible corporate cultures Joint venture in the hydropower sector 9 31 October 2006: acquisition of a 50% stake in Alstom Hydro Holding, a joint ventur
Slide 14: Bouygues: share ownership structure at 31 December 2006
BOUYGUES: share ownership structure at 31 December 2006 Capital Voting rights Foreign Foreign shareholders SCDM shareholders SCDM 18.7% Groupe 27.6% 2.1% Artémis 30.0% 38.6% (F. Pinault) 13.2% Groupe 2.3% Artémis Employees 17.1% (F. Pinault) 27.4% 23.0% Other French Other Employees shareholders
Slide 15: Group: share performance
BOUYGUES GROUP: share performance Performance of the Bouygues share and the Dow Jones Eurostoxx 50 index from 31 December 2005 to 26 February 2007 Bouygues DJ EuroStoxx 50 2006 2007 €54.84 54 +33% 50 +19% Share price in € 46 42 38 34 Jan.-06 Feb.-06 March-06 April-06 May-06 June-06 July-06 Aug.-06
Slide 16: Bouygues: 1996-2006 (1/2)
BOUYGUES: 1996-2006 (1/2) € million 1996 2006 Change Sales 11,185 26,408 x 2.4 Operating profit 168 1,877 x 11.2 Net profit att. to the Group 100 1,246 x 12.5 Operating investments 484 1,702 x 3.5 Free cash flow (before WCR) 224 789 x 3.5 Net debt (319) 4,176 +€4,495m Workforce at 31 December 91,979
Slide 17: Bouygues: 1996-2006 (2/2)
BOUYGUES: 1996-2006 (2/2) Market capitalisation (€ m) 18,737 x 10,6 1,740 at 31/12/1995 at 26/02/2007 Shareholders' contribution (1996-2006): €m Capital increases (4,058) Share buybacks 1,353 Ordinary dividends 1,419 Exceptional payout in 2005 1,664 Balance (1996-2006) 378 €100 invested in early 199
Slide 18: Business Areas
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK AND OBJECTIVES 18
Slide 19: Bouygues Construction: key figures
BOUYGUES CONSTRUCTION (B/CW): key figures € million 2005 2006 Change Sales 6,131 6,923 +13% of which France 3,653 4,268 +17% of which international 2,478 2,655 +7% Current operating profit 249 305 +22% Current operating margin 4.1% 4.4% +0.3 pt Net profit att. to the Group 175 209 +19% Net cash at 3
Slide 20: Bouygues Construction: commercial activity (1/2)
BOUYGUES CONSTRUCTION: commercial activity (1/2) Record order intakes * in 2006: €9bn, up 38% 2006 order intakes amounted € bn International to €9.3bn, using the new 10 France 9.0 9 accounting method for long- 8 6.5 3.7 term contracts which are 7 5.4 6 4.9 5.1 5.1 4.8 5.1 taken into account over t
Slide 21: Bouygues Construction: commercial activity (2/2)
BOUYGUES CONSTRUCTION: commercial activity (2/2) In 2006, Bouygues Construction was awarded an exceptional number of major contracts, including two contracts worth €500m France International A41 motorway between Annecy and Geneva Cyprus airports (€488m) (€512m) Toulon tunnel (€89m) Peterborough an
Slide 22: Bouygues Construction: order book
BOUYGUES CONSTRUCTION: order book * € bn +45% 8.7 At 31 December 2006 End of period France 6.0 Americas 50% 3% Other 6% 82% Asia 9% Rest of Europe 2005 2006 32% * New accounting method Despite strong sales in 2006, the order book rose by 45% All businesses contributed to this growth 9 Building 9
Slide 23: Bouygues Construction: outlook
BOUYGUES CONSTRUCTION: outlook Further strong growth projected 9 in France: very buoyant activity 9 in Europe: growing contribution from recently acquired companies 9 international operations: high level of activity, due notably to the start of large- scale projects In this context, Bouygues Con
Slide 24: Bouygues Immobilier: key figures
BOUYGUES IMMOBILIER: key figures € million 2005 2006 Change Sales 1,557 1,608 +3% o/w housing 1,047 1,260 +20% o/w corporate/commercial 510 348 -32% Current operating profit 156 176 +13% Current operating margin 10% 10.9% +0.9 pt Net profit att. to the Group 90 107 +19% Exaltis tower Net cash at 31
Slide 25: Bouygues Immobilier: order book
BOUYGUES IMMOBILIER: order book in months of sales 14.3 months 13.5 months 18.3 months Corporate/commercial Housing 2,457 +41% €m +44% 506 End of period 1,746 1,516 352 452 +40% 1,951 1,394 1,064 2004 2005 2006 Very good visibility for 2007 and 2008 25
Slide 26: Bouygues Immobilier: reservations
BOUYGUES IMMOBILIER: reservations Housing Corporate/commercial (Number of units) (Office space - sq. metres) 10,852 167,000 8,208 157,000 6,759 +32% 145,000 -8% 2004 2005 2006 2004 2005 2006 Reservations (€ m) 2,278 +31% Corporate/ 1,738 485 1,549 commercial 388 Housing 481 1,793 1,350 1,068 2
Slide 27: French Housing Market: solid fundamentals (1/3)
FRENCH HOUSING MARKET: solid fundamentals (1/3) French market - private developers 140,000 Number of units (e) 130,000 125,000 121,418 120,000 112,223 110,000 103,201 100,000 90,000 85,431 80,167 80,000 75,183 70,000 60,000 50,000 2000 2001 2002 2003 2004 2005 2006 Source: ECLN Steady growth since 2
Slide 28: French Housing Market: solid fundamentals (2/3)
FRENCH HOUSING MARKET: solid fundamentals (2/3) Interest rates likely to remain at current attractive levels Household solvency ratio still satisfactory 10% 110 102.1 104.1 9% 100 99.8 101.6 9.3% 96 97.3 100 8% 8.3% 91.2 92.2 92.8 7% 86.8 7.3% 90 7.0% 6% 79.9 6.5% 6.2% 6.3% 5% 6.0% 80 5.3% 4% 4.
Slide 29: French Housing Market: solid fundamentals (3/3)
FRENCH HOUSING MARKET: solid fundamentals (3/3) Annual housing requirement: 500,000 units * 9 cumulative shortfall since 1990: between 800,000 and 1 million ** 9 demographic / sociological trends ¾ population ageing, households breaking into smaller units ¾ migration to western and southern France
Slide 30: French Housing Market: price increases
FRENCH HOUSING MARKET: price increases Market prices are rising less quickly Average selling price of Bouygues Immobilier homes is rising more slowly than market prices per sq. metre: Bouygues Immobilier is adapting products to customer demand €'000 €/m² (e) 300 3,053 3,000 2,850 2,549 2,500 2,3
Slide 31: Office Market: positive trends
OFFICE MARKET: positive trends Placed demand in Greater Paris region hit record levels in 2006 Placed demand in Greater Paris region (million sq. m) (Bourdais-Immostat) Investment in France (€ bn) 3.5 25 €23.1bn 3.0 2.863m sq. m 20 2.5 15 2.0 1.5 10 1.0 5 0.5 0.0 0 80 81 82 83 84 85 86 87 88 89 90
Slide 32: Bouygues Immobilier: strong positions in its markets
BOUYGUES IMMOBILIER: strong positions in its markets Pure-player strategy for property development in France and Europe Non-speculative approach Leading positions in its markets 12,000 Number of Bouygues Immobilier homes reserved in France 10.0% Bouygues Immobilier market share (est.) 9.5% 10,
Slide 33: Bouygues Immobilier: recent housing projects
BOUYGUES IMMOBILIER: recent housing projects Mantes-la-Jolie Architect: IMHOPET "Le Rivoli" - Marseille Architect: Roland Carta "Les Jardins du Carrousel" Issy-les-Moulineaux Architect: Claude Kontomichos 33
Slide 34: Bouygues Immobilier: expertise in major office development schemes
BOUYGUES IMMOBILIER: expertise in major office development schemes "Seine Ouest" - "Mozart" 89,000 sq. metres Architects: Arquitectonica and Jean-Michel Wilmotte "Exaltis" - La Défense 23,000 sq. metres "BMS" - Rueil-Malmaison Architects: Arquitectonica and Bridot Willerval 24,000 sq. metres Archite
Slide 35: Bouygues Immobilier: key strengths
BOUYGUES IMMOBILIER: key strengths Order backlog equivalent to 18.3 months' sales Well-managed land portfolio equivalent to three years' sales 9 23,440 potential homes 9 573,535 sq. m potential office space Strong innovative capability 3 first developer to seek "Habitat & Environment" (Cerqual
Slide 36: Bouygues Immobilier: outlook
BOUYGUES IMMOBILIER: outlook In France, housing demand is still buoyant and the corporate market is reviving Greater contrast in the European market Bouygues Immobilier will pursue its development, while remaining attentive to the market environment Sales target 2006 2007 (€ million) Change ta
Slide 37: Colas: key figures
COLAS: key figures € million 2005 2006 Change Sales 9,540 10,716 +12% of which France 5,501 6,294 +14% of which international 4,039 4,422 +9% Current operating profit 422 524 +24% Current operating margin 4.4% 4.9% +0.5 pt Net profit att. to the Group 307 396 +29% Road in Alberta Net cash at 31 Dec.
Slide 38: Colas: industrial activities
COLAS: industrial activities Aggregates 9 output: 113m tonnes (multiplied by 9 in 20 years) 9 reserves: 2.6bn tonnes, i.e. 23 years' output 9 world's 9th-biggest producer Asphalt mix 9 output: 55m tonnes 9 615 asphalt plants Emulsions 9 output: 1.544m tonnes 9 156 emulsion plants 9 world No. 1
Slide 39: Colas: order book
COLAS: order book International and French overseas territories Metropolitan France +18% 5,513 € million +18% End of period 4,663 +15% 2,800 3,947 3,431 2,243 1,867 1,855 2,713 2,420 2,080 1,576 2003 2004 2005 2006 Strong commercial activity 39
Slide 40: Colas: rail freight
COLAS: rail freight Business diversification for Seco-Rail 9 licence granted in 2006 9 investment: 20 locomotives and 200 wagons Objectives 9 2m tonnes carried in 2007 9 8 trains per day at end-2007 9 as at 16 February: 41 trains ~ 47,300 tonnes A complementary business in the rail sector 40
Slide 41: Colas: outlook
COLAS: outlook Roadworks in France: the market is stabilising at a high level Roadworks in international markets: bright prospects Other activities: markets still buoyant Against this backdrop, Colas aims to: 3 pursue its strategy to bolster industrial activities and make targeted acquisitio
Slide 42: TF1: key figures
TF1: key figures € million 2005 2006 Change Sales 2,509 2,654 +6% o/w core channel advertising 1,648 1,708 +4% o/w other activities 861 946 +10% Current operating profit 339 301 -11% Current operating margin 13.5% 11.3% - 2.2 pts Net profit att. to the Group 236 452 * +92% France-Portugal semi-final
Slide 43: TF1: leadership on every network
TF1: leadership on every network National Médiamat DTT Cable-satellite environment environment environment Source : Médiamétrie – Individuals aged 4 and over - 2006 Médiamétrie – Individuals aged 4 and over - Nov/Dec 2006 Médiacabsat 11 - Individuals aged 4 and over - Dec 2005/June 2006 In the lead
Slide 44: TF1: two strategic transactions
TF1: two strategic transactions Pay-TV agreement completed 3 31 August 2006: TPS deconsolidated 3 4 January 2007: final agreement signed to merge the pay-TV businesses of the Canal+ group and TPS in Canal+ France, a new group controlled by Vivendi ¾ TF1 transferred its 66% stake in TPS to Canal+ F
Slide 45: TF1: outlook
TF1: outlook In a fast-evolving broadcasting market, TF1 aims to 3 remain a leading content provider in France, particularly in new media (internet) 3 consolidate Eurosport's lead 3 provide content in France and international markets 3 control programming costs Sales target (€ million) 2006 2007 C
Slide 46: Bouygues Telecom: key figures
BOUYGUES TELECOM: key figures € million 2005 2006 Change Sales 4,447 4,539 +2% Net sales from network 4,144 4,198 +1% EBITDA 1,324 1,229 -7% EBITDA / net sales from network 31.9% 29.3% -2.6 pts Current operating profit 653 581 -11% Current operating margin (on net sales from network) 15.8% 13.8% - 2
Slide 47: Bouygues Telecom: financial structure
BOUYGUES TELECOM: financial structure € million 2005 2006 Change Shareholders' equity (1) 2,132 2,214 +4% Net cash (1) (441) 66 +€507m (1) End of period Cash flow 1,261 1,214 -4% - Cost of net debt -26 -9 Div. by 3 - Income tax (2) -220 -197 -10% - Net operating investments -584 -613 +5% Free cash f
Slide 48: Bouygues Telecom: sales
BOUYGUES TELECOM: sales Quarterly growth of net sales from network of the three French mobile operators in 2006 +4.0% +3.7% Orange SFR Bouygues Telecom +3.0% +2.1% +2.0% +1.6% +1.4% * +1.3% +1.0% +0.6% +0.3% +0.2% +0.2% +0.1% +0.0% Q1 Q2 -0.1% Q3 Q4 -1.0% -0.9% -2.0% * Estimate Bouygues Telecom's st
Slide 49: Bouygues Telecom: customer mix
BOUYGUES TELECOM: customer mix Customer breakdown at 31 December 2006 Prepaid Contract 28.4% 71.6% 36.8% 63.2% 35.0% 65.0% Share of contract customers at Bouygues Telecom 71.6% 68.4% 66.1% 64.4% 62% 2002 2003 2004 2005 2006 The best mix on the market 49
Slide 50: Bouygues Telecom: commercial indicators
BOUYGUES TELECOM: commercial indicators Total customer Contract Prepaid (Metropolitan France) base 2005 2006 2005 2006 2005 2006 SIM cards (thousands) 5,454 6,248 2,517 2,474 7,971 8,722 ARPU (€ / month) 57 52 ns ns 45 42 SAC (€ / customer) 235 241 28 24 151 160 Voice usage (min. / month) 346 347 84
Slide 51: Bouygues Telecom: commercial performance in 2006 (1/3)
BOUYGUES TELECOM: commercial performance in 2006 (1/3) Contracts 2006: an offensive on the 2hrs+ contract segment Record market share of net additions in 2006 (27% in metropolitan France) Control over subscriber acquisition costs, which remained stable Churn rate reduced from 1.34% to 1.27%
Slide 52: Bouygues Telecom: commercial performance in 2006 (2/3)
BOUYGUES TELECOM: commercial performance in 2006 (2/3) Universal Mobile A resounding commercial success: over 680,000 customers at end-2006, 85% of whom were new customers Constantly enhanced offer 9 i-mode services with Windows Live Messenger and unlimited email 9 unlimited text messages "after
Slide 53: Bouygues Telecom: commercial performance in 2006 (3/3)
BOUYGUES TELECOM: commercial performance in 2006 (3/3) Business services Higher market share in the voice contract market 9 17% increase in gross additions 9 improved churn rate Strong growth in sales of data offers, underpinned by nationwide EDGE coverage 9 high-speed PCMCIA cards (x 2.5) 9 cor
Slide 54: Bouygues Telecom: consumer strategy in 2007
BOUYGUES TELECOM: consumer strategy in 2007 Take advantage of market developments beneficial to the third operator 9 portability is an opportunity to make the mobile market more flexible 9 thanks to its innovative offers, Bouygues Telecom aims to continue to attract top-end customers and young peo
Slide 55: Bouygues Telecom: business service strategy in 2007
BOUYGUES TELECOM: business service strategy in 2007 Position the company on market segments that offer growth opportunities Professionals and very small enterprises: adapt the positioning of consumer offers (unlimited calling, usage while on the move) to this market segment SMEs and large compan
Slide 56: Bouygues Telecom: mobile TV
BOUYGUES TELECOM: mobile TV The French audiovisual law on personal mobile television, which was passed on 22 February 2007, provides for 9 a pay service 9 allocation of frequencies to TV channels by the French audiovisual authority (CSA) Æ the CSA has launched a consultation to allocate frequencie
Slide 57: Bouygues Telecom: contactless applications
BOUYGUES TELECOM: contactless applications Transport: mobile phones to recharge and validate transport cards 9 Paris region (RATP mass transit authority and SNCF railways): customer trial completed in January 2007 Æ the service was rated "practical, fast and easy to use"; 85% of customers were sat
Slide 58: Bouygues Telecom: market growth
BOUYGUES TELECOM: market growth The "SIM penetration rate" is not a relevant criterion Mobile voice Penetration minutes per Sales / outgoing rate inhabitant per minutes month Sept. 2006 France 121 0.25 80% Germany 53 0.40 96% UK 106 0.33 113% Italy 114 0.27 130% Spain 131 0.25 112% Source: Strateg
Slide 59: Bouygues Telecom: call termination rates
BOUYGUES TELECOM: call termination rates Voice in € cents 2004 2005 2006 2007 Rates to Bouygues Telecom 18.39 14.79 11.24 9.24 % change -17.4% -19.6% -24.0% -17.8% Rates to Orange / SFR 14.94 12.5 9.5 7.5 % change -12.5% -16.3% -24.0% -21.1% Differential 3.45 2.29 1.74 1.74 2005 2006 SMS in € cents
Slide 60: Bouygues Telecom: outlook
BOUYGUES TELECOM: outlook 2007 Sales target (€ million) 2006 Change target Net sales from network 4,198 4,325 +3% Total sales 4,539 4,630 +2% 60
Slide 61: Financial Statements
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK AND OBJECTIVES 61
Slide 62: Alstom: consolidated in the Group financial statements
ALSTOM: consolidated in the Group financial statements Bouygues' 25.1% stake in Alstom is consolidated under the equity method Alstom's financial year runs from 1 April to 31 March. The profit consolidated by Bouygues is based on figures released by Alstom, with a one-quarter lag Æ At 31 Decembe
Slide 63: Bouygues: condensed consolidated income statement
BOUYGUES: condensed consolidated income statement € million 2005 2006 Change Sales 23,983 26,408 +10% Current operating profit 1,849 1,921 +4% Operating profit 1,745 1,877 +8% Cost of net debt (186) (200) +8% Income tax expense (570) (555) -3% Net profit from continuing operations 1,022 1,218 +19% N
Slide 64: Contribution of business areas to Group sales
Contribution of business areas to Group sales € million 2005 2006 Change Bouygues Construction 5,815 6,680 +15% Bouygues Immobilier 1,557 1,608 +3% Colas 9,424 10,682 +13% TF1 2,489 2,639 +6% Bouygues Telecom 4,435 4,525 +2% Holding company and other 263 274 ns TOTAL 23,983 26,408 +10% of which Fran
Slide 65: Contribution of business areas to Group EBITDA
Contribution of business areas to Group EBITDA € million 2005 2006 Change Bouygues Construction 444 430 -€14m Bouygues Immobilier 177 161 -€16m Colas 828 976 +€148m TF1 457 412 -€45m Bouygues Telecom 1,324 1,229 -€95m * Holding company and other 38 71 +€33m TOTAL 3,268 3,279 +€11m EBITDA = current o
Slide 66: Contribution of business areas to Group operating profit
Contribution of business areas to Group operating profit € million 2005 2006 Change Bouygues Construction 238 262 +€24m Bouygues Immobilier 156 176 +€20m Colas 389 528 +€139m TF1 353 301 -€52m Bouygues Telecom 595 581 -€14m Holding company and other 14 29 +€15m TOTAL 1,745 1,877 +€132m Excluding con
Slide 67: Contribution of business areas to Group net profit
Contribution of business areas to Group net profit Group share € million 2005 2006 Change Bouygues Construction 176 210 +€34m Bouygues Immobilier 90 107 +€17m Colas 296 382 +€86m TF1 101 194 +€93m Bouygues Telecom 301 440 +€139m Alstom (6 months) - 56 ns Holding company and other (132) (143) -€11m
Slide 68: Bouygues: return on capital employed
BOUYGUES: return on capital employed (1) At business level 2004 2005 2006 Bouygues Construction (2) +++ +++ +++ Bouygues Immobilier (3) +++ +++ +++ Colas 26.8% 34.6% 33.5% TF1 17.9% 15.5% 13.4% Bouygues Telecom 12.3% 15.4% 16.1% At Group level Bouygues 12.7% 16.5% 14.8% (1) Current operating profit
Slide 69: Contribution of business areas to Group cash flow
Contribution of business areas to Group cash flow € million 2005 * 2006 Change Bouygues Construction 411 437 +€26m Bouygues Immobilier 161 163 +€2m Colas 781 942 +€161m TF1 453 380 -€73m Bouygues Telecom 1,261 1,214 -€47m Holding company and other 23 19 -€4m TOTAL 3,090 3,155 +€65m * Including TPS a
Slide 70: Contribution of business areas to Group net investments
Contribution of business areas to Group net investments Net operating investments € million 2005 * 2006 Change Bouygues Construction 56 206 +€150m Bouygues Immobilier 4 4 = Colas 411 527 +€116m TF1 155 78 -€77m Bouygues Telecom 584 613 +€29m Holding company and other 19 178 +€159m TOTAL 1,229 1,60
Slide 71: Contribution of business areas to Group free cash flow
Contribution of business areas to Group free cash flow € million 2005 * 2006 Change Bouygues Construction 273 163 -€110m Bouygues Immobilier 105 102 -€3m Colas 239 232 -€7m TF1 170 191 +€21m Bouygues Telecom 431 395 -€36m Holding company and other (114) (294) -€180m TOTAL 1,104 789 -€315m Free cash
Slide 72: Bouygues: condensed consolidated balance sheet
BOUYGUES: condensed consolidated balance sheet At 31 December 2005 €m At 31 December 2006 24,598 24,598 29,820 29 820 5,561 6,493 11,444 15,140 6,075 8,351 12,590 12,612 14,680 14,976 564 350 Assets Liabilities Assets Liabilities Non-current assets Shareholders’ equity Current assets Non-current lia
Slide 73: Bouygues: change in cash position in 2006
BOUYGUES: change in cash position in 2006 Net cash at Net cash at 31/12/2006 Net cash at 31/12/2005 Excl. Alstom 31/12/2006 (1,652) Operation (2,352) +1,429 Bouygues Confiance 3 capital increase (2006 share) Impact of -181 scope of Acquisitions and -220 consolidation disposals Share +81 +54 buybacks
Slide 74: Bouygues: financing policy
BOUYGUES: financing policy Available cash: €7.7 billion 8,000 7,000 Debt repayment schedule 6,000 5,000 Undrawn MLT 4,000 Credit lines 3,000 Option to buy 6.5% of Bouygues Telecom 2,000 Cash 1,000 0 Liquidity 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ... 2020 ... 2026 Very substantial l
Slide 75: Bouygues Group: net cash by business area
BOUYGUES GROUP: net cash by business area € million 2005 (1) 2006 (2) Change Bouygues Construction 1,874 2,059 +€185m Bouygues Immobilier 150 26 -€124m Colas 415 409 -€6m TF1 (351) (379) -€28m Bouygues Telecom (441) 66 +€507m Holding company and other (3,999) (6,357) -€2,358m TOTAL (2,352) (4,176) -
Slide 76: Outlook and Objectives
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK AND OBJECTIVES 76
Slide 77: Bouygues: 2007 sales targets
BOUYGUES: 2007 sales targets Contribution of business 2007 2006 Change areas in € million target Bouygues Construction 6,680 7,500 +12% Bouygues Immobilier 1,608 2,000 +24% Colas 10,682 11,350 +6% TF1 2,639 2,860 +8% Bouygues Telecom 4,525 4,620 +2% Holding company and other 274 270 ns TOTAL 26,408
Slide 78: Bouygues: outlook
BOUYGUES: outlook All Group businesses hold leading positions on buoyant markets We have good visibility of our activities Our cooperation with Alstom is promising The Group's outlook is good 78
Slide 79: Bouygues: strategic objectives
BOUYGUES: strategic objectives Successfully hire nearly 20,000 new employees in 2007, while preserving our strong corporate culture Pursue the internal and external growth of our businesses Develop our sustainable development policy in all our businesses Increase shareholder returns Succes
Slide 80: Hervé Le Bouc
Hervé Le Bouc 56, graduate of École Spéciale des Travaux Publics engineering school Joined the Bouygues group in 1977 9 1977-1989: Screg - works engineer Æ branch director 9 1989-2001: Bouygues Offshore - regional director Æ Chairman and CEO, then Chairman 9 2002-2007: Saur - CEO, then Chairman
Slide 81: Nonce Paolini
Nonce Paolini 57, Master of Arts, graduate of the Paris Institute of Political Studies 1972-1988: EDF-GDF - operational posts, then positions in support functions and corporate communications Joined the Bouygues group in 1988 9 1988-1993: Bouygues group - HR development director, then corporat
Slide 82: Emmanuel Forest
Emmanuel Forest 56, graduate of École Polytechnique and ENA 1981-1989: French Education and Foreign Affairs Ministries Joined the Bouygues group in 1989 9 1989-1994: Bouygues Construction - corporate secretary of Bouygues Bâtiment International 9 1994-2007: Bouygues Telecom - corporate secreta
Slide 83: Olivier Roussat
Olivier Roussat 43, graduate of INSA, Lyon 1988-1995: IBM - various positions in data network services, service delivery and pre-sales Joined the Bouygues group in 1995 9 1995-2007: Bouygues Telecom - network and information systems manager, then Senior Vice-President 9 February 2007: Deputy C
Slide 84: Bouygues: financial calendar
BOUYGUES: financial calendar 26 April 2007 Annual Meeting of Shareholders 3 May 2007 Dividend payment for 2006 14 May 2007 First-quarter 2007 sales 6 June 2007 First-quarter 2007 earnings 9 August 2007 First-half 2007 sales 31 August 2007 First-half 2007 earnings 14 November 2007 9-mon
Slide 85: Slide 85