Bouygues Sa · EURONEXT:EN
Bouygues Sa — 9M 2018 Earnings Presentation
47 slides from Bouygues Sa's earnings presentation, Nov 15, 2018
Slide 1: Nine-Month 2018 Results Presentation
NINE-MONTH 2018 RESULTS 15 NOVEMBER 2018 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 ANNEX 3
Slide 4: 9M 2018 Highlights
9M 2018 HIGHLIGHTS VERY GOOD COMMERCIAL PERFORMANCE IN ALL BUSINESSES Net-adds acceleration in both Mobile and FTTH at Bouygues Telecom in Q3 Construction businesses’ backlog at a record level at end-September Increase in advertising revenue year-on-year at TF1 STRONG RESULTS AT BOUYGUES T
Slide 5: Group Key Figures
GROUP KEY FIGURES Sales up 6% year-on-year driven by all businesses 9M 2017 €m 9M 2018 Change restated 9-month current operating profit of €820m reflects Sales 23,752 25,219 +6%a > Significant improvement at Bouygues Telecom and TF1 o/w France 14,911 15,646 +5% o/w international 8,841 9,573 +8%
Slide 6: Change in Net Debt Position in 9M 2018 (1/2)
CHANGE IN NET DEBT POSITION IN 9M 2018 (1/2) €m Net debt at 31/12/2017 Net debt at 30/09/2018 (1,917) (5,498) -1,557 +9 Acquisitions/ Otherb -680 disposalsa -1,353 Dividends Operations 2017 (1,866)c +24d +147e -606 -1,406 (3,707) Restated (a) Including the acquisition of Alpiq Engineering Services b
Slide 7: Change in Net Debt Position in 9M 2018 (2/2)
CHANGE IN NET DEBT POSITION IN 9M 2018 (2/2) €m Breakdown of operations Net cash flowa Net capex Change in operating WCR and otherb -1,179 +1,648 -1,353 -1,822 9M 2017 Restated +1,525 -963 -1,968 -1,406 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR rela
Slide 8: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 8
Slide 9: Construction Businesses
CONSTRUCTION BUSINESSES Rehabilitation of old Bern post office – Switzerland Sensations – Strasbourg - France Courtyard of Saint Aubin’s castle - France 9
Slide 10: Backlog at a Record Level
Backloga (€b) BACKLOG AT A RECORD LEVEL +13%b 33.8 BACKLOG AT END-SEPTEMBER 2018: €33.8B 2.6 29.9 -1% Up 13% year-on-year and up 15% at constant exchange rates 2.6 8.7 +13% 59% of the backlog at Bouygues Construction and Colas 7.7 in international markets (vs 56% at end-September 2017) Incre
Slide 11: Good Commercial Momentum in France
GOOD COMMERCIAL MOMENTUM IN FRANCE EXAMPLE OF CONTRACTS WON IN Q3 2018 Backloga in France (€b) +5% 15.2 14.4 +1% 2.4 2.4 +3% 3.4 3.3 Track and catenary on Line 15 South-East CO’Met project (Concert hall, exhibition - Grand Paris (€108m) center and sport hall) - Orléans (€107m) +8% 8.7 9.4 End-Sept 2
Slide 12: Upbeat International Markets
UPBEAT INTERNATIONAL MARKETS EXAMPLE OF CONTRACTS WON IN Q3 2018 International backloga (€b) +20%b 18.5 -28% 0.1 15.5 0.2 5.3 +21% 4.4 University of Cambridge physics laboratory – Cambridge (€281m) Design and construction of the Lille 13.1c +20% metropolitan authority 10.9 offices (€154m) End-Sept 2
Slide 13: Key Figures in the Construction Businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES Increase in profitability at Bouygues Immobilier in 9M 2018, excluding Nextdoor one-off impact in Q3 2017 9M 2017 9M €m Change restated 2018 > Current operating margin: 6.5%, up 0.9pts YoY Sales 18,628 19,736 +6%a Strong performance in building and civi
Slide 14: Bouygues Telecom: No. 1 mobile network in rural areas
N°I EN ZONE RURALE q selon l’enquéte ARCEP 2018. Bouygues’Telecom; reseau mobile n°1 en France dans les zones rurales
Slide 15: Very Good Performance in Mobile
VERY GOOD PERFORMANCE IN MOBILE Mobile plan customer base excluding MtoMa (millions of customers) 15.8 MILLION MOBILE CUSTOMERS AT END-SEPTEMBER 10.8 2018 +1,377k customers in 9M 2018 10.2 +475k customers in Q3 2018 9.6 OF WHICH 10.8 MILLION MOBILE PLAN CUSTOMERS 9.0 EXCLUDING MTOMa +452k
Slide 16: A High Quality Mobile Network
A HIGH QUALITY MOBILE NETWORK EXCELLENT RESULTS IN ARCEP 2018 SURVEY Bouygues Telecom #1 in rural areasa in Voice, SMS and Mobile Broadband Bouygues Telecom Bouygues Telecom Bouygues Telecom Bouygues Telecom Bouygues Telecom #1 in voice calls #1 in text messages #1 in web surfing #1 in speed #1
Slide 17: Growth Acceleration in FTTH
GROWTH ACCELERATION IN FTTHa Fixed customer base (‘000 customers) 3.6 MILLION FIXED CUSTOMERS AT END-SEPTEMBER and share of FTTHa customers 2018 Total % FTTH 3.6 3.3 +162k customers in 9M 2018 3.0 2.7 +71k customers in Q3 2018 2.3 12.9% 6.3% 467K FTTH CUSTOMERS AT END-SEPTEMBER 2018 3.0% +
Slide 18: Sharp Increase in Profitability
SHARP INCREASE IN PROFITABILITY SALES FROM SERVICES UP 5% YEAR-ON-YEAR IN A HIGHLY €m 9M 2017 9M 2018 Change COMPETITIVE MARKET restated Sales 3,695 3,934 +6.5%a Positive impact of Q2 2018 launch of new offers in Fixed o/w sales from services 3,024 3,172 +5% and Mobile o/w sales billed to custom
Slide 19: BtoB Market, a Growth Driver for Bouygues Telecom
BTOB MARKET, A GROWTH DRIVER FOR BOUYGUES TELECOM BOUYGUES TELECOM ENTREPRISES, 3RD BTOB TELECOM OPERATOR IN FRANCE Over 20% Mobile market share in France with a presence in 35% of large companies and 10% of SME A growing market share in Fixed: around 3%, +1pt in one year Full range of Mobil
Slide 20: Bouygues Telecom Opens Exclusive Negotiations with Keyyo Communications
BOUYGUES TELECOM OPENS EXCLUSIVE NEGOTIATIONS WITH KEYYO COMMUNICATIONS TO STRENGTHEN ITS POSITION IN SME KEYYO COMMUNICATIONS, A TELECOM OPERATOR TARGETING EXCLUSIVELY SME AND MID-SIZED BUSINESSES A well known brand with an excellent customer satisfaction level Expert in marketing and advance
Slide 21: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 21
Slide 22: Condensed Consolidated Income Statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) 9M 2017 €m 9M 2018 Change restated Sales 23,752 25,219 +6%a Current operating profit 933 820 -€113m Other operating income and expenses 82b 198c +€116m Operating profit 1,015 1,018 +€3m Cost of net debt (170) (163) +€7m o/w financial income 17 21 +€4m o/
Slide 23: Condensed Consolidated Income Statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) 9M 2017 €m 9M 2018 Change restated Income tax (239) (266) -€27m Share of net profit of joint ventures and associates 151 253 +€102m o/w Alstom 105 230 +€125m Net profit from continuing operations 769 867 +€98m Net profit attributable to non-controlling i
Slide 24: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 24
Slide 25: Outlook
OUTLOOK THE GROUP EXPECTS STABLE OR SLIGHTLY LOWER CURRENT OPERATING PROFIT IN 2018 VS 2017 In the construction businesses, current operating profita and current operating margina should decline in 2018 compared to 2017 (by a few dozen basis points for current operating margin) The Group remains
Slide 26: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 26
Slide 27: Items Impacting 2018 Results
ANNEX ITEMS IMPACTING 2018 RESULTS REMINDER: APPLICATION OF IFRS 9 AND IFRS 15 FROM 1 JANUARY 2018 The 2017 figures have been restated by business segment; the quarterly impacts on the 2017 results are detailed in the Annex The financial statements for the first half of 2018/2019 of Alstom wer
Slide 28: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Order intakea (€b) Backlog by geographic region (at end-Sept 2018) International 6% 10.2 +26% 25% 3% 8.1 5.8 +48% 3.9 42% 4.2 4.4 +5% 24% End-Sept 2017 End-Sept 2018 France Asia and Middle East Europe (excl. France) Americas Africa (a) Contracts are
Slide 29: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€b) Commercial property -9% 1.9 1.7 0.2 0.2 +12% 1.7 -11% 1.5 9M 2017 9M 2018 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial property); Sways – Issy les Moulineaux – Fr
Slide 30: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS 9M 2017 Backlog (€b) €m 9M 2018 Change restated +13%a Sales 8,617 9,602 +11%a o/w France (incl. French overseas 4,470 4,691 +5% 8.7 territories) 7.7 o/w international 4,147 4,911 +18% +3% 3.4 Current operating profit 179 155 -€24m 3.3 Current operating margin 2.1% 1.6% -0.
Slide 31: A Strong and Selective International Presence
ANNEX A STRONG AND SELECTIVE INTERNATIONAL PRESENCE BOUYGUES OPERATES IN GROWING COUNTRIES WITH A LOW-RISK PROFILE NORTHERN AND CENTRAL EUROPE NORTH AMERICA United Kingdom: +1.4% Switzerland: +2.3% RUSSIA: +1.7% United States: +2.9% Canada: +2.1% 0% 41% 25% SOUTHERN EUROPE 1% Spain: +2.8% 1% AFRICA
Slide 32: Key Indicators at Bouygues Telecom
ANNEX KEY INDICATORSQ1restated AT 2017 BOUYGUES Q2 2017 restated TELECOM Q3 2017 restated Q4 2017 restated 2017 restated Q1 2018 Q2 2018 Q3 2018 Sales from mobile services 705 713 750 737 2,904 719 734 779 (€m) Sales from fixed services (€m) 278 283 296 309 1,166 312 309 319 Mobile customer base 13,
Slide 33: FTTH Premises Marketed (Millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Bouygues Telecom at end- Bouygues Telecom expected Total premises on the marketc September 2018 at end-2019 Very Dense 6.4 Area 2.7 4.5 Medium Dense 13.2 Area/AMIId 6.5 35.5 3.4 6.3 12 Public Initiative 15.9 Network (PIN) Aread 0.2 1 (a) Fiber-To-The-Home –
Slide 34: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & 9M 2017 €m 9M 2018 Change constant restated fxa Construction businessesb 18,628 19,736 +6% +4% o/w Bouygues Construction 8,521 8,589 +1% +3% o/w Bouygues Immobilier 1,695 1,716 +1% +3% o/w Colas 8,617 9,602 +11% +5% TF1 1,474 1,576 +7% +2% Bouygues Telecom 3,6
Slide 35: Contribution to Group EBITDA by Sector of Activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 850 715 -€135m o/w Bouygues Construction 317 222 -€95m o/w Bouygues Immobilier 110 85 -€25m o/w Colas 423 408 -€15m TF1 257 299 +€42m Bouygues Telecom 808 931 +€123m Holding company a
Slide 36: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 579 406 -€173m o/w Bouygues Construction 277 139 -€138m o/w Bouygues Immobilier 123 112 -€11m o/w Colas 179 155 -€24m TF1 116 124 +€8m Bouygues Telecom 263 314 +€51m
Slide 37: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 574 406 -€168m o/w Bouygues Construction 277 139 -€138m o/w Bouygues Immobilier 123 112 -€11m o/w Colas 174 155 -€19m TF1 99 108 +€9m Bouygues Telecom 368 528 +€160m Holding
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 2017 €m 9M 2018 Change restated Construction businesses 457 278 -€179m o/w Bouygues Construction 233 109 -€124m o/w Bouygues Immobilier 70 62 -€8m o/w Colas 154 107 -€47m TF1 37 36 -€1m Bouygues Telecom 216 311 +€95m
Slide 39: Condensed Consolidated Balance Sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-Sept €m 2017 Change 2018 restated Non-current assets 17,568 19,194 +€1,626m Current assets 18,697 18,808 +€111m Held-for-sale assets and operations 38 10 -€28m TOTAL ASSETS 36,303 38,012 +€1,709m Shareholders' equity 10,416 10,383 -€33m Non-curr
Slide 40: Contribution to Group Net Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 794 641 -€153m o/w Bouygues Construction 292 160 -€132m o/w Bouygues Immobilier 68 62 -€6m o/w Colas 434 419 -€15m TF1 208 252 +€44m Bouygues Telecom 610 801 +€191m Holding com
Slide 41: Contribution to Net Capital Expenditure by Sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 270 314 +€44m o/w Bouygues Construction 65 97 +€32m o/w Bouygues Immobilier 12 6 -€6m o/w Colas 193 211 +€18m TF1 154 145 -€9m Bouygues Telecom 534 714 +€180m Holding compan
Slide 42: Contribution to Group Free Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY 9M 2017 €m 9M 2018 Change restated Construction businesses 524 327 -€197m o/w Bouygues Construction 227 63 -€164m o/w Bouygues Immobilier 56 56 €0m o/w Colas 241 208 -€33m TF1 54 107 +€53m Bouygues Telecom 76 87 +€11m Holding company
Slide 43: Net Debt / Net Surplus Cash
ANNEX NET DEBT (-)/NET SURPLUS CASH (+) End-Dec End-Sept €m 2017 Change 2018 restated Bouygues Construction 3,409 2,356 -€1,053m Bouygues Immobilier (86) (458) -€372m Colas 433 (1,293) -€1,726m TF1 257 (51) -€308m Bouygues Telecom (976) (1,173) -€197m Holding company and other (4,954) (4,879) +€75m
Slide 44: Debt Maturity Schedule at End-September 2018
ANNEX DEBT MATURITY SCHEDULE AT END-SEPTEMBER 2018 Available cash: €7.9b €11b €10b €9b €8b €7b €6b Undrawn MLT facilities €5b €6.3b €4b €3b €2b €1b Cash €1.6b €0b Liquidity 44
Slide 45: Impact of IFRS 15 on 2017 Financial Statements
ANNEX IMPACT OF IFRS 15 ON 2017 FINANCIAL STATEMENTS o/w o/w o/w €m 2017 reported 2017 restated Bouygues Immobilier Bouygues Telecom TF1 Sales 32,904 +37 -26 +7 32,923 Current operating profit 1,420 -5 -9 0 1,406 Operating profit 1,533 -5 -9 0 1,519 Income tax (303) 0 +4 0 (299) Share of net profit
Slide 46: Impact of IFRS 15 on 2017 Interim Results
ANNEX IMPACT OF IFRS 15 ON 2017 INTERIM RESULTS Par €m trimestre Q1 Q2 Q3 Q4 Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Sales 6,847 -10 6,837 8,315 -44 8,271 8,666 -22 8,644 9,076 +95 9,171 o/w Bouygues Telecom 1,222 -12 1,210 1,212 -16 1,196
Slide 47: Glossary
ANNEX GLOSSARY 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 and data)