Bouygues Sa · EURONEXT:EN
Bouygues Sa — Investor Day (October 2015)
13 slides from Bouygues Sa's investor day presentation, Oct 6, 2015
Slide 1: Forward-looking statements disclaimer
06/10/2015 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
Slide 2: Business model and financial objectives
06/10/2015 Business model and financial objectives Eric Haentjens EVP Finance, HR & Strategy 3 Bouygues Telecom’s trajectory leads to the most enviable quadrant of both sales and EBITDA growth Sales and EBITDA growth of selected telecom operatorsa (2014 vs 2010) Sales growth (%) 110 Free 100 90 NUM
Slide 3: Agenda
06/10/2015 AGENDA Targeting above 10% sales from network growth in 2017 vs 2014 Pursuing cost savings… reaching 25% EBITDA margin in 2017 and targeting 35% longer term Developing a future proof business model Targeting above 10% sales from network growth in 2017 vs 2014 Pursuing cost savings… reachi
Slide 4: Growing mobile value customer base
06/10/2015 Growing mobile value customer base Plan customer base excluding MtoM (‘000) 8,889 Growth 4G launch Profit 8,575 Future proof New positioning & simplified offers 7 Confident with 2017 target to add 1 million mobile customers Mobile customers cumulated net growth (‘000) 1,000 Growth Profit
Slide 5: N°1 in net growth on the fixed broadband market
06/10/2015 N°1 in net growth on the fixed broadband market for 7 quarters in a row Fixed customer base growth (‘000) 2,602 Growth Profit Bbox Miami €25.99 Future proof 1,891 Bbox €19.99 9 Confident with 2017 target to add 1 million fixed customers Fixed broadband customers cumulated net growth (‘000
Slide 6: 2015-2017: reversing ARPU trends
06/10/2015 2015-2017: reversing ARPU trends Mobile ARPUa Mobile ARPUa & Fixed ARPUb Trough in H1 2015 40 (€) Stabilization followed by growth Growth taking into account 35 Sim Only and BtoB increasing in the Profit mix 30 Future proof Data monetization 25 Fixed ARPUb 20 Stabilization driven by
Slide 7: Ready to deliver sustainable volume and value growth after 2017
06/10/2015 Ready to deliver sustainable volume and value growth after 2017 Mobile Fixed Other opportunities Growth Customer base ↗↗ Customer base ↗↗ BtoB acceleration - Reinforced customer - Market challenger - Opportunity on Profit loyalty - Extended own fixed and hosted - Strengthened brand
Slide 8: Delivering and outstripping savings targets
06/10/2015 Delivering and outstripping savings targets (1/2) Operating costs trendb €600m savings in 2013 2016 Growth 2011 - 2013 mobile costsa, twice the initial objective Profit Future proof €300m savings 2013 - 2016 announced -€300m (a) Operating costs excluding interconnection costs 15 (b) O
Slide 9: Transforming the organization to regain agility and cost efficiency
06/10/2015 Transforming the organization to regain agility and cost efficiency 2015 achievements One brand: Bouygues Telecom Simplification of brands and offering From > 1,000 mobile plans to 14 Growth Profit • End of indirect distribution (Auchan, Carrefour, Strategic refocus on own Tel&Com, Extens
Slide 10: Towards 35% EBITDA margin
06/10/2015 Targeting additional opex optimization opportunities from 2017 onwards Mobile business Fixed business Growth DSL and FTTH own network RAN sharing agreement extension Profit Future proof Digitalization phase 2 Procurement IT savings 19 Towards 35% EBITDA margin EBITDA margina trend 35% Gro
Slide 11: Entering a virtuous growth model
06/10/2015 Targeting above 10% sales from network growth in 2017 vs 2014 Pursuing cost savings… reaching 25% EBITDA margin in 2017 and targeting 35% longer term Developing a future proof business model Entering a virtuous growth model Operating costsa per customer (€/customer/month) Growth Strong
Slide 12: Smart capex management
06/10/2015 Smart capex management Mobile network: already optimized, capex and opex hardly sensitive to installed base and traffic growth - Network already renewed in high density areas Growth - RAN sharing with NC-SFR in low density areas Profit - Foreseen capacity and speed upgrades (4G+, etc.)
Slide 13: Conclusion: a strong improvement in sales and profitability
06/10/2015 Access to national FTTH coverage whilst ensuring a scalable investment model Advantages for Less Dense Area (ZMD): Growth gradual co-investment Bouygues Telecom steps / rental - Scalable access to FTTH Profit Very Dense Area (ZTD): driven by customer horizontal investment growth ambitio