Bouygues Sa · EURONEXT:EN
Bouygues Sa — FY2014 Earnings Presentation
73 slides from Bouygues Sa's earnings presentation, Feb 25, 2015
Slide 1: Full-year 2014 results presentation
Full-year 2014 results presentation Paris – 32 Hoche 25 February 2015 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE
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: Reminder: change of accounting methods in 2014
ANNEX Reminder: change of accounting methods in 2014 As announced The figures published in 2013 have been restated for IFRS 11 Following the sale of a controlling stake to Discovery Communications on 30 May 2014, TF1's remaining 49% interest in Eurosport International is consolidated by the equi
Slide 4: Key figures, 2014 overview, financial statements, outlook
KEY FIGURES 2014 OVERVIEW FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 4
Slide 5: Group key figures
Group key figures €m 2013 restated 2014 Change Sales 33,121 33,138 =a Current operating profit 1,319 888 -€431m Current operating margin 4.0% 2.7% -1.3 pts Operating profit 1,228b 1,133c -€95m Net profit/(loss) attributable to the Group (757) 807d nm Net profit attributable to the Group excl. except
Slide 6: Financial results of the construction businesses
Financial results of the construction businesses €m 2013 restated 2014 Change Sales 26,061 26,515 +2%a o/w France 15,457 14,870 -4% o/w international 10,604 11,645 +10% Current operating profit 1,005 841 -€164m Current operating margin 3.9% 3.2% -0.7 pts Operating profit 994b 774b -€220m Sales dri
Slide 7: Financial results of TF1
Financial results of TF1 Group audience sharec (%) 28.9 28.7 0.6 €m 2013 restated 2014 Change 0.9 2.1 1.8 Sales 2,460 2,243 -9%a 3.4 3.1 HD1 o/w group advertising 1,676 1,606 -4% NT1 TMC Current operating profit 223 143 -€80m 22.8 22.9 TF1 Current operating margin 9.1% 6.4% -2.7 pts Operating profit
Slide 8: Financial results of Bouygues Telecom
Financial results of Bouygues Telecom €m 2013 restated 2014 Change Sales 4,664 4,432 -5%a Sales from network 4,182 3,869 -7% EBITDA 880 694 -€186m EBITDA/sales from network 21.0% 17.9% -3.1 pts Current operating profit/(loss) 125 (65) -€190m Operating profit/(loss) 45 (62)b -€107m EBITDA minus Capex
Slide 9: Key figures, 2014 overview, financial statements, outlook
KEY FIGURES 2014 OVERVIEW FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 9
Slide 10: 2014 overview
2014 overview The Bouygues group has strengthened in 2014 The construction businesses continued to show strong momentum in their international activities, their competitiveness thanks to differentiated know-how and a great capability to adapt in order to cope with a decline in their markets in F
Slide 11: 1. Stronger construction businesses
1. Stronger construction businesses 11
Slide 12: Commercial performance of the construction businesses
Commercial performance of the construction businesses Order book (€m) Order book at a high level: €27.6bn at end-December 2014, stable year-on-year and up 22% Colas Bouygues Immobilier Bouygues Construction over 4 years +22% 27,615 26,808 27,530 24,806 Bouygues continued to show 22,575 6,704 7,0
Slide 13: Strong momentum in international activity (1/2)
Strong momentum in international activity (1/2) Sales generated by Bouygues Construction and Colas in 2014 (and change vs 2013) Europe (excl. France): €4.8bn (+16%) Sales on international Americas: France: markets accounted for €12.2bn (-7%) €3.1bn (+8%) 49% of sales at Bouygues Construction Asia, O
Slide 14: Strong momentum in international activity (2/2)
Strong momentum in international activity (2/2) Main international orders taken in 2014 (rounded up/down) Switzerland Facility management services (5 years) at Crédit Suisse Canada offices (€90m) Highway 63 in Ankenbüel residential complex Alberta (€110m) at Zumikon (€60m) UK US Urban regeneration o
Slide 15: Continued international momentum at the start of 2015
Continued international momentum at the start of 2015 NorthConnex project in Sydney, Australia Design and construction of a 9-km twin-tube motorway tunnel Customer: transport operator Transurban Contract as part of a consortium with Lend Lease Contract worth ~€900m for Bouygues Constructio
Slide 16: Competitiveness: eco-neighbourhoods (1/2)
Competitiveness of the construction businesses: eco-neighbourhoods (1/2) Hikari Ginko Noës eco-village Lyon Bordeaux Val de Reuil The first smart, positive-energy Environment-friendly and an Eco-construction and maintenance to mixed-use development, a pioneering project in Europe exceptional living
Slide 17: Competitiveness: eco-neighbourhoods (2/2)
Competitiveness of the construction businesses: eco-neighbourhoods (2/2) Eikenøtt Casa Anfa Brickell CityCentre Gland (Switzerland) Casablanca (Morocco) Miami (US) Combining economic activity Encouraging energy efficiency Using fewer resources and sustainability 500,000 m² including a shopping H
Slide 18: Competitiveness of the construction businesses: railways
Competitiveness of the construction businesses: railways Order book at Colas Rail An excellent year for Colas Rail International and French overseas territories Sales: €904m in 2014, up 18% year-on-year Mainland France +19% 1,536 Order book: €1.5bn at end-December 2014, up 19% year-on-year, 1,
Slide 19: Flexible cost structure and adaptation plans
Flexible cost structure and adaptation plans Highly variable cost structure of the construction businesses Cost structure driven by project Flexibility of personnel costs: sub-contracting, temporary workers, ability to hire employees for the duration of the contract For example: around 63% v
Slide 20: Key figures at Bouygues Construction
ANNEX Key figures at Bouygues Construction Order intakea (€m) Order book at end-December 2014 (€m) -2% Long-term order book (beyond Y+5) 11,976 11,839 11,581 10,946 For execution from Y+2 to Y+5 For execution in Y+1 +1% International 4,777 18,067 4,108 6,133 6,140 = 17,147 17,832 15,283 -4% France 2
Slide 21: Key figures at Bouygues Immobilier
ANNEX Key figures at Bouygues Immobilier Reservationsa (€m) Order book (€m) 3,200 Commercial property +20% 3,051 2,957 -8% Residential property 313 2,610 2,477 781 2,489 2,280 600 2,390 2,268 427 167 2,080 X3 64 342 603 581 236 2,738 2,216 2,357 2,183 2,048 2,310 2,419 +2% 1,687 1,844 1,886 End-Dec
Slide 22: Key figures at Colas
ANNEX Key figures at Colas Order book (€m) 2013 International and French overseas territories Mainland France €m 2014 Change restated 8,242 +1% Sales 8,064 12,845 12,396 -3%a 7,531 7,570 7,671 7,094 7,088 7,158 o/w France 7,388 6,582 -11% o/w international 5,457 5,814 +7% 3,537 4,449 3,629 4,727 +8%
Slide 23: 2. Bouygues Telecom's strategy is starting to bear fruit
2. Bouygues Telecom's strategy is starting to bear fruit 23
Slide 24: Bouygues Telecom's objectives
Bouygues Telecom's objectives Re-create value by developing mobile data uses Pursue growth in fixed broadband by making services and very-high-speed broadband accessible to as many people as possible Accelerate the company’s transformation while reasserting its positioning 24
Slide 25: Bouygues Telecom's 4G success
Bouygues Telecom's 4G success Bouygues Telecom's 4G network is attracting more and more customers... More than a quarter of Bouygues Telecom's mobile subscriber base uses 4G Bouygues Telecom's 4G subscribers account for 34% of 4G customers in France The business subscriber base is up 16% sin
Slide 26: An increase in mobile data consumption (1/3)
An increase in mobile data consumption (1/3) Bouygues Telecom customers are the leaders in terms of mobile data consumption 1GB of mobile data per month on average by the total subscriber base, which is twice the average national usagea (400MB at end-Q3 2014) 2.2GB of mobile data per month on
Slide 27: An increase in mobile data consumption (2/3)
An increase in mobile data consumption (2/3) Mobile data consumption will continue to grow, driven by % of 4G handsets in total handset salesa 1) Customers gradually switching 75% 84% 63% 68% to 4G handsets 61% 35% 84% of handset salesa at end-2014 Q3 2013 Q4 T3 2013 T4 2013 2013 Q1 2014 Q2 T1 2
Slide 28: An increase in mobile data consumption (3/3)
An increase in mobile data consumption (3/3) 3) The increase in speeds on Bouygues Telecom's network The 4G network covers 71% of the population with a maximum speed of 100 Mb/s The 4G+ network, operating in France's biggest towns and cities, offers speeds up to twice as fast as 4G Ultra-High-
Slide 29: The keys for successfully creating value in mobile
The keys for successfully creating value in mobile A modern, high-quality network Complete modernisation of the mobile network since 2011 6,499 4G base stationsa (active antennas) at end-January 2015 covering 71% of the population Frequencies that provide the fastest speeds on the market €
Slide 30: Focus on 4G mobile networks in France
ANNEX Focus on 4G mobile networks in France 4G roll-out by mobile operatorsa Number of 4G base stationsb 800 MHz 2600 MHz 1800 MHz Total 4G base in operation stations Orange 3,858 5,041 0 6,996 Bouygues Telecom 1,377 1,013 5,951 6,499 Numericable-SFR 2,720 914 0 2,962 Free Mobile 0 2,426 0 2,426 (a)
Slide 31: Average 3G/4G speeds measured by 4G Monitor
ANNEX Average 3G/4G speeds measured by 4G Monitor Connection tests carried out using the 4Gmark app 3G/4G downstream speeds as measured by 4Gmark in December 2014 (Mb/s) The increase in Bouygues Telecom speeds as measured by 4Gmark (Mb/s) 18.2 32.5 25.6 32.5 15.3 11.7 4G Monitor: the benchmark f
Slide 32: Continued growth in fixed broadband (1/2)
Continued growth in fixed broadband (1/2) The announcement of a real breakthrough in the fixed market on 20 December 2013… Innovative technologies and services €150 of savings per year for customers …became reality in 2014 Triple-play broadband offer for €19.99/month launched in March 2014
Slide 33: Continued growth in fixed broadband (2/2)
Continued growth in fixed broadband (2/2) Excellent commercial performances in 2014 Growth in fixed subscribers of 415,000 in 2014 No. 1 in terms of net growth on the fixed broadband market over 5 consecutive quartersa Net growth of the fixed broadband business (‘000) 104 110 100 102 72 40 45
Slide 34: Bouygues Telecom's fixed network
ANNEX Bouygues Telecom's fixed network Bouygues Telecom's directly-owned network can be accessed by 12.3 million households for broadband 1.4 million households for FTTHa Roll-out is speeding up to increase the number of customers able to benefit from the €19.99 and €25.99 offers Coverage
Slide 35: Bouygues Telecom transforms for its customers (1/2)
Bouygues Telecom transforms for the benefit of its customers (1/2) New positioning based on the quality of the customer experience announced in November 2014 Customers automatically benefit from the enhancement of their plans at no extra cost New services and content included Radical simpl
Slide 36: Bouygues Telecom transforms for its customers (2/2)
Bouygues Telecom transforms for the benefit of its customers (2/2) The transformation plan continues Redundancy plan completed: 1,362 voluntary redundancies and internal transfers by 27 January 2015 Employees in Paris region to be transferred to one single site before end-June 2015 Full migr
Slide 37: Bouygues Telecom's strategy
Bouygues Telecom's strategy Digital uses will experience exponential growth in the next few years In mobile, due to the multiplication of screens and devices connected permanently to the internet In fixed, due to the merging of the worlds of TV and the web, and the new ways of consuming conten
Slide 38: Outlook for Bouygues Telecom
Outlook for Bouygues Telecom Return to positive free cash flow in 2016 via an increase in the customer base and an optimised cost structure Confirmation of target to generate €300m in savings per year in 2016 (vs end-2013) Operating targets for 2017 An extra 1 million mobile customers and an
Slide 39: Key indicators at Bouygues Telecom (1/2)
ANNEX Key indicators at Bouygues Telecom (1/2) Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Mobile customer base 11,271 11,286 11,094 11,143 11,143 11,064 11,024 11,048 11,121 11,121 '000 o/w plana 9,618 9,802 9,760 9,910 9,910 9,940 9,984 10,031 10,130 10,130 End of o/w
Slide 40: Key indicators at Bouygues Telecom (2/2)
ANNEX Key indicators at Bouygues Telecom (2/2) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013 2014 2014 2014 2014 Mobile ARPUa €/month/subscriber 27.9 28.1 28.3 26.9 25.8 25.8 25.9 25.0 Plan ARPUa €/month/subscriber 31.7 31.5 31.4 28.7 28.1 28.0 28.1 26.9 Prepaid ARPUa €/month/subscriber 8.8 9.0 9.3 9.
Slide 41: 3. Alstom represents growth and upside potential for Bouygues
3. Alstom represents growth and upside potential for Bouygues 41
Slide 42: Growth and upside potential
Growth and upside potential Alstom represents growth and upside potential for Bouygues following the sale of the Energy activities to General Electric A world leader in the growing Transport market A portfolio of products at the cutting edge of innovation A strong international dimension A
Slide 43: 4. The Group strengthens its financial structure
4. The Group strengthens its financial structure 43
Slide 44: Group financial position
Group financial position €m End-2013 restated End-2014 Change Shareholders' equity 8,669 9,455 +€786m Net debt 4,435 3,216 -€1,219m Net gearing 51% 34% -17 pts The Group strengthened its financial structure and offset the decline in the free cash flow of the construction businesses related to the
Slide 45: Key figures, 2014 overview, financial statements, outlook
KEY FIGURES 2014 OVERVIEW FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 45
Slide 46: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) €m 2013 restated 2014 Change Sales 33,121 33,138 = Current operating profit 1,319 888 -€431m Other operating income and expenses (91)a 245b +€336m Operating profit 1,228 1,133 -€95m Cost of net debt (304) (311) -€7m o/w financial income 52 54 +€2m o/w fi
Slide 47: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) 2013 €m 2014 Change restated Income tax expense (360) (188) +€172m Investments in joint ventures and associates (1,187) 420 +€1,607m o/w share of profits 217 167 -€50m o/w net capital gain on Cofiroute disposal - 253a +€253m o/w write-down of Alstom (1,4
Slide 48: Sales by business segment
ANNEX Sales by business segment €m 2013 restated 2014 Change Bouygues Construction 11,101 11,726 +6% Bouygues Immobilier 2,510 2,775 +11% Colas 12,845 12,396 -3% Sub-total of construction businessesa 26,061 26,515 +2% TF1 2,460 2,243 -9% Bouygues Telecom 4,664 4,432 -5% Holding company and other 119
Slide 49: Contribution to Group EBITDA by business segment
ANNEX Contribution to Group EBITDA by business segment €m 2013 restated 2014 Change Bouygues Construction 670 629 -€41m Bouygues Immobilier 191 173 -€18m Colas 786 770 -€16m TF1 299 178 -€121m Bouygues Telecom 880 694 -€186m Holding company and other (27) (26) +€1m TOTAL 2,799 2,418 -€381m EBITDA =
Slide 50: Contribution to Group current operating profit by business segment
ANNEX Contribution to Group current operating profit by business segment €m 2013 restated 2014 Change Bouygues Construction 437 335 -€102m Bouygues Immobilier 178 174 -€4m Colas 390 332 -€58m Sub-total of construction businesses 1,005 841 -€164m TF1 223 143 -€80m Bouygues Telecom 125 (65) -€190m Hol
Slide 51: Contribution to Group operating profit by business segment
ANNEX Contribution to Group operating profit by business segment €m 2013 restated 2014 Change Bouygues Construction 437 335 -€102m Bouygues Immobilier 178 174 -€4m Colas 379a 265c -€114m Sub-total of construction businesses 994 774 -€220m TF1 223 471d +€248m Bouygues Telecom 45b (62)e -€107m Holding
Slide 52: Contribution to Group net profit by business segment
ANNEX Contribution to Group net profit by business segment €m Attributable to the Group 2013 restated 2014 Change Bouygues Construction 277 254 -€23m Bouygues Immobilier 101 102 +€1m Colas 301 583b +€282m Sub-total of construction businesses 679 939 +€260m TF1 60 179c +€119m Bouygues Telecom 11 (41)
Slide 53: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec End-Dec €m Change 2013 restated 2014 Non-current assets 17,690a 18,504 +€814m Current assets 15,374 16,364 +€990m Held-for-sale assets and operations 1,151b - -€1,151m TOTAL ASSETS 34,215 34,868 +€653m Shareholders' equity 8,669a 9,455 +€786m Non-current
Slide 54: Change in net debt in 2014 (1/2)
Change in net debt in 2014 (1/2) Net cash at Net cash at Net cash at 31/12/2013 €m 30/06/2014 31/12/2014 (3,216) Operation Otherd (4,435) +14 (5,174) Acquisitions/ Dividends paid +1,979 Divestmentsa Operation -11 -198 Exceptional Acquisitions/ disposalsb Otherc Divestmentsa -1,600 +10 -35 +1,060 201
Slide 55: Change in net debt in 2014 (2/2)
Change in net debt in 2014 (2/2) Breakdown of operation in second half of 2014 Change in operating WCR and otherb +1,812 €m Net capital Net cash flowa expenditure +937 -770 +1,979 (2) H2 2013 restated +1,309 -646c +792 +1,455c (a) Net cash flow = cash flow - cost of net debt - income tax expense (b)
Slide 56: Contribution to Group net cash flow by business segment
ANNEX Contribution to Group net cash flow by business segment €m 2013 restated 2014 Change Bouygues Construction 490 371 -€119m Bouygues Immobilier 120 97 -€23m Colas 667 610 -€57m TF1 188 87 -€101m Bouygues Telecom 763 822 +€59m Holding company and other (172) (228) -€56m TOTAL 2,056 1,759 -€297m N
Slide 57: Contribution to Group net capital expenditure by business segment
Contribution to Group net capital expenditure by business segment €m 2013 restated 2014 Change Bouygues Construction 159 172 +€13m Bouygues Immobilier 10 13 +€3m Colas 289 456 +€167m TF1 39 35 -€4m Bouygues Telecom 739a 684 -€55m Holding company and other 2a 2 = Total excl. impact of 4G frequencies
Slide 58: Contribution to Group free cash flow by business segment
Contribution to Group free cash flow by business segment €m 2013 restated 2014 Change Bouygues Construction 331 199 -€132m Bouygues Immobilier 110 84 -€26m Colas 378 154 -€224m Sub-total of construction businesses 819 437 -€382m TF1 149 52 -€97m Bouygues Telecom 24a 138 +€114m Holding company and ot
Slide 59: Net cash by business segment
Net cash by business segment End-Dec 2013 End-Dec €m Change restated 2014 Bouygues Construction 3,006 2,900 -€106m Bouygues Immobilier 271 203 -€68m Colas 31 682a +€651m TF1 189b 497c +€308m Bouygues Telecom (783) (765) +€18m Holding company and other (7,149) (6,733) +€416m TOTAL (4,435) (3,216) +€1
Slide 60: Financing
Financing €m Available cash: €9.6bn 10,000 9,000 Debt maturity schedule at end-December 2014 Undrawn 8,000 MLT 7,000 facilities 6,000 €5.7bn Redemption date 5,000 3 July 2015 4,000 3,000 Cash 2,000 €3.9bn 1,000 0 60
Slide 61: Impacts of exceptional items on net profit attributable to the Group
ANNEX Impacts of exceptional items on net profit attributable to the Group €m 2013 restated 2014 Change Net profit/(loss) attributable to the Group (757) 807 +€1,564m Alstom write-down +1,404 - -€1,404m Net capital gain on the sale by Colas of its stake in Cofiroute - -240 -€240m Cofiroute contribut
Slide 62: Impacts of the sale of the stake in Cofiroute on the income statement
ANNEX Impacts of the sale of the stake in Cofiroute on the income statement €m Colas Group income Colas income 2014 statement contributiona statement Net capital gain on disposal 385 385 385 - Goodwill at Holding company level 0 0 -132 Net capital gain on disposal after goodwill 385 385 253 - Net ca
Slide 63: Impacts of the sale of the 31% stake in Eurosport International
ANNEX Impacts of the sale of the 31% stake in Eurosport International on income statement TF1 Group €m TF1 income income 2014 contributiona statement statement Capital gain and remeasurementb before tax 328 328 328 - Income tax expense -28 -28 -28 Net capital gain on disposal and remeasurementb afte
Slide 64: Non-current items impacting 2015
Non-current items impacting 2015 Non-current charges impacting operating profit: estimated total of around €200m Implementation of the network sharing agreement with the Numericable-SFR group could lead to a write-down of assets at Bouygues Telecom Continued adaptation of businesses Applicat
Slide 65: Impact of the application of IFRIC 21 on 2014 interim results
ANNEX Impact of the application of IFRIC 21 on 2014 interim results Q1 2014 Q2 2014 Q3 2014 Q4 2014 €m Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Bouygues Construction 91 (10) 81 89 3 92 64 3 67 91 4 95 Bouygues Immobilier 31 (3) 28 40 1 41 53
Slide 66: Key figures, 2014 overview, financial statements, outlook
KEY FIGURES 2014 OVERVIEW FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 66
Slide 67: Outlook for 2015
Outlook for 2015 Year marked by the resilience of the construction businesses thanks to momentum in the international activity and the ongoing adaptation in France Current operating margin at the level of 2014 despite a decline in sales Continued evolution of TF1’s business model Improvement
Slide 68: Dividend
Dividend Bouygues' Board of Directors proposes to maintain the dividend at €1.60a for 2014 Ex-date: 28 April 2015 Record date: 29 April 2015 Payment date: 30 April 2015 The stable dividend reflects the confidence in the success of the measures implemented by all the Group's business segmen
Slide 69: Bouygues group's strategic priorities (1/2)
Bouygues group's strategic priorities (1/2) Targets for the Group Market high value-added offers to customers and increasingly innovative services for the benefit of the greatest number of people Ensure regular free cash flow generation over the long term Create value for all its stakeholders
Slide 70: Bouygues group's strategic priorities (2/2)
Bouygues group's strategic priorities (2/2) Strengthen its position as a world leader in construction and civil works, energy and transport infrastructure Continue to develop on international markets Market high value-added innovative offers, high-level technical expertise and specialised activi
Slide 71: Conclusion
Conclusion Bouygues has once again proven its strong capability to adapt to changes in its environment In a competitive and economic environment that will remain challenging in France in 2015, all the Group's business segments will continue their transformation plans and prioritise a return to g
Slide 72: Calendar
ANNEX Calendar 23 April 2015 Annual General Meeting for FY2014 3.30pm 30 April 2015 Dividend payment 13 May 2015 First-quarter 2015 sales and earnings 7.30am 27 August 2015 First-half 2015 sales and earnings 7.30am 13 November 2015 Nine-month 2015 sales and earnings 7.30am 72
Slide 73: Building the future is our greatest adventure
73 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE