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Bouygues Sa — H1 2007 Earnings Presentation

56 slides from Bouygues Sa's earnings presentation, Aug 31, 2007

  1. Slide 1: Presentation of First-Half 2007 Results

    PRESENTATION OF FIRST-HALF 2007 RESULTS Paris - 32 Hoche 31 August 2007

  2. Slide 2: Forward-looking statements disclaimer

    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 Registration Document (Document de Réfé

  3. Slide 3: Agenda: Highlights and key figures

    „ HIGHLIGHTS AND KEY FIGURES „ BUSINESS AREAS „ FINANCIAL STATEMENTS „ OUTLOOK AND OBJECTIVES

  4. Slide 4: Highlights in first-half 2007

    HIGHLIGHTS IN FIRST-HALF 2007 „ Further rise in sales „ Significant increase in profit „ Ongoing commercial strength in all the construction businesses and telecoms „ Continued targeted acquisitions by Colas (Spie Rail, etc.), TF1 (AB Groupe) and Bouygues Construction (Mibag, Karmar, etc.) „ Success

  5. Slide 5: Bouygues Group: key operating figures

    BOUYGUES GROUP: key operating figures 1st half € million Change 2006 2007 Sales 12,052 13,298 +10% Operating profit 862 1,055 +22% Net profit att. to the Group 565 655 +16% Net profit from continuing operations att. to the Group 453* 655 +45% * Excluding profit from divested and held-for-sale compan

  6. Slide 6: Group: financial position (1/2)

    BOUYGUES GROUP: financial position (1/2) at 30 June € million Change 2006 2007 Shareholders’ equity 5,806 7,032 +€1,226m Total net debt 5,115 5,115 = Debt-to-equity ratio 88% 73% -15 pts Increase in shareholders' equity Sharp decline in debt-to-equity ratio despite continued external growth

  7. Slide 7: Group: financial position (2/2)

    BOUYGUES GROUP: financial position (2/2) 1st half € million Change 2006 2007 Cash flow 1,348 1,579 +€231m - Cost of net debt -77 -95 +€18m - Income tax -249 -284 +€35m - Net operating investments -699 -613 -€86m Free cash flow 323 587 +€264m Rise in cash flow and free cash flow

  8. Slide 8: Bouygues - Alstom

    BOUYGUES - ALSTOM „ Alstom’s financial contribution to Bouygues in first-half 2007: €34m 9 share of Alstom's net profit: €64m* 9 consolidation adjustments (holding company): €6m 9 financial charges net of tax (holding company): (€36m) * Calculation based on Alstom's net profit for H2 2006/2007 „ Eff

  9. Slide 9: Alstom: FY 2006/2007 key figures

    ALSTOM: FY 2006/2007 key figures FY Order intakes (€ bn) € million Change 2006/2007 19.0 +34% (2) Order book(1) 32,350 +22% (2) 15.3 5.4 1.1 Sales 14,208 +14% (2) 5.0 4.1 Operating margin 6.7% +1.1 pts 3.3 Net profit 448 x2.5 9.5 Free cash flow 745 +42% 5.8 Net debt (1) 64 -€1,184m end-March 2006 en

  10. Slide 10: Share ownership structure at 30 June 2007

    BOUYGUES: share ownership structure at 30 June 2007 „ Capital „ Voting rights Foreign Foreign shareholders SCDM shareholders SCDM Groupe 18.3% Artémis 27.3% 2.0% (F. Pinault) 31.2% 39.7% Groupe 12.7% 2.6% Artémis Employees (F. Pinault) 15.6% 27.3% 23.3% Employees Other French Other French shareholde

  11. Slide 11: Group: share performance

    BOUYGUES GROUP: share performance „ Performance of the Bouygues share and the Dow Jones Eurostoxx 50 index from 29 August 2006 to 29 August 2007 2006 2007 Bouygues DJ EuroStoxx 50 70 65 60 Share price in € 55 €55.05 +34% 50 45 +10% 40 35 Sept.-06 Oct.-06 Nov.-06 Dec.-06 Jan.-07 Feb.-07 March-07 Apri

  12. Slide 12: Agenda: Business areas

    „ HIGHLIGHTS AND KEY FIGURES „ BUSINESS AREAS „ FINANCIAL STATEMENTS „ OUTLOOK AND OBJECTIVES

  13. Slide 13: Bouygues Construction: key figures

    BOUYGUES CONSTRUCTION: key figures 1st half € million Change 2006 2007 Sales 3,261 3,818 +17% o/w France 2,085 2,345 +12% o/w international 1,176 1,473 +25% Operating profit 152 150 -1% Net profit att. to the Group 121 148 +22% Cyprus Airport „ First-half 2007 9 major projects in the start-up phase,

  14. Slide 14: Bouygues Construction: order book

    BOUYGUES CONSTRUCTION: order book +29% € bn 9.8 8.7 At 30 June 2007 7.6 6.0 France 49% Americas Other 3% 11% 79% Asia 7% End-Dec. End-June End-Dec. End-June Rest of Europe 2005 2006 2006 2007 30% „ Main orders taken in first-half 2007 9 €477m Gautrain rail link in South Africa 9 second Tangiers port

  15. Slide 15: ETDE: electrical contracting and maintenance (1/2)

    ETDE: electrical contracting and maintenance (1/2) „ Profile (2006 data) 2006 sales by business area 9 sales of €1.4bn (+42% over 2005) 19% 9 28% of sales generated outside France 36% 45% 9 excellent visibility (long-term contracts) 9 12,000 employees (x3 in five years) Utility networks Facilities M

  16. Slide 16: ETDE: outstanding growth (2/2)

    ETDE: outstanding growth (2/2) „ ETDE's combined growth strategy, a key priority for Bouygues Construction 9 strong internal growth on expanding markets 9 robust external growth to extend geographical coverage in France and Europe (UK, Switzerland, etc.) and add new skills (50 companies acquired sin

  17. Slide 17: Bouygues Construction: outlook

    BOUYGUES CONSTRUCTION: outlook „ Firm markets 9 the market is buoyant in France 9 in Europe, Bouygues Construction is positioned on high-potential segments like PFIs and property development 9 mounting demand in developing countries for transport and utility infrastructure „ Bouygues Construction's

  18. Slide 18: Bouygues Immobilier: key figures

    BOUYGUES IMMOBILIER: key figures 1st half € million Change 2006 2007 Sales 721 809 +12% o/w residential 566 662 +17% o/w commercial 155 147 -5% Operating profit 80 72 -10% Net profit att. to the Group 52 42 -19% Mozart Tower „ First-half 2007 Issy-les-Moulineaux, France 9 residential reservations at

  19. Slide 19: Bouygues Immobilier: order book

    BOUYGUES IMMOBILIER: order book In months of sales 13 months 15 months 18 months 21 months Commercial +53% 2,998 Residential € million 2,457 836 1,957 506 1,746 355 352 2,162 1,951 1,602 1,394 End-Dec. 2005 End-June 2006 End-Dec. 2006 End-June 2007 Good visibility

  20. Slide 20: Bouygues Immobilier: outlook

    BOUYGUES IMMOBILIER: outlook „ Markets enjoy good visibility 9 the housing market in France should remain solid, underpinned by sound fundamentals. A soft landing scenario is taking shape. 9 the French office market has entered an upswing 9 conditions vary across European markets „ Bouygues Immobili

  21. Slide 21: Colas: key figures

    COLAS: key figures 1st half € million Change 2006 2007 Sales 4,507 4,925 +9% o/w France 2,840 3,149 +11% o/w international 1,667 1,776 +7% Operating profit 74 136 +84% Net profit att. to the Group 70 117 +67% East European high-speed „ First-half 2007 train line 9 sharp increase in sales and profit

  22. Slide 22: Colas: H1 results - 10-year review

    COLAS: H1 results - 10-year review „ H1 sales and total net profit from 1998 to 2007 - € million Sales Total net profit 6 000 140 120 5 000 100 4 000 80 60 3 000 40 2 000 20 0 1 000 (20) 0 (40) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Average annual sales growth of 13% H1: net loss until 19

  23. Slide 23: Colas: order book

    COLAS: order book International and French overseas territories Metropolitan France +10% € million 6,740 6,121 5,513 4,663 3,487 3,265 2,243 2,800 2,856 2,713 3,253 2,420 End-Dec. 2005 End-June 2006 End-Dec. 2006 End-June 2007 Good commercial performance

  24. Slide 24: Colas: outlook

    COLAS: outlook „ Supportive market trends 9 roadworks in France: stabilising at high levels 9 roadworks in international markets: bright prospects 9 other activities: high-potential markets, particularly the rail sector „ Colas is pursuing its strategy of profitable growth 9 strengthen positions in

  25. Slide 25: TF1: key figures

    TF1: key figures 1st half € million Change 2006 2007 Sales 1,386 1,431 +3% o/w core channel advertising 923 925 = o/w other activities 463 506 +9% Operating profit 209 264 +26% Net profit att. to the Group 171 186 +9% 2007 Rugby World Cup „ First-half 2007 9 higher audience share 9 slower-than-expec

  26. Slide 26: TF1: outlook

    TF1: outlook „ In a context of fast changes in viewing behaviour, TF1 aims to 9 remain a leading content provider in France 9 consolidate the success of Eurosport 9 provide content on all broadcasting media 9 control programming costs 2006 2007 Sales target (€ million) Change target Sales 2,654 2,73

  27. Slide 27: Bouygues Telecom: key figures

    BOUYGUES TELECOM: key figures 1st half € million Change 2006 2007 Sales 2,182 2,300 +5% Sales from network 2,048 (1) 2,176 +6% EBITDA 618 732 (2) +18% EBITDA/sales from network 30.2% 33.6% +3.4 pts Operating profit 298 440 +48% Net profit att. to the Group (3) 305 289 ns Net profit from continuing o

  28. Slide 28: Bouygues Telecom: financial structure

    BOUYGUES TELECOM: financial structure 1st half € million Change 2006 2007 Shareholders’ equity* 2,036 2,053 +1% Net debt* 398 33 -€365m Debt-to-equity ratio 20% 2% ns * End of period Cash flow 601 720 +20% - Cost of net debt -5 1 ns - Income tax -97 -152 +57% - Net operating investments -208 -215 +3

  29. Slide 29: French market: comparison of the three operators

    FRENCH MARKET: comparison of the three operators Customer market share Value market share (excl. MVNOs) 4.5% 16.8% Bouygues Telecom 20.2% 34.2% 37.7% Orange 44.5% SFR 42.1% MVNOs & other Value market share exceeds 20% (+1 point) Prepaid 26.9% 35.7% 34.2% Contract 64.3% 73.1% (+3.1 pts) 65.8% A stead

  30. Slide 30: Bouygues Telecom: commercial indicators

    BOUYGUES TELECOM: commercial indicators Total customer Contract Prepaid base 1st half 1st half 1st half 1st half 1st half 1st half 2006 2007 2006 2007 2006 2007 SIM cards (thousands) 5,817 6,437 2,488 2,370 8,305 8,807 ARPU (€/month)* 52 50 16 15 41 40 SAC (€/customer) 251 224 27 28 170 144 Voice us

  31. Slide 31: Bouygues Telecom: commercial policy

    BOUYGUES TELECOM: commercial policy „ Consumer plans 9 unlimited calling: continue to offer Neo and Exprima call plans 9 other plans: bolster small-end range with package offering double call time after 6pm and at weekends 9 locked-up plans: continued growth with Universal Mobile ¾ over 800,000 cust

  32. Slide 32: Bouygues Telecom: strategy

    BOUYGUES TELECOM: strategy „ Aim for service excellence (network quality, customer relations, etc.) „ Develop new services 9 converged services on business market 9 wholesale minutes (MVNOs) 9 machine-to-machine „ Focus resources on growth drivers 9 launch consumer ADSL package in 2008 9 personal mo

  33. Slide 33: Bouygues Telecom: Business Synchro

    BOUYGUES TELECOM: Business Synchro „ Straightforward 9 one subscription, one bill and one contact for fixed and mobile telephony and the internet „ Cost efficient 9 bills cut by up to 50% 9 lower infrastructure costs: no more on-premises PABX equipment 9 first solution to offer unlimited calls 24/7

  34. Slide 34: Bouygues Telecom: consumer ADSL

    BOUYGUES TELECOM: consumer ADSL „ The ADSL access market continues to grow robustly 9 13 million French households will have ADSL at end-2007, with an estimated 17 million by 2010 9 potential market of 4 million gross additions in 2008 „ Target: make the most of strategic advantages 9 capitalise on

  35. Slide 35: Bouygues Telecom: MVNOs

    BOUYGUES TELECOM: MVNOs „ Strategic objective: team up with MVNOs whose commercial positions complement those of Bouygues Telecom „ Agreement with Numericable, a partner with 9 an existing brand 9 a large customer base 9 a distribution network „ Launch of specialised MVNOs with Transatel A pragmatic

  36. Slide 36: Bouygues Telecom: roaming

    BOUYGUES TELECOM: roaming Pricing in Europe, 2007-2009 Retail prices Wholesale € cents/minute Outgoing call Incoming call (excl. VAT) (excl. VAT) (excl. VAT) 2007 49 24 30 2008 46 22 28 % change -6.1% -8.3% -6.7% 2009 43 19 26 % change -6.5% -13.6% -7.1% „ Forced price reductions do not solve the co

  37. Slide 37: Bouygues Telecom: call termination rates

    BOUYGUES TELECOM: call termination rates „ ARCEP's draft decision 2008/ € cents/minute 2007 June 2009 Rates to Bouygues Telecom 9.24 8.5 % change -17.8% -8% Rates to Orange/SFR 7.5 6.5 % change -21.1% -13.3% Differential in € cents 1.74 2 Call termination rates still high, which promotes “club effec

  38. Slide 38: Bouygues Telecom: outlook

    BOUYGUES TELECOM: outlook „ Sales target 2007 € million 2006 Change target Sales from network 4,241 4,390 +3.5% Total sales 4,539 4,670 +3%

  39. Slide 39: Bouygues Telecom: UMTS

    BOUYGUES TELECOM: UMTS „ The rollout schedule will allow Bouygues Telecom to comply with ARCEP’s decision, which requires 3G services to be available by 30 November 2007, without modifying capital expenditures for 2007 „ The selected technology - HSDPA - performs better than the first version of UMT

  40. Slide 40: Agenda: Financial statements

    „ HIGHLIGHTS AND KEY FIGURES „ BUSINESS AREAS „ FINANCIAL STATEMENTS „ OUTLOOK AND OBJECTIVES

  41. Slide 41: Condensed consolidated income statement

    BOUYGUES: condensed consolidated income statement 1st half € million Change 2006 2007 Sales 12,052 13,298 +10% Operating profit 862 1,055 +22% Cost of net debt (77) (95) +23% Income tax expense (249) (284) +14% Net profit from continuing operations 560 801 +43% Net profit from discontinued operation

  42. Slide 42: Contribution of business areas to Group sales

    Contribution of business areas to Group sales 1st half € million Change 2006 2007 Bouygues Construction 3,155 3,712 +18% Bouygues Immobilier 721 808 +12% Colas 4,496 4,914 +9% TF1 1,377 1,423 +3% Bouygues Telecom 2,175 2,293 +5% Holding company and other 128 148 ns TOTAL 12,052 13,298 +10% o/w Franc

  43. Slide 43: Contribution of business areas to Group EBITDA

    Contribution of business areas to Group EBITDA 1st half € million Change 2006 2007 Bouygues Construction 215 184 -€31m Bouygues Immobilier 69 56 -€13m Colas 215 316 +€101m TF1 246 330 +€84m Bouygues Telecom 618 732* +€114m Holding company and other 59 8 -€51m TOTAL 1,422 1,626 +14% EBITDA = current

  44. Slide 44: Contribution of business areas to Group operating profit

    Contribution of business areas to Group operating profit 1st half € million Change 2006 2007 Bouygues Construction 152 150 -€2m Bouygues Immobilier 80 72 -€8m Colas 74 136 +€62m 6 TF1 209 264 +€55m Bouygues Telecom 298 440* +€142m Holding company and other 49 (7) -€56m TOTAL 862 1,055 +22% Excluding

  45. Slide 45: Contribution of business areas to Group net profit

    Contribution of business areas to Group net profit „ Group share 1st half € million Change 2006 2007 Bouygues Construction 121 148 +€27m Bouygues Immobilier 52 42 -€10m Colas 68 113 +€45m TF1 74 80 +€6m Bouygues Telecom 273 (1) 259 (2) -€14m Alstom / 64 ns Holding company and other (23) (51) -€28m N

  46. Slide 46: Contribution of business areas to Group cash flow

    Contribution of business areas to Group cash flow 1st half € million Change 2006 2007 Bouygues Construction 232 162 -€70m Bouygues Immobilier 66 71 +€5m Colas 219 317 +€98m TF1 234 285 +€51m Bouygues Telecom 602 720 +€118m Holding company and other (5) 24 +€29m TOTAL 1,348 1,579 +17% Excluding contr

  47. Slide 47: Contribution of business areas to Group net investments

    Contribution of business areas to Group net investments „ Net operating investments 1st half € million Change 2006 2007 Bouygues Construction 94 133 +€39m Bouygues Immobilier (1) 3 +€4m Colas 199 216 +€17m TF1 44 36 -€8m Bouygues Telecom 208 215 +€7m Holding company and other 155 10 -€145m TOTAL 699

  48. Slide 48: Contribution of business areas to Group free cash flow

    Contribution of business areas to Group free cash flow 1st half € million Change 2006 2007 Bouygues Construction 97 12 -€85m Bouygues Immobilier 43 42 -€1m Colas (6) 52 +€58m TF1 116 154 +€38m Bouygues Telecom 291 354 +€63m Holding company and other (218) (27) +€191m TOTAL 323 587 +82% Free cash flo

  49. Slide 49: Group: net cash by business area

    BOUYGUES GROUP: net cash by business area End-June € million Change 2006 2007 Bouygues Construction 1,757 1,918 +€161m Bouygues Immobilier 97 (121) -€218m Colas (398) (535) -€137m TF1 (391) (572) -€181m Bouygues Telecom (398) (33) +€365m Holding company and other (5,782) (5,772) +€10m TOTAL (5,115)

  50. Slide 50: Group: change in cash position in H1

    BOUYGUES GROUP: change in cash position in H1 € million 2005/ 2006/ 2006 2007 Net cash at 30 June (year N-1) (3,980) (5,115) 9 Capital increase and exercise of stock options +232 +81 9 Main acquisitions and disposals -36 -605 9 Share buybacks -318 -242 9 Main consolidation effects and other +62 -13

  51. Slide 51: Condensed consolidated balance sheet

    BOUYGUES: condensed consolidated balance sheet At 30 June 2006 €m At 30 June 2007 28,261 28,261 32,007 32,007 5,806 7,032 13,666 15,897 8,436 8,389 13,952 13,620 16,077 16,586 643 399 33 Assets Liabilities Assets Liabilities Non-current assets Shareholders’ equity Current assets Non-current liabilit

  52. Slide 52: Financing policy

    BOUYGUES: financing policy €m Available cash: €6.9 billion 7,000 6,000 Debt repayment schedule 5,000 Undrawn 4,000 MLT credit lines 3,000 Bouygues Telecom 6.5% call option 2,000 Cash 1,000 0 Liquidity 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ... 2020 ... 2026 2027 2028 Evenly spread debt re

  53. Slide 53: Agenda: Outlook and objectives

    „ HIGHLIGHTS AND KEY FIGURES „ BUSINESS AREAS „ FINANCIAL STATEMENTS „ OUTLOOK AND OBJECTIVES

  54. Slide 54: 2007 sales targets

    BOUYGUES: 2007 sales targets € million 2007 target Change 2006 2007/2006 in February in June in August 7 Bouygues Construction 6,680 7,500 7,730 7,840 +17% Bouygues Immobilier 1,608 2,000 2,000 2,000 +24% Colas 10,682 11,350 11,350 11,480 +7% TF1 2,639 2,860 2,820 2,720 +3% Bouygues Telecom 4,525 4,

  55. Slide 55: Outlook

    BOUYGUES: outlook „ The outlook for Group sales is bright „ The Group has to hire, train and integrate 20,000 people in 2007, more than half of whom will be in France. This objective will be met. „ Bouygues plans to 9 pursue internal growth in each business area 9 take expansion opportunities in the

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Bouygues — H1 2007 Earnings Presentation on 6ix