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Bouygues SA — H1 2009 Earnings Presentation

60 slides from Bouygues SA's earnings presentation, Aug 28, 2009

  1. Slide 1: First-Half 2009 Results Presentation

    FIRST-HALF 2009 RESULTS PRESENTATION Paris – 32 Hoche 28 August 2009

  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 filed with the F

  3. Slide 3: Highlights and Key Figures; Business Areas; Financial Statements; Outlook

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

  4. Slide 4: Highlights: Improved performance in the second quarter

    HIGHLIGHTS  Group sales are holding up well  Group results improved in the second quarter  Standard & Poor’s confirms its rating of A- with a stable outlook  Commercial activity of Construction businesses  Bouygues Construction and Colas: order book stable at a high level  Bouygues Immobilier:

  5. Slide 5: Group: key operating figures

    BOUYGUES GROUP: key operating figures First-half € million Change 20081 2009 Sales 15,299 14,929 -2% Operating profit 1,099 789 -28% Net profit attributable to the Group 701 547 -22% First-quarter Second-quarter 2009 Change1 2009 Change1 Sales 6,655 -2% 8,274 -3% Operating profit 174 -55% 615 -14% N

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

    BOUYGUES GROUP: financial position (1/2) At 30 June € million Change 2008 2009 Shareholders’ equity 8,033 8,642 +€609m Net debt 6,300 6,259 -€41m Net gearing 78% 72% -6 pts  Slight decrease in net debt  Standard & Poor’s credit rating confirmed: A- with a stable outlook  Credit rating unchanged s

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

    BOUYGUES GROUP: financial position (2/2) First-half € million Change 2008 2009 Cash flow 1,710 1,516 -€194m - Cost of net debt -132 -171 -€39m - Income tax expense -305 -208 +€97m - Net capital expenditure -833 -571 +€262m Free cash flow 440 566 +€126m Free cash flow is increasing

  8. Slide 8: Bouygues - Alstom: a high-quality strategic investment

    BOUYGUES - ALSTOM  Alstom’s contribution to Bouygues’ first-half 2009 net profit: €174 million  Share of Alstom’s net profit: €182 million1 vs €151m in the first half of 2008  Consolidation adjustments (holding company): -€8m vs -€9m in the first half of 2008 1Calculation based on Alstom’s second

  9. Slide 9: Share ownership structure at 30 June 2009

    BOUYGUES: share ownership structure at 30 June 2009  Capital  Voting rights SCDM Foreign 19.1% shareholders SCDM Foreign 34.7% 26.1% 28.1% shareholders 15.9% Employees 30.3% 25.4% 20.4% Other Other French Employees French shareholders shareholders At 30 June 2009: • 344,078,003 shares • 456,913,10

  10. Slide 10: Group: share price performance

    BOUYGUES GROUP: share price performance  Performance of Bouygues share price and Dow Jones Eurostoxx 50 Index from 30 June 2008 to 26 August 2009 (at close) Bouygues DJ EuroStoxx 50 2008 2009 50 45 40 35 -17% Share price (€) 30 €33.0 -22% 25 20 15 10 5 0 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Ja

  11. Slide 11: Business Areas section

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

  12. Slide 12: Bouygues Construction: key figures

    BOUYGUES CONSTRUCTION: key figures First-half € million Change 2008 2009 Sales 4,594 4,758 +4%1 o/w France 2,653 2,713 +2% o/w international 1,941 2,045 +5% Operating margin 4.0% 3.4% -0.6 pts Net profit attributable to the Group 164 121 -26% 1Up 3% like-for-like and at constant exchange rates First

  13. Slide 13: Construction: order intakes

    BOUYGUES CONSTRUCTION: order intakes1 International €m France Total 3,193 2,914 3,034 3,057 3,000 5,844 2,651 2,581 -24% 2,500 2,076 2,243 2,232 2,207 4,990 4,678 4,439 2,000 2,637 2,030 2,191 1,859 1,500 1,330 1,000 877 2,799 3,207 2, 648 2,580 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 H1 H1 H1 2007 2

  14. Slide 14: Construction: order book

    BOUYGUES CONSTRUCTION: order book Long-term order book (beyond Y+5) For execution from Y+2 to Y+5 At 30 June 2009 For execution in Y+1 For execution in Y €12.3bn €11.9bn Middle East France -€0.4bn 1% €9.8bn +€2.5bn 1,246 Americas 50% 1,370 Beyond 2014 2,327 2% 876 2,127 2011 to 2014 1,351 Africa 7%

  15. Slide 15: Construction: outlook

    BOUYGUES CONSTRUCTION: outlook  The economic and financial crisis is leading to stiffer competitive pressure  The effects of the stimulus plans on order intakes are not expected before end-2010 - early-2011  To come through the current crisis, Bouygues Construction remains vigilant  Selectivity

  16. Slide 16: Immobilier: key figures

    BOUYGUES IMMOBILIER: key figures First-half € million Change 2008 2009 Sales 1,300 1,433 +10%1 o/w residential 838 936 +12% o/w commercial 462 497 +8% Operating margin 9.4% 7.3% -2.1 pts Net profit attributable to the Group 61 60 -2% 1Up 9% like-for-like and at constant exchange rates Green Office®

  17. Slide 17: Immobilier: reservations

    BOUYGUES IMMOBILIER: reservations 707 €m 1,350 590 593 1,166 310 88 459 480 -19% 233 Total 943 410 100 350 99 -76% 11 Commercial 228 505 property 397 32 870 844 +12% 359 357 339 756 196 Q1 Q2 Q3 Q4 Q1 Q2 H1 2007 H1 2008 H1 2009 2008 2008 2008 2008 2009 2009 Definition: Residential property reservati

  18. Slide 18: Immobilier: order book

    BOUYGUES IMMOBILIER: order book In months’ sales 18 months 13 months 13 months 11 months Commercial property Residential property 3,930 €m 3,212 1,504 2,935 -7 % 2,722 1,184 972 786 2,426 2,028 1,963 1,936 End-June 2008 End-Dec 2008 End-Mar 2009 End-June 2009

  19. Slide 19: Residential property market: new home sales in France

    RESIDENTIAL PROPERTY MARKET: new home sales in France Number of housing units sold  Bouygues Immobilier  Market Unit sales Block sales 4,916 +20% 53,152 +11% 48,090 4,111 248 -67% 753 4,668 +39% 3,358 H1 2008 H1 2009 H1 2008 H1 2009  Bouygues Immobilier has chosen to position itself in the low- t

  20. Slide 20: Immobilier: outlook

    BOUYGUES IMMOBILIER: outlook  The French residential property market is expected to grow in 2009 thanks to government measures  No recovery expected in the commercial property market in 2009  Bouygues Immobilier is continuing to implement its action plan  Priority given to selling off ongoing re

  21. Slide 21: Colas: key figures

    COLAS: key figures First-half € million Change 2008 2009 Sales 5,631 5,116 -9%1 o/w France 3,537 3,146 -11% o/w international 2,094 1,970 -6% Operating margin 2.8% 1.5% -1.3 pts Net profit attributable to the Group 130 58 -55% 1Down 10% like-for-like and at constant exchange rates Motorway in Hungar

  22. Slide 22: Colas: order book

    COLAS: order book International and French overseas territories Mainland France €m 7 252 7 095 7 183 6 765 6 310 5 823 3 679 3 674 3 745 3 374 3 154 2 838 3 573 3 421 3 156 2 985 3 391 3 438 End-March End-June End-Sept End-Dec End-March End-June 2008 2008 2008 2008 2009 2009 Order book stable at a h

  23. Slide 23: Colas: impact of stimulus plans

    COLAS: impact of stimulus plans  France  Early VAT rebates for local authorities  First positive effects felt in the volume of calls for tenders at the end of the first half of 2009  Positive impact on business expected at the end of 2009  No impact expected from the road and railway infrastruc

  24. Slide 24: Colas: outlook

    COLAS: outlook  Slowdown in sales and competitive pressure expected in 2009  Downturn in the French and European roads market  Brighter outlook confirmed in North America as of the second half of 2009 thanks to the stimulus plans  Colas is adapting to the change in its environment, with two prio

  25. Slide 25: TF1: key figures

    TF1: key figures First-half Change € million 2008 2009 Sales1 1,353 1,130 -16%2 o/w TF1 channel advertising 891 687 -23% o/w other activities 462 443 -4% Operating margin 12.6% 3.4% -9.2 pts Net profit attributable to the Group 125 49 -61% Advertising campaign May 2009 1Applying the same accounting

  26. Slide 26: TF1: implementing strategy

    TF1: implementing strategy  TF1 is strengthening its core business, television  Agreement with AB Group to acquire TMC and NT1 and broaden the programme offering  TF1 is taking strong positions in new media  Award of a digital terrestrial radio (DTR) frequency for LCI  Launch of the new TF1.fr

  27. Slide 27: TF1: outlook

    TF1: outlook Sales target 2009 2008 Change target € million Sales 2,595 2,250 -13%  TF1 maintains unrivalled audience ratings in Europe TF1’s transformation is starting to produce results

  28. Slide 28: Bouygues Telecom: key figures

    BOUYGUES TELECOM: key figures First-half Change € million 2008 2009 Sales 2,465 2,625 +6%1 Sales from network 2,295 2,407 +5% EBITDA 755 702 -7% EBITDA/sales from network 32.9% 29.2% -3.7 pts Operating margin 19.0% 15.8% -3.2 pts Net profit attributable to the Group 308 268 -13% ideo advertisement 1

  29. Slide 29: Telecom: consumers (1/2)

    BOUYGUES TELECOM: consumers (1/2)  Strong sales in the mobile business  Success of the iPhone with over 100,000 sales between 29 April and end-June  Enthusiasm for unlimited SMS offers  ARPU stabilised as a result of the improved contract mix  Successful start for the fixed-line business  125,

  30. Slide 30: Telecom: consumers (2/2)

    BOUYGUES TELECOM: consumers (2/2)  Take-off of 3G+  18% share of net market growth in 3G+ keys in the first half of 2009  3G+ coverage of 77% of the French population in early July (meeting licence obligations 18 months ahead of target)  Service quality still recognised  First NF-certified oper

  31. Slide 31: Telecom: businesses and SMEs

    BOUYGUES TELECOM: businesses and SMEs  Market affected by the economic crisis  Marked decrease in roaming and optimised customer usage  Increase in churn linked to company bankruptcies  Yet the Bouygues Telecom segment for businesses and SMEs is growing rapidly  First-half 2009 sales increased

  32. Slide 32: Telecom: key indicators

    BOUYGUES TELECOM: key indicators Total customer Contract Prepaid base H1 H1 H1 H1 H1 H1 2008 2009 2008 2009 2008 2009 SIM cards (‘000) 6,959 7,483 2,359 2,411 9,318 9,894 SIM cards (% mix) 74.7% 75.6% 25.3% 24.4% No. of Bbox routers activated (‘000) 0 84 Mobile business – ARPU (€/year)1 609 602 182

  33. Slide 33: Telecom: trends in the French telecom market

    BOUYGUES TELECOM: trends in the French telecom market  Increase in litigation due to antennas is making base station installation and maintenance difficult  Emergence of new economic models with  The increasing weight of smartphones  The development of application stores (Apple, Google, Nokia, e

  34. Slide 34: Telecom: strategy

    BOUYGUES TELECOM: strategy  Anticipate changes in the mobile market  Increase accessible market  Target households by expanding in the fixed-line market  Promote new products: 3G+ keys, ultra-portable PCs, machine-to-machine products  Optimise investments  Reduce investments after the peak in

  35. Slide 35: Telecom: outlook

    BOUYGUES TELECOM: outlook Sales target 2009 2008 Change € million target Total sales 5,089 5,200 +2% o/w sales from network 4,696 4,770 +2% The sales target factors in the 29.4% cut in call termination rates at 1 July 2009

  36. Slide 36: Telecom: call termination rates

    BOUYGUES TELECOM: call termination rates  History of cuts ordered by ARCEP At 1 At 1 At 1 At 1 € cents/minute January January January July 2006 2007 2008 2009 Rates to Bouygues Telecom 11.24 9.24 8.50 6.00 Change (%) -24% -17.8% -8% -29.4% Rates to Orange/SFR 9.50 7.50 6.50 4.50 Change (%) -24% -21

  37. Slide 37: Financial Statements section

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

  38. Slide 38: Condensed consolidated income statement (1/2)

    BOUYGUES: condensed consolidated income statement (1/2) First-half Change € million 2008 2009 Sales 15,2991 14,929 -2% Operating profit 1,099 789 -28% Cost of net debt (132) (171) +30% o/w financial income 68 51 -25% o/w financial expenses (200) (222) +11% Other financial income and expenses (21) 3

  39. Slide 39: Condensed consolidated income statement (2/2)

    BOUYGUES: condensed consolidated income statement (2/2) First-half Change € million 2008 2009 Income tax expense (305) (208) -32% Share of profits and losses of associates 177 206 +16% Net profit from continuing operations 818 619 -24% Minority interests (117) (72) -38% Net profit attributable to th

  40. Slide 40: Sales by business area

    Sales by business area First-half € million Change 2008 2009 Bouygues Construction 4,594 4,758 +4% Bouygues Immobilier 1,300 1,433 +10% Colas 5,631 5,116 -9% TF1 1,3531 1,130 -16% Bouygues Telecom 2,465 2,625 +6% Holding company and other 237 248 +5% Intra-Group elimination (281) (381) ns TOTAL 15,2

  41. Slide 41: Contribution of business areas to Group sales

    Contribution of business areas to Group sales First-half € million Change 2008 2009 Bouygues Construction 4,448 4,531 +2% Bouygues Immobilier 1,299 1,420 +9% Colas 5,609 5,079 -9% TF1 1,3411 1,120 -16% Bouygues Telecom 2,457 2,616 +6% Holding company and other 145 163 ns TOTAL 15,2991 14,929 -2% o/w

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

    Contribution of business areas to Group EBITDA First-half € million Change 2008 2009 Bouygues Construction 269 304 +€35m Bouygues Immobilier 135 132 -€3m Colas 344 286 -€58m TF1 237 90 -€147m Bouygues Telecom 755 702 -€53m Holding company and other 3 21 +€18m TOTAL 1,743 1,535 -€208m

  43. Slide 43: Contribution of business areas to Group operating profit

    Contribution of business areas to Group operating profit First-half € million Change 2008 2009 Bouygues Construction 186 164 -€22m Bouygues Immobilier 122 104 -€18m Colas 155 75 -€80m TF1 171 38 -€133m Bouygues Telecom 469 415 -€54m Holding company and other (4) (7) -€3m TOTAL 1,099 789 -€310m

  44. Slide 44: Quarterly operating income by business area

    Quarterly operating income by business area First-quarter Second-quarter € million 2009 Change 2009 Change Bouygues Construction 57 -24% 107 -4% Bouygues Immobilier 42 -16% 62 -14% Colas (115) -72% 190 -15% TF1 (12) ns 50 -31% Bouygues Telecom 201 -12% 214 -11%

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

    Contribution of business areas to Group net profit  Group share First-half € million Change 2008 2009 Bouygues Construction 164 121 -€43m Bouygues Immobilier 61 60 -€1m Colas 126 57 -€69m TF1 54 21 -€33m Bouygues Telecom 275 240 -€35m Alstom 151 182 +€31m Holding company and other (130) (134) -€4m

  46. Slide 46: Quarterly net income by business area

    Quarterly net income by business area First-quarter Second-quarter € million 2009 Change 2009 Change Bouygues Construction 48 -31% 73 -22% Bouygues Immobilier 23 -4% 37 = Colas (70) -159% 128 -18% TF1 6 -91% 43 -22% Bouygues Telecom 131 -13% 137 -13%

  47. Slide 47: Contribution of business areas to Group cash flow

    Contribution of business areas to Group cash flow First-half € million Change 2008 2009 Bouygues Construction 213 242 +€29m Bouygues Immobilier 115 89 -€26m Colas 344 289 -€55m TF1 218 85 -€133m Bouygues Telecom 757 707 -€50m Holding company and other 63 104 +€41m TOTAL 1,710 1,516 -€194m

  48. Slide 48: Contribution of business areas to net capital expenditure

    Contribution of business areas to Group net capital expenditure First-half € million Change 2008 2009 Bouygues Construction 123 64 -€59m Bouygues Immobilier 4 2 -€2m Colas 230 136 -€94m TF1 83 45 -€38m Bouygues Telecom 375 285 -€90m Holding company and other 18 39 +€21m TOTAL 833 571 -€262m

  49. Slide 49: Contribution of business areas to free cash flow

    Contribution of business areas to Group free cash flow First-half € million Change 2008 2009 Bouygues Construction 65 131 +€66m Bouygues Immobilier 67 64 -€3m Colas 60 111 +€51m TF1 69 25 -€44m Bouygues Telecom 221 276 +€55m Holding company and other (42) (41) +€1m TOTAL 440 566 +€126m Free cash flo

  50. Slide 50: Condensed consolidated balance sheet

    BOUYGUES: condensed consolidated balance sheet End- End- Reminder € million Dec June Change end-June 2008 2009 2008 Non current assets 18,670 17,674 -€996m 18,040 Current assets 16,818 16,619 -€199m 16,055 TOTAL ASSETS 35,488 34,293 -€1,195m 34,095 Shareholders’ equity 8,765 8,642 -€123m 8,033 Non c

  51. Slide 51: Change in net cash position in first half of 2009

    BOUYGUES: change in net cash position in the first half of 2009 Net cash at Net cash at 31 Dec 2008 €m 30 June 2009 (4,916) (6,259) Acquisitions/ disposals +98 Alstom1 Capital Impact of scope +71 transactions2 of consolidation Other +163 +27 +11 Dividends paid -675 Operation -940 H1 2008 (4,288) -99

  52. Slide 52: Change in cash position in first half of 2009

    BOUYGUES: change in cash position in the first half of 2009 €m Breakdown of operation Change in WCR & other -1,506 Net capital expenditure -571 Net cash flow +1,137 Operation -€940m H1 2008 +1,273 -833 -1,499 Operation: -1,059

  53. Slide 53: Group: net cash by business area

    BOUYGUES GROUP: net cash by business area End- End- Reminder € million Dec June Change end-June 2008 2009 2008 Bouygues Construction 2,592 2,500 -€92m 2,178 Bouygues Immobilier 1 (138) -€139m (313) Colas (6) (919) -€913m (702) TF1 (699) (820) -€121m (706) Bouygues Telecom (107) (681) -€574m (344) Ho

  54. Slide 54: Financing

    BOUYGUES: financing €m Available cash: €6.1 billion 6,000 5,000 Undrawn 4,000 MLT credit lines 3,000 2,000 1,000 Cash 0 Evenly spread debt repayment schedule Substantial liquidity

  55. Slide 55: Outlook and Objectives section

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

  56. Slide 56: 2009 sales target

    BOUYGUES: 2009 sales target 2009 target YoY € million 2008 change In March In June In August Bouygues Construction 9,497 9,300 9,000 9,200 -3% Bouygues Immobilier 2,924 2,700 2,700 2,700 -8% Colas 12,789 12,300 12,300 12,300 -4% TF1 2,595 2,360 2,250 2,250 -13% Bouygues Telecom 5,089 5,200 5,200 5,2

  57. Slide 57: Conclusion (1/2)

    BOUYGUES: conclusion (1/2)  In the Construction businesses  Order books remain at a satisfactory level  The volume of probable business is high  The first effects of the stimulus plans are expected in the second half of 2009  TF1’s efforts over the last two years to restructure and adapt are st

  58. Slide 58: Conclusion (2/2): Bouygues is weathering the crisis

    BOUYGUES: conclusion (2/2) Thanks to  Its strong corporate culture shared by all  Its management’s experience and ability to adapt  The range of its business areas and geographical locations  Its healthy financial situation Bouygues is weathering the crisis

  59. Slide 59: Calendar

    BOUYGUES: calendar (CET1) 2009  12 November 2009 Nine-month 2009 sales 5.45pm  1 December 2009 Nine-month 2009 earnings 5.45pm 2010  2 March 2010 Full-year 2009 sales and earnings 5.45pm  3 March 2010 Analysts’ meeting in Paris 11.00am 1All times are Central European Times

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Bouygues — H1 2009 Earnings Presentation on 6ix