Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2019 Earnings Presentation
51 slides from Bouygues Sa's earnings presentation, May 16, 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 RESULTS THURSDAY 16 MAY 2019 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: IFRS 16
IFRS 16 ⚫ APPLICATION OF IFRS 16 (LEASE OBLIGATIONS) FROM 1 JANUARY 2019 ◼ The 2018 financial statements have been restated following the first-time application of IFRS 16 (“Lease”) effective as of 1 January 2019. The impact on Q1 2018 is an increase of net profit attributable to the Group by €2m, f
Slide 4: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 4
Slide 5: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS ◼ As every year, Q1 earnings are not indicative of the Group’s full-year results ◼ Strong commercial momentum in the three sectors of activity ◼ Significant improvement in Group current operating profit year-on-year boosted by Bouygues Telecom and TF1 ◼ Outlook confirmed Offshore
Slide 6: Group Key Figures
GROUP KEY FIGURES ◼ Strong increase in Q1 2019 sales year-on-year > +8% like-for-like and at constant exchange rates €m Q1 2018 Q1 2019 Change restated ◼ Sharp improvement in Group current operating profit Sales 6,826 7,933 +16%a driven by Bouygues Telecom and TF1 despite the o/w France 4,669 4,995
Slide 7: Sharp improvement in Group current operating profit
SHARP IMPROVEMENT IN GROUP CURRENT OPERATING PROFIT Q1 2018 €m Q1 2019 Change restated Current operating profit/(loss) (94) (58) +€36m o/w Bouygues Telecom 59 91 +€32m o/w TF1 39 63 +€24m o/w Construction businesses (184) (207) -€23m Current operating profit/(loss) after Leasesa (108) (73) +€35m o/w
Slide 8: Financial Structure
FINANCIAL STRUCTURE ⚫ THE USUAL SEASONAL IMPACTS EXPLAIN THE CHANGE IN NET DEBT BETWEEN END-DECEMBER 2018 AND END-MARCH 2019 ⚫ CHANGE IN NET DEBT BETWEEN END-MARCH 2018 AND END-MARCH 2019 MAINLY REFLECTS THE ACQUISITIONS OF > Alpiq Engineering Services by Bouygues Construction and Colas > aufeminin
Slide 9: Change in Net Debt Position (1/2)
CHANGE IN NET DEBTa POSITION (1/2) €m Net debta at 31/12/2018 Net debta at 31/03/2019 (3,612) (5,111) -157 -19 Operations Acquisitions / Capital transactions Disposalsb and otherc -1,323 Q1 2018 (1,902) -627d -25e -1,278 (3,832) Restated (a) See glossary for new definition on slide 50 (b) Including
Slide 10: Change in Net Debt Position (2/2)
CHANGE IN NET DEBT POSITION (2/2) €m Breakdown of operations Repayment of lease Net cashflowa obligations Net Capex -83 Change in WCR +207 and otherb -436 -1,323 +124 Net cashflow after Leases -1,011 Q1 2018 Restated +204 -76 -368 -1,038 -1,278 +128 Net cashflow after Leases (a) Net cash flow = cash
Slide 11: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 11
Slide 12: Construction Businesses
CONSTRUCTION BUSINESSES Construction of Line 15 of the Grand Paris Express – Paris – France Sways – Issy les Moulineaux – France Tramway extension – Toulouse – France 12
Slide 13: Backlog at a record level
Backlog (€b) BACKLOG AT A RECORD LEVEL 34.4 +9%a 31.7 2.4 2.7 -10% 10.0 8.4 +19%b ⚫ BACKLOG AT END-MARCH 2019: €34.4BN ◼ Up 9% year-on-year and up 4% at constant exchange rates and restated for major changes in the scope of consolidation 22.0 20.6 ◼ 61% of the backlog at Bouygues Construction and Co
Slide 14: Stable backlog in France
STABLE BACKLOG IN FRANCE Backlog in France (€b) EXAMPLE OF CONTRACT WON IN Q1 2019 -3% 15.1 14.6 +1% 0.7 excl. Axionea -9% 2.3 2.5 3.5 +7% 3.8 +2% excl. 8.4 Axionea 8.5 End-March 2018 End-March 2019 Axione Bouygues Immobilier Colas Bouygues Construction (a) After restatement in 2018 of Axione’s back
Slide 15: Upbeat international markets
UPBEAT INTERNATIONAL MARKETS EXAMPLE OF CONTRACTS WON IN Q1 2019 International backlog (€b) 19.7 +19%a -30% 0.1 16.5 0.1 6.2 +29%b 4.8 University of Brighton’s Moulsecoomb campus (€181m) +16%c 13.5 11.6 End-March 2018 End-March 2019 (a) Up 6% at constant exchange rates and restated for major changes
Slide 16: Key figures in the construction businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES Q1 2018 €m Q1 2019 Change restated ⚫ LIKE EVERY YEAR, Q1 EARNINGS ARE NOT INDICATIVE Sales 5,058 5,934 +17%a OF FULL-YEAR RESULTS o/w France 2,922 3,035 +4% ◼ Growth in Roads in France and improvement in o/w international 2,136 2,899 +36% specialized activi
Slide 17: Le Bazar de la charité – TF1 Studio for Netflix
Le Bazar de la charité – TF1 Studio for Netflix 17
Slide 18: Substantial increase in TF1 profitability
SUBSTANTIAL INCREASE IN TF1 PROFITABILITY ⚫ SALES UP 11% AT €554M ◼ Positive impact of the acquisitions completed Q1 2018 €m Q1 2019 Change in 2018, notably in digital with aufeminin restated Sales 499 554 +11%a ◼ Good performance in linear and non-linear Current operating profit 39 63 +€24m broadca
Slide 19: VLLLLLLLLLLLLL LYDTDL LL
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Slide 20: Good commercial momentum
GOOD COMMERCIAL MOMENTUM Mobile plan customer base exc. MtoMa (m of customers) 11.0 10.4 ⚫ 16.8 MILLION MOBILE CUSTOMERS AT END-MARCH 2019 9.9 ◼ +459,000 customers in Q1 2019 9.3 8.7 ◼ +149,000 plan customers excluding MtoMa in Q1 2019 ⚫ 3.7 MILLION FIXED CUSTOMERS AT END-MARCH 2019 Q1 2015 Q1 2016
Slide 21: Strong results at Bouygues Telecom
STRONG RESULTS AT BOUYGUES TELECOM Q1 2018 €m Q1 2019 Change ⚫ SOLID TOP LINE GROWTH restated Sales 1,281 1,451 13%a ◼ Sales from services up 6% year-on-year o/w Sales from services 1,031 1,094 +6% > Growth in Mobile and Fixed customer base EBITDA after Leasesb 250 300 +€50m > Stabilization of Mobil
Slide 22: Two strategic acquisitions in BtoB
TWO STRATEGIC ACQUISITIONS IN BtoB 2018 figures 2018 figures Simple, reliable and competitive solutions Expertise in core network, voice, IP for SME and SOHOa and hosting services for SME Revenues Current operating profit Revenues Current operating profit €29.4m €3.2m €32.3m €2.1m 150 employees 14,0
Slide 23: French BtoB market
FRENCH BtoB MARKET BOUYGUES TELECOM ENTREPRISES IS THE 3RD BtoB TELECOM OPERATOR IN THE CONNECTIVITY MARKET OVERALL MARKET = €30bn MAIN PLAYERS Sizea (€bn) IT Applications 6.2 Cloud / datacenters 6.8 Security 3.0 Managed services 2.5 Network/Connectivit Network/Connectivity 7.5 y Hardware 4.5 23 (a)
Slide 24: Opportunities to grow in the SME and fixed markets
OPPORTUNITIES TO GROW IN THE SME AND FIXED MARKETS SMALL & MIDDLE ENTERPRISES LARGE COMPANIES Market Size (€bn) Market Size (€bn) 3.0 2.5 1.4 0.6 Fixed Mobile Fixed Mobile Market share (%) Market share (%) Others Others Leader Leader Fixed Mobile Fixed Mobile Source: Arthur D. Little 24
Slide 25: Bouygues Telecom Entreprises, a significant growth driver
BOUYGUES TELECOM ENTREPRISES, A SIGNIFICANT GROWTH DRIVER Small&and Small Middle Middle Enterprises Enterprises Large Large companies companies Cloud/datacenter Services related to connectivity Security Propose Partnership Managed Services end-to-end service offerings with specialized companies Netw
Slide 26: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 26
Slide 27: Condensed consolidated income statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) Q1 2018 €m Q1 2019 Change restated Sales 6,826 7,933 +16%a Current operating profit/(loss) (94) (58) +€36m Current operating profit/(loss) after Leasesb (108) (73) +€35m Other operating income and expenses 55 15 -€40m Operating profit/(loss) (39)c (43)d
Slide 28: Condensed consolidated income statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) Q1 2018 €m Q1 2019 Change restated Income tax 54 25 -€29m Share of net profit of joint ventures and associates 82 37 -€45m o/w Alstom 73 33 -€40m Net profit from continuing operations 27 (39) -66m Net profit attributable to non-controlling interests (13)
Slide 29: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 29
Slide 30: Outlook confirmed
OUTLOOK CONFIRMED ◼ In 2019, improve Group profitability and generate €300 million of free cash flowa at Bouygues Telecom ◼ Within 2 years, improve Group free cash flow generation after WCRb to €1 billion thanks to the contribution of the three sectors of activity (a) Net cash flow (determined after
Slide 31: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEX 31
Slide 32: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Sales from mobile services (€m) 705 713 750 737 2,904 719 734 779 754 2,986 751 Sales from fixed services (€m) 278 283 296 309 1,166 312 309 319 330 1,270 343 Mobile customer ba
Slide 33: FTTH premises marketed (millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Total premises on the marketc Bouygues Telecom at end-March 2019 Bouygues Telecom at end-2019 Very Dense 6.4 Area 3.0 4.5 Medium Dense Area 13.2 AMIId 6.5 35.5 4.5 8 12 Public Initiative 15.9 Network (PIN) Aread 0.4 1 (a) Fiber-To-The-Home – optical fiber fr
Slide 34: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Backlog by geographic region (at end-March 2019) Order intakea (€b) International 6% 2.5 2.4 -2% 3% 30% 1.2 1.5 +27% 39% 1.3 -29% 0.9 22% Q1 2018 Q1 2019 France Asia and Middle East Europe (excl. France) Americas Africa (a) Contracts are booked as or
Slide 35: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€m) Q1 2018 Commercial property €m Q1 2019 Change +2% restated 471 482 Sales 487 527 +8%a 6 20 X3.3 o/w residential 436 487 +12% -1% o/w commercial 51 40 -22% 465 462 Current operating profit 30 14 -€16m Current operating m
Slide 36: Key figures at Colas
ANNEX KEY FIGURES AT COLAS Q1 2018 Backlog (€b) €m Q1 2019 Change restated +19%a Sales 1,898 2,287 +20%a 10,0 o/w France (incl. French overseas 1,166 1,353 +16% territories) 8,4 o/w international 732 934 +28% 3,8 +7% b Current operating profit (298) (298) +€0m 3,5 Current operating profit after (301
Slide 37: A strong and selective international presence
ANNEX A STRONG AND SELECTIVE INTERNATIONAL PRESENCE BOUYGUES OPERATES IN GROWING COUNTRIES WITH A LOW-RISK PROFILE NORTH AMERICA NORTHERN AND CENTRAL EUROPE United States: +2.5% United Kingdom: +1.5% Canada: +1.9% Switzerland: +1.8% RUSSIA: +1.6% 0% 41% 28% SOUTHERN EUROPE 1% Spain: +2.2% MIDDLE EAS
Slide 38: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Q1 2018 Lfl & €m Q1 2019 Change restated constant FXa Construction businessesb 5,058 5,934 +17% +8% o/w Bouygues Construction 2,739 3,148 +15% +1% o/w Bouygues Immobilier 487 527 +8% +8% o/w Colas 1,898 2,287 +20% +14% TF1 499 554 +11% +4% Bouygues Telecom 1,281 1,4
Slide 39: Contribution to Group EBITDA after Leases by sector
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY Q1 2018 €m Q1 2019 Change restated Construction businesses (199) (145) +€54m o/w Bouygues Construction 51 105 +€54m o/w Bouygues Immobilier 3 (6) -€9m o/w Colas (253) (244) +€9m TF1 101 116 +€15m Bouygues Telecom 250 300 +€50m Ho
Slide 40: Contribution to Group current operating profit
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT Q1 2018 €m Q1 2019 Change restated Construction businesses (184) (207) -€23m o/w Bouygues Construction 84 77 -€7m o/w Bouygues Immobilier 30 14 -€16m o/w Colas (298) (298) +€0m TF1 39 63 +€24m Bouygues Telecom 59 91 +€32m Holding company and other
Slide 41: Contribution current operating profit after Leases
ANNEX CONTRIBUTION CURRENT OPERATING PROFIT AFTER LEASESa Q1 2018 €m Q1 2019 Change restated Construction businesses (191) (213) -€22m o/w Bouygues Construction 81 74 -€7m o/w Bouygues Immobilier 29 14 -€15m o/w Colas (301) (301) +€0m TF1 38 62 +€24m Bouygues Telecom 53 84 +€31m Holding company and
Slide 42: Contribution to Group operating profit
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT Q1 2018 €m Q1 2019 Change restated Construction businesses (184) (207) -€23m o/w Bouygues Construction 84 77 -€7m o/w Bouygues Immobilier 30 14 -€16m o/w Colas (298) (298) +€0m TF1 33 63 +€30m Bouygues Telecom 120 106 -€14m Holding company and other (8) (
Slide 43: Contribution to operating profit after Leases
ANNEX CONTRIBUTION TO OPERATING PROFIT AFTER LEASESa Q1 2018 €m Q1 2019 Change restated Construction businesses (191) (213) -€22m o/w Bouygues Construction 81 74 -€7m o/w Bouygues Immobilier 29 14 -€15m o/w Colas (301) (301) +€0m TF1 32 62 +€30m Bouygues Telecom 114 99 -€15m Holding company and othe
Slide 44: Contribution to net profit attributable to the Group
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP Q1 2018 €m Q1 2019 Change restated Construction businesses (130) (158) -€28m o/w Bouygues Construction 63 55 -€8m o/w Bouygues Immobilier 17 6 -€11m o/w Colas (210) (219) -€9m TF1 11 18 +€7m Bouygues Telecom 70 53 -€17m Alstom 73 33 -€40m Ho
Slide 45: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-Dec 2018 End-March €m Change restated 2019 Non-current assets 20,882 21,287 +€405m Current assets 17,968 18,006 +€38m Held-for-sale assets and operations 340 338 -€2m TOTAL ASSETS 39,190 39,631 +€441m Shareholders' equity 11,040 10,964 -€76m Non-current
Slide 46: Contribution to Group net cash flow
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa Q1 2018 €m Q1 2019 Change restated Construction businesses (115) (145) -€30m o/w Bouygues Construction 120 113 -€7m o/w Bouygues Immobilier 10 (1) -€11m o/w Colas (245) (257) -€12m TF1 92 108 +€16m Bouygues Telecom 259 278 +€19m Holding company and other (3
Slide 47: Contribution to net capital expenditure
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE Q1 2018 €m Q1 2019 Change restated Construction businesses 101 86 -€15m o/w Bouygues Construction 20 57 +€37m o/w Bouygues Immobilier 2 2 +€0m o/w Colas 79 27 -€52m TF1 40 45 +€5m Bouygues Telecom 224 303 +€79m Holding company and other 3 2 -€1m TOTAL 36
Slide 48: Contribution to Group free cash flow
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa Q1 2018 €m Q1 2019 Change restated Construction businesses (252) (275) -€23m o/w Bouygues Construction 82 34 -€48m o/w Bouygues Immobilier 6 (5) -€11m o/w Colas (340) (304) +€36m TF1 48 58 +€10m Bouygues Telecom (1) (59) -€58m Holding company and other (35
Slide 49: Net debt/Net surplus cash
ANNEX NET DEBT (-)/NET SURPLUS CASHa (+) End-Dec 2018 End-March €m Change restated 2019 Bouygues Construction 3,119 2,567 -€552m Bouygues Immobilier (238) (322) -€84m Colas (475) (1,068) -€593m TF1 (28) 34 +€62m Bouygues Telecom (1,275) (1,537) -€262m Holding company and other (4,715) (4,785) -€70m
Slide 50: Glossary (1/2)
ANNEX GLOSSARY (1/2) EBITDA AFTER LEASES ◼ Current operating profit after Leases (i.e. current operating profit after taking account of the interest expense on lease obligations), before (i) net depreciation and amortization expense on property, plant and equipment and intangible assets, (ii) net ch
Slide 51: Glossary (2/2)
ANNEX GLOSSARY (2/2) 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