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Bouygues SA — Debt Investor Presentation (September 2008)

43 slides from Bouygues SA's debt investor presentation, Sep 30, 2008

  1. Slide 1: Bouygues Group presentation - Fixed income investors

    Bouygues Group presentation Fixed income investors Philippe MARIEN, C.F.O. London- London- 30 September 2008 1 2 This presentation is intended for general information purposes only. Nothing on this presentation constitutes an invitation, inducement or offer to engage in investment activity, or to su

  2. Slide 2: The Bouygues Group today: three business areas and a stake

    3 THE BOUYGUES GROUP TODAY : three business areas and a stake Roadworks Building / Civil Works Property (1984) (1952) (1956) 96.7 % 100 % 100 % CONSTRUCTION POWER - TRANSPORT 30% stake Cooperation agreement (2006) (1994) (1987) TELECOMS MEDIA 89.5 % 43 % All figures as of 30 June 2008 3 4 BOUYGUES:

  3. Slide 3: Key operating figures and financial position in H1 2008

    5 BOUYGUES GROUP: key operating figures in H1 2008 H1 Change € million 2008 vs H1 2007 Sales 15,310 +15% Operating profit 1,099 +3% Net profit att. to the Group 701 +6% „ H1 2008 highlights 9 Solid operating performance 9 Operating profit up 16% excluding TF1 9 Strong business activity in the Constr

  4. Slide 4: Financial position in H1 2008 (2/2); Bouygues Construction profile

    7 BOUYGUES GROUP: financial position in H1 2008 (2/2) Change € million H1 2008 vs H1 2007 Cash flow 1,710 +€124m - Cost of net debt -132 -€37m - Income tax -305 -€19m - Net capital expenditure -833 -€220m Free cash flow 440 -€152m Cash flow continued to rise Capital expenditure to prepare for the fu

  5. Slide 5: Bouygues Construction: key figures and order intakes

    9 BOUYGUES CONSTRUCTION: key figures 1st half € million Change 2007 2008 Sales 3,818 4,594 +20% o/w France 2,345 2,653 +13% o/w international 1,473 1,941 +32% Operating margin 3.9% 4% +0.1 pt Net profit att. to the Group 148 164 +11% CB31 Tower in the La Défense business district outside Paris „ Fir

  6. Slide 6: Bouygues Construction: order book and outlook

    11 BOUYGUES CONSTRUCTION: order book Long-term order book (after Y+5) At 30 June 2008 For execution Y+2 to Y+5 + 26% For execution in Y+1 12.3 Middle East For execution in Y 9.8 After 1% France +€2.5bn 1.2 2013 Americas 47% 7.6 +€2.2bn 2.3 2010 to 2% 0.9 2013 1.4 Africa 79% 0.7 6% 1.2 4.7 2009 Asia

  7. Slide 7: Bouygues Immobilier: profile and key figures

    13 BOUYGUES IMMOBILIER: a healthy profile Sales 2007 Europe 6% Commercial France 25% 94% Residential 75% „ Tightly controlled business activities 3 94% of sales generated in France: no exposure to fragile markets 3 a "pure player" strategy without diversification into related business areas (rental

  8. Slide 8: Bouygues Immobilier: reservations and order book

    15 BOUYGUES IMMOBILIER: reservations „ Definition: Residential property reservations are always net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised sales) 1,350 -14% 1,400 Commercial 1,166 1,200 Residential 480 1,000 906 -15% 410 € million 740

  9. Slide 9: Residential market and property market situation

    17 RESIDENTIAL MARKET: new home sales Number of housing units sold in first-half „ Bouygues Immobilier (France) „ French market 4,733 69,583 -31% -13% 4,111 48,215 2007 2008 2007 2008 Source: Commissariat général au développement durable - 26 August 2008 Bouygues Immobilier outperformed the market 1

  10. Slide 10: Bouygues Immobilier outlook; Colas profile

    19 BOUYGUES IMMOBILIER: outlook „ Bouygues Immobilier's priorities 9 manage sharp increase in construction starts in 2008 and 2009 due to high level order book 9 control risk on new programmes „ Bouygues Immobilier's strengths 9 secured order book providing good visibility 9 competitive advantages (

  11. Slide 11: Colas: 21 years of uninterrupted growth; key figures

    21 COLAS : 21 years of uninterrupted growth French GAAP IFRS 12 000 11,673 10 000 Sales : 12 .1 % 8 000 rowth an nual g €m e 6 000 A verag 4 000 2 000 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2007 500 474 450 400 Net profit 17 .7 % 350 ro wth: ual g e ann 300 € m 250 e ra g Av 200 15

  12. Slide 12: Colas: order book and outlook

    23 COLAS: order book International and French overseas territories Mainland France € million 7,095 6,807 +4% 3,590 3,674 3,217 3,421 End-June 2007 End-June 2008 Moderate growth in business activity 23 24 COLAS: outlook „ Market trends 9 roadworks in France: stabilising at high levels 9 roadworks in

  13. Slide 13: TF1: profile and key figures

    25 TF1: profile of the French leader „ The leading channel in France 9 27.6% of audience share (1) : an unchallenged leadership 9 58.7% of advertising market share (2) „ A successful diversification, driver of growth over the next years 9 Thematic channels: Eurosport, LCI, TV Breizh, TMC… 9 Audiovis

  14. Slide 14: Audience on the French TV market; TF1 outlook

    27 Audience on the French TV market National* audience share on Individuals 4 years or + 27,6 January – June 2008 17,8 13,3 12,4 11,2 3,3 3,1 2,0 1,7 1,7 1,4 1,1 0,9 0,7 0,6 0,5 0,3 0,3 TF1 F2 F3 M6 C+ F5 TMC ARTE W9 Gulli NT1 Nrj 12 F4 Direct 8 Virgin I-Télé BFM TV Other 17 Cab/Sat *Estimated audie

  15. Slide 15: Bouygues Telecom: profile and key figures

    29 BOUYGUES TELECOM: profile „ 3rd mobile operator in France 9 GSM license awarded in 1994, commercial launch in 1996 9 9.3 million customers and 20.5% market share in value * 9 A favorable customer mix with 75% of Contract * 9 Constant innovation in the Contract segment, in order to enhance usage w

  16. Slide 16: Bouygues Telecom: value market share

    31 BOUYGUES TELECOM: value market share Comparison of indexed market share of the three operators (excluding MVNOs) 100 = Q3 2005 Sales from network Orange SFR Bouygues Telecom Launch of Neo 106 105 20.5% 104 103 102 101 100 99 42.2% 98 37.3% 97 96 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-

  17. Slide 17: French telecoms market: competitive context; consumer line-up

    33 FRENCH TELECOMS MARKET: competitive context France's competitive telecoms landscape has changed: „ Consolidation in the sector: two heavyweights on the converged fixed-mobile market Î Bouygues Telecom has taken a pragmatic approach to fixed-line market „ Unlimited services now widespread 9 unlimi

  18. Slide 18: Fixed-line services for consumers; capital expenditure

    35 BOUYGUES TELECOM: fixed-line services for consumers „ Launch on 20 October 2008 with Bouygues Telecom customers as priority targets 9 a differentiating service : an option to include calls to all mobile phones 9 latest - generation technology „ Bouygues Telecom's strengths 9 No. 1 for customer re

  19. Slide 19: Bouygues Telecom outlook; Bouygues - Alstom

    37 BOUYGUES TELECOM: outlook 2008 Sales target (€ million) 2007 Change target Total sales 4,796 5,015 +5% o/w sales from network 4,464 4,640 +4% 37 38 BOUYGUES - ALSTOM „ Alstom's contribution to Bouygues' net profit in H1 2008: €142m 9 share of Alstom's net profit: €151m* (vs. €64m in H1 2007) 9 co

  20. Slide 20: Free cash flow 2003-2007; change in cash position

    39 BOUYGUES GROUP: free cash flow in 2003 - 2007 Cash flow Net capital expenditure Free cash flow 3 519 3 090 3 151 € million 2 714 2 073 1 604 1 679 1 133 1 229 1 047 1 143 1 007 1 104 788 972 2003 2004 2005 2006 2007 NB: On this chart the other components of Free Cash Flow are not shown: financial

  21. Slide 21: Contribution to net cash; Bouygues financing

    41 Contribution of business areas to Group net cash End-June € million Change 2007 2008 Bouygues Construction 1,918 2,178 +€260m Bouygues Immobilier (121) (313) -€192m Colas (535) (702) -€167m TF1 (572) (706) -€134m Bouygues Telecom (33) (344) -€311m Holding company and other (5,772) (6,413) -€641m

  22. Slide 22: A favourable financial profile; 2008 sales targets

    43 BOUYGUES : a favourable financial profile „ A sound financial structure 9 A low leverage 9 A very substantial liquidity „ A limited exposure to risk 9 Small exposure to currency and interest rates risks 9 A well-balanced portfolio of businesses „ No significant off-balance sheet commitment 43 44

  23. Slide 23: Bouygues outlook; Appendixes

    45 BOUYGUES: outlook „ Strong visibility for 2008 „ Beyond 2008, the growth drivers of the Group's markets are solid 9 infrastructure and power needs 9 strong demand for housing in France (particularly social housing) 9 development of mobile services „ Bouygues nevertheless remains prudent about the

  24. Slide 24: Condensed consolidated income statement; contribution to sales

    47 BOUYGUES: condensed consolidated income statement 1st half € million Change 2007* 2008 Sales 13,298 15,310 +15% Operating profit 1,062 1,099 +3% Cost of net debt (95) (132) +39% Income tax expense (286) (305) +7% Total net profit 806 818 +1% Minority interests (147) (117) -20% Net profit attribut

  25. Slide 25: Bouygues Construction sales evolution; contribution to EBITDA

    49 BOUYGUES CONSTRUCTION: sales evolution Stabilization of revenues at a high level € million Step from H1 to H2 In bubbles year-on-year growth 2007 Arrows : quarter-on-quarter sequential growth +12% +20% 9 300** 8 340 +13% 6 923 +23% +20% +4% +15% +17% +11% +18% 4 522 +2% 4 594 4 706* +2% 3 662 +4%

  26. Slide 26: Contribution to operating profit and net profit

    51 Contribution of business areas to Group operating profit 1st half € million Change 2007* 2008 Bouygues Construction 150 186 +€36m Bouygues Immobilier 72 122 +€50m Colas 136 155 +€19m TF1 264 171 -€93m Bouygues Telecom 447 469 +€22m Holding company and other (7) (4) +€3m TOTAL 1,062 1,099 +3% * Ap

  27. Slide 27: Working capital requirement; contribution to cash flow

    53 BOUYGUES GROUP: working capital requirement in H1 2008 By business area € million + 215 ƒ Book-keeping items related to Bouygues Confiance 4, share issue for employees + 81 -662 1 - 240 ƒ Less favourable situation compared to a positive 2007 context -1 505 -843 - 158 ƒ Longer time to sell the pro

  28. Slide 28: Contribution to net capital expenditure and free cash flow

    55 Contribution of business areas to Group net capital expenditure „ Net capital expenditure 1st half € million Change 2007 2008 Bouygues Construction 133 123 -€10m Bouygues Immobilier 3 4 +€1m Colas 216 230 +€14m TF1 36 83 +€47m Bouygues Telecom 215 375 +€160m Holding company and other 10 18 +€8m T

  29. Slide 29: Return on capital employed; key figures over five years

    57 BOUYGUES: return on capital employed (1) At business level FY 2005 FY 2006 FY 2007 Bouygues Construction (2) +++ +++ +++ Bouygues Immobilier (3) +++ +++ +++ Colas 34.6% 33.5% 32.4% TF1 15.5% 13.4% 11.2% Bouygues Telecom 15.4% 16.1% 22.0% At Group level Bouygues 16.5% 14.8% 14.4% (1) Current opera

  30. Slide 30: Key figures per share; condensed balance sheet

    59 BOUYGUES GROUP: key figures per share (€) „ Earnings per share „ Dividend per share (excluding exceptional payout) X3 1.5 4.06 X3 3.71 1.2 2.72 0.9 2.57 2.51 3.09 0.75 2.48 0.5 1.34 2.11 2.01 2003 2004 2004 2005 2006 2007 2003 2004 2005 2006 2007 French GAAP IFRS Non-recurring items „ A stable pa

  31. Slide 31: Appendixes; economic context

    61 APPENDIXES „ APPENDIX 1: FINANCIAL DATA Slide 47 „ APPENDIX 2: BUSINESS DRIVERS Slide 61 61 62 BOUYGUES: economic context „ Tensions have emerged after several years of economic prosperity 9 financial crisis: credit crunch, highly volatile stock markets 9 property slowdown of varying magnitude in

  32. Slide 32: Breakdown by business area in 2007; public-private projects

    63 BOUYGUES GROUP: breakdown by business area in 2007 2007 revenues breakdown 2007 operating profit by business area breakdown by business area 16% 1% 14% 9% 28% 34% 9% Bouygues Construction 7% Bouygues Immobilier 29% Colas 14% 39% TF1 2007 net profit breakdown 2007 free cash flow by business area B

  33. Slide 33: Life cycle of major projects

    65 BOUYGUES CONSTRUCTION: the life cycle of major projects „ Progress in sales and margins of large projects 50% 100% 80% PROGRESS ss 60% 40% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TIME SALES MARGIN The sales recognition is not linear due to the phasing of the execution 65 66 BOUYGUES IMMOB

  34. Slide 34: Colas: strengths; presence in North America

    67 COLAS: strengths 2007 figures „ Material reserves 9 624 quarries and gravel pits 9 Over 2.8 billion tonnes of aggregate supplies, i.e. more than 20 years' output 9 117 million tonnes of aggregates manufactured in 2006 (x2.4 in 10 years) Î A world leader in quarry ownership „ Asphalt mixes & emuls

  35. Slide 35: TF1: challenges ahead; Bouygues Telecom businesses and SMEs

    69 TF1: 4 challenges ahead 1. Technology : large screens, HD, IPTV, Catch-up, VOD 2. Competition : DTT, ADSL, Cable and Satellite, Internet 3. Finance : profitability and growth 4. Customers : shift in consumer behaviour 69 70 BOUYGUES TELECOM: businesses and SMEs Strategy „ Convergence is becoming

  36. Slide 36: Agreement with Neuf Cegetel; why offer consumer ADSL

    71 BOUYGUES TELECOM: agreement with Neuf Cegetel „ Agreement signed in October 2007 was finalised on 30 June 2008 „ Via a wholesale agreement, 300,000 customers, hosted on its network „ Bouygues Telecom has acquired ownership of 9 a nationwide fibre-optic network 9 DSLAM integrated in 622 subscriber

  37. Slide 37: Bouygues Telecom: usage growth; commercial indicators

    73 BOUYGUES TELECOM: usage growth Bouygues Telecom market share % of total market volume 25% Share of outgoing voice calls* Launch of Neo 24% Value market share excl. MVNOs 23% 22% 22% 21% 20.5% 20% 19% 19% 18.9% Sources: ARCEP and Bouygues Telecom 18% Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07

  38. Slide 38: Increasing government intervention; mobile services for consumers

    75 FRENCH TELECOMS MARKET: increasing government intervention „ Sales and marketing: Chatel law 9 10-day notice period for cancelling subscriptions (30 days previously) 9 subscribers able to terminate contracts from the 13th month, etc. „ Competition 9 opinion issued by French Competition Council (C

  39. Slide 39: Businesses and SMEs; diversification

    77 BOUYGUES TELECOM: businesses and SMEs „ Now a growth driver for Bouygues Telecom 9 13% increase in sales vs. first-half 2007 9 Business Synchro - a converged offer that stands out from the competition: unified messaging service, "synchronised ringing" service, etc. „ Forthcoming launch of new con

  40. Slide 40: French telecoms market more competitive than other European markets

    FRENCH TELECOMS MARKET: 79 a more competitive market than the other main European markets Price of consumer basket and average mobile outgoing voice usage by SIM card Basket Usage (€ tax-inclusive/month) (in minutes) 40 38 200 36 33 33 155 29 27 150 119 116 22 19 19 20 18 86 100 62 50 0 0 Germany Sp

  41. Slide 41: Alstom key figures; share ownership structure

    81 ALSTOM: key figures 2007/2008 „ Performance in Q1 2008/2009 9 sales: €4.5bn (+11%) 9 order intakes: €6.6bn (-14%) 9 order book: €42bn „ Performance at 31 March 2008 (FY 2007/2008) 9 sales: €16.9bn (+19%) AGV very high-speed train 9 net profit: €852m (+56%) unveiled on 5 February 2008 9 free cash

  42. Slide 42: Financial calendar; bond issues

    83 BOUYGUES: financial calendar 2008 „ 14 November 2008 9-month 2008 sales „ 2 December 2008 9-month 2008 earnings 2009 „ 12 February 2009 Full-year 2008 sales „ 3 March 2009 Full-year 2008 earnings „ 14 May 2009 First-quarter 2009 sales „ 2 June 2009 First-quarter 2009 earnings „ 13 August 2009 Fir

  43. Slide 43: Share details; IR contact

    85 BOUYGUES SHARE DETAILS „ Listed on the Eurolist of Euronext – compartment A „ ISIN Code : FR0000120503 „ Bloomberg code : EN FP „ Reuters code : BOUY.PA „ Indexes : CAC 40, FTSE Eurofirst 80, DJ STOXX 600, ASPI Eurozone „ Sector classification : 9 MSCI / S&P: Construction & Engineering (new) 9 FT

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