Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2018 Earnings Presentation
59 slides from Bouygues Sa's earnings presentation, Aug 30, 2018
Slide 1: First-Half 2018 Results Presentation
FIRST-HALF 2018 RESULTS 30 AUGUST 2018 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: Items Impacting 2018 Results
ANNEX ITEMS IMPACTING 2018 RESULTS REMINDER: APPLICATION OF IFRS 9 AND IFRS 15 FROM 1 JANUARY 2018 Slight impact over the year at Group level Main impacts of IFRS 15: > Bouygues Immobilier: backlog, sales, current operating profit and net profit attributable to the group > Bouygues Telecom: sa
Slide 4: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK 4
Slide 5: H1 2018 Highlights
H1 2018 HIGHLIGHTS Good commercial performance and robust growth in results at Bouygues Telecom Backlog for the construction businesses at a record level. Following the adverse impact of poor weather conditions in Europe in Q1, current operating profit improved in Q2 year-on-year, despite strike
Slide 6: Group Key Figures
GROUP KEY FIGURES H1 2017 €m H1 2018 Change restated Sales up 4% year-on-year Sales 15,108 15,743 +4%a o/w France 9,797 10,143 +4% H1 2018 current operating profit of €303m reflects o/w international 5,311 5,600 +5% > Higher profitability at Bouygues Telecom Current operating profit 347 303 -€44
Slide 7: Robust Financial Structure
ROBUST FINANCIAL STRUCTURE NET DEBT AT END-JUNE 2018, UP €0.8B YEAR-ON-YEAR, INCLUDES THE ACQUISITION OF THE MILLER MCASPHALT GROUP BY COLAS AND OF THE AUFEMININ GROUP BY TF1 The increase in net debt versus end-December 2017 reflects the usual seasonal effect of Colas’ business Net debt at end
Slide 8: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK 8
Slide 9: Construction Businesses
CONSTRUCTION BUSINESSES Paris metro Line 14 North, Grand Paris project Green Office Quartz – Issy-les-Moulineaux Resurfacing of the Circuit Paul Ricard race track for the French Grand Prix 9
Slide 10: Record Backlog
Backloga (€b) RECORD BACKLOG +9%b 33.7 BACKLOG AT END-JUNE 2018: €33.7B 30.8 2.7 2.6 +2% Up 9% year-on-year and up 13% at constant exchange 9.5c rates 8.1 +18% 57% of the backlog at Bouygues Construction and Colas in international markets Backlog at Bouygues Construction and Colas by geographi
Slide 11: Good Commercial Momentum in France
GOOD COMMERCIAL MOMENTUM IN FRANCE EXAMPLE OF CONTRACTS WON IN Q2 2018 Backloga in France (€b) +8% 15.8 14.7 +5% 2.6 2.5 +8% 3.6 3.4 Construction of Line B of Angers tram system (€63m) Design and construction of the Lille metropolitan authority offices (€154m) +9% 8.8 9.6 End-June 2017 End-June 2018
Slide 12: Upbeat International Markets
UPBEAT INTERNATIONAL MARKETS EXAMPLE OF CONTRACTS WON IN Q2 2018 International backloga (€b) Resurfacing of Highways 401 and 404 Electrical work and IT services for a medical – Canada (€76m) center in Calgary – Canada (€58m) +11%b 17.8 16.1 0.1 0.2 -34% Canada 5.9c 4.7 +25% Design and construction o
Slide 13: Key Figures in the Construction Businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES Lfl & Change vs Change vs Change vs €m Q1 2018 Q2 2018 H1 2018 constant Q1 2017 Q2 2017 H1 2017 fxa Sales 5,058 -2% 7,057 +8% 12,115 +4% +5% o/w France 2,922 0% 3,658 +5% 6,580 +3% +3% o/w international 2,136 -4% 3,399 +11% 5,535 +5% +7% Current operating p
Slide 14: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Backlog by geographic region (at end-June 2018) Order intakea (€b) International +8% 5% 6.0 3% 5.6 25% +22% 2.5 3.0 -3% 45% 3.1 3.0 22% H1 2017 H1 2018 France Asia and Middle East Europe (excl. France) Americas Africa (a) Contracts are booked as orde
Slide 15: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€b) Commercial property -10% 1.3 1.2 0.1 -16% 0.1 1.2 -9% 1.1 H1 2017 H1 2018 Nanterre Cœur Université eco-neighborhood – France (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (com
Slide 16: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS H1 2017 Backlog (€b) €m H1 2018 Change restated +18%b Sales 5,002 5,361 +7%a 9.5a o/w France (incl. French overseas 2,812 2,855 +2% territories) 8.1 o/w international 2,190 2,506 +14% 3.6 +8% Current operating profit/(loss) (136) (174) -€38m 3.4 Current operating margin -2
Slide 17: A Strong and Selective International Presence
ANNEX A STRONG AND SELECTIVE INTERNATIONAL PRESENCE BOUYGUES OPERATES IN GROWING COUNTRIES WITH A LOW-RISK PROFILE NORTHERN AND CENTRAL EUROPE NORTH AMERICA United Kingdom: +1.4% Switzerland: +2.3% RUSSIA: +1.7% United States: +2.9% Canada: +2.1% 0% 41% 25% SOUTHERN EUROPE 1% Spain: +2.8% 1% AFRICA
Slide 18: 19.3 million viewers watched the Soccer World Cup Final on TF1
19.3 million viewers (82% audience share) watched the Soccer World Cup Final (5pm-7pm) on TF1 on 15 July 2018 18
Slide 19: Key Figures at TF1
KEY FIGURES AT TF1 SALES UP 4% YEAR-ON-YEAR €m H1 2017 H1 2018 Change restated Good performance of advertising revenue Sales 1,043 1,084 +4%a for the five unencrypted channels o/w TF1 group advertising 784 812 +4% First revenue streams from distribution of the TF1 Premium service Current opera
Slide 20: Bouygues Telecom
bouygues Cy” ee CAMPAIGNE
Slide 21: Robust Growth in Mobile
ROBUST GROWTH IN MOBILE 15.3 MILLION MOBILE CUSTOMERS AT Mobile plan customer base excluding MtoMa (millions of customers) 10.6 END-JUNE 2018 +901,000 customers in H1 2018 10.1 +448,000 customers in Q2 2018 9.5 OF WHICH 10.6 MILLION MOBILE PLAN 8.9 CUSTOMERS EXCLUDING MTOMa 8.5 +253,000 cu
Slide 22: Bringing Very-High-Speed Mobile to as Many People as Possible
BRINGING VERY-HIGH-SPEED MOBILE TO AS MANY PEOPLE AS POSSIBLE IN LESS DENSE AREAS 82% of shared network rolled-out at end-June 2018 End-2018 (95% at end-2018) 99% 4G coverage Strategic agreement with Fnac Darty to sell Bouygues Around 21,000 mobile sites Telecom mobile offers in around 50
Slide 23: Preparing for 5G
PREPARING FOR 5G Preparing for the roll-out of the 5G mobile network > 100% of mobile sites in cities connected with fiber by 2020 > Construction of more than 100 5G Regional/Edge hosting site First 5G pilot site operating under real conditions in France launched in early July 2018 with Huawei i
Slide 24: Good Performance in Fixed, Driven by FTTH
GOOD PERFORMANCE IN FIXED, DRIVEN BY FTTHa Fixed customer base (‘000 customers) 3.5 MILLION CUSTOMERS AT END-JUNE 2018 and share of FTTHa customers 3.5 Total % FTTH +91,000 customers in H1 2018 3.2 2.9 11.1% +41,000 customers in Q2 2018 2.6 2.2 5.3% 391,000 FTTH CUSTOMERS AT END-JUNE 2018
Slide 25: Bringing Very-High-Speed Fixed to as Many People as Possible
BRINGING VERY-HIGH-SPEED FIXED TO AS MANY PEOPLE AS POSSIBLE FTTHa premises – secured and marketed (millions) 30 EXPANSION OF BOUYGUES TELECOM’S FTTH FOOTPRINT 25 million premises secured at end-June 2018 (+4.9 million vs end-December 2017) 25 > Partnership agreement signed with Orange in Q2 201
Slide 26: 6.5% Growth in Sales Year-on-Year
6.5% GROWTH IN SALES YEAR-ON-YEAR €m H1 2017 restated H1 2018 Change Sales 2,406 2,563 +6.5%a o/w sales from services 1,978 2,074 +4.8% o/w sales billed to customers 1,882 1,977 +5.0% (a) Up 6.5% like-for-like and at constant exchange rates SALES FROM SERVICES IN H1 2018: +4.8% VS H1 2017, IN A CO
Slide 27: Robust Growth in Results at Bouygues Telecom
ROBUST GROWTH IN RESULTS AT BOUYGUES TELECOM H1 2017 €m H1 2018 Change restated IMPROVEMENT IN PROFITABILITY YEAR-ON-YEAR Sales 2,406 2,563 +6.5%a o/w sales from services 1,978 2,074 +5% EBITDA up 12% to €549m EBITDA 490 549 +12% EBITDA/sales from services 24.8% 26.5% +1.7 pts EBITDA margin of
Slide 28: Key Indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 restated Q1 2018 Q2 2018 restated restated restated restated Sales from mobile services (€m) 705 713 750 737 2,904 719 734 Sales from fixed services (€m) 278 283 296 309 1,166 312 309 Mobile customer base 13,359 13,641 13,
Slide 29: FTTH Premises Marketed (Millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Total premises on the marketc Bouygues Telecom at end-June 2018 Bouygues Telecom at end-2019 Very Dense 6.4 Area 2.5 4.5 Medium Dense 13.2 Area/AMIId 6.5 2.9 5.5 12 Public Initiative 15.9 Network (PIN) Aread 0.1 1 (a) Fiber-To-The-Home – optical fiber from t
Slide 30: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK 30
Slide 31: Condensed Consolidated Income Statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) H1 2017 €m H1 2018 Change restated Sales 15,108 15,743 +4%a Current operating profit 347 303 -€44m Other operating income and expenses 32b 80c +€48m Operating profit 379 383 +€4m Cost of net debt (115) (107) +€8m o/w financial income 10 15 +€5m o/w finan
Slide 32: Condensed Consolidated Income Statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) H1 2017 €m H1 2018 Change restated Income tax (84) (57) +€27m Share of net profit of joint ventures and associates 85 89 +€4m o/w Alstom 45a 73a +€28m Net profit from continuing operations 272 312 +€40m Net profit attributable to non-controlling interest
Slide 33: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & H1 2017 €m H1 2018 Change constant restated fxa Construction businessesb 11,691 12,115 +4% +5% o/w Bouygues Construction 5,714 5,726 +0% +5% o/w Bouygues Immobilier 1,123 1,140 +2% +3% o/w Colas 5,002 5,361 +7% +4% TF1 1,043 1,084 +4% +1% Bouygues Telecom 2,40
Slide 34: Contribution to Group EBITDA by Sector of Activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 252 179 -€73m o/w Bouygues Construction 200 173 -€27m o/w Bouygues Immobilier 53 53 €0m o/w Colas (1) (47) -€46m TF1 187 223 +€36m Bouygues Telecom 490 549 +€59m Holding company and o
Slide 35: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 122 70 -€52m o/w Bouygues Construction 196 167 -€29m o/w Bouygues Immobilier 62 77 +€15m o/w Colas (136) (174) -€38m TF1 108 101 -€7m Bouygues Telecom 135 148 +€13m H
Slide 36: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 118 70 -€48m o/w Bouygues Construction 196 167 -€29m o/w Bouygues Immobilier 62 77 +€15m o/w Colas (140) (174) -€34m TF1 96 90 -€6m Bouygues Telecom 183 239 +€56m Holding com
Slide 37: Contribution to Net Profit Attributable to the Group by Sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 104 55 -€49m o/w Bouygues Construction 159 139 -€20m o/w Bouygues Immobilier 30 42 +€12m o/w Colas (85) (126) -€41m TF1 33 29 -€4m Bouygues Telecom 108 141 +€33
Slide 38: Impacts of Exceptional Items on Net Profit Attributable to the Group
ANNEX IMPACTS OF EXCEPTIONAL ITEMS ON NET PROFIT ATTRIBUTABLE TO THE GROUP H1 2017 €m H1 2018 Change restated Net profit attributable to the Group 220 260 +€40m o/w non-current income/charges related to the construction businesses (net of taxes) 4 0 -€4m o/w non-current income/charges related to TF1
Slide 39: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Current assets 18,697 18,493 -€204m Held-for-sale assets and operations 38 16 -€22m TOTAL ASSETS 36,303 37,211 +€908m Shareholders' equity 10,416 9,947 -€469m Non-current liab
Slide 40: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Of which: Non-current assets 17,568 18,702 +€1,134m • Property, plant & equipment: +€239m • Goodwill: +€864m Current assets 18,697 18,493 -€204m • Investments in JVs and associates: +€40m Held-for-sale assets and 38 1
Slide 41: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Of which: Current assets 18,697 18,493 -€204m • Current operating assets: +€2,117m • Cash: -€2,315m Held-for-sale assets and 38 16 -€22m operations TOTAL ASSETS 36,303 37,211
Slide 42: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Current assets 18,697 18,493 -€204m Held-for-sale assets and operations 38 16 -€22m TOTAL ASSETS 36,303 37,211 +€908m Shareholders' equity 10,416 9,947 -€469m Non-current liab
Slide 43: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Current assets 18,697 18,493 -€204m Held-for-sale assets and Of which: 38 16 -€22m operations • Net profit: +€312m • Dividends: -€680m TOTAL ASSETS 36,303 37,211 +€908m • Capi
Slide 44: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Current assets 18,697 18,493 -€204m Held-for-sale assets and 38 16 -€22m operations TOTAL ASSETS 36,303 37,211 +€908m Shareholders' equity 10,416 9,947 -€469m Of which: • Non-
Slide 45: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m 2017 Change 2018 restated Non-current assets 17,568 18,702 +€1,134m Current assets 18,697 18,493 -€204m Held-for-sale assets and operations 38 16 -€22m TOTAL ASSETS 36,303 37,211 +€908m Shareholders' equity 10,416 9,947 -€469m Non-current liab
Slide 46: Change in Net Debt Position in H1 2018 (1/2)
CHANGE IN NET DEBT POSITION IN H1 2018 (1/2) €m Net debt at 31/12/2017 Net debt at 30/06/2018 (1,917) -972 -10 Acquisitions/ Otherb -680 disposalsa Dividends -1,463 (5,042) Operation H1 2017 (1,866)c +4d +102e -607 -1,898 (4,265) restated (a) Including the acquisition of the Miller McAsphalt group b
Slide 47: Change in Net Debt Position in H1 2018 (2/2)
CHANGE IN NET DEBT POSITION IN H1 2018 (2/2) €m Breakdown of operation Net cash Change in operating flowa Net capex WCR and otherb +882 -771 -1,574 -1,463 H1 2017 restated +787 -684 -2,001 -1,898 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating to
Slide 48: Contribution to Group Net Cash Flow by Sector of Activity
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 318 310 -€8m o/w Bouygues Construction 216 204 -€12m o/w Bouygues Immobilier 38 43 +€5m o/w Colas 64 63 -€1m TF1 149 172 +€23m Bouygues Telecom 380 434 +€54m Holding company an
Slide 49: Contribution to Net Capital Expenditure by Sector of Activity
CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 183 220 +€37m o/w Bouygues Construction 34 64 +€30m o/w Bouygues Immobilier 11 4 -€7m o/w Colas 138 152 +€14m TF1 91 88 -€3m Bouygues Telecom 405 461 +€56m Holding company and oth
Slide 50: Contribution to Group Free Cash Flow by Sector of Activity
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY H1 2017 €m H1 2018 Change restated Construction businesses 135 90 -€45m o/w Bouygues Construction 182 140 -€42m o/w Bouygues Immobilier 27 39 +€12m o/w Colas (74) (89) -€15m TF1 58 84 +€26m Bouygues Telecom (25) (27) -€2m Holding comp
Slide 51: Net Debt / Net Surplus Cash
ANNEX NET DEBT (-)/NET SURPLUS CASH (+) End-Dec End-June €m 2017 Change 2018 restated Bouygues Construction 3,409 2,993 -€416m Bouygues Immobilier (86) (491) -€405m Colas 433 (1,314) -€1,747m TF1 257 (122) -€379m Bouygues Telecom (976) (1,201) -€225m Holding company and other (4,954) (4,907) +€47m T
Slide 52: Debt Maturity Schedule at End-June 2018
DEBT MATURITY SCHEDULE AT END-JUNE 2018 Available cash: €8.3b €9b €8b €7b Undrawn MLT €6b facilities €6.1b €5b €4b €3b €2b Cash €1b €2.2b €0b Liquidity 52
Slide 53: Impact of IFRS 15 on 2017 Financial Statements
ANNEX IMPACT OF IFRS 15 ON 2017 FINANCIAL STATEMENTS o/w o/w o/w €m 2017 reported 2017 restated Bouygues Immobilier Bouygues Telecom TF1 Sales 32,904 +37 -26 +7 32,923 Current operating profit 1,420 -5 -9 0 1,406 Operating profit 1,533 -5 -9 0 1,519 Income tax (303) 0 +4 0 (299) Share of net profit
Slide 54: Impact of IFRS 15 on 2017 Interim Results
ANNEX IMPACT OF IFRS 15 ON 2017 INTERIM RESULTS Par €m trimestre Q1 Q2 Q3 Q4 Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Sales 6,847 -10 6,837 8,315 -44 8,271 8,666 -22 8,644 9,076 +95 9,171 o/w Bouygues Telecom 1,222 -12 1,210 1,212 -16 1,196
Slide 55: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK 55
Slide 56: Outlook Confirmed
OUTLOOK CONFIRMED THE GROUP SHOULD CONTINUE TO IMPROVE ITS PROFITABILITY IN 2018 With an upbeat environment in France and abroad, the construction businesses will continue to be selective and focus on profitability rather than volumes > Improvement in current operating profita and current operat
Slide 57: Calendar
CALENDAR CAPITAL MARKETS DAY FOR THE CONSTRUCTION BUSINESSES 2 October 2018 (8.30am CET) in Paris NINE-MONTH 2018 RESULTS 15 November 2018 (7.30am CET) FULL-YEAR 2018 RESULTS 21 February 2019 (7.30am CET) Work on Ivato Airport – Madagascar 57
Slide 58: Bouygues Publishes Its First Integrated Report
BOUYGUES PUBLISHES ITS FIRST INTEGRATED REPORT FIND THE GROUP’S INTEGRATED REPORT ON BOUYGUES.COM 58
Slide 59: Glossary
ANNEX GLOSSARY 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 data)