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Bouygues Sa — H1 2008 Earnings Presentation

61 slides from Bouygues Sa's earnings presentation, Aug 29, 2008

  1. Slide 1: Presentation of First-Half 2008 Results

    PRESENTATION OF FIRST-HALF 2008 RESULTS Paris - 32 Hoche 29 August 2008

  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 „ BUSINESS AREAS „ FINANCIAL STATEMENTS „ OUTLOOK AND OBJECTIVES

  4. Slide 4: Highlights in First-Half 2008

    HIGHLIGHTS IN FIRST-HALF 2008 „ Further rise in the Group's sales and profit „ Business activity 9 still strong at Bouygues Construction, both in France and abroad 9 growing more moderately at Colas 9 slower at Bouygues Immobilier, although still high „ TF1 9 continuing to adapt to the new competiti

  5. Slide 5: Group: key operating figures

    BOUYGUES GROUP: key operating figures 1st half € million Change 2007* 2008 Sales 13,298 15,310 +15% Operating profit 1,062 1,099 +3% Net profit att. to the Group 659 701 +6% * Applying the same accounting policy as in 2008: restatement of provisions for Bouygues Telecom customer loyalty programmes a

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

    BOUYGUES GROUP: financial position (1/2) at 30 June € million Change 2007* 2008 Shareholders' equity 7,168 8,033 +€865m Net debt 5,115 6,300 +€1,185m Debt-to-equity ratio 71% 78% +7 pts * Applying the same accounting policy as in 2008: restatement of provisions for Bouygues Telecom customer loyalty

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

    BOUYGUES GROUP: financial position (2/2) 1st half € million Change 2007* 2008 Cash flow 1,586 1,710 +€124m - Cost of net debt -95 -132 -€37m - Income tax -286 -305 -€19m - Net capital expenditure -613 -833 -€220m Free cash flow 592 440 -€152m * Applying the same accounting policy as in 2008: restate

  8. Slide 8: Bouygues - Alstom

    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 consolidation adjustments (holding company): €(9)m vs. €6m in H1 2007 * Calculation based on Alstom's net profit for H2 2007/2008 „ Bouygues' stake in Alst

  9. Slide 9: Alstom: key figures

    ALSTOM: key figures „ Performance in Q1 2008/2009 * 9 sales: €4.5bn (+11%) 9 order intakes: €6.6bn (-14%) 9 order book: €42bn * 1 April to 30 June 2008 „ Performance at 31 March 2008 (FY 2007/2008) AGV very high-speed train 9 sales: €16.9bn (+19%) unveiled on 5 February 2008 9 net profit: €852m (+56

  10. Slide 10: Bouygues: share ownership structure at 30 June 2008

    BOUYGUES: share ownership structure at 30 June 2008 „ Capital „ Voting rights SCDM Foreign 19.0% Artémis shareholders SCDM Foreign Group 2.0% 28.9% 28.2% shareholders 38.2% (F. Pinault) 15.1% Artémis Employees 2.5% Group 25.7% 21.3% 19.1% (F. Pinault) Other French Other French Employees shareholders

  11. Slide 11: Group: share performance

    BOUYGUES GROUP: share performance „ Performance of the Bouygues share and the Dow Jones Eurostoxx 50 index from 30 June 2007 to 28 August 2008 (opening price) 2007 2008 Bouygues DJ EuroStoxx 50 69 64 Share price in € 59 54 49 -27% 44 €41.3 39 -34% July-07 Aug.-07 Sept.-07 Oct.-07 Nov.-07 Dec.-07 Jan

  12. Slide 12: 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 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 „ First-half 2008 La Défense business district out

  14. Slide 14: Bouygues Construction: order intakes

    BOUYGUES CONSTRUCTION: order intakes „ Definition € bn +17% 5.8 Contracts are booked as order intakes 5.0 4.7 at the date they take effect. 2.6 2.0 2.2 International France 2.7 2.8 3.2 H1 2006 H1 2007 H1 2008 „ Major order intakes in first-half 2008 9 hotel in Turkmenistan (€270m) 9 CB31 Tower in La

  15. Slide 15: Bouygues Construction: order book

    BOUYGUES CONSTRUCTION: order book Long-term order book (after Y+5) For execution Y+2 to Y+5 For execution in Y+1 12.3 At 30 June 2008 For execution in Y 9.8 After Middle East +€2.5bn 1.2 2013 1% France 7.6 +€2.2bn 2010 to Americas 47% 2.3 2013 0.9 1.4 2% 0.7 Africa 1.2 4.8 2009 79% 3.8 6% € bn Asia

  16. Slide 16: Bouygues Construction: outlook

    BOUYGUES CONSTRUCTION: outlook „ Bouygues Construction is positioned on market segments where demand remains high 9 in France: hospitals, social housing, with easier access to PPPs 9 abroad: transport and power infrastructure and high-growth countries (Gulf region, South-East Asia) 2007 2008 Sales t

  17. Slide 17: Bouygues Immobilier: key figures

    BOUYGUES IMMOBILIER: key figures 1st half € million Change 2007 2008 Sales 809 1,300 +61% o/w residential 662 838 +27% o/w commercial 147 462 x 3.1 Operating margin 8.9% 9.4% +0.5 pt Net profit att. to the Group 42 61 +45% Green Office® Building in Meudon outside Paris „ First-half 2008 9 despite th

  18. Slide 18: Bouygues Immobilier: reservations

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

  19. Slide 19: Bouygues Immobilier: order book

    BOUYGUES IMMOBILIER: order book In months of sales 18 months 21 months 18 months 3,930 Commercial Residential % 2,998 +31 €m 1,504 836 1,957 355 2,162 2,426 1,602 End-June 2006 End-June 2007 End-June 2008 Visibility remains good for 2008, 2009 and 2010

  20. Slide 20: Residential market: new home sales

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

  21. Slide 21: Property market: current situation

    PROPERTY MARKET: current situation „ French residential property market 9 underpinned by solid fundamentals, the market is nevertheless expected to decline throughout 2008 (estimated number of homes sold: -30%) 9 the impact on home prices is likely to be limited, though it should ease the pressure o

  22. Slide 22: Bouygues Immobilier: outlook

    BOUYGUES IMMOBILIER: outlook „ Bouygues Immobilier's priorities 9 manage sharp increase in construction starts in 2008 and 2009 due to the high level of orders 9 control risk on new programmes „ Bouygues Immobilier's strengths 9 secured order book providing good visibility 9 competitive advantages ¾

  23. Slide 23: Colas: key figures

    COLAS: key figures 1st half € million Change 2007 2008 Sales 4,925 5,631 +14% o/w France 3,149 3,537 +12% o/w international 1,776 2,094 +18% Operating margin 2.8% 2.8% = Net profit att. to the Group 117 130 +11% Embrun bypass in the French Alps Increase in sales and profit in first-half 2008

  24. Slide 24: Colas: order book

    COLAS: order book International and French overseas territories Mainland France €m 7,095 6,807 + 4% 3,590 3,674 3,217 3,421 End-June 2007 End-June 2008 Business activity growing more moderately

  25. Slide 25: Colas: outlook

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

  26. Slide 26: TF1: key figures

    TF1: key figures 1st half € million Change 2007 2008 Sales 1,431 1,363 -5% o/w core channel advertising 925 891 -4% o/w other activities 506 472 -7% Operating margin 18.4% 12.6% -5.8 pts Net profit att. to the Group 186 125 -33% „ First-half 2008 9 TF1 continued to adapt to its competitive environme

  27. Slide 27: TF1: outlook

    TF1: outlook „ TF1's priorities 9 reorganise operations to improve performance 9 consolidate its lead as most-watched channel on DTT 9 operate as a 360° media by strengthening its presence on the Web Sales target (€ million) 2007 2008 Change target Sales 2,764 2,680 -3%

  28. Slide 28: Bouygues Telecom: key figures

    BOUYGUES TELECOM: key figures 1st half € million Change 2007 (1) 2008 Sales 2,300 2,465 +7% Sales from network 2,176 2,295 +5% EBITDA 732 755 +3% EBITDA/sales from network 33.6% 32.9% (2) -0.7 pt Operating margin 19.4% 19.0% -0.4 pt Net profit att. to the Group 294 308 +5% Neo call plan advertisemen

  29. Slide 29: Bouygues Telecom: sales trends

    BOUYGUES TELECOM: sales trends Breakdown of sales from network (€ m) Growth in customer base +129 +41 -51 2,295 2,176 Offer mix + Cut in incoming change in call rates and usage roaming rates H1 2007 H1 2008 6% growth in customer base and ARPU steady

  30. Slide 30: Bouygues Telecom: value market share

    BOUYGUES TELECOM: value market share Bouygues Telecom market share % of total market 25% Share of outgoing voice calls 24% Value market share excl. MVNOs 23% 22% 22% 21% 20.5% 20% 19% 19% 18.9% 18% Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Sources: ARCEP and Bouygues Te

  31. Slide 31: Bouygues Telecom: key indicators

    BOUYGUES TELECOM: key indicators Total customer Contract Prepaid base H1 2007 H1 2008 H1 2007 H1 2008 H1 2007 H1 2008 SIM cards (thousands) 6,437 6,959 2,370 2,359 8,807 9,318 SIM cards (% mix) 73.1% 74.7% 26.9% 25.3% ARPU (€/year) (1) 620 609 183 182 496 495 Voice usage (min./month) (2) 368 362 74

  32. Slide 32: French telecoms market: increasing government intervention

    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 (Cons

  33. Slide 33: French telecoms market: competitive context

    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 unlimited

  34. Slide 34: Bouygues Telecom: mobile services for consumers

    BOUYGUES TELECOM: mobile services for consumers „ More generous unrestricted call plans 9 launch of Neo.2 on 8 September 2008 ¾ five unlimited calling time slots to all operators, including unlimited SMS and MMS ¾ unlimited mobile internet 24/7 ¾ unlimited email sending and reception 24/7 „ Unlimite

  35. Slide 35: Bouygues Telecom: fixed-line services for consumers

    BOUYGUES TELECOM: fixed-line services for consumers „ Launch in autumn 2008 with Bouygues Telecom customers as priority targets „ Bouygues Telecom's strengths 9 No. 1 for customer relations in mobile telephony category* for the second year in a row 9 owning its network enables Bouygues Telecom to en

  36. Slide 36: Bouygues Telecom: businesses and SMEs

    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 conver

  37. Slide 37: Bouygues Telecom: diversification

    BOUYGUES TELECOM: diversification „ MVNOs 9 voice services with Numericable in late April 2008 9 data services with Auchan since November 2007 9 continued development of MVNOs targeting specific community groups with Transatel Î targeted partnerships „ Machine-to-machine 9 a market likely to expand

  38. Slide 38: Bouygues Telecom: capital expenditure

    BOUYGUES TELECOM: capital expenditure „ Capital expenditure in mobile business 9 mobile internet is taking off in France (PCMCIA cards and USB modems) 9 Businesses and consumers need increasingly faster download and uplink speeds Î faster rollout of the HSPA network in order to cover 70% of the Fren

  39. Slide 39: Bouygues Telecom: agreement with Neuf Cegetel

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

  40. Slide 40: French telecoms market vs. other European markets

    FRENCH TELECOMS MARKET: 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 Spain

  41. Slide 41: Bouygues Telecom: outlook

    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%

  42. Slide 42: Bouygues Telecom: call termination rates

    BOUYGUES TELECOM: call termination rates „ History of cuts ordered by ARCEP 1 January 1 January 1 January 2008/ € cents/minute 2005 2006 2007 June 2009 Rates to Bouygues Telecom 14.79 11.24 9.24 8.50 % change -17.3% -24% -17.8% -8% Rates to Orange/SFR 12.50 9.50 7.50 6.50 % change -16.3% -24% -21.1%

  43. Slide 43: Financial statements

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

  44. Slide 44: Bouygues: condensed consolidated income statement

    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 attributabl

  45. Slide 45: Contribution of business areas to Group sales

    Contribution of business areas to Group sales 1st half € million Change 2007 2008 Bouygues Construction 3,712 4,448 +20% Bouygues Immobilier 808 1,299 +61% Colas 4,914 5,609 +14% TF1 1,423 1,352 -5% Bouygues Telecom 2,293 2,457 +7% Holding company and other 148 145 ns TOTAL 13,298 15,310 +15% o/w Fr

  46. Slide 46: Contribution of business areas to Group EBITDA

    Contribution of business areas to Group EBITDA 1st half € million Change 2007 2008 Bouygues Construction 184 269 +€85m Bouygues Immobilier 56 135 +€79m Colas 316 344 +€28m TF1 330 237 -€93m Bouygues Telecom 732* 755 +€23m Holding company and other 8 3 -€5m TOTAL 1,626 1,743 +7% * O/w €30m of non-rec

  47. Slide 47: Contribution of business areas to Group operating profit

    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% * Apply

  48. Slide 48: Contribution of business areas to Group net profit

    Contribution of business areas to Group net profit „ Group share 1st half € million Change 2007* 2008 Bouygues Construction 148 164 +€16m Bouygues Immobilier 42 61 +€19m Colas 113 126 +€13m TF1 80 54 -€26m Bouygues Telecom 263 275 +€12m Alstom 64 151 +€87m Holding company and other (51) (130) -€79m

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

    Contribution of business areas to Group cash flow 1st half € million Change 2007 2008 Bouygues Construction 162 213 +€51m Bouygues Immobilier 71 115 +€44m Colas 317 344 +€27m TF1 285 218 -€67m Bouygues Telecom 727 757 +€30m Holding company and other 24 63 +€39m TOTAL 1,586 1,710 +8%

  50. Slide 50: Contribution of business areas to Group net capital expenditure

    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 TOTA

  51. Slide 51: Contribution of business areas to Group free cash flow

    Contribution of business areas to Group free cash flow 1st half € million Change 2007 2008 Bouygues Construction 12 65 +€53m Bouygues Immobilier 42 67 +€25m Colas 52 60 +€8m TF1 154 69 -€85m Bouygues Telecom 359 221 -€138m Holding company and other (27) (42) -€15m TOTAL 592 440 -26% Free cash flow =

  52. Slide 52: Bouygues: condensed consolidated balance sheet

    BOUYGUES: condensed consolidated balance sheet At 30 June 2007* €m At 30 June 2008 31,970 31,970 34,095 34,095 7,168 8,033 15,860 18,040 8,389 8,010 16,077 16,413 16,055 18,052 33 Assets Liabilities Assets Liabilities Non-current assets Shareholders’ equity Current assets Non-current liabilities Hel

  53. Slide 53: Bouygues: change in cash position from June 2007 to June 2008

    BOUYGUES: change in cash position from June 2007 to June 2008 in a rolling 12-month period Net debt at Net debt at 30/06/2007 €m 30/06/2008 (5,115) (6,300) Alstom (*) Operation -998 Bouygues Impact of +734 -217 Confiance 4 Other scope of capital increase consolidation -1,215 +300 +5 Acquisitions and

  54. Slide 54: Contribution of business areas to Group net cash

    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 TOT

  55. Slide 55: Bouygues: financing

    BOUYGUES: financing €m Available cash: €6.9 billion 7,000 6,000 5,000 Undrawn MLT credit 4,000 lines 3,000 Bond issue 2,000 July 2008 - July 2015 1,000 Cash 0 08 09 10 11 12 13 14 15 16 17 18 19 20 26 27 28 i ty … 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 uid Liq „ €1 billion seven-year bond i

  56. Slide 56: Outlook and objectives

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

  57. Slide 57: Bouygues: economic context

    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 different countries 9 soaring commodity prices 9 euro/dollar exchange rate at record levels „ To

  58. Slide 58: Bouygues: 2008 sales targets

    BOUYGUES: 2008 sales targets 2008 target Change € million 2007 2008/2007 in in June in August February Bouygues Construction 8,088 8,900 9,000 9,100 +13% Bouygues Immobilier 2,074 2,900 2,900 2,900 +40% Colas 11,640 12,450 12,550 12,550 +8% TF1 2,747 2,800 2,670 2,670 -3% Bouygues Telecom 4 780 4,95

  59. Slide 59: Bouygues: outlook

    BOUYGUES: outlook „ The Group's outlook is bright for 2008 „ Beyond 2008, the growth drivers of the Group's markets are solid 9 buoyant markets in the Group’s international construction business 9 infrastructure and power needs 9 strong demand for housing in France (particularly social housing) 9 de

  60. Slide 60: Bouygues: strategic goals

    BOUYGUES: strategic goals Business areas „ Continue current strategy, with a focus on fundamentals 9 customer satisfaction, smooth execution of contracts 9 successfully transfer knowledge from older employees to recent recruits „ Take a cautious approach to commitments 9 apply strict selectivity in

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Bouygues — H1 2008 Earnings Presentation on 6ix