Slide 1: First-Half 2017 Results Presentation
FIRST-HALF 2017 RESULTS PRESENTATION 31 AUGUST 2017 Building the future is our greatest adventure
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: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 3
Slide 4: H1 2017 Highlights
H1 2017 HIGHLIGHTS Sharp improvement in Group profitability year-on-year Backlog for the construction businesses at a record level Growth in commercial and financial results at Bouygues Telecom Outlook for 2017 confirmed La Seine Musicale, inaugurated on 22 April 2017 4
Slide 5: Group Key Figures
GROUP KEY FIGURES €m H1 2016 H1 2017 Change Strong growth in Group results Sales 14,669 15,162 +3%a o/w France 9,532 9,851 +3% > Current operating profit improved o/w international 5,137 5,311 +3% by €179m Current operating profit 206 385 +€179m > Current operating margin up 1.1 points Current opera
Slide 6: Very Robust Financial Structure
VERY ROBUST FINANCIAL STRUCTURE STANDARD & POOR’S Credit rating upgraded from BBB to BBB+, with a positive outlook maintained €m End-June End-Dec End-June Change 2016 2016 2017 MOODY’S Shareholders' equity 8,415 9,420 9,173 -€247m Credit rating outlook lifted from Net debt (4,354) (1,866) (4,265) -€
Slide 7: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 7
Slide 8: Construction Businesses
CONSTRUCTION BUSINESSES 13.7 MW solar farm in Noheji, Japan Future eco-neighborhood at Clamart station, France RD 908 road at the Col d’Allos, France 8
Slide 9: Backlog at a Record Level
BACKLOG AT A RECORD LEVEL Backlog (€m) +5%a BACKLOG AT END-JUNE 2017 €31.2bn €29.8bn €29.5bn AT A RECORD LEVEL OF €31.2bn €28.0bn 3,019 +8% 2,372 2,785 2,210 Up 5% year-on-year and up 6% at constant 8,111 +1% 8,079 8,011 exchange rates 8,242 57% of the backlog at Bouygues Construction and Colas 17,5
Slide 10: Improvement in French Construction Confirmed
IMPROVEMENT IN FRENCH CONSTRUCTION CONFIRMED Backlog in France (€m) BACKLOG UP 7% YEAR-ON-YEAR +7% €15.0bn €15.0bn Sustained growth in residential property €13.6bn €14.0bn 2,103 reservationsa at Bouygues Immobilier 2,836 +8% 2,236 2,622 > Up 20% in H1 2017 vs H1 2016 3,515 3,383 +9% Increased order
Slide 11: Grand Paris: Contracts Won at End-June 2017
GRAND PARIS: CONTRACTS WON AT END-JUNE 2017 Extension of Line 14 T4 tramway Excavation of a 2.2-km tunnel and Laying of track and road work construction of 4 stations Duration of the work: 2016-2019 Duration of the work: 2015-2018 Contract amount: €49m Contract amount: €128m Bagneux station eco-neig
Slide 12: Good International Momentum
GOOD INTERNATIONAL MOMENTUM International backlog (€m) INTERNATIONAL BACKLOG UP 4% YEAR-ON-YEAR AND UP 5% AT CONSTANT EXCHANGE RATES €16.2bn +4%a €16.1bn €15.5bn 136 183 +12% 163 Major contracts won in Q2 2017 €13.0bn 107 4,910 4,728 -3% 4,896 > Construction and maintenance of the Southwest Calgary
Slide 13: Nextdoor: Goal to Become the European Leader in Co-working
NEXTDOOR GOAL TO BECOME THE EUROPEAN LEADER IN CO-WORKING Nextdoor – Lyon, France 13
Slide 14: Sharp Growth in the Collaborative Workspace Market
SHARP GROWTH IN THE COLLABORATIVE WORKSPACE MARKET NEXTDOOR CREATED BY BOUYGUES IMMOBILIER AT END-2014 8 sites in operation at end-2017 (Greater Paris area, Lyon) totaling 40,000 m² 4,000 customers Average occupancy rate above 80% HIGH-GROWTH AND INCREASINGLY COMPETITIVE MARKET 25-fold increase in t
Slide 15: Goal to Become the European Leader in Co-working
GOAL TO BECOME THE EUROPEAN LEADER IN CO-WORKING BOUYGUES IMMOBILIER HAS CREATED A 50/50 JOINT VENTURE WITH ACCORHOTELS TO SPEED UP THE DEVELOPMENT OF NEXTDOOR IN FRANCE AND IN EUROPE Complementary know-how > Bouygues Immobilier: expertise in new usages of commercial property, site selection, negoti
Slide 16: Key Figures in the Construction Businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES lfl & Strong growth year-on-year in current €m H1 2016 H1 2017 Change constant operating profit at Bouygues Construction fxa and Bouygues Immobilier Sales 11,383 11,723 +3% +3% Improved margin in Colas’ roads business in o/w France 6,276 6,449 +3% +3% mainl
Slide 17: Demain nous appartient (TV series)
“Demain nous appartient” (TV series) 17
Slide 18: Key Figures at TF1
KEY FIGURES AT TF1 GROWTH IN ADVERTISING SALES €m H1 2016 H1 2017 Change Sales 1,025 1,037 +1%a +2% year-on-year o/w TF1 group advertising 770 782 +2% IMPROVED PROFITABILITY Current operating profit 58 108 +€50m Current operating margin of 10.4%, Current operating margin 5.7% 10.4% +4.7 pts up 4.7 p
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Slide 20: Continued Growth in Mobile
CONTINUED GROWTH IN MOBILE Plan subscriber base excluding M2Mb 13.6 MILLION MOBILE CUSTOMERS AT END-JUNE 2017 (millions of customers) +645,000 customers in H1 2017 10.1m 9.9m 9.8m The leading operator in terms of mobile recruitment 9.6m 9.5m for the period between January 2016 and June 2017a 9.3m 9.
Slide 21: Q2 Growth Driven by FTTH in the Fixed Activity
Q2 GROWTH DRIVEN BY FTTHa IN THE FIXED ACTIVITY Total net growth of fixed broadbanda +133,000 CUSTOMERS IN H1 2017, OF WHICH (‘000 of customers) +45,000 IN Q2 2017 Confirmation of the target of Actual Target set in 2014 1 million additional fixed customers by end-2017 (vs end-2014) NEARLY 2/3 OF NET
Slide 22: Continued FTTH Roll-out
CONTINUED FTTHa ROLL-OUT Total premises Bouygues Telecom Bouygues Telecom 16M PREMISES SECUREDb AT END-JUNE 2017 on the market at end Q2 2017 at end 2019 +7 million vs end-2016 Very In negotiation Secured o/w Dense Secured o/w Area 4.5 marketeda 1.9 marketeda 2.6M PREMISES MARKETEDc AT END-JUNE 2017
Slide 23: Growth in Sales from Network
Text usagea GROWTH IN SALES FROM NETWORK (text/month/subscriber) 320 312 299 291 281 272 SALES FROM NETWORK: +6% YEAR-ON-YEAR 7% growth in sales from network excluding incoming traffic in H1 2017 vs H1 2016 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 (a) Quarterly usage, adjusted on a monthly basis, excludi
Slide 24: Sharp Improvement in Profitability
SHARP IMPROVEMENT IN PROFITABILITY €m H1 2016 H1 2017 Change EBITDA UP €139M YEAR-ON-YEAR Margin of 26.2% in H1 2017 Sales 2,291 2,434 +6% o/w sales from network 1,975 2,084 +6% o/w excl. incoming traffic 1,732 1,849 +7% CAPITAL GAIN ON DISPOSAL OF TOWERS EBITDA 408 547 +€139m TO CELLNEX INCLUDED IN
Slide 25: Growth Opportunities
GROWTH OPPORTUNITIES IN THE LESS DENSE AREA (57% OF THE POPULATION) Two-fold increase in 4G coverage between mid-2015 and end-2018 IN THE BUSINESS MARKET Strengthening of the N°3 operator positioning IN THE IoTa MARKET Largest nationwide network dedicated to IoT covering 93% of the French population
Slide 26: Acquisition of the Miller and McAsphalt Group in Canada
ACQUISITION OF THE MILLER AND MCASPHALT GROUP IN CANADA Upgrading of Tuck Inlet Road by Colas, a 16- km road that is the only link between the Lax Kw’alaams Indian Reserve and the Prince Rupert ferry terminal (British Columbia) Upgrading of Tuck Inlet Road by Colas, a 16- km road that is the only li
Slide 27: Colas Signs Agreement to Acquire Miller and McAsphalt Group
COLAS SIGNS AN AGREEMENT TO ACQUIRE THE MILLER AND MCASPHALT GROUP IN CANADA Continuation of the external growth strategy with Colas’ most significant acquisition in North America This acquisition will allow > To increase Colas’ presence in Ontario, a province with high growth potential > To increas
Slide 28: Canada, a Strategic Country for Colas
CANADA, A STRATEGIC COUNTRY FOR COLAS A HEALTHY ECONOMY AND A FAST-GROWING MARKET Healthy economy > Annual average growth of 3% since 1993a > Limited public debt (general government net debt/GDP = 27% in 2016b) A dynamic market with major infrastructure needs > Federal infrastructure investment prog
Slide 29: Ontario, a Fast-Growing Province
ONTARIO, A FAST-GROWING PROVINCE British Columbia Alberta Manitoba Quebec Saskatchewan Ontario ONTARIO CONTRIBUTES 37% OF CANADIAN GDP Ontario Nova New Scotia A HUGE CAD160bna INFRASTRUCTURE PLAN Brunswick OVER 12 YEARS Widening of existing highways or building of new ones, as well as construction o
Slide 30: Miller and McAsphalt Group, a Major Player in Roads and Bitumen
THE MILLER AND MCASPHALT GROUP, A MAJOR PLAYER IN ROADS AND BITUMEN IN CANADA One of the top roads companies in Ontario A leader in bitumen storage and distribution company in Canada An excellent reputation for quality and safety Key figures > Annual average sales of CAD1.3bna > Average operating ma
Slide 31: Miller and McAsphalt Group, a Vertically-Integrated Group
THE MILLER AND MCASPHALT GROUP, A VERTICALLY-INTEGRATED GROUP BITUMEN & ASPHALT MIXES PAVEMENT HIGHWAY MATERIALS EMULSIONS & ROAD PRESERVATION MAINTENANCE CEMENT/ CONSTRUCTION READY-MIX CONCRETE/ AGGREGATES 35% of sales 40% of sales 9% of sales 7% of sales 9% of sales 19 ready-mix 25 production 31 p
Slide 32: A Perfect Geographical and Business Fit (before)
A PERFECT GEOGRAPHICAL AND BUSINESS FIT before Yukon Northwest territories Nunavut British Columbia Alberta Saskatchewan Road construction Quebec Manitoba Materials Ontario Maintenance Bitumen/Emulsions New Brunswick Nova Scotia 32
Slide 33: A Perfect Geographical and Business Fit (after)
A PERFECT GEOGRAPHICAL AND BUSINESS FIT after Yukon Northwest territories Nunavut British Columbia Alberta Saskatchewan Road construction Quebec Manitoba Materials Ontario Maintenance Bitumen/Emulsions New New business scope contributed by the Miller Brunswick and McAsphalt Group Nova Scotia 33
Slide 34: Transaction Terms and Timeline
TRANSACTION TERMS AND TIMELINE ACQUISITION OF 100% OF THE EQUITY INTEREST IN THE MILLER AND MCASPHALT GROUP PRICE Around 12x the average operating profita CONDITIONS PRECEDENT Notably, obtaining Canadian regulatory approvals (Canada Competition Act, the Investment Canada Act and the Canada Transport
Slide 35: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 35
Slide 36: Condensed Consolidated Income Statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) €m H1 2016 H1 2017 Change Sales 14,669 15,162 +3%a Current operating profit 206 385 +€179m Other operating income and expensesb (149) 32 +€181m Operating profit 57 417 +€360m Cost of net debt (118) (115) +€3m o/w financial income 14 10 -€4m o/w financial
Slide 37: Condensed Consolidated Income Statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) €m H1 2016 H1 2017 Change Income tax 1 (100) -€101m Share of net profit of joint ventures and associates 32 85 +€53m o/w Alstom 0a 45 +€45m Net profit/(loss) from continuing operations (26) 294 +€320m Net profit attributable to non-controlling interests
Slide 38: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June End-June €m Change 2016 2017 2016 Non-current assets 17,432 17,669 +€237m 17,414 Current assets 17,301 17,302 +€1m 15,768 Held-for-sale assets and operations 121 90 -€31m - TOTAL ASSETS 34,854 35,061 +€207m 33,182 Shareholders' equity 9,420 9,173
Slide 39: Change in Net Debt Position in H1 2017 (1/2)
CHANGE IN NET DEBT POSITION IN H1 2017 (1/2) €m Net debt at Net debt at 31-12-2016 30-06-2017 (1,866) +102 0 +4 -607 Operation Acquisitions/ Otherb 700 MHz (4,265) Disposalsa Dividends frequencies -1,898 H1 2016 (2,561) +735c -10 -656 -117 -1,745 (4,354) (a) Includes divestment of Groupe AB and of T
Slide 40: Change in Net Debt Position in H1 2017 (2/2)
CHANGE IN NET DEBT POSITION IN H1 2017 (2/2) €m Breakdown of operation Net cash flowa Net capex Change in operating WCR +838 and other b -722 -2,014 -1,898 H1 2016 +719 -789 -1,675 -1,745 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relating to operati
Slide 41: Contribution to Net Capital Expenditure by Sector of Activity
CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 227 183 -€44m o/w Bouygues Construction 89 34 -€55m o/w Bouygues Immobilier 10 11 +€1m o/w Colas 128 138 +€10m TF1 96 91 -€5m Bouygues Telecom 464 444 -€20m Holding company and other 2 4 +
Slide 42: Debt Maturity Schedule at End-June 2017
DEBT MATURITY SCHEDULE AT END-JUNE 2017 Available cash: €8.6bn €10bn €9bn €8bn €7bn Undrawn €6bn MLT facilities €5.9bn €5bn €4bn €3bn €2bn Cash €1bn €2.7bn €0bn Liquidity 42
Slide 43: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 43
Slide 44: Outlook Confirmed
OUTLOOK CONFIRMED H1 2017 RESULTS CONFIRM THE TARGET OF AN IMPROVEMENT IN GROUP PROFITABILITY IN 2017 The current operating margin at the construction businesses should continue to improve (before including a capital gain of around €25m in Q3 2017 on the sale of 50% of Nextdoor and on the remeasurem
Slide 45: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 45
Slide 46: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Order intakea (€m) Backlog by region (end-June 2017) International +8% 5% €5.9bn €5.6bn 4% €5.2bn €5.2bn 32% 2,252 3,699 2,416 2,486 +3% 2,922 2,770 3,122 +13% 44% 2,153 15% H1 2014 H1 2015 H1 2016 H1 2017 (a) Contracts are booked as order intakes at
Slide 47: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€m) Commercial property +6% €1.2bn €1.3bn €1.0bn 90 -53% 191 €0.7bn 165 62 +18% 1,004 1,182 675 832 H1 2014 H1 2015 H1 2016 H1 2017 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (
Slide 48: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS Backlog (€m) +1%a €8.2bn €8.1bn €8.1bn €8.0bn €m H1 2016 H1 2017 Change 3,515 3,169 3,115 3,383 +9% Sales 4,678 5,002 +7%a o/w France 2,638 2,812 +7% o/w international 2,040 2,190 +7% Current operating profit/(loss) (85) (136) -€51m Operating profit/(loss)b (115) (140) -€2
Slide 49: Continued Targeted Growth in International Markets
ANNEX CONTINUED TARGETED GROWTH IN INTERNATIONAL MARKETS BOUYGUES OPERATES IN GROWING COUNTRIES WITH A LOW-RISK PROFILE NORTHERN AND CENTRAL EUROPE 0% RUSSIA: +1.4% UK: +2.0% 43% Switzerland: +1.4% NORTH AMERICA Poland: +3.4% 20% US: +2.3% Canada: +1.9% 1% SOUTHERN EUROPE: +1.7% 1% MIDDLE EAST: +1.9
Slide 50: Key Indicators at Bouygues Telecom (1/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (1/2) Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Q1 2017 Q2 2017 '000 customers (end of period) Mobile customer base 12,130 12,433 12,660 12,996 12,996 13,359 13,641 Mobile customer base 10,251 10,421 10,533 10,682 10,682 10,773 10,819 excl. MtoM o/w plana 9,290 9,
Slide 51: Key Indicators at Bouygues Telecom (2/2)
ANNEX KEY INDICATORS AT BOUYGUES TELECOM (2/2) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Mobile ARPUa €/month/subscriber 22.4 22.4 23.0 22.7 22.5 22.3 Plan ARPUa €/month/subscriber 23.6 23.6 24.1 23.8 23.6 23.2 Prepaid ARPUa €/month/subscriber 7.0 7.2 7.3 7.1 6.9 7.2 Data usageb MB/month/subsc
Slide 52: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY lfl & €m H1 2016 H1 2017 Change constant fxa Construction businessesb 11,383 11,723 +3% +3% o/w Bouygues Construction 5,800 5,714 -1% -1% o/w Bouygues Immobilier 1,047 1,155 +10% +10% o/w Colas 4,678 5,002 +7% +7% TF1 1,025 1,037 +1% 0% Bouygues Telecom 2,291 2,434
Slide 53: Contribution to Group EBITDA by Sector of Activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 256 263 +€7m o/w Bouygues Construction 185 200 +€15m o/w Bouygues Immobilier 32 64 +€32m o/w Colas 39 (1) -€40m TF1 162 187 +€25m Bouygues Telecom 408 547 +€139m Holding company and other (24)
Slide 54: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 125 133 +€8m o/w Bouygues Construction 151 196 +€45m o/w Bouygues Immobilier 59 73 +€14m o/w Colas (85) (136) -€51m TF1 58 108 +€50m Bouygues Telecom 38 162 +€124m Holding com
Slide 55: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 85 129 +€44m o/w Bouygues Construction 143a 196 +€53m o/w Bouygues Immobilier 57a 73 +€16m o/w Colas (115)a (140)b -€25m TF1 3a 96b +€93m Bouygues Telecom (5)a 210b +€215m Holding com
Slide 56: Contribution to Net Profit Attributable to the Group by Sector
ANNEX CONTRIBUTION TO NET PROFIT ATT. TO THE GROUP BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 65 111 +€46m o/w Bouygues Construction 100 159 +€59m o/w Bouygues Immobilier 34 37 +€3m o/w Colas (69) (85) -€16m TF1 0 33 +€33m Bouygues Telecom (12) 122 +€134m Alstom 0a 45 +€
Slide 57: Contribution to Group Net Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 280 325 +€45m o/w Bouygues Construction 170 216 +€46m o/w Bouygues Immobilier 34 45 +€11m o/w Colas 76 64 -€12m TF1 120 149 +€29m Bouygues Telecom 395 425 +€30m Holding company and othe
Slide 58: Contribution to Group Free Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2016 H1 2017 Change Construction businesses 53 142 +€89m o/w Bouygues Construction 81 182 +€101m o/w Bouygues Immobilier 24 34 +€10m o/w Colas (52) (74) -€22m TF1 24 58 +€34m Bouygues Telecom (69) (19) +€50m Holding company and
Slide 59: Net Debt/Net Surplus Cash
ANNEX NET DEBT (-)/NET SURPLUS CASH (+) End-June End-June €m Change 2016 2017 Bouygues Construction 2,707 2,765 +€58m Bouygues Immobilier (240) (454) -€214m Colas (316) (570) -€254m TF1 133a 248 +€115m Bouygues Telecom (1,267)b (1,010) +€257m Holding company and other (5,371) c (5,244) +€127m TOTAL
Slide 60: Impacts of Exceptional Items on Net Profit Attributable to the Group
ANNEX IMPACTS OF EXCEPTIONAL ITEMS ON NET PROFIT ATTRIBUTABLE TO THE GROUP €m H1 2016 H1 2017 Change Net profit/(loss) attributable to the Group (28) 240 +€268m o/w non-current income/charges related to Bouygues Telecom (net of taxes) 25 (30) -€55m o/w non-current income/charges related to TF1 (net