Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q3 2020 Earnings Presentation
53 slides from Bouygues Sa's earnings presentation, Nov 19, 2020
Slide 1: Nine-Month 2020 Results Presentation
NINE-MONTH 2020 RESULTS 19 NOVEMBER 2020 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: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 3
Slide 4: Highlights for 9M 2020 (1/2)
HIGHLIGHTS FOR 9M 2020 (1/2) ⚫ GROUP ◼ Very good Q3 2020 results with higher profitability than one year ago > Sharp rise in current operating profit (€813m, +22% year-on-year) and current operating margin (8%, +1.5pts) ◼ Robust financial structure and high level of liquidity: €10.1bn in available c
Slide 5: Highlights for 9M 2020 (2/2)
HIGHLIGHTS FOR 9M 2020 (2/2) ⚫ CONSTRUCTION BUSINESSES ◼ Backlog offering good visibility: €33.5bn at end-September 2020 ◼ Return to normal level of activity in most countries ◼ Positive current operating profit in 9M 2020 thanks to strong Q3 performance in the 3 business segments ⚫ TF1 ◼ Very good
Slide 6: Group Key Figures (1/2)
GROUP KEY FIGURES (1/2) ⚫ RESULTS FOR 9M 2020 REFLECT A MAJOR IMPROVEMENT IN EARNINGS IN Q3, FOLLOWING THE STRONG IMPACT OF THE COVID-19 CRISIS IN H1 ◼ Strong improvement in sales in Q3 2020 €m 9M 2019 9M 2020 Change (+1%a in Q3 vs. -8%a in Q1 and -21%a in Q2 year-on-year) Sales 27,601 24,948 -10%b
Slide 7: Group Key Figures (2/2)
GROUP KEY FIGURES (2/2) ⚫ SHARP RISE IN CURRENT OPERATING PROFIT AND MARGIN IN Q3 2020 YEAR-ON-YEAR, BETTER THAN EXPECTED ◼ Strong performance at Colas and return to profit at Bouygues Construction and Bouygues Immobilier (catch-up of activity mainly in France, cost-saving measures globally, and com
Slide 8: Group Liquidity at High Level
GROUP LIQUIDITY AT HIGH LEVEL ⚫ AVAILABLE CASH AT END-SEPTEMBER 2020: €10.1BN Available cash (€bn) Debt maturity schedule at end-September 2020 (€bn) 4 Reimbursement of €1bn 3 2.4 on 22 July 2020 2 €10.1bn Evenly spread 1 debt maturity schedule 7.7 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 No c
Slide 9: Robust Financial Structure of the Group
ROBUST FINANCIAL STRUCTURE OF THE GROUP End- End- End-Dec €m September Change September Change 2019 2020 2019 Shareholders' equity 11,800 11,288 -€512m 11,224 +€64m Net surplus cash (+)/Net debt (-)a (2,222) (3,661) -€1,439m (4,643) +€982m Net gearing 19% 32% +14pts 41% -9pts ⚫ €982M DECREASE IN NET
Slide 10: Change in Net Debt Position in 9M 2020 (1/2)
CHANGE IN NET DEBTa POSITION IN 9M 2020 (1/2) €m Net debt at 31/12/2019 Net debt at 30/09/2020 0 -55 +30 (2 222) -687 -727 Acquisitionsb/ Capital (3 661) Alstom disposals transactionsc Dividends Operations and other 9M 2019 (3,612) +1,420d -165e +8f -710 -1,584 (4,643) (a) See glossary for definitio
Slide 11: Change in Net Debt Position in 9M 2020 (2/2)
CHANGE IN NET DEBTa POSITION IN 9M 2020 (2/2) €m Breakdown of operations +1,771 -267 Repayment of lease obligations -963 Net capex -727 -1,096 Net cash flowb -134 -38 Changes in WCR related to Changes in WCR +1,504 operating activities related to property, Other Net cash flow including lease expense
Slide 12: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 12
Slide 13: Construction Businesses
CONSTRUCTION BUSINESSES Albert 1er office building - France Construction of a long-distance cycling road - France Vortex complex - Switzerland 13
Slide 14: Backlog in the Construction Businesses Provides Good Visibility
BACKLOG IN THE CONSTRUCTION BUSINESSES Backlog in the construction businesses PROVIDES GOOD VISIBILITY (€bn) a +3% ⚫ BACKLOG OF €33.5BN AT END-SEPTEMBER 2020 32.5 33.5 2.2 2.2 -2% ◼ Close to record level at end-September 2018 9.3 9.1 +2%b ◼ €1bn higher than last year Backlog in the construction busi
Slide 15: Backlog in the Construction Businesses in France
BACKLOG IN THE CONSTRUCTION BUSINESSES IN FRANCE Backlog in France (€bn) a -1% ⚫ BACKLOG AT END-SEPTEMBER 2020 SLIGHTLY DOWN YEAR-ON-YEAR 14.0 13.9 IMPACTED BY THE HEALTH CRISIS AND THE MUNICIPAL ELECTIONS 2.2 -3% 2.1 ◼ Stable backlog at Bouygues Construction ◼ Sustained growth in Colas Rail’s mediu
Slide 16: International Backlog in the Construction Businesses
INTERNATIONAL BACKLOG International backlog (€bn) a IN THE CONSTRUCTION BUSINESSES +6% 19.6 18.5 0.1 +10% 0.1 ⚫ BACKLOG AT END-SEPTEMBER 2020 UP 6% YEAR-ON-YEAR 6.0 5.8 +4%b ◼ Good commercial performance driven by Civil Works, Energies & Services, and Rail ◼ 62% of the backlog at Bouygues Constructi
Slide 17: Key Figures in the Construction Businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES ⚫ RETURN TO POSITIVE CURRENT OPERATING PROFIT IN 9M 2020 AFTER THE STRONG IMPACT OF THE COVID-19 PANDEMIC ON H1 2020 EARNINGS ◼ Strong rebound of activity in Q3 compared to H1 2020 €m 9M 2019 9M 2020 Change > Successful catch-up of activity during the summe
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Slide 19: Key Figures at TF1 Group
KEY FIGURES AT TF1 GROUP ⚫ VERY GOOD PERFORMANCE OF THE BROADCASTING SEGMENT IN Q3 2020 FOLLOWING THE SEVERE IMPACT OF THE COVID-19 CRISIS IN H1 2020 ◼ Q3 2020 advertising revenues up 7.5% year-on-year €m 9M 2019 9M 2020 Change > Longer viewing time of 16a min/day compared to last year since the end
Slide 20: Bouygues Telecom
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Slide 21: Good Commercial Performance
GOOD COMMERCIAL PERFORMANCE Mobile plan customers excl. MtoMa (millions of customers) 12.0 ⚫ 12M MOBILE PLAN CUSTOMERS EXCLUDING MTOMa 11.4 AT END-SEPTEMBER 2020 10.8 10.2 ◼ +455,000 customers in 9M 2020, of which +181,000 in Q3 2020 9.6 ⚫ 1.4M FTTHb CUSTOMERS AT END-SEPTEMBER 2020 Q3 2016 Q3 2017 Q
Slide 22: FTTH Roll-out Accelerating
FTTHa ROLL-OUT ACCELERATING (MILLIONS OF PREMISES MARKETEDb) Bouygues Telecom Bouygues Telecom Bouygues Telecom’s target at end-2019 at end-September 2020 by end-2022 New target 27.0 (22 previously) +4 15.8 11.8 4.8 4.0 9.2 6.8 1.0 1.8 Very Dense Area Medium Dense Area (AMII zone)c Public Initiative
Slide 23: Growth in Sales from Services in Q3 2020
GROWTH IN SALES FROM SERVICESa IN Q3 2020 YEAR-ON-YEAR DESPITE EXPECTED DECLINE IN ROAMING Mobile & fixed ABPU (€/customer/month) 28.1 26.6 ⚫ CONTINUED UPWARD TREND IN MOBILE (EXCLUDING ROAMING 25.5 20.3* IMPACT) AND FIXED ABPUa YEAR-ON-YEAR 19.9 19.9 ◼ +€0.4 in Mobile to €20.3 (restated for roaming
Slide 24: Solid Top Line Growth at Bouygues Telecom
SOLID TOP LINE GROWTH AT BOUYGUES TELECOM ⚫ 7% GROWTH IN SALES FROM SERVICESa YEAR-ON-YEAR ◼ Despite a €63mb drop in roaming €m 9M 2019 9M 2020 Change ⚫ EBITDA AFTER LEASESa UP 7% TO €1,123M INCLUDING Sales 4,426 4,675 +6%c o/w sales from services 3,396 3,636 +7% ◼ One-off brand and advertising expe
Slide 25: 5G Strategy
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Slide 26: 5G Roll-out: Bouygues Telecom's Pragmatic Approach
5G ROLL-OUT: BOUYGUES TELECOM’S PRAGMATIC APPROACH ⚫ THE QUALITY OF THE MOBILE NETWORK IS A CORE PILLAR OF OUR GROWTH STRATEGY AND A MAJOR COMPONENT OF OUR SUCCESS ⚫ OUR GOAL IS TO REMAIN ONE OF THE LEADING MOBILE NETWORKS IN FRANCE ⚫ OUR PRIORITY IS TO ROLL-OUT A RELIABLE 5G NETWORK WHILE MAINTAINI
Slide 27: 4G and 5G Will Coexist for a Long Time
4G AND 5G WILL COEXIST FOR A LONG TIME ◼ Until 2023, 5G will use a 4G core network (referred to as "non-standalone" 5G) ◼ 5G requires a 4G anchor frequency band to operate ◼ The roll-out of 5G compatible terminals will take time ◼ Network densification, particularly in very dense areas, is necessary
Slide 28: Roll-out of a Reliable 5G Network (1/2)
ROLL-OUT OF A RELIABLE 5G NETWORK WHILE MAINTAINING THE QUALITY OF THE 4G NETWORK (1/2) ⚫ UTILIZATION OF THE 3.5GHZ FREQUENCY TO IMPROVE CAPACITY ◼ Allocation of the 3.5GHz frequency > Bouygues Telecom will double its available spectrum at a reasonable price (€602m) > And will benefit from having al
Slide 29: Roll-out of a Reliable 5G Network (2/2)
ROLL-OUT OF A RELIABLE 5G NETWORK WHILE MAINTAINING THE QUALITY OF THE 4G NETWORK (2/2) ⚫ MIGRATION OF THE EXISTING FREQUENCY BANDS USED IN 4G TO 5G TO PROVIDE 5G COVERAGE ◼ The high frequency bands (1800 to 2600 MHz) will be gradually transferred to 5G, starting with the 2100 MHz band ◼ The 2100 MH
Slide 30: A Progressive 5G Roll-out in Line with Client Benefits
A PROGRESSIVE 5G ROLL-OUT IN LINE WITH CLIENT BENEFITS ⚫ THE FIRST STAGE (“NON STANDALONE 5Ga”) WILL HELP MAINTAIN GOOD QUALITY SERVICE IN VERY DENSE AREAS AS RISE IN DATA CONSUMPTION (+40%/YEARb) WILL REQUIRE INCREASED NETWORK CAPACITY ⚫ THE SECOND STAGE (“STANDALONE 5Gc“) WILL ALLOW NEW USAGE FOR
Slide 31: Commercial Launch on 1 December 2020
COMMERCIAL LAUNCH ON 1 DECEMBER 2020 ⚫ A DEDICATED PORTFOLIO OF OFFERS WITH A WIDE RANGE OF 5G AVAILABLE HANDSETS ⚫ ENHANCED CONTENT BUILT ON STRONG PARTNERSHIPS ◼ More than 50 TV channels in HD included in the 5G offers ◼ The first operator in France to bring 5G cloud gaming to the market, offering
Slide 32: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 32
Slide 33: Condensed Consolidated Income Statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m 9M 2019 9M 2020 Change Sales 27,601 24,948 -10%a Current operating profit/(loss) 1,118 681 -€437m Other operating income and expenses 50b (45)c -€95m Operating profit/(loss) 1,168 636 -€532m Cost of net debt (162) (132) +€30m o/w financial income 29 24 -€5m
Slide 34: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 34
Slide 35: 2020 Outlook for the Group
2020 OUTLOOK FOR THE GROUP ◼ STRONG Q3 2020 RESULTS CONFIRMED THE GROUP’S EXPECTED RETURN TO SIGNIFICANT PROFITABILITY, ALLOWING THE UPGRADE OF H2 2020 OUTLOOK ⚫ Group current operating margin in H2 2020 expected to be slightly higher than H2 2019a ◼ BOUYGUES TELECOM RAISES ITS SALES FROM SERVICES G
Slide 36: New Phase in Climate Strategy
THE GROUP CONFIRMS ITS AMBITION TO IMPLEMENT A NEW PHASE IN ITS CLIMATE STRATEGY ⚫ TO REDUCE ITS CARBON FOOTPRINT WHILE STRENGTHENING ITS LOW-CARBON SOLUTIONS PORTFOLIO WITHIN THE FRAMEWORK OF GREEN STIMULUS PLANS ⚫ A CLIMATE MARKETS DAY WILL BE HELD ON 16 DECEMBER 2020 TO ANNOUNCE ◼ A greenhouse ga
Slide 37: Contents
CONTENTS ⚫ HIGHLIGHTS AND KEY FIGURES ⚫ REVIEW OF OPERATIONS ⚫ FINANCIAL STATEMENTS ⚫ OUTLOOK ⚫ ANNEXES 37
Slide 38: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€bn) France +11% Backlog by geographic region (at end-September 2020) 10.2 6% 8.9 2% France 8.1 5.8 39% Asia-Pacific 35% 22.1 €bn Europe (excl. France) +28% 4.5 5.8 Americas Africa and Middle East 4.4 3.6 18% 3.2 -10% 9M 2018 9M
Slide 39: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€bn) Commercial property 1.7 -11% 0.2 1.5 0.1 1.3 0.1 nm 1.5 1.4 1.2 -16% 9M 2018 9M 2019 9M 2020 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial property) Backlogb (€bn
Slide 40: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS International and Backlog (€bn) French overseas territories a +2% Mainland France 9.3 8.7 9.1 6.0 +4%b 5.3 5.8 3.4 3.3 3.3 -1%c End-Sept. 2018 End-Sept. 2019 End-Sept. 2020 Resurfacing of a section of the road A27– France and Belgium (a) Up 3% at constant exchange rates an
Slide 41: Key Indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Sales from mobile services 719 734 779 754 2,986 751 776 804 818 3,149 816 805 830 (€m) Sales from fixed services (€m) 312 309 319 330 1,270 343 356 367 382 1,44
Slide 42: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m 9M 2019 9M 2020 Change constant fxa Construction businessesb 21,583 18,928 -12% -12% o/w Bouygues Construction 9,899 8,611 -13% -13% o/w Bouygues Immobilier 1,610 1,323 -18% -18% o/w Colas 10,182 9,085 -11% -9% TF1 1,615 1,361 -16% -16% Bouygues Telecom 4,4
Slide 43: Contribution to Group EBITDA After Leases by Sector
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 980 546 -€434m o/w Bouygues Construction 395 79 -€316m o/w Bouygues Immobilier 32 (5) -€37m o/w Colas 553 472 -€81m TF1 328 253 -€75m Bouygues Telecom 1,050 1,123 +€73m Bouygues S
Slide 44: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 545 133 -€412m o/w Bouygues Construction 280 19 -€261m o/w Bouygues Immobilier 42 (10) -€52m o/w Colas 223 124 -€99m TF1 184 126 -€58m Bouygues Telecom 405 444 +€39m Bouygues
Slide 45: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 535 72 -€463m o/w Bouygues Construction 270 19 -€251m o/w Bouygues Immobilier 42 (10) -€52m o/w Colas 223 63 -€160m TF1 184 126 -€58m Bouygues Telecom 465 460 -€5m Bouygues SA and oth
Slide 46: Contribution to Net Profit Attributable to the Group by Sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 381 6 -€375m o/w Bouygues Construction 226 5 -€221m o/w Bouygues Immobilier 20 (18) -€38m o/w Colas 135 19 -€116m TF1 52 34 -€18m Bouygues Telecom 251 253 +€2m Alstom 23
Slide 47: Condensed Consolidated Balance Sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-September €m End-Dec 2019 Change 2020 Non-current assets 20,239 19,831 -€408m Current assets 19,115 19,743 +€628m Held-for-sale assets and operations - 333 +€333m TOTAL ASSETS 39,354 39,907 +€553m Shareholders' equity 11,800 11,288 -€512m Non-current li
Slide 48: Contribution to Group Net Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 844 501 -€343m o/w Bouygues Construction 367 119 -€248m o/w Bouygues Immobilier (7) (9) -€2m o/w Colas 484 391 -€93m TF1 291 230 -€61m Bouygues Telecom 936 1,091 +€155m Bouygues SA and
Slide 49: Contribution to Net Capital Expenditure by Sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 304 177 -€127m o/w Bouygues Construction 149 67 -€82m o/w Bouygues Immobilier 7 3 -€4m o/w Colas 148 107 -€41m TF1 161 169 +€8m Bouygues Telecom 638 615 -€23m Bouygues SA and other 2
Slide 50: Contribution to Group Free Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m 9M 2019 9M 2020 Change Construction businesses 400 172 -€228m o/w Bouygues Construction 147 (24) -€171m o/w Bouygues Immobilier (20) (18) +€2m o/w Colas 273 214 -€59m TF1 117 47 -€70m Bouygues Telecom 205 377 +€172m Bouygues SA and
Slide 51: Net Surplus Cash / Net Debt
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End- End-Dec €m September Change 2019 2020 Bouygues Construction 3,113 2,297 -€816m Bouygues Immobilier (279) (434) -€155m Colas (367) (838) -€471m TF1 (127) (71) +€56m Bouygues Telecom (1,454) (1,659) -€205m Bouygues SA and other (3,108) (2,956) +€152m Group
Slide 52: Glossary (1/2)
ANNEX GLOSSARY (1/2) SALES FROM SERVICES (BOUYGUES TELECOM) 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 charge
Slide 53: Glossary (2/2)
ANNEX GLOSSARY (2/2) ABPU (AVERAGE BILLING PER USER): ◼ Sales billed to customers divided by the average number of customers over the period EBITDA AFTER LEASES ◼ Current operating profit, after taking account of the interest expense on lease obligations, before (i) net depreciation and amortization