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Bouygues SA — H1 2008 Earnings Presentation
31 slides from Bouygues SA's earnings presentation, August 2008
Slide 1: Highlights and key figures; business areas; financial statements; outlook
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OUTLOOK AND OBJECTIVES
Slide 2: 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
Slide 3: 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
Slide 4: 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
Slide 5: 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
Slide 6: 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
Slide 7: 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
Slide 8: 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
Slide 9: 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
Slide 13: 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
Slide 14: 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
Slide 15: 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
Slide 16: 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%
Slide 17: 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
Slide 18: 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
Slide 19: 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
Slide 20: 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
Slide 21: 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
Slide 22: 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
Slide 23: 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
Slide 24: 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
Slide 25: 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
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: French telecoms market: more competitive than 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
Slide 30: 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%
Slide 31: 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%