Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2020 Earnings Presentation
60 slides from Bouygues Sa's earnings presentation, Aug 27, 2020
Slide 1: First-Half 2020 Results
FIRST-HALF 2020 RESULTS 27 AUGUST 2020 PRESENTATION
Slide 2: Forward-looking statements
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 of H1 2020
HIGHLIGHTS OF H1 2020 GROUP Generated current operating profit in Q2, despite the strong impact of the Covid-19 crisis Robust financial structure and high level of liquidity with €11.1bn in available cash at end-June 2020 CONSTRUCTION BUSINESSES Backlog at the record level of €35.7bn at en
Slide 5: Group Key Figures (1/2)
GROUP KEY FIGURES (1/2) STRONG IMPACT OF THE COVID-19 CRISIS ON RESULTS, €m H1 2019 H1 2020 Change AS EXPECTED Sales 17,446 14,758 -15%a Sales were down 15% (-€2.7bn) year-on-year, reduced by o/w France 10,553 8,533 -19% the impact of Covid-19 estimated at -€2.8bn o/w international 6,893 6,225 -
Slide 6: Group Key Figures (2/2)
GROUP KEY FIGURES (2/2) CURRENT OPERATING PROFIT OF €110M GENERATED IN Q2 2020, DESPITE THE STRONG IMPACT OF THE COVID-19 CRISIS, DEMONSTRATING THE PROACTIVE RESPONSE OF THE BUSINESS SEGMENTS Growth in current operating profit at Bouygues Telecom year-on-year, savings in cost of programs at TF1
Slide 7: Group Liquidity at High Level
GROUP LIQUIDITY AT HIGH LEVEL AVAILABLE CASH AT END-JUNE 2020: €11.1BN Available cash (€bn) Debt maturity schedule at end-June 2020 (€bn) Even spread of Before reimbursement of €1bn debt maturity schedule on 22 July 2020 4.4 3 €11.1bn 6.7 No covenants on 2 medium/long-term facilitiesa 1 Undrawn ML
Slide 8: Robust Financial Structure of the Group
ROBUST FINANCIAL STRUCTURE OF THE GROUP End-Dec End-June End-June €m Change Change 2019 2020 2019 Shareholders' equity 11,800 11,451 -€349m 10,563 +€888m Net surplus cash (+)/Net debt (-)a (2,222) (3,905) -€1,683m (6,205) +€2,300m Net gearing 19% 34% +15 pts 59% -25 pts THE USUAL SEASONAL NATURE O
Slide 9: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEXES 9
Slide 10: Construction Businesses
CONSTRUCTION BUSINESSES Tram in operation – Caen – France Construction of a tunnel – Hong Kong D’une rive à l’autre – Neuilly-sur-Seine – France (developed jointly with Sogeprom) 10
Slide 11: Backlog in the Construction Businesses at a Record Level
BACKLOG IN THE CONSTRUCTION BUSINESSES AT A RECORD LEVEL Backlog in the construction businesses (€bn) +6%a BACKLOG AT END-JUNE 2020 PROVIDES GOOD VISIBILITY: €35.7BN 35.7 (+€1.9BN YEAR-ON-YEAR) 33.8 2.4 2.3 +4% Strong growth in order intake at Bouygues Construction 10.1 > +18% year-on-year in H1
Slide 12: Good Commercial Momentum in Q2 2020
GOOD COMMERCIAL MOMENTUM IN Q2 2020 EXAMPLES OF CONTRACTS BOOKED Design, construction and installation of 71 foundations for Contracts worth €160m in the United States, Arena Porte de la Chapelle sports complex the future offshore wind farm at Fécamp – France (€552m)a including a €58m contract for t
Slide 13: Key Figures in the Construction Businesses
KEY FIGURES IN THE CONSTRUCTION BUSINESSES €m H1 2019 H1 2020 Change STRONG IMPACT OF THE COVID-19 PANDEMIC ON Sales 13,398 10,842 -19%a H1 2020 RESULTS o/w France 6,591 4,716 -28% o/w international 6,807 6,126 -10% Sales were down 19% (-€2.6bn) and current operating Current operating profit/(lo
Slide 14: Proactive Management of the Covid-19 Crisis
PROACTIVE MANAGEMENT OF THE COVID-19 CRISIS SHUT-DOWN OF LOCKDOWN IN FRANCE AND SUDDEN LOCKDOWN GRADUAL EASING WORKSITES IN SPREAD OF PANDEMIC TO IN FRANCE OF LOCKDOWN HONG KONG OTHER GEOGRAPHIES (14 DAYS) FEBRUARY MARCH APRIL/MAY JUNE/JULY/AUGUST Initial Organization of worksite Gradual start
Slide 15: Outlook for Construction Businesses: Stimulus Plans
ENCOURAGING OUTLOOK FOR THE CONSTRUCTION BUSINESSES DUE TO THE ANNOUNCEMENT OF SEVERAL STIMULUS PLANS SOME HAVE ENVIRONMENTAL CONTENT UK: £5bn Canada: CAD180bn “New Deal” stimulus plan 12-year “Investing in Canada” focused on infrastructure infrastructure plan European Union: €1,800bn France: €100bn
Slide 16: Large Portfolio of Low-Carbon Solutions
BOUYGUES IS WELL-POSITIONED WITH A LARGE PORTFOLIO OF LOW-CARBON SOLUTIONS Sustainable Renewable energy Renovation Clean mobility construction Expertise ECO-CONSTRUCTION CONSTRUCTION AND OPERATION OPTIMIZATION OF ENERGY AND OPTIMIZATION OF ENERGY AND ECO-DESIGN OF RENEWABLE ENERGY SERVICES FOR BUILD
Slide 17: Low-Carbon Solution Examples
LOW-CARBON SOLUTION EXAMPLES Expertise ECO-CONSTRUCTION CONSTRUCTION AND OPERATION OF OPTIMIZATION OF ENERGY AND OPTIMIZATION OF ENERGY AND ECO-DESIGN RENEWABLE ENERGY PRODUCTION SERVICES FOR BUILDINGS AND TRANSPORTATION SERVICES INFRASTRUCTURE NEIGHBORHOODS ABC The first “autonomous” Alizé Floatgen
Slide 18: TF1
SETE= MARSEILLE HARBONNE:
Slide 19: Key Figures at TF1 Group
KEY FIGURES AT TF1 GROUP SALES DOWN 23% (-€261M) YEAR-ON-YEAR, DUE TO THE IMPACT OF THE COVID-19 CRISIS ESTIMATED AT AROUND €250M Mass cancellations or postponements of ad campaigns €m H1 2019 H1 2020 Change Shut-down then gradual restart of production shooting Sales 1,145 884 -23%a activities
Slide 20: Bouygues Telecom
bouygues TELECOM UK CALNE A eace malin?»
Slide 21: Good Commercial Momentum Since End of Lockdown
GOOD COMMERCIAL MOMENTUM SINCE THE END OF LOCKDOWN Mobile plan customers excl. MtoMa THE LEVEL OF NEW ADDS IS HIGHER THAN BEFORE THE CRISIS (millions of customers) 11.8 SINCE THE REOPENING OF STORES ON 11 MAY 2020 11.2 Return of premium mobile customers to stores, leading to high 10.6 conversion
Slide 22: Number One in Quarterly Sales Growth Since Mid-2017
NUMBER ONEa IN QUARTERLY SALESb GROWTH SINCE MID-2017 Mobile & fixed ABPU (€/customer/month) GROWTH IN SALES FROM SERVICESc OVER 20 CONSECUTIVE 27.2 QUARTERS 25.6 25.9 CONTINUED UPWARD TREND IN MOBILE (EXCLUDING ROAMING 19.6 19.4 19.7* IMPACT) AND FIXED ABPUc YEAR-ON-YEAR +€0.3 in mobile to €1
Slide 23: Key Figures at Bouygues Telecom
KEY FIGURES AT BOUYGUES TELECOM €m H1 2019 H1 2020 Change 8% GROWTH IN SALES FROM SERVICESa Sales 2,913 3,042 +4%b IN H1 2020 YEAR-ON-YEAR o/w sales from services 2,226 2,404 +8% Total sales: +4% o/w other sales 687 638 -7% Decline in Other salesa mainly related to lower handset EBITDA after L
Slide 24: Presentation of Euro-Information Telecom (EIT)
PRESENTATION OF EURO-INFORMATION TELECOM (EIT) KEY FIGURES LEADING MVNO OPERATOR IN THE FRENCH MARKET 2018 sales: Fully-owned by the Crédit Mutuel group €518m Customer base of SPANS 3 KEY MOBILE MARKET SEGMENTS: BtoC, over 2 million BtoB AND WHOLESALE FOR MVNOS Around 150 employees Via five
Slide 25: Strategic Rationale of the Operation
STRATEGIC RATIONALE OF THE OPERATION THE BtoC MOBILE MARKET IS GRADUALLY APPROACHING MATURITY. ACQUIRING EIT IS A SWIFT RESPONSE TO THIS CHALLENGE AND HAS THREE ADVANTAGES FOR BOUYGUES TELECOM: Provides additional Improves profitability and Accelerates growth in both distribution channels secures
Slide 26: Acquisition Price and Next Steps
ACQUISITION PRICE AND NEXT STEPS ACQUISITION PRICEa INCLUDES A fixed part payable at closing of €530m An additional part of between €140m and €325m Payable over 5 years, contingent on the sales generated by the bank network NEXT STEPS Ongoing consultation of employee representative bodies at B
Slide 27: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEXES 27
Slide 28: Condensed Consolidated Income Statement
CONDENSED CONSOLIDATED INCOME STATEMENT €m H1 2019 H1 2020 Change Sales 17,446 14,758 -15%a Current operating profit/(loss) 453 (132) -€585m Other operating income and expenses 42b (44) c -€86m Operating profit/(loss) 495 (176) -€671m Cost of net debt (107) (94) +€13m o/w financial income 17 15 -€2m
Slide 29: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m Change 2019 2020 Non-current assets 20,239 20,371 +€132m Current assets 19,115 21,091 +€1,976m Held-for-sale assets and operations - - - TOTAL ASSETS 39,354 41,462 +€2,108m Shareholders' equity 11,800 11,451 -€349m Non-current liabilities 8,10
Slide 30: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m Change 2019 2020 Non-current assets 20,239 20,371 +€132m Of which: Current assets 19,115 21,091 +€1,976m • Property, plant & equipment: -€136m • Investments in JVs and associates: +€281m, Held-for-sale assets and including - - - operations • V
Slide 31: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m Change 2019 2020 Non-current assets 20,239 20,371 +€132m Current assets 19,115 21,091 +€1,976m Of which: Held-for-sale assets and • Cash and cash equivalents: +€1,102m - - - operations TOTAL ASSETS 39,354 41,462 +€2,108m Shareholders' equity 1
Slide 32: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m Change 2019 2020 Non-current assets 20,239 20,371 +€132m Current assets 19,115 21,091 +€1,976m Held-for-sale assets and - - - operations TOTAL ASSETS 39,354 41,462 +€2,108m Shareholders' equity 11,800 11,451 -€349m Of which: Non-current liabil
Slide 33: Condensed Consolidated Balance Sheet
CONDENSED CONSOLIDATED BALANCE SHEET End-Dec End-June €m Change 2019 2020 Non-current assets 20,239 20,371 +€132m Current assets 19,115 21,091 +€1,976m Held-for-sale assets and - - - operations TOTAL ASSETS 39,354 41,462 +€2,108m Shareholders' equity 11,800 11,451 -€349m Non-current liabilities 8,10
Slide 34: Change in Net Debt Position in H1 2020 (1/2)
CHANGE IN NET DEBTa POSITION IN H1 2020 (1/2) €m Net debt at 31/12/2019 Net debt at 30/06/2020 Operations -39 +16 -5 (2,222) Acquisitionsb/ Capital Dividendsd disposals transactionsc and other -1,655 (3,905) H1 2019 (3,612) -170e -14f -708 -1,701 (6,205) (a) See glossary for definition (b) Including
Slide 35: Change in Net Debt Position in H1 2020 (2/2)
CHANGE IN NET DEBTa POSITION IN H1 2020 (2/2) €m Breakdown of operations Repayment of Net cash flowb lease obligations +573 Net capex -190 Changes in WCR related to operating -607 activities Changes in WCR +383 related to property, -1,655 Net cash flow including lease expenses -1,037 plant & equipme
Slide 36: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEXES 36
Slide 37: The Crisis Validates the Group's Strategic Choices
THE CRISIS AND ITS CONSEQUENCES VALIDATE THE GROUP’S STRATEGIC CHOICES Strengthen the more resilient businesses > Accelerate the growth of Bouygues Telecom (EIT, BtoB, 5G, FTTH) > Develop the Energies & Services activities, particularly in the growth markets of sustainable construction and renewab
Slide 38: New Phase in Climate Strategy
THE GROUP MAINTAINS ITS AMBITION OF IMPLEMENTING A NEW PHASE IN ITS CLIMATE STRATEGY Reduce the carbon footprint of its activities while strengthening the portfolio of low-carbon solutions within the framework of green stimulus plans Confirmation of the definition of a greenhouse gas emissions r
Slide 39: 2020 Outlook for the Group
2020 OUTLOOK FOR THE GROUP NOTE THAT THE GROUP HAS WITHDRAWN ITS FINANCIAL GUIDANCE The Group has not set new guidance for 2020 due to the uncertainty of the ongoing Covid-19 crisis and its impact for the rest of the year Thanks to the responsiveness of the business segments and the measures t
Slide 40: Conclusion
CONCLUSION “The long-term trends on which the Group relies remain buoyant, despite the current crisis. After a challenging first-half 2020, our fundamentals and our strategy should enable us to return to growth in all three sectors of activitya” Martin Bouygues (a) Based on information known to date
Slide 41: Calendar
CALENDAR 4 September 2020 Ordinary General Meeting (2.30 (2.30pm CET) 19 November 2020 Nine-month 2020 results (7.30am CET) Bourse du Commerce building – Paris 41
Slide 42: Questions and Answers
QUESTIONS AND ANSWERS Martin Bouygues Olivier Roussat Pascal Grangé Chairman and CEO Deputy CEO Chief financial officer Philippe Bonnave Pascal Minault Frédéric Gardès Gilles Pélisson Richard Viel Chairman and CEO Chairman CEO Chairman and CEO CEO 42
Slide 43: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEXES 43
Slide 44: Backlogs in the Construction Businesses
ANNEX BACKLOGS IN THE CONSTRUCTION BUSINESSES International backlog (€bn) Backlog in France (€bn) +9%a +2%a 20.9 14.8 14.5 0.1 19.2 0.1 2.2 2.3 +4% +4% 6.5 6.3 3.6 3.6 +3%b -1% +12%c +2% 14.3 12.8 8.7 8.9 End-June 2019 End-June 2020 End-June 2019 End-June 2020 Bouygues Construction Colas Bouygues Im
Slide 45: Key Figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION International Order intakea (€bn) Backlog by geographic region (at end-June 2020) France +18% 6% 3% France 6.0 6.3 Asia-Pacific 38% 5.3 34% 23.2 €bn Europe (excl. France) 3.0 Americas Africa and Middle East 2.9 4.3 +46% 19% 3.0 2.4 2.0 €m H1 2019 H1 2020 Ch
Slide 46: Key Figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Residential property Reservationsa (€bn) Commercial property 1.2 -10% €m H1 2019 H1 2020 Change 0.1 1.0 0.0 0.9 Sales 1,086 701 -35%a 0.0 nm o/w residential 1,008 635 -37% 1.1 o/w commercial 78 66 -15% 1.0 0.9 Current operating profit/(loss) 29 (38) -€67m -8%
Slide 47: Key Figures at Colas
ANNEX KEY FIGURES AT COLAS International and French Backlog (€bn) overseas territories +1%a Mainland France 9.9 10.1 €m H1 2019 H1 2020 Change 9.5 Sales 5,834 4,870 -17%a +3%b o/w France 3,071 2,236 -27% 5.9 6.3 6.5 o/w international 2,763 2,634 -5% Current operating profit/(loss) (136) (304) -€168m
Slide 48: Key Indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Sales from mobile services (€m) 719 734 779 754 2,986 751 776 804 818 3,149 816 805 Sales from fixed services (€m) 312 309 319 330 1,270 343 356 367 382 1,448 389 394 Mo
Slide 49: FTTH Premises Marketed (Millions)
ANNEX FTTHa PREMISES MARKETEDb (MILLIONS) Total premises on the marketc Bouygues Telecom at end-June 2020 Very Dense 6.4 Area 4.5 Target of FTTH premises marketed by end-2022 Medium Dense Area 13.2 AMIId 8.3 22 35.5 14.3 Public Initiative 15.9 Network (PIN) Aread 1.5 (a) Fiber-To-The-Home – optical
Slide 50: Sales by Sector of Activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & €m H1 2019 H1 2020 Change constant fx a Construction businessesb 13,398 10,842 -19% -19% o/w Bouygues Construction 6,539 5,321 -19% -19% o/w Bouygues Immobilier 1,086 701 -35% -35% o/w Colas 5,834 4,870 -17% -15% TF1 1,145 884 -23% -23% Bouygues Telecom 2,913
Slide 51: Contribution to Group EBITDA After Leases by Sector
ANNEX CONTRIBUTION TO GROUP EBITDA AFTER LEASESa BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 312 (232) -€544m o/w Bouygues Construction 267 (62) -€329m o/w Bouygues Immobilier 16 (37) -€53m o/w Colas 29 (133) -€162m TF1 264 160 -€104m Bouygues Telecom 653 711 +€58m Bouygu
Slide 52: Contribution to Group Current Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 72 (437) -€509m o/w Bouygues Construction 179 (95) -€274m o/w Bouygues Immobilier 29 (38) -€67m o/w Colas (136) (304) -€168m TF1 163 68 -€95m Bouygues Telecom 230 253 +€23m Bo
Slide 53: Contribution to Group Operating Profit by Sector
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 64 (482) -€546m o/w Bouygues Construction 171 (95) -€266m o/w Bouygues Immobilier 29 (38) -€67m o/w Colas (136) (349) -€213m TF1 163 68 -€95m Bouygues Telecom 280 254 -€26m Bouygues S
Slide 54: Contribution to Net Profit Attributable to the Group by Sector
ANNEX CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 35 (384) -€419m o/w Bouygues Construction 121 (66) -€187m o/w Bouygues Immobilier 13 (33) -€46m o/w Colas (99) (285) -€186m TF1 47 17 -€30m Bouygues Telecom 150 142 -€8m
Slide 55: Contribution to Group Net Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 202 (239) -€441m o/w Bouygues Construction 232 (45) -€277m o/w Bouygues Immobilier (10) (44) -€34m o/w Colas (20) (150) -€130m TF1 236 139 -€97m Bouygues Telecom 591 695 +€104m Bouygues
Slide 56: Contribution to Net Capital Expenditure by Sector
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses 209 111 -€98m o/w Bouygues Construction 106 37 -€69m o/w Bouygues Immobilier 6 2 -€4m o/w Colas 97 72 -€25m TF1 114 107 -€7m Bouygues Telecom 454 387 -€67m Bouygues SA and other 1 2
Slide 57: Contribution to Group Free Cash Flow by Sector
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY €m H1 2019 H1 2020 Change Construction businesses (98) (454) -€356m o/w Bouygues Construction 80 (135) -€215m o/w Bouygues Immobilier (20) (50) -€30m o/w Colas (158) (269) -€111m TF1 113 22 -€91m Bouygues Telecom 73 233 +€160m Bouygue
Slide 58: Net Surplus Cash / Net Debt
ANNEX NET SURPLUS CASH (+)/NET DEBT (-)a End-Dec End-June €m Change 2019 2020 Bouygues Construction 3,113 2,599 -€514m Bouygues Immobilier (279) (548) -€269m Colas (367) (1,065) -€698m TF1 (127) (22) +€105m Bouygues Telecom (1,454) (1,659) -€205m Bouygues SA and other (3,108) (3,210) -€102m Group ne
Slide 59: 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 60: 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