Bouygues Sa · EURONEXT:EN
Bouygues Sa — H1 2012 Earnings Presentation
62 slides from Bouygues Sa's earnings presentation, Aug 29, 2012
Slide 1: First-half 2012 results presentation
First-half 2012 results presentation Paris – 32 Hoche Building the future is our greatest adventure 29 August 2012 1
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: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 3
Slide 4: Highlights
Highlights Strong commercial activity in the construction businesses A record €28.6-billion order book at end-June 2012, up 13% versus end-June 2011 A stable mobile customer base at Bouygues Telecom at end-June 2012 Net growth in mobile plan customers of 55,000 in Q2 2012 The Group's resul
Slide 5: Group sales
Group sales First half € million 2011 2012 Change Sales 15,214 15,505 +2%1 o/w construction businesses2 11,082 11,550 +4% o/w TF1 1,278 1,301 +2% o/w Bouygues Telecom 2,866 2,676 -7% 1Stable like-for-like and at constant exchange rates 2Bouygues Construction + Bouygues Immobilier + Colas (sales cont
Slide 6: Group results (1/2)
Group results (1/2) First half € million 2011 2012 Change Current operating profit 752 476 -€276m o/w construction businesses 256 212 -€44m o/w TF1 187 134 -€53m o/w Bouygues Telecom 331 148 -€183m Current operating margin 4.9% 3.1% -1.8 pts o/w construction businesses 2.3% 1.8% -0.5 pts o/w TF1 14.
Slide 7: Group results (2/2)
Group results (2/2) First half 2011 2012 Change Net profit attributable to the Group (€m) 391 278 -29% Earnings per share (€) 1.10 0.88 -20% Alstom's contribution stood at €114 million in H1 2012 versus €94 million in H1 2011 7
Slide 8: Group financial position (1/2)
Group financial position (1/2) At 30 June € million 2011 2012 Change Shareholders‟ equity 10,253 9,372 -€881m Net debt 4,341 6,215 +€1,874m Net gearing 42% 66% +24 pts Decrease in shareholders' equity related to the cancellation of shares in 2011 (share repurchase tender offer) Tight control of
Slide 9: Group financial position (2/2)
Group financial position (2/2) First half € million 2011 2012 Change Cash flow 1,502 1,274 -€228m - Cost of net debt (134) (142) -€8m - Income tax expense (223) (130) +€93m 2 - Net capital expenditure (651) (592) +€59m 2 Free cash flow1 494 410 -€84m The decline in free cash flow is mainly related
Slide 10: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 10
Slide 11: Construction businesses
Construction businesses ees B| —<€oLas > "1
Slide 12: BOUYGUES CONSTRUCTION: commercial activity
BOUYGUES CONSTRUCTION: commercial activity Order intake1 Order book at end-June 2012 International Long-term order book (beyond Y+5) For execution in Y+1 France +12% For execution from Y+2 to Y+5 For execution in Y France 6,893 54% €m €17.7bn +14% 6,105 6,134 €15.5bn 2,643 Americas 2,559 €13.9bn 4%
Slide 13: The Nimes-Montpellier railway bypass PPP
The Nimes-Montpellier railway bypass PPP An innovative high-speed rail line project A new shared-track rail infrastructure (freight and passenger trains) between Nimes and Montpellier 80 km of line and two new train stations A Public-Private Partnership (PPP) signed between Réseau Ferré de F
Slide 14: The Hong Kong - Zhuhai - Macao bridge
The Hong Kong - Zhuhai - Macao bridge The largest design-build contract ever awarded in Hong Kong Construction of a bridge between Hong Kong and the cities of Zhuhai and Macao Several technical challenges to be met Works to be carried out using marine-based equipment, shipping lanes to be ke
Slide 15: BOUYGUES CONSTRUCTION: key figures
BOUYGUES CONSTRUCTION: key figures First half € million 2011 2012 Change Sales 4,705 5,028 +7%1 o/w France 2,665 2,721 +2% o/w international 2,040 2,307 +13% Current operating profit 165 163 -€2m Current operating margin 3.5% 3.2% -0.3 pts Net profit attributable to the Group 94 107 +€13m 1Up 2% lik
Slide 16: BOUYGUES IMMOBILIER: business activity
BOUYGUES IMMOBILIER: business activity Reservations1 Order book Commercial property +21% 3,060 1,243 1,314 -20% Residential property 1,166 2,537 522 68 324 1,045 943 2,156 200 410 130 99 317 1,175 €m 2,337 2,538 990 2,026 756 844 728 H1 2008 H1 2009 H1 2010 H1 2011 H1 2012 End-June 2010 End-June 201
Slide 17: Rehagreen Gentilly
Rehagreen® Gentilly Rehagreen®: "green" renovation and rehabilitation projects for existing commercial buildings The challenges of the Gentilly project Bring the building into conformity with international environmental standards: HQE® (4* 2011), BREEAM® (Excellent) Increase the capacity of
Slide 18: BOUYGUES IMMOBILIER: key figures
BOUYGUES IMMOBILIER: key figures First half € million 2011 2012 Change Sales 1,098 1,066 -3%1 o/w residential 923 972 +5% o/w commercial 175 94 -46% Current operating profit 91 83 -€8m Current operating margin 8.3% 7.8% -0.5 pts Net profit attributable to the Group 56 51 -€5m 1Down 3% like-for-like
Slide 19: COLAS: order book
COLAS: order book International and French overseas territories Mainland France 7,856 7,254 7,227 +9% 6,994 6,669 6,472 €m 3,835 3,353 3,676 3,594 +7% 3,310 3,183 3,641 3,578 3,634 4,021 +11% 3,359 3,289 End-March End-March End-June End-June End-Sept End-Dec 2011 2012 2011 2012 2011 2011 The order
Slide 20: COLAS: key figures
COLAS: key figures First half € million 2011 2012 Change Sales 5,400 5,594 +4% 1 o/w France 3,457 2 3,367 -3% o/w international 1,943 2 2,227 +15% Current operating profit 0 (34) -€34m Net profit attributable to the Group 2 (19) -€21m 1Up 2% like-for-like and at constant exchange rates The A75 motor
Slide 21: COLAS: geographic areas
COLAS: geographic areas Harsh weather conditions in France and Northern Europe delayed the execution of contracts in the order book and affected the profitability of the industrial activities Activity and outlook remain strong in North America US highway bill extended for two years Buoyancy
Slide 22: 22
22
Slide 23: TF1: highlights
TF1: highlights A fall in ad spend in a worsening economic environment in Q2 2012 A continued unrivalled position in Europe in free-to-air television A 28.4% audience share1 in H1 2012 versus 29.1% in H1 2011 among individuals aged 4 and over (TF1, TMC and NT1) The award of a fourth free DTT
Slide 24: TF1: key figures
TF1: key figures First half € million 2011 2012 Change Sales 1,278 1,301 +2% 1 o/w Group advertising 905 897 -1% Current operating profit 187 134 -€53m Current operating margin 14.6% 10.3% -4.3 pts Net profit attributable to the Group 119 94 -€25m 1Up 1% like-for-like and at constant exchange rates
Slide 25: Bouygues Telecom
Bouygues i
Slide 26: BOUYGUES TELECOM: mobile business performance
BOUYGUES TELECOM: mobile business performance („000) Net growth of plan customers1 Trends observed in April 2012 confirmed 100 Net growth in plan customers of 55,000 in Q2 2012 50 42 9 4 A stable total mobile customer base in June 2012 0 -52 -66 Net loss of 71,000 customers in Q2 2012 -50 -9
Slide 27: BOUYGUES TELECOM: fixed broadband continues to grow
BOUYGUES TELECOM: fixed broadband continues to grow Fixed broadband net growth („000)1 Fixed broadband sales from network2 (€ million) 132 132 139 122 118 108 96 99 88 83 89 70 +48% +40% Q1 11 Q1 12 Q2 11 Q2 12 Q3 11 Q4 11 Q1 11 Q1 12 Q2 11 Q2 12 Q3 11 Q4 11 1.4 million fixed broadband customers a
Slide 28: BOUYGUES TELECOM: key figures
BOUYGUES TELECOM: key figures First half € million 2011 2012 Change Sales 2,866 2,676 -7%1 Sales from network 2,575 2,386 -7% EBITDA 665 559 -€106m EBITDA/sales from network 25.8% 23.4% -2.4 pts Current operating profit 331 148 -€183m Net profit attributable to the Group 213 92 -€121m A Bbox Sensati
Slide 29: BOUYGUES TELECOM: a change in the mobile business model
BOUYGUES TELECOM: a change in the mobile business model The fall in the contribution from the mobile activity speeded Quarterly trend in ARPU up in Q2 2012 due to €40 The full impact in Q2 2012 of the reduction in the mobile €35 customer base observed in Q1 2012 More and more customers subscri
Slide 30: BOUYGUES TELECOM: growth opportunities in the fixed activity
BOUYGUES TELECOM: growth opportunities in the fixed activity 7 million households are eligible for very-high-speed thanks to the Numericable agreement Bbox Sensation redefines the digital home experience It is the most advanced router on the market, compatible with all technologies (ADSL, cabl
Slide 31: BOUYGUES TELECOM: changes in mobile data
BOUYGUES TELECOM: changes in mobile data An explosion Growth in Faster and Ever richer in equipment faster! content usages 100 4G satisfies these needs by offering Speeds of up to 100 Mbits/s, on a par with fixed very-high-speed 42 broadband Reduced latency1: twice as low as ADSL 21 7.2 0.2 Do
Slide 32: BOUYGUES TELECOM: 4G becomes reality
BOUYGUES TELECOM: 4G becomes reality 4G technology being rolled out since March 2012 Hardware provided to the testers 4G sites opened in Lyon as early as June 2012 400 customers testing the new technology: retail consumers, businesses, professionals, students, employees Usage is tested in re
Slide 33: BOUYGUES TELECOM: key indicators
BOUYGUES TELECOM: key indicators Plan Prepaid Total customer base Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Customers SIM cards („000) 8,900 8,955 2,025 1,899 10,925 10,854 SIM cards (% mix) 81.5% 82.5% 18.5% 17.5% Fixed broadband customer base („000)1 1,329 1,399 Unit data – mobile customers
Slide 34: BOUYGUES TELECOM: mobile termination rates
BOUYGUES TELECOM: mobile termination rates Voice termination rates SMS termination rates € cents/minute for voice At 1 At 1 At 1 At 1 At 1 At 1 At 1 At 1 € cents/unit for SMS July July January July January February July July 2010 2011 2012 2012 2013 2010 2011 2012 Rates to Bouygues Telecom 3.40 2.00
Slide 35: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 35
Slide 36: ALSTOM: starts FY2012/13 with a high level of order intake
ALSTOM A good sales performance in Q1 2012/13 Order intake: €6 billion, up 20% versus Q1 2011/12 A book-to-bill of 1.3 More than 50% of contracts booked are from emerging countries Sales in Q1 2012/13 up 6% versus Q1 2011/12 to €4.8 billion Outlook confirmed Sales: up 5% per year for t
Slide 37: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 37
Slide 38: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) First half € million 2011 2012 Change Sales 15,214 15,505 +2% Operating profit 752 476 -37% Cost of net debt (134) (142) +6% o/w financial income 42 28 -33% o/w financial expenses (176) (170) -3% Other financial income and expenses (2) 8 nm 38
Slide 39: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) First half € million 2011 2012 Change Income tax expense (223) (130) -42% Share of profits and losses from associates 91 131 +44% Net profit 484 343 -29% Minority interests (93) (65) -30% Net profit attributable to the Group 391 278 -29% 39
Slide 40: Sales by business area
Sales by business area First half € million 2011 2012 Change Bouygues Construction 4,705 5,028 +7% Bouygues Immobilier 1,098 1,066 -3% Colas 5,400 5,594 +4% TF1 1,278 1,301 +2% Bouygues Telecom 2,866 2,676 -7% Holding company and other 64 68 nm Intra-Group elimination (197) (228) nm TOTAL 15,214 15,
Slide 41: Contribution of business areas to Group EBITDA
Contribution of business areas to Group EBITDA First half € million 2011 2012 Change Bouygues Construction 252 268 +€16m Bouygues Immobilier 86 69 -€17m Colas 190 131 -€59m TF1 234 174 -€60m Bouygues Telecom 665 559 -€106m Holding company and other (19) (21) -€2m TOTAL 1,408 1,180 -€228m EBITDA = cu
Slide 42: Contribution of business areas to Group current operating profit
Contribution of business areas to Group current operating profit First half € million 2011 2012 Change Bouygues Construction 165 163 -€2m Bouygues Immobilier 91 83 -€8m Colas 0 (34) -€34m TF1 187 134 -€53m Bouygues Telecom 331 148 -€183m Holding company and other (22) (18) +€4m TOTAL 752 476 -€276m
Slide 43: Contribution of business areas to Group net profit
Contribution of business areas to Group net profit Group share First half € million 2011 2012 Change Bouygues Construction 94 107 +€13m Bouygues Immobilier 56 51 -€5m Colas 2 (18) -€20m TF1 51 41 -€10m Bouygues Telecom 191 83 -€108m Alstom 94 114 +€20m Holding company and other (97) (100) -€3m TOT
Slide 44: Condensed consolidated balance sheet
Condensed consolidated balance sheet End-Dec End-June End-June € million Change 2011 2012 2011 Non-current assets 19,442 20,249 +€807m 18,760 Current assets 15,480 15,808 +€328m 16,515 TOTAL ASSETS 34,922 36,057 +€1,135m 35,275 Shareholders‟ equity 9,678 9,372 -€306m 10,253 Non-current liabilities 8
Slide 45: Change in the net cash position in H1 2012 (1/2)
Change in the net cash position in H1 2012 (1/2) Net cash at Net cash at Net cash at 30/06/2011 31/12/2011 €m 30/06/2012 (2,384) -39 (4,033) (4,341) Share repurchase Acquisitions/ -606 +10 tender offer -4 disposals (1,250) Dividends Capital Scope -1,010 (228) paid transactions effects 4G freq. 2.6GH
Slide 46: Change in the net cash position in H1 2012 (2/2)
Change in the net cash position in H1 2012 (2/2) Breakdown of operation Net cash flow1 Net capital expenditure €m +1,002 -5922 Change in the operating WCR3 & other -1,420 -1,010 (2) H1 2011 +1,145 -651 -1,501 -1,007 1Net cash flow = cash flow - cost of net debt - income tax expense 2Excluding invest
Slide 47: Contribution of business areas to Group net cash flow
Contribution of business areas to Group net cash flow First half € million 2011 2012 Change Bouygues Construction 187 203 +€16m Bouygues Immobilier 69 54 -€15m Colas 195 178 -€17m TF1 167 120 -€47m Bouygues Telecom 545 456 -€89m Holding company and other (18) (9) +€9m TOTAL 1,145 1,002 -€143m Net ca
Slide 48: Contribution of business areas to Group net capital expenditure
Contribution of business areas to Group net capital expenditure First half € million 2011 2012 Change Bouygues Construction 121 80 -€41m Bouygues Immobilier 4 6 +€2m Colas 159 125 -€34m TF1 18 13 -€5m Bouygues Telecom 348 366 +€18m Holding company and other 1 2 +€1m Total excluding frequencies 651 5
Slide 49: Contribution of business areas to Group free cash flow
Contribution of business areas to Group free cash flow First half € million 2011 2012 Change Bouygues Construction 66 123 +€57m Bouygues Immobilier 65 48 -€17m Colas 36 53 +€17m TF1 149 107 -€42m 1 Bouygues Telecom 197 90 -€107m Holding company and other (19) (11) 1 -€8m 1 TOTAL 494 410 -€84m Free c
Slide 50: Net cash by business area
Net cash by business area End-June End-June End-Dec € million Change 2011 2012 2011 Bouygues Construction 2,236 2,531 +€295m 2,869 Bouygues Immobilier 390 305 -€85m 507 Colas (1,046) (1,074) -€28m 28 TF1 11 (91) -€102m (40) Bouygues Telecom (619) (1,462) -€843m (581) Holding company and other (5,313
Slide 51: Financing
Financing €m Available cash: €6.9 billion 7,000 6,000 Debt repayment schedule at 30 June 2012 Undrawn 5,000 MLT credit lines 4,000 €5.2 billion 3,000 2,000 Cash 1,000 €1.7 billion 0 51
Slide 52: Agenda
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS ALSTOM FINANCIAL STATEMENTS OUTLOOK AND CONCLUSION 52
Slide 53: Outlook for the construction businesses (1/3)
Outlook for the construction businesses (1/3) In an uncertain world economic environment... Eurozone sovereign debt crisis and inevitable reductions in public deficits Question marks hanging over local authority funding in France Downturn in the French residential market ...Bouygues' const
Slide 54: Outlook for the construction businesses (2/3): major strengths
Outlook for the construction businesses (2/3): major strengths 1 Good visibility on future activity thanks to the order book A record order book of €28.6bn at end-June 2012, up 13% versus end-June 2011 An increase in the depth of the order book Bouygues Construction's 2-year plus order book: 3
Slide 55: Outlook for the construction businesses (3/3): major strengths
Outlook for the construction businesses (3/3): major strengths 3 A strong international presence A presence on all the continents 44% of the 2011 sales of Bouygues Construction and Colas generated on international markets An ability to seize opportunities on growth markets In 2011, 26% of sa
Slide 56: Outlook for Bouygues Telecom in 2012
Outlook for Bouygues Telecom in 2012 The fall in the contribution from the mobile activity speeded up in Q2 2012 and will continue to dent sales and EBITDA The fall in marketing costs is not able to sufficiently offset this impact 2012 targets Sales: €5,180m (including consolidation of Darty
Slide 57: Outlook for Bouygues Telecom: adjustment plan (1/2)
Outlook for Bouygues Telecom: adjustment plan (1/2) Target of €300m cost savings in 2013 confirmed, to be obtained via a reduction in the marketing and operating costs of the mobile activity An adjustment plan has been in progress since February 2012 Organisation: a redeployment of the mobile
Slide 58: Outlook for Bouygues Telecom: adjustment plan (2/2)
Outlook for Bouygues Telecom: adjustment plan (2/2) The change in the cost structure shows the initial positive impacts of the measures taken since the beginning of 2012 H1 2012 versus H1 2011 change €m Mobile Fixed Marketing operating broadband costs costs operating costs -67 -27 +34 €94m of cost
Slide 59: 2012 sales target
2012 sales target 2012 target In In In € million 2011 Change March May August Bouygues Construction 9,802 10,000 10,100 10,200 +4% Bouygues Immobilier 2,465 2,450 2,450 2,450 = Colas 12,412 12,500 12,700 12,700 +2% TF1 2,620 2,620 2,620 2,620 = Bouygues Telecom 5,741 5,140 5,140 5,180 -10% Holding c
Slide 60: Conclusion
Conclusion The Group faces deep-seated changes in the mobile telephony market: a plan is in progress at Bouygues Telecom to transform and adjust the organisation, offers and cost structure TF1 is speeding up its adjustment by continuing to cut costs and by launching a review of its processes and
Slide 61: Calendar
Calendar 14 November 2012 Nine-month 2012 sales and earnings 5.45pm 61
Slide 62: N oO
N oO