Bouygues Sa · EURONEXT:EN
Bouygues Sa — Q1 2018 Earnings Presentation
48 slides from Bouygues Sa's earnings presentation, May 17, 2018
Slide 1: Q1 2018 Results Presentation
Q1 2018 RESULTS PRESENTATION 17 MAY 2018
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: Substantial elements impacting 2018 results
SUBSTANTIAL ELEMENTS IMPACTING 2018 RESULTS APPLICATION OF IFRS 9 (FINANCIAL INSTRUMENTS) AND IFRS 15 (REVENUE RECOGNITION) FROM 1 JANUARY 2018 Slight impact over the full year at the Group level Material impact of IFRS15 for: > Bouygues Immobilier on backlog, sales, current operating profit a
Slide 4: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 4
Slide 5: Q1 2018 highlights
Q1 2018 HIGHLIGHTS As every year, Q1 results are not indicative of the Group’s full-year performance Good commercial momentum and growth in earnings at Bouygues Telecom Backlog at a record level for the construction businesses and activity impacted by adverse weather conditions in Europe Ful
Slide 6: Group key figures
GROUP KEY FIGURES Q1 2017 €m Q1 2018 Change restated Improved profitability at Bouygues Telecom Sales 6,837 6,826 0%a Like every year, Q1 results for the construction o/w France 4,591 4,669 +2% businesses are not indicative of full-year performance o/w international 2,246 2,157 -4% > Usual seaso
Slide 7: Financial structure
FINANCIAL STRUCTURE CHANGE IN NET DEBT BETWEEN END-DECEMBER 2017 AND END-MARCH 2018 REFLECTS MAINLY: End-Dec End- End-March The usual seasonal impacts €m 2017 March Change 2017 Change restated 2018 restated Shareholders’ The acquisition of 100% of the shares equity 10,416 10,343 -€73m 9,653 +€
Slide 8: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 8
Slide 9: Construction businesses
CONSTRUCTION BUSINESSES ASPHALT PLANT - DUBAI Bordeaux Arena - France Entre deux Rives – Neuilly - France Asphalt plant - Dubai 9
Slide 10: Backlog at a record level
Bouygues Construction Colas Bouygues Immobilier BACKLOG AT A RECORD LEVEL Total backloga (€bn) 31.7 +4%b 30.5 2.5 +5% 7.8 8.4 2.7 +8% €31.7BN BACKLOG AT END-MARCH 2018 20.2 +2% 20.6 UP 7% YEAR-ON-YEAR AT CONSTANT EXCHANGE RATES End-March 2017 End-March 2018 Backloga in France (€bn) CONSTRUCTION
Slide 11: Strong visibility in France for construction
STRONG VISIBILITY IN FRANCE FOR CONSTRUCTION MORE THAN 10 YEARS VISIBILITY ON GRAND PARIS PROJECT (TRANSPORTATION INFRASTRUCTURE AND PROPERTY DEVELOPMENT) Around €35bna to be spent on Grand Paris Express and Eole extension > €8.1bn awarded at end-Q1 2018b of which €1.3bn to Bouygues (already inc
Slide 12: Bouygues, a leader in sustainable mixed-use neighborhoods
BOUYGUES, A LEADER IN SUSTAINABLE MIXED-USE NEIGHBORHOODS MORE THAN 30 ECO-NEIGHBORHOODS DELIVERED OR UNDER DEVELOPMENT OF WHICH TWO MAJOR PROJECTS WON IN Q1 2018 CHARENTON-BERCY DISTRICT (SOUTHERN PARIS) > 360,000 square m of housing, offices, retail, public facilities and entertainment > A 180
Slide 13: Expansion in countries where the Group has a long-standing presence
EXPANSION IN COUNTRIES WHERE THE GROUP HAS A LONG-STANDING PRESENCE CONTINUING DEVELOPMENT IN COUNTRIES OFFERING STRONG GROWTH PROSPECTS AND A LOW RISK PROFILE CANADA: CLOSING OF THE ACQUISITION BY COLAS OF THE MILLER MCASPHALT GROUP AT END-FEBRUARY Miller McAsphalt group: a major player in ro
Slide 14: Acquisition of Alpiq ES, a major European player in energy & services
ACQUISITION OF ALPIQ ES, A MAJOR EUROPEAN PLAYER IN ENERGY & SERVICES Building technologies & Transportation Industrial engineering Building Transmission & Catenaries Power generating Industrials services Nuclear technologies Distribution facilities decommissioning Core business Core business Expand
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Slide 16: Good commercial momentum in mobile
GOOD COMMERCIAL MOMENTUM IN MOBILE 14.8 MILLION CUSTOMERS AT END-MARCH 2018 Mobile postpaid customer base excluding MtoMa (millions of customers) +453,000 customers in Q1 2018 10.4 9.9 OF WHICH 10.4 MILLION MOBILE POSTPAID CUSTOMERS 9.3 EXCLUDING MtoMa 8.7 +132,000 customers in Q1 2018 8.5
Slide 17: Acceleration of FTTH recruitment in a competitive market
ACCELERATION OF FTTHa RECRUITMENT IN A COMPETITIVE MARKET Fixed customer base (‘000 of customers) and share of FTTHa customers 329,000 FTTH CUSTOMERS AT END-MARCH 2018 Total % FTTH 3.5 +64,000 customers in Q1 2018 3.2 2.9 Best quarter since the launch of fiber offers 9.4% 2.5 2.1 3.5 MILLION
Slide 18: 4.7M FTTH premises marketed at end-March 2018
4.7M FTTHa PREMISES MARKETED AT END-MARCH 2018 IN 85 DEPARTMENTS In million Total Bouygues Telecom Bouygues Telecom premises on at end-March 2018 at end-2019 the marketb Very Dense 0.4 In negotiation Area 6.4 6 Securedc o/w 2.3 marketedd 6.4 Secured o/w 4.5 marketed (+0.1 vs dec.17) 4.2 In negotiati
Slide 19: 5.9% growth in Bouygues Telecom sales in Q1 2018
5.9% GROWTH YEAR-ON-YEAR IN BOUYGUES TELECOM SALES IN Q1 2018 SALES FROM SERVICESa UP 4.9% AND SALES BILLED TO THE CUSTOMERa UP 5.5% YEAR-ON-YEAR Growth in mobile and fixed subscriber bases €m Q1 2017 Q1 2018 Change Sales 1,210 1,281 +5.9% Positive impact on Q1 2018 of end-May 2017 o/w sales f
Slide 20: Robust earnings at Bouygues Telecom
ROBUST EARNINGS AT BOUYGUES TELECOM Q1 2018 EBITDA MARGIN OF 23.9% €m Q1 2017 Q1 2018 Change restated (+1.6 POINTS YEAR-ON-YEAR) Sales 1,210 1,281 +6%a o/w sales from services 983 1,031 +5% EBITDA up €28m (+13%) EBITDA 219 247 +€28m 56% INCREASE IN CURRENT OPERATING PROFIT EBITDA/sales from se
Slide 21: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 21
Slide 22: Condensed consolidated income statement (1/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (1/2) Q1 2017 €m Q1 2018 Change restated Sales 6,837 6,826 0%a Current operating profit (75) (111) -€36m Other operating income and expenses (17)b 55c +€72m Operating profit (92) (56) +€36m Cost of net debt (57) (54) +€3m o/w financial income 5 10 +€5m o/w fin
Slide 23: Condensed consolidated income statement (2/2)
CONDENSED CONSOLIDATED INCOME STATEMENT (2/2) Q1 2017 €m Q1 2018 Change restated Income tax 46 54 +€8m Share of net profit of joint ventures and associates 75 83 +€8m o/w Alstoma 45 73 +€28m Net profit from continuing operations (30) 25 +€55m Net profit attributable to non-controlling interests (11)
Slide 24: Change in net debt position in Q1 2018 (1/2)
CHANGE IN NET DEBT POSITION IN Q1 2018 (1/2) In €m Restated net debt at Net debt at 31/03/2018 31/12/2017 (1,917) -25 0 -627 -1,276 (3,845) Acquisitions / Otherb 700 MHz frequencies Operations Disposalsa Q1 2017 (1,866) +94(c) +48(d) 0 -1,580 (3,304) Restated (a) Including the acquisition by Colas o
Slide 25: Change in net debt position in Q1 2018 (2/2)
CHANGE IN NET DEBT POSITION IN Q1 2018 (2/2) In €m Breakdown of Operations Net cash flowa Net capex Change in operating WCR and otherb +218 -368 -1,126 -1 ,276 Q1 2017 Restated +232 -389 -1,423 -1,580 (a) Net cash flow = cash flow - cost of net debt - income tax expense (b) Operating WCR: WCR relate
Slide 26: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 26
Slide 27: Confirmation of 2018 outlook
CONFIRMATION OF 2018 OUTLOOK THE GROUP EXPECTS TO GRADUALLY IMPROVE ITS PROFITABILITY IN 2018 With an upbeat environment in France and abroad, the construction businesses will continue to be selective and focus on profitability rather than volumes > The current operating profita and current oper
Slide 28: Contents
CONTENTS HIGHLIGHTS AND KEY FIGURES REVIEW OF OPERATIONS FINANCIAL STATEMENTS OUTLOOK ANNEX 28
Slide 29: Key figures at Bouygues Construction
ANNEX KEY FIGURES AT BOUYGUES CONSTRUCTION France Backlog by region (end-March 2018) Order intakea (€bn) International 6% 26% 3% 2.9 2.5 -14% 1.3 1.2 -3% 1.6 -22% 21% 44% 1.3 Q1 2017 Q1 2018 France Asia and Middle East Europe (excl. France) Americas Africa (a) Contracts are booked as order intakes a
Slide 30: Key figures at Bouygues Immobilier
ANNEX KEY FIGURES AT BOUYGUES IMMOBILIER Commercial property Reservationsa (€m) Residential property -15% 556 471 15 -60% 6 -14% 541 465 Q1 2017 Q1 2018 (a) Net of cancellations (residential property) and firm orders which cannot be cancelled (commercial Les Jardins d’Arcadie – Nancy – France proper
Slide 31: Key figures at Colas
ANNEX KEY FIGURES AT COLAS Q1 2017 Backlog (€bn) €m Q1 2018 Change +8%a restated 8.4 Sales 1,928 1,898 -2%a 7.8 o/w France (incl. French overseas 1,180 1,166 -1% territories) 3.6 +8% o/w international 748 732 -2% 3.3 Current operating profit (264) (302) -€38m Operating profit (268)B (302) -€34m (a)
Slide 32: Alpiq ES, a strategic interest for Bouygues Construction
ANNEX ALPIQ ES, A STRATEGIC INTEREST FOR BOUYGUES CONSTRUCTION Alpiq ES Main countries of operations CREATION OF A KEY EUROPEAN PLAYER Bouygues Construction IN ENERGY & SERVICES Bouygues Construction & Alpiq ES Combined revenues of €3.9bna Strong geographical complementarity Opportunity for
Slide 33: Alpiq ES, a strategic interest for Colas
ANNEX ALPIQ ES, A STRATEGIC INTEREST FOR COLAS Alpiq ES Main countries of operations Colas STRENGTHENING COLAS LEADERSHIP Colas & Alpiq ES AS A LEADING PLAYER IN THE RAIL SECTOR Reinforcement of Colas expertise in the field of catenaries, a high value-added business Access to Swiss and Italian
Slide 34: Key indicators at Bouygues Telecom
ANNEX KEY INDICATORS AT BOUYGUES TELECOM Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 restated restated restated restated Mobile customer base 13,359 13,641 13,935 14,387 14,840 Mobile customer base excl. MtoM 10,773 10,819 10,874 10,998 11,097 o/w plana 9,947 10,057 10,167 10,317 10,449 Mobile ABPUb 19.
Slide 35: Condensed consolidated balance sheet
ANNEX CONDENSED CONSOLIDATED BALANCE SHEET End-Dec 2017 €m End-March 2018 Change restated Non-current assets 17,568 18,332 +€764m Current assets 18,697 17,318 -€1,379m Held-for-sale assets and operations 38 13 -€25m TOTAL ASSETS 36,303 35,663 -€640m Shareholders' equity 10,416 10,343 -€73m Non-curre
Slide 36: Sales by sector of activity
ANNEX SALES BY SECTOR OF ACTIVITY Lfl & Q1 2017 €m Q1 2018 Change constant restated fxa Construction businessesb 5,141 5,058 -2% +2% o/w Bouygues Construction 2,768 2,739 -1% +4% o/w Bouygues Immobilier 514 487 -5% -3% o/w Colas 1,928 1,898 -2% +1% TF1 503 499 -1% -2% Bouygues Telecom 1,210 1,281 +6
Slide 37: Contribution to Group EBITDA by sector of activity
ANNEX CONTRIBUTION TO GROUP EBITDAa BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (105) (200) -€95m o/w Bouygues Construction 94 51 -€43m o/w Bouygues Immobilier 13 3 -€10m o/w Colas (212) (254) -€42m TF1 74 101 +€27m Bouygues Telecom 219 247 +€28m Holding company
Slide 38: Contribution to Group current operating profit by sector of activity
ANNEX CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (134) (192) -€58m o/w Bouygues Construction 99 81 -€18m o/w Bouygues Immobilier 31 29 -€2m o/w Colas (264) (302) -€38m TF1 36 38 +€2m Bouygues Telecom 32 50 +€18m Hol
Slide 39: Contribution to Group operating profit by sector of activity
ANNEX CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (138) (192) -€54m o/w Bouygues Construction 99 81 -€18m o/w Bouygues Immobilier 31 29 -€2m o/w Colas (268)a (302) -€34m TF1 30a 32b +€2m Bouygues Telecom 25a 111b +€86m Holdi
Slide 40: Contribution to net profit attributable to the Group by sector
ANNEX CONTRIBUTION TO NET PROFIT ATT. TO THE GROUP BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (94) (131) -€37m o/w Bouygues Construction 79 63 -€16m o/w Bouygues Immobilier 16 17 +€1m o/w Colas (189) (211) -€22m TF1 12 11 -€1m Bouygues Telecom 14 68 +€54m Alstom
Slide 41: Contribution to Group net cash flow by sector of activity
ANNEX CONTRIBUTION TO GROUP NET CASH FLOWa BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (15) (56) -€41m o/w Bouygues Construction 125 89 -€36m o/w Bouygues Immobilier 13 13 €0m o/w Colas (153) (158) -€5m TF1 72 87 +€15m Bouygues Telecom 189 192 +€3m Holding compan
Slide 42: Contribution to net capital expenditure by sector of activity
ANNEX CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses 72 101 +€29m o/w Bouygues Construction 18 20 +€2m o/w Bouygues Immobilier 6 2 -€4m o/w Colas 48 79 +€31m TF1 52 40 -€12m Bouygues Telecom 263 224 -€39m Holding company and o
Slide 43: Contribution to Group free cash flow by sector of activity
ANNEX CONTRIBUTION TO GROUP FREE CASH FLOWa BY SECTOR OF ACTIVITY Q1 2017 €m Q1 2018 Change restated Construction businesses (87) (157) -€70m o/w Bouygues Construction 107 69 -€38m o/w Bouygues Immobilier 7 11 +€4m o/w Colas (201) (237) -€36m TF1 20 47 +€27m Bouygues Telecom (74) (32) +€42m Holding
Slide 44: Net debt / net surplus cash
ANNEX NET DEBT (-)/NET SURPLUS CASH (+) End-Dec End-March €m 2017 Change 2018 restated Bouygues Construction 3,409 2,992 -€417m Bouygues Immobilier (86) (307) -€221m Colas 433 (732) -€1,165m TF1 257 280 +€23m Bouygues Telecom (976) (1,076) -€100m Holding company and other (4,954) (5,002) -€48m TOTAL
Slide 45: Debt maturity schedule at end-March 2018
ANNEX DEBT MATURITY SCHEDULE AT END-MARCH 2018 Available cash: €8.9bn €9bn €8bn €7bn Undrawn MLT €6bn facilities €6.1bn €5bn €4bn €3bn €2bn Cash €1bn €2.8bn €0bn Liquidity 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 45
Slide 46: Impact of IFRS 15 on 2017 financial statements
ANNEX IMPACT OF IFRS 15 ON 2017 FINANCIAL STATEMENTS o/w Bouygues o/w Bouygues €m 2017 reported o/w TF1 2017 restated Immobilier Telecom Sales 32,904 +37 -26 +7 32,923 Current operating profit 1,420 -5 -9 0 1,406 Operating profit 1,533 -5 -9 0 1,519 Income tax (303) 0 +4 0 (299) Share of net profit
Slide 47: Impact of IFRS 15 on 2017 interim results
ANNEX IMPACT OF IFRS 15 ON 2017 INTERIM RESULTS Par trimestre €m Q1 Q2 Q3 Q4 Reported Impact Restated Reported Impact Restated Reported Impact Restated Reported Impact Restated Sales 6,847 -10 6,837 8,315 -44 8,271 8,666 -22 8,644 9,076 +95 9,171 o/w Bouygues Telecom 1,222 -12 1,210 1,212 -16 1,196
Slide 48: Glossary for Bouygues Telecom
ANNEX GLOSSARY FOR BOUYGUES TELECOM SALES FROM SERVICES 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 charges (v