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Bouygues SA — Debt Investor Presentation (October 2004)

62 slides from Bouygues SA's debt investor presentation, October 2004

  1. Slide 1: Bond investors presentation

    Bond investors presentation October 2004 1

  2. Slide 2: The Bouygues Group, Business areas, Outlook and strategy, Financial structure, Appendices

    „ THE BOUYGUES GROUP „ BUSINESS AREAS „ OUTLOOK AND STRATEGY „ FINANCIAL STRUCTURE „ APPENDICES 2

  3. Slide 3: Bouygues: a solid financial profile

    BOUYGUES: a solid financial profile „ A solid financial structure with little debt „ Limited exposure to risk: 9 Mostly non-cyclical businesses 9 Low exposure to foreign exchange and interest rate risks 9 90% of sales and profit generated in developed countries „ Increased generation of free cash fl

  4. Slide 4: Bouygues: four business sectors

    BOUYGUES: four business sectors Roadworks Building/Civil Works Property 95.6% 100% 100% CONSTRUCTION Disposal in progress TELECOMS MEDIA UTILITIES 83 % 41.3% 100% A diversified industrial group 4

  5. Slide 5: Bouygues: key figures on 5 years

    BOUYGUES: key figures on 5 years (in million euros) 2,415 Sales EBITDA 2,260 x 2.5 22,247 21,822 20,473 1,680 19,060 + 38% 1,474 15,857 1,312 (+18%) 10,904 (+7%) 974 1999 2000 2001 2002 2003 H1 1999 2000 2001 2002 2003 H1 2004 2004 Operating income 666 Net earnings Non recurring 1, 238 items 1,058 x

  6. Slide 6: Bouygues: a solid financial structure

    BOUYGUES: a solid financial structure 1st half Million euros 2003 2003 2004 Net debt * 4,193 3,322 2,786 Net debt / Shareholders’ equity * 68% 53% 45% Cash flow 878 993 2,073 Net operating investment 374 422 930 * End of period Standard & Poor’s credit rating maintained: A- with stable outlook 6

  7. Slide 7: Business areas

    „ THE BOUYGUES GROUP „ BUSINESS AREAS „ OUTLOOK AND STRATEGY „ FINANCIAL STRUCTURE „ APPENDICES 7

  8. Slide 8: Bouygues Construction (B/CW)

    Group sales BOUYGUES CONSTRUCTION (B/CW) 22% „ Building and civil works: 9 Design 9 Construction Group EBIT 9 Operation 3% „ A low capital-intensive activity generating positive cash flow „ Strong rise in earnings during H1 2004 „ 2004 sales target €5,300m + 6% of which France €3,100m + 5% of which

  9. Slide 9: Colas

    Group sales COLAS 34% Group EBIT „ Roadworks (70% of sales) 21% 9 Maintenance and renovation 9 Construction „ Production of materials and other activities (30% of sales) „ A mostly non-cyclical business with high margins „ 2004 sales target €7,950m + 7% of which France €4,880m + 9% of which Internat

  10. Slide 10: Bouygues Immobilier

    Group sales BOUYGUES IMMOBILIER 6% Group EBIT „ Property development: 6,5% 9 Housing 9 Corporate and commercial property „ No speculative exposure „ 2004 sales target €1,250m + 2% of which housing €824m + 16% of which corporate/commercial €426m - 18% A leading private property developer in France 10

  11. Slide 11: Saur

    Group sales SAUR 11% „ Water supply and wastewater treatment (75% of sales) Group EBIT „ Environmental services: waste collection and processing 7% (10% of sales) „ Power distribution and generation abroad (15% of sales) „ Regular cash-flows from long-term contracts „ 2004 sales target €2,405m + 2%*

  12. Slide 12: Saur: invitation to tender by Bouygues

    SAUR: invitation to tender by Bouygues „ A process involving several stages 23 July 2004 Announcement of invitation to submit offers to buy some or all of the stake in Saur Mid-september 2004 Non-bidding offers received Appointment of 6 short-listed bidders End 2004/start 2005 Final decision should

  13. Slide 13: TF1

    Group sales TF1 13% „ Leading channel in France 9 35,4% of audience share Group EBIT 9 54,2% of the advertising market share 26% „ Diversification activities: 9 Thematic channels: Eurosport, LCI … 9 TPS: Télévision par Satellite – digital TV (66% owned) 9 Audiovisual merchandise „ A solid financial

  14. Slide 14: Bouygues Telecom

    Group sales BOUYGUES TELECOM 15% „ Operator of France’s third mobile phone Group EBIT network, launched in 1996 37% „ UMTS license obtained in 2002 „ i-mode launched in 2002: 800 000 customers today (20% of Contracts customer base) „ Substantial contribution to group earnings „ 2004 targets: total s

  15. Slide 15: Bouygues Telecom: stock ownership structure

    BOUYGUES TELECOM: stock ownership structure 83.0% 6.5% 10.5% Bouygues has raised its stake in Bouygues Telecom from 34% to 83% in 5 years 15

  16. Slide 16: Bouygues Telecom: key figures

    BOUYGUES TELECOM: key figures 1st half Million euros Change 2003 2003 2004 Sales 1,558 (1) 1,765 + 13% 3,283 Net sales from network 1,441 (2) 1,603 + 11% 2,995 of which data (%) 13.7% 17.5% + 3.8 pts 13.8% EBITDA 464 575 + 24% 1,001 EBITDA / net sales from 32.2% 35.9% + 3.7 pts 33.4% network Operati

  17. Slide 17: Bouygues Telecom: financial data

    BOUYGUES TELECOM: financial data 30 June Million euros Change 2003 2003 2004 Shareholders’ equity* 2,265 2,315 + 2% 2,320 incl. participating loans* 811 604 - 26% 767 Net debt* 1,401 1,064 - 24% 1,031 Net debt/shareholders’ equity* 62% 46% - 16 pts 44% Cash flow 415 553 + 33% 896 Net operating inves

  18. Slide 18: Outlook and strategy

    „ THE BOUYGUES GROUP „ BUSINESS AREAS „ OUTLOOK AND STRATEGY „ FINANCIAL STRUCTURE „ APPENDICES 18

  19. Slide 19: Bouygues Group outlook: favourable prospects

    BOUYGUES GROUP OUTLOOK: favourable prospects „ Rise in sales 9 Further strong growth of the Telecom and Media divisions 9 High level of activity maintained in the Construction divisions „ Steady growth of group earnings „ Continuation of the group’s free cash flow increase „ Sustainable leadership p

  20. Slide 20: Bouygues: our ambitions

    BOUYGUES: our ambitions „ Extend in each of our businesses our scope of activity and our geographical reach „ Keep a sound financial structure „ Maintain the effective control on the strategies and cash-flows of our subsidiaries 9 Bouygues Telecom 83% 9 TF1 41% 9 Colas 96% 9 Saur, Bouygues Construct

  21. Slide 21: Financial structure

    „ THE BOUYGUES GROUP „ BUSINESS AREAS „ OUTLOOK AND STRATEGY „ FINANCIAL STRUCTURE „ APPENDICES 21

  22. Slide 22: Bouygues: condensed consolidated balance sheet

    BOUYGUES: condensed consolidated balance sheet 30 June 31 Dec. Million euros 2003 2004 2003 Shareholders’ equity 6,151 6,217 6,192 Long & medium term provisions 1,832 1,895 1,896 Financial liabilities 4,675 3,756 5,160 Long-term capital 12,658 11,868 13,248 Fixed assets 12,225 11,882 11,983 Working

  23. Slide 23: Bouygues: cash position in the first half 2004

    BOUYGUES: cash position in the first half 2004 In €m „ Net cash at 31 December 2003: (2,786) 9 Shares buy-back for cancellation - 471 9 Conversion of OCEANE bonds + 418 9 Repayment of participating loans - 31 (minority interests) 9 Other acquisitions/disposals - 17 9 Operation and other - 435 (1) „

  24. Slide 24: Bouygues: net debt by business area

    BOUYGUES: net debt by business area 30 June 31 Dec. Million euros Change 2003 2004 2003 Bouygues Telecom 1,401 1,064 - 337 1,031 TF1 508 602 + 94 426 Saur 489 98 - 400 (75) Bouygues Construction (891) (1,319) - 428 (1,346) Colas 369 152 - 217 (255) Bouygues Immobilier (59) (86) - 27 (88) Holding and

  25. Slide 25: Bouygues: financing policy

    BOUYGUES: financing policy Available cash: €5.65bn 6000 Additionnal Cash : €0.75bn 5000 4000 Undrawn MLT Credit Debt repayment schedule 3000 lines : €3.2bn 2000 1000 Available Cash : €1.7bn 0 Liquidity T4 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 + 2005 Evenly spread debt repayment schedule

  26. Slide 26: Bouygues SA: condensed balance-sheet

    BOUYGUES SA: condensed balance-sheet 30 June 31 Dec. Million euros 2003 2004 2003 Shareholders’ equity 4,917 5,024 4,901 Long & medium-term provisions 228 182 177 Financial liabilities 2,491 2,598 2,978 Long-term capital 7,636 7,804 8,056 Long-term investments 6,896 7,721 7,823 Other assets 9 1 1 Wo

  27. Slide 27: Bouygues SA: financing policy

    BOUYGUES SA: financing policy Available cash: €2.55bn 3000 2500 Additionnal Cash : 2000 €0.75bn Undrawn Debt repayment schedule 1500 MLT Credit lines : €0.5bn 1000 Available Cash : €1.3bn 500 0 Liquidity T4 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 + 2005 Estimates at 30 September 2004 27

  28. Slide 28: Bouygues: Standard and Poor's credit rating

    BOUYGUES: Standard and Poor’s credit rating 2001 2002 2003 2004 (e) EBITDA / Financial charges 15.6 10.0 10.7 > 10 (S & P’s ratio: > 10 times) Cash flow / Net debt 101% 54% 74% > 45% (S & P’s ratio: > 45%) Net debt/shareholder’s equity 20% 50% 45% ~ 90% (S & P’s ratio: < 100%) Strong determination t

  29. Slide 29: Appendices

    „ THE BOUYGUES GROUP „ BUSINESS AREAS „ OUTLOOK AND STRATEGY „ FINANCIAL STRUCTURE „ APPENDICES 29

  30. Slide 30: Bouygues: sales targets for 2004

    BOUYGUES: sales targets for 2004 2004 Change Million euros 2003 Objective in % Bouygues Telecom 3,271 3,590 + 10% TF1 2,727 2,790 + 6% (1) Saur 2,448 2,400 + 2% (2) Bouygues Construction 4,742 5,050 + 6% Colas 7,387 7,900 + 7% Bouygues Immobilier 1,229 1,250 + 2% Holding and other 18 20 n.s. TOTAL 2

  31. Slide 31: Bouygues Construction: key figures

    BOUYGUES CONSTRUCTION (B/CW): key figures 9 From design and construction to operation: a global operator 1st half H1 04 Million euros H1 03 2003 2004 Sales 2,628 + 11% 5,002 of which France 1,577 + 16% 2,946 of which International 1,051 + 3% 2,056 Earnings before tax and 81 + €65m 70 exceptionals Ne

  32. Slide 32: Bouygues Construction: order book at 30 June 2004

    BOUYGUES CONSTRUCTION: order book at 30 June 2004 At 30 June 2004 54% €bn Total 6 5.3 5.0 4% 4.8 4.9 5 4.4 4.6 8% 4 3.6 3.6 12% 3 3.3 3.3 3.5 8% 14% 2.7 2 France of which France and Western Europe Western Europe (excluding France) 1 Eastern Europe 0 Asia 1999 2000 2001 2002 2003 30/06/2004 Africa La

  33. Slide 33: Bouygues Construction: strategy and outlook

    BOUYGUES CONSTRUCTION : strategy and outlook „ Continue to improve performance 9 2003: return to net profit 9 2004: strong rise in earnings 9 Beyond: good outlook „ Develop high-growth markets 9 Public-Private Partnerships 9 UK, Central Europe 9 Electricity, facilities management „ Sales target for

  34. Slide 34: Colas: key figures

    COLAS: key figures 9 Roadworks: maintenance, renovation, construction 9 Production of agregates, asphalt mixes, emulsions 9 Quarries 1st half H1 04 Million euros 2003 2004 H1 03 Sales 3 436 + 9% 7,426 of which France 2 255 + 12% 4,465 of which International 1 181 + 3% 2,961 Operating income 22 + €11

  35. Slide 35: Colas: strengths

    COLAS: strenghts „ A world leader in road construction and maintenance „ A strategic asset: material reserves 9 516 quarries in over 15 countries 9 Over 2 billion tonnes of aggregate supplies, i.e. 25 years of reserves „ Geographically balanced activity abroad Uninterrupted growth since Colas became

  36. Slide 36: Colas: strategy and outlook

    COLAS: strategy and outlook „ First roads contract under PFI in UK: renovation and maintenance of the entire road network in Portsmouth over 25 years for £400m (€600m) „ Pursue external and internal growth „ Sales target for 2004: €7,950m + 7% 9 France €4,880m + 9% 9 International €3,070m + 4% 36

  37. Slide 37: Bouygues Immobilier: key figures

    BOUYGUES IMMOBILIER: key figures 9 Property development: • housing • corporate and commercial property 9 No speculative exposure 1st half H1 04 Million euros 2003 2004 H1 03 Sales 582 - 2% 1,230 Housing 401 + 24% 711 Corporate/Commercial property 181 - 33% 519 Operating income 63 + €12m 80 Net earni

  38. Slide 38: Bouygues Immobilier: strategy and outlook

    BOUYGUES IMMOBILIER: strategy and outlook „ Reduce vulnerability to economic cycle 9 Increase housing share in total sales 9 Keep operating costs under control 9 Manage cash rigorously „ Favourable market trends 9 Housing: maintaining a high level of business volume and prices 9 Corporate/Commercial

  39. Slide 39: Saur: key figures

    SAUR: key figures 9 Water supply and wastewater treatment 9Waste collection and processing, power distribution and generation 1st half H1 04 Million euros 2003 (2) 2004 H1 03(1) Sales 1,165 + 2% 2,450 of which France 843 = 1,720 of which International 322 + 7% 730 Operating income 26 + €17m 87 Net e

  40. Slide 40: Saur: strategy and outlook

    SAUR: strategy and outlook „ In France 9 Ensure steady growth in water segment 9 Pursue development of environmental services „ Abroad 9 Improve existing portfolio of activities „ Enhance productivity „ Sales target for 2004: €2,405m + 2%* 9 France €1,800m + 5% 9 International €605m - 3%* * Excludin

  41. Slide 41: TF1: key figures

    TF1: key figures 1st half H1 04 Million euros 2003 2004 H1 03 Sales 1,481 + 5% (1) 2,743 of which advertising 890 + 7% 1,544 of which diversification 591 + 3% (2) 1,199 Operating income 293 + €60m 334 Net earnings 161 + €23m 192 Net debt at end of period 603 + €84m 443 (1) + 9% using same accounting

  42. Slide 42: TF1: strategy and outlook

    TF1: strategy and outlook „ Favourable prospects in advertising market: 9 Market recovery 9 Real growth potential 9 Confirmed leadership „ Strategic objectives: 9 Continue to maintain the TF1 channel’s leading position 9 Develop the other channels 9 Make TPS a major player in broadcasting in the lon

  43. Slide 43: Bouygues Telecom: Customer Mix

    BOUYGUES TELECOM : Customer Mix Prepaid 34% Contract 66% 9 Total customer base : 6.9 Million as of June 30, 2004 A commercial policy focused on top-end customers 43

  44. Slide 44: Bouygues Telecom: commercial performance

    BOUYGUES TELECOM: commercial performance „ Contract 1st half (mainland France) 2003 2004 Customer base (in thousands) 3,807 4,454 Market share of net additions 26.6% 24.6% Market share on installed base 17.3% 17.9% ARPU (€/month) 52 50 SAC (€/customer) 222 241 Monthly churn 1.8% 1.4% Voice usage (mi

  45. Slide 45: Bouygues Telecom: i-mode

    BOUYGUES TELECOM: i-mode „ 800,000 customers: 9 20% of contract customers 9 Most successful launch outside Japan „ i-mode customers generate a monthly ARPU of €60 to €70 „ An attractive range of handsets „ A steady use since launch „ i-mode Alliance : 9 10 members in Europe and Asia 9 Fruitful partn

  46. Slide 46: Bouygues Telecom: technological choices (1/2)

    BOUYGUES TELECOM: technological choices (1/2) „ EDGE 9 a cheaper and more efficient technology 9 roll-out under way „ UMTS 9 gradual roll-out beginning in 2006 9 combining EDGE and UMTS (R5) is the best strategy to optimise investment 9 the two technologies will co-exist and will be complementary Re

  47. Slide 47: Bouygues Telecom: technological choices (2/2)

    BOUYGUES TELECOM: technological choices (2/2) Speed >1Mb/s UMTS R5 The difference x 3-4 (HSDPA) between the UMTS maximum speed of R99 250Kb/s x 5-6 EDGE EDGE and UMTS GPRS R99 is slight 40Kb/s 2000 2001 2002 2003 2004 2005 2006 2007 A gradual Number of customers In thousands development 500 - Launch

  48. Slide 48: Bouygues Telecom: market share

    BOUYGUES TELECOM: market share Contract customers (2) Mainland + Total sales (1) Caribbean 1st half 1st half 1st half 1st half 2003 2004 2003 2004 Bouygues Telecom 17.1% 17.7% 18.4% 18.8% Orange France 48.7% 47.6% 44.3% 43.9% SFR 34.2% 34.7% 37.3% 37.3% (1) Source: ART, French telecoms regulator (2)

  49. Slide 49: Bouygues Group: consolidated income statement

    BOUYGUES GROUP: consolidated income statement 1st half Change Million euros 2003 2003 2004 in % Sales 10,191 10,904 + 7% 21,822 Operating income 524 721 + 38% 1,238 Earnings before tax and 402 623 + 55% 1,019 exceptional items Exceptional items 12 21 + 75% -14 Income tax (178) (258) + 45% (380) Net

  50. Slide 50: Bouygues: contribution of business areas to EBITDA

    BOUYGUES: contribution of business areas to EBITDA 1st half Change Million euros 2003 2003 2004 in % Bouygues Telecom 471 569 + 21% 1,006 TF1 293 354 + 21% 455 Saur 88 70 + 43%* 190 Bouygues Construction 79 116 + 47% 180 Colas 130 146 + 12% 505 Bouygues Immobilier 58 65 + 12% 85 Holding and other (3

  51. Slide 51: Bouygues: contribution of business areas to operating income

    BOUYGUES: contribution of business areas to operating income 1st half Change Million euros 2003 2003 2004 in % Bouygues Telecom 200 271 + 36% 460 TF1 232 293 + 26% 332 Saur 34 26 x 3* 88 Bouygues Construction 5 61 x 12 37 Colas 11 22 x2 262 Bouygues Immobilier 52 63 + 21% 80 Holding and other (10) (

  52. Slide 52: Bouygues: contribution of business areas to net earnings

    BOUYGUES: contribution of business areas to net earnings 1st half Change Million euros 2003 2003 2004 in €m Bouygues Telecom 70 131 + 61 146 TF1 57 67 + 10 79 Saur 10 9 + 13 (1) 20 (2) Bouygues Construction (5) 63 + 68 23 Colas 15 32 + 17 192 Bouygues Immobilier 26 32 +6 44 Holding and other (43) (8

  53. Slide 53: Bouygues: contribution of business areas to cash flow

    BOUYGUES: contribution of business areas to cash flow 1st half Change Million euros 2003 2003 2004 in% Bouygues Telecom 399 541 + 36% 866 TF1 202 216 + 7% 318 Saur 88 62 + 3%* 177 Bouygues Construction 67 67 = 206 Colas 105 121 + 15% 453 Bouygues Immobilier 34 37 + 9% 55 Holding and other (17) (51)

  54. Slide 54: New IFRS standards: status report

    NEW IFRS STANDARDS: status report „ Opening balance sheet at 1 January 2004 9 Drawn up according to published standards 9 Currently being audited by the Statutory Auditors 9 Utilities management services: French standards still prevail „ Financial statements as of 31 March and 30 June 2004 9 In prog

  55. Slide 55: IFRS: condensed 2004 opening balance sheet

    IFRS: condensed 2004 opening balance sheet „ Provisional balance sheet (in €m) French ASSETS IFRS Change standards Tangible assets 4,532 4,888 + 356 Intangible assets 6,409 1,177 - 5,232 Goodwill 264 5,273 + 5,009 Other non-current assets 778 1,506 + 728 Current financial assets 2,616 2,593 - 23 Oth

  56. Slide 56: IFRS: condensed 2004 opening balance sheet

    IFRS: condensed 2004 opening balance sheet „ Provisional balance sheet (in €m) French LIABILITIES IFRS Change standards Shareholders’ equity, Group share 5,131 5,062 - 69 Minority interests 1,061 898 - 163 Total shareholders’ equity 6,192 5,960 - 232 Non-current provisions 1,896 1,489 - 407 Non-curr

  57. Slide 57: IFRS: impact on cash (1/2)

    IFRS: impact on cash (1/2) „ Provisional balance sheet (in €m) French IFRS Change standards Non-current financial liabilities / (4,229) / Current financial liabilities / (1,032) / Total financial liabilities (5,160) (5,261) + 101 Cash and cash equivalents 2,374 2,250 - 124 Net hedging instruments /

  58. Slide 58: IFRS: impact on cash (2/2)

    IFRS: impact on cash (2/2) „ Analysis of decrease in net cash In €m 9 Reclassification of other shareholders’ equity - 167 9 Finance leases - 116 9 Restatement of securitization operations - 19 9 Net hedging instruments +8 9 Other impacts - 10 TOTAL - 304 A limited impact 58

  59. Slide 59: Bouygues: share ownership structure

    BOUYGUES: share ownership structure At 30 June 2004 Capital Voting rights SCDM (1) 14.0% 21.9% Tennessee (groupe Pinault) 2.8% 3.0% Simetra (groupe Pinault) 5.1% 4.0% Total shareholder agreement 21.9% 28.9% Bouygues group employees 12.1% 17.6% Mme F. Bouygues 1.6% 2.5% Banks (2) 2.5% 2.5% Groupe Arn

  60. Slide 60: Exceptional payout (1/2)

    EXCEPTIONAL PAYOUT (1/2): a decision consistent with the Group’s culture „ Payout of 5 euros per share on 7 January 2005 * 9 since 1999, Bouygues has called upon its shareholders to contribute 2 billion euros to finance its development, mainly in telecoms and media 9 today, these investments are pay

  61. Slide 61: Exceptional payout (2/2): financing

    EXCEPTIONAL PAYOUT (2/2): financing „ All the business areas’ investment programmes will continue as planned „ As from 2006, Bouygues will have the same debt-to-equity ratios and investment capacity as today „ The payout (1.7 billion euros) will be financed by cash surplus and credit facilities „ Bo

  62. Slide 62: Contact

    CONTACT Anthony MELLOR, Director Investor Relations Tel : +33 1 30 60 22 77 e-mail : [email protected] Corporate information : www.bouygues.com 62

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