Bouygues SA · EURONEXT:EN
Bouygues SA — Q1 2013 Earnings Presentation
51 slides from Bouygues SA's earnings presentation, May 14, 2013
Slide 1: First quarter 2013 results presentation
First quarter 2013 results presentation 14 May 2013 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
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: Highlights and key figures
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OBJECTIVES APPENDIX 3
Slide 4: Highlights of Q1 2013
Highlights of Q1 2013 The Bouygues group delivered a good commercial performance in Q1 2013 in a challenging economic and competitive environment... ...and stepped up its adaptation plans Like every year, Q1 operating results are not indicative of the Group’s yearly performance 4
Slide 5: Highlights of Q1 2013: commercial performance (1/3)
Highlights of Q1 2013: commercial performance (1/3) Order book at the construction businesses Good start of the year for the construction €m Bouygues Construction Bouygues Immobilier businesses Colas €27.8bn +3% €27.0bn Order book at end-March 2013: €27.8bn, up 3% €23.9bn 7,531 +4% 7,254 Stron
Slide 6: Highlights of Q1 2013: commercial performance (2/3)
Highlights of Q1 2013: commercial performance (2/3) Improved audience ratings1 at TF1 Individuals aged ≥ 4 Women aged < 50(2) In % Var. vs. Q1 Var. vs. Q1 TF1 TMC NT1 HD1 2012 2012 TF1 Group 23.5 3.5 2.2 0.4 29.6 +1.1 pts 25.6 3.8 3.0 0.6 33.0 +0.7 pts France Television 28.4 -1.5 pts 18.3 -2.4 pts
Slide 7: Highlights of Q1 2013: commercial performance (3/3)
Highlights of Q1 2013: commercial performance (3/3) Q1 2013 net adds Good commercial resilience for Bouygues Telecom Mobile subscribers Stable mobile customer base and growing plan customer +20k Plan subscribers base despite Bouygues Telecom’s higher prices versus +190k Orange and SFR during t
Slide 8: Highlights of Q1 2013: stepping up adaptation plans
Highlights of Q1 2013: stepping up adaptation plans Colas The new organization for the roads activity in France is being implemented according to plan TF1 Phase II of the optimisation plan aimed at generating recurring savings of €85m in 2014 is being accelerated Additional cost cutting me
Slide 9: Group key figures
Group key figures € million Q1 2012 Q1 2013 Change Sales 6,985 6,698 -4%1 Current operating income 82 (76) -€158m Net income attributable to the Group 35 (42) -€77m (1) Down 5% like-for-like and at constant exchange rates Like every year, Q1 operating results are not indicative of the Group’s year
Slide 10: Group financial position
Group financial position End-March End-March End-Dec. € million Change Change 2012 2013 2012 Shareholders' equity 9,689 9,927 +€238m 10,078 -€151m Net debt 5,324 5,007 -€317m 4,172 +€835m Net gearing 55% 50% -5 pts 41% +9 pts Tight control of net debt versus end-March 2012 As usual, Q1 net debt
Slide 11: Change in net cash position (1/2)
Change in net cash position (1/2) Net cash at Net cash at €m 31/12/2012 31/03/2013 (3 862) (3 872) (4 172) (4,172) (4 172) (4 212) (4 286) (5 007) (5,007) Acquisitions/ Issue & buyback Disposals1 of shares Operation -40 -74 -721 Q1 2012 (3,862) -7 -772 -683(2) (5,324) (1) Including scope effects and
Slide 12: Change in net cash position (2/2)
Change in net cash position (2/2) Breakdown of operation Net capital Net cash flow1 expenditure +185 -297(2) Change in the operating €m WCR3 & other -303 -609 -721 Q1 2012 +323 -239(4) -856 -772 (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Excluding capitalised interest
Slide 13: Contribution of business areas to Group net capital expenditure
Contribution of business areas to Group net capital expenditure € million Q1 2012 Q1 2013 Change Bouygues Construction 35 24 -€11m Bouygues Immobilier 2 2 = Colas 53 56 +€3m TF1 5 6 +€1m Bouygues Telecom 145(1) 209(2) +€64m Holding company and other (1) 0(2) +€1m Total excluding frequencies 239 297(
Slide 14: Business areas
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OBJECTIVES APPENDIX 14
Slide 15: Construction businesses
Construction businesses C ESensee CONSTRUCTION: Bouygues Inmobilier = <u> 15
Slide 16: Bouygues Construction: Q1 2013 overview
BOUYGUES CONSTRUCTION: Q1 2013 overview Order intake (€m)1 Good level of order intake International 3,689(2) Similar level of order intake as previous years excluding France 823 2,800 2,813 2,787 the Paris Law Courts contract signed for €823m in Q1 2012 1,530 1,594 1,628 1,675 Strong order boo
Slide 17: Bouygues Immobilier: Q1 2013 overview
BOUYGUES IMMOBILIER: Q1 2013 overview Q1 2013 commercial activity once again highlights Bouygues Reservations (€m)1 Immobilier's expertise in green property developments Commercial property Rehabilitation contract for a 41,420 m2 building for AG2R La Mondiale Residential property 437 +7% 409 R
Slide 18: Colas: Q1 2013 overview
COLAS: Q1 2013 overview Solid order book at €7.5bn, up 4%, with a good dynamic in Order book (€m) French order intakes International and French overseas territories Mainland France Q1 2013 does not change the 2013 expected outlook +4% The French market is expected to be close to the 2012 level
Slide 19: Construction businesses: Q1 2013 operating results
CONSTRUCTION BUSINESSES: Q1 2013 operating results Current operating income (€ million) Q1 2012 Q1 2013 Change Construction businesses (72) (79) -€7m Q1 2013 operating results o/w Bouygues Construction 79 85 +€6m o/w Bouygues Immobilier 35 39 +€4m Sales contribution o/w Colas (186) (203) -€17m €5bn
Slide 20: 20
20
Slide 21: TF1: Q1 2013 overview
TF1: Q1 2013 overview Q1 sales reflect the tough economic and competitive environment Group advertising revenues down 12% vs. Q1 2012 Q1 2013 key figures TF1 group audience share 1 Operating income impacted by 29.6% The decrease in advertising revenues A tough basis of comparison: Q1 2012
Slide 22: Bouygues Telecom
Bowaues eg)
Slide 23: Bouygues Telecom: market overview in Q1 2013
BOUYGUES TELECOM: market overview in Q1 2013 Two major developments in the mobile market at the beginning of 2013 Sharp price cuts in plans with services have been carried out by competitors The "SoWo1" segment continues to show substantial growth and is now split into three sub-segments (€0 t
Slide 24: Bouygues Telecom: marketing initiatives
BOUYGUES TELECOM: marketing initiatives In a challenging L environment, Bouygues Telecom keeps on adapting its offerings Introduction of a new B&YOU plan • €3.99/month for intensive users of SMS/MMS with 2 hours of calls • B&YOU is now present in the 3 sub-segments of the SoWo market Launch of new S
Slide 25: Bouygues Telecom: Q1 2013 overview
BOUYGUES TELECOM: Q1 2013 overview Good commercial resilience in an extremely challenging Q1 2013 key figures environment Mobile subscriber base Growth in contract net adds thanks to good B&YOU dynamic 11,271,000 Net plan subscriber adds of 190,000 B&YOU subscriber base B&YOU: 13% of the t
Slide 26: Bouygues Telecom: results of the 2012 transformation plan
BOUYGUES TELECOM: results of the 2012 transformation plan Cumulative €238m of cost savings generated in the mobile activity through Q1 13 Between Q1 11 and Q1 13, costs in the mobile activity are €109m lower thanks to the transformation plan Of which €87m cost savings were generated in Q1 13
Slide 27: Bouygues Telecom: 2013 outlook
BOUYGUES TELECOM: 2013 outlook The measures taken in 2012 will secure €400m of savings in the mobile business in 2013 instead of the €300m initially planned The additional actions decided at the beginning of 2013 in order to continue transforming Bouygues Telecom’s business model are in progress
Slide 28: Financial statements
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OBJECTIVES APPENDIX 28
Slide 29: Condensed consolidated income statement (1/2)
Condensed consolidated income statement (1/2) € million Q1 2012 Q1 2013 Change Sales 6,985 6,698 -4% Current operating income 82 (76) nm Other operating income and expenses 0 0 nm Operating income 82 (76) nm Cost of net debt (79) (79) = o/w financial income 13 11 -15% o/w financial expenses (92) (90
Slide 30: Condensed consolidated income statement (2/2)
Condensed consolidated income statement (2/2) € million Q1 2012 Q1 2013 Change Income tax expense (5) 52 nm Share of profits and losses from associates 62 64 +3% Net income 59 (47) nm Net income attr. to non-controlling interests1 (24) 5 nm Net income attributable to the Group 35 (42) nm (1) Formerl
Slide 31: Objectives
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OBJECTIVES APPENDIX 31
Slide 32: 2013 outlook
2013 outlook 2013 sales target In In Change € million 2012 February May 2013/2012 Bouygues Construction 10,640 10,700 10,750 +1% Bouygues Immobilier 2,396 2,500 2,500 +4% Colas 13,036 13,200 13,200 +1% TF1 2,621 2,540 2,500 -5% Bouygues Telecom 5,226 4,850 4,850 -7% Holding company and other 123 120
Slide 33: Appendix
HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS OBJECTIVES APPENDIX 33
Slide 34: Bouygues Construction: key figures
ANNEX BOUYGUES CONSTRUCTION: key figures Order book at end-March 2013 Order intake (€m)1 International For execution in Y 3,689(2) -24% France For execution in Y+1 €m For execution from Y+2 to Y+5 Long-term order book (beyond Y+5) +4% 2,800 2,813 823 2,787 YoY €17.1bn €17.3bn (1) Definition: contrac
Slide 35: Bouygues Immobilier: key figures
ANNEX BOUYGUES IMMOBILIER: key figures Reservations1 Order book 870 3,005 Commercial property 2,957 2,890 -4% 223 YoY Titre de l'axe +7% 636 Residential property 389 600 646 409 437 201 €m 353 116 131 41 647 2,616 2,357 2,244 435 293 306 312 End-March End-December End-March Q1 12 Q1 13 Q2 12 Q3 12 Q
Slide 36: Colas: key figures
ANNEX COLAS: key figures Order book (€m) International and French overseas territories Mainland France +4% 7,856 2013 7,531 € million Q1 2012 Q1 2013 Change 7,254 target 7,006 6,704 Sales 2,209 2,109 -5%1 13,200 -4% o/w France 1,440 1,372 -5% 3,537 3,835 3,676 3,298 o/w international 769 737 -4% 3,2
Slide 37: TF1: key figures
ANNEX TF1: key figures TF1 group audience share1 29.6% 28.5% 0.4 2.1 2.2 A 1.1 pts increase in audience share for the TF1 group in 3.5 3.5 HD1 Q1 2013 NT1 A 0.6 pts increase in audience share for the TF1 channel 22.9 23.5 TMC TF1 (1) Individuals aged 4 and over – Source Médiamétrie Q1 2012 Q1 20
Slide 38: Bouygues Telecom: mobile business performance
ANNEX BOUYGUES TELECOM: mobile business performance ‘000 Trend in plan subscriber base1 285 Growth in plan subscribers 190 188 Net plan subscriber adds of 190,000 in Q1 2013 55 Q1 12 Q1 13 Q2 12 Q3 12 Q4 12 -210 B&YOU subscriber base 1,413 '000 1,078 Good momentum at B&YOU 452 625 13% of mob
Slide 39: Bouygues Telecom: fixed broadband business performance
ANNEX BOUYGUES TELECOM: fixed broadband business performance Net growth of fixed broadband business2 Continued momentum at the fixed activity 359(3) ‘000 Net Bbox subscriber adds of 68,000 in Q1 2013 excluding Darty Telecom Total fixed broadband subscriber base of 1.9 million at end-Q1 2013 88
Slide 40: Bouygues Telecom: key figures
ANNEX BOUYGUES TELECOM: key figures € million Q1 2012 Q1 2013 Change 2013 target Sales 1,366 1,148 -16%(1) 4,850 Sales from network 1,220 1,063 -13% EBITDA 296 212 -€84m EBITDA/sales from network 24.3% 19.9% -4.4 pts Current operating profit 107 28 -€79m Operating profit 107 28 -€79m Net profit attr
Slide 41: Bouygues Telecom: key indicators
ANNEX BOUYGUES TELECOM: key indicators Plan Prepaid Total subscriber base Q4 2012 Q1 2013 Q4 2012 Q1 2013 Q4 2012 Q1 2013 Subscribers SIM cards (‘000) 9,428 9,618 1,823 1,653 11,251 11,271 SIM cards (% mix) 83.8% 85.3% 16.2% 14.7% Fixed broadband subscriber base1 (‘000) 1,846 1,891 Unit data – mobil
Slide 42: Bouygues Telecom: mobile termination rates
ANNEX 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 At 1 € cents/unit for SMS July July January July January July Feb July July 2010 2011 2012 2012 2013 2013 2010 2011 2012 Rates to Bouygues 3
Slide 43: Sales by business area
ANNEX Sales by business area € million Q1 2012 Q1 2013 Change Bouygues Construction 2,380 2,451 +3% Bouygues Immobilier 472 526 +11% Colas 2,209 2,109 -5% Sub-total of the sales generated by the construction businesses1 5,000 4,994 = TF1 629 566 -10% Bouygues Telecom 1,366 1,148 -16% Holding company
Slide 44: Contribution of business areas to Group EBITDA
ANNEX Contribution of business areas to Group EBITDA € million Q1 2012 Q1 2013 Change Bouygues Construction 130 110 -€20m Bouygues Immobilier 24 34 +€10m Colas (115) (154) -€39m TF1 80 (9) -€89m Bouygues Telecom 296 212 -€84m Holding company and other (12) (11) +€1m TOTAL 403 182 -€221m EBITDA = cur
Slide 45: Contribution of business areas to Group current operating profit
ANNEX Contribution of business areas to Group current operating profit € million Q1 2012 Q1 2013 Change Bouygues Construction 79 85 +€6m Bouygues Immobilier 35 39 +€4m Colas (186) (203) -€17m TF1 56 (16) -€72m Bouygues Telecom 107 28 -€79m Holding company and other (9) (9) = TOTAL 82 (76) -€158m 45
Slide 46: Contribution of business areas to Group net profit
ANNEX Contribution of business areas to Group net profit Attributable to the Group € million Q1 2012 Q1 2013 Change Bouygues Construction 52 60 +€8m Bouygues Immobilier 22 20 -€2m Colas (123) (126) -€3m TF1 15 (3) -€18m Bouygues Telecom 59 15 -€44m Alstom 58 58 = Holding company and other (48) (66
Slide 47: Contribution of business areas to Group free cash flow
ANNEX Contribution of business areas to Group free cash flow € million Q1 2012 Q1 2013 Change Bouygues Construction 72 91 +€19m Bouygues Immobilier 20 22 +€2m Colas (105) (140) -€35m Sub-total of the free cash flow of the construction activities (13) (27) -€14m TF1 47 4 -€43m Bouygues Telecom 87(1)
Slide 48: Net cash by business area
ANNEX Net cash by business area End-March End-March € million Change 2012 2013 Bouygues Construction 2,842 3,215 +€373m Bouygues Immobilier 372 292 -€80m Colas (531) (763) -€232m TF1 36 249 +€213m Bouygues Telecom (1,326) (802) +€524m Holding company and other (6,717) (7,198) -€481m TOTAL (5,324) (5
Slide 49: Financing
ANNEX Financing Available cash: €8.7 billion 10,000 9,000 Debt repayment schedule at end-March 2013 8,000 Undrawn 7,000 MLT credit facilities 6,000 €5.2bn 5,000 4,000 3,000 Cash 2,000 €3.5bn 1 351 994 872 667 970 994 696 1,000 794 589 22 512 20 0 0 36 0 21 0 0 49
Slide 50: Calendar
ANNEX Calendar 28 August 2013 First-half 2013 sales and earnings 7am 28 August 2013 First-half 2013 results presentation 11am 13 November 2013 Nine-month 2013 sales and earnings 5.45pm All times are Central European Times 50
Slide 51: Building the future is our greatest adventure
51 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 51