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Bouygues SA — Bouygues Telecom — Morgan Stanley Conference 2005
28 slides from Bouygues SA's conference presentation, Nov 17, 2005
Slide 1: Bouygues Telecom Presentation - Morgan Stanley Conference
Morgan Stanley Conference 17 November 2005 BOUYGUES TELECOM PRESENTATION Philippe MONTAGNER Chairman & C.E.O
Slide 2: Bouygues Telecom Presentation
MORGAN STANLEY CONFERENCE – 17th November 2005 BOUYGUES TELECOM PRESENTATION Philippe MONTAGNER Chairman & C.E.O
Slide 3: Forward-looking statements disclaimer
This document contains projections and forecasts. They express objectives based on the current assessments and estimates of the Group’s general management which are subject to many factors and uncertainties. Consequently, actual figures could differ significantly from projected figures. The followin
Slide 4: Group: three business areas
BOUYGUES GROUP: three business areas Roadworks Building/Civil Works Property (1984) (1952) (1956) 96.2% 100% 100% CONSTRUCTION (1994) (1987) TELECOMS MEDIA 83 % 42.9% A diversified industrial group All figures as of 14 september 2005
Slide 5: Group: key operating figures
BOUYGUES GROUP: key operating figures IFRS 1st half Million euros Change 2004 2004 2005 Sales 10,192 (1) 11,268 + 11% 21,242 Operating profit 696 853 (2) + 23% 1,559 Net profit att. to the Group 276 384 (2) + 39% 909 Net profit att. to the Group 256 384 (2) + 50% 700 excluding Saur (1) Comparable
Slide 6: Group: financial structure
BOUYGUES GROUP: financial structure 1st half Million euros Change 2004 2005 2004 Net debt (1) 3,556 3,980 (2) + 12% 1,875 Debt-to-equity ratio (1) 60% 79% + 19 pts 38% Cash flow (3) 937 1,099 + 17% 2,052 Net operating investment 395 609 + 54% 1,047 Free cash flow 542 490 - 10% 1,005 (1) End of perio
Slide 7: Group: 9 months 2005 sales
BOUYGUES GROUP: 9 months 2005 sales (IFRS) 9m 2004 9m 2005 Million euros Change IFRS IFRS Bouygues Construction 3,853 4,204 + 9% Bouygues Immobilier 890 1,125 + 26% Colas 5,880 6,891 + 17% TF1 2,055 2,042 - 1% Bouygues Telecom 2,704 3,356 + 24% (1) Saur - - - Holding and other 226 222 ns TOTAL 15,60
Slide 8: Bouygues Telecom today
BOUYGUES TELECOM TODAY Commercial 3 million 5 million 7.5 million i-mode launch customers customers customers launch A recognized operator 1996 1999 2000 2002 2004 Share ownership structure Agreement with BNP Paribas Group for the purchase of their 6.5% stake at the latest in 2007 83.0% 6.5% 10.5%
Slide 9: Bouygues Telecom: market share at 30 September 2005
BOUYGUES TELECOM: market share at 30 September 2005 (Metropolitan France and French overseas territories) Customer market share (1) Value market share (2) 17.0% Bouygues Telecom 19.7% Orange 47.0% 42.4% 35.7% SFR 37.9% (1) Source: ARCEP (2) Source: operators MVNOs : 0.2% Sales including mobile-t
Slide 10: Bouygues Telecom: key figures (IFRS)
BOUYGUES TELECOM: key figures (IFRS) 1st half Million euros Change 2004 (1) 2004 (1) 2005 Sales 2,066 2,193 + 6% 4,292 Net sales from network 1,912 2,077 + 9% 3,957 of which mobile-to-mobile billing 305 (2) 324 + 6% 626 (2) percentage of data 14.7% 16.4% + 1.7 pts 14.9% EBITDA 586 678 + 16% 1,157 EB
Slide 11: Bouygues Telecom: financial structure (IFRS)
BOUYGUES TELECOM: financial structure (IFRS) 1st half Full year Million euros Change 2004 2005 2004 Net debt (1) 1,700 1,003 - 41% 1,197 of which shareholder loans 604 0 - 614 of which bank debt 860 971 + 13% 545 Debt-to-equity ratio 106% 50% - 56 pts 67% Cash flow (2) 444 524 + 18% 900 Net operatin
Slide 12: Bouygues Telecom: free cash flow
BOUYGUES TELECOM: free cash flow Gross operating investments Cash flow (before cost of net financial debt and before tax) €m Free cash flow 1200 1076 1 133 1000 896 530 800 738 741 411 600 273 * 603 - 426 400 - 1,056 485 468 312 200 20 0 2000 2001 2002 2003 2004 The virtuous scissors effect: sharp i
Slide 13: Bouygues Telecom: commercial performance
BOUYGUES TELECOM: commercial performance Total Contract Prepaid customer base (Metropolitan France) 1st half 1st half 1st half 1st half 1st half 1st half 2004 2005 2004 2005 2004 2005 SIM cards (in thousands) 4,454 5,104 2,334 2,425 6,788 7,529 ARPU (€/month) (1) 60 57 ns ns 46 44 SAC (€/customer) 2
Slide 14: Bouygues Telecom: broadband strategy
BOUYGUES TELECOM: broadband strategy Capex must be driven by customer needs, not by technologies The EDGE technology... 9 is sufficient to provide all data applications, including TV 9 ensures a consistent quality of service all over France 9 is 10 times cheaper than UMTS No key application re
Slide 15: EDGE and UMTS: evolving technologies (1/2)
EDGE AND UMTS: evolving technologies (1/2) EDGE and UMTS currently offer similar capabilities Actual download speed Actual upload speed (network to mobile) (mobile to network) Kbs Kbs 500 500 400 400 300 360 300 200 200 200 100 100 100 64 00 0 0 0
Slide 16: EDGE and UMTS: evolving technologies (2/2)
EDGE AND UMTS: evolving technologies (2/2) EDGE will continue to evolve in medium term (version R4 → version R7) Developments in EDGE will help improve performance Actual download speed 1,500 Actual upload speed Kbs (network to mobile) (mobile to network) Kbs 500 440 500 400 400 300 300 200 360
Slide 17: Bouygues Telecom: launch of broadband services
BOUYGUES TELECOM : launch of broadband services May 2005: Broadband services for corporates October 2005: Broadband services for the mass market with i-mode 9 With a national coverage (90 % of the French population) 9 At an attractive price (€9.9 per month for an unlimited usage of e-mail and in
Slide 18: A wider universe of brands thanks to broadband i-mode
BOUYGUES TELECOM: a wider universe of brands thanks to broadband i-mode Communication Music Video Services Games TV Î Overall, 350 sites contribute to the portal’s quality
Slide 19: Broadband i-mode handsets
BOUYGUES TELECOM: broadband i-mode handsets Nec N500i €69 Soon Samsung S500i Dreamphone G500i €129 MP3 Camera TV / Video Méga pixels
Slide 20: Why host an MVNO?
WHY HOST AN MVNO ? MVNO experiences in Europe: no convincing success Our MVNO approach: Universal Mobile since August 2004 9 A commercial success: 267,000 customers today, mostly teenagers 9 A strong brand, enabling Bouygues Telecom to market additional products 9 A way to address the regulator’
Slide 21: Bouygues Telecom: outlook
BOUYGUES TELECOM: outlook (million euros – IFRS) 9 months 2005 sales (published) 9m 2004 9m 2004 * 9m 2005 Change Net sales from network 2,480 2,943 3,172 +8% Total sales 2,725 3,180 3,365 +6% Full-year 2005 sales target 2004 2004 * 2005 Change Net sales from network 3,331 3,957 4,260 + 8% Total
Slide 22: Appendix
a APPENDIX
Slide 23: Agreement with BNP Paribas
BOUYGUES TELECOM: agreement with BNP Paribas BNP Paribas wished to make its 6.5% stake in Bouygues Telecom liquid. Bouygues has granted BNP Paribas an option to sell 6.5% of Bouygues Telecom, exercisable from September 2005 to July 2007 at a price of €477 million to €495 million (€475 million pl
Slide 24: TV on mobile
TV on mobile UNICAST BROADCAST Î Network saturation Î Unlimited number of mobile viewers Î Limited number of mobile viewers (point -> multi-points) Î Very costly for the user We believe in the success of mobile TV, but with a network adapted to mass broadcast
Slide 25: Universal Mobile
BOUYGUES TELECOM: Universal Mobile Successful locked contracts for young people 9 Over 250,000 customers since the launch of the service in August 2004 9 Over 95% of customers satisfied or very satisfied An open and independent service 9 The “after-class extra talk time” is valid for calls to al
Slide 26: The i-mode Alliance in the world
The i-mode Alliance in the world Japan Singapore UK Ireland Belgium Russia Israël France Germany Australia Taiwan Greece Italy Spain Netherlands The i-mode open model is becoming a standard
Slide 27: Bouygues: financial calendar
BOUYGUES: financial calendar 14 December 2005 9-month earnings 9 February 2006 Full-year 2005 sales 1 March 2006 Full-year 2005 earnings 27 April 2006 Annual Meeting of Shareholders 11 May 2006 First-quarter 2006 sales
Slide 28: Contact
CONTACT Anthony MELLOR, Director Investor Relations Tel : +33 1 30 60 22 77 e-mail : [email protected] Louis IGONET, Investor Relations Tel : +33 1 30 60 38 04 e-mail : [email protected] Corporate information : www.bouygues.com www.bouyguestelecom.com BOUYGUES – Challenger – 1 avenue