Bouygues Group presentation May 2014

Transcription

1 1 Bouygues Group presentation May 2014 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1 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. Forward-looking statements are statements that are not historical facts, and include, without limitation: financial projections, forecasts and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance of the Group. Although the Group s senior management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and undue reliance should not be placed on such statements. The following factors, among others set out in the Group s Registration Document (Document de Référence) under the section headed Risk factors (Facteurs de risques), could cause actual results to differ materially from projections: unfavourable developments affecting the French and international telecommunications, audiovisual, construction and property markets; the costs of complying with environmental, health and safety regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets; the impact of current or future public regulations; exchange rate risks and other risks related to international activities; risks arising from current or future litigation. Except to the extent required by applicable law, the Bouygues group makes no undertaking to update or revise the projections, forecasts and other forward-looking statements contained in this presentation. May

2 THE BOUYGUES GROUP Slide 4 THE BUSINESSES Slide 13 Q RESULTS Slide 33 GROUP OUTLOOK Slide 63 APPENDIX Slide 65 3 Profile A diversified industrial group 5 businesses with different cycles focusing on three sectors: construction, telecoms and media contribution 1 by business area Sales 2 at 33.1bn Current operating profit 2 at 1,319 m Free cash flow 2 at 818m (3) , Key figures 1 in 647m 4 net profit 128,067 employees Construction businesses TF1 Bouygues Telecom (1) figures restated for IFRS 11 (2) Including Holding contribution: 9m for sales; - 34m for current operating profit; and - 174m for the free cash flow (3) Free cash flow is calculated before changes in WCR. It excludes capitalised interest related to 4G frequencies for 33m at Group level (o/w 13m at Bouygues Telecom level and 20m at holding company level) (4) Before the write-down of Alstom for 1,404m 4 2

3 Key strengths A family company with a stable share ownership structure allowing long-term focus A strong and distinctive corporate culture A positioning on markets underpinned by solid demand A solid operational track record of delivering revenue and earnings growth A sound financial profile 5 A stable share ownership structure Capital Foreign shareholders 20.8% 36.6% Shareholder structure at 31 December SCDM Foreign shareholders Voting rights 27.6% 28.4% SCDM 17.8% Other French shareholders 24.8% Employees Other French shareholders 13.8% 30.2% Employees At 31 December : 319,264,996 shares and 459,117,988 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues Shareholders structure allowing long-term focus 6 3

4 A strong and distinctive corporate culture Construction is a good management school Project management skills and knowhow in complex projects Masan Bay bridge, South Korea Stade de France Bouygues Telecom 3G network Managers have experienced previous crises Strong mobility within the Group and of top managers Pragmatic Cautious Opportunistic Entrepreneurial 7 Long-term growth opportunities Growing long-term infrastructure needs in both developed and emerging countries Drivers: demographic growth, urbanization, saturated and aging infrastructures Estimated total cumulative world infrastructure requirements (additions and renewal) to 2030*: 53 trillion $ New opportunities arising from environmental concerns Sustainable construction: from the building to the neighborhood Alternative transport infrastructures (railways, canals ) Strengthening existing customer base and increasing addressable market in Telecom / Media Fixed broadband market, mobile data, B2B market QP District, Qatar *Source OECD - rail, road, telecoms, electricity transmission & distribution, water 8 4

5 A solid operational track record 2001 CAGR (1) Sales Operating profit Net profit bn 876m 344m +4% + 3 % + 5 % 33.1bn 1,319m 647m 3 DPS 0.36 X (1) figures restated for IFRS 11 (2) Attributable to the Group (3) Before the write-down of Alstom for 1,404m 9 A healthy financial profile All figures are at end December Debt under control Low gearing at 51% 1 Evenly spread repayment schedule No significant off-balance sheet commitment High level of liquidity Available Cash = 8.7bn Ability to control capex Capex-to-sales ratio 2 Sustainable cash-flow generation Free cash flow 2 = 0.8bn Average Free cash flow since 2005 at 1bn Cash remittance to the holding 6% 4% 2% 0% (1) Including impact of the write-down of Alstom (2) Capex and Free cash flow exclude capitalised interest related to 4G frequencies for 33m at Group level 10 5

6 Dividend per share Dividend yield 1 : 2.7% 2.2% 2.2% 2.5% 2.6% 5.3% 4.4% 5.0% 6.6% 7.1% 5.8% 1 Dividend yield based on closing price 11 THE BOUYGUES GROUP Slide 4 THE BUSINESSES Slide 13 Q FIGURES Slide 33 GROUP OUTLOOK Slide 63 APPENDIX Slide

7 Construction businesses 13 CONSTRUCTION BUSINESSES: profile A world leader: n 7 top international contractor according to ENR ranking 1 key figures Sales 2 : 26.1bn Buildings & civil works Real estate Roads Sales 4 by region Asia & Africa Middle East 6% 8% Americas 11% Europe (excl. France) 16% France 59% Operating profit 2 : 1,005m Free cash flow 2 : 819m Building & civil works Real estate Roads Building & civil works Real estate Roads (1) Companies are ranked according to construction revenue generated outside home country (2) figures restated for IFRS 11 (3) Total of the sales contributions (after eliminations within the construction businesses) (4) As published in (not restated for IFRS 11) 14 7

8 CONSTRUCTION BUSINESSES: profile Building & civil works Bouygues Construction is a world leading full service contractor in building & civil works, electrical contracting and maintenance A recognized expertise at every stage of a project from design to construction, operation, maintenance, and including financing arrangement Real estate Bouygues Immobilier is the leading property developer in France A pure player in real estate development with more than 50 years of experience, acting both in residential and commercial segments and predominantly in France Roads Colas is a world leader in road construction and maintenance Key competitive advantage thanks to vertical integration with a widespread industrial footprint (aggregates, emulsions, asphalt mix, bitumen...) 15 CONSTRUCTION BUSINESSES: strengths & opportunities The ability to provide innovative, high value-added solutions tailored to customers' requirements The development of specialty activities, which are sources of growth A strong and diversified international presence The focus on long-term sustainability and the ability to adapt The Baluarte bridge, Mexico 16 8

9 CONSTRUCTION BUSINESSES: high value-added solutions High-level technical know-how A solid track record valued by customers all around the world Ability to develop high value-added end-to-end offers 20 years of expertise in full service offering contracts More than 120 projects (PPP/PFIs 1 /concessions) over the period Comprehensive solutions including design, construction, maintenance and financing Sports Hub, Singapore, Competitive advantage in sustainable construction French Ministry of Defense, Balard, Increasing market demand, supported by regulation, for energy-efficient buildings Currently developing new offerings for green neighbourhood relying on the entire Bouygues Group s expertise Green office, Meudon 1 PPP: Public-Private Partnerships, PFI: Private Finance Initiative 17 CONSTRUCTION BUSINESSES: high value-added solutions Some examples in transport: major road construction projects L2 bypass PPP in Marseille, France New Coastal Road on Reunion Island, France The largest infrastructure project awarded in France in 30-year PPP Works valued at 340m for Bouygues Construction and Colas Completion: 2017 Construction of the longest off-shore viaduct in France (5.4 km) Contract worth 218m for Bouygues Construction ti Construction of four sections of an elevated dual three-lane road Contract worth 318m for Colas Completion:

10 CONSTRUCTION BUSINESSES: high value-added solutions Some examples in transport: airports Iqaluit International Airport, Canada Lyon-Saint Exupéry Airport, France Zagreb Airport, Croatia Financing, design and construction of a new terminal Works valued at 160m for Bouygues Construction and Colas Handover scheduled for end-2017 Design and construction of a new terminal Works valued at 142m Handover of the first phase in 2016 Passenger capacity: close to 10 million Financing, design and construction of a new terminal Works valued at 243m Handover scheduled for end-2016 Passenger capacity: 5 million 19 CONSTRUCTION BUSINESSES: development of specialty activities Strategy Expand the offering available to customers Develop synergies with existing business areas Penetrate new growth potential markets For example: urban transport, a growing market Increasingly strong demand in large and mid-sized towns and cities Recognised know-how 30 projects completed in France since 1985 International know-how: Cairo metro (Egypt), Rabat-Salé and Casablanca (Morocco), Geneva (Switzerland), Los Teques (Venezuela), Kuala Lumpur (Malaysia), etc. Rabat-Salé tramway, Morocco bn Order book at Colas Rail +14% Share of more than 1 year YoY Share of less than 1 year sales at Colas Rail up +19% ( 767m): Strong growth in the order book, which enjoys increasing maturity with several commercial successes : high-speed rail line in Morocco for 124m, RFR rapid transit rail network in Tunis for 86m, Santiago metro in Chile for 67m End-2010 End-2011 End-2012 End

11 CONSTRUCTION BUSINESSES: main international contracts won in Group share rounded up/down 50% of the order books at Bouygues Construction and Colas is to be executed in international markets Canada Iqaluit Airport ( 160m) Road maintenance ( 35m) US Private property development ( 200m) 1 Airport runway ( 20m) Cuba Luxury hotel complex ( 60m) Morocco Luxury residence ( 40m) Tangier-Kenitra high-speed rail line ( 125m) Tunisia Tunis rapid rail network ( 85m) Trinidad and Tobago National oncology centre ( 40m) Countries where Bouygues Construction and Colas generated sales in (1) Partial order intake in UK University campus in Hertfordshire ( 140m) Property complex in Lewisham ( 70m) Road maintenance in London ( 205m) Operations in 80 countries Chad Chile Road ( 40m) Santiago metro in Chile ( 70m) Switzerland Erlenmatt eco-neighbourhood in Basel ( 130m) Im Lenz eco-neighbourhood in Lenzburg ( 110m) Hungary M85 motorway ( 90m) Slovakia R2 motorway ( 80m) Croatia Zagreb Airport ( 240m) Hong Kong Subsea road tunnel ( 1.15bn) Macao Luxury hotel complex ( 360m) 1 Thailand Photovoltaic solar power plants ( 40m) Myanmar Residential complex ( 70m) Singapore Bangkok condominium tower ( 100m) Bishan condominium tower ( 100m) Turkmenistan Theatre and concert centre ( 340m) International university ( 90m) 21 CONSTRUCTION BUSINESSES: focus on long-term sustainability A safe and extensive order book providing good visibility on future activity A record order book of 27.5bn at end-december, up 3% year-on-year and up 22% since end-2010 An increase in the depth of the order book, giving time to adapt orders at Bouygues Construction and Colas to be executed beyond one year (Y+1) are up 7% y-o-y and represent 44% of the total A strong ability to adapt Cost structure mostly variable (attached to projects) Geographical flexibility of teams Management s proven responsiveness Focus on controlling operating and financial risks in order to ensure long-term performance Commercial selectivity (preference is given to margin) Strict control procedures and cautious guidelines 22,575 6,141 2,280 Order books ( m) Bouygues Construction Bouygues Immobilier Colas 24,806 6,472 3,051 14,154 15, % 26,808 27,530 6,704 7,088 2,957 2,610 17,147 17,832 End-2010 End-2011 End-2012 End- +3% +6% -12% +4% 22 11

12 CONSTRUCTION BUSINESSES: robust financial profile 1,185 A solid profitability 1 Operating profit ( m) and margin 5,1% 5,3% 5,0% 6,0% 4,6% 4,7% 4,2% 3,7% 3,9% 5,0% 3,7% 3,6% 4,0% 27% 2,7%2,8% 966 1,158 1,236 3,0% 783 1,079 1, , ,0% ,0% A high net cash position 1 ( m) 2,495 2,794 2,587 2,259 2,440 1,689 3,547 3,404 3,281 3,175 3,308 0,0% A recurring FCF generation 1 ( m) * *Excluding Axione disposal at Bouygues Construction for 163m (1) figures restated for IFRS

13 TF1: profile A strong media group The leading TV channel in France, TF1 Strong position on free-to-air market with 4 channels 12 other pay-tv channels including Eurosport (n 1 sport TV channel in Europe) Diversification activities: audiovisual rights and production, licensing key figures 2.5bn revenue sales breakdown 137m net profit 1 TF1 Group Other activities advertising Around 3,800 employees 68% 32% Leader in audience share A core channel offering a unique exposure for advertisers generating a premium to the leader Journalist Harry Roselmack A leadership in combined audience share (28.9% 2 for TF1, TMC, NT1 and HD1 at end-december ) representing an unrivalled television offer A unique position in Europe Channels and brands available on every media and every screens A true multimedia advertising agency (TV, radio, web, press) 1 Attributable to the group 2 Individuals > 4y - - Médiamétrie / Médiamat 25 TF1: targets Strengthen core free-to-air business Maintain the group s leading market position Develop close relationship with TV viewers thanks to strong positions in new media Keep innovating i to enhance the efficiency i of ad campaigns and increase monetization i Continue the development of TF1 s pay services and products Eurosport: a strong asset Partnership signed with Discovery Communication Foster the counter-cyclical advantage of diversification Develop different sales modes (B2B, B2C, ) Improve profitability Phase 2 of the cost-optimization plan launched in 2012: increase productivity and flexibility Review the Group s processes and organizations Pursue the rationalization of diversification businesses 26 13

14 27 BOUYGUES TELECOM: profile Major actor of the French telecom market for more than 17 years Mobile commercial launch in 1996, fixed broadband commercial launch in million mobile customers at end-december for a 15% market share 2.0 million fixed broadband customers at end-december for an 8% market share A network of more than 600 stores Tradition of innovation to deliver value for money to customers First call plans in the French market First unlimited bundles (Neo) First quadruple play offer (ideo) First SIM-only/Web-only offer for less than 25 (B&YOU) key figures 4.7bn revenue 13m net result 2 9,100 employees 28 1 SIM-only/web-only 2 Attributable to the group 14

15 BOUYGUES TELECOM: facing a challenging mobile market A challenging mobile market since 2012 Strong growth in SIM-only plans transforming the business model Sharp fall in pricing i Operators profitability squeezed significantly due to more and more customers switching to the new price plans combined with falls in market share Bouygues Telecom reacted quickly beginning of 2012 with two strategic priorities Transform the business model Reposition the offering in order to boost differentiation and return to growth 29 BOUYGUES TELECOM: technology and innovation A strong mobile network 15,000 sites deployed covering 99% of the French population in 2G and 96% in 3G 4G network open commercially on 1 October : 69% 1 of the population having access to 4G Network sharing agreement signed with SFR to significantly improve geographical coverage and network quality as well as generate cost savings Access to spectrum secured to support mobile data services in the future A capacity of 74 MHz of spectrum (28% of the total available) on 800, 900, 1,800, 2,100 and 2,600 MHz bands Fixed network 78% of the population covered in unbundled zones 50% of the population covered by Bouygues Telecom s own network with a target to add 1 million households by end 2014 More than 7 million households eligible for very-high-speed thanks to Numericable wholesale agreement 1 million Fibre home passed (FTTH) Target of 1.4 million by end 2014 (1) Data collected on 13th March

16 BOUYGUES TELECOM: opportunities Develop data use by capitalising on 4G 4G allows intensive data use making new uses possible Average GB consumption per month by Bouygues Telecom customers in 3G vs 4G Expand market share in the fixed broadband market Launch of a new B&YOU double-play offering la Box internet in November for 15.99/month Launch of a triple-play Internet - TV - Telephony home gateway in February 2014 for only a month Good positioning on the very high speed broadband market 18% market share (363,000 very high speed customers at end-december ) Seize opportunities in B2B markets : take advantage of the 13bn 2 corporate market opening up to competition Major existing corporate clients include BNP Paribas, Lafarge, Foncia etc. Fixed broadband sales from +31% network (m ) Sales from network excluding ideo discount 2 Estimate by Arcep and Bouygues Telecom THE BOUYGUES GROUP Slide 4 THE BUSINESSES Slide 13 Q RESULTS Slide 33 GROUP OUTLOOK Slide 63 APPENDIX Slide

17 Reminder: changes in accounting methods for 2014 As announced on 26 February 2014 reported figures have been restated for IFRS 11 At the Bouygues level, Eurosport International sales and EBIT will remain included in the TF1 results until the effective sale of the additional 31% to Discovery Communications. After the sale, TF1 s remaining interest will be accounted for using the equity method 33 HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS 34 17

18 Highlights of Q In keeping with, the Group further demonstrated its competitiveness and the benefits to customers of its innovation capabilities Good commercial activity in the construction businesses Continued traction of 4G, adopted by 13% of Bouygues Telecom s customers Successful launch of the new fixed offering: 100,000 new fixed customers in Q1 2014, number 1 in terms of net growth 1 in Q Like every year, first quarter results are not representative of full-year performance (1) Company estimate 35 Group key figures m Q1 restated Q Change Sales 6,645 6,841 +3% 1 Current operating profit/(loss) (77) (96) - 19m Operating profit/(loss) (77) 100 (2) + 177m Net profit/(loss) attributable to the Group (42) 285 (3) + 327m (1) Up 4% like-for-like and at constant exchange rates (2) Including non-current income of 196m related to Bouygues Telecom (3) Including a net capital gain of 240m on the sale of Colas stake in Cofiroute As every year, Q1 results are not indicative of the Group s full-year performance Operating profit factors in non-current income of 196m related to Bouygues Telecom Net income attributable to the Group includes a net capital gain of 240m on the sale of Cofiroute Excluding non-current items, Q net loss would be 56m, close to the Q1 level 36 18

19 Group financial position million End-Dec. restated End-March 2014 Change End-March restated Shareholders' equity Net debt 8,669 4,435 8,941 4, m + 290m 9,912 5,014 Net gearing 51% 53% +2 pts 51% The change in net debt between end-december and end-march 2014 includes The traditional seasonal impact coming from Colas 780m from the sale by Colas of its stake in Cofiroute A working capital increase which is not representative of the year 37 Change in net cash position (1/2) Restated net cash at 31/12/ m Net cash at 31/03/2014 (4,435) (4,725) Acquisitions/ Disposals 1-24 Operation -1,061 Sale of Cofiroute stake Other 15 (3) Q1 restated (4,176) (4) (5,014) (1) Including scope effects (2) Sale of Colas 16.67% stake in Cofiroute (3) Impact of reclassification of Eurosport International to held-for-sale operations (+ 12m) and exercise of stock options (+ 3m) (4) Issue and buyback of shares (- 74m) and capitalised interest related to 4G frequencies (- 11m) 38 19

20 Change in net cash position (2/2) Breakdown of operation m Net cash flow Net capital expenditure -279 Change in the operating WCR 2 & other -1,086-1,061 Q1 restated (3) (3) (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets (3) Excluding capitalised interest related to 4G frequencies for 11m 39 HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS 40 20

21 Construction businesses 41 Good commercial performance by the construction businesses Order books ( m) Q confirms commercial trends Bouygues Construction Bouygues Immobilier Colas Continued growth of the order books in the construction 27.0bn 27.8bn businesses: 28.8bn, up 4% vs end-march Strong international presence: 50% of the Bouygues Construction and Colas order books vs 45% at end-march 7,254 7,531 8,064 3,005 2,890 2,485 +4% 28.8bn 16,727 17,331 18,243 End March 2012 End March End March

22 Business activity at Bouygues Construction Strong level of order intake Q order intake: 3bn, up 7% vs Q1 thanks to the international business Record order book of 18.2bn at end-march 2014, up 5% vs end-march Strong visibility with 10.9bn of sales secured beyond 2014 France International 2,800 2,813 1,530 1,594 Order intake ( m) 1 3,689 2,787 2,451 1,675 2,984 1,497 +7% -11% Order book m For execution in Y For execution in Y+1 For execution from Y+2 to Y+5 Long-term order book (beyond Y+5) 17.3bn 17.8bn 18.2bn 2,595 2,742 2,644 2,582 3,219 6,203 5,052 5,063 +5% YoY 1,270 1,219 1,238 1,112 1, % Q Q Q Q1 Q (1) Definition: contracts are booked as order intakes at the date they take effect 8,887 7,102 7,317 End-March End-Dec End-March ANNEX Key figures at Bouygues Construction 2,800 2,813 Order intake ( m) 1 3,689 2,787 2,451 1,530 1,594 1,675 1,270 1,219 1,238 1,112 2,984 1,497 1,487 Q Q Q Q1 Q % -11% +34% France International (1) Definition: contracts are booked as order intakes at the date they take effect Order book For execution in Y For execution in Y+1 m For execution from Y+2 to Y+5 Long-term order book (beyond Y+5) +5% YoY 17.3bn 17.8bn 18.2bn 2,595 2,742 2,644 2,582 3,219 6,203 5,052 5,063 8,887 7,102 7,317 million Q1 restated Q Change Sales 2,449 2,596 +6% 3 o/w France o/w international 1,318 1,131 1,365 1,231 +4% +9% Current operating profit Current operating margin % % + 5m = Net profit att. to the Group m (3) Up 7% like-for-like and at constant exchange rates End-March End-Dec End-March 2014 At end-march 2014 Africa 6% Asia & Middle East 19% Europe (excl. France) 19% Americas 4% France 52% 44 22

23 Business activity at Bouygues Immobilier Residential reservations up 6% to 324m in a market that remains very difficult 70 unsold completed homes at end-march 2014, equivalent to two days of marketing Reservations ( m) 1 Commercial property Residential property In a sluggish commercial market, Bouygues Immobilier expects to sign a number of large projects in 2014 As usual, quarterly year-on-year comparison is not meaningful as reservation level depends on the timing of the signature of contracts % -69% +6% Hikari eco-neighbourhood project in Lyon, France Q Q1 Q (1) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale) 45 ANNEX Key figures at Bouygues Immobilier Reservations Commercial property Residential property m Order book 2,890 2,610 2, ,244 2,183 2,119 Q1 13 Q1 14 Q2 13 Q3 13 Q4 13 End-March End-December End-March 2014 (1) Definition: residential property reservations are reported net of cancellations. Commercial property reservations are firm orders which cannot be cancelled (notarised deeds of sale) million Q1 restated Q Change Sales % 2 o/w residential % o/w commercial % Current operating profit Current operating margin % % - 8m -1.6 pts Net profit att. to the Group = (2) Stable like-for-like and at constant exchange rates 46 23

24 Business activity at Colas Order book at a high level of 8.1bn, up 7% year-on-year As expected, French order book is down due to impact of local elections Order book for international and French overseas territories is strong and includes the new coastal road on Reunion Island Increase in the order book s length The activity to be executed beyond 2014 is up 35% (+ 781m) Order book to be executed in 2014 is down 5% at end-march 2014 Order book ( m) Mainland France International and French overseas territories 8,064 +7% 7,531 3,615-9% 3, % 4,449 3,537 New Coastal Road on Reunion Island, France End- March End- March 2014 All rights reserved Lavigne Chéron Architectes 47 ANNEX Key figures at Colas Order book ( m) 3,994 Mainland France 7,531 8,064 7,570 3,615 International and French overseas territories +7% million -9% 3,941 7,094 7,088 3,523 3, % 4,449 3,537 3,629 3,571 3,811 Sales o/w France o/w international Current operating profit/(loss) Net profit/(loss) attr. to the Group Q1 restated 2,059 1, Q ,165 1, Change +5% 1 +2% +11% (206) (215) - 9m (131) 245 (2) + 376m End- March End- March 2014 End- June End- June 2014 End- Sept End- Sept 2014 End- Dec End- Dec 2014 (1) Up 6% like-for-like and at constant exchange rates (2) Including a net capital gain of 385m on the sale of the Cofiroute stake 48 24

25 86 Financial results of the construction businesses m Q1 restated Q Change Sales 4,942 5,208 +5% 1 Current operating profit/(loss) o/w Bouygues Construction o/w Bouygues Immobilier o/w Colas (1) Up 6% like-for-like and at constant exchange rates (81) (93) - 12m m m (206) (215) - 9m Net profit/(loss) attributable to the Group (46) m Like every yyear, the first quarter operating results are not indicative of full year performance due to Colas seasonality Additionally, net profit attributable to the Group includes a net capital gain of 372m related to the sale of the Cofiroute stake. Excluding this non-current item, the construction businesses would have posted a Q net loss of 43m, 3m less than in Q1 As expected, 2014 financial performance should remain robust

26 Q overview at TF1 million Q1 restated Q (1) Change Sales % 2 o/w TF1 group advertising = Current operating profit/(loss) (16) m Net profit/(loss) att. to the Group (6) m (1) At the Bouygues level, Eurosport International sales and EBIT will remain included in the TF1 results until the effective sale of the additional 31% to Discovery Communications (2) Down 1% like-for-like and at constant exchange rates The Voice, the TV show Stable group advertising revenue in a difficult economic and competitive environment Q operating profit up 39m vs Q1 due to timing differences in programming costs as well as continued benefits from the optimisation plan

27 2014 strategic priorities Develop data use by capitalising on 4G and attract customers to value-added plans Launch breakthroughs in the fixed segment to accelerate growth and to expand Internet at-home accessibility to as many people as possible Continue to transform the company 599m of cost savings achieved on the mobile activity between 2011 and New target of 300m of annual savings on the total cost base by 2016 Bouygues Telecom fixed offer advert 53 Develop data use thanks to 4G Continued 4G traction in the customer base 13% 1 of the subscriber base uses 4G Average data consumption: 2 GB per month for 4G users Progress in attracting customers to value-added plan 2 More than 70% of retail plan subscribers on a value-added plan at end-march 2014: +10 pts vs end-march Close to 60% of the B&YOU subscriber base is on or plans at end-march G users 1 ( 000) 1,400 1,000 End-Dec End-March 2014 In keeping with, the increase in value-added plans is hidden by the loss of prepaid and basic plan customers Net adds of 30,000 plan subscribers and net loss of 109,000 prepaid customers in Q (1) Customers with a 4G plan and a 4G-compatible handset (2) Above or equal to 500 MB/month 54 27

28 Breakthroughs in the fixed segment Successful launch of the new fixed offering Bouygues Telecom number 1 in terms of net growth 1 in Q with 100,000 new fixed customers Continued growth of very-high-speed customers 3 378,000 customers at end-march % of the fixed customer base at end-march 2014 Bouygues Telecom will continue to expand Internet at-home accessibility to as many people as possible Thanks to new initiatives during the year......and to constant progress in its fixed network 78% of the population covered in unbundled zones 50% of the population covered by Bouygues Telecom s own network with a target to add 1 million households by end million Fibre home passed (FTTH) Target of 1.4 million by end Net adds in the fixed broadband business 2 ( 000) Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Very-high-speed customer base 3 ( 000) (1) Company estimate (2) Includes broadband and very-high-speed subscriptions (3) Arcep definition: subscriptions with peak downstream speed higher or equal to 30 Mbit/s 312 End-March 320 End-June 334 End-Sept End-Dec End-March Q financial performance at Bouygues Telecom million Q1 restated Q Change Sales 1,148 1,085-5% 1 Sales from network 1, % EBITDA EBITDA/sales from network % 9% % - 49m pts Current operating profit/(loss) 28 (19) - 47m Operating profit (2) + 153m Net profit attributable to the Group m (1) Down 5% like-for-like and at constant exchange rates (2) Including non-current income of 200m, in particular related to litigation settlements In keeping with, sales and EBITDA reflect the commercial performance, the continued repricing within the subscriber base and the increasing share of SIM-only sales Repricing of the subscriber base since April (3) : 71% at end-march 2014 EBITDA includes 18m for the 1,800 MHz refarming fee Operating profit includes non-current income and charges resulting in a positive amount of 200m, in particular related to litigation settlements (3) The number of retail customers subscribing to a plan whose price has been revised since April as a percentage of the total retail plan subscriber base 56 28

29 ANNEX Mobile and fixed business performance at Bouygues Telecom 000 End-March End-June End-Sept End-Dec End-March 2014 Mobile subscriber base 11,271 11,286 11,094 11,143 11,064 o/w plan subscribers 1 9,618 9,802 9,760 9,910 9,940 o/w prepaid customers 1,653 1,484 1,334 1,233 1,124 Fixed subscriber base 1,891 1,901 1,941 2,013 2,113 o/w very-high-speed sub Sales from the fixed broadband network 3 ( m) % ,334 B&YOU mobile subscriber base 4 ( 000) 1,876 1,750 1,634 1,509 Q1 13 Q1 14 Q2 13 Q3 13 Q4 13 End-March End-June End-Sept End-Dec End-March 2014 (1) Plan subscribers: total customer base excluding prepaid customers according to the Arcep definition (2) Arcep definition: subscriptions with peak downstream speed higher or equal to 30 Mbit/s (3) Sales from network excluding the ideo discount (4) Excluding B&YOU prepaid customers, accounted for under the Simyo brand from Q3 57 Annex Key indicators at Bouygues Telecom Plan Prepaid Total subscriber base Q4 Q Q4 Q Q4 Q Subscribers SIM cards ( 000) 9,910 9,940 1,233 1,124 11,143 11,064 SIM cards (% mix) 88.9% 89.8% 11.1% 10.2% Fixed broadband subscriber base 1 ( 000) 2,013 2,113 Unit data mobile subscribers ARPU ( /year/subscriber) Data usage (MB/month/subscriber) Text usage (texts/month/subscriber) Voice usage (min/month/subscriber) Unit data fixed subscribers ARPU ( /year/subscriber) Marketing costs 5 Q1 Q Marketing costs ( m) Marketing costs/sales from network 14.0% 10.4% (1) Includes broadband and very-high-speed broadband subscriptions according to the Arcep definition (2) Rolling 12-month period, stripping out the ideo discount, and excluding machine-tomachine SIM cards for mobile ARPU (3) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machine SIM cards (4) Rolling 12-month period, adjusted on a monthly basis, excluding machine-to-machine SIM cards and excluding internet SIM cards 58 (5) Mobile and fixed subscriber acquisition and retention costs 29

30 HIGHLIGHTS AND KEY FIGURES BUSINESS AREAS FINANCIAL STATEMENTS 59 Condensed consolidated income statement (1/2) million Q1 restated Q Change Sales 6,645 6,841 +3% Current operating income (77) (96) - 19m Other operating income and expenses (1) + 196m Operating income (77) m Cost of net debt (79) (81) - 2m o/w financial income = o/w financial expenses (89) (91) - 2m Other financial income and expenses (9) (3) + 6m (1) Non-current income related to Bouygues Telecom 60 30

31 Condensed consolidated income statement (2/2) million Q1 restated Q Change Income tax expense 53 (5) - 58m Associates and joint ventures o/w share of profits o/w net capital gain on Cofiroute disposal (1) + 237m - 16m + 253m Net profit/(loss) from continuing operations (47) m Net (profit)/loss attributable to non-controlling interests 2 5 (28) - 33m Net profit/(loss) attributable to the Group (42) m (1) Net capital gain at 100% (2) Formerly called minority interests 61 THE BOUYGUES GROUP Slide 4 THE BUSINESSES Slide 13 Q RESULTS Slide 33 GROUP OUTLOOK Slide 63 APPENDIX Slide

32 Outlook 2014 Group total sales should be close to the level Operating performances should remain robust for the construction businesses TF1 operating results will be marked by two exceptional events in 2014: the Football World Cup and the probable divestment of Eurosport International Bouygues Telecom confirms its target to generate a slightly positive EBITDA 1 minus Capex item in 2014 and continues to implement its three strategic priorities Develop e data use by capitalising on 4G Launch breakthroughs in the fixed segment to accelerate growth Transform the company with a new target of 300m of annual savings on the total cost base by 2016 (1) EBITDA = current operating profit + net depreciation and amortisation expense + net provisions and impairment losses - reversals of unutilised provisions and impairment losses 63 THE BOUYGUES GROUP Slide 4 THE BUSINESSES Slide 13 Q RESULTS Slide 33 GROUP OUTLOOK Slide 63 APPENDIX Slide

33 Annex as published Condensed consolidated income statement (1/2) m 2012 Change Sales 33,547 33,345-1% Current operating profit 1,286 1,344 +5% Other operating income and expenses (166) 1 (91) 2 nm Operating profit 1,120 1, % Cost of net debt (290) (309) +7% o/w financial i income % o/w financial expenses (352) (364) +3% Other financial income and expenses 11 (26) nm (1) Including 200m of non-current charges at Bouygues Telecom and TF1 and 34m of capital gains on asset disposals at Bouygues Telecom (2) Including 80m at Bouygues Telecom and 11m at Colas 65 Annex as published Condensed consolidated income statement (2/2) m 2012 Change Income tax expense (330) (367) +11% Associates 217 (1) 205 (2) -6% Net profit from continuing operations % Net profit attributable to non-controlling interests 3 (95) (109) +15% Net profit attributable to the Group before the write-down of Alstom % Write-down of Alstom - (1,404) nm Net profit/(loss) attributable to the Group 633 (757) nm (1) Including non-current charges of 53m related to the dilution loss further to the capital increase at Alstom (2) Before the write-down of Alstom for 1,404m (3) Formerly called "minority interests" 66 33

34 Annex as published Sales by business area m 2012 Change Bouygues Construction 10,640 11,111 +4% Bouygues Immobilier 2,396 2,510 +5% Colas 13,036 13,049 = Sub-total of construction businesses 1 25,753 26,275 +2% TF1 2,621 2,470-6% Bouygues Telecom 5,226 4,664-11% Holding company and other nm Intra-Group elimination (495) (578) nm TOTAL o/w France o/w international (1) Total of the sales contributions (after eliminations within the construction businesses) 33,547 22,308 11,239 33,345 22,118 11,227-1% -1% = 67 Annex as published Contribution of business areas to Group EBITDA m 2012 Change Bouygues Construction m Bouygues Immobilier m Colas m TF m Bouygues Telecom m Holding company and other (36) (27) + 9m TOTAL 2,822 2, m EBITDA = current operating profit + net depreciation and amortisation expense + net provisions and impairment losses - reversals of unutilised provisions and impairment losses 68 34

35 Annex as published Contribution of business areas to Group current operating profit m 2012 Change Bouygues Construction m Bouygues Immobilier m Colas m Sub-total of construction businesses 949 1, m TF m Bouygues Telecom m Holding company and other (43) (34) + 9m TOTAL 1,286 1, m 69 Annex as published Contribution of business areas to Group net profit/(loss) m Attributable to the Group 2012 Change Bouygues Construction m Bouygues Immobilier m Colas m Sub-total of construction businesses m TF m Bouygues Telecom (14) m Alstom m Holding company and other (317) 1 (271) m Net profit attributable to the Group before the write-down of Alstom m Write-down of Alstom - (1,404) nm Net profit/(loss) attributable to the Group 633 (757) nm (1) Including non-current charges of 53m related to the dilution loss further to the capital increase at Alstom (2) Before the write-down of Alstom 70 35

36 Annex as published Condensed consolidated balance sheet m End-Dec 2012 End-Dec (1) Change Non-current assets 20,170 17,684-2,486m Current assets 16,584 15,469-1,115m Held-for-sale assets and operations - 1,151(2) + 1,151m TOTAL ASSETS 36,754 34,304-2,450m Shareholders' equity Non-current liabilities Current liabilities Liabilities related to held-for-sale operations TOTAL LIABILITIES 10,078 9,845 16,831-36,754 8,684 8,959 16, ,304 (1) - 1,394m - 886m - 336m + 166m - 2,450m Net debt 4,172 4, m (3) (1) Including impact of the write-down of Alstom (2) Relating to Eurosport International and Cofiroute (3) Relating to Eurosport International 71 Annex as published Change in net cash position in (1/2) Net cash at 31/12/2012 m Net cash at 31/12/ (4,172) Acquisitions/ disposals Dividends paid -591 Issue & buyback of Bouygues shares -71 Operation 4G frequencies (3 872) (4,360) Reclassification of Eurosport International (2) Exceptional -67 disposals 3 (4,427) 2012 (3,862) (4,172) (4,172) (1) Including scope effects (2) Capitalised interest related to 4G frequencies (3) Disposal in 2012 of 20% stake in Eurosport and the theme channels at TF1 as well as divestment of tower business and data centres at Bouygues Telecom (4) Reclassification of Eurosport International to held-for-sale operations 72 36

37 Annex as published Change in net cash position in (2/2) Breakdown of operation m Net cash flow 1 +2,066 Net capital expenditure -1,245 (2) Change in operating WCR 3 and other (2) (2) ,157-1,433 (4) (4) (1) Net cash flow = cash flow - cost of net debt - income tax expense (2) Excluding capitalised interest related to 4G frequencies for 33m at Group level (3) Operating WCR: WCR relating to operating activities + WCR relating to net liabilities related to property, plant & equipment and intangible assets (4) Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band (acquisition cost and capitalised interest for 726m) and asset disposals for 207m 73 Annex as published Contribution of business areas to Group net cash flow m 2012 Change Bouygues Construction m Bouygues Immobilier = Colas m TF m Bouygues Telecom m Holding company and other (158) (171) - 13m TOTAL 2,157 2,066-91m Net cash flow = cash flow - cost of net debt - income tax expense 74 37

38 Annex as published Contribution of business areas to Group net capital expenditure m 2012 Change Bouygues Construction = Bouygues Immobilier m Colas m TF m Bouygues Telecom 869 (1) 739 (2) - 130m Holding company and other 2 (1) 2 (2) = Total excluding exceptional items 1,433 (1) 1,245 (2) - 188m Exceptional items m TOTAL 1,952 1, m (1) Excluding exceptional items related to Bouygues Telecom: acquisition cost and capitalised interest related to 4G frequencies for 726m at Group level (o/w 696m at Bouygues Telecom level and 30m at Holding company level) and asset disposals for 207m (2) Excluding capitalised interest related to 4G frequencies for 33m at Group level (o/w 13m at Bouygues Telecom level and 20m at Holding company level) 75 Annex as published Contribution of business areas to Group free cash flow m 2012 Change Bouygues Construction m Bouygues Immobilier m Colas m Sub-total of construction businesses m TF m Bouygues Telecom (89) 1 24 (2) + 113m Holding company and other (160) 1 (173) 2-13m TOTAL 724 (1) 821 (2) + 97m Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR (1) Excluding exceptional items related to Bouygues Telecom: acquisition cost and capitalised interest related to 4G frequencies for 726m at Group level (o/w 696m at Bouygues Telecom level and 30m at Holding company level) and asset disposals for 207m (2) Excluding capitalised interest related to 4G frequencies for 33m at Group level (o/w 13m at Bouygues Telecom level and 20m at holding company level) 76 38

39 Annex as published Net cash by business area m End-Dec 2012 End-Dec Change Bouygues Construction 3,093 3,006-87m Bouygues Immobilier m Colas (170) m TF (1) - 49m Bouygues Telecom (650) (783) - 133m Holding company and other (7,040) (7,148) - 108m TOTAL (4,172) (4,427) - 255m (1) After reclassification of net cash for 67m at Eurosport International to held-for-sale operations 77 Annex as published Financing m Available cash: 8.7bn 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Undrawn MLT facilities 5.5bn Cash 3.2bn Debt maturity schedule at end-december 78 39

40 Annex Impact of IFRS 11 on the Group's financial statements m reported Bouygues Construction Restatement Colas TF1 restated Sales 33, (10) (204) (10) 33,121 Current operating profit 1,344 2 (27) - 1,319 Operating profit 1,253 2 (27) - 1,228 Cost of net debt Other financial income and expenses Income tax expense (309) (26) (367) (304) (26) (360) Associates (2) Net profit from continuing operations (1) Net profit attributable to non-controlling interests (109) (108) Net profit attributable to the Group before the write-down of Alstom (1) Before the write-down of Alstom for 1,404m 79 Annex Impacts of the exceptional items on the net result attr. to the Group million Q1 restated Q Change Net result attributable to the Group (42) m Non-current income of 196m related to Bouygues Telecom, net of taxes - (109) - 109m Net capital gain on the sale of Colas stake in Cofiroute - (240) - 240m Cofiroute s contribution to Q1 net result m Net result attributable to the Group excluding exceptional items (42) (56) - 14m million Q1 restated Q Change Net result attributable to the Group of the construction businesses (46) m Net capital gain on the sale of Colas stake in Cofiroute Cofiroute s contribution to Q1 net result - - (372) 8-372m + 8m Net result attributable to the Group of the construction businesses excluding exceptional items (46) (43) + 3m 80 40

41 Annex P&L impacts of the sale of the Cofiroute stake million Q Colas Colas Group P&L contribution 1 P&L Net capital gain Goodwill at the Holding company level Net capital gain post goodwill Net capital gain att. to non-controlling interests 2 (3.4%) Net capital gain attributable to the Group (1) Colas contribution to Bouygues net profit (2) Calculated on net capital gain (at 100%) before goodwill 81 Annex Group organisation chart Roadworks Building / Civil Engineering Property (1986) (1952) (1956) 96.6 % 100 % 100 % CONSTRUCTION (1994) TELECOMS 29.3% stake (1987) MEDIA POWER - TRANSPORT (2006) 90.5 % 43.5 % Figures as of 31 December 82 41

42 Annex A diversified portfolio Entering new businesses under good conditions Growing market Regulatory or technological changes Favorable financial conditions Ability to bring managerial skills Acquisition of Colas / Screg in 1985 Acquisition of TF1 in 1987 Launch of Bouygues Telecom in 1994 Investment in Alstom in 2006 Disposing of businesses under the following circumstances Lack of understanding and control of the market and its opportunities Structural reduction of free cash-flow generation Better opportunities for use of proceeds Excessive Capex requirement Maison Bouygues in 1990 Bouygues Offshore in 2002 Saur in 2005 TPS in Annex as published CONSTRUCTION BUSINESSES: sales breakdown 42% 14% 44% Building and Civil Works France Building and Civil Works International Electrical Contracting 7% 4% 53% France 16% Europe (excl. France) Asia and Middle east Americas 20% Africa 15% 4% 85% Residential Commercial 96% France Europe 66% 19% 15% Specialty activites Building materials Roadworks 9% 19% North America 57% 15% Europe (excl. France) France Others 84 42

43 Annex 20 years of know-how in concession and PPP/PFI contracts A28 motorway concession A41 motorway concession Stade de France concession Reims tramway concession Cofiroute Libourne street lighting PPP United Kingdom 18 health, education, social housing and street lighting PFI contracts (incl. Home Office, Broomfield hospital, social housing in Brent, Hertfordshire campus etc.) New Tyne Tunnel concession Portsmouth road maintenance PFI MAC-type road and railway maintenance contracts Canada Hospital PPP in British Columbia Royal Canadian Mounted Police headquarters PPP Iqaluit International Airport PPP Long-term road maintenance contracts United States Miami port tunnel PPP Jamaica Motorway concession: highway 2000, 1A Bouygues Construction Colas Croatia Istria motorway concession phases 1 and 2 Zagreb Airport concession Ivory Coast Highway concession Sport facilities PPPs (Stade Vélodrome in Marseille, Velodrom in Saint-Quentin en Yvelines) Hospital PPPs (Bourgoin-Jailleu, Caen etc.) Prison PPPs (Réau, Annœullin, Nantes, etc.) PPPs in the education sector (Paris 4, Versailles Saint-Quentin universities, 5 secondary schools in Loiret) Territorial planning PPPs (Paris and Valenciennes street lighting, broadband network in Vaucluse, etc.) French Ministry of Defence, Paris Paris Law courts complex Nîmes and Montpellier railway bypass Municipal authority complex in Bordeaux L2 bypass in Marseille Germany Rostock tunnel concession Hungary M5 motorway concession M6-M60 motorway PPP Singapore Sports Hub PPP South Korea Machang Bay Bridge Cyprus Lanarka and Pafos airport concession South Africa Gautrain rail link concession concession Pusan port concession Hong Kong AsiaWorld-Expo concession and Marriott hotel Saudi Arabia Equestrian Club PPP Australia Sydney metro 85 Annex Calendar 28 August 2014 First-half 2014 sales and earnings 7.30am 28 August 2014 First-half 2014 results presentation 11.00am 14 November 2014 Nine-month 2014 sales and earnings 7.30am 86 43

44 87 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 87 44