BOUYGUES SA
Paris, 25 February 2015
Results in line with expectations
Good commercial performance
Current operating profit: €888 million
Net profit: €807 million benefiting from exceptional items
Strengthened financial structure
Dividend maintained at €1.60
As announced, the figures published in 2013 have been restated for IFRS 11.
Furthermore, the Group starts to apply IFRIC 21 from 1 January 2015, which will affect the timing of recognition of certain taxes such as C3S and IFER. The impact of IFRIC 21 on the 2014 interim results is described in Note 23.2 of the
Group's consolidated financial statements.
Key figures(€ million)
2013 restated 2014 ChangeSales 33,121 33,138 =
Current operating profit 1,319 888 -€431m
Operating profit 1,228a 1,133b -€95m
Net profit/(loss) attributable to the Group
Net profit attributable to the Group excl. exceptional itemsd
(757)
650
807c
492
nm
-€158m
Net debte 4,435 3,216 -€1,219m
(a) Including non-current charges of €80 million at Bouygues Telecom and of €11 million at Colas
(b) Including non-current charges of €68 million at Colas and Bouygues Telecom and a capital gain of €313 million on the sale of
Eurosport International (31%) and the remeasurement of the residual interest (49%)
(c) Including a net capital gain of €240 million on the sale by Colas of its stake in Cofiroute
(d) Restated notably for capital gains, non-current items and the Alstom write-down (reconciliation on page 9) (e) At 31 December
2014 overview
Full-year results were in line with expectations.
The Bouygues group reported consolidated sales of €33.1 billion, stable versus 2013. International activities continued to show strong momentum with sales growth of 8% to €11.9 billion versus 2013, offsetting a decline in sales in France, down 4% on 2013 to €21.3 billion.
Current operating profit amounted to €888 million, €431 million less than in 2013.
Net profit attributable to the Group stood at €807 million, benefiting from the sale of a controlling interest in
Eurosport International and of Colas' stake in Cofiroute.
Stripping out exceptional items (disposals, non-current items and the Alstom write-down), net profit attributable to the Group would be €492 million, versus €650 million in 2013.
1/11
Looking beyond operating performances which reflect a challenging economic and competitive environment in
France, the Bouygues group demonstrated its responsiveness and strengthened in 2014.
The order book for the construction businesses stood at a high level of €27.6 billion at end-December 2014, stable year-on-year. International markets now account for over half of the order book at Bouygues Construction and Colas (53% at end-December 2014, versus 50% a year earlier).
- Bouygues Telecom continued its transformation in accordance with its road map and saw the first signs of the success of its strategy.
Bouygues Telecom's 4G network continued to attract more and more customers. 28% of the operator's mobile customers now use 4G, versus 9% at end-December 2013, and consume 2.2GB of data per month on average. Bouygues Telecom's 4G customers are the leaders in terms of mobile data consumption on the French market and account for 34% of 4G customers in France.
The company also continued to gain ground in the fixed broadband segment. Adding 415,000 new customers in 2014, including 110,000 in the fourth quarter, Bouygues Telecom is No. 1 in terms of net growtha.
Net debt at end-December 2014 amounted to €3.2 billion, versus €4.4 billion a year earlier, benefiting from the proceeds of the sale of the Group's interests in Cofiroute and Eurosport International and from tight management of the working capital requirement in all the Group's business segments in the second half of the year.
- The plan to sell Alstom's Energy activities creates growth and medium-term upside potential for Bouygues.
Alstom will be a global leader on a growing transport market, with strong international operations and a range
of products and services covering all its customers' needs.
(a) Company estimate for Q4 2014 and Arcep figures for the previous quarters
Outlook
In an economic and competitive environment that will remain challenging in France in 2015, all the
Group's business segments will prioritise a return to growth in 2016.
The Group's construction businesses will continue to expand on international markets and to adapt in France. Financial results are likely to remain solid in 2015 with the current operating margin at the level of 2014 despite a decline in sales.
TF1 intends to maintain its leading position in freeview television and will continue to adapt its business model to changes in its markets. Its current operating margin should improve in 2015, stripping out the impact of the deconsolidation of Eurosport International in 2014.
At Bouygues Telecom, EBITDA should remain stable in 2015, with capital expenditure rising slightly as the company implements the agreement to share part of the mobile network with the Numericable-SFR group and expands its fixed network.
Free cash flow will turn positive again in 2016 as the full effects of the transformation plan entirely rolled out in
2015 work through, and as a result of savings of €300 million versus end-2013.
In addition in 2015, the Group will continue to adapt its business segments and Bouygues Telecom will implement the network sharing agreement with the Numericable-SFR group, which will result in a write-down of assets. This could generate non-current charges of around €200 million, which will affect the Group's operating profit in 2015.
2/11
Other informationDetailed review by business segment
Construction businessesa Bouygues Construction took orders worth €11.6 billion in 2014, down 2% on the previous year, with a good performance on international markets. The order book stood at €18.1 billion at end-December 2014, up 1% on end-December 2013. It has yet to include the new NorthConnex motorway contract in Sydney, Australia, worth around €900 million. Bouygues Immobilier took reservations worth €2.5 billion, up 20% year-on-year. This strong growth in a
challenging market was driven by the conclusion of some major turnkey projects in the commercial property segment (the company took commercial reservations worth €603 million in 2014, versus €236 million in 2013) and a 2% rise in residential reservations to €1.9 billion. The order book at end-December 2014 stood at
€2.4 billion.
The order book at Colas stood at €7.2 billion at end-December 2014, a high level and 1% more than at the end
of the previous year. The international and French overseas order book grew 8% year-on-year to €4.1 billion, offsetting a 7% decline in mainland France to €3.0 billion, mainly caused by a decline in orders from local authorities.
Sales in the construction businesses rose 2% in 2014 to €26.5 billion, driven by a 10% year-on-year increase
on international markets to €11.6 billion which offset a decline in sales in France, down 4% year-on-year to
€14.9 billion. Current operating profit amounted to €841 million, €164 million lower than in 2013. Profitability remained solid: the current operating margin was 3.2% despite the start or early stages of a number of major projects at Bouygues Construction, a sharp decline in the French roads market and an operating loss in Colas' sales of refined products activity (a loss of €64 million in 2014 versus a loss of €46 million in 2013). Operating profit in the construction businesses amounted to €774 million in 2014, including non-current charges of €67 million at Colas mainly related to the new configuration of the Dunkirk refinery.
(a) Construction businesses: Bouygues Construction, Bouygues Immobilier and Colas
TF1a
The audience share of the TF1 group's four freeview channels in 2014 was virtually stable at 28.7%b.
Sales in 2014 amounted to €2.2 billion, down 9% on 2013 but up 1% like-for-like and at constant exchange rates. Current operating profit amounted to €143 million. The €80-million decline versus 2013 was due to the deconsolidation of Eurosport International from 1 June 2014 and the impact of the 2014 FIFA World Cup and concealed the positive impact on profitability from transformation of the group's business model. Operating profit included a capital gain of €328 million on the sale of a 31% interest in Eurosport International and remeasurement of the residual interest (49%). It amounted to €471 million over the full year, €248 million more than in 2013.
(a) At Bouygues group level, Eurosport International's sales and operating profit were included in TF1's results until the sale of an additional
31% stake in Eurosport International to Discovery Communications on 30 May 2014 (b) Source: Médiamat by Médiamétrie - Individuals aged 4 and over
Bouygues Telecom Bouygues Telecom had a total of 13,549,000 customers at end-December 2014, 393,000 more than at the end of the previous year.
The number of mobile customers rose by 73,000 in the fourth quarter of 2014 to 11,121,000 at year-end. The number of plan customers rose by 99,000 in the fourth quarter to a total of 10,130,000.
On the fixed broadband marketa, 415,000 customers signed up to Bouygues Telecom in 2014, including
110,000 in the fourth quarter, to give a total of 2,428,000 customers at end-December 2014, a year-on-year increase of 21%.
Bouygues Telecom continued to implement its transformation plan in 2014. A new positioning based on the quality of the customer experience was announced in November 2014, together with the launch of a simplified range of plans to which all customers will have been gradually migrated by the end of the first half of 2015. These changes are being implemented alongside a far-reaching reorganisation and a redundancy plan for nearly
1,400 employees, which was completed in late January 2015.
3/11
Bouygues Telecom achieved its target of a positive "EBITDA minus Capex" item, which amounted to
€10 million for 2014. Sales amounted to €4.4 billion and sales from network to €3.9 billion, down 5% and 7% respectively on 2013. EBITDA totalled €694 million, down €186 million year-on-year. The company reported a current operating loss of €65 million and an operating loss of €62 million after factoring in non-current income of
€400 million from litigation settlements and a non-current charge of €397 million for adaptation costs and other.
(a) Encompasses both broadband and very-high-speed subscriptions
Alstom
As announced on 5 November 2014, Alstom's contribution to the Bouygues group's net profit in 2014 was
€128 million, versus €168 million in 2013.
On release of its sales figures for the third quarter of FY2014/15, Alstom recalled that its shareholders had overwhelmingly approved the transaction with General Electric at an extraordinary general meeting on
19 December 2014 and that the process of obtaining the necessary regulatory and merger control approvals was under way.
Dividend
The Board of Directors will ask the Annual General Meeting on 23 April 2015 to approve the payment of a dividend of €1.60 per share, the same as for 2013. The ex-date, record date and payment date have been set at 28, 29 and 30 April 2015 respectively.
The stable dividend reflects the Group's confidence in the success of the measures taken in all its business segments in order to secure a return to growth in 2016, backed up by a stronger financial situation.
For information, on 19 February 2015 TF1 announced the payment of a dividend of €1.50 per share, consisting of an ordinary part of €0.28 per share and an exceptional part of €1.22 per share following the sale of a controlling interest in its Eurosport International subsidiary. On 25 February 2015, Colas announced the payment of a dividend of €15.40 per share, consisting of an ordinary part of €4.00 per share and an exceptional part of
€11.40 per share following the sale of its interest in Cofiroute.
Board of Directors
The Board of Directors will ask the next Annual General Meeting to renew the terms of office of François Bertière, Martin Bouygues and Anne-Marie Idrac and to appoint Clara Gaymard as a director.
Remuneration of corporate officers
In accordance with Afep/Medef recommendations, information about the remuneration of corporate officers and the award of stock options is released today on the www.bouygues.com website under Finance/Shareholders, Regulated information.
Financial calendar:
13 May 2015: First-quarter 2015 results (7.30am CET)
27 August 2015: First-half 2015 results (7.30am CET)
The financial statements have been audited and the statutory auditors have issued a report certifying them without reserve.
You will find the full financial statements and Notes to the financial statements on www.bouygues.com.
The full-year results presentation to financial analysts will be webcast live on 25 February 2015 at 11am (CET)
on www.bouygues.com.
Press contact:
+33 (0)1 44 20 12 01 - presse@bouygues.com
Investors and analysts contact:
+33 (0)1 44 20 10 79 - investors@bouygues.com
www.bouygues.com
4/11
2014 business activity
Order books at the construction businesses
(€ million)
Bouygues Construction 17,147 17,832 18,067
Bouygues Immobilier 2,957 2,610 2,390
Colas 6,704 7,088 7,158
TOTAL 26,808 27,530 27,615
Bouygues Construction order intake
(€ million)
2013 2014 % changeFrance International TOTAL
Bouygues Immobilier reservations
(€ million)
2013 2014 %change
Residential property Commercial property TOTAL
Colas
order book
(€ million)
Mainland France
International and French overseas territories
TOTAL
TF1
audience sharea 2013 2014 Pts
TF1
TMC NT1
HD1
TOTAL
(a) Source: Médiamétrie, Individuals aged 4 and over
Bouygues Telecom customer base
('000 customers)
Plan subscribers
Prepaid customers
Total mobile customers
Total fixed customers
5/11
2014 financial performance
Condensed consolidated income statement(€ million)
2013 restated 2014 Change(€m)
Other operating income and expenses
+€336m
Operating profit -€95mCost of net debt
-€7m
Other financial income and expenses
+€36m
Income tax expense
+€172m
Investments in joint ventures and associates
o/w share of profits
o/w net capital gain on Cofiroute disposal o/w write-down of Alstom
+€1,607m
-€50m
+€253m
+€1,404m
Net profit/(loss)
Net profit attributable to non-controlling interestsd
Net profit/(loss) attributable to the Groupnm
-€149m
nm(a) Including non-current charges of €80 million at Bouygues Telecom and of €11 million at Colas
(b) Including non-current charges of €68 million at Colas and Bouygues Telecom and a capital gain of €313 million on the sale of
Eurosport International (31%) and the remeasurement of the residual interest (49%) (c) Net capital gain at 100%
(d) Formerly "Minority interests"
(e) Restated notably for capital gains, non-current items and the Alstom write-down (reconciliation on page 9)
Fourth-quarter consolidated income statement(€ million)
Fourth-quarter 2013 restated 2014 Change(€m)
Sales 9,033 8,915 -1% Current operating profit 441 334 -€107m
Operating profit 350a 184c -€166m
Net profit/(loss) attributable to the Group (1,305)b 79 nm
(a) Including non-current charges of €80 million at Bouygues Telecom and of €11 million at Colas
(b) Including Alstom write-down for €1,404 million
(c) Including non-current charges of €83 million at Bouygues Telecom and of €67 million at Colas
6/11
Condensed consolidated balance sheet
(€ million)
End-2013
restated End-2014
Non-current assets 17,690a 18,504
Current assets
Held-for-sale assets and operations
15,374
1,151b
16,364
-
TOTAL ASSETS 34,215 34,868
Shareholders' equity 8,669a 9,455
Non-current liabilities 8,941 8,308
Current liabilities
Liabilities related to held-for-sale operations
16,439
166c
17,105
-
TOTAL LIABILITIES 34,215 34,868
Net debt 4,435 3,216
(a) Including impact of the Alstom write-down
(b) Relating to Eurosport International and Cofiroute
(c) Relating to Eurosport International
Sales
by business segment
(€ million)
2013 restated 2014%
change
Change l-f-l and at constant exchange
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businessesa
TF1
Bouygues Telecom
Holding company and other
+6% +4%
+11% +10%
-3% -3%
+2% +1%
-9% +1%
-5% -5%
nm nm
Intra-Group elimination (578) (562) nm nm
TOTAL 33,121 33,138 = = o/w France 22,086 21,271 -4% -4% o/w international 11,035 11,867 +8% +9%
(a) Total of the sales contributions (after eliminations within the construction businesses)
Contribution to EBITDAa
by business segment
(€ million)
2013 restated
2014 Change
(€m)
Bouygues Construction 670 629 -€41m Bouygues Immobilier 191 173 -€18m Colas 786 770 -€16m TF1 299 178 -€121m Bouygues Telecom 880 694 -€186m Holding company and other (27) (26) +€1m
TOTAL 2,799 2,418 -€381m
(a) EBITDA = current operating profit + net depreciation and amortisation expense + net provisions and impairment losses - reversals of unutilised provisions and impairment losses
7/11
Contribution to current operating profit by business segment
(€ million)
2013 restated
2014 Change
(€m)
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businesses
TF1
Bouygues Telecom
Holding company and other
-€102m
-€4m
-€58m
-€164m
-€80m
-€190m
+€3m
TOTAL 1,319 888 -€431m
Contribution to operating profit by business segment
(€ million)
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businesses
TF1
Bouygues Telecom
Holding company and other
2013
restated 2014
Change
(€m)
-€102m
-€4m
-€114m
-€220m
+€248m
-€107m
-€16m
TOTAL 1,228 1,133 -€95m
(a) Including non-current charges of €11 million related to the reorganisation of the French roads activity
(b) Including non-current charges of €80 million related to the adaptation of the distribution model
(c) Including non-current charges of €67 million mainly related to the Dunkirk refinery
(d) Including a capital gain of €328 million on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%) (e) Including non-current income of €3 million: €400 million from litigation settlements minus €397 million for adaptation costs and other
(f) Including non-current charges of €4 million related to Bouygues Telecom and €15 million for derecognition of goodwill related to the sale of
Eurosport International
Contribution to net profit attributable to the
Group by business segment
(€ million)
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businesses
TF1
Bouygues Telecom
Alstom
Holding company and other
2013
restated 2014
Change
(€m)
-€23m
+€1m
+€282m
+€260m
+€119m
-€52m
-€40m
nm
(a) Including Alstom write-down for €1,404 million
(b) Including a net capital gain of €372 million related to the sale of the stake in Cofiroute
(c) Including a net capital gain of €131 million on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%) (d) Including €147 million for derecognition of goodwill at Holding company and other: €132 million related to the sale by Colas of
Cofiroute and €15 million related to the sale of Eurosport International
(e) Restated notably for capital gains, non-current items and the Alstom write-down (reconciliation on page 9)
8/11
Impacts of exceptional items on net profit attributable to the Group (€ million) 2013 restated 2014 Change(€m)
Alstom write-down
Net capital gain on the sale by Colas of its stake in
Cofiroute
Cofiroute contribution to net profit
Net capital gain on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%)
-€1,404m
-€240m
+€49m
-€116m
Non-current charges related to Colas, net of taxes
Non-current charges related to Bouygues Telecom, net of taxes
+€33m
-€44m
exceptional items 650 492 -€158m Impacts of exceptional items on net profit attributable to the Group of the construction businesses(€ million)
(€m)
construction businesses 679 939 +€260mNet capital gain on the sale by Colas of its stake in
Cofiroute - (372) -€372m
Cofiroute contribution to net profit
Non-current charges related to Colas, net of taxes
(49)
+7
-
+40
+€49m
+€33m
Net capital gain on disposal
- Goodwill at Holding company level
385
0
385
0
385
(132)
Net capital gain on disposal after goodwill
- Net capital gain attributable to non-controlling interestsb (3.4%)
385
0
385
(13)
253
(13)
(a) Colas contribution to net profit attributable to the Group
(b) Calculated on net capital gain (at 100%) before goodwill
9/11
Impacts of the sale of the 31% stake in Eurosport International on the income statement(€ million - 2014)
TF1 income statement TF1 contributiona Bouygues income statement- Income tax expense
Capital gain and remeasurementb after tax
- Goodwill at Holding company level
Net capital gain on disposal and remeasurementb
after goodwill
- Net capital gain attributable to non-controlling interestsc (56.5%)
Net capital gain and remeasurementb attributable(28)
300
0
300
0
(28)
300
0
300 (169)
(28)
300 (15)
285 (169)
to the Group 300 131 116(a) TF1 contribution to net profit attributable to the Group
(b) Net capital gain on the sale of Eurosport International (31%) and the remeasurement of the residual interest (49%) (c) Calculated on net capital gain (at 100%) before goodwill
Net cash
by business segment
(€ million)
End-December
2013
restated 2014
Change
(€m)
Bouygues Construction 3,006 2,900 -€106m Bouygues Immobilier 271 203 -€68m Colas 31 682a +€651m TF1 189b 497c +€308m Bouygues Telecom (783) (765) +€18m Holding company and other (7,149) (6,733) +€416m
TOTAL (4,435) (3,216) +€1,219m
(a) Including €780 million related to the sale by Colas of its stake in Cofiroute
(b) After reclassification of net cash for €67 million at Eurosport International to held-for-sale operations
(c) Including €259 million related to the sale of the additional 31% stake in Eurosport International
Contribution to net capital expenditure by business segment
(€ million)
2013 restated
2014 Change
(€m)
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businesses
TF1
Bouygues Telecom
Holding company and other
+€13m
+€3m
+€167m
+€183m
-€4m
-€55m
=
TOTAL excluding impact of 4G frequencies
Impact of 4G frequencies
TOTAL
+€124m
-€33m
+€91m
(a) Excluding capitalised interest related to 4G frequencies for €33 million at Group level (o/w €13 million at Bouygues Telecom level and
€20 million at Holding company level)
10/11
Contribution to free cash flowa
by business segment
Before change in working capital requirement
(€ million)
2013
restated 2014
Change
(€m)
Bouygues Construction Bouygues Immobilier Colas
Sub-total of construction businesses
TF1
Bouygues Telecom
Holding company and other
-€132m
-€26m
-€224m
-€382m
-€97m
+€114m
-€56m
TOTAL 818b 397 -€421m
(a) Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure
(b) Excluding capitalised interest related to 4G frequencies for €33 million at Group level (o/w €13 million at Bouygues Telecom level and
€20 million at Holding company level)
11/11
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