La bourse est fermée
  • CAC 40

    5 598,18
    +31,39 (+0,56 %)
     
  • Euro Stoxx 50

    3 527,79
    +16,85 (+0,48 %)
     
  • Dow Jones

    29 910,37
    +37,90 (+0,13 %)
     
  • EUR/USD

    1,1963
    +0,0050 (+0,42 %)
     
  • Gold future

    1 781,90
    -23,60 (-1,31 %)
     
  • BTC-EUR

    14 171,52
    +129,93 (+0,93 %)
     
  • CMC Crypto 200

    331,63
    -5,87 (-1,74 %)
     
  • Pétrole WTI

    45,53
    -0,18 (-0,39 %)
     
  • DAX

    13 335,68
    +49,11 (+0,37 %)
     
  • FTSE 100

    6 367,58
    +4,65 (+0,07 %)
     
  • Nasdaq

    12 205,85
    +111,44 (+0,92 %)
     
  • S&P 500

    3 638,35
    +8,70 (+0,24 %)
     
  • Nikkei 225

    26 644,71
    +107,40 (+0,40 %)
     
  • HANG SENG

    26 894,68
    +75,23 (+0,28 %)
     
  • GBP/USD

    1,3303
    -0,0053 (-0,40 %)
     

BOUYGUES: Nine-month 2020 results

BOUYGUES
·31 min de lecture

PRESS RELEASE – PARIS, 19/11/2020

Nine-month 2020 results

  • GROUP

    • Very good Q3 2020

      • Current operating profit: €813 million, up 22% vs Q3 2019

      • Current operating margin: 8%, up 1.5 pts vs Q3 2019

    • Robust financial situation and high liquidity

    • Outlook revised upwards for H2 2020

  • CONSTRUCTION BUSINESSES

    • Backlog at a very high level

    • Return to normal levels of activity in most countries

    • Significantly positive current operating profit in Q3 2020: €570 million vs current operating loss of €437 million in H1 2020

  • TF1

    • Very good performance of the broadcasting segment in Q3 2020

  • BOUYGUES TELECOM

    • Good commercial performance

    • Sales from services and EBITDA after Leases both up 7% year-on-year through the first nine months

    • Free cash flow objective of around €250 million confirmed for 2020

KEY FIGURES (€ million)

9-month 2019

9-month 2020

Change

Q3 2019

Q3
2020

Change

Sales

27,601

24,948

-10%a

10,155

10,190

0%

Current operating profit

1,118

681

-€437m

665

813

+€148m

Current operating margin

4.1%

2.7%

-1.4 pts

6.5%

8%

+1.5 pts

Operating profit

1,168b

636c

-€532m

673

812

+€139m

Net profit attributable to the Group

848

283

-€565m

623

527

-€96m

Net surplus cash (+)/ net debt (-)

(4,643)

(3,661)

+€982m

(a) Down 9% like-for-like and at constant exchange rates
(b) Including net non-current income of €50m
(c) Including net non-current charges of €45m

The Group’s results in the first nine months of 2020 reflect a significant improvement in activity and profitability in the third quarter, after a first half substantially impacted by the crisis linked to the Covid-19 pandemic.

  • Sales were €24.9 billion, down 10% year-on-year for the first nine months. They improved considerably in the third quarter (up 1%1 after being down year-on-year 8%1 in first-quarter 2020 and down 21%1 in second-quarter 2020). This performance was driven by a catch-up of activity in the construction businesses and in advertiser spending at TF1, as well as by sustained growth in sales from services at Bouygues Telecom.

  • Current operating profit in the first nine months of 2020 was €681 million versus a current operating loss of €132 million in first-half 2020, and the current operating margin was 2.7% versus -0.9% in first-half 2020.

  • Net profit attributable to the Group recovered significantly to reach €283 million in the first nine months of 2020, compared to a first-half net loss of €244 million. This figure included a contribution of €51 million from Alstom, versus €238 million in the first nine months of 2019.

Group profitability improved substantially in third-quarter 2020 and was better than expected
The Group reported current operating profit of €813 million, up €148 million (+22%) from third-quarter 2019. The current operating margin was 8%, up 1.5 points over the period. This performance reflected:

  • A catch-up of activity in the construction businesses, mainly in France, as well as savings measures and compensations linked to worksites shutdown in the second quarter 2020;

  • A return in advertiser spending at TF1, combined with savings on programming costs;

  • Robust growth in sales and EBITDA after Leases at Bouygues Telecom.

The Group benefits from a high level of liquidity and a particularly robust financial structure

  • Available cash reached €10.1 billion at end-September 2020, with €2.4 billion in cash and €7.7 billion in unused medium- and long-term credit facilities, of which €7.1 billion contain no financial covenants.

  • Net debt was €3.7 billion at end-September 2020, €982 million less than at end-September 2019. It does not yet include the sale of 11 million Alstom shares for €450 million, the acquisition of EIT, expected to be closed by early 2021, and the first installment of €90 million for 5G frequencies2.

  • Net gearing3 was 32% versus 41% at end-September 2019.

OUTLOOK

In some countries where the Group operates, a deteriorating public-health situation caused by Covid-19 has resulted in the reintroduction of lockdown measures, making ongoing adjustments necessary. To date, the business segments are continuing their operational activities. The outlook given below assumes that there will be no further deterioration due to the health crisis.

The very good third-quarter 2020 results confirm the Group’s return to significant profitability, allowing the upgrade of the outlook for the second half of 2020.
The Group now expects the current operating margin in second-half 2020 to be slightly higher than in second-half 2019. As a reminder, the Group was expecting significant profitability in the second half of 2020, although without reaching the particularly high levels of the second half of 2019.

Bouygues Telecom is raising its guidance for sales from services and maintaining its annual free cash flow objective, therefore confirming its decision to maintain a high level of investment to strengthen the quality of its networks.
Its objectives for 2020 are:

  • Growth in sales from services estimated between 5% and 6% (versus around 4% previously), despite the sharp decline in roaming revenues due to Covid-19;

  • Gross capex of €1.25 billion (including expenditures necessary for the integration of EIT but excluding the acquisition of 5G frequencies);

  • Free cash flow of around €250 million.


Given the ongoing uncertainty of the evolution of the Covid-19 pandemic, TF1 has not set new guidance for 2020.

The Group will hold its Climate Markets Day on 16 December 2020, during which it will issue, for each of its business segments, a 2030 greenhouse gas emissions reduction target compatible with the Paris Agreement (limiting global warming to 1.5°C), together with action plans.

DETAILED ANALYSIS BY SECTOR OF ACTIVITY

CONSTRUCTION BUSINESSES

The backlog in the construction businesses reached the very high level of €33.5 billion at end-September 2020, up 3%4 year-on-year and close to the record level of September 2018 (€33.8 billion), providing good visibility on future activity.

In France, the backlog was slightly down, by 1%5, to €13.9 billion, impacted by Covid-19 and municipal elections.

  • The backlog at Bouygues Construction was stable at €8.5 billion.

  • The slight decrease of 1% in the backlog at Colas reflected sustained growth in the Rail sector, which almost entirely offsets an 8% decline in the Roads activities in mainland France. This decrease is related to the slow restart in bids and contracts despite government measures to support local authorities.

  • The 3% decrease in the backlog at Bouygues Immobilier was explained by lower reservations due to lower supply, affected by a slower-than-expected resumption of the issuance of building permits. Individual buyers have also been hit by tighter terms for home loans. However, the decrease has been mitigated by the block sale of 1,749 lots to CDC Habitat (341 lots in third-quarter 2020).

Internationally, the construction businesses’ backlog was up 6%6 year-on-year to €19.6 billion at end‑September 2020, boosted by an increase in the backlogs of Bouygues Construction and Colas of 7% and 4% respectively, versus end-September 2019. This good commercial performance was driven by Civil Works (contract extensions in Australia and the United Kingdom in particular), Energies & Services, and Rail (including the first urban track contract in Canada won by Colas). International business represented 62% of the combined backlog of Bouygues Construction and Colas at end-September 2020, versus 61% a year earlier.

While they were hit hard by the Covid-19 pandemic in first-half 2020, the construction businesses returned to profitability over the first nine months of 2020.

Sales were €18.9 billion in the first nine months of 2020, down 12% year-on-year. Activity rebounded strongly in the third quarter compared to the first half of the year (down 1% in third-quarter 2020 compared to third-quarter 2019 versus down 19% in first-half 2020 compared to first-half 2019), boosted by both a catch-up in activity during the summer in France and a return to normal levels of activity in most countries.

The construction businesses reported current operating profit of €133 million in the first nine months of 2020, versus a current operating loss of €437 million in first-half 2020. The operating margin of the construction businesses turned positive at 0.7% versus -4% in the first half. The improvement was due to strong activity in third-quarter resulting in better fixed costs dilution, as well as cost-saving measures taken by the business segments, and compensations for worksites shutdown in second-quarter 2020.

Nine-month 2020 operating profit of €72 million included non-current charges of €61 million at Colas related to the reorganization of the Roads activities in France and the continued dismantling of the Dunkirk site, versus non-current charges of €10 million in the first nine months of 2019.

TF1

TF1’s results in the first nine months of the year included both the effects of the Covid-19 pandemic during the first half and the sharp upturn in the broadcasting activity in third-quarter.

Sales in the first nine months of the year were €1,361 million, down 16% year-on-year. Advertising revenue rose 7.5% in third-quarter 2020 compared to third-quarter 2019, with a 16‑minute7 year-on-year increase in TV viewing time and a rebound in advertiser spending in several sectors.

Current operating profit in the first nine months of 2020 was €126 million, down €58 million year-on-year, versus a decrease of €95 million in first-half 2020 compared to first-half 2019. This improvement reflected higher third-quarter sales and additional savings, notably on programming costs (€138 million over the first nine months of 2020, of which €31 million in third-quarter).

BOUYGUES TELECOM

Bouygues Telecom continued its growth over the first nine months of 2020.

The company had 12 million mobile plan customers excluding MtoM at end-September 2020, an increase of 455,000 new customers since the end of 2019, of which 181,000 were in the third quarter alone.
Bouygues Telecom had 1.4 million FTTH customers at end-September 2020, with 378,000 new adds since the end of 2019, of which 169,000 were in the third quarter. The FTTH penetration rate continued to rise to 34% versus 22% a year earlier. The company had a total of 4.1 million fixed customers at end-September 2020.

The roll-out of Bouygues Telecom’s FTTH network is accelerating with 15.8 million FTTH premises marketed at end-September 2020 versus 11.8 million at end-2019. The company is benefiting from its partnerships with CityFast in Very Dense Area and with Vauban Infrastructure Partners in Medium Dense Area. In PIN (Public Initiative Networks) area, the company decided to significantly increase its number of premises marketed. As a result, Bouygues Telecom raises its target to 27 million premises marketed by end-2022 versus 22 million previously announced.

Sales in the first nine months of 2020 were €4,675 million, up 6%, driven by 7% growth in sales from services despite a €63-million8 fall in roaming over the period. This reflects growth in both the mobile and fixed customer base and a rise in ABPU. Mobile ABPU, restated for the impact of roaming, rose
€0.4 year-on-year to €20.3 per customer per month9, while fixed ABPU rose €1.5 year-on-year to €28.1 per customer per month. Other sales were up slightly by 1% in the first nine months of 2020 versus the first nine months of 2019, following the resumption of network roll-out and the sales of handsets after the end of the first lockdown.
Sales from services increased 5% in third-quarter 2020 versus third-quarter 2019, sustained by strong growth in sales from fixed services, up 10%, and higher sales from mobile services, up 3%, despite the negative impact of roaming.

EBITDA after Leases was up €73 million year-on-year at €1,123 million, a rise of 7%. It included non-recurrent charges of €20 million due to brand repositioning and related advertising campaigns in first-quarter 2020, plus €20 million of Covid-19-related costs in first-half 2020. Despite the fall in roaming, the EBITDA after Leases margin was stable versus the first nine months of 2019 at 30.9%. Restated for the impact of roaming, the EBITDA after Leases margin was 31.9%8.

Current operating profit in the first nine months of 2020 was €444 million, up €39 million year-on-year. Operating profit was down slightly by €5 million year-on-year to €460 million due to lower non-current income (€16 million in the first nine months of 2020 versus €60 million a year earlier, mainly related to fewer disposals of mobile sites).

Gross capex was €837 million in the first nine months of 2020, up €103 million year-on-year, linked to the strategy of enhancing network quality. Disposals over the same period amounted to €222 million, much of which (€185 million) was related to the sale of FTTH premises to SDAIF in first-half 2020.

Bouygues Telecom participated in the 5G auction in September 2020, acquiring a 70 MHz block of 3.5 GHz spectrum which doubled its portfolio of frequencies for a reasonable price of €602 million. As a result, Bouygues Telecom now has nearly a quarter of the available spectrum in France.
True to its pragmatic approach, Bouygues Telecom will roll out its 5G network gradually in line with benefits to customers which will materialize in two main stages. In the first stage, the capacity will increase to maintain good service quality in very dense areas where data consumption is very intense (+40% a year8). In the second stage, 5G will facilitate new services for BtoC and especially for BtoB customers, thanks to its new features (low latency, better bandwidth, ability to connect many objects, etc.).
To roll-out its 5G network, Bouygues Telecom has decided simultaneously to install new antennas, using the newly acquired 3.5 GHz frequency band, and to gradually migrate existing 4G frequency bands to 5G.
At the same time, the company will continue to densify its network in terms of both capacity and coverage, especially in very dense areas which is necessary for both 5G and 4G. The goal is to have over 28,000 sites by 2023.
Bouygues Telecom will open its 5G network for users on 1 December 2020, with the objective of achieving national coverage within a year.

Regarding the acquisition of EIT, employee representative bodies have been consulted and the French Competition Authority has been notified. Bouygues Telecom is confident of closing the transaction by early 2021.

ALSTOM

Alstom’s contribution to Bouygues' net profit in the first nine months of 2020 was €51 million, versus a contribution of €238 million in the first nine months of 2019. The contribution in the first nine months of 2019 included a net capital gain of €172 million on Bouygues' sale of 13% of Alstom’s share capital on 12 September 2019.

The €87 million net capital gain on Bouygues’ sale of 11 million Alstom shares, representing 4.8% of the share capital, following settlement on 3 November of the forward sale transaction with BNP Paribas, was not recorded in the financial statements for the first nine months of 2020. The capital gain will be recognized in fourth-quarter 2020.

In addition, on 17 November, Bouygues announced the sale of a portion of its preferential subscription rights to participate in the Alstom capital increase, which was announced on 16 November 2020.
The proceeds will be fully reinvested by Bouygues to fund the exercise of its remaining Alstom preferential subscription rights, therefore limiting the dilutive effect. This transaction confirms Bouygues’ support for Alstom’s strategy and for the contemplated acquisition of Bombardier Transportation, without committing additional capital.
It will result in the recognition of a net dilution profit of around €30 million that will be booked to Bouygues’ fourth quarter 2020 results. As part of this transaction, Bouygues has made the commitment to keep its Alstom shares until 7 March 2021.

Following this capital increase, Bouygues will retain a stake of around 8% in Alstom.

FINANCIAL SITUATION

During the first nine months of 2020, Bouygues’ goal has been to secure and strengthen its cash position, and more broadly, its financial resources.

It renewed its medium- and long-term credit facilities as they expired, without financial covenants. It also successfully completed a €1-billion bond issue in April, and in July redeemed a bond issue in the same amount that had matured. At 30 September 2020, the average maturity of the Group’s bonds is 5.4 years and the average coupon on the bonds is 2.93%. The debt maturity schedule is evenly spread.

The Group had €2.4 billion in cash at end-September 2020. Unused medium- and long-term credit facilities amounted to €7.7 billion, of which €7.1 billion contained no financial covenants.
Total available cash was €10.1 billion at end-September 2020 versus €9.9 billion at end-September 2019.

Net debt at 30 September 2020 was €3.7 billion, compared to €4.6 billion at the end of September 2019 and compared to €2.2 billion at the end of December 2019. In the first nine months of 2020, the very concerted effort by the business segments in dealing with the health crisis resulted in:
- a limited €106 million decline in the Group’s free cash flow, which reached €541 million (compared to €647 million excluding Alstom's dividends in the first nine months of 2019), in a context where, over the same period, current operating profit declined by €437 million;
- an approximate €1 billion reduction in the consumption of WCR related to operating activities.

Net debt at 30 September 2020 does not include Bouygues Telecom’s acquisition of EIT, the first installment related to the 5G auction (€90 million) and the proceeds of the partial sale of 11 million Alstom shares (€450 million).

GOVERNANCE

The Group has decided to make the following senior executive appointments at Bouygues Immobilier and Bouygues Construction.

From 7 December 2020, Bernard Mounier, currently Deputy CEO of Bouygues Construction with responsibility for Bouygues Bâtiment France Europe, will join Bouygues Immobilier alongside Pascal Minault, Chairman of Bouygues Immobilier, in order to prepare to succeed him. Bouygues Immobilier’s Board of Directors will meet at the appropriate time to appoint him as Chairman as of 1 March 2021.

On 1 April 2021, Pascal Minault will join Bouygues Construction alongside Philippe Bonnave in order to prepare to succeed him. Bouygues Construction’s Board of Directors will then be asked to appoint Pascal Minault as CEO of Bouygues Construction on 1 July 2021, then as Chairman and CEO at its meeting in August. Philippe Bonnave will continue to serve as Chairman of Bouygues Construction between 1 July and the Board meeting in August.

These transition periods will enable Bernard Mounier and Pascal Minault to prepare to assume their new responsibilities in the best possible conditions.

FINANCIAL CALENDAR

  • 16 December 2020: Climate Markets Day (2.30pm CET)

  • 18 February 2021: Full-year 2020 results (7.30am CET)


The financial statements have been subject to a limited review by the statutory auditors
and the corresponding report has been issued.
You can find the full financial statements and notes to the financial statements on www.bouygues.com/finance/results.

The results presentation conference call for analysts will start at 9am (CET) on 19 November 2020.
Details on how to connect are available on www.bouygues.com.
The results presentation will be available before the conference call starts on
www.bouygues.com/finance/investors presentations.


ABOUT BOUYGUES

Bouygues is a diversified services group operating in over 90 countries with 130,500 employees all working to make life better every day. Its business activities in construction (Bouygues Construction, Bouygues Immobilier, Colas) media (TF1) and telecoms (Bouygues Telecom) are able to drive growth since they all satisfy constantly changing and essential needs.


INVESTORS AND ANALYSTS CONTACT:
investors@bouygues.com • Tel.: +33 (0)1 44 20 10 79

PRESS CONTACT:
presse@bouygues.com • Tel.: +33 (0)1 44 20 12 01


BOUYGUES SA • 32 avenue Hoche • 75378 Paris CEDEX 08 • www.bouygues.com


NINE-MONTH 2020 BUSINESS ACTIVITY

BACKLOG
AT THE CONSTRUCTION BUSINESSES
(€ million)

End-September

2019

2020

Change

Bouygues Construction

21,160

22,063

+4%

Bouygues Immobilier

2,245

2,192

-2%

Colas

9,084

9,274

+2%

Total

32,489

33,529

+3%


BOUYGUES CONSTRUCTION
ORDER INTAKE
(€ million)

9-month

2019

2020

Change

France

3,550

3,185

-10%

International

4,512

5,756

+28%

Total

8,062

8,941

+11%


BOUYGUES IMMOBILIER
RESERVATIONS
(€ million)

9-month

2019

2020

Change

Residential property

1,408

1,177

-16%

Commercial property

44

121

Nm

Total

1,452

1,298

-11%


COLAS
BACKLOG
(€ million)

End-September

2019

2020

Change

Mainland France

3,292

3,260

-1%

International and French overseas territories

5,792

6,014

+4%

Total

9,084

9,274

+2%


TF1
AUDIENCE SHAREa

End-September

2019

2020

Change

Total

32.1%

31.8%

-0.3 pts

(a) Source: Médiamétrie – women under 50 who are purchasing decision-makers


BOUYGUES TELECOM
CUSTOMER BASE (‘000)

End-Dec
2019

End-Sept
2020

Change

Mobile customer base excl. MtoM

11,958

12,336

+378

Mobile plan base excl. MtoM

11,543

11,999

+455

Total mobile customers

17,800

18,450

+650

Total fixed customers

3,916

4,053

+137


9-MONTH 2020 FINANCIAL PERFORMANCE

CONDENSED CONSOLIDATED INCOME STATEMENT (€ million)

9-month 2019

9-month 2020

Change

Sales

27,601

24,948

-10%a

Current operating profit

1,118

681

-€437m

Other operating income and expenses

50b

(45)c

-€95m

Operating profit

1,168

636

-€532m

Cost of net debt

(162)

(132)

+€30m

Interest expense on lease obligations

(42)

(40)

+€2m

Other financial income and expenses

19

(19)

-€38m

Income tax

(325)

(203)

+€122m

Share of net profits of joint ventures and associates

286

109

-€177m

o/w Alstom

238

51

-€187m

Net profit from continuing operations

944

351

-€593m

Net profit attributable to non-controlling interests

(96)

(68)

+€28m

Net profit attributable to the Group

848

283

-€565m

(a) Down 9% like-for-like and at constant exchange rates
(b) Including non-current charges of €10m at Bouygues Construction related to restructuring costs and non-current income of €60m at Bouygues Telecom mainly related to the disposal of mobile sites

(c) Including non-current charges of €61m at Colas related to the reorganization of the roads activities in France and the continued dismantling of the Dunkirk site and non-current income of €16m at Bouygues Telecom mainly related to the disposal of mobile sites

CALCULATION OF EBITDA AFTER LEASESa (€ million)

9-month 2019

9-month 2020

Change

Current operating profit

1,118

681

-€437m

Interest expense on lease obligations

(42)

(40)

+€2m

Net depreciation and amortization expense on property, plant and equipment and intangible assets

1,278

1,342

+€64m

Charges to provisions and impairment losses,
net of reversals due to utilization

171

119

-€52m

Reversals of unutilized provisions and impairment losses and other

(173)

(194)

-€21m

EBITDA after Leasesa

2,352

1,908

-€444m

(a) See glossary for definitions


SALES BY SECTOR OF ACTIVITY (€ million)

9-month 2019

9-month 2020

Change

Forex effect

Scope effect

lfl &

constant fxc

Construction businessesa

21,583

18,928

-12%

+0.1%

+0.4%

-12%

o/w Bouygues Construction

9,899

8,611

-13%

-0.4%

0.0%

-13%

o/w Bouygues Immobilier

1,610

1,323

-18%

+0.1%

0.0%

-18%

o/w Colas

10,182

9,085

-11%

+0.5%

+0.8%

-9%

TF1

1,615

1,361

-16%

0.0%

-0.1%

-16%

Bouygues Telecom

4,426

4,675

+6%

0.0%

-0.2%

+6%

Bouygues SA and other

145

137

Nm

-

-

Nm

Intra-Group eliminationsb

(276)

(244)

Nm

-

-

Nm

Group sales

27,601

24,948

-10%

0.0%

+0.3%

-9%

o/w France

16,043

14,306

-11%

0.0%

+0.7%

-10%

o/w international

11,558

10,642

-8%

+0.1%

-0.2%

-8%

(a) Total of the sales contributions (after eliminations within the construction businesses)
(b) Including intra-Group eliminations of the construction businesses
(c) Like-for-like and at constant exchange rates

CONTRIBUTION TO GROUP EBITDA AFTER LEASES
BY SECTOR OF ACTIVITY
(€ million)

9-month 2019

9-month 2020

Change

Construction businesses

980

546

-€434m

o/w Bouygues Construction

395

79

-€316m

o/w Bouygues Immobilier

32

(5)

-€37m

o/w Colas

553

472

-€81m

TF1

328

253

-€75m

Bouygues Telecom

1,050

1,123

+€73m

Bouygues SA and other

(6)

(14)

-€8m

Group EBITDA after Leases

2,352

1,908

-€444m


CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT/(LOSS) BY SECTOR OF ACTIVITY (€ million)

9-month 2019

9-month 2020

Change

Construction businesses

545

133

-€412m

o/w Bouygues Construction

280

19

-€261m

o/w Bouygues Immobilier

42

(10)

-€52m

o/w Colas

223

124

-€99m

TF1

184

126

-€58m

Bouygues Telecom

405

444

+€39m

Bouygues SA and other

(16)

(22)

-€6m

Group current operating profit

1,118

681

-€437m


CONTRIBUTION TO GROUP OPERATING PROFIT/(LOSS) BY SECTOR OF ACTIVITY (€ million)

9-month 2019

9-month 2020

Change

Construction businesses

535

72

-€463m

o/w Bouygues Construction

270

19

-€251m

o/w Bouygues Immobilier

42

(10)

-€52m

o/w Colas

223

63

-€160m

TF1

184

126

-€58m

Bouygues Telecom

465

460

-€5m

Bouygues SA and other

(16)

(22)

-€6m

Group operating profit

1,168a

636b

-€532m

(a) Including non-current charges of €10m at Bouygues Construction related to restructuring costs and non-current income of €60m at Bouygues Telecom mainly related to the capital gain on the sale of mobile sites

(b) Including non-current charges of €61m at Colas related to the reorganization of the roads activities in France and the continued dismantling of the Dunkirk site and non-current income of €16m at Bouygues Telecom mainly related to the disposal of mobile sites

CONTRIBUTION TO NET PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY (€ million)

9-month
2019

9-month
2020

Change

Construction businesses

381

6

-€375m

o/w Bouygues Construction

226

5

-€221m

o/w Bouygues Immobilier

20

(18)

-€38m

o/w Colas

135

19

-€116m

TF1

52

34

-€18m

Bouygues Telecom

251

253

+€2m

Alstom

238

51

-€187m

Bouygues SA and other

(74)

(61)

+€13m

Net profit attributable to the Group

848

283

-€565m


NET SURPLUS CASH (+)/NET DEBT (-)
BY BUSINESS SEGMENT
(€ million)

End-Dec
2019

End-Sept 2020

Change

Bouygues Construction

3,113

2,297

-€816m

Bouygues Immobilier

(279)

(434)

-€155m

Colas

(367)

(838)

-€471m

TF1

(127)

(71)

+€56m

Bouygues Telecom

(1,454)

(1,659)

-€205m

Bouygues SA and other

(3,108)

(2,956)

+€152m

Net surplus cash (+)/Net debt (-)

(2,222)

(3,661)

-€1,439m

Current and non-current lease obligations

(1,686)

(1,592)

+€94m

(a) See glossary for definitions


CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY (€ million)

9-month 2019

9-month 2020

Change

Construction businesses

304

177

-€127m

o/w Bouygues Construction

149

67

-€82m

o/w Bouygues Immobilier

7

3

-€4m

o/w Colas

148

107

-€41m

TF1

161

169

+€8m

Bouygues Telecom

638

615

-€23m

Bouygues SA and other

2

2

€0m

Group net capital expenditure

1,105

963

-€142m




CONTRIBUTION TO GROUP FREE CASH FLOWa
BY SECTOR OF ACTIVITY (€ million)

9-month
2019

9-month
2020

Change

Construction businesses

400

172

-€228m

o/w Bouygues Construction

147

(24)

-€171m

o/w Bouygues Immobilier

(20)

(18)

+€2m

o/w Colas

273

214

-€59m

TF1

117

47

-€70m

Bouygues Telecom

205

377

+€172m

Bouygues SA and other

266b

(55)

-€321m

Group free cash flowa

988

541

-€447m

Excluding €341m dividend from Alstom

647

541

-€106m

(a) See glossary for definitions
(b) Including €341m dividend from Alstom

THIRD-QUARTER 2020 FINANCIAL PERFORMANCE

KEY FIGURES (€ million)

Q3 2020

Change vs
Q3 2019

Group sales

10,190

0%

Group current operating profit

813

+€148m

o/w Construction businesses

570

+€97m

o/w Bouygues Construction

114

+€13m

o/w Bouygues Immobilier

28

+€15m

o/w Colas

428

+€69m

o/w TF1

58

+€37m

o/w Bouygues Telecom

191

+€16m

Current operating margin

8%

+1.5 pts

Group operating profit

812

+€139m

Net profit attributable to the Group

527

-€96m


AS A REMINDER: ESTIMATED IMPACT OF COVID-19 IN FIRST-HALF 2020

ESTIMATED IMPACT OF COVID-19
IN FIRST-HALF 2020 (€ million)

Sales

Current operating profit

Construction businesses

-2,460

-530

o/w Bouygues Construction

-1,250

-290

o/w Bouygues Immobilier

-400

-50

o/w Colas

-810

-190

TF1

-250

-100

Bouygues Telecom

-70

-20

The estimated impact by business segment shown above is based on first-half 2019 reported figures or the 2020 forecast.

Due to the resumption of the Group’s activities, it is no longer possible in the third quarter to quantify separately the impact of Covid-19 on the Group’s year-on-year performance.


GLOSSARY

4G consumption: data consumed on 4G cellular networks, excluding Wi-Fi.

4G users: customers who have used the 4G network during the last three months (Arcep definition).

ABPU (Average Billing Per User):
- In the mobile segment, it is equal to the total of mobile sales billed to customers (BtoC and BtoB) divided by the average number of customers over the period. It excludes MtoM SIM cards and free SIM cards.
- In the fixed segment, it is equal to the total of fixed sales billed to customers (excluding BtoB) divided by the average number of customers over the period.

BtoB (business to business): when one business makes a commercial transaction with another.

Backlog (Bouygues Construction, Colas): the amount of work still to be done on projects for which a firm order has been taken, i.e. the contract has been signed and has taken effect (after notice to proceed has been issued and suspensory clauses have been lifted).

Backlog (Bouygues Immobilier): sales outstanding from notarized sales plus total sales from signed reservations that have still to be notarized.
Under IFRS 11, Bouygues Immobilier’s backlog does not include sales from reservations taken via companies accounted for by the equity method (co-promotion companies where there is joint control).

Construction businesses: Bouygues Construction, Bouygues Immobilier and Colas.

EBITDA after Leases: current operating profit after taking account of the interest expense on lease obligations, before (i) net depreciation and amortization expense on property, plant and equipment and intangible assets, (ii) net charges to provisions and impairment losses, and (iii) effects of acquisitions of control or losses of control. Those effects relate to the impact of remeasuring previously-held interests or retained interests.

EBITDA margin after Leases (Bouygues Telecom): EBITDA after Leases as a proportion of sales from services.

Free cash flow: net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations. It is calculated before changes in working capital requirements (WCR) related to operating activities and excluding 5G frequencies.

Free cash flow after WCR: net cash flow (determined after (i) cost of net debt, (ii) interest expense on lease obligations and (iii) income taxes paid), minus net capital expenditure and repayments of lease obligations, and after changes in working capital requirements (WCR) related to operating activities.
It is calculated after changes in working capital requirements (WCR) related to operating activities and excluding 5G frequencies.

Fixed churn: the total number of cancellations in a given month, divided by the total number of subscribers at the end of the previous month.

FTTH (Fiber to the Home): optical fiber from the central office (where the operator’s transmission equipment is installed) all the way to homes or business premises (Arcep definition).

FTTH penetration rate: the FTTH share of the total fixed subscriber base (the number of FTTH customers divided by the total number of fixed customers)

FTTH premises secured: the horizontal deployed, being deployed or ordered up to the concentration point.

FTTH premises marketed: the connectable sockets, i.e. the horizontal and vertical deployed and connected via the concentration point.

Growth in sales like-for-like and at constant exchange rates:
- at constant exchange rates: change after translating foreign-currency sales for the current period at the
exchange rates for the comparative period;
- on a like-for-like basis: change in sales for the periods compared, adjusted as follows:

  • for acquisitions, by deducting from the current period those sales of the acquired entity that have no equivalent during the comparative period;

  • for divestments, by deducting from the comparative period those sales of the divested entity that have no equivalent during the current period.

Mobile churn: the total number of cancellations in a given month, divided by the total number of subscribers at the end of the previous month.

MtoM: machine to machine communication. This refers to direct communication between machines or smart devices or between smart devices and people via an information system using mobile communications networks, generally without human intervention.

Net surplus cash/(net debt): the aggregate of cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments. Net surplus cash/(net debt) does not include non-current and current lease obligations. A positive figure represents net surplus cash and a negative figure represents net debt. The main components of change in net debt are presented in Note 7 to the consolidated financial statements at 30 September 2020, available at bouygues.com.

Order intake (Bouygues Construction, Colas): a project is included under order intake when the contract has been signed and has taken effect (the notice to proceed has been issued and all suspensory clauses have been lifted) and the financing has been arranged. The amount recorded corresponds to the sales the project will generate.

PIN: Public-Initiative Network.

Reservations by value (Bouygues Immobilier): the € amount of the value of properties reserved over a given
period.
- Residential properties: the sum of the value of unit and block reservation contracts signed by customers and
approved by Bouygues Immobilier, minus registered cancellations.
- Commercial properties: these are registered as reservations on notarized sale.
For co-promotion companies:

  • if Bouygues Immobilier has exclusive control over the co-promotion company (full consolidation), 100% of amounts are included in reservations;

  • if joint control is exercised (the company is accounted for by the equity method), commercial activity is recorded according to the amount of the equity interest in the co-promotion company.

Sales from services (Bouygues Telecom) comprise:
- Sales billed to customers, which include:
- In Mobile:

  • For BtoC customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services.

  • For BtoB customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services, plus sales from business services.

  • Machine-To-Machine (MtoM) sales.

  • Visitor roaming sales.

  • Sales generated with Mobile Virtual Network Operators (MVNOs).

- In Fixed:

  • For BtoC customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire.

  • For BtoB customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire, plus sales from business services.

  • Sales from bulk sales to other fixed line operators.

- Sales from incoming Voice and Texts.
- Spreading of handset subsidies over the projected life of the customer account, required to comply with
IFRS 15.
- Capitalization of connection fee sales, which is then spread over the projected life of the customer account.

Other sales (Bouygues Telecom): difference between Bouygues Telecom’s total sales and sales from services.
It comprises:
- Sales from handsets, accessories and other
- Roaming sales
- Non-telecom services (construction of sites or installation of FTTH lines)
- Co-financing of advertising

Very-high-speed: subscriptions with peak downstream speeds higher or equal to 30 Mbit/s. Includes FTTH, FTTLA, 4G box and VDSL2 subscriptions (Arcep definition).




1 Like-for-like and at constant exchange rates



2 Including the cost of releasing the frequencies



3 Net debt / shareholders’ equity



4 Up 3% at constant exchange rates and excluding principal disposals and acquisitions



5 Down 1% at constant exchange rates and excluding principal disposals and acquisitions



6 Up 6% at constant exchange rates and excluding principal disposals and acquisitions



7 Among individuals aged 4+ (to 3 hours and 18 minutes)



8 Company estimates



9 €19.5 without restatement



Attachment