BOUYGUES (EPA:EN) Bouygues: Full-year 2010 results

Transparency directive : regulatory news

01/03/2011 17:46

Paris, 1 March 2011

                             Bouygues press release

                             Full-year 2010 results

*  Strong commercial performance across the Group

*  Stable sales: EUR31.2 billion
*  Current operating profit: EUR1.8 billion (-5%)
*  Net profit: EUR1.1 billion (-19%)

*  Very sound financial structure with an improvement in net gearing

*  Stable dividend: EUR1.60

Sales were stable in relation to 2009 at EUR31.2 billion (down 3% like-for-like
and at constant exchange rates). Current operating profit amounted to EUR1.8
billion, a drop of 5%. All business areas except Colas posted good operating
results. Net profit of EUR1.1 billion, down 19%, includes a provision of EUR66
million (Bouygues' share) for the restructuring plan announced by Alstom in
October 2010. The financial structure is very sound, with a 5-point improvement
in net gearing to 23% and a high level of free cash flow at EUR1 billion.

Key figures

(EUR million)                            2009    2010     Change
Sales                                   31,353  31,225       =
Current operating profit                 1,855   1,760      -5%
Operating profit                         1,855  1,7911      -3%
Net profit attributable to the Group     1,319   1,071     -19%
Free cash flow                           1,329   1,009     -24%
Net debt(2)                              2,704   2,473   -EUR231m
Net gearing(2)                             28%     23%     -5 pts

(1)Including +EUR31 million of other operating income and expenses, or +EUR83
million at TF1 and -EUR52 million at Colas
(2)End of period

                                 Business areas

Bouygues Construction posted a solid operating performance. Sales amounted to
EUR9,235 million, an overall drop of 3%, or 5% in France and 1% internationally.
The operating margin remained stable on 2009 at 3.4%. Net profit fell 16% to
EUR201 million due to lower interest rates and a higher tax charge.
Commercial results were excellent, especially on international markets. In 2010,
order intakes rose 16% to EUR10.9 billion, while the order book at end-December
2010 reached a record high of EUR14.2 billion, up 18% on end-December 2009. 55%
of projects in the order book are located outside France and 31% in emerging
countries.

Bouygues Immobilier's results show a successful adaptation to market conditions.
Sales amounted to EUR2,418 million, a decrease of 19% (down 7% in residential
property and 48% in commercial property) and exceeded the initial target set in
March 2010 by EUR300 million due to the record level of housing reservations and
notarised deeds of sale in 2010. The operating margin jumped by 1.6 points to
8.4% thanks to the restoration of margins in the residential property segment.
Net profit remained virtually stable at EUR108 million, 2% lower than in 2009.
Bouygues Immobilier consolidated its leading position on the French residential
property market, taking a record 13,734 reservations, an increase of 28%. The
low level of commercial property reservations reflect a market at a cyclical
low. Overall, reservations rose 27% to EUR2,477 million. Boosted by housing
reservations, the order book at 31 December 2010 was up 5% at EUR2,280
million.

Colas reported results in line with the expectations issued on 31 August 2010.
Sales rose 1% to EUR11,661 million, down 1% in France and up 2% internationally.
Like-for-like and at constant exchange rates, sales were down 3%. The current
operating margin fell 1.6 points compared with 2009 to 3.1%, mainly due to
deteriorating conditions in Central Europe. Operating profit fell 42% to EUR313
million, a figure which includes non-current items relating to charges for
former competition-related matters and write-downs of goodwill in Central
Europe. Net profit attributable to the Group amounted to EUR224 million, a drop
of 42%. Colas entered 2011 with a substantial order book, worth EUR6.1 billion,
and should gradually improve its profitability following the implementation of
an action plan in 2010.

TF1 recovered in 2010 as the result of a strategy that is bearing fruit. Sales
rose 11% to EUR2,622 million, driven by a pick-up in advertising spend on the
TF1 channel (up 8%) and by other activities (up 15%). TF1 continued to adapt its
business model and cut costs, achieving recurring savings of EUR32 million in
2010 to give total savings of EUR138 million since 2008. The current operating
margin rose 4.5 points as a result. Operating profit stood at EUR313 million.
This figure includes non-current income of EUR83 million, mainly generated by
the remeasurement of previously-held equity interests following the takeover of
TMC and NT1. Net profit attributable to the Group doubled to EUR228 million.

Bouygues Telecom continued its growth strategy in 2010. Total sales rose 5% to
EUR5,636 million and sales from network were up 4% at EUR5,060 million.
Stripping out the impact of the cut in voice and SMS call termination rates,
sales from network would have risen 14%. Bouygues Telecom was able to offset the
effect of reduced call termination rate differentials and higher taxes, with
EBITDA rising 2% to EUR1,367 million. Net profit fell 6% to EUR444 million,
reflecting higher amortisation charges mainly linked to commercial success in
the fixed broadband business.
842,000 new mobile contract customers joined Bouygues Telecom in 2010,
representing 23% of net market growth(1). Bouygues Telecom had a total of
11,084,000 customers at 31 December 2010, 79% of them on a call plan, up 2.5
points over one year.
Strong growth continued in the fixed broadband business, with 154,000 new
customers(2) signing up in the fourth quarter of 2010 and 494,000 over the year
as a whole. Bouygues Telecom had 808,000 fixed broadband customers at 31
December 2010.

(1) Arcep data
(2) The number of fixed broadband customers includes xDSL and cable
subscriptions

Alstom

Alstom contributed EUR235 million to Bouygues' net profit, down 32%. The figure
includes a provision of EUR66 million (Bouygues' share) for the restructuring
plan announced in October 2010. Alstom's commercial performance rebounded in the
third quarter of FY2010/2011 as order intakes reached their highest level since
the first quarter of FY2009/2010. Alstom is strengthening its presence in
emerging markets, which accounted for 60% of orders in the third quarter, and
has confirmed an operating margin target of between 7% and 8% for FY2010/2011
and FY2011/2012.

Financial situation

Cash flow of EUR3.2 billion (down 5%) reflects the fall in current operating
profit. As expected net capital expenditure increased, rising 12% to EUR1.4
billion. Free cash flow remained high at EUR1 billion.
The Group had net debt of EUR2.5 billion at year-end, EUR231 million less than
at end-December 2009. Net gearing improved five points to 23%.
Bouygues is rated A- with stable outlook by Standard & Poor's, a rating
unchanged since 2001. The Group bought back 4.8 million Bouygues shares in 2010
at a total cost of EUR155 million.

Dividend

The Board of Directors will ask the Annual General Meeting on 21 April 2011 to
approve the payment of a dividend of EUR1.60 per share, stable on 2009. The
ex-date, record date and payment date have been set at 29 April, 3 May and 4 May
2011 respectively.

Board of Directors

The Board of Directors will ask the next Annual General Meeting to renew the
terms of office of Patricia Barbizet, Hervé Le Bouc, Helman le Pas de Sécheval
and Nonce Paolini.

Outlook

The order book at end-2010 and market prospects enable Bouygues to set a 2011
sales target of EUR31.7 billion, up 2%.

Sales by business area     2010     2011     %
(EUR million)                      target  change

Bouygues Construction     9,235    9,400     +2%
Bouygues Immobilier       2,418    2,440     +1%
Colas                    11,661   11,800     +1%
TF1                       2,622    2,630      =
Bouygues Telecom          5,636    5,730     +2%
Holding company and other   132      120     ns
Intra-Group elimination    (479)    (420)    ns
TOTAL                    31,225   31,700     +2%
   o/w France            21,506   22,000     +2%
   o/w international      9,719    9,700     =

Remuneration of executive directors

In accordance with Afep/Medef recommendations, information on the remuneration
of executive directors and the grant of stock options will be published today on
www.bouygues.com, under Finance/Shareholders, Regulated information.

                               Financial calendar:

        16 May 2011: first-quarter 2011 sales and earnings (5.45pm CET)
               30 August 2011: first-half 2011 results (5.45pm CET)
               31 August 2011: first-half 2011 results presentation

The financial statements have been audited and the statutory auditors have
issued a report certifying them without reserve.
Find the full financial statements and notes to the financial statements on
www.bouygues.com.

The full-year 2010 results presentation to financial analysts will be webcast
live on 2 March 2011 at 11am (CET) on www.bouygues.com.

Press contact:
+33 (0)1 44 20 12 01 - presse@bouygues.com

Investors & analysts contact:
+33 (0)1 44 20 10 79 - investors@bouygues.com

                                 www.bouygues.com

Condensed consolidated                                  2009    2010      %
income statement                                                        change
(EUR million)

Sales                                                  31,353  31,225     =
Current operating profit                                1,855   1,760    -5%
Other operating income and expenses                         0      31(1)  ns
Operating profit                                        1,855   1,791    -3%
Cost of net debt                                         (344)   (330)   -4%
Other financial income and expenses                        25       6     ns
Income tax expense                                       (487)   (482)   -1%

Share of profits and losses from associates               393     278   -29%
Net profit from continuing operations                   1,442   1,263   -12%
Net profit from discontinued or held-for-                  14       0     ns
sale operations
Net profit                                              1,456   1,263   -13%
Minority interests                                       (137)   (192)  +40%
Net profit attributable to the Group                    1,319   1,071   -19%

(1) Other operating income and expenses include:
- TF1: non-current income of EUR83 million mainly generated by the remeasurement
  of the previously-held equity interests following the takeover of TMC and NT1
- Colas: non-current items of -EUR52 million mainly relating to charges for
  former competition-related matters and write-downs of goodwill in Central
  Europe

Fourth-quarter consolidated                Fourth-quarter     %
income statement                           2009      2010   change
(EUR million)
Sales                                      8,185     8,158       =
Current operating profit                     394       432     +10%
Operating profit                             394       393(1)    =
Net profit attributable to the Group         295       148     -50%

(1)Including -EUR39 million of other operating income and expenses, or -EUR13
million at TF1 and -EUR26 million at Colas

Condensed consolidated               End-2009       End-2010
balance sheet
(EUR million)

Non-current assets                    17,700          18,620
Current assets                        16,235          16,966

TOTAL ASSETS                          33,935          35,586

Shareholders' equity                   9,726          10,607
Non-current liabilities                8,250           8,732
Current liabilities                   15,959          16,247

TOTAL LIABILITIES                     33,935          35,586

Net debt                               2,704           2,473

Sales                                  2009     2010     %         %
by business area                                       change    change
(EUR million)                                                 like-for-like
                                                                 and at
                                                                constant
                                                                exchange
                                                                  rates
Bouygues Construction                  9,546    9,235   -3%        -5%
Bouygues Immobilier                    2,989    2,418  -19%       -20%
Colas                                 11,581   11,661   +1%        -3%
TF1                                    2,365    2,622  +11%        +9%
Bouygues Telecom                       5,368    5,636   +5%        +5%
Holding company and other                134      132    ns        ns

Intra-Group elimination                 (630)    (479)   ns        ns

Total                                 31,353   31,225     =        -3%
  o/w France                          21,678   21,506   -1%        -2%
  o/w international                    9,675    9,719     =        -5%

Contribution of business areas to       2009     2010       %
EBITDA                                                   change
(EUR million)
Bouygues Construction                   746       606     -19%
Bouygues Immobilier                     269       184     -32%
Colas                                 1,109       894     -19%
TF1                                     194       319     +64%
Bouygues Telecom                      1,344     1,367      +2%
Holding company and other               (46)      (40)      ns

TOTAL                                 3,616     3,330      -8%

Contribution of business areas to      2009      2010       %
Current operating profit                                  change
(EUR million)
Bouygues Construction                   335       315      -6%
Bouygues Immobilier                     203       204       =
Colas                                   541       365     -33%
TF1                                     101       230       x2
Bouygues Telecom                        730       692      -5%
Holding company and other               (55)      (46)      ns

TOTAL                                 1,855     1,760      -5%

Contribution of business areas to      2009      2010       %
Operating profit                                          change
(EUR million)
Bouygues Construction                   335       315      -6%
Bouygues Immobilier                     203       204       =
Colas                                   541       313     -42%
TF1                                     101       313       x3
Bouygues Telecom                        730       692      -5%
Holding company and other               (55)      (46)      ns

TOTAL                                 1,855     1,791      -3%

Contribution of business areas to      2009      2010       %
Net profit attributable to the Group                     change
(EUR million)
Bouygues Construction                   240       201     -16%
Bouygues Immobilier                     110       108      -2%
Colas                                   374       216     -42%
TF1                                      49        98       x2
Bouygues Telecom                        422       397      -6%
Alstom                                  346       235     -32%
Holding company and other              (222)     (184)     ns

TOTAL                                 1,319     1,071     -19%

Net cash by business area           End-2009    End-2010    Change
(EUR million)                                            (EUR million)

Bouygues Construction                 3,285     2,856      -EUR429m
Bouygues Immobilier                     146       376      +EUR230m
Colas                                   116       (57)     -EUR173m
TF1                                      73        17       -EUR56m
Bouygues Telecom                       (294)     (170)     +EUR124m

Holding company and other            (6,030)   (5,495)     +EUR535m

TOTAL                                (2,704)   (2,473)     +EUR231m

Contribution of business areas to      2009      2010       Change
Cash flow
(EUR million)                                           (EUR million)
Bouygues Construction                   569       509         -EUR60m
Bouygues Immobilier                     181       195         +EUR14m
Colas                                 1,066       814        -EUR252m
TF1                                     186       297        +EUR111m
Bouygues Telecom                      1,340     1,327         -EUR13m
Holding company and other                88       102         +EUR14m

TOTAL                                 3,430     3,244        -EUR186m

Contribution of business areas to      2009      2010         Change
Net capital expenditure
(EUR million)                                               (EUR million)
Bouygues Construction                   142       221         +EUR79m
Bouygues Immobilier                       6         4          -EUR2m
Colas                                   362       474        +EUR112m
TF1                                      70        43         -EUR27m
Bouygues Telecom                        683       680          -EUR3m
Holding company and other                 7         1          -EUR6m

TOTAL                                 1,270     1,423        +EUR153m

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BOUYGUES (EPA:EN) Bouygues: Full-year 2010 results

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