BOUYGUES (EPA:EN) Bouygues: Nine-month 2011 results

Transparency directive : regulatory news

15/11/2011 17:47

Paris, 15 November 2011

Bouygues press release

Nine-month 2011 results

  Sales: EUR23.7 billion (+3%)
  Current operating profit: EUR1,338 million (+1%)
  Good commercial activity and high order book for the Construction businesses
  Very healthy financial structure
  Sales target revised upwards to EUR32.2 billion

The operating performance in the first nine months of 2011 was robust, in
keeping with the first half of 2011 and in line with the 2011 roadmap.

The Bouygues group reported a 3% increase in consolidated sales (up 1%
like-for-like and at constant exchange rates) to EUR23.7 billion. Current
operating profit was up 1% to EUR1 ,338 million. Net profit attributable to the
Group stood at EUR794 million. The change in net profit compared with the first
nine months of 2010 (-EUR129 million) was mainly due to the lower contribution
from Alstom.

The financial structure is very healthy, with net debt stable vs. end-September
2010 and substantial liquidity.

Key figures (EUR million)                 9-month    9-month
                                            2010       2011      Change

Sales                                      23,067     23,719       +3%

Current operating profit                    1,328      1,338       +1%
Operating profit                            1,398(1)   1,376(2)    -2%
Net profit attributable to the Group          923        794      -14%

Net debt(3)                                 3,770      3,808     +EUR38m
Net gearing(3)                                37%        36%      -1 pt

(1)Including EUR70 million of other operating income and expenses, or +EUR96
   million at TF1 and -EUR26 million at Colas
(2)Including EUR38 million of other operating income and expenses at Bouygues
   Telecom
(3)End of period

                                  Business areas

The Construction businesses recorded good commercial activity and improved
profitability. Third-quarter 2011 order intake remained buoyant in an uncertain
economic environment. The order book remained at a high level, despite sales
growth.

Bouygues Construction posted a 4% increase in sales to EUR7,086 million (up 3%
in France and 6% on international markets). The operating margin stood at 3.8%,
reflecting the smooth execution of contracts in progress. Net profit rose 11% to
EUR159 million.
Order intake remained at a high level (EUR8.3 billion over the first nine months
of 2011). An order book of EUR1 5.3 billion (up 7% vs. end-September 2010)
offers Bouygues Construction good visibility on future activity.

Bouygues Immobilier reported a 12% decline in sales to EUR1,548 million (down 1%
in residential property and down 52% in commercial property). While the
commercial property business remained affected by a tough comparison basis, the
pick-up in residential property was confirmed with a third-quarter rise in sales
of 11%, vs. 2% in the second quarter and -14% in the first quarter of 2011. The
operating margin was firm at 8.2% and net profit amounted to EUR78 million.
After a record 2010, residential property reservations remained at a high level
and reached EUR1 ,530 million with sharp third-quarter 2011 growth of 12%.
Overall reservations grew 8% to EUR1,868 million in the first nine months of
2011. The order book was up 20% on end-September 2010 to EUR2.6 billion.

Colas recorded a 4% rise in sales to EUR9,168 million (up 9% in France and down
1% on international markets). As expected, profitability is improving gradually.
Current operating profit came to EUR274 million (up 17%) and the current
operating margin to 3%, up 0.3 points. While operating profit increased 31% to
EUR274 million, net profit advanced 33% to EUR209 million.
Business activity remained strong in the third quarter. Thanks to a good level
of order intake, the order book was up 2% vs. end-September 2010, despite sales
growth.

TF1: strategic decisions pay off

In the first nine months of 2011, TF1's sales came to 1,839 million (up 1%), the
contraction in the TF1 TV channel's advertising revenues being offset by the
rise in the sales of the other activities. The current operating margin
increased to 10.6% (up 3.8 points vs. the first nine months of 2010). Current
operating profit at end-September 2011 rose EUR70 million to EUR195 million. Net
profit attributable to the Group reached EUR125 million in the first nine months
of 2011, a decrease of EUR45 million due to an exceptional item of EUR96 million
in third quarter 2010, related to the takeover of TMC.

Bouygues Telecom continues to expand its fixed line activity and is experiencing
intense competition in the mobile market. Nine-month 2011 results are in line
with expectations

Bouygues Telecom's sales advanced 3% to EUR4,285 million and sales from the
network were up 2% to EUR3,831 million. As expected, EBITDA was negatively
impacted by the cut in mobile termination rate differentials. It came to
EUR1,035 million (-6%). Operating profit amounted to EUR550 million and this
included EUR38 million of non-current income relating to an asset disposal. Net
profit was down 10% to EUR353 million.
In a fiercely competitive mobile market, Bouygues Telecom gained 275,000 new
mobile plan customers in the first nine months of 2011. At end-September 2011,
the total customer base came to 11,217,000, of whom 80.4% were on mobile plans
(a yoy increase of 1.5 points). Moreover, thanks to the strong momentum in the
year to date, the MVNO(1) customer base stood at 1.3 million at the end of third
quarter 2011.
The performances on the broadband market were very good. Bouygues Telecom is
leader in terms of net market growth with 311,000 new customers in the first
nine months of 2011(2). The operator's total fixed broadband customer base stood
at 1,119,000 at 30 September 2011.

(1) An estimate of the MVNO active customer base. Customers who have carried out
    an outgoing operation during the last month.
(2) Encompasses both broadband and very-high-speed subscriptions.

Alstom

Alstom's contribution to Bouygues' net profit came to EUR134 million in the
first nine months of 2011 (vs. EUR239 million for the first nine months of
2010). In third quarter 2011, it improved EUR17 million to a total of EUR40
million.
Confirming the recovery achieved in the second part of FY201 0/11, order intake
grew 45% in the first half of FY2011/12 to EUR10.2 billion. Alstom confirmed its
operating margin target of between 7% and 8% for FY201 1/12.

Financial situation

Cash flow was up slightly to EUR2,483 million. The free cash flow figure(1) of
EUR886 million was almost stable despite the expected increase in net capital
expenditure (EUR997 million, up EUR133 million vs. the first nine months of
2010).
Cash flow generation has kept net debt at the same level as in September 2010
(EUR3.8 billion), before factoring in two major operations in the fourth
quarter, namely the 2.6 GHz frequencies bought by Bouygues Telecom (EUR228
million) and the share repurchase tender offer (EUR1 ,250 million).

(1)Before change in the working capital requirement

Significant events since 30 June 2011

  18 July 2011: Bouygues Telecom launched its new mobile plan "B&YOU".

  27 July 2011: Bouygues Construction started works on a new development on
    the site of the former Laennec hospital in Paris for a total of EUR150
    million.

  28 July 2011: TF1 acquired the 65.7% stake held by Metro International in
    Metro France, bringing its total interest in the latter to 100%.

  30 September 2011: Bouygues Telecom announced the launch of Eden, its new
    simplified range of plans.

  13 October 2011: Colas won a number of contracts in Canada for an overall
    amount of EUR140 million (contract to build a rail intermodal site as well
    as a number of motorway contracts).

  10 October 2011: An Extraordinary General Meeting of shareholders
    authorised the Board of Directors to carry out a reduction in the share
    capital through a share repurchase tender offer for a maximum of 41.7
    million Bouygues shares (11.7% of the share capital), at a price of EUR30
    per share.

  20 October 2011: Colas Rail was awarded metro contracts as part of a
    consortium in Los Teques, Venezuela (EUR96 million) and Kelana Jaya,
    Malaysia (EUR96 million).

Full-year 2011 sales target

Based on the performances of the first nine months of 2011, the sales target for
2011 has been revised up to EUR32.2 billion (+3%).

                                                2011
Sales by                                       terget
business area          2010    Reported  Reported  Reported  Reported in   %
(EUR million)         actual   in March   in May   in August  November
Change

Bouygues
Construction          9,235     9,400     9,600      9,600     9,700      +5%
Bouygues
Immobilier            2,418     2,440     2,440      2,440     2,440      +1%
Colas                11,661    11,800    11,800     11,900    12,050      +3%
TF1                   2,622     2,630     2,630      2,630     2,590      -1%
Bouygues Telecom      5,636     5,730     5,730      5,730     5,730      +2%
Holding company
and other               132       120       120        120       120       nm

Intra-Group
elimination            (479)     (420)     (420)      (420)     (430)      nm

TOTAL                31,225    31,700    31,900     32,000    32,200      +3%
  o/w France         21,576(1) 22,000    22,100     22,400    22,400      +4%
  o/w international   9,649(1)  9,700     9,800      9,600     9,800      +2%

(1)Following the change in status of Mayotte, which has become a French
   department, sales were reclassified to France.

                               Financial calendar:
              28 February 2012: full-year 2011 results (5.45pm CET)
              29 February 2012: full-year 2011 results presentation

The financial statements have been subject to a limited review by the statutory
auditors and the corresponding report has been issued.
You will find the full financial statements and notes to the financial
statements 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

Condensed consolidated
income statement                                         9-month          %
(EUR million)                                        2010       2011    Change

Sales                                              23,067     23,719       +3%

Current operating profit                            1,328      1,338       +1%

Other operating income and expenses                    70(1)      38(2)   -46%

Operating profit                                    1,398      1,376       -2%

Cost of net debt                                     (251)      (205)     -18%

Other operating income and expenses                    24         (1)      nm

Income tax expense                                   (376)      (395)      +5%

Share of profits and losses from associates           279        143      -49%

Net profit                                          1,074        918      -15%

Minority interests                                   (151)      (124)     -18%

Net profit attributable to the Group                  923        794      -14%

(1) Other operating income and expenses include:
- TF1: exceptional income of EUR96 million generated by the restatement of the
  previously-held equity interest following the takeover of TMC
- Colas: non-current items of -EUR26 million relating to charges for former
  competition-related matters and write-downs of goodwill in Central Europe
(2) Non-current income relating to an asset disposal at Bouygues Telecom

Third-quarter consolidated
income statement                                    Third quarter         %
(EUR million)                                      2010       2011      Change

Sales                                             8,412      8,505       +1%
Current operating profit                            617(1)     586       -5%
Operating profit                                    700(2)     624(3)   -11%
Net profit attributable to the Group                391        403       +3%

(1 The figure reported on 2 December 2010 was EUR630 million, before the
   reclassification of other operating income and expenses at Colas.
(2)Including EUR83 million of other operating income and expenses, or +EUR96
   million at TF1 and -EUR13 million at Colas
(3)Including EUR38 million of non-current income relating to an asset disposal
   at Bouygues Telecom

                                                            Change
                                                        like-for-like
                                                            and at
Sales                                                      constant
by business area              9-month   9-month      %     exchange
(EUR million)                                               rates

Bouygues Construction           6,801     7,086     +4%       =
Bouygues Immobilier             1,769     1,548    -12%     -12%
Colas                           8,785     9,168     +4%      +3%
TF1                             1,826     1,839     +1%      -2%
Bouygues Telecom                4,146     4,285     +3%      +3%
Holding company and other          99        90     nm       nm

Intra-Group elimination          (359)     (297)    nm       nm

TOTAL                          23,067    23,719     +3%      +1%
  o/w France                   15,890(1) 16,498     +4%      +2%
  o/w international             7,177(1)  7,221     +1%      -3%

(1)Following the change in status of Mayotte which has become a French
   department, sales were reclassified to France

Contribution of business
areas to EBITDA                            9-month         %
(EUR million)                          2010      2011    change

Bouygues Construction                   433       370     -15%
Bouygues Immobilier                     144       126     -13%
Colas                                   565       595      +5%
TF1                                     172       229     +33%
Bouygues Telecom                      1,100     1,035      -6%
Holding company and other               (23)      (41)     nm

TOTAL                                 2,391     2,314      -3%

Contribution of business
areas to Current operating                 9-month         %
profit (EUR million)                   2010      2011    change

Bouygues Construction                   237       266     +12%
Bouygues Immobilier                     150       127     -15%
Colas                                   235       274     +17%
TF1                                     125       195     +56%
Bouygues Telecom                        611       512     -16%
Holding company and other               (30)      (36)     nm

TOTAL                                 1,328     1,338      +1%

Contribution of business
areas to Net profit attributable           9-month         %
to the Group (EUR million)             2010      2011    change

Bouygues Construction                   143       159     +11%
Bouygues Immobilier                      77        78      +1%
Colas                                   152       201     +32%
TF1                                      73        55     -25%
Bouygues Telecom                        351       316     -10%
Alstom                                  239       134     -44%
Holding company and other              (112)     (149)     nm

TOTAL                                   923       794     -14%

Net cash by business area                  9-month        Change
(EUR million)                          2010      2011      EURm

Bouygues Construction                 2,905     2,393    -EUR512m
Bouygues Immobilier                      93       275    +EUR182m
Colas                                  (666)     (823)   -EUR157m
TF1                                      (9)       87    +EUR96m
Bouygues Telecom                       (339)     (440)   -EUR101m
Holding company and other            (5,754)   (5,300)   +EUR454m

TOTAL                                (3,770)   (3,808)   -EUR38m

Contribution of business
areas to Cash flow                         9-month         %
(EUR million)                          2010      2011    change

Bouygues Construction                   375       400      +7%
Bouygues Immobilier                     145       129     -11%
Colas                                   572       620      +8%
TF1                                     160       242     +51%
Bouygues Telecom                      1,073     1,052      -2%
Holding company and other               103        40      nm

TOTAL                                 2,428     2,483      +2%

Contribution of business areas
to Net capital expenditure                 9-month        Change
(EUR million)                          2010      2011      EURm

Bouygues Construction                   145       177    +EUR32m
Bouygues Immobilier                       3         7    +EUR4m
Colas                                   275       252    -EUR23m
TF1                                      35        29    -EUR6m
Bouygues Telecom                        400       536    +EUR136m
Holding company and other                 6        (4)   -EUR10m

TOTAL                                   864       997    +EUR133m

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