BOUYGUES (EPA:EN) Bouygues : First quarter 2012 results

Transparency directive : regulatory news

15/05/2012 17:45

Paris, 15 May 2012

                            Bouygues press release

                               First quarter 2012
              * Sales up 4% to EUR7 billion
              * Net profit: EUR35 million
              * Construction businesses order book at a record level

The first quarter of 2012 was in line with expectations. The Bouygues group
reported consolidated first-quarter sales of EUR7 billion, up 4% (2%
like-for-like and at constant exchange rates). Current operating profit came
to EUR82 million (down 46% versus Q1 2011) and does not reflect the expected
full-year performance. Net profit increased 3% to EUR35 million, due to an
improved contribution from Alstom.

Key figures
(EUR million)                   Q1      Q1        Change
                             2011     2012
Sales                       6,686    6,985        +4%

Current operating profit      153       82       -46%
Net profit attributable to
the Group                      34       35        +3%

Net debt(1)                 3,293    5,324     +EUR2,031 m
Net gearing(1)                 31%      55%     +24 pts

(1) End of period

                                 Business areas

The order book in the construction businesses reached a record level of
EUR27 billion, 13% higher than at end-March 2011, giving good visibility for
2012 as a whole.

Bouygues Construction reported sales of EUR2,380 million, an overall rise of
10% (up 2% in France and 21% on international markets), or 3% like-for-like
and at constant exchange rates. The current operating margin held firm at 3.3%
and net profit rose 13% to EUR52 million.
Order intake was excellent, both in France and internationally. Orders amounted
to EUR3.7 billion, up 31%, and included the contract for the new Paris law
courts complex but not for the Nimes-Montpellier railway bypass yet. The order
book was up 14% to EUR1 6.7 billion versus end-March 2011, with international
contracts accounting for 47%, thus giving good visibility for future activity.

Bouygues Immobilier reported a 7% rise in sales to EUR472 million (up 9% in
residential property and down 12% in commercial property). The operating margin
was 7.4% and net profit was stable at EUR22 million. First-quarter 2012
commercial property reservations amounted to EUR116 million, reflecting
Bouygues Immobilier's ability to develop turnkey projects that meet customers'
expectations. To a great extent, they offset a 28% drop in residential property
reservations to EUR293 million in a "wait-and-see" market that is expected to
contract further in 2012. Total reservations in Q1 2012 were down 6% at EUR409
million. The order book stood at EUR3 billion, 32% higher than at end-March
2011.

Colas reported a 4% rise in sales to EUR2,209 million, down 1% in France and up
16% internationally. Due to a particularly wet winter in Europe and to heavier
costs related to the early start-up in North America, the current operating
result, traditionally negative in the first quarter, was -EUR186 million,
EUR21 million more than in Q1 2011, and the net loss was EUR127 million. Given
the highly seasonal nature of Colas' activities, first-quarter results are not
representative of the year as a whole.
Good commercial activity, especially in international markets, took the order
book to EUR7.3 billion, 4% higher than at end-March 2011.

TF1 grows its diversification activities

TF1 reported a 2% increase in first-quarter sales to EUR629 million, sustained
by the growth of its diversification activities. The channel's programme
choices meant that programming costs were higher than in Q1 2011, thus
impacting current operating profit, which stood at EUR56 million. Net profit
amounted to EUR35 million.

Bouygues Telecom adapts to new market conditions

Bouygues Telecom reported a 3% drop in sales to EUR1 ,366 and a 3% fall in
sales from network to EUR1,220 million. Stripping out the effect of the cut in
voice and SMS call termination rates, sales from network would have risen by
6%. EBITDA declined 8% to EUR296 million, which mainly reflected the cut in
call termination rate differentials. Bouygues Telecom confirms that it expects
sales to contract by 10% in 2012 and EBITDA to decrease by around
EUR250 million. The company has embarked on a EUR300-million cost-cutting plan
which will start to have an impact in 2013.
Bouygues Telecom lost 21 0,000 contract customers from its mobile phone base in
Q1 2012(1). The market was particularly active after the arrival of a fourth
operator on 10 January 2012, but since mid-March portability requests have
gradually been returning to their previous level. Bouygues Telecom demonstrated
its capacity to anticipate and respond to changing market conditions with the
launch in summer 2011 of its B&YOU 'bare bones' offer, which had attracted
253,000 customers by end-March 2012. The strategy of expanding the community
MVNO market is continuing to pay off, with a base of 1.9 million active
customers(2) at end-March 2012. Bouygues Telecom is also continuing to grow on
the fixed broadband market, recording a net increase of 88,000 customers in the
first quarter and a base of 1.3 million customers(3) at 31 March 2012.

(1) The number of pre-paid mobile customers fell by 169,000
(2) An estimate of the MVNO active customer base: customers who have carried out
    an outgoing operation during the last month
(3) Includes both broadband and very-high-speed plans

Alstom

Alstom contributed EUR58 million to Bouygues' net profit in Q1 2012, compared
with EUR23 million in Q1 2011. Alstom performed well in commercial terms in
FY2011/12, with order intake rising by 14%, exceeding the increase in sales.
Alstom has announced that it expects sales to grow by more than 5% a year over
the next three years (from FY 2012/13 to FY 2014/15). It expects its operating
margin to improve steadily, reaching around 8% by March 2015. Free cash flow is
also expected to be positive in each of the next three financial years.

Financial situation

Free cash flow(1) amounted to EUR84 million(2) in Q1 2012, the same level as in
Q1 2011.
Cash flow generation resulted in a slight improvement in net debt compared with
end-March 2011 (EUR3.3 billion), before factoring in the purchase of two blocks
of 4G frequencies (EUR911 million) and the share repurchase tender offer
(EUR1,250 million). Including these two transactions, net debt at end-March
2012 amounted to EUR5.3 billion.
The Group has a high level of liquidity (EUR7.8 billion) and a well-balanced
debt repayment schedule.

(1) Before change in the working capital requirement
(2) Excluding a EUR683-million investment in 4G frequencies

Highlights since 1 January 2012

* 1 February 2012: Bouygues Immobilier concludes a contract to develop the
  Clarins Group's future headquarters in Paris.

* 22 March 2012: Bouygues Telecom announces it will start to roll out its 4G
  network and chooses Lyon as its pilot city.

* 27 March 2012: The CSA (French broadcasting authority) allocates six new DTT
  freeview channels, including HD1, a drama channel, for the TF1 group. This
  frequency means that the group now holds four free-to-air licences, like
  other leading media groups in Europe.

* 10 April 2012: Bouygues Construction acquires British building contractor
  Thomas Vale(1).

* 16 April 2012: Bouygues Construction concludes a EUR140-million contract to
  renovate the Ritz Hotel in Paris.

* 24 April 2012: Bouygues Thai, Bouygues Construction's subsidiary in Thailand,
  signs a contract worth nearly EUR100 million with local developer Noble
  Development Plc to build three up-market residential towers and an office
  building.

* 3 May 2012: Bouygues Telecom and Darty decide to join forces in order to
  offer their customers the best of digital services. Under the agreement:
   - Darty will distribute all Bouygues Telecom's fixed and mobile offers in
     its 226 stores,
   - Darty will provide all customer service for Bouygues Telecom subscriptions
     sold in its stores,
   - Bouygues Telecom acquires Darty Telecom(1), confirming its intention to
     step up its growth in the fixed market.

(1) Subject to approval by the competition authorities

2012 sales target

On the basis of first-quarter results, the 2012 sales target has been raised by
EUR300 million to EUR32.7 billion, the same level as in 2011.

Sales
by business area                               2012
(EUR million)                      2011        target               %
                                 actual                          change
                                        Reported in Reported in
                                           March       May
Bouygues Construction           9,802     10,000      10,100       +3%
Bouygues Immobilier             2,465      2,450       2,450        =
Colas                          12,412     12,500      12,700       +2%
TF1                             2,620      2,620       2,620        =
Bouygues Telecom                5,741      5,140       5,140      -10%
Holding company and other         120        120         120        =

Intra-Group elimination          (454)      (480)       (480)      nm

TOTAL                          32,706     32,350      32,650        =
o/w France                     22,601     22,050      21,950       -3%
o/w international              10,105     10,300      10,700       +6%

                               Financial calendar:
              28 August 2012: first-half 2012 results (5.45pm CET)
             29 August 2012: first-half 2012 results presentation

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

Find the full financial statements and notes to the financial statements on
www.bouygues.com.

Press contact:                   Investors and analysts contact:
+33 (0)1 44 20 12 01 -              +33 (0)1 44 20 10 79 -
presse@bouygues.com                 investors@bouygues.com
                   www.bouygues.com

Condensed consolidated                First quarter        % change
income statement                     2011      2012
(EUR million)

Sales                                6,686    6,985          +4%
Current operating profit               153       82         -46%
Other operating income and expenses      0        0          nm
Operating profit                       153       82         -46%
Cost of net debt                       (74)     (79)         +7%
Other financial income and expenses     (5)      (1)         nm
Income tax expense                     (29)      (5)        -83%
Share of profits and losses from
associates                              24       62        +158%
Net profit                              69       59         -14%
Minority interests                     (35)     (24)        -31%
Net profit attributable to the Group    34       35          +3%

Sales by business area                First quarter  % change  Change like-for
(EUR million)                          2011    2012             -like and at
                                                                   constant
                                                               exchange rates
Bouygues Construction                2,169    2,380     +10%         +3%
Bouygues Immobilier                    443      472      +7%         +7%
Colas                                2,119    2,209      +4%         +3%
TF1                                    614      629      +2%         +1%
Bouygues Telecom                     1,404    1,366      -3%         -3%
Holding company and other               35       36       nm         nm
Intra-Group elimination                (98)    (107)      nm         nm
Total                                6,686    6,985      +4%         +2%
France                               5,008    5,026       =           =
International                        1,678    1,959     +17%         +7%

Contribution of business areas to EBITDA
(EUR million)                         First quarter        % change
                                     2011      2012
Bouygues Construction                112        130          +16%
Bouygues Immobilier                   25         24           -4%
Colas                                (85)      (115)          nm
TF1                                   94         80          -15%
Bouygues Telecom                     321        296           -8%
Holding company and other            (10)       (12)          nm
TOTAL                                457        403          -12%

Contribution of business areas to
Current operating profit            First quarter        % change
(EUR million)                      2011     2012
Bouygues Construction                77       79             +3%
Bouygues Immobilier                  36       35             -3%
Colas                              (165)    (186)             nm
TF1                                  62       56            -10%
Bouygues Telecom                    153      107            -30%
Holding company and other           (10)      (9)             nm
TOTAL                               153       82            -46%

Contribution of business areas to
Net profit attributable to the Group   First quarter        % change
(EUR million)                          2011      2012
Bouygues Construction                   46         52         +13%
Bouygues Immobilier                     22         22          =
Colas                                 (113)      (123)         nm
TF1                                     20         15         -25%
Bouygues Telecom                        89         59         -34%
Alstom                                  23         58        +152%
Holding company and other              (53)       (48)         nm
TOTAL                                   34         35          +3%

Net cash by business area             First quarter        change
(EUR million)                          2011     2012         EURm
Bouygues Construction                 2,615    2,842      +EUR227m
Bouygues Immobilier                     346      372       +EUR26m
Colas                                  (509)    (531)      -EUR22m
TF1                                     133       36       -EUR97m
Bouygues Telecom                       (201)  (1,326)   -EUR1,125m
Holding company and other            (5,677)  (6,717)   -EUR1,040m
TOTAL                                (3,293)  (5,324)   -EUR2,031m

Contribution of business areas to   First quarter        % change
Cash flow                           2011     2012
(EUR million)
Bouygues Construction               118       134          +14%
Bouygues Immobilier                  34        33           -3%
Colas                               (79)     (101)          nm
TF1                                  79        72           -9%
Bouygues Telecom                    311       272          -13%
Holding company and other            (5)       (3)          nm
TOTAL                               458       407          -11%

Contribution of business areas to    First quarter         change
Net capital expenditure              2011     2012          EURm
(EUR million)
Bouygues Construction                 44        35        -EUR9m
Bouygues Immobilier                    2         2            =
Colas                                 71        53       -EUR18m
TF1                                    8         5        -EUR3m
Bouygues Telecom                     148       145        -EUR3m
Holding company and other              0        (1)       -EUR1m
TOTAL EXCL. 4G FREQUENCIES (800 MHz) 273       239       -EUR34m
4G FREQUENCIES (800 MHz)               0       683      +EUR683m
TOTAL                                273       922      +EUR649m

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