BOUYGUES: Full-year 2012 results press release

Wed Feb 27, 2013 1:01am EST

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Paris, 27 February 2013

Bouygues press release

                      Full-year 2012 results                      
  *Sales up 3% at EUR33.5 billion, exceeding the initial target   
             *Results affected by Bouygues Telecom                
  *Excellent commercial activity in the construction businesses   
                  *Net debt under tight control                   


Key figures

 (EUR million)                          2011    2012    Change   
                                                                 
 Sales                                  32,706  33,547    +3%    
                                                                 
                                                                 
 Current operating profit                1,819   1,286      -29% 
 Operating profit                       1,8571  1,1202      -40% 
 Net profit attributable to the Group    1,070     633      -41% 
                                                                 
                                                                 
 Free cash flow                           8623    7243  -EUR138m 
 Net debt4                               3,862   4,172  +EUR310m 
 Net gearing4                              40%     41%     +1 pt 


1Including EUR38 million of non-current income relating to an asset disposal at Bouygues Telecom
2Including non-current charges of EUR200 million at Bouygues Telecom and TF1 and EUR34 million of
capital gains on asset disposals at Bouygues Telecom
3Before change in working capital requirement. In 2011, excluding 4G frequencies (2,600 MHz band)
for EUR228 million. In 2012, excluding exceptional items related to Bouygues Telecom: 4G
frequencies (800 MHz band) for EUR726 million (acquisition cost and capitalised interest) and
asset disposals for EUR207 million 
4At 31 December

The Bouygues group's sales in 2012 exceeded their initial target and amounted to EUR33.5 billion,
up 3% and stable like-for-like and at constant exchange rates.

As expected, results reflected the upheaval on the mobile telecoms market and a challenging
economic environment.
In this context, current operating profit amounted to EUR1,286 million, down by EUR533 million, of
which EUR439 million was attributable to the telecoms business.
Operating profit amounted to EUR1,120 million, including non-current charges of EUR200 million
related to the adaptation plans at Bouygues Telecom and TF1 and EUR34 million of capital gains on
asset disposals at Bouygues Telecom.
Net profit attributable to the Group amounted to EUR633 million, down EUR437 million on 2011, with
Bouygues Telecom accounting for EUR345 million of this decrease. As announced, the figure
includes, in the fourth-quarter, a dilution loss of EUR53 million in connection with Alstom's
capital increase in October 2012 and the negative effect of a higher tax charge following the 2012
Supplementary Budget Act in France.

In this challenging environment the Group managed to maintain robust fundamentals, demonstrating:

*commercial flexibility, illustrated by the strong momentum in the construction businesses, where
the order book stood at EUR26.8 billion, 8% higher than at end-December 2011, an improvement in
the TF1 group's audience ratings over the year, growth in Bouygues Telecom's fixed broadband
subscriber base, with the addition of 605,000 new subscribers, and stabilisation of the subscriber
base in the mobile segment; 
*a sound financial structure, with robust free cash flow and tight control of net debt despite the
purchase of 4G frequencies. 

Finally, the Group's business areas were highly responsive in adapting to the situation in 2012:

*Bouygues Immobilier took the necessary measures to cope with a sharp fall in the French
residential property market, 
*A new organisation for the roads activity was adopted at Colas in France, 
*TF1 implemented phase II of its optimisation plan, 
*Bouygues Telecom took all the measures scheduled for 2012 in its transformation plan. 

Business areas

Bouygues Construction posted sales of EUR10,640 million, up 9% overall (up 5% in France and 13% on
international markets) and 4% like-for-like and at constant exchange rates. The current operating
margin held up well at 3.4%, reflecting the smooth execution of ongoing contracts. Net profit rose
18% to EUR267 million.
Order intake stood at a very high level, rising 9% on 2011 to a record EUR12 billion. Ensuring
excellent visibility, the order book at end-December 2012 stood 12% higher than a year earlier at
EUR17.1 billion, with international markets accounting for 45%.

Bouygues Immobilier reported a 3% decline in sales to EUR2,396 million. The current operating
margin of 7.5% reflected the impact of adjustment measures in response to the decline in
residential property reservations. Net profit fell 11% to EUR107 million.
In a sharply contracting French market, residential property reservations fell 30% on 2011 to
EUR1,687 million. Commercial property reservations reflected Bouygues Immobilier's expertise in
green property developments, reaching EUR581 million despite a sluggish market.
The order book at end-December 2012 stood at EUR2,957 million, down 3%. Representing 15 months'
sales, it offers good visibility.

Colas recorded sales of EUR13,036 million, an increase of 5% overall (up 2% in France and 10% on
international markets) and 3% like-for-like and at constant exchange rates. Current operating
profit was EUR406 million, down EUR60 million, due to losses on sales of refined oil products and
lower profitability in the United States. However, the objective of breaking even again in Central
Europe was achieved. In addition, a good performance by the roads activity in France in the fourth
quarter enabled to offset the delays caused by poor weather in the first half of the year and to
stabilise the operating margin for the full year. Net profit amounted to EUR302 million, 10% down
on 2011.
The order book at 31 December 2012 stood at EUR6.7 billion, up 4%, and rose both in mainland
France (up 5%) and on international markets (up 2%).

TF1's sales were stable at EUR2,621 million. The 3% decline in advertising revenues across the TF1
group was offset by growth in other activities, up 6% on 2011, but dented current operating
profit, which fell 9% on 2011 to EUR258 million. Operating profit amounted to EUR210 million and
included non-current charges of EUR48 million in connection with phase II of the optimisation
plan. Net profit amounted to EUR136 million, a fall of 26%.
Audience ratings improved over the year and in 2012 TF1 confirmed its position as the undisputed
leader on the freeview TV market in France.

Bouygues Telecom reported a 9% drop in both total sales and sales from network, to EUR5,226
million and EUR4,361 million respectively. Fixed broadband sales from network rose 51% on 2011 to
EUR627 million. Results fell sharply following upheaval on the French mobile market in 2012 but
were in line with expectations. EBITDA was on target at EUR908 million. Current operating profit
amounted to EUR122 million and reflected the fall in EBITDA and higher amortisation expense and
provisions. Operating profit stood at EUR4 million and included non-current charges of EUR152
million in connection with the adaptation plan and capital gains on asset disposals of EUR34
million. 2012 ended with a loss of EUR16 million.
All the measures in the transformation plan scheduled in 2012 were taken and savings of EUR151
million have already been made on the mobile activity in 2012. The EUR300 million of savings
announced for 2013 are secured.
Bouygues Telecom showed good commercial resilience in an extremely challenging environment. The
mobile subscriber base has stabilised at 11.3 million thanks to the very good momentum at B&YOU.
285,000 new plan subscribers joined Bouygues Telecom in the fourth quarter to give net growth of
318,000 plan subscribers over the year as a whole. B&YOU gained 453,000 new subscribers in the
fourth quarter to give a total of 1,078,000 subscribers at end-2012.
Bouygues Telecom is continuing to grow on the fixed broadband market, with a net increase of
110,000 subscribers under the Bouygues Telecom brand in the fourth quarter and 88,000 subscribers
in all. Bouygues Telecom had a total of 1.8 million fixed broadband subscribers1 at end-2012.

1Encompasses both broadband and very-high-speed subscriptions.

Alstom

As announced, Alstom contributed EUR240 million to Bouygues' net profit in 2012, compared with
EUR190 million in 2011.
Sustained business activity was confirmed in the first nine months of 2012/13, with order intake
rising 14% on the previous period to EUR17.2 billion. The order book at 31 December 2012 stood at
EUR52 billion, representing 30 months' sales.

Financial situation

The Group's free cash flow1, excluding exceptional items at Bouygues Telecom (purchase of 4G
frequencies and asset disposals), amounted to EUR724 million2, EUR138 million less than in 2011.
A EUR207-million increase in free cash flow at the construction businesses largely offset the
decline in free cash flow at Bouygues Telecom, which fell by EUR297 million2. 

Despite the purchase of 4G frequencies for EUR726 million in 2012, net debt at end-December 2012
stood at EUR4.2 billion, EUR310 million higher than at end-December 2011, and net gearing remained
stable at 41% (one point higher than at end-2011). This control over net debt is the result of a
proactive financial policy that combined optimisation of the working capital requirement with
selected asset disposals and control of capital expenditure.

The Group has excellent liquidity (EUR9.7 billion) and an evenly-spread redemption schedule.

1Before change in working capital requirement 
2Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band
(acquisition cost and capitalised interest for EUR726 million at Bouygues group level and for
EUR696 million at Bouygues Telecom level) and asset disposals for EUR207 million

Dividend

The Board of Directors will ask the Annual General Meeting on 25 April 2013 to approve the payment
of a dividend of EUR1.60 per share, the same as in 2011. The ex-date, record date and payment date
have been set at 30 April, 3 May and 6 May 2013 respectively.

Board of Directors

The Board of Directors will ask the next Annual General Meeting to renew the terms of office of
Yves Gabriel, Patrick Kron, Colette Lewiner, Jean Peyrelevade, Fran├žois-Henri Pinault and SCDM,
represented by Olivier Bouygues. The Board will also ask the next Annual General Meeting to
appoint Rose-Marie Van Lerberghe as a director in place of Patricia Barbizet, resigning, and
Jean-Paul Chifflet as a director in place of Lucien Douroux, whose term of office expires.

Cancellation of shares

The Board of Directors has decided to cancel 5,074,906 shares. The number of shares after
cancellation amounted to 319,157,468 and the number of voting rights to 440,569,746.

Outlook

In a challenging economic environment, the construction businesses enjoy good visibility thanks to
record order books and are backed by a number of major strengths, such as the capacity to offer
innovative, high value-added solutions, robust and diversified international operations and
expanding speciality activities that help to drive growth.

Bouygues Telecom is facing two major developments on the mobile market in early 2013. The first is
the continuing strong growth of the SIM-only/Web-only segment. Second, further significant price
cuts have already been made in the first quarter and the entry-level prices of plans with services
from Bouygues Telecom's competitors are nearing EUR20. In this context, Bouygues Telecom's
strategic priorities are confirmed and the transformation of the company begun in 2012 will
continue with a breakthrough in two areas in particular: technical assets and the marketing of
plans with services. The aim of this next stage in the transformation of Bouygues Telecom will be
to stabilise EBITDA and improve the EBITDA minus CAPEX item from 2013. In these conditions, 2012
should mark the low point in Bouygues group's profitability.

 Sales                         2012       2013     Change  
 by business area                        target       %    
 (EUR million)                                             
                                                           
 Bouygues Construction        10,640      10,700       +1% 
 Bouygues Immobilier          2,396        2,500       +4% 
 Colas                        13,036      13,200       +1% 
 TF1                          2,621        2,540       -3% 
 Bouygues Telecom             5,226        4,850       -7% 
 Holding company and other    123            120        nm 
                                                           
 Intra-Group elimination      (495)        (460)        nm 
                                                           
 TOTAL                        33,547      33,450           
 o/w France                   22,308      22,250           
 o/w international            11,239      11,200           


Remuneration of executive directors

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

Financial calendar:

14 May 2013: first-quarter 2013 sales and earnings (5.45pm CET)
28 August 2013: first-half 2013 results (7am CET)
28 August 2013: first-half 2013 results presentation


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 
http://www.bouygues.com/fr/finances-actionnaires/analystes-et-investisseurs/presentations-des-resultats/presentations-des-resultats/
www.bouygues.com
http://www.bouygues.com/fr/finances-actionnaires/analystes-et-investisseurs/presentations-des-resultats/presentations-des-resultats/
. 

The full-year results presentation to financial analysts will be webcast live on 27 February 2013
at 11am on www.bouygues.com http://www.bouygues.com/ .

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


 Condensed consolidated                          2011    2012     %        
 income statement                                                 change   
 (EUR million)                                                             
                                                                           
 Sales                                           32,706  33,547        +3% 
                                                                           
 Current operating profit                         1,819   1,286       -29% 
                                                                           
 Other operating income and expenses                381  (166)2         nm 
                                                                           
 Operating profit                                 1,857   1,120       -40% 
                                                                           
 Cost of net debt                                 (277)   (290)        +5% 
                                                                           
 Other financial income and expenses               (13)      11         nm 
                                                                           
 Income tax expense                               (528)   (330)       -38% 
                                                                           
 Share of profits and losses from associates        198    2173       +10% 
                                                                           
 Net profit                                       1,237     728       -41% 
                                                                           
 Minority interests                               (167)    (95)       -43% 
                                                                           
 Net profit attributable to the Group             1,070     633       -41% 


1Non-current income relating to an asset disposal at Bouygues Telecom
2Including non-current charges of EUR200 million at Bouygues Telecom and TF1 and EUR34 million of
capital gains on asset disposals at Bouygues Telecom
3Including non-current charges of EUR53 million related to the dilution loss further to the
capital increase at Alstom

 Fourth-quarter consolidated                   Fourth-quarter         %     
 income statement                                                   change  
 (EUR million)                                                              
                                       2011              2012      
                                                                            
 Sales                                           8,987     8,950          = 
                                                                            
 Current operating profit                          481       332       -31% 
                                                                            
 Operating profit                                  481      2611       -46% 
                                                                            
 Net profit attributable to the Group              276        69       -75% 


1Including non-current charges of EUR105 million at Bouygues Telecom and TF1 and EUR34 million of
capital gains on asset disposals at Bouygues Telecom

 Condensed consolidated balance sheet                    End-2011            End-2012          
 (EUR million)                                                                                 
                                                                                               
 Non-current assets                                           19,442                 20,170    
 Current assets                                               15,480                 16,584    
                                                                                               
 TOTAL ASSETS                                                 34,922                 36,754    
                                                                                               
 Shareholders' equity                                          9,678                 10,078    
 Non-current liabilities                                       8,875                  9,845    
 Current liabilities                                          16,369                 16,831    
                                                                                               
 TOTAL LIABILITIES                                            34,922                 36,754    
                                                                                               
 Net debt                                                      3,862                  4,172    


 Sales by business area        2011      2012        %       % change like-for-like and at constant exchange rates  
 (EUR million)                                     change                                                           
                                                                                                                    
 Bouygues Construction          9,802    10,640        +9%                                                      +4% 
 Bouygues Immobilier            2,465     2,396        -3%                                                      -3% 
 Colas                         12,412    13,036        +5%                                                      +3% 
 TF1                            2,620     2,621          =                                                      -1% 
 Bouygues Telecom               5,741     5,226        -9%                                                     -10% 
 Holding company and other        120       123         nm                                                       nm 
                                                                                                                    
 Intra-Group elimination        (454)     (495)         nm                                                       nm 
                                                                                                                    
 Total                         32,706    33,547        +3%                                                        = 
         o/w France            22,601    22,308        -1%                                                      -2% 
     o/w international         10,105    11,239       +11%                                                      +4% 


 Contribution of business areas     2011   2012       %     
 EBITDA                                             change  
 (EUR million)                                              
                                                            
 Bouygues Construction                549    614       +12% 
 Bouygues Immobilier                  181    186   +3%      
 Colas                                934    832       -11% 
 TF1                                  357    318       -11% 
 Bouygues Telecom                  1,272  908          -29% 
 Holding company and other           (51) (36)           nm 
                                                            
 TOTAL                              3,242  2,822       -13% 


 Contribution of business areas to current operating profit     2011   2012       %     
 (EUR million)                                                                  change  
                                                                                        
 Bouygues Construction                                            353    364        +3% 
 Bouygues Immobilier                                              201    179       -11% 
 Colas                                                            466    406       -13% 
 TF1                                                              283    258        -9% 
 Bouygues Telecom                                               561    122         -78% 
 Holding company and other                                       (45)   (43)         nm 
                                                                                        
 TOTAL                                                          1,819  1,286       -29% 


 Contribution of business areas to     2011   2012       %     
 operating profit                                      change  
 (EUR million)                                                 
                                                               
 Bouygues Construction                   353    364        +3% 
 Bouygues Immobilier                     201    179       -11% 
 Colas                                 466    406         -13% 
 TF1                                     283    210       -26% 
 Bouygues Telecom                      599     4          -99% 
 Holding company and other              (45)   (43)         nm 
                                                               
 TOTAL                                 1,857  1,120       -40% 


 Contribution of business areas to         2011   2012        %     
 net profit attributable to the Group                       change  
 (EUR million)                                                      
                                                                    
 Bouygues Construction                       226     267       +18% 
 Bouygues Immobilier                         120     107       -11% 
 Colas                                       324     291       -10% 
 TF1                                          80      59       -26% 
 Bouygues Telecom                            331    (14)      -104% 
 Alstom                                      190     240       +26% 
 Holding company and other                 (201)  (317)1         nm 
                                                                    
 TOTAL                                     1,070     633       -41% 


1Including non-current charges of EUR53 million related to the dilution loss further to the
capital increase at Alstom

 Net cash by business area    End-2011  End-2012        Change      
 (EUR million)                                       (EUR million)  
                                                                    
 Bouygues Construction            2,869     3,093          +EUR224m 
 Bouygues Immobilier                507       358          -EUR149m 
 Colas                               28     (170)          -EUR198m 
 TF1                               (40)       237          +EUR277m 
 Bouygues Telecom                 (581)     (650)           -EUR69m 
 Holding company and other      (6,645)   (7,040)          -EUR395m 
                                                                    
 TOTAL                          (3,862)   (4,172)          -EUR310m 


 Contribution of business areas to     2011   2012         Change      
 cash flow2                                             (EUR million)  
 (EUR million)                                                         
                                                                       
 Bouygues Construction                   157     327          +EUR170m 
 Bouygues Immobilier                     134     107           -EUR27m 
 Colas                                   314     378           +EUR64m 
 TF1                                     150     161           +EUR11m 
 Bouygues Telecom                       2083   (89)4          -EUR297m 
 Holding company and other             (101)  (160)5           -EUR59m 
                                                                       
 TOTAL                                  8623    7244          -EUR138m 


2Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It
is calculated before changes in WCR

 Contribution of business areas to     2011    2012         Change      
 net capital expenditure                                 (EUR million)  
 (EUR million)                                                          
                                                                        
 Bouygues Construction                    268     159          -EUR109m 
 Bouygues Immobilier                       12      13            +EUR1m 
 Colas                                    414     345           -EUR69m 
 TF1                                      108      45           -EUR63m 
 Bouygues Telecom                        8593    8694           +EUR10m 
 Holding company and other                (3)      25            +EUR5m 
                                                                        
 TOTAL EXCL.EXCEPTIONAL ITEMS          1,6583  1,4334          -EUR225m 
                                                                        
 EXCEPTIONAL ITEMS                        228     519          +EUR291m 
                                                                        
 TOTAL                                  1,886   1,952           +EUR66m 


3Excluding purchase of 4G frequencies in the 2,600 MHz band for EUR228 million
4Excluding exceptional items related to Bouygues Telecom: 4G frequencies in the 800 MHz band
(acquisition cost and capitalised interest for EUR696 million at Bouygues Telecom level and for
EUR726 million at Bouygues group level) and asset disposals for EUR207 million
5Excluding capitalised interest for the 4G frequencies for EUR30m 

Press release in PDF http://hugin.info/155933/R/1681291/549593.pdf 


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