Bouygues. Nine-month 2012 results

PR Newswire/Les Echos/ 
Paris, 14 November 2012 
                          Bouygues press release 
                          Nine-month 2012 results 
* Sales: EUR24.6 billion (+4%)
* Net profit: EUR564 million (-29%), impacted by Bouygues Telecom
* Construction businesses' order book at a high level, up 10% at EUR26.9
  billion
* Alstom's performances validates its roadmap
* Sales target revised upwards to EUR33.2 billion 
The Bouygues group reported a 4% increase in consolidated sales in the first
nine months of 2012 to EUR24.6 billion (up 1% like-for-like and at constant
exchange rates).
Current operating profit amounted to EUR954 million, down 29% on the first nine
months of 2011, and operating profit fell 38% to EUR859 million after the
inclusion of non-recurring charges related to adaptation plans at Bouygues
Telecom and TF1. Net profit was also down 29% at EUR564 million. In keeping with
the half-year trend, these results are mainly due to the lower profitability at
Bouygues Telecom.
The financial structure is sound, with net debt under tight control. 
Key figures  
(EUR million)                         9-month       9-month       Change  
                                     2011          2012
Sales                                  23,719        24,597          +4% 
Current operating profit                1,338           954         -29%
Operating profit                        1,376(1)        859(2)      -38%
Net profit attributable to the Group      794           564         -29% 
Net debt(3)                             3,808         5,832(4)   +EUR2,024m
Net gearing(3)                             36%           61%       +25 pts 
(1)Including EUR38 million of non-current income relating to an asset disposal 
at Bouygues Telecom
(2)Including EUR95 million linked to the cost of the adaptation plans at 
Bouygues Telecom and TF1
(3)End of period
(4)Net debt of EUR3,639 million before factoring in two one-off events: the 
share repurchase tender offer (EUR1 ,250 million) and the purchase of 4G 
frequencies (EUR943 million) 
                           Business areas 
In keeping with the first-half trend, the construction businesses posted good
commercial performances. The order book stood at EUR26.9 billion, 10% higher
than at end-September 2011, giving good visibility on future business activity. 
Bouygues Construction reported nine-month sales of EUR7,748 million, up 9%
overall (up 6% in France and 13% on international markets) and 4% like-for-like
and at constant exchange rates. The current operating margin was a robust 3.4%
and net profit amounted to EUR174 million, up 9%.
Order intake was very high, both in France and in international markets, growing
8% to reach EUR9 billion. The order book stood at EUR17 billion, 12% higher than
at end-September 2011, with international markets accounting for 45%. 
Bouygues Immobilier reported a 5% increase in sales to EUR1,631 million for the
first nine months of 2012 (up 8% in residential property, down 16% in commercial
property). The operating margin stood at 7.5%, reflecting early adjustment
measures in response to lower residential property reservations in a contracting
French market. Net profit amounted to EUR75 million.
In an unfavourable economic and tax environment, residential property
reservations reflected the wait-and-see stance on the property market and a fall
in buy-to-let investment. Reservations were 32% lower than in the first nine
months of 2011 at EUR1 ,040 million. Commercial property reservations stood at a
good level, up 6% to EUR358 million despite a sluggish market.
Sustained by the commercial property segment, the order book rose 9% in
comparison with end-September 2011 to EUR2,879 million, offering good visibility
and representing 14 months of sales. 
Colas reported sales of EUR9,670 million, an increase of 5% overall (up 1% in
France and 12% on international markets) and 3% like-for-like and at constant
exchange rates. Current operating profit fell EUR38 million to EUR236 million,
affected by delays in contract execution due to poor weather conditions in
mainland France in the first half of 2012 and lower profitability on the sale of
refined oil products. The cost of raw materials used in the refining activity
has risen sharply and could only be partially passed on to customers.
Net profit amounted to EUR178 million, EUR31 million less than in the first nine
months of 2011.
The order book grew 5% to EUR7 billion versus end-September 2011. 
TF1 has launched the second phase of its optimisation plan 
TF1 reported a 1% rise in sales to EUR1,853 million. The fall in advertising
revenue was offset by the growth of diversification activities, up 6% on the
first nine months of 2011, but continued to affect current operating profit,
which stood at EUR154 million, down EUR41 million. TF1 has launched the second
phase of its optimisation plan, designed to make its business model more
flexible and to continue cutting costs. The plan aims to generate recurring cost
savings of EUR85 million by end-201 4. A non-recurring EUR25-million charge
related to this plan was booked in the third quarter of 2012. Nine-month 2012
operating profit amounted to EUR129 million and net profit to EUR87 million,
EUR38 million lower than in the first nine months of 2011. 
Bouygues Telecom confirms its 2012 targets and is continuing its adaptation
plan 
Bouygues Telecom reported an 8% drop in nine-month 2012 sales to EUR3,951
million and sales from network dropped 8% to EUR3,51 8 million. As expected,
mobile sales from network continued to decline in the third quarter, while sales
in the fixed broadband segment showed strong growth.
EBITDA stood at EUR807 million, EUR228 million lower than in the first nine
months of 2011, in line with the full-year target of EUR900 million. Current
operating profit amounted to EUR206 million, reflecting the drop in EBITDA as
well as the increase in amortisation expense and provisions. Operating profit
for the first nine months of 2012, at EUR136 million, included a EUR70-million
non-recurring charge related to the adaptation plan, booked in the third
quarter. Net profit amounted to EUR76 million.
The EUR300-million adaptation and savings plan is being gradually rolled out and
is expected to have a full impact in 2013. The voluntary redundancy plan
concerning 556 employees is currently under way. 
In keeping with the trend of the second quarter, Bouygues Telecom improved its
commercial performance in the mobile segment. It acquired 178,000 new mobile
customers, with a net gain of 11,000 customers, excluding the impact of
integrating Darty Telecom and Simyo. 188,000 new plan customers joined Bouygues
Telecom in the third quarter of 2012, including 64,000 Darty Telecom customers.
B&YOU continued to grow, with a total of 625,000 customers at end-September 
2012.
Finally, Bouygues Telecom continued to expand on the fixed broadband market,
with 359,000 net additions in the third quarter and 77,000 new customers
excluding the impact of integrating Darty Telecom. This gave a base of 1.8
million customers(1) at 30 September 2012, up 57% compared with 30 September 
2011. 
(1)Includes broadband and very-high-speed broadband subscribers. Customers
gained following the acquisition of Darty Telecom, effective as of 24 July 2012,
are included in Q3 2012 financial statements. 
Alstom's performances validates its roadmap 
As announced, Alstom contributed EUR181 million to the Group's net profit in the
first nine months of 2012, compared with EUR134 million in the first nine months
of 2011.
Order intake grew robustly by 19% to EUR12.1 billion in the first half of
FY2012/13. The order book at end September stood at EUR52 billion, representing
31 months' sales.
Alstom confirmed that it expects sales to grow by more than 5% per year for the
current fiscal year and the next two fiscal years, matched by a steady
improvement in the operating margin to around 8% by March 2015. Free cash flow
is expected to be positive in each of the next three fiscal years. 
Following Alstom's EUR350-million capital increase, via a private placement, on
4 October 2012, Bouygues' stake in Alstom has fallen to 29.4% from 30.7% on 
30 September 2012.
Under IFRS, this event triggers a dilution loss of EUR53 million, which will be
recognised as a non-current operating charge in the fourth quarter of 2012. 
Financial position 
A EUR109-million increase in free cash flow(1) in the construction businesses
partly offset the EUR241 -million(2) drop in free cash flow at Bouygues Telecom.
Overall, the Group's free cash flow in the first nine months of the year
amounted to EUR713 million2, EUR173 million less than in the same period of
2011.
Net debt amounted to EUR5.8 billion at end-September 2012. This represents an
improvement of EUR169 million in comparison with end-September 2011, before
factoring in the purchase of two blocks of 4G frequencies (EUR943 million) and
the share repurchase tender offer (EUR1,250 million). 
The Group launched a EUR700-million bond issue in October 2012, redeemable in
2023. The Group has a high level of liquidity (EUR7.3 billion) and an
evenly-spread redemption schedule. 
(1)Before the change in working capital requirement
(2)Before investment in 4G frequencies in the first nine months of 2012
  (acquisition cost and capitalised interest) 
Significant events since 30 June 2012 
* 3 July 2012: Bouygues Telecom announces a voluntary redundancy plan concerning
  556 jobs. 
* 3 July 2012: Bouygues Bâtiment International, a Bouygues Construction
  subsidiary, takes 100% ownership of Leadbitter. 
* 5 July 2012: TF1 signs the agreement for its new HD1 channel with the French
  broadcasting authority, CSA. 
* 28 August 2012: Bouygues Telecom and Darty announce the launch of Bouygues
  Telecom Edition Darty offers, sold exclusively in Darty's 226 stores. 
* 6 September 2012: B&YOU launches the only prepaid card without an expiry date
  and with the market's lowest prepaid rates for calls, SMS and mobile 
  internet in mainland France. 
* 20 September 2012: Launch of the Campus Val de Bièvre project, designed and
  developed by Bouygues Immobilier under its Rehagreen(r) initiative. 
* 23 October 2012: Colas announces a project to reorganise its roads business in
  mainland France around seven regional subsidiaries, all under the Colas name. 
* 25 October 2012: Colas Rail, in a consortium, wins an EUR85-million contract
  to extend Line 1 of the Algiers metro. 
* 30 October 2012: Bouygues Construction, in a consortium, wins a EUR110-million
  contract to build several sports facilities in Canada. 
* 6 November 2012: B&YOU launches new ground-breaking offers on the low-cost
  mobile market. 
2012 sales target and outlook 
On the basis of the situation at 30 September, the 2012 sales target has been
revised upwards from EUR32.8 billion to EUR33.2 billion, 2% higher than in 2011. 
Sales                                    2012 target                    
by business area    2011                                                    % 
(EUR million)             Reported   Reported   Reported     Reported   
change 
                      in March    in May    in August  in November
Bouygues 
Construction       9,802   10,000     10,100      10,200      10,400      +6%
Bouygues 
Immobilier         2,465    2,450      2,450       2,450       2,450       =
Colas             12,412   12,500     12,700      12,700      12,900      +4%
TF1                2,620    2,620      2,620       2,620       2,620       =
Bouygues Telecom   5,741    5,140      5,140       5,180       5,200      -9%
Holding company 
and other            120      120        120         120         120      nm
Intra-Group 
elimination         (454)    (480)      (480)       (470)       (490)     nm
TOTAL             32,706   32,350     32,650      32,800      33,200      +2%
o/w France        22,601   22,050     21,950      22,050      22,300      -1%
o/w international 10,105   10,300     10,700      10,750      10,900      +8% 
The amended 2012 Budget Act and the 2013 Budget Act should result in higher
taxes and charges of around EUR70 million in 2012 and about a further EUR10
million in 2013. 


                              Financial calendar:
                   27 February 2013: full-year 2012 results 
                            7.00 am: press release
                           9.00 am: press conference
                          11.00 am: analysts' meeting

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:                                 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 
income statement                                             %
(EUR million)                       9-month                change


                         2011              2012
Sales                      23,719            24,597         +4%
Current operating profit    1,338               954        -29%
Other operating income 
and expenses                   38(1)            (95)(2)     nm
Operating profit            1,376               859        -38%
Cost of net debt             (205)             (212)        +3%
Other financial income 
and expenses                   (1)                8         nm
Income tax expense           (395)             (232)       -41%
Share of profits and 
losses from associates        143               210        +47%
Net profit                    918               633        -31%
Minority interests           (124)              (69)       -44%
Net profit attributable 
to the Group                  794               564        -29% 
(1)Non-current income relating to an asset disposal at Bouygues Telecom
(2)Cost of the adaptation plans at Bouygues Telecom (for EUR70 million) and TF1
  (for EUR25 million) 
Third-quarter consolidated 
income statement                    Third-quarter         % change
(EUR million)                   2011           2012
Sales                          8,505          9,092           +7%
Current operating profit         586            478          -18%
Operating profit                 624(1)         383(2)       -39%
Net profit attributable 
to the Group                     403            286          -29% 
(1)Including EUR38 million of non-current income relating to an asset disposal 
at Bouygues Telecom
(2)Including EUR95 million linked to the cost of the adaptation plans at 
Bouygues Telecom and TF1 
Sales                          9-month        % change         Change
by business area                                            like-for-like 
(EUR  million)              2011       2012                   and at   


                                                             constant  
                                                             exchange 


                                                           rates
Bouygues 
Construction               7,086       7,748     +9%           +4%
Bouygues Immobilier        1,548       1,631     +5%           +5%
Colas                      9,168       9,670     +5%           +3%
TF1                        1,839       1,853     +1%            =
Bouygues Telecom           4,285       3,951     -8%           -9%
Holding company and other     90          94      nm           nm
Intra-Group elimination     (297)       (350)     nm           nm
Total                     23,719      24,597     +4%           +1%
o/w France                16,391(1)   16,367      =            -1%
o/w international          7,328(1)    8,230    +12%           +4% 
(1)Export sales of refined oil products were reclassified according to their 
location 
Contribution of business areas to 
EBITDA                                    9-month           % change 
(EUR million)                   2011               2012
Bouygues Construction            370                432        +17%
Bouygues Immobilier              126                117         -7%
Colas                            595                538        -10%
TF1                              229                201        -12%
Bouygues Telecom               1,035                807        -22%
Holding company and other        (41)               (24)        nm 
TOTAL                          2,314              2,071        -11% 
Contribution of business areas to        9-month            % change
current operating profit
(EUR million)                    2011              2012 
Bouygues Construction             266               260          -2%
Bouygues Immobilier               127               123          -3%
Colas                             274               236         -14%
TF1                               195               154         -21%
Bouygues Telecom                  512               206         -60%
Holding company and other         (36)              (25)         nm 
TOTAL                           1,338               954         -29% 
Contribution of business areas to           9-month         % change 
net profit attributable to the Group
(EUR million)                           2011        2012      
Bouygues Construction                    159         174        +9%
Bouygues Immobilier                       78          75        -4%
Colas                                    201         172       -14%
TF1                                       55          38       -31%
Bouygues Telecom                         316          68       -78%
Alstom                                   134         181       +35%
Holding company and other               (149)       (144)       nm 
TOTAL                                    794         564       -29% 
Net cash by business area                     9-month         change  
(EUR million)                                                 (EURm) 
                                    2011         2012
Bouygues Construction                  2,393        2,700      +EUR307m
Bouygues Immobilier                      275          168      -EUR107m
Colas                                   (823)        (786)      +EUR37m
TF1                                       87          (18)     -EUR105m
Bouygues Telecom                        (440)      (1,475)   -EUR1,035m
Holding company and other             (5,300)      (6,421)   -EUR1,121m 
TOTAL                                 (3,808)      (5,832)   -EUR2,024m 
Contribution of business areas to             9-month           Change 
cash flow                                                       (EURm)  
(EUR million)                          2011          2012
Bouygues Construction                   400           419       +EUR19m
Bouygues Immobilier                     129           121        -EUR8m
Colas                                   620           621        +EUR1m
TF1                                     242           169       -EUR73m
Bouygues Telecom                      1,052           723      -EUR329m
Holding company and other                40            62       +EUR22m 
TOTAL                                 2,483         2,115      -EUR368m 
Contribution of business areas to
net capital expenditure                       9-month           Change 
(EURmillion)                                                     (EURm) 
                                   2011           2012
Bouygues Construction                   177            117      -EUR60m
Bouygues Immobilier                       7             10       +EUR3m
Colas                                   252            223      -EUR29m
TF1                                      29             18      -EUR11m
Bouygues Telecom                        536            586      +EUR50m
Holding company and other                (4)             4       +EUR8m
Total excl. 4G frequencies 
(800 MHz band)                          997            958      -EUR39m
4G frequencies (800 MHz band)             0            715(1)   +EUR715m 
TOTAL                                   997           1,673     +EUR676m 
(1)Includes acquisition cost and capitalised interest 
                  
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-0- Nov/15/2012 08:37 GMT
 
 
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