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 - firstname.lastname@example.org email@example.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 The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. 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Bouygues. Nine-month 2012 results
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