Bouygues: Full-year 2010 Results
By Bouygues, PRNEMonday, February 28, 2011
PARIS, March 1, 2011 -
- Strong Commercial Performance Across the Group
- Stable Sales: EUR31.2 Billion
- Current Operating Profit: EUR1.8 Billion (-5%)
- Net Profit: EUR1.1 Billion (-19%)
- Very Sound Financial Structure With an Improvement in net Gearing
- Stable Dividend: EUR1.60
Sales were stable in relation to 2009 at EUR31.2 billion (down
3% like-for-like and at constant exchange rates). Current operating profit
amounted to EUR1.8 billion, a drop of 5%. All business areas except Colas
posted good operating results. Net profit of EUR1.1 billion, down 19%,
includes a provision of EUR66 million (Bouygues' share) for the restructuring
plan announced by Alstom in October 2010. The financial structure is very
sound, with a 5-point improvement in net gearing to 23% and a high level of
free cash flow at EUR1 billion.
Key figures
2009 2010 Change
(EUR million)
Sales 31,353 31,225 =
Current operating profit 1,855 1,760 -5%
Operating profit 1,855 1,791(1) -3%
Net profit attributable to the 1,319 1,071 -19%
Group
Free cash flow 1,329 1,009 -24%
Net debt(2) 2,704 2,473 -EUR231m
Net gearing(2) 28% 23% -5 pts
(1) Including +EUR31 million of other operating income and expenses, or
+EUR83 million at TF1 and -EUR52 million at Colas
(2) End of period
Business areas
Bouygues Construction posted a solid operating performance.
Sales amounted to EUR9,235 million, an overall drop of 3%, or 5% in France
and 1% internationally. The operating margin remained stable on 2009 at 3.4%.
Net profit fell 16% to EUR201 million due to lower interest rates and a
higher tax charge.
Commercial results were excellent, especially on international
markets. In 2010, order intakes rose 16% to EUR10.9 billion, while the order
book at end-December 2010 reached a record high of EUR14.2 billion, up 18% on
end-December 2009. 55% of projects in the order book are located outside
France and 31% in emerging countries.
Bouygues Immobilier's results show a successful adaptation to
market conditions. Sales amounted to EUR2,418 million, a decrease of 19%
(down 7% in residential property and 48% in commercial property) and exceeded
the initial target set in March 2010 by EUR300 million due to the record
level of housing reservations and notarised deeds of sale in 2010. The
operating margin jumped by 1.6 points to 8.4% thanks to the restoration of
margins in the residential property segment. Net profit remained virtually
stable at EUR108 million, 2% lower than in 2009.
Bouygues Immobilier consolidated its leading position on the
French residential property market, taking a record 13,734 reservations, an
increase of 28%. The low level of commercial property reservations reflect a
market at a cyclical low. Overall, reservations rose 27% to EUR2,477 million.
Boosted by housing reservations, the order book at 31 December 2010 was up 5%
at EUR2,280 million.
Colas reported results in line with the expectations issued on
31 August 2010. Sales rose 1% to EUR11,661 million, down 1% in France and up
2% internationally. Like-for-like and at constant exchange rates, sales were
down 3%. The current operating margin fell 1.6 points compared with 2009 to
3.1%, mainly due to deteriorating conditions in Central Europe. Operating
profit fell 42% to EUR313 million, a figure which includes non-current items
relating to charges for former competition-related matters and write-downs of
goodwill in Central Europe. Net profit attributable to the Group amounted to
EUR224 million, a drop of 42%. Colas entered 2011 with a substantial order
book, worth EUR6.1 billion, and should gradually improve its profitability
following the implementation of an action plan in 2010.
TF1 recovered in 2010 as the result of a strategy that is
bearing fruit. Sales rose 11% to EUR2,622 million, driven by a pick-up in
advertising spend on the TF1 channel (up 8%) and by other activities (up
15%). TF1 continued to adapt its business model and cut costs, achieving
recurring savings of EUR32 million in 2010 to give total savings of EUR138
million since 2008. The current operating margin rose 4.5 points as a result.
Operating profit stood at EUR313 million. This figure includes non-current
income of EUR83 million, mainly generated by the remeasurement of
previously-held equity interests following the takeover of TMC and NT1. Net
profit attributable to the Group doubled to EUR228 million.
Bouygues Telecom continued its growth strategy in 2010. Total
sales rose 5% to EUR5,636 million and sales from network were up 4% at
EUR5,060 million. Stripping out the impact of the cut in voice and SMS call
termination rates, sales from network would have risen 14%. Bouygues Telecom
was able to offset the effect of reduced call termination rate differentials
and higher taxes, with EBITDA rising 2% to EUR1,367 million. Net profit fell
6% to EUR444 million, reflecting higher amortisation charges mainly linked to
commercial success in the fixed broadband business.
842,000 new mobile contract customers joined Bouygues Telecom
in 2010, representing 23% of net market growth(1). Bouygues Telecom had a
total of 11,084,000 customers at 31 December 2010, 79% of them on a call
plan, up 2.5 points over one year.
Strong growth continued in the fixed broadband business, with
154,000 new customers(2) signing up in the fourth quarter of 2010 and 494,000
over the year as a whole. Bouygues Telecom had 808,000 fixed broadband
customers at 31 December 2010.
(1) Arcep data
(2) The number of fixed broadband customers includes xDSL and
cable subscriptions
Alstom
Alstom contributed EUR235 million to Bouygues' net profit,
down 32%. The figure includes a provision of EUR66 million (Bouygues' share)
for the restructuring plan announced in October 2010. Alstom's commercial
performance rebounded in the third quarter of FY2010/2011 as order intakes
reached their highest level since the first quarter of FY2009/2010. Alstom is
strengthening its presence in emerging markets, which accounted for 60% of
orders in the third quarter, and has confirmed an operating margin target of
between 7% and 8% for FY2010/2011 and FY2011/2012.
Financial situation
Cash flow of EUR3.2 billion (down 5%) reflects the fall in
current operating profit. As expected net capital expenditure increased,
rising 12% to EUR1.4 billion. Free cash flow remained high at EUR1 billion.
The Group had net debt of EUR2.5 billion at year-end, EUR231
million less than at end-December 2009. Net gearing improved five points to
23%.
Bouygues is rated A- with stable outlook by Standard & Poor's,
a rating unchanged since 2001.
The Group bought back 4.8 million Bouygues shares in 2010 at a
total cost of EUR155 million.
Dividend
The Board of Directors will ask the Annual General Meeting on
21 April 2011 to approve the payment of a dividend of EUR1.60 per share,
stable on 2009. The ex-date, record date and payment date have been set at 29
April, 3 May and 4 May 2011 respectively.
Board of Directors
The Board of Directors will ask the next Annual General
Meeting to renew the terms of office of Patricia Barbizet, Hervé Le Bouc,
Helman le Pas de Sécheval and Nonce Paolini.
Outlook
The order book at end-2010 and market prospects enable
Bouygues to set a 2011 sales target of EUR31.7 billion, up 2%.
Sales by business 2010 2011 %
area target change
(EUR million)
Bouygues 9,235 9,400 +2%
Construction
Bouygues Immobilier 2,418 2,440 +1%
Colas 11,661 11,800 +1%
TF1 2,622 2,630 =
Bouygues Telecom 5,636 5,730 +2%
Holding company and 132 120 ns
other
Intra-Group (479) (420) ns
elimination
TOTAL 31,225 31,700 +2%
o/w France 21,506 22,000 +2%
o/w international 9,719 9,700 =
Remuneration of executive directors
In accordance with Afep/Medef recommendations, information on
the remuneration of executive directors and the grant of stock options will
be published today on www.bouygues.com, under Finance/Shareholders,
Regulated information.
Financial calendar:
16 May 2011: first-quarter 2011 sales and earnings (5.45pm CET)
30 August 2011: first-half 2011 results (5.45pm CET)
31 August 2011: first-half 2011 results presentation
The financial statements have been audited and the statutory auditors
have issued a report certifying them without reserve.
Find the full financial statements and notes to the financial
statements on www.bouygues.com.
The full-year 2010 results presentation to financial analysts will be
webcast live on 2 March 2011 at 11am (CET) on www.bouygues.com.
2009 2010 % change
Condensed consolidated
income statement
(EUR million)
Sales 31,353 31,225 =
Current operating profit 1,855 1,760 -5%
Other operating income and 0 311 ns
expenses
Operating profit 1,855 1,791 -3%
Cost of net debt (344) (330) -4%
Other financial income and 25 6 ns
expenses
Income tax expense (487) (482) -1%
Share of profits and losses from 393 278 -29%
associates
Net profit from continuing 1,442 1,263 -12%
operations
Net profit from discontinued or 14 0 ns
held-for-sale operations
Net profit 1,456 1,263 -13%
Minority interests (137) (192) +40%
Net profit attributable to the 1,319 1,071 -19%
Group
1Other operating income and expenses include:
- TF1: non-current income of EUR83 million mainly generated by the
remeasurement of the previously-held equity interests following the
takeover of TMC and NT1
- Colas: non-current items of -EUR52 million mainly relating to charges
for former competition-related matters and write-downs of goodwill in
Central Europe
Fourth-quarter consolidated Fourth-quarter %
income statement change
(EUR million)
2009 2010
Sales 8,185 8,158 =
Current operating profit 394 432 +10%
Operating profit 394 393(1) =
Net profit attributable to the 295 148 -50%
Group
(1) Including -EUR39 million of other operating income and expenses,
or -EUR13 million at TF1 and -EUR26 million at Colas
End-2009 End-2010
Condensed consolidated
balance sheet
(EUR million)
Non-current assets 17,700 18,620
Current assets 16,235 16,966
TOTAL ASSETS 33,935 35,586
Shareholders' equity 9,726 10,607
Non-current liabilities 8,250 8,732
Current liabilities 15,959 16,247
TOTAL LIABILITIES 33,935 35,586
Net debt 2,704 2,473
2009 2010 %
change
Sales %
change
by business area like-for-like
and at
(EUR million) constant
exchange
rates
Bouygues Construction 9,546 9,235 -3% -5%
Bouygues Immobilier 2,989 2,418 -19% -20%
Colas 11,581 11,661 +1% -3%
TF1 2,365 2,622 +11% +9%
Bouygues Telecom 5,368 5,636 +5% +5%
Holding company and 134 132 ns ns
other
Intra-Group (630) (479) ns ns
elimination
Total 31,353 31,225 = -3%
o/w France 21,678 21,506 -1% -2%
o/w international 9,675 9,719 = -5%
2009 2010
Contribution of business areas %
to change
EBITDA
(EUR million)
Bouygues Construction 746 606 -19%
Bouygues Immobilier 269 184 -32%
Colas 1,109 894 -19%
TF1 194 319 +64%
Bouygues Telecom 1,344 1,367 +2%
Holding company and other (46) (40) ns
TOTAL 3,616 3,330 -8%
2009 2010
Contribution of business areas %
to change
Current operating profit
(EUR million)
Bouygues Construction 335 315 -6%
Bouygues Immobilier 203 204 =
Colas 541 365 -33%
TF1 101 230 x2
Bouygues Telecom 730 692 -5%
Holding company and other (55) (46) ns
TOTAL 1,855 1,760 -5%
2009 2010 %
change
Contribution of business areas
to
Operating profit
(EUR million)
Bouygues Construction 335 315 -6%
Bouygues Immobilier 203 204 =
Colas 541 313 -42%
TF1 101 313 x3
Bouygues Telecom 730 692 -5%
Holding company and other (55) (46) ns
TOTAL 1,855 1,791 -3%
2009 2010
Contribution of business areas %
to change
Net profit attributable to the
Group
(EUR million)
Bouygues Construction 240 201 -16%
Bouygues Immobilier 110 108 -2%
Colas 374 216 -42%
TF1 49 98 x2
Bouygues Telecom 422 397 -6%
Alstom 346 235 -32%
Holding company and other (222) (184) ns
TOTAL 1,319 1,071 -19%
End-2009 End-2010
Net cash by business area Change
(EUR million) (EUR
million)
Bouygues Construction 3,285 2,856 -EUR429m
Bouygues Immobilier 146 376 +EUR230m
Colas 116 (57) -EUR173m
TF1 73 17 -EUR56m
Bouygues Telecom (294) (170) +EUR124m
Holding company and other (6,030) (5,495) +EUR535m
TOTAL (2,704) (2,473) +EUR231m
2009 2010
Contribution of business areas
to
Change
Cash flow
(EUR
(EUR million) million)
Bouygues Construction 569 509 -EUR60m
Bouygues Immobilier 181 195 +EUR14m
Colas 1,066 814 -EUR252m
TF1 186 297 +EUR111m
Bouygues Telecom 1,340 1,327 -EUR13m
Holding company and other 88 102 +EUR14m
TOTAL 3,430 3,244 -EUR186m
2009 2010
Contribution of business areas
to
Change
Net capital expenditure (EUR
million)
(EUR million)
Bouygues Construction 142 221 +EUR79m
Bouygues Immobilier 6 4 -EUR2m
Colas 362 474 +EUR112m
TF1 70 43 -EUR27m
Bouygues Telecom 683 680 -EUR3m
Holding company and other 7 1 -EUR6m
TOTAL 1,270 1,423 +EUR153m
Press contact: +33(0)1-44-20-12-01 - presse at bouygues.com; Investors & analysts contact: +33(0)1-44-20-10-79 - investors at bouygues.com
Tags: Bouygues, France, March 1, Paris
