PRESS RELEASE – PARIS – 21/02/2019
FULL-YEAR 2018 RESULTS
·Sharp improvement in fourth-quarter group profitability
·Rise in current operating profit and in net profit attributable to the Group
·Solid commercial performance in the three sectors of activity
·Dividend at €1.70 per share1
The consolidated financial statements at 31 December 2018 are presented in comparison with the financial statements at 31 December 2017, restated to take account of the application of IFRS 15 and of IFRS 9 on 1 January 2018. The impacts on 2017 results are shown in the notes to the 2018 consolidated financial statements (Note 23).
| KEY FIGURES (€ million) | 2017 restated | 2018 | Change | |||
| Sales | 32,923 | 35,555 | +8%a | |||
| Current operating profit | 1,406 | 1,511 | +€105m | |||
| o/w impact of Nextdoor in 2017 and Axione in 2018b | 28 | 106 | +€78m | |||
| Current operating margin | 4.3 | % | 4.2 | % | -0.1 pts | |
| Operating profitc | 1,519 | 1,776 | +€257m | |||
| Net profit attributable to the Group | 1,082 | 1,311 | +€229m | |||
| Net profit attributable to the Group excl. exceptional itemsd | 908 | 1,047 | +€139m | |||
| Net debt (-)/Net surplus cash (+) | (1,917 | ) | (3,657 | ) | -€1,740m | |
(a) Up 3% like-for-like and at constant exchange rates
(b) Capital gain related to the partial divestment of shares and remeasurement of the residual interest in Nextdoor in 2017 and Axione in 2018
(c) Including non-current income of €113m in 2017 and €265m in 2018 mainly related to capital gains on the sale of mobile sites and FTTH infrastructure at Bouygues Telecom (see details on page 9)
(d) See reconciliation on page 11
([1]) Proposed to the Annual General Meeting on 25 April 2019
The Group increased its results year-on-year, boosted by a significant improvement in current operating profit across its three sectors of activity in fourth-quarter 2018.
The Group reported sales of €35.6 billion in 2018, up 8% over 2017 (up 3% like-for-like and at constant exchange rates).
Current operating profit was €1,511 million versus €1,406 million in 2017, driven by the very strong performance of Bouygues Telecom. It includes a capital gain of €106 million related to the divestment of 49% of Axione and remeasurement of the residual interest. Current operating profit in 2017 included a capital gain of €28 million related to the divestment of 50% of Nextdoor.
Restated for these two exceptional items, the Group’s current operating profit would have increased €27 million year-on-year.
The operating performance of the Group’s three sectors of activity in fourth-quarter 2018 offset the difficulties encountered in third-quarter 2018 on three projects at Bouygues Energies & Services and in Colas’ specialized activities in France.
The Group’s operating profit was €1,776 million, versus €1,519 million in 2017, an increase of 17%. It included non-current income of €265 million, €250 million of which was related to capital gains on the sale of mobile sites and FTTH infrastructure at Bouygues Telecom (compared to €113 million in 2017).
Net profit attributable to the Group in 2018 was €1,311 million, up €229 million year-on-year. Excluding exceptional items, net profit attributable to the Group was €1,047 million, up 15% year-on-year.
Robust commercial momentum in all activities was another feature of 2018:
- At Bouygues Telecom, 573,000 new mobile plan customers excluding MtoM and 304,000 new FTTH customers in 2018;
- A backlog in the construction businesses at end-December 2018 at a record level of €33.1 billion, up 5% year-on-year and up 7% at constant exchange rates;
- TV advertising sales at TF1’s five unencrypted channels up 1% in 2018.
OUTLOOK2
The Group’s activities are positioned on markets that offer opportunities for growth:
- Strong worldwide demand for complex projects, more sophisticated and integrated offers, and maintenance;
- Significant appetite for premium and exclusive video content that can be monetized via data analysis (consumption, usage, profiles, etc.);
- Explosion in B2C and B2B fixed and mobile usage.
In this favorable environment, the Group can use its robust competitive advantages to:
- In 2019, improve the Group profitability and generate €300 million of free cash flow3 at Bouygues Telecom;
- Within two years, increase the Group free cash flow generation after WCR 4 to €1 billion thanks to the contribution of the three sectors of activity.
(2) Before application of IFRS 16
(3) Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR
(4) Free cash flow after WCR = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated after changes in WCR related to operating activities and excluding 5G frequencies
DETAILED ANALYSIS BY SECTOR OF ACTIVITY
CONSTRUCTION BUSINESSES
The backlog in the construction businesses at end-December 2018 reached a record €33.1 billion, up 5% versus end-December 2017, and up 7% at constant exchange rates. It includes a backlog of €1.8-billion at the Miller McAsphalt group, Alpiq Engineering Services and AW Edwards.
In France, the backlog in the construction businesses at 31 December 2018 was stable excluding Axione5 at €14.4 billion.
The backlog at Bouygues Construction at end-December 2018 was €8.6 billion, down slightly by 1% excluding Axione5. In fourth-quarter 2018, it included the Ivry – Confluences property development project for €88 million. In the context of a declining residential property market and with the postponement of commercial property projects to 2019, the backlog at Bouygues Immobilier at 31 December 2018 was down 8% year-on-year at €2.4 billion. The backlog at Colas was €3.4 billion, up 8% versus 31 December 2017, driven by a growing roads market and rail order intake. In fourth-quarter 2018, Colas won a €52-million contract to resurface Runway 3 at Paris-Orly airport.
In international markets, the Group is well-positioned in expanding markets. The backlog at 31 December 2018 was €18.8 billion, up 13% year-on-year and up 17% at constant exchange rates (up 5% at constant exchange rates and excluding the Miller McAsphalt group, Alpiq Engineering Services and AW Edwards). It includes significant fourth-quarter orders such as the widening of a section of the Istria motorway in Croatia at Bouygues Construction for €167 million, and the construction of the Liège tram line at Colas for €266 million.
At end-December 2018, international business represented 61% of the backlog at Bouygues Construction and Colas, versus 57% at end-December 2017.
In fourth-quarter 2018, current operating profit for the construction businesses was €509 million, up €145 million year-on-year. It included a capital gain of €106 million related to the partial divestment of Axione6. Restated for the impact of that transaction, it was up €39 million year-on-year. This increase reflects, at Bouygues Construction, continued good performance in building and civil works and the return to a positive contribution from Bouygues Energies & Services, and at Colas, higher profitability in roads in mainland France. Current operating profit at Bouygues Immobilier was down €19 million in fourth-quarter 2018 due notably to the postponement of a commercial property project until the first half of 2019.
(5) After restatement in 2017 of Axione’s backlog for €0.5 billion, following the deconsolidation of Axione in 2018 (divestment of 49% of Axione to Mirova on 31 December 2018)
(6) Capital gain related to the partial divestment of shares and remeasurement of the residual interest. Axione will be recognized and accounted for using the equity method from 2019
The construction businesses reported sales of €28 billion in 2018, up 8% year-on-year and up 3% like-for-like and at constant exchange rates. Current operating profit was €915 million, down €28 million.
Restated for the impact of Nextdoor1 in 2017 and Axione1 in 2018, current operating profit decreased €106 million, due mainly to the difficulties encountered in third-quarter 2018 on three energy and services projects and in Colas’ specialized activities. In line with expectation, the current operating margin was 60 basis points lower at 2.9%.
The Group remains confident in the medium-to long-term prospects of the construction businesses. In this favorable context, its business segments aim to develop the most value-creating activities, such as urban development, eco-neighborhoods, smart cities, energy and services, industrial activities (aggregates and bitumen) and smart roads.
2019 will be characterized by the integration of the acquisitions completed in 2018: the Miller McAsphalt group at Colas, Alpiq Engineering Services at Bouygues Construction and Colas, and AW Edwards at Bouygues Construction.
Changes to senior management will be another characteristic, including the appointment of a new senior management team at Bouygues Immobilier and the arrival of a new Deputy CEO at Bouygues Energies & Services.
2019 will also be a year of strategic refocusing and adaptation to boost the profitability of the construction businesses. Colas is working to reposition Colas Rail in France by diversifying its customer base and reducing its freight business. Colas will also dispose of non-strategic activities such as Smac, as announced on 14 February 2019.
(7) Capital gain related to the partial divestment of shares and remeasurement of the residual interest in Nextdoor in 2017 and Axione in 2018
TF1
For the third straight year, TF1 grew its audience share in its target market of women under 50 who are purchasing decision-makers. It reached 32.6% in 2018, up 0.3 points year-on-year.
TF1 reported sales of €2,288 million, an increase of 7% versus 2017, reflecting good performance in advertising sales at the five unencrypted channels thanks to higher audience share, the impact of premium agreements signed with telecom operators and Canal+, and TF1’s expansion in content production and digital activities.
Current operating profit was €196 million in 2018, up €11 million versus 2017, in a year which included the Soccer World Cup. This increase reflected the group’s tight control on cost of programs, which was €943 million excluding the World Cup costs versus €984 million in 2017.
The current operating margin, including the cost of screening the Soccer World Cup, was stable at 8.6% (down 0.1 points year-on-year). Excluding World Cup costs, it would have been 11.7%.
Operating profit was €174 million, including, for the final year, non-current charges of €22 million corresponding to the amortization of audiovisual rights remeasured as part of the acquisition of Newen Studios.
For 2019, TF1 confirmed its target of a double-digit current operating margin.
BOUYGUES TELECOM
Bouygues Telecom continued its good commercial momentum in 2018 and recorded robust growth in its financial results.
The company added over 1,963,000 mobile customers in 2018, of which 587,000 were in fourth-quarter 2018, for a total of 16.4 million mobile customers at end-December 2018. Mobile plan customers excluding MtoM reached 10.9 million, with 573,000 new adds in 2018, of which 121,000 were in fourth-quarter 2018.
In the fixed segment, Bouygues Telecom accelerated its sign-up of FTTH customers, with 102,000 new adds
in fourth-quarter 2018 making it the best quarter since fiber offers were launched. The company doubled
its FTTH penetration rate year-on-year to 16% at end-2018. It had 569,000 FTTH customers at 31 December 2018.
The company had a total of 3.7 million fixed customers at end-December 2018, a year-on-year increase of 235,000, of which 73,000 were in fourth-quarter 2018.
Bouygues Telecom continued to bring very-high-speed fixed to as many consumers as possible. It had 30.6 million premises secured at 31 December 2018 (up 10.6 million versus end-2017), and 7.2 million premises marketed (up 3.2 million versus end-2017). The partnership agreement with CityFast8 in fourth-quarter 2018 covering 3.4 million premises enabled Bouygues Telecom to secure 100% of premises in the Very Dense Area.
Bouygues Telecom reported sales of €5,344 million in 2018, up 6% year-on-year. Sales from services rose 5% to €4,256 million.
EBITDA reached €1,268 million, €171 million more than in 2017. The EBITDA margin was 29.8%, up 2.8 points year-on-year. This strong growth reflects a higher-than-expected increase in sales from services and the on-going efforts to maintain an efficient cost base.
Current operating profit was €431 million in 2018, up €111 million year-on-year.
Operating profit was €753 million in 2018, up 63% versus 2017. It included non-current income of €250 million related to capital gains on the sale of mobile sites and FTTH infrastructure, and €110 million related to the cancellation of fees paid for the use of 1800 MHz frequencies prior to 2018, and non‑current charges of €47 million related to network sharing.
Gross capex was €1,242 million, in line with expectations.
Free cash flow was €188 million in 2018, up €131 million versus 2017. Bouygues Telecom is thus well-positioned to reach its free cash flow9 target of €300 million in 2019.
As part of its strategy, Bouygues Telecom’s goal is to differentiate via a quality customer experience. The company launched over 200 projects to make the user experience seamless and to meet customers expectations faster. Moreover, high-quality networks ensure that customers benefit from a reliable mobile and fixed access. The company has set a target of over 28,000 mobile sites by end-2023 and of 12 million FTTH premises marketed by end-2019 (20 million in 2022).
Bouygues Telecom is also planning to accelerate its expansion in B2B by increasing its fixed market share among large firms and expanding its fixed and mobile market share among SMEs notably thanks to external growth, as illustrated by the acquisition of Keyyo10.
(8) An FTTH access services provider in the Very Dense Area owned by Axione and Mirova
(9] Free cash flow = cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated before changes in WCR
(10) Acquisition of a 43.6% stake in Keyyo on 18 January 2019 and a public tender offer by Bouygues Telecom with a view to holding 100% of Keyyo shares
ALSTOM
As announced on 14 November 2018, Alstom’s contribution to the Group’s net profit in 2018 was €230 million, versus a contribution of €105 million in 2017.
Since end-2017, Alstom and Siemens Mobility have been working on a plan to merge their activities in order to create a European champion in transportation. The European Commission vetoed the plan on 6 February 2019 despite the remedies proposed by the two firms.
With a robust financial structure and a record backlog of €40 billion11, representing five years of sales, Alstom will now focus on pursuing growth in a buoyant market.
Bouygues is confident in the future of Alstom and its capacity to pursue its development.
(11) For the first nine months of Alstom’s FY 2018/19
FINANCIAL SITUATION
The Group maintained a healthy and solid financial position.
Net debt at 31 December 2018 was €3.7 billion versus €1.9 billion at 31 December 2017. The change mainly reflects recent acquisitions (the Miller McAsphalt group, aufeminin and Alpiq Engineering Services).
Furthermore, the Bouygues group has a high level of available cash of €10 billion at end-2018.
DIVIDEND
The Board of Directors will ask at the Annual General Meeting of 25 April 2019 for the approval of a dividend payment of €1.70 per share, the same as in 2017. The ex-date, record date and payment date have been set at 30 April, 2 May and 3 May 2019 respectively.
BOARD OF DIRECTORS
The Board of Directors will seek at the Annual General Meeting of 25 April 2019 the renewal of the terms of office of Olivier Bouygues, Clara Gaymard, Colette Lewiner, Rose-Marie Van Lerberghe, Michèle Vilain, SCDM and SCDM Participations, and the appointment of Raphaëlle Deflesselle as director representing employee shareholders, in replacement of Sandra Nombret.
Subject to approval by the Annual General Meeting, the ratio of independent directors12 will be 50% and of women directors13 58%.
(12) Excluding directors representing employees or employee shareholders
(13) Excluding directors representing employees
REMUNERATION OF CORPORATE OFFICERS
In accordance with Afep-Medef recommendations, information about the remuneration of corporate officers and stock options granted is released today on the www.bouygues.com website under Finance/Shareholders, Regulated information.
Financial calendar
- 25 April 2019: Bouygues Annual General Meeting
- 3 May 2019: Dividend payment
- 16 May 2019: First-quarter 2019 results (7.30am CET)
- 29 August 2019: First-half 2019 results (7.30am CET)
- 14 November 2019: Nine-month 2019 results (7.30am CET)
The financial statements have been audited and the statutory auditors have issued a report certifying them without reserve.
Please find the full financial statements and notes to the financial statements on www.bouygues.com
The full-year results presentation to financial analysts will be webcast live on 21 February 2019 at 11am (CET) on www.bouygues.com
Investors and analysts contact:
investors@bouygues.com • Tel.: +33 (0)1 44 20 10 79
Press contact:
presse@bouygues.com • Tel.: +33 (0)1 44 20 12 01
| BOUYGUES SA • 32 avenue Hoche • 75378 Paris CEDEX 08 • www.bouygues.com | |
2018 BUSINESS ACTIVITY
| BACKLOG AT THE CONSTRUCTION BUSINESSES (€ million) | End-December | |||
| 2017 restated | 2018 | Change | ||
| Bouygues Construction | 21,177 | 22,183 | +5 | % |
| Bouygues Immobilier | 2,709 | 2,478 | -9 | % |
| Colas | 7,584 | 8,485 | +12 | % |
| Total | 31,470 | 33,146 | +5 | % |
| BOUYGUES CONSTRUCTION ORDER INTAKE (€ million) | ||||
| 2017 | 2018 | Change | ||
| France | 6,175 | 5,834 | -6 | % |
| International | 6,955 | 8,706 | +25 | % |
| Total | 13,130 | 14,540 | +11 | % |
| BOUYGUES IMMOBILIER RESERVATIONS (€ million) | ||||
| 2017 | 2018 | Change | ||
| Residential property | 2,636 | 2,337 | -11 | % |
| Commercial property | 429 | 277 | -35 | % |
| Total | 3,065 | 2,614 | -15 | % |
| COLAS BACKLOG (€ million) | End-December | |||
| 2017 | 2018 | Change | ||
| Mainland France | 3,161 | 3,414 | +8 | % |
| International and French overseas territories | 4,423 | 5,071 | +15 | % |
| Total | 7,584 | 8,485 | +12 | % |
| TF1 AUDIENCE SHAREa | ||||||
| 2017 | 2018 | Change | ||||
| Total | 32.3 | % | 32.6 | % | +0.3 pts | |
(a) Source: Médiamétrie – women under 50 who are purchasing decision-makers
BOUYGUES TELECOM CUSTOMER BASE (‘000) | End-December | ||
| 2017 | 2018 | Change | |
| Mobile customer base excl. MtoM | 10,998 | 11,414 | +416 |
| Mobile plan base excl. MtoM | 10,317 | 10,890 | +573 |
| Total mobile customers | 14,387 | 16,351 | +1,963 |
| Total fixed customers | 3,442 | 3,676 | +234 |
2018 FINANCIAL PERFORMANCE
| CONDENSED CONSOLIDATED INCOME STATEMENT (€ million) | 2017 restated | 2018 | Change | |||
| Sales | 32,923 | 35,555 | +8%a | |||
| Current operating profit | 1,406 | 1,511 | +€105m | |||
| Other operating income and expenses | 113b | 265c | +€152m | |||
| Operating profit | 1,519 | 1,776 | +€257m | |||
| Cost of net debt | (226 | ) | (216 | ) | +€10m | |
| Other financial income and expenses | 38 | 17 | -€21m | |||
| Income tax | (299 | ) | (427 | ) | -€128m | |
| Share of net profit of joint ventures and associates | 169 | 303 | +€134m | |||
| o/w Alstom | 105 | 230 | +€125m | |||
| Net profit from continuing operations | 1,201 | 1,453 | +€252m | |||
| Net profit attributable to non-controlling interests | (119 | ) | (142 | ) | -€23m | |
| Net profit attributable to the Group | 1,082 | 1,311 | +€229m | |||
| Net profit attributable to the Group excl. exceptional items | 908 | 1,047 | +€139m | |||
(a) Up 3% like-for-like and at constant exchange rates
(b) Including non-current charges of €23m at TF1 corresponding to amortization of audiovisual rights remeasured as part of the acquisition of Newen Studios, of €5m at Colas related to preliminary works for the dismantling of the Dunkirk site and non-current income of €141m at Bouygues Telecom (of which non-current income of €223m related to the capital gain on the sale of sites and non-current charges of €79m related to network sharing)
(c) Including non-current charges of €31m at Colas mainly related to works for the dismantling of the Dunkirk site and the one-off year-end bonus, of €22m at TF1 corresponding to amortization of audiovisual rights remeasured as part of the acquisition of Newen Studios, of €4m at Bouygues Construction related to the one-off year-end bonus and non-current income of €322m at Bouygues Telecom (of which non-current income of €110m related to the cancellation of fees paid for the use of 1800 MHz frequencies and of €250m related to the capital gain on the sale of mobile sites and FTTH infrastructure and non-current charges of €47m related to network sharing)
| CALCULATION OF EBITDA (€ million) | 2017 restated | 2018 | Change | ||
| Current operating profit | 1,406 | 1,511 | +€105m | ||
| Net depreciation and amortization expense | 1,596 | 1,703 | +€107m | ||
| Charges to provisions and impairment losses, net of reversals due to utilization | 330 | 417 | +€87m | ||
| Reversals of unutilized provisions and impairment losses and other | (434 | ) | (487 | ) | -€53m |
| EBITDA | 2,898 | 3,144 | +€246m | ||
| SALES BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | Forex effect | Scope effect | lfl & | ||||||
| constant fx | ||||||||||||
| Construction businessesa | 25,790 | 27,966 | 8.4 | % | 1.4 | % | -6.9 | % | 3.0 | % | ||
| o/w Bouygues Construction | 11,660 | 12,358 | 6.0 | % | 1.7 | % | -6.5 | % | 1.2 | % | ||
| o/w Bouygues Immobilier | 2,749 | 2,628 | -4.4 | % | 0.0 | % | 0.8 | % | -3.6 | % | ||
| o/w Colas | 11,705 | 13,190 | 12.7 | % | 1.4 | % | -8.9 | % | 5.3 | % | ||
| TF1 | 2,132 | 2,288 | 7.3 | % | 0.0 | % | -5.4 | % | 1.9 | % | ||
| Bouygues Telecom | 5,060 | 5,344 | 5.6 | % | - | - | 5.6 | % | ||||
| Bouygues SA and other | 143 | 168 | nm | - | - | nm | ||||||
| Intra-Group eliminationsb | (526 | ) | (421 | ) | nm | - | - | nm | ||||
| Group sales | 32,923 | 35,555 | 8.0 | % | 1.1 | % | -5.7 | % | 3.4 | % | ||
| o/w France | 21,008 | 21,788 | 3.7 | % | 0.0 | % | -0.2 | % | 3.5 | % | ||
| o/w international | 11,915 | 13,767 | 15.5 | % | 3.1 | % | -15.4 | % | 3.3 | % | ||
(a) Total of the sales contributions (after eliminations within the construction businesses)
(b) Includes intra-Group eliminations of the construction businesses
| CONTRIBUTION TO GROUP EBITDA BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | ||
| Construction businesses | 1,434 | 1,427 | -€7m | ||
| o/w Bouygues Construction | 472 | 491 | +€19m | ||
| o/w Bouygues Immobilier | 226 | 161 | -€65m | ||
| o/w Colas | 736 | 775 | +€39m | ||
| TF1 | 392 | 470 | +€78m | ||
| Bouygues Telecom | 1,097 | 1,268 | +€171m | ||
| Bouygues SA and other | (25 | ) | (21 | ) | +€4m |
| Group EBITDA | 2,898 | 3,144 | +€246m | ||
| CONTRIBUTION TO GROUP CURRENT OPERATING PROFIT BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | ||
| Construction businesses | 943 | 915 | -€28m | ||
| o/w Bouygues Construction | 363 | 368 | +€5m | ||
| o/w Bouygues Immobilier | 218 | 188 | -€30m | ||
| o/w Colas | 362 | 359 | -€3m | ||
| TF1 | 185 | 196 | +€11m | ||
| Bouygues Telecom | 320 | 431 | +€111m | ||
| Bouygues SA and other | (42 | ) | (31 | ) | +€11m |
| Group current operating profit | 1,406 | 1,511 | +€105m | ||
| CONTRIBUTION TO GROUP OPERATING PROFIT BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | ||
| Construction businesses | 938 | 880 | -€58m | ||
| o/w Bouygues Construction | 363 | 364 | +€1m | ||
| o/w Bouygues Immobilier | 218 | 188 | -€30m | ||
| o/w Colas | 357 | 328 | -€29m | ||
| TF1 | 162 | 174 | +€12m | ||
| Bouygues Telecom | 461 | 753 | +€292m | ||
| Bouygues SA and other | (42 | ) | (31 | ) | +€11m |
| Group operating profit | 1,519a | 1,776b | +€257m | ||
(a) Including non-current charges of €23m at TF1 corresponding to amortization of audiovisual rights remeasured as part of the acquisition of Newen Studios, of €5m at Colas related to preliminary works for the dismantling of the Dunkirk site and non-current income of €141m at Bouygues Telecom (of which non-current income of €223m related to the capital gain on the sale of sites and non-current charges of €79m related to network sharing)
(b) Including non-current charges of €31m at Colas mainly related to works for the dismantling of the Dunkirk site and the one-off year-end bonus, of €22m at TF1 corresponding to amortization of audiovisual rights remeasured as part of the acquisition of Newen Studios, of €4m at Bouygues Construction related to the one-off year-end bonus and non-current income of €322m at Bouygues Telecom (of which non-current income of €110m related to the cancellation of fees paid for the use of 1800 MHz frequencies and of €250m related to the capital gain on the sale of mobile sites and FTTH infrastructure and non-current charges of €47m related to network sharing)
| CONTRIBUTION TO NET PROFIT ATTRIBUTABLE TO THE GROUP BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | ||
| Construction businesses | 762 | 653 | -€109m | ||
| o/w Bouygues Construction | 319 | 296 | -€23m | ||
| o/w Bouygues Immobilier | 126 | 138 | +€12m | ||
| o/w Colas | 317 | 219 | -€98m | ||
| TF1 | 60 | 56 | -€4m | ||
| Bouygues Telecom | 231 | 447 | +€216m | ||
| Alstom | 105 | 230 | +€125m | ||
| Bouygues SA and other | (76 | ) | (75 | ) | +€1m |
| Net profit attributable to the Group | 1,082 | 1,311 | +€229m | ||
| Net profit attributable to the Group excl. exceptional itemsa | 908 | 1,047 | +€139m | ||
(a) See reconciliation below
| IMPACT OF EXCEPTIONAL ITEMS ON NET PROFIT ATTRIBUTABLE TO THE GROUP (€ million) | 2017 restated | 2018 | Change | ||
| Net profit attributable to the Group | 1,082 | 1,311 | +€229m | ||
| o/w non-current income/charges related to the construction businesses (net of taxes) | 3 | 24 | +€21m | ||
| o/w non-current income/charges related to TF1 (net of taxes) | 7 | 6 | -€1m | ||
| o/w non-current income/charges related to Bouygues Telecom (net of taxes) | (72 | ) | (193 | ) | -€121m |
| o/w impacta of divestment of Axione (2018) and Nextdoor (2017) | (25 | ) | (101 | ) | -€76m |
| o/w reimbursement of the 3% tax on dividends | (87 | ) | 0 | +€87m | |
| Net profit attributable to the Group excl. exceptional items | 908 | 1,047 | +€139m | ||
(a) Capital gain related to the partial divestment of shares and remeasurement of the residual interest
| NET SURPLUS CASH (+)/NET DEBT (-) BY BUSINESS SEGMENT (€ million) | |||||
| End-Dec 2017 restated | End-Dec 2018 | Change | |||
| Bouygues Construction | 3,409 | 3,119 | -€290m | ||
| Bouygues Immobilier | (86 | ) | (238 | ) | -€152m |
| Colas | 433 | (517 | ) | -€950m | |
| TF1 | 257 | (28 | ) | -€285m | |
| Bouygues Telecom | (976 | ) | (1,278 | ) | -€302m |
| Bouygues SA and other | (4,954 | ) | (4,715 | ) | +€239m |
| TOTAL | (1,917 | ) | (3,657 | ) | -€1,740m |
| CONTRIBUTION TO NET CAPITAL EXPENDITURE BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change |
| Construction businesses | 488 | 497 | +€9m |
| o/w Bouygues Construction | 119 | 201 | +€82m |
| o/w Bouygues Immobilier | 14 | 8 | -€6m |
| o/w Colas | 355 | 288 | -€67m |
| TF1 | 198 | 204 | +€6m |
| Bouygues Telecom | 726 | 865 | +€139m |
| Bouygues SA and other | 10 | 7 | -€3m |
| TOTAL | 1,422 | 1,573 | +€151m |
| CONTRIBUTION TO GROUP FREE CASH FLOW BY SECTOR OF ACTIVITY (€ million) | 2017 restated | 2018 | Change | ||
| Construction businesses | 707 | 609 | -€98m | ||
| o/w Bouygues Construction | 274 | 106 | -€168m | ||
| o/w Bouygues Immobilier | 113 | 126 | +€13m | ||
| o/w Colas | 320 | 377 | +€57m | ||
| TF1 | 127 | 159 | +€32m | ||
| Bouygues Telecom | 57 | 188 | +€131m | ||
| Bouygues SA and other | (27 | ) | (41 | ) | -€14m |
| TOTAL | 864 | 915 | +€51m | ||
APPLICATION OF IFRS 16 (LEASES) FROM 1 JANUARY 2019
| MAIN IMPACTS ON 2018 GROUP FINANCIAL STATEMENTSa (€ million) | 2018 reported | IFRS 16 impacts | 2018 restated after application of IFRS 16 | Neutralization of IFRS 16 lease impacts | 2018 adjusted | |||
| EBITDA | 3,144 | +367 | 3,511 | |||||
| Current operating profit | 1,511 | +53 | 1,564 | |||||
| Operating profit | 1,776 | +53 | 1,829 | |||||
| Cost of net debt | (216 | ) | -57 | (273 | ) | |||
| Net profit attributable to the Group | 1,311 | -3 | 1,308 | |||||
| Net debt (-)/Net surplus cash (+) | (3,657 | ) | -1,591 | (5,248 | ) | +1,636 | (3,612 | ) |
(a) All of the restated financial statements above are provisional pending final quantification in the Group’s information systems; they have not been subject to any audit or limited review by the statutory auditors
The impacts of IFRS 16 by business segments are shown in Note 24 to the consolidated financial statements
GLOSSARY
4G consumption: data consumed on 4G cellular networks, excluding Wi-Fi.
4G users: customers who have used the 4G network during the last three months (Arcep definition).
ABPU (Average Billing Per User):
- In the mobile segment, it is equal to the total of mobile sales billed to customers (B2C or B2B) divided by the
average number of customers over the period. It excludes MtoM SIM cards and free SIM cards.
- In the fixed segment, it is equal to the total of fixed sales billed to customers (excluding B2B) divided by the
average number of customers over the period.
BtoB (business to business): when one business makes a commercial transaction with another.
Backlog (Bouygues Construction, Colas): the amount of work still to be done on projects for which a firm order has been taken, i.e. the contract has been signed and has taken effect (after notice to proceed has been issued and suspensory clauses have been lifted).
Backlog (Bouygues Immobilier): sales outstanding from notarized sales plus total sales from signed reservations that have still to be notarized.
Under IFRS 11, Bouygues Immobilier’s backlog does not include sales from reservations taken via companies accounted for by the equity method (co-promotion companies where there is joint control).
Construction businesses: Bouygues Construction, Bouygues Immobilier and Colas.
EBITDA: current operating profit before net depreciation and amortization expense, net provisions and impairment losses, reversals of unutilized provisions and impairment losses and before effects of acquisition/loss of control.
EBITDA margin (Bouygues Telecom): EBITDA/sales from services.
Free cash flow: cash flow minus cost of net debt minus income tax expense minus net capital expenditures. It is calculated before changes in WCR. The calculation of free cash flow by business segment is set out in Note 16 “Segment information” to the consolidated financial statements at 31 December 2018, available at bouygues.com.
Free cash flow after WCR: cash flow - cost of net debt - income tax expense - net capital expenditure. It is calculated after changes in WCR related to operating activities
FTTH (Fiber to the Home): optical fiber from the central office (where the operator’s transmission equipment is installed) all the way to homes or business premises (Arcep definition).
FTTH premises secured: the horizontal deployed, being deployed or ordered up to the concentration point.
FTTH premises marketed: the connectable sockets, i.e. the horizontal and vertical deployed and connected via the concentration point.
Growth in sales like-for-like and at constant exchange rates:
- at constant exchange rates: change after translating foreign-currency sales for the current period at the
exchange rates for the comparative period;
- on a like-for-like basis: change in sales for the periods compared, adjusted as follows:
- for acquisitions, by deducting from the current period those sales of the acquired entity that have no equivalent during the comparative period;
- for divestments, by deducting from the comparative period those sales of the divested entity that have no equivalent during the current period.
MtoM: machine to machine communication. This refers to direct communication between machines or smart devices or between smart devices and people via an information system using mobile communications networks, generally without human intervention.
Net surplus cash/(net debt): the aggregate of; cash and cash equivalents, overdrafts and short-term bank borrowings, non-current and current debt, and financial instruments. A positive figure represents net surplus cash and a negative one represents net debt. The main components of change in net debt are presented in Note 9 to the consolidated financial statements at 31 December 2018, available at bouygues.com.
Order intake (Bouygues Construction, Colas): a project is included under order intake when the contract has been signed and has taken effect (the notice to proceed has been issued and all suspensory clauses have been lifted) and the financing has been arranged. The amount recorded corresponds to the sales the project will generate.
PIN: Public-Initiative Network.
Reservations by value (Bouygues Immobilier): the € amount of the value of properties reserved over a given
period.
- Residential properties: the sum of the value of unit and block reservation contracts signed by customers and
approved by Bouygues Immobilier, minus registered cancellations.
- Commercial properties: these are registered as reservations on notarized sale.
For co-promotion companies:
- if Bouygues Immobilier has exclusive control over the co-promotion company (full consolidation), 100% of amounts are included in reservations;
- if joint control is exercised (the company is accounted for by the equity method), commercial activity is recorded according to the amount of the equity interest in the co-promotion company.
Sales from services (Bouygues Telecom) comprise:
- Sales billed to customers, which include:
- In Mobile:
- For BtoC customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services.
- For BtoB customers: sales from outgoing call charges (voice, texts and data), connection fees, and value-added services, plus sales from business services.
- Machine-To-Machine (MtoM) sales.
- Visitor roaming sales.
- Sales generated with Mobile Virtual Network Operators (MVNOs).
- In Fixed:
- For BtoC customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire.
- For BtoB customers: sales from outgoing call charges, fixed broadband services, TV services (including Video on Demand and catch-up TV), and connection fees and equipment hire, plus sales from business services.
- Sales from bulk sales to other fixed line operators.
- Sales from incoming Voice and Texts.
- Spreading of handset subsidies over the projected life of the customer account, required to comply with
IFRS 15.
- Capitalization of connection fee sales, which is then spread over the projected life of the customer account
Other sales (Bouygues Telecom): difference between Bouygues Telecom’s total sales and sales from services.
It comprises:
- Sales from handsets, accessories and other
- Roaming sales
- Non-telecom services (construction of sites or installation of FTTH lines)
- Co-financing of advertising
Very-high-speed: subscriptions with peak downstream speeds higher or equal to 30 Mbit/s. Includes FTTH, FTTLA, 4G box and VDSL2 subscriptions (Arcep definition).
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