Bouygues

Hello everyone, thank you for following us on this webcast. Thank you for your attention for this presentation of our results that I will comment with Pascal Granger. And then at the end of this presentation, with all the bosses and members of the General Direction Committee, we will answer your questions. I will start with a review of the portfolio of activities which is considerably strengthened in energy and services due to the acquisition of ECOANS. This is for us an important step in the development of the Group. It places us on a new dynamic of growth, on a market which is in full growth, since Equance is at the heart of environmental transitions, industrial transitions, digital transitions, and which strengthens the group's resilience. On the slide and on the left ring, you can see the structure of the group before the acquisition of Equance, in which we had construction and service jobs. construction services because we had within Bouygues construction Bouygues energy and services which represented 75% of our activity in these 75% there were 10 points that were brought by Bouygues energy and services you have on the right part of the slide if we had to consider that we have achieved the acquisition of Equance on January 1, 2022 and therefore I take the figures We now have a sector of energy services that constitutes 33% of our turnover and ECONSE becomes the first business of the Group by its turnover and by its employees since we will have about half of the employees of the Group which will be housed within ECONSE. This is a great opportunity for development for the Group. At the same time, it is an important stage of integration because we have to integrate 70,000 employees with a double integration, the integration of Equance within Bouygues and the integration of Bouygues Énergie & Services within Equance. We will talk about all this this afternoon with the D-Mark Capital, which is dedicated to Equance, its content and its development ambitions. So the key figures that we have, I am in slide 5, it shows you the acceleration of the group's development with the consolidation of equances in accounts only in the fourth quarter of 2022 since we formally made the acquisition on October 4 of last year. Well, the year was a complicated one.

I remind you that the presentation of our results was made on the day of the invasion of Ukraine by Russia, so it was assumed that we might have... ...which led us to imagine that there would be geopolitical tensions, which proved to be the case, high inflation, interest rates that rose quite sharply, and high forex volatility. In fact, our various businesses took the necessary steps to adapt to this new environment. So group sales rose 18% over the year to 44.3 billion euro. The current operating profit from activities, COPPA as we call it, rose by 284 million to slightly over 2 billion euro. The net income attributable to the group was up 67 million. This is the bottom left. On the left-hand side, you'll see that we are restating the right-hand bar chart for the Alstom disposal. That was a one-off. So our net profit restated for that is actually up 67 million euro. Mechanically, of course, the group's net debt increased with the acquisition of Equans. Acquisition estimated at 6.5 billion euro. Then we bought back our own shares during the year for a total of €224 million. So if we factor out these two items, our net debt would actually have been decreased or improved, if you prefer, by €241 million over the year. So the guidance that we gave you when we started in 2022, we expect a new increase in sales and an increase in our current operating profits. That's not including equines, of course. On these two slides, you'll see how we fared. Sales were increased to €40.6 billion. That's not including equines, i.e. organic growth of 8%, a sharp increase. This was driven by good commercial performance and, of course, by inflation, particularly at Colas. Our current operating profit was strong at 4.5 percent of sales, enabling us to boost our current operating profit by 152 million to 1.845 billion euro. These results have enabled the Board to decide to propose to our AGM on the 27th of April the payment of a dividend of €1.80 per share. Remember that this dividend rose in 2021 from €1.70 to €1.80. On the second part of the slide, we've highlighted the fact that we have cancelled over 8 million shares in 2022. decreasing the total number of shares in circulation from 382 million to 374 million, aimed at compensating the potential dilution on capital transactions in favor of employees, which could take place in 2023. A few words about our sustainable and responsible initiatives, particularly the view to reducing our carbon footprint. Just an update on the various measures we've taken. On this chart, you'll see where we stand in terms of SBTI approval. Our target is to have all our businesses and activities approved and certified by SBTI. We began with reconstruction, big telecom, uh was uh approved in 2022 and then big construction big immobilia and tf1 were all filed in last year but they are currently in the process of being approved sbti the sbti process is taking longer because the large volume of applications made and finally equans Equans is currently calculating its global carbon footprint and will file for STBI approval in 2024. They will also be proposing how to reduce its carbon footprint in that filing. Now going to review our various operations, beginning with construction and services. Now, when we talk about construction and services, In this part, we have the big energy and services backlog, which from this year onwards will be booked to equants. It will no longer be booked to our construction business, which we will simply call construction, not construction and services. So our backlog is at a record level, standing at 33.8 billion euro. That was at the end of December 2022. Moving on to slide 13, if you look at the content of this backlog, It still includes big energy and services, but not equans. At 20.6 million, we have a good visibility for the future. That was at the end of 2022. For construction and civil works, this has increased despite less large projects in 2022, fewer awarded than in 2021 anyway. And the energy and services backlog is actually down 4%, which is evidence of the selective approach we've taken to projects. At Brieg Energy and Services, we have placed emphasis on margin rather than volume. And we'll talk to you about that at greater length this afternoon when we present our various indicators. Over the full year, 2022, Brieg Construction... So its order intake increased by 9% compared with 2021, largely driven by what we call normal course of business, which goes to show how competitive we are, particularly in the provinces. And in the second half of the year, this was driven by large projects like KVNA in Switzerland in Q3 for 474 million, and Kidia, which is an attraction park in Saudi Arabia in Q4 for 559 million euros. Real estate is a complex environment which became increasingly tense since last summer. Big immobility is still benefiting from the catch up on building permits which had dried up since the municipal elections in 2020. Let's say the bottleneck is gradually being released. Now the amount of time it takes to get works underway is getting shorter. The increase in interest rates have also had our boarding on the usury rate, which does have an impact on reservations. So Big Immobilia has decided to postpone certain offers, which means that mechanically the stock available for sale has been reduced and potential reservations are necessarily fewer. Broadly speaking, this is a wait-and-see market. And as a result, Brigo Mobilier's backlog is down 17% over the last 12 months. It should be mentioned that there are very few commercial property projects, very few commercial property projects being launched insofar as companies have not yet got a clear vision on their needs, particularly in terms of teleworking. Let me conclude with the backlog at Colas at 11.7 million, up 9% on 2021. This, of course, benefits from an order intake that rose 6% on the previous year. The backlog in rail projects has increased substantially. The Birmingham extension, construction of phase one of the Cairo Metro Line 4, or the five-year continuation of the network rail contract, or the railway lines in the south of England, Broadly speaking, the situation has been contrasted by region. In particular, I'm thinking of the low level of activity in Eastern Europe because of the conflicts in Ukraine, and an environment that was very much affected by inflation, which had a major impact on bitumen prices. Moving on to the financial performance of construction and services. I'm now page 14, incidentally. Sales reached €30.5 billion, up 9%. Now, of that 9%, it would be 4% organic growth, mainly driven by Colas. Colas' sales figure rose sharply by 17%. That would be 9% at constant scope of consolidation, constant exchange rates, driven largely by the impact of inflation. But inflation does play an important role. Reconstruction, it says, figures up 3%. Construction civil works rose 5%, particularly under the impact of international operations, while energy and services remained stable due to two reasons. First of all, the selective approach we are taking to projects and the transfer of our nuclear activities. It used to be carried out by Brigue Energy and Services. That's been now transferred to BTP, or Construction and Civil Works. Brigue Immobilier's sales figure, which includes our share in joint developments, is up slightly. I mention this notion of joint development because this is something we do to share risk with other developers. And, of course, this has an impact on the resources we use. so it's perfectly natural to take them into account. They are more representative of how the business is developing, but factoring out this share, our sales would have been down 4%. Current operating profit from activities, that's our COPPA as we call it, totalled €918 million. Reconstructions COPPA, rose sharply to €413 million, and its operating margin rose 3.1% from 2.7% in 2021. This is all the more remarkable that the year was marked by high inflation and a lot of uncertainty. The COPPA margin activities margin operating margin of our construction civil works business rose 40 basis points to three percent um abriga engine services reached 3.6 percent this is what we call diogenes plan that we'll tell you more about this afternoon So despite this backdrop of lesser activity, Brigue Immobilier generated its ROCA up slightly by 1 million euros. If you factor out this COPPA from joint developments, it was actually down 6 million euros. Collas has a COPPA of 468 million euros, up 21 million euros over the year. The COPPA in Q4 was up €21 million to €468 million. This was thanks to the plans of action implemented. Frédéric Gardès told you about these when we presented our interim results last July. Before moving on to equines, I propose we now look at a video about the construction of the wind farm, the offshore wind farm built by reconstruction of Fécamp. These are the concrete foundations that were put into the sea in Q3 of last year. I don't know.

That was quite a beautiful achievement, a beautiful project conducted by Bouygues Construction and its civil works division. Let's move on to slide 17 with the key figures for equants. This is rather a special year for Equance because a number of things happened during the year. First, we had to finalize the actual scope of Equance, Equance being the conglomeration of several companies within Engie. Then, of course, we had to separate these from Engie. And then there was some antitrust work. We had to get authorization from the European Commission, then pulling out Bouygues Énergie et Services, BYES, from Bouygues Construction so as to merge it with Equance, and that was done in January 2023. And then 2022 was also a significant year because that's the first year where we could recognize the transformation plan that started in 2021. Equance has now Equance not including weak energy service. Equance has an order book of 18.7 billion euros at end 2022. So this gives us good visibility on future business. Equance contributed to the group's revenue because it was acquired on October 4th, and so we had just about all of the fourth quarter to ourselves at week, and so it brought in 3.8 billion euros in revenue and 130 million euros in COPPA, in current operating profit from activities, of 3.5%. The pro forma data of Equance as if the acquisition had occurred on the 1st of January 2022, would have produced revenue of 13.8 billion euros, co-power of 278 million euros, a co-power margin of 2%. And so if you compare this with the announcements of Q4, you can see that the co-power margin was marked by seasonal effects, particularly felt in 2022. And then The net debt of Equance, which was about 400 million euros at the time of acquisition, was up to 24 million euros at the end of 2022. That's an outstanding performance by the teams led by Jerome and Etienne. I will not go into the details of Equance's figures this morning because this afternoon we'll have a whole session dedicated to Equance, its scope, its market. the structure of the company and the action plan that is being implemented so as to generate the performance expected in financial terms for equants. And so let us move on to TF1. Now, you had a presentation of the numbers by Rodolphe on the 14th of February. TF1 had a good operating performance in 2022. Revenue was up 3% at 2.5 billion euros. Nuen Studios was very much involved in this. It delivered a number of beautiful productions, one called Les Combattantes, and that was shown on TF1, but also Marie-Antoinette and Liaison. Advertising revenue was stable on the constant scope in 2022, up 2% on the constant scope in Q4, and that was thanks to the good performances of the broadcasting of the World Cup Football World Cup, but that was also helped by the French national team's performance. At €322 million, COPPA is down compared to 2021, but in 2021, there was the publisher's tax credit COVID-related, then that was 29 million euros. If you restate that for that factor, it was up. COPPA was slightly up. In any case, the COPPA margin stands at 12.8%. So what's the outlook? Well, top management decided to review the situation, appointed Rodolphe as chairman of the board of directors after Gilles Pellisson stepped down. So, well, Gilles now is the CEO of TF1, and so we can only thank Gilles for this transition, this fine transition with Rudolf Bernmer's arrival. The DTT Channel will continue its work. TF1 will be able to maintain its leadership with a current operating profit close to that of 2022. TF1 made an announcement concerning its dividends policy. saying that we are looking at stable or growing dividends for the coming years and the board of directors will propose a dividend of 50 cents per share at the next AGM. Let's move on to Bouygues Telecom now and take a look at the objectives, the targets set in 2022. For 2022 we were looking at revenue, build the customers up upwards of 5 percent, and that was achieved because now we stand at 6 percent. It was looking at EBITDA growth after lease of more than 6 percent. Now it is, in fact, 9 percent, not including the restatement of new frequencies. It stood at 1.750 billion, so that target was met. Gross capital expenditure was expected to be contained within 1.5 million euros, not including frequencies, and that was achieved as well. If you look at the total number of customers for both mobile and fixed, we have 15.2 million mobile contract customers, not including machine-to-machine, so that's up 450,000 customers over the year. Regarding FTTH, we have an additional 674,000 customers over the year, including more than 200 in Q4. And that growth was done outside the dense areas, that is, outside the natural catchment area, as it were, in areas where we had traditionally little business indeed. Finally, the FTTH footprint, as it were, has grown. Now we are in a position to market as many as 27 million premises. The objective was 25, and so we were able – sorry, we were looking at 27 million, and we actually were able to have as many as 29.7, so an additional 2.7 million over target. The target, the Internet now has become a sine qua non at home, what with COVID and telework and whatnot. So when you refer to the Internet at home, it's not so much the Internet as Wi-Fi. So it is indispensable to have high-quality Wi-Fi. And if you can do that, it means that you have good quality end-to-end. This is how a customer can assess the quality of their Internet access providers. And Bouygues Telecom has remained a leader in connectivity in terms of quality. It is the number one Wi-Fi operator for the second year running. That recognizes, of course, the quality of operations provided by Bouygues Telecom, but also the quality of equipment provided. designed and offered by Bouygues Telecom. And by the way, at the bottom of this slide, you have the type of equipment we're referring to here. You have to remember that Bouygues Telecom was the first operator in France with vertical boxes so that signal propagation can be Of course, when the box is vertical, signal propagation is better than when the box is horizontal. By the way, when the box is horizontal, people tend to put things on top of it. In any event, on this picture, you have the Wi-Fi boxes, the Wi-Fi 6E. model. We have an eco-design box, and that is certified by a German company called TUV. That's Wi-Fi 6. We have a 5G box as well, and that is 95% made with recycled plastics. And then on the right-hand side of the slide, you have a box offered by Kenyo, which makes it possible for NTP companies to have not just fiber but also a backup 4G access to provide good continuity of service. This one is horizontal, but you have little antennas at the back. to that send the Wi-Fi signal. Now let's move on to slide 25. The commercial momentum is robust. ABPU is up, and we have more customers, and so revenue is up. ABPU was up 30 cents over the year, year on year, to 20.1 euros, not including roaming. And that's mobile. For fixed, we are up 1.1 euros year on year to 29.5. So revenue in 2022 stands at 5.8 billion euros, up 3 percent over the year. Let me point out that the delta between the service revenue and bill to customer is the revenue from interconnection with other operators. That is down. That is down because there is less use of inter-operator traffic for voice and text messages. But that is offset by new OTT applications. We have other sales up 7 percent, mostly with contract work, and then EBITDA is now up 9 percent thanks to a good cost control. It stands at 30.4 percent, and we restated the way in which we looked at license fees for 900 and 1,800 megahertz frequencies in 2009 when we were granted these frequencies The license fees were recognized as operating expenses, charges, but now we line up with the common practice, which is to say that all operators do the same. This is seen as frequencies that were purchased, and so they are depreciated below EBITDA. And so, therefore, this means that EBITDA is up. 23 million euros, and of course the EBITDA to revenue ratio is improved as well. We – COPPA was up 93 million euros. Operating profit is up 72 million euros. That's 735 million euros in 2021. We telecom disposed of fewer, sold fewer data centers, and so there's less non-current profit. Looking at the outlook for 2023, Fabrique Telecom, well, we will enlarge a customer base. We will maintain capital expenditure to have more comprehensive mobile networks. We're looking at more revenue. EBITDA after lease about 1.9 billion euros, and gross capital expenditures should stand at about 1.5 billion euros, not including frequencies. I'll give the floor to Pascal Granger, who will give you a detailed presentation of the accounts.