Bouygues

Good morning, everybody.

If the gentleman in the first row would take their seats. We will begin with our new corporate film that I propose to show you for those who haven't seen it already. Here goes.

An Opportunity An idea, an encounter, encounters, respect, trust, values, aspirations, the desire to go further, the desire to work together, the desire to pass on and to innovate. Great successes are always built on these wonderful things. They give us the confidence to believe that together anything is possible.

We are here at Hinckley Point C. It's one of the biggest construction projects in Europe. We have over 10,000 people on site, so there is lots of data, and digitalization allows us to capture, structure, and report on what is happening in real time. It helps improve quality and safety, and helps us make better use of our resources. Francesca Draper, Digitalization League.

Solis is a project that is particularly exemplary. It is a demonstrator of the sustainable city. There are 11 buildings and there is in particular a residence that was co-designed with 11 families. For 12 months, we did participatory workshops with them. It is something that has never been done. It is the first participatory building in France. My name is Bérangère, I am regional director of Bouygues Immobilier.

We are working on a major project near Brisbane called Kuroi to Kura. This is Queensland's highest priority highways connecting the south to the north. Different technologies are used to reduce environmental impact, improve energy efficiency, and reduce cost and manufacturing time. Road building projects are becoming more environmentally responsible thanks to increased awareness and a change in mindset. I am Gandhina Yindi, Laboratory and Research and Development Manager for Colossus Australia.

We are currently working on three simultaneous projects with the replacement of public lighting that in total we are going to replace 11,000 lights. The new luminaries have a better level of illumination, which allows the feeling of higher levels of security. Also, to make highly efficient luminaries that go between 40 and 60% of energy savings, allows the municipality to allocate these funds to other purposes. Paulo Contreras, my position as operations manager at ECOA.

Knowing that I was a customer at Bouygues Télécom since I was young, I decided to apply without experience and I was hired. I immediately liked this customer relationship, the fact of welcoming customers, taking care of them, the telephony, everything interested me. And it is thanks to this that today I have been able to climb the ladder to the manager of a Bouygues Télécom shop. What motivates me as a manager is to be able to welcome our customers with a smile, open arms and that they leave satisfied. Menes Elia, manager of a Bouygues Télécom shop.

It seemed important for the TF1 group to develop a new information meeting. Of course, the 13 o'clock, the 20 o'clock, on weekdays and weekends are very popular meetings. But maybe a meeting was missing in the morning. Hello from the TF1 morning, it's a live meeting from Monday to Friday. It's two and a half hours of live information, information in all genres and in all styles.

My name is Bruce Toussaint and I am very happy to be part of this adventure.

Hello everyone.

Well, good morning to one and all. That is our new corporate firm highlighting our employees, their know-how, which is our only real asset. And this is why we have put them front and center of stage. Now, before beginning today's presentation, I'd just like to say a few words on this cover slide. This is a swimming pool that will be completed for the diving competitions and artistic swimming competitions in this summer's Olympic Games. You can see the good integration into the environment with the use of solar panels and timber, which will considerably reduce our carbon footprint. Okay, let's now move on directly into our presentation, and I'm on page four. Our results for 2023 are good, even very good. We've achieved the goals we set ourselves. Our sales reached €55 billion, COPPA up 3%, sales up 11% by comparison with the 2022 pro forma statements. Equance is rolling out its strategic plan on target. Its COPPA margin was... 2.9%, which is the upper end of the range announced at the Capital Markets Day when we announced between 2.5% and 3%. Our net debt has also improved considerably. This is a great source of satisfaction to us. Finally, Brigg Construction, Brigg Immobilier and TF1 have all been certified for their reduction of carbon by the STBTI. So 506 of our business segments have been certified. Equans should achieve its certification in the course of 2024. It will be filing for certification in the next few weeks. Now, the construction business has a very good backlog, providing us with good visibility for our future activity. It's in this broad context that the board, at its meeting of yesterday morning, decided to propose to the AGM on the 25th of April a dividend increase of €10, bringing the proposed dividend to €1.90 per share. That's €10 more than in 2022. Let's move on to the key figures on page 5. The group's sales in 2018. 23 reached 56 million. That is a 26% increase, which is essentially due to the full integration of equants in our accounts over the full year. If equants had been integrated as of 1 January on a pro forma basis, that would have been a 3% increase. Copa rose by 393 million to 2,411,000. That's a 247 million euro increase, or 11% increase if you prefer, by comparison with the pro forma statements, which includes equants over the full year. Net profit attributable was up 72 million to 1.04 billion for the period. Finally, the group's net debt was down to 6.25 billion at the end of 2023. down from 7.45 billion at the end of 2023. That's a good performance, particularly if we take into account the exceptional events that occurred in the course of 2023, and particularly the 310 million that we had to pay to Free Mobile, which will be appealing, as we have already announced, and we will be also contesting the provisional executions. Before getting into the figures for our different businesses, I'd like to come back to Greek Telecom's announcement of last week regarding an exclusivity agreement. with La Poste, because last week Telecom signed on Thursday evening an exclusivity agreement with La Poste concerning the acquisition of the entire share capital of La Poste Telecom. And this also involves a distribution partnership with La Poste. Now, La Poste Mobile is the foremost mobile virtual network operator in the French market. 51% owned by La Poste, 49% by SFOR, also the last large MVNO available on the market. La Poste has 2.3 million mobile customers, a very strong brand with a very high level of customer satisfaction, largely thanks to its quality of service and the fact that it's very close to its clients. The catchment area is very vast, particularly in rural areas, which is a further argument in favor of pursuing this agreement. Now, the reasons that Big Telecom is interested in this acquisition from La Poste Mobile, well, over and beyond the fact that it's the last remaining MVNO available in the market, this is an opportunity for us to strengthen our position in mobile and fixed business. based on a nationwide distribution, while increasing EBITDA after leasing in a fixed-cost sector. First of all, this enables us to increase Big Telecom's mobile customer base by some 2.3 million clients. This will also provide a new fixed offering for La Poste Telecom's customers, and it will also strengthen Big Telecom's presence in the professionals and SME segments. This is a transaction that would enable Big Telecom to improve its profitability in the fixed-cost sector, given Big Telecom's radio network, which does not require any additional capex in acquiring La Poste Mobile's customers. Our acquisition costs from 2025-2026... with a view to preparing for the migration of clients. This is a migration that could begin at the end of the wholesale agreement currently in force with SFO, which expires at the end of December 2026. After that migration, which would take place in the course of 2027, the contribution to the group's EBITDA would be approximately 140 million per annum from 2028 onwards. Concerning the acquisition price, I have two pieces of information. The acquisition price for the shares is $950 million, which corresponds to an enterprise value of $963.4 million. These amounts will be tweaked based on the timetable for completion of the transaction. This is obviously subject to consultation with employee representative bodies. which we expect to have completed by the end of 2024, again subject to authorization from the antitrust authorities and subject to SFO not exercising its preemption right on this entity. If this significant transaction closes, BRIC Telecom will communicate at the very latest within the months following its completion, will communicate a new guidance which will replace the Ambition 2026 guidance announced during our Capital Market Day on the 15th of January. We'll obviously keep you posted throughout this year, 2024. Let's now begin the strategic review. With this slide, we wanted to talk to you about corporate social responsibility, important topics for us, which we articulate around three main thrusts. First of all, we have our people at the very heart of our group, which means that we are very keen to ensure their health, safety, well-being. We want to not just welcome on-board employees, but we want to advance their careers within the group. Thirdly, we share value with our employees. And finally, we promote diversity and gender balance. taking action in favor of inclusion. Secondly, we are keen to contribute to ecological, environmental, and energy transitions. We are keen to preserve resources to fight climate change and to protect biodiversity. Thirdly, we are keen to be our stakeholders' most trusted partners. For us, it's essential to respect strict ethical standards, to forge relations based on trust with our suppliers and subcontractors, to ensure compliance with human rights, to demonstrate social responsibility and commitment to society, and to conduct dialogue with our stakeholders. Page 12, as you can see, people are at the heart of our group, as I said. In 2023, that led to an increase of 17,000 employees becoming shareholders in the group. So there are now 68,000 as of the end of 2023, 68,000 BRIC employees who own shares in the group. This is evidence of the fact that our employee share ownership program has well as integrated equines very well within the group. I think gender balance is also well in evidence in the fact that 31.4% of the group's managers were women at the end of 2023. This is something we must continue. We must indeed up our efforts, particularly in construction and energy and services. I'd also like to point out that on the 1st of January of this year, we broadened by care, which is our common core of harmonized and universal benefits. This is for new parents and offers employees a period of leave to take care of their children with care. salaries maintained 100%. Finally, we have launched two programs for high-flying women in France and abroad, a mentoring program for talents beginning their careers, and another training course by the Brigade Management Institute for Women with Strong Promotional Potential. Page 13, a slide just to say a few words about our commitments to the ecological and energy transitions program. We have a whole portfolio of solutions for these purposes that enable us to roll out the plans of action in our SBTI roadmap. Illustrations would include, I'm just going to give you two examples, recycle, which is a process invented by COLAS in the institution of the corporate program. You saw that we have renovated roads in situ to avoid the large convoys of trucks, bringing aggregates and pebbles to this we just grind up the existing road and remix it with a binder so no additional aggregates required so that's very good in terms of recycling biodiversity and the second example I give is the use of low carbon materials low carbon materials are also low carbon metals that we use elsewhere in the group but These are materials used by Brigue Construction and Brigue Immobilier. For instance, in Brigue Bâtiment in France, in the course of 2023, we were able to reduce the carbon intensity in our concrete by 4%. This also consists in using timber, biosource materials, or even recycled materials. Page 14. I wanted to say a few words, important words. First of all, our priority, which is the group's cultural foothold. You can't do anything without a very strong group. This is why we grant a particularly important place to the training of our employees, of our managers, and great importance to the importance of ethics ambassadors in all our business. These are people whom employees can turn to if they have any questions or doubts. These are processes that each and every member of our group must abide by. Finally, I'd like to say that we have revised our vigilance plan, we have a number of prevention plans, and we have also set up a whole series of new measures. Other activities included the continued supplier assessment on the basis of CSO. And finally, we launched the 19th cohort in our Francis Brigg Foundation. These are young secondary school graduates that we take on as new recruits. Next come up is the greenhouse gas emissions footprint. a total of 21.2 million tons of CO2 equivalent in 2023. We've extended the analysis to scope 3B. We've included equans in our calculations. When I say scope 3B, because that's not including colas. The B is the carbon footprint and the way our production is used. When you build a road, we have no way of knowing what the 3B footprint will be in future, depending on whether the engines are internal combustion engines or electric motors. So we've covered 3B, except in the case of Colas, for the reasons I just mentioned. We've also pointed out how our emissions of greenhouse gases have progressed between 2022 and 2023. Broadly, they have been reduced by 1.6 million tons of CO2 equivalent between 2022 and 2023. That's on a like-for-like basis. This is the first time we have reduced greenhouse gas emissions. We must continue, and the carbon trajectory that's been identified with our SBTI roadmap will continue to see this carbon footprint reduce over time. Let me now move on to the operational review of our various activities, beginning with construction.

You have here a view of the tunnel which uses and rather catches rainwater. We have this in the U.S. Looking at the carbon pathway of Bouygues Construction, that of Colas was confirmed in 2021. Once the carbon footpath has been presented, it has to be validated. to get the SPTI ranking. There's a change in governance. We decided to have at the head of Bouygues Immobilier a chairman of the board and a CEO, and so we have two new faces. Emmanuel de Maizière spent 25 years with us and four years in a competitor, but we're happy to have him back. Welcome, Emmanuel. If you look at the order book, the backlog... It is up 4% compared to 2022 at 28.4 billion euros, gave us good visibility on future business. Let's take a closer look, starting with Bouygues Construction. In the year 2023, the order intake was 10.6 billion. These order intakes was driven by a number of large projects, which accounted for 50% of the overall business. There was the Abidjan metro in Q1, €770 million, the Potomac River tunnel in the U.S. in Q4 for €480 million, or the extension of the metro line in Hong Kong in Q2 for €480 million. To 470 million euros, the legacy businesses of pre-construction have remained stable in 2023. And so the backlog stands at 15 billion euros. It's up 900 million euros, up 6%. This is mostly civil works, up 12% over one year. And Bâtiment International, the international building business, that backlog is up 5% over one year. On its side, Brigue Immobilier is facing a challenging market. residential property business is unpredictable commercial property has gone to a halt and so the order book the backlog is down 500 million euros year on year down 32% at 985 million euros but Colas had large new orders 13.7 billion euros in 2023 and There were a number of major contracts, the extension of the NSCR metro line in Manila, €660 million, the Abidjan metro, €330 million, or the Old Oak Common Station in the U.K. for €215 million. The backlog, Colas' backlog is up 6% at 12 points. €4 billion, and this is in particular the rail business internationally, large contracts for one year. The rail backlog is up 39%, whereas for road works, that is down 5% over one year. Moving on to the page 23, the key businesses of the construction business, revenue was €27.3 billion, up 2% in and 4% on the like-for-like basis. It is mostly driven by Colas and Bouy Construction. Bouy Construction is up 5%, mostly international building business. Bouy Immobilier's revenue is down 14%. Colas' revenue is up 3%, mostly driven by rail, up 6%. Whereas the road work business, Business is up 3%, mostly due to the EMEA project. COPPA, that is the current operating profit from activities, stands at 851 million euros and a COPPA margin. is up 0.2%, which points at 3.1%. Bouygues Constructions' COPPA was up one year at €281 million. The margin stood at 2.9%, close to that of 2022, as expected. In a context of a declining business, Bouygues Immobilier, in 2013, recorded a COPPA down 9 million euros at 28 million euros over the year. Colas, for its part, had generated a COPPA of 542 million euros, up 74 million euros. This was also partly due to the disposal of land property in the UK, Salisgate, in Q3. The COPPA margins stood at 3.4%, up 0.4 percentage points. Moving on to equants. Sorry, there was a slip of the tongue. I named it. Maybe it's something to do with nuclear plants. I named a competitor. Looking at page 25, equants, here you have a picture of something in India. This is from BYES, high voltage facilities. The performance is is significantly improved, and this is in line with the roadmap presented by Jerome. Revenue was up 6%. That's more than expected, but that includes the disposal of asset-based businesses, and so if they were sold in 2023, they won't contribute to the 2024 sales figure. COPPA ended up in the high end of the bracket announced in the guidance at 2.9%. You may remember that on Capital Markets Day, we said it would be anywhere between 2.5% and 3%. And the conversion rate, co-part to cash flow, stood at, before WCR, stood at 86%. And again, at Capital Markets Day, we announced a guidance of between 80% and 100%. On the next slide, you can see that in 2023, in a Boeing context, Equance had orders worth 17.4 billion euros, two-thirds of which internationally, abroad. Over the year, there was a significant volume of orders on data centers, EV parks, gig factories, etc., These are plants where they build batteries for electric cars in Europe and the U.S., and then short-cycle businesses and recurrent maintenance contracts for industrial sites and public buildings. Equance has a backlog worth 24.8 billion euros at the end of December 23, down 4% compared to the end of December 2022, but this is in line with our strategy where we will give preference to rather than volume. Sales stood at 18.8 billion euros on 2023, a good momentum there. The first positive effects of the PERFORM plan and the asset disposal plan have materialized. COPAR margin was up 0.6 percentage point compared to the PERFORM at 2022. And we have a net financial surplus up 800 million euros over the year. mostly because we generated operational cash flow, but also there was a positive movement on WCR, plus, of course, the disposal of assets. On page 27 now, Equance in 2027 is expected to continue rolling out its strategic plan. It will be focused on improving performance in, as I said, a favorable context, giving preference to profitability rather than volume. Sales in 2024 should be close to that of 2023. There will be, of course, market effects because that market is growing. But there's also scope effects. You have to remember that we disposed of asset-based businesses. Plus, we're being selective on the products we choose. The guidance given at the beginning of 23 in terms of sales, Equance is aiming, starting in 2025, for a – acceleration of its organic growth in revenue to be in line with the peers on the market. In terms of margin, the expectation is a COPPA margin close to 4% in 2025 and 5% in 2027. In terms of cash, the conversion ratio is expected to be anywhere between 80% to 100% from COPPA to cash flow before WCR. WCR. TF1, I will skip over quickly because you had the results a couple of weeks ago. Rudolf gave you the presentation. But the outlook for TF1 for 2020 in 2023 proposed to be close to the revenue of 2022. and generating sufficient cash to allow for growing dividends over the next years. These two objectives were reached. The co-power margin was 12.5%, close to that of 2022 as announced, and net cash was high at 505 million euros. On extra non-financial numbers, TF1 had SBGI validate its carbon footpath to 2023 but of course if you look at the buildings of TF1 they don't generate much by way of CO2 but it's still we should still look at it we do it for all our businesses Looking at key figures for TF1, revenue is down 8% compared to 2022. The media business is down 5%, but only 2% if you consider the scope effects with the disposal of unified assets. Over the year, advertising revenue was down 4%, but it bounced back in H2, reflecting the return of a number of advertisers that decided to advertise their brands, their retail brands. And, of course, there's the broadcasting of the Rugby World Cup, the World Cup in September and October. That drew in more advertising revenue. Sales for Newn Studio was down 23 percent over the years. You know that this was because the comparable base the comparison base was not favorable because we had last year iconic shows then Salto was stopped and Plus Belle de la Vie went to was produced for television. That was last year. We are also keeping close rein on programming costs. They were down a few percent compared to 2022. A stable copper margin of the media business at 13% made it possible to compensate for the downturn of Newen's COPPA margin, the overall margin being 12.5%. The outlook, the Board of Directors will propose a dividend of 55 cents per share, up 5 cents per share, up 10% compared to 2022. And for 2024, TF1 proposes to pursue its digital roadmap with the promising launch of TF1+. Operating margin, COPPA margin should be close to that of 2023. And of course, we still propose to generate significant cash so as to maintain a strong dividend policy for the next few years. Looking now at BRIC Telecom and you have a fine picture here of BRIC Telecom up in the clouds as it were. BRIC Telecom in 2023 reached its targets. The sales bill to customers was targeted aiming for an increase in sales bill to customers. EBITDA after leases was around 1.9 billion. It's exactly 1.969 billion. And capital expenditures were supposed to stand at about 1.5 billion, and they were exactly 1.475 billion. billion euros. Moving on to page 34, you have the customer base, which is broadening. We had 15.5 mobile plan customers, including M2M at end 2023, so it's up 287,000 new customers, including 71,000 in Q4. Growth is continuing in FTTH with an additional 574,000 customers, of which 150,000 in Q4, FTTH customers number 3.6 million, accounting for 73% of the overall customer base. They were only 64% one year ago. Overall, the fixed customers... Bay stands at 4.9 million, up 232,000 customers in 2023, of which 65,000 in Q4. Zooming in now on the fixed line business. This is sort of the star of the show. There are ways of measuring operator performance, but there's one which is pretty good. It's reality as seen and perceived by customers looking at boxes of all customers throughout the country, and that gives big trends which customers themselves can demonstrate because we're looking at their actual performance. And from this survey, it turns out that we come as number one or equal across technologies for the second year running, and we're number one on Wi-Fi for the fifth year running, according to the NPIRF 2023 survey. Now, this is important because Internet use at home involves Wi-Fi, of course, and that's thanks to the fine quality... work of the technical teams at Brick Telecom. As you can see the middle chart which shows ABPU of course with a good network ABPU has been growing steadily to reach 31.4 euros per bill in Q4 2023 and the FTTH rollout is three years ahead of schedule because we have actually reached our objective of 2026 35 million FTTH premises Now, these premises, or most of them, WIC Telecom will rent out access to FTTH infrastructure, in particular to a joint venture called the SDAIF. It sounds like a demonic name. We had BTBG, and now we have DAIF. We have 49%. Well, these are code names that nobody will copy. Anyway, SDAIF. invest in FTTH networks rolled out by Orange in medium coverage areas. Brick Telecom has an option to purchase the entire company, but they will have two new opportunities in 2022. 5 and 2026, and on these occasions, we will decide whether or not to exercise the option. Looking now at the key figures for BRIC Telecom, I am therefore on page 36. The commercial momentum remains buoyant, with positive effects both in volume and value, especially for the fixed-line business. In 2013, Sales bill to customers were up 5 percent. That's because of a sound customer base and a growing fixed ABPU up 1.9 euros. In the mobile business, ABPU was stable at 19.7 euros for a number of quarters running now because there are – purchasing power issues, people are opting for cheaper deals, and so we don't have the same price increase as we have for the fixed line business. The EBITDA after lease obligation was up 11% because of higher revenue, lower cost. EBITDA margin after lease obligations was up to 32.9 percent, up 2.1 percentage points. COPPA was up 104 million euros at 798 million euros, and COP, COP was up in the same proportions. Free cash flow was 249 million euros, up 69 million euros over one year. What's the outlook for BRIC Telecom? In the context of a growing customer base, with a view to broadening its network, especially for mobile business, we're looking at sales base to customers on the rise, EBITDA after these obligations upwards of 2 billion euros, and gross capex about 1.5 billion euros, not including frequencies. I'll now give the floor to Pascal, who will give you details about the accounts.

Thank you, Olivier. I'm going to comment the group's consolidated financial statements, beginning with the income statement. I'm not going to dwell on the sales or COPPA figures that have already been presented by Olivier Rousseau. I begin by comparing 2023 to the figures for 2022 as reported. But to simplify your analysis, we've also added to our chart The 2022 pro forma figures, this is drawn up on the basis of equines having joined the group on the 1st of January 2022. Now, I should point out that the pro forma figures have not been audited. The first point I'd like to point out is that the amount of PPA that was amortized, PPA is the Power Purchase Agreement, 103 million, which breaks down to 62 million that we booked at Brig SA on behalf of Equans. The remainder is amortization for lesser amounts for Kula, TF1 and Brig Telecom. Secondly, non-recurring elements, non-current items that are not really representative of activity, totaled €195 million in 2023. Now, these non-recurring items concern the following main issues. First of all, equans recorded €81 million in non-recurring expenses. About €50 million of these were due to the management incentivization plan that we talked to you about at our Capital Markets Day meeting. but also consulting fees involved in our various disposal projects and integration costs, in particular IT costs. As for reconstruction, it recorded a non-recurring expense totaling €81 million. In particular, the dispute in Singapore for a building that was completed in 1997 that we talked to you about in previous talks. presentations and a regulatory change in one of the countries in which pre-construction operates. TF1 recorded 30 million in non-recurring expenses, essentially due to the optimization of its real estate and the various measures concerning its digital transformation plan. Third thing I'd like to point out is the net cost of our debt rose by €88 million. This increase was mainly due to the increase in financial expense due to the cost of acquiring equans. As for the lower half of the income statement, we recorded a tax expense of €547 million after €424 million the previous year. This gives us an effective tax rate of 32%. up from 27% in 2022. The effective tax rate in 2023 is mainly due to international taxation constraints, particularly due to our presence in a very large number of countries, in a very broad range of tax rates in a number of countries. Finally, the share of net profits of joint ventures and associates totaled in 59 million last year. This was an improvement on the end of 2022, and this improvement was mainly due to the fact that the ceased its losses, losses that we provisioned last year. As a result, the net profit attributable to the group amounted to €1.04 billion, up €67 million on the previous period, as Olivier Rousseau pointed out earlier on. A few words on the balance sheet. I think the main change was net debt that I propose to explain in greater detail. As you can see on page 40, at the end of December 23, our net debt was 6.3 billion down from 7.5 billion at the end of 2022. I'm not going to comment all of these items, but the main points are the following. First of all, acquisitions net of disposals totaled a positive 205 million. This amount was notably the disposal of asset-based activities at Equans. You mentioned these earlier on, but also other acquisitions, disposals, and smaller financial investments carried out during the year at Equans, Colas, or Big Telecom, for instance. This amount also includes the buyback of TF1 shares. The buyout of minorities and delisting of COLAS totaled €180 million. The capital increase reserved for employees generated €150 million. The dividend paid out by the group cost a total of €744 million. And, of course, we had to pay €310 million, as Olivier said earlier on, to Freemobile as part of a lawsuit that we will be appealing with vigour. not just to the decision, but also the obligation to execute straight away. Operations generated 2.2 billion, a very high level that I propose to look at in greater detail on the next page. Let's begin by looking at net cash flow, and this includes the lease expenses. That gave us a total of 3.3 billion, up 303 million on 2022. Net operating capex excluding frequencies amounted to 2.1 billion euros. Broadly speaking, that's stable by comparison with the previous year. The variation in working capital requirement for activities was, as always, affected by the usual seasonal effects. I hardly remind you that every quarter it's very difficult to forecast the variation in working capital requirements, particularly in construction. Some years the variation is positive. That was the case in 2022. In this instance, 2023... The variation was almost €1 billion. This is a very good result, and I think it can be attributed to the very good work of our employees in all our business segments. Naturally, in 2024, we will continue these good efforts, but as I've said before, in contracting, we cannot modelise working capital requirements. Let's move on to the group's financial structure, page 42. The group's liquidity totals €14.6 billion, a total of €14.6 billion at the end of December. This is a very high level. The amount is comprised of €4.9 million in cash and €9.7 billion in undrawn medium and long-term facilities. These are covenant-free facilities. As you can see on the bar chart on the right, the breakdown of our debt maturity is very balanced over time. On the next page, you'll see that our gearing has improved by 10 points over the period to 44%. The rating agencies have confirmed their rating. A- with the negative outlook in the case of Standard & Poor's and A3 with stable outlook in the case of Moody's. I conclude this part by underlining the fact that our next bond redemption will be in October 2026, and at the end of December 2023, the average maturity of our bonds was eight and a half years. That corresponds to an average effective interest rate of 2.25%. On the chart on the bottom right, bar chart, you see that while the average maturity of our bond debt was increased since 2019. At the same time, the average effective rate has dropped considerably from 4.09% to 2.25%. This is an illustration of our good financial discipline that enables us to remain financially independent and enables us to continue our independence in all circumstances. Thank you for your attention. Thank you, Pascal. We're going to wrap up with the outlook. We will begin with the group's priorities for 2024. First of all, for 2024, we have three priorities to continue to integrate equans into the group and successfully implement its strategy. Equans has become our biggest business segment. Almost half of our employees work for equans. Secondly, we want to continue to improve our operational financial performance in all our business segments. Thirdly, we intend to implement the CSOD regulation and rollout, that's quite a program, and rollout plans of action in order to achieve our SBTI targets. we will be doing what it takes to reduce our carbon footprint. We'll be doing for CSOD everything it takes for CSOD, too, of course. The outlook for 2024 for the group. Well, first of all, Equans will continue to improve its results in line with its strategic plan called Perform. This is under Jorm's leadership. Big Omivili will continue to improve We'll be faced with a challenging market with very little visibility and no idea as to the timeline for recovery. And in an uncertain economic and geopolitical environment, and after a year of strong vote, WIG is targeting sales and current operating profit from activities, what we call our COPPA for 2024. That should be slightly up on 2023. That brings us to the end of our presentation. On this slide, you will see that we have recalled our important dates, the AGM on the 25th of April, dividend payment on the 3rd of May in particular. We will now take your questions along with Edouard Pascal and the heads of the various different businesses who are all present in the front row. First question. Thank you, Mathieu Robillard from Barclays. Thank you for your presentation. I have several questions, but I'd like to begin with the guidance. You've just explained that the environment is politically and macroeconomically uncertain. But if I then look at the businesses individually, it seems that telecoms are doing well and you expect them to continue to perform well in 2024. You're also talking about equines progressing. So what is it that has you envisaging only weak growth, low growth at group level in terms of sales and COPPA? Is it the weaknesses at Bouygues Immobilier or Colas? Historically, if you have further details on the guidance. That is my first question. The fact that we don't give guidance regarding COLAS, we don't, because we feel that with inflation and the forex, it's very difficult to forecast. But broadly speaking, we expect something, all else being equal, as far as COLAS is concerned, we expect the situation to be relatively stable. In reconstruction, you've seen that the backlog is very good, very strong, with an order book starting with 84% of the year's business already in the order book. That's more than last year. So that's rather on the good side. That said, we said we were expecting a slight improvement over 2023. Well, with BRIC Immobilier... There's no knowing because we don't know when the market will pick up. We don't believe that the tertiary market or office market will pick up this year. As for the residential market, it all depends on the various measures decided or taken. There's no way of knowing when that's going to happen. As for equans, as we've said, there's a part of equans that was disposed of at the end of 2023 which will not be producing sales in 2024. So we're expecting something close to what we had in 2023. Bearing in mind that for Equans, our objective is to give a profit pride of place over volume. For TF1, we haven't given any guidance on sales. And with Greek Telecom, we told you that we expect to be up. that we, as last year, we didn't say any more than that when we commented the results. Well, having said all that, you can concatenate all this. You can aggregate it or put it into whatever you like, and you'll see that that's very consistent with the guidance we've just given you. In a world of uncertainties, we expect stability. The one thing we're uncertain about, most uncertain about, is real estate. However, in construction, you're rather confident. I said, yes, stable, broadly stable. Our order book is strong, good, solid. I'm not going to change that. Okay, fair enough. I have a question regarding the potential deal with La Poste Mobile. You did point out that SFO has a preemption right. Have you any visibility on whether or not visibility? No, we have no visibility because this is part of the process. We must talk to the employee representative bodies first of all. I think SFO has something like several weeks to decide whether it wants to preempt the remaining share or not. Whether they will or will not exercise that right, I don't know. You have to ask Patrick that. And one last question on your free cash flow, particularly your working capital. You have a great answer. Well, it will be given to you by Pascal Granger, I know in advance. Pascal, if you would, please. But my question is... This year, you said that very clearly this has been a very positive year, thanks to the efforts made by all the managers and employees. I'm sure that the efforts will be the same every year. But from one year to the next, there is a very strong level of volatility. Is there a simple explanation or is it a combination of phenomena and explanations that can explain what's such a big swing from one year to the next? I think there are structural changes and there are situational changes. I think the involvement of our employees wouldn't explain everything. And they will continue, of course, their efforts in 2024. I can confirm that. But in construction, particularly in large projects, large contracts, the Treasury is not aligned with progress on these projects. So this has a major impact on the group's cash situation. Also, at group level, we have... another business segment where we need working capital. And that depends on our success. That is because of our success in fiber. That's the horizontal connections. This takes its toll on working capital requirement in the early stages, which I think deforms the income statement. So we're not giving any guidance on cash or on working capital requirements. as is the case every year, because every year we get that same question on guidance regarding working capital. Good morning. Eric Avery from the CIC, CIC, the French bank. Eric Avery from CIC. Three questions. My first question concerns Colas. The order book is down 5% for roadways. That was at the end of 2023. Could you give us the figure for roadways in France separately? My second question concerns Bouygues Telecom. If I remember correctly, you think you had hedged your energy costs to protect Bouygues Telecom from electricity price hikes in recent years. Are there any price hikes or cost increases expected in 2024? The second question concerns the ABPU in mobile phones. And I understand that certain consumers are migrating towards less expensive plans. Is that gathering pace? And could you give us some idea of the churn at We Telecom and mobile phones? Well, Benoit is processing his answer. I will answer you on roadways in France. In France, we have municipal elections in 2026. So in what we call money time now, in the pre-election years, work is carried out. This is an evidence of the order in take which rose by 15% in Q3 by comparison with the previous period. So no concerns about roadways in France. We're still always cautious about about what can happen elsewhere in the world, but at least in the current period of time for Colas in France, things are going well. Benoit. Good morning. The cost of energy. Well, we had contracts up until the end of 2024, and we hedged our energy costs up to the end of 2024. That's not to say that the costs increased. They are higher in 2024 than in 2023, simply because we're consuming more energy. But in 2025, you can imagine that the cost difference would be about 80 million euro, again, more than in 2024. But that's already built into the plan. We expect these cost increases, so we've been working on other costs to be sure that we will be on target. As for the ABPU and mobile phones, well, the mobile market... is different to the market in previous periods. In terms of volume, the RCEP, the regulator, has published figures for 2023. In terms of the number of clients with plans, let's say the increase is smaller than previous years. For the general public, there's an increase of 700,000 new plans. It was 1.3 million the previous year, so the growth is slowing. The total number of post-paid clients in France is increasing. But our market share is still quite significant. In terms of average billing per user, yes, there is a certain tension among consumers, and there are a number of consumers adjusting their expenses. We have a whole array of plans and solutions. We are making our plans and prices progress in order to increase our ABPU, but there are clients adjusting, tweaking their budgets and working in the other direction. All things told, I think we can expect a stable ABPU over the year. In fixed lines, however, we expect an increase in volumes, a substantial increase in the ABPU based on the quality of what we've been building in six lines. We've been attracting clients with better prices, better quality. So the dynamics in fixed ABPU is better and will continue to perform well.

Thank you, Benoit.

Hello, I'm Augustin from Stifel. I have three questions. Number one on equants. Can you give us an update on the possible room for margin improvement during capital market day? You had procurement, pricing, productivity. and a number of other lines. And then on Colas, following up on the guidance, there's no guidance because of inflation, but is this because your backlog is more exposed to rail? And then on... use of capital in M&A? Could you expect more deals in telecom, in construction, in energy services, or would we consider making acquisitions in the property business because now the valuations are low? While the others are getting ready to take your questions, I'll take the very last point on possible acquisitions for BRIC Telecom. Well, The last MVNO on the market is there up for grabs, as it were, but it's the last one. And so with La Poste Mobile, we have this opportunity. We decided to take advantage of that. That is the last opportunity. Regarding external growth, our strategy remains the same. We have Colas on the one hand and Equance that propose to gain strength in areas especially North America and Europe, but also Australia. They are trying to gain more footprint there, and that might entail acquisitions. And now you had a question for Jérôme, and he's got a microphone. Yes, we do not give details on the – Profit numbers, but, yes, there's bug killer, as you said, for equants, taking out cost centers, working on procurement, pricing, and then productivity. So there were four items and four or five items, really. They all work, but differently. For instance, on procurement. Gains were made on procurement, but now we are introducing a procurement software, which we announced at Capital Markets Day, which is now being rolled out in a number of branches, and that will be continued throughout 2024. It's a major program for 2024, and this should bear fruit not just in 2024, but 2025 and 2026 as well. So the five items... We are doing this country by country on all five items and we are very much on track. We cannot really give a guidance on the various gains in the various items because they tend to be intertwined anyway, but by and large things are going according to plan. Now, the last question on the non-guidance about COLAS. I said that it's not because we have real exposures in a number of countries, but with exchange rate variations and inflation and the consequences on the price of butamine, we are not in a position to give guidance. But all things being equal, we would expect things to remain stable. Right. Further questions? Oh, maybe there are questions online. If you wish to put a question, you press star one on the phone. The next question comes from Nicolas from HSBC. Hello, Nicolas. Hello, good morning. I'm sorry, I couldn't make it. A couple of questions on telecom and construction. Regarding telecom, can you tell us why it is that the Lapos EBITDA margin after the migration would be 10 points higher than that of BRIC telecom? You said this is a fixed-cost business. Well, then you should expect an even higher margin, closer to the gross margin. Is it because of licensing, brands, distribution costs? On telecom, you said you said you unless the AIF, you will not exercise your option to take control, but you have other opportunities in the following years. But is this because of the capital you have, or would there be consolidation reasons with SDAIF? And finally, on construction and profit margins there, the COPPA margins there, is there any room for growth in the medium term? Or is the 3% the sort of standard that you cannot really do much better than? And then in the UK, you know that the infrastructure plan is being constantly revised. Hinkley Point is also running behind schedule. Is that covered by your contracts? Sorry, can you repeat that, please? Do we have other clauses in our contracts? Because if you're running behind schedule, I believe these are contracts that are price linked. Right. No. The yellow started... Yellow tie at the beginning to speak for Colas. No. So Pascal will answer with me. The contract... Look... Okay, they're... They're vying for the microphone here. Regarding civil works in the U.K., we have two big projects, Hickley Point and HS2. These contracts have an objective cost, and that is it's cost plus fee. And so the risk is – well, these are rather de-risked in view of the situation in the U.K. with uncertain prices. Pascal Granger now. Regarding the profit margins on construction contracts, there's the specific issue of Bouygues Immobilier, and now this is a far cry from the standard medium-term margins we have had before, but it will take some time to get back to that because of the market. At Bouygues Construction, The COPPA margins or the standard margins were anywhere between 3 and 3.5 percent. And so we expect the coming years to remain around that, barring any major event. And then at Colossus. Let me remind you that the copper margin this year included capital gain on the sale of land, and that itself was about 40 million euros. So... It is stable if you leave that out. And in view of the mix between industry and works, we expect margins to grow and get close to 4% on average. On telecom, was there a question on telecom, I believe? But of course... You are right. There were two questions about telecom, the EBITDA ratio for La Poste Mobile. The contribution of EBITDA of La Poste Mobile was 140 million. By 2028, this will have grown, but you cannot compare the revenue of 2023 and that of 2028, but we are looking at a figure higher than 300 million. And then the EBITDA ratio will be close to that of BRIC Telecom, especially because La Poste Mobile is only dedicated to mobile lines, whereas at BRIC Telecom we have both, fixed and mobile. And the ratio is better for mobile than for fixed. In any case, we'll have more than $300 million in terms of contribution. and it will only be mobile business. Regarding recapitalization on the financial instruments, $30 million this year and $50 million later, I mean, these are bonds to be issued, and this is already planned in our debt plan. This has been already scheduled, as it were, as early as 2021. The next question comes from from Morgan Stanley. You have the floor. Thank you. I have a couple of questions about the possible acquisition of La Poste Telecom. I have a couple of questions. So this responds to sort of an industrial logic, but the price of acquisition is much higher than what you paid for AIT, even though the EBITDA is lower. So what's the rationale behind this, this high price? And then the costs of integration. You said that this network is well-dimensioned to take in all customers from La Poste Telecom, but there would still be OPEX and CAPEX integration costs. But just what would these costs be? Well, you haven't disclosed any amounts so far, but could you at least give us some color or at least some comparison between these amounts and what you did in the previous operation. Benoit, on the acquisition price compared to EIT, you have to consider, well, the integration costs for Bouygues Telecom. For EIT, when we took in these customers, And in the IT, there was no IT. The integration costs were upwards of 300 million euros, both in terms of capex for the network to give the proper dimension to the network. These were customers that consumed more. And then we had to rebuild the IT system. because this was not part of the EIT scope. So $350 million in integration costs plus the acquisition costs, which was $850 million. Plus telecom, there are very little by way of integration costs, anywhere between $50 and $100 million, and there will be some IT, some costs in SIM cards, and some marketing costs that will occur in 2025 and 2026. So if you add, say, 75 million on top of, say, the 950, we get to 1.025 billion, whereas the other ones were close to 1.2 billion. So in terms of EBITDA amounts, we end up with similar numbers. And, of course, La Poste Télécom, over time, should generate EBITDA, but there's very little capex required. The only capex in sight will be for set-top boxes because there will be some fixed-line business on top of the mobile business. But it's mostly integration costs. We're looking at $350 million in EIT and only $50 to $100 for La Poste Télécom. Thank you, Benoit, for this explanation. The next question comes from Molly Whitcomb from Citi. You have the floor. Hello. I have a couple of questions, one on equants. Can we try and get a better view of Q4? Copper margin is good, but if you look at EBITDA margin, it's about 3%. That's not as good as last year. Is there a reason for this? Are there one-offs that you have to take into account? And the second question is about... La Poste Mobile again. You, if I understand right, EBITDA last year was about 7 million. In 2021, it was 55 million last year. In 21, so it must have been 57 last year. How do you... How do you arrive at the EBITDA number you announced for 2028? Can you repeat the second question about La Postmobile? Because we didn't hear the numbers. Can you repeat this? Yes, the EBITDA, La Poste Mobile, looking at the reports, the present EBITDA stands at 7 million. And are there specific synergies between BRIC Telecom and La Poste Telecom that we cannot see there? How do you propose to achieve the EBITDA announced for 2028? You mean are the synergies greater than what we said? Well, you have the EBITDA of La Poste de Com, you add to that the gain from the wholesale contract, which is now ITSFR, and after lease you get an EBITDA of 140 million euros, but I got it right, so... So 140 is the SFR's wholesale contract plus the present contract. And so that will enable Jerome to – on equants, we have a simple question. We had one-off items in 2022. These were the one-off deals that did not reoccur. Thank you. Thank you, too. So the number was 100 million. Now, Alicia, for the questions in English.

Yeah, thank you. We'll take the first question from Nick Leal from Society General. The line is open now.

Morning, everybody. Can I just ask two on telcos, please? You had a very strong fourth quarter despite the accounting changes for telco. The guidance of 2 billion EBITDA or above 2 billion, though, doesn't seem particularly strong. I realize it's above 2 billion. So could you just, it seems like a large round number. Could you just tell us a bit more about the growth you expect in EBITDA? Because it seems top line is still very strong, particularly in fixed. So do you expect decent growth, at least on telcos and EBITDA? And just going back to SDAIF as well for the option on that. I'm not sure if you answered why you didn't. decide to or why you decided not to exercise it just now what would be the current debt and equity you would have to pay on the 15th of march do you think on your assessment if you did buy it back in please could you give us a bit of information thank you

Maybe Benoit can take... We have two windows in 25 and 26 for SDAIF, so we're waiting until then to see whether we'll exercise that call option. But on EBITDA, Benoit, well, the guidance we have for EBITDA compared to the past... There's one item you have to keep in mind. Between 20 and 2023, there were 500 million in EBITDA growth, and that's what we have between 23 and 26. Between 21 and 23, we are ahead of schedule that we announced. So we are... closer to the objective than what we announced. And between 21 and 23, the acquisition of the EIT boosted EBITDA. There were synergies, and that brought in 200 million in EBITDA growth over that period. So that is one reason. If you give a guidance on 2024, it might look more modest to you, but this is because there were these extra 200 million in 21-23 because of EIT. And then the market is growing as well, adjusting rather. The mobile market is adjusting, whereas fixed is growing. So this is why all in all we are announcing EBITDA, which is about 2 billion in 2024. Can we also give a detail about SDAIF? Ah, SDAIF, well... If we were to take it on board, it's only a few percentage. So the integration, no, no, that wasn't the question. We're talking about the effects on the overall indicators on debt and EBITDA. Now, SDIF in 2023 has 90 million in EBITDA and 600 million in... in debt, 700 million in debt, but we expect that to come down because SDAIF has reached the peak of its capex in the years 2023-2024. So should we decide to consolidate SDAIF, this will give you an order of magnitude of what we will be consolidating both in terms of debt and EBITDA.

That's great. Thanks very much.

We'll take our next question from Jacob Bluestone from BNP Paribas. Your line is open now.

Hi, thanks for taking my questions. I've got three questions, please. Firstly, on equants, could you maybe just give us a little bit more of a sense of what sort of organic growth you expect? I think we grew revenues pro forma at equants by over $1 billion in 2023. Do you think you could do something similar, or should we expect the organic growth of X disposals to be somewhat similar? Secondly, and I appreciate you've commented on this, but I just wanted to clarify, when you talk about a stable situation at Colas, is that a reference to revenue or margin or both? If you can maybe help clarify the comments you've made on your expectations for Colas. And then finally, on the telecom side of the business, could you just give us your latest thoughts in terms of the state of competition? We've seen some perhaps slightly more aggressive moves on the low end from Iliad, but also a new offering coming on the fixed line side. So just interested in hearing, how do you see the market from here? Are things getting better or worse at a competitive level? Thank you.

Okay, on démarre avec Jérôme.

Okay, let's begin with Jérôme. Then we'll call on Pierre. Just clarifying a point. You can do it in French if you like. We expect similar organic growth next year. As we've explained, we will dispose of a certain number of asset-based activities. We expect our sales to be relatively stable. What we said was that it's the revenue that will be stable, not the operating profit. The guidance we gave you We are trying to eke out close to 4% COPPA margin, as we said. This year it will be between 2.9 and 4, just to give you some idea of where we expect to end up. Pierre, I'm not sure I fully understood the question, but I think we're asked about the guidance that we don't give about Colas. What was it about? Well, we feel that in 2024 the sales will be up a few percentage points, given the information we have and the very large number of countries, whether some are up, some are down, and it's always difficult to anticipate. But we expect relative stability. In absolute terms, we expect revenue growth. Thank you, Pierre. All that remains is Emmanuel's contribution. Benoit, it's your turn. Your question concerning the telecoms market. Now, I come back to this. In terms of volume, that's in terms of the number of clients in the French mobile market... The post-paid market is growing, but growth is slowing. 700 million new contract clients since 2023 after 1.2 million the previous year. The number of trade-offs... People are holding on to their smartphones for longer, their handsets, because handsets are expensive. Even though there is telephone operators are helping with these, but there's no real technological breakthrough. So people are holding on to their handsets for longer. This has an impact on market dynamics in terms of volume and value. In the fixed market, the fixed market is still dynamic. We're talking about fiber and boxes. Growth will be slower than previous years, but will still be buoyant. Thanks to the switch over to fiber, which is something that customers really want, to switch over to this new technology, which is a whole new experience, be it in the retail market or in B2B. So in both these markets, competition is still strong between the four main players, the four players. But our greatest asset in what we've been developing in 2023... is that we have been investing in the quality of customer experience, quality of our in mobile ad and fix. This has helped us attract new clients. Even though the market growth is slowing, we have seen an increase in the number of clients because we have good quality at very attractive prices. But the competition is still there, strong competition. There are promotional periods, promotional drives at certain periods of the year in certain market segments by certain players. But what we do is we provide quality that's good enough to attract new clients with a network that's very competitive, of very good quality. Thank you.

We'll take the next question from Javier Barbaro from Kepler Subaru. Your line is open.

Yeah, thank you. Good morning. Thank you for taking my questions. It's again on telcos. It's on the 2026 EBITDA guidance you provided in the past, the $2.6 billion. Just wondering how confident you are in achieving that figure in light of the 2024 preliminary or guidance you've given. And also, I mean, obviously, the 2026 guidance, obviously, I assume it was not including, obviously, the La Poste mobile acquisition. But to what extent that guidance or that target is dependent on exercising the option on SDAEF?

Thank you. Thank you. This is for Benoît, American star.

Thank you, Benoit. He's a bit of a star here today. Consigned the 2026 guidance, if La Poste Mobile is integrated, that will induce costs in 2026. So if we go ahead with this acquisition of La Poste Mobile, we'll come back to the markets a few months afterwards to update our guidance. to allow for the integration of La Poste Mobile. If we do not acquire La Poste Mobile, we will confirm our guidance for 2026. We're working on that roadmap, particularly on the 600 million in free cash flow before working capital requirements in 2026, even though the environment will be different. We told the markets in 2021 what our guidance would be for 2026. The mobile market was different at the time. Now the mobile market has less volume and less value than it did three years ago. We didn't have the inflation that we have experienced since then. However, we have good news in the fixed segment. So the context, economic context, and competitive environment have had a bearing on our roadmap, but we can confirm our guidance for 2026. Thank you, Benoit. So, confirmation of our guidance. There you are. Okay. Well, if there are no other questions, all that remains for me to do is to thank you all and wish you a very pleasant day.

Thank you.