Bouygues

Hello and welcome to the group BUIG Q1 2026 results call. For the first part of the conference call, you will be in listen-only mode. During the questions and answers session, you are able to ask questions by dialing pound key 5 on your telephone keypad. Now I will hand the conference over to Frédéric Delaveau, Head of Investor Relations. Please go ahead.

Thank you very much. Good morning, everyone, and thank you for joining us for the presentation of BUIG's First quarter 2026 results. This presentation will be led by Stéphane Stoll, Senior Vice President and CFO of Bouygues Group. Stéphane Stoll is accompanied by Christian Lecoq, CFO of Bouygues Telecom. Following their presentation, they will be answering your questions. Stéphane, I now give you the floor.

Thank you, Frédérique. Good morning, everyone, and thank you for attending. Before listing our highlights, I would like to point out that obviously the global macroeconomic and geopolitical environment has remained during this first quarter very uncertain and very volatile. And as always, Q1 results in our group are not indicative of first half of the year and fiscal year results due to usual seasonality, especially at Colas. That being said, I'm pleased to say that Q1 group results were quite solid. Therefore, we are in a position to confirm the group outlook for 2026. Entering details, group sales were down 3.2% year-on-year, half of the decrease being attributed to negative change effects at constant exchange rates. Group sales were only down 1.7% year-on-year. Group COPPA was very resilient in Q1 2026, slightly up year on year, but I remind you that group Q1 COPPA is not representative of annual results. Then we also recorded a usual negative net result attributable to the group, nevertheless strongly improving versus Q1 2025. It was impacted for the second year in a row by the exceptional income tax surcharge for large companies in France. At end March 2026, our net debt significantly improved versus end March 2025, in keeping with the trend observed at the end of 2025. Last, I have two comments on our business segment. COPPA and margin from activities continued to improve strongly at ECOS, reaching respectively 205 million euros, up 28 million euros year-on-year, and achieving 4.8% margin and improvement of 0.9 points year-on-year. These increases continue to demonstrate successful execution of the strategic performance plan. Sales, for their part, had a soft start to the year. And in our construction division, the backlog at end of March 2026 was at a high level of 32.2 billion euros, offering visibility on future activities. Let's now have a look at our key figures on slide 5, and let me remind you once again that every year, mainly due to the seasonal nature of COLAS activities, Q1 results are not indicative of half-year and full-year results. That said, group sales stood at 12.2 billion euros down 3.2 billion euros year-on-year. This decrease was explained, as I already mentioned, for half of it by negative change effects weighing for almost 200 million euros and for half of it by a decrease in activity at Equance and at a lesser extent at TF1 and Bouygues Immobilier levels. Organically speaking, sales in the construction division were stable year on year and slightly up at Bouygues Télécom, which is good news. Like for like and at constant exchange rate, group sales decreased by 1.6% only. In the first quarter of 2026, the group COPPA increased by 8 million euros compared to the first quarter of 2025 and reached 77 million euros. This increase was mainly led by Equance, while TF1 and Britelecom were down as expected. The net result attributed to the group was minus 94 million euros, It improved by 62 million euros year on year. I recall that for the second year in a row. It was impacted by the exceptional income tax surcharge for large companies in France, weighing for minus 25 million euros during this first quarter. Last, net debt was 5.1 billion euros, an improvement of more than 2 billion euros year on year. This is a very good performance. Net debt at end of March was higher than at end of December of the previous year, as always due to the seasonality of our activities. I will provide you with more details about these figures later during this course. Let's now turn to the review of our operations of our construction divisions on slide 8. And let's begin, if you please, with the backlog in the construction division. As I mentioned during the introduction of this call, the backlog at end of March 2026 remained at a very high level of 32.2 billion euros, providing visibility on future activities. Overall, the backlog was down 6% year-on-year, but only 3% like-for-like and at constant exchange rates. Taking a step back over a five-year period, the backlog level at end of March 2026 was up 16%, compared to end of March 2022, with all geographic areas improving over the period. Compared to last year, you see that the backlog was globally stable in France, which is very good news, and down in Europe and internationally. This is not a surprise. It is important to recall that Wood Construction's backlog had reached its record high level at end of March 2025, Driven by Civil Works, I remind you that we took a more than 2 billion euro order intake in end of 2024 due to the project of Torrance with Darlington in Adelaide in Australia. And to a lesser extent by international building with some very significant contract notably awarded in H2 2024 as I mentioned. Let's look into details on slide 9 and start with Collas whose backlog reached 14.3 billion euros down 5% year-on-year and only 1% like-for-like and at constant exchange rates. In Rhodes, the backlog was down 7% and even a bit more in France as it is typically the case in an election period, local election period, like-for-like and at constant exchange rates. The backlog in roads was down 3% only. In rail, the backlog was almost stable year on year and up 2% like for like and at constant exchange rate. At brick construction, the backlog stood at 17.2 billion euros, down 6% year on year and only 3% like for like and at constant exchange rate. In building, the French backlog was up 9% and the international backlog was up 6%. On civil works, as you know, the award of very large contracts mechanically rates volatility in order intake in the backlog. That's normal in our business. And as I already mentioned, the basis of comparison with end of March 2025 was very high, due in particular to the Torrance to Darlington contract. So we are not worried at all about boot construction activity this year. as 2026 activities coverage remains in line with 2025. And I please refer to also the appendix detailing this backlog and the way it is spread over time in the coming year. Finally, at Bouygues Immobilier, the backlog was at 0.7 billion euros at the end of March 2026, down 21% year-on-year, 15% like-for-like and at a constant exchange rate, considering also the disposal of activities in Poland in July 2025. As you know, with the Immobiliers' Backlog is what we are used to call a secured backlog, meaning it includes only reservations when notarized, which is a bit different from what the market tends to communicate. So cutoff effects in our own accounting may have some impact. That was certainly the case in the first quarter. The share of backlog at end of March 2026 to be executed by the end of the year remains at a high level, providing visibility on future activity. Next slide, let's talk about order intake. As you know, order intake is subject to significant variances in rail at Colas and in civil works at Wood Construction due to the timing of large project awards. As such, quarterly comparisons do not really make sense. In June 1, 2026, order intake at Colas stood at 2.8 billion euros. Order intake in roads was down year on year in France. This decline was expected. given the run-up to the March 2026 local elections. Internationally, the decrease reflects a very strong comparison basis, notably in Morocco and Finland, where COLAS recorded last year important contracts. Let's notice the positive start of the year in the US. where COLAS was notably awarded, beginning of March, a major contract for the construction of additional lanes on the Interstate 10 highway in California, a contract worth approximately 260 million euros. As planned, there was no significant contract in rail awarded in Q1 2026, I remind you that Q1 2025 was very strong and had benefited from two very large contracts, one in the UK and the other in Morocco, representing around 640 million euros of order intake. At reconstruction, the order intake in Q1 2026 stood at 2.2 billion euros. This amount was largely driven by the normal course of business, which means for reconstruction, contracts worth less than 100 million euros This part of the business remained stable year on year at a high level and then counted for 74% of total order intake for the quarter. Even though the Q1 2025 basis of comparison was high, new major contracts were awarded in Q1. For example, a contract to design and build the Somme Canal aqueduct. an iconic structure on the future Seine-Nord Europe canal which will link Europe's major river basins worth approximately 260 million euros. We also recorded a new series of work orders in Sideswell nuclear power plant representing around 150 million euros and also a contract for new urban data center in Australia representing around 130 million euros. And you also probably read this morning that the Fair Honor Consortium, comprising notably Bouygues Travaux Publics for 41.5% and Colas High for 11.5%, has been selected by the Swedish Transport Administration to carry out a significant contract for the East Link project. This contract covers the construction of approximately 36 kilometers of railway line, including major earthworks and the constructions of 28 bridges and three viaducts, one of which is a major structure spanning 1.4 kilometers. At the end of March, the order for the first phase was played for early works for 50 million euros, but the total execution phase, which could get underway early 2025, eight, sorry, is estimated to be worth 1.2 billion euros. This is good news for future activity. At Brigue Immobilier, residential reservations in Q1 stood at 0.3 billion euros, which is a strong level. Despite the context of municipal elections, land-back indicators were also strongly up year-on-year, and residential unit reservations in France improved year-on-year. Let's now have a look at SAVE on slide 11. I will start by saying that, like every year, due to seasonality, as already mentioned, the construction division recorded results which are not indicative of the first half and the full year results due to collapse. That being said, sales were stable, like for like, and at constant rich exchange rates, with brick construction continued dynamic offsetting anticipated soft start at collapse and brick immobility. Looking into details, first sales at Colas were down 3% like for light and a concentration rate of 2.6 billion euros. Q1 negative impact for exchange rate was 50 million euros. As published, sales were driven by rail, up 3%, while road was down 6% with France, down 4% in relation with local election, and international down 8%, penalized notably by adverse weather conditions in Morocco with very heavy rain in the first quarter and Central Europe with a very cold winter and some negative exchange rates. Second, wood construction sales were up 5% like for like and a concentration rate at 2.6 billion euros despite Q1 negative impact from exchange rates As published, sales were driven by France building activities at 10% and civil works at 16%, while international building was down 19% due to the end of important works, notably in Morocco and Australia. Last, a book immobilier. Sales had a soft start and were down 6% like for light. We do not expect this to be a representative of expected annual trends. Next slide. Current operating results from activities of the construction was minus €212 million, improving €28 million year-on-year, thanks to a lower seasonal loss at Colas and a better result at boot construction. Copa margin at boot construction reached 3.1%. record high since Q1 2018 and last COPAT Bougie Mobilier was penalized mainly by a low activity in this first quarter. Let's now please turn to the review of operation for Equance on slide 14. At end of March 2026 Equance backlog stood at 26.1 billion euros, a solid level, even if down 1% year-on-year as published, but up 1% year-on-year, like for like, and at constant exchange rates. The order intake of the first three months of 2026 was robust, and so that 5 billion euros, slightly down year-on-year, with still a gradual and continuous improvement in the order intake margin. To be noted, New contracts were awarded in data centers and gigafactories in the US and in Europe in Q1. Some additional contracts are expected in the coming weeks and months. Coming back to the Q1 figures, equance sales were down 6% year-on-year in Q1 due to three factors, essentially. The continued selective approach to contracts and business strategy. Second, the soft start to the year in some niche markets and geographies. And last, around 80 million euros of negative impact from exchange rate. In North America, any growth in sales was totally offset by negative exchange rate effects. These Q1 figures do not affect our outlook for the year. Regarding profitability, Equor's contribution to the Group Scopa represented 205 million euros with a 4.8% margin from activities, up 0.9 points year-on-year, highlighting the continued successful execution of the strategic plan. Last, Equor secured, during this first quarter, two bought-on acquisitions in Italy and in Singapore, both specializing in cleanroom activities, they represent an annual revenue of around 40 million euros. To end with Equance on slide 15, let me just add that Equance continues to roll out its strategic plan and confirm it is targeting for 2026 stable sales versus 2025 as constant exchange rates, a margin from activities of 5%, a year ahead of the target set at the 2023 capital market day, And third, a cash conversion rate before working capital requirement of between 80 and 100%. I now give the floor to Christian Lecoq for a detailed presentation of BookTelecom's Key1 key figures.