A N N U A L R E P O R T - Bouygues

KEY FIGURES
NET DEBT:
€2,352 million (up 25%)
ROCE (Return on Capital Employed) (1) :
2006 SALES TARGET
€25,300 million (up 5%)
(€ million – IFRS) 2003
French GAAP
2004
IFRS
2005
IFRS
(€ million – IFRS)
1,875
2,352
2004 2005
At the start of 2005, Bouygues recorded a cash outflow
of €1.7bn due to the exceptional payout, and a
cash inflow of €1bn due to the sale of Saur.
Bouygues' financial position remained healthy at
end 2005, with net debt standing at €2.4bn, or
42% of equity. This debt figure includes a liability
of €460m relating to the reciprocal call and put
options exchanged with BNP Paribas relating to its
6.5% interest in Bouygues Telecom, and excludes
debt carried by TPS which is held for sale.
Bouygues Telecom and TF1 reported net debt of
€441m and €351m respectively. The other businesses
reported cash surpluses: €1,874m for Bouygues
Construction, €415m for Colas, and €150m for
Bouygues Immobilier. Debt carried by Bouygues SA
and other activities amounted to €3,999m.
In view of this robust financial position, with an
evenly spread debt maturity profile and excellent
liquidity, Standard & Poor’s has maintained
Bouygues’ A- rating with stable outlook.
Group level
Bouygues Group 8.6% 12.7% 16.5%
Business level
Bouygues Construction +++ (2) +++ (2) +++ (2)
Bouygues Immobilier +++ (3) +++ (3) +++ (3)
Colas 22.8% 26.8% 34.6%
TF1 16.0% 17.9% 15.5%
Bouygues Telecom 8.5% 12.3% 15.4%
(1) current operating profit after tax and share of profits/losses of associates divided by average capital employed (equity + debt)
(2) ROCE is not meaningful for Bouygues Construction because its activities generate high levels of surplus cash. One of the key strengths of
this business is its ability to grow without tying up capital.
(3) Bouygues Immobilier has a very high cash surplus, because Bouygues Immobilier has for some years been generating exceptionally high
cash flows because of favourable economic conditions.
The Bouygues Group achieved a substantial improvement in ROCE during 2005, from 12.7% to 16.5%. In the two
years since 2003, ROCE has virtually doubled.
The current level of ROCE is significantly higher than the weighted average cost of capital.
2,600
4,560
10,050
240
6,100
1,750
Contribution to the Bouygues Group
■ Bouygues Construction
■ Bouygues Immobilier
■ Colas
■ TF1
■ Bouygues Telecom
■ Holding and other
In 2006, Group sales are expected to hit €25.3
billion, up 5% on 2005 (6% in France and 4% on
international markets).
Construction businesses should continue to thrive
and are likely to show a rise of 5% at Bouygues
Construction, 12% at Bouygues Immobilier and 7%
at Colas.
Sales should grow by 4% at TF1 and by a modest 1%
at Bouygues Telecom due to a reduction in incoming
rates.
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