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

Bond issue
On 22 July 2005, Bouygues SA
launched a €750 million bond issue.
The bonds were issued at a fixed rate
of 4.25% per annum and will mature
on 22 July 2020.
subsidiaries as follows:
Bouygues Construction: €49,977,360
Bouygues Immobilier: €44,010,000
Colas: €104,473,857
TF1: €59,180,267
Other: €3,053,644
correspond to Bouygues’ vocation as
an entrepreneur. The Group preferred
to preserve its resources so that it can
invest in other projects better suited
to its development strategy.
Employee share
ownership
At the end of 2005, Bouygues SA
carried out a €250 million capital
increase reserved for Group employees.
9,972,331 new shares were created
for a corporate savings plan entitled
Bouygues Confiance 3. The dilution
resulting from the capital increase
was limited by the cancellation of an
initial 1,048,873 shares, followed by
a further 7,312,776 shares, acquired
by Bouygues under its buy-back programme.
The estimated €30 million
benefit to employees was booked as
personnel costs at 30 June 2005. For
accounting purposes, shareholders’
equity was increased by the same
amount to offset the reduction in
profit.
Services rendered
to subsidiaries
As well as being responsible for the
overall management of the Group,
Bouygues SA provides a range of general
and expert services to Group
businesses in areas such as finance,
communication, new technologies,
insurance, legal affairs, human
resources, etc. For that purpose,
Bouygues SA concludes annual agreements
with its operating divisions
under which it invoices them for services
rendered.
Management
Bouygues SA pays particular attention
to Group management, taking steps
to encourage exchanges between
support structures and line divisions,
maximise the benefit of accumulated
experience, provide leadership and
develop team spirit within the Group.
Financial flows
In 2005, Bouygues SA received dividends
totalling €260,695,128 from its
There are no significant flows of funds
between Group subsidiaries. Cash
management is centralised within
financial subsidiaries wholly owned
by Bouygues SA. This arrangement
ensures optimum management of
financial expenses, since the surplus
cash generated by certain companies
can be used in addition to or in place
of confirmed lines of credit granted
by credit institutions to other subsidiaries.
BUSINESS ACTIVITIES
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