Registration Document BOUYGUES

1
The Group
2011 key figures
net debt
€ million the share repurchase tender offer),
€ million
3,862
net gearing was 40%.
2,473
1,478 b
2,384
2010 2011
23% a 40% a
(a) Net gearing
(b) Share repurchase tender offer + 4G frequencies (2.6 GHz)
Cash flow generated during the year enabled
Bouygues to achieve a slight reduction in
the level of net debt relative to the end of
2010 (€2.5 billion), before taking account
of the €228 million spent on a set of 4G
frequencies in the 2.6 GHz band and the
€1,250 million spent in connection with the
share repurchase tender offer.
The overall year-on-year movement reflects
the following factors: operations generated
cash inflows of €1 billion, while the dividend
payout represented a cash outflow of
€694 million. Acquisitions during the year
generated a cash outflow of €114 million,
while other miscellaneous items (effect of
changes in the scope of consolidation, and
share repurchases net of capital increases
and the exercise of stock options) generated
a net cash outflow of €103 million.
After taking account of the two exceptional
items mentioned above, net debt was
€3,862 million. Given the reduction in equity
capital due to the repurchase of 47 million
shares in 2011 (including 42 million under
e3,862 million (up e1,389 million)
Trends in net debt (or net surplus cash) by
business area were as follows:
> Bouygues Construction: net surplus cash of
€2,869 million, in line with the level at the end
of 2010.
> Bouygues Immobilier: net surplus cash of
€507 million (up €131 million), a very good
performance for a property developer.
> Colas: net surplus cash of €28 million,
representing a year-on-year improvement of
€85 million in the net cash position.
> TF1: net debt of €40 million, representing
a year-on-year deterioration of €57 million,
reflecting the acquisition of a property housing
staff from TF1 SA and LCI.
> Bouygues Telecom: net debt of
€581 million, up €411 million, due largely
to the €228 million spent on a set of
4G frequencies in the 2.6 GHz band.
Net debt at Holding company and other
level, amounting to €6,645 million, was
€1,150 million higher than at the end of the
previous year, after taking account of the
€1,250-million impact of the share repurchase
tender offer.
Rated as A3/stable outlook by Moody’s and
BBB+/stable outlook by Standard & Poor’s, the
Bouygues group successfully completed an
€800-million bond issue at the start of 2012.
Bouygues had excellent liquidity as of
31 December 2011 (€8.4 billion, including
€3.2 billion of cash and cash equivalents and
€5.2 billion of undrawn credit facilities), and a
well-spread debt maturity profile.
2012 SaleS tarGet e32.4 billion (down 1%)
31,225
2010
Sales target
Sales target by business area*
120
2,620
32,706
5,140
2011
12,500
10,000
32,350
2,450
2012
(target)
(*) Impact of intra-Group eliminations: -€480m
n Bouygues Construction n Bouygues Immobilier n Colas
n TF1 n Bouygues Telecom n Holding company and other
The 2012 sales target of €32.4 billion reflects
a contrasting picture across the Group’s
business areas.
With the order backlog standing at a record
€24.8 billion (10% higher than at end-2010),
the Construction businesses have good
visibility. The economic and financial
environment is uncertain, but many new
large-scale projects are under negotiation.
Despite continuing growth in fixed
broadband, Bouygues Telecom expects
sales to fall in 2012. This forecast takes
account of the planned cut in call termination
rate differentials (impact estimated
at approximately €350 million), the
development of offers sold without handsets,
and upheavals in the mobile market
(especially the arrival of a new entrant at the
start of 2012). The negative impact on EBITDA
is expected to be around €250 million,
including €90 million from the cut in call
termination rate differentials.
Against this backdrop, a €300-million costcutting
plan is due to be implemented in
2012, with the effects being felt from 2013.
Bouygues Telecom will also continue to invest
in infrastructure in order to keep pace with
rising usage levels: a block of 4G frequencies
in the 800 MHz band was acquired early in
2012 for €683 million. Excluding frequencies,
capital expenditure will be in line with the
2011 figure.
As it has shown over the last few years, the
Bouygues group has a genuine capacity to
adapt to the changing environment in each of
its business lines.
BOUYGUES • 2011 Registration Document • THE GROUP • 17