Registration Document BOUYGUES

How did Alstom, in which
Bouygues is the leading
shareholder, fare in the
crisis?
Alstom contributed €190 million to Bouygues'
net profit in 2011, compared with €235 million in
2010. The group recorded sustained business
activity in the first nine months of FY2011/12, with
order intake rising 20% to €15.1 billion. Alstom is
expanding strongly in fast-growing countries like
China, Russia and Brazil and currently generates
60% of its order intake in emerging countries.
Alstom confirmed its operating margin target of
between 7% and 8% for FY2011/12.
Hasn't sustainable
development had to take a
back seat on account of the
economic context?
We have made our energy/carbon strategy one
of the priorities of our CSR policy. In practical
terms, in 2011 we conducted our first voluntary
campaign to consolidate greenhouse gas emissions
Group-wide. We have taken many initiatives
to reduce our CO 2
emissions and our energy
consumption of all kinds. Sustainable construction
is an integral part of our construction businesses'
strategy, embracing eco-design, energy
efficiency and the protection of biodiversity. At the
same time, we have continued to adapt our business
models to take better account of the environmental
impacts of our activities. Supported by
highly effective R&D and innovation departments,
our Group has developed specific know-how in
areas such as building management systems.
Can you give us some
significant examples of the
Group's CSR policy?
The Group's key value is respect, which is not
only an essential attitude if people are to live
together harmoniously but also a means of
improving performance. Everything stems from
respect, especially the equal treatment of staff.
Our business areas are taking practical action
on that front and the award of the Afnor Diversity
label to TF1 and Bouygues Telecom demonstrates
our determination to make progress.
We are also continuing our in-house training in
business ethics and doing everything we can
to ensure that our employees work in the best
possible conditions in all the countries where
we operate.
What is the outlook for
the Group? What is your
reaction to the arrival of
a fourth operator on the
mobile phone market?
We have set a sales target of €32,350 million
for 2012, 1% lower than in 2011, reflecting the
contrasting situations of the Group's business
areas. The record order book gives our construction
businesses good visibility. The economic and
financial environment is uncertain but there are
many significant projects in negotiation.
Despite continued growth in the fixed broadband
activity, Bouygues Telecom expects sales in 2012
to contract by 10% to €5,140 million. This factors
in the planned cut in call termination rates (an
impact estimated at around €350 million), the
development of SIM-only offers and the transformation
of the mobile market driven notably by
the arrival of a new operator at the start of 2012.
The outlook reflects good visibility in
the construction businesses and the
transformation of the mobile market
In this context, a €300-million cost savings plan
will have to be implemented in 2012, the effects of
which will start to be seen in 2013. I am convinced
that Bouygues Telecom will return to a satisfactory
level of free cash flow in the medium term.
As it has demonstrated in recent years, the
Bouygues group knows how to adapt to a changing
environment in its different lines of business.
BOUYGUES • 2011 Registration Document • 5