BOUYF - Earnings call transcript Q2 2022

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Olivier Roussat

Good morning to one and all. Thank you for joining us for this presentation of Bouygues' Interim Results First Half of '21-'22. I'd be presenting with Pascal Grangé who will do the financial part of the presentation just after me, and after that, we will take your questions with the five heads of our business segments and members of general management.

Let's begin by giving you an update on the acquisition of Equans. On this slide, which is Page 4, we've met the various milestones.

both of far we go-ahead as employee bodies XXth purchase the from all, representative so Engie. agreement, we of of May signed XXXX, sale the First and Equans received the

Belgium second nine with green from us its divest the to commitment was we to subject months. Equans, Rail Antitrust light XXth July, to the of The when within milestone to of received acquire body European a maximum authorize on we Colas complying

the CMA, which current when worsen of North U.K.'s HSX Competition decision The Xth for Authority, was third concerning underlining tender London. potentially the and Markets catenary line, systems as transaction the had on it's the milestone to competitive conditions, would the High known, down relating railway that Speed of July, this X

this had aimed a we us forward. agreeing milestone to CMA have the correcting the at reached the Again to with identified. put decision, remedies they we authorizing test remedies morning, So further anomalies

few a give various have remedies us stakeholders. they the these testing weeks with So after feedback answer, to

on final Antitrust the that bearing of mind still the acquisition is of the is completed the to as second in slide, mentioned be So the expected XXXX, in that closing body the we've known U.K. milestone this half CMA.

is within acquisition - TFX second the is merger acquisition The and or the proposed proposed MX.

authority, put will the teams the relevant. decision, or have institution final investigation longer proposals Competition On who investigation to reject. the or remedies, the not the number significant the the XXnd project be The the the Clearly, team relation investigation put will to be teams investigation teams. Authority's issued not French a in of authority, should accept of will forward the especially It pointed be teams. anti-trust be the forward to the accepted would college raise received not we be college July, just if being a that will investigation decision college were advertising we taken market. by but and sovereign be competition accepted, out The which report of by

to at X. the For we'll moment, August, the the weeks, the XXth teams, make comment the by inform item-by-item then with time, of within will investigation meet points will to around to of we raised next the of not plan which we three any and the board authority's the and college intend the original X authority next authority the we September changes

the results. Moving on of our to Page - figures X, main highlights main the interim

of war The actually, first started half start the of We the day in very presented the our Ukraine. annual in XXXX by results war was marked Ukraine. the

are half difficult of that The course, restrictions by complex and effects marked considerable also the impact supply macroeconomic care global are to and which continued China, geopolitical first in anticipate. on health trade There a had was lines. and also quite

So in with nonetheless in peculiar had with the much results last million somewhat good we've trend a we've years, in this publishing environment that sales. succeeded stronger XX in €XX.X inflationary

have sales. to are been a that X%. that on basis, sales our So would X%, half-year like-for-like thanks increase Colas up mainly With

the last Our profitability. €XXX current significantly and period million year. was €XX operating profit operational improved and on up million, their Media both improved telecom, same

been period operating back MX. and I'll the of a by margin but service current TFX X.X%. on. €XX €XXX relating have to year been compare later and Colas, disposal been sold of once and €XX million, million. in centers for businesses first once net The a a stable at the Alstom, €XXX from sold, construction bit to costs a once due included sale includes million be proposed we they acquisitions they've expenses, contribution or when to data income was they non-recurring million profit the this can't the half of However, in the impacted Again, they've total can't previous the come of attributed little mainly of from this shares. year Group essentially merger the second so with for year, the was time. sold disposed, But last the two again. Net profit to And profitability Colas during course, And of the non-recurring be

So the are Page words - outlook on funding the acquisition. confirming presentation, we of the Group's that said, the a about outlook now X XXXX. few the Equans for

investors tranches, a of over received a from evidence €X tranche a On the our period loan years signature good quality billion very of XXth seven X.XX%. at €X two syndicated billion with of May, clear we welcome the which of

Now we took slightly for which out the below X.XX%. cost economic actual the pre-hedging was of instruments as a result Group

XX-year with over to acquired, period Group Again, coupon we instruments pre-hedging cost The second for below these economic a thanks the slightly the X.XX%. at a tranches X.X%. was that

Standard CreditWatch. have in been our with refinancing Now, us the passing in the syndicated various since XXth unchanged SE the in ratings with XXXX, at of should November These a step look these bond business at issues first are I outlook segments. Bouygues a taken and rating an our loan Equans. & of initiatives proposed the that to a minus Poor's have €X I say, AX subscribed view with of the have acquisition December Moody's, has syndicated that have we that to in stable XXXX. A with we that, a - billion now three-year negative

We have five we on in examples taken climate biodiversity, for we've work this of just our and continued to each have segments. and slide, initiatives of the

with energy which solutions, innovative Construction, is begin out the Bouygues up on active into R&D, offering buildings. Construction energy Let's of part come losing with buildings the involves energy converts very This has left, rolled which which our Bouygues its BYSprong renovation. which

at North the methods working XXXX on industrial from While were XX you where houses Paris will we did what photograph, of see Longueau, EMEA, renovated.

These landscape called is Bouygues our which designed biodiversity Immobilier and systematically of group the also gardeners. apply being June, pour is with to Immobilier comfortable with second XXXX, and concept Vie, doing to of itself Immobilier. concept The the dedicated the Jardin environmentalists cities. every XXXX. on housing example are and its idea its by back Vie. its in de biodiversity. launched has Colas favor designed sustainable, all its more This set modular day in with projects of and second Since target pits Bouygues gardens Coeur initiatives we something one gravel a more nature The Bouygues the second XXXX. more is la called each broader - biodiversity but bring a In for into quarries

films development. Awards, awareness raising thanks documentaries sustainable was prizes. As eight the won for to about Deauville at TFX, This TFX Green number the of a and

in applied at our SBT Telecom Bouygues have we Bouygues is approval initiative where Another for Telecom. for climate targets

services. disposals a Let's construction the constant exchange it's main up rate, At operations, end look including the review backlog with for only construction the beginning of now services not take and June X% and and is €XX.X and XXXX, at X%. billion, on our up acquisitions,

another see France contract and up the driven Order there are - taking up on can metro down U.K. XX% Construction, when €XX.X and is order on You there, thriving the contracts Cairo, that below contracts book. we on slightly and that is to is them, such But by the a also to - is five are tracks equal future. It's compared million. XX%, on that competitive. the metro in that's Energy is is as in consolidation high and more we order the Services are good orange QX, where tunnel for road we which didn't scope years. order visibility there then this there sign anything these fact in regular Bouygues there for at well, very that doing hike is a book good exchange in & X%, an Colas' - there and in competition because book they well, contracts June public Egypt XXXX, conversely, book railway includes modernization means that a Colas means is both major the are €XXX major But of in These drawing this that business buoyant a works or business order renewal stands business the XXth with U.S. for basis, the bar billion extension The there of is the significant signed and the Bouygues business HX. and no well, rate

doing property Now demand high. is property, well, residential Immobilier is on

So office less buildings - are more are sort there residential. for of active, that's

'XX, June reservations that's why the compared it's Of are fewer is the All to sale blocks than be in because in XXXX. down of done is that course, we we apartments but up a December there - book but all, stable rather less is building HX in sorry, in - so is because low, XX% also XX% The demand, compared HX. XX% compared to down permits. have lag there Bouygues to Immobilier's down stock order - will

and said, down aspect and €XX stable, the business, revenue at Current the less there Let's for business the equal the Bouygues look HX that's for including Revenue lackluster with its was with was scope this increase Immobilier materials but and scope of of exchange to of office and business the in course basically key was of business, the an for operation as of because because Suez, driven residential up services revenue takes XX% in was Construction €XX.X rate there on construction and that's XXXX. equal that is There construction operating billion, profit there X% X% for the I international was because sales not Slide significant also basis, an us a mostly energy. up building Bouygues raw the basis and Colas' XX. was Colas. figures price by X% whereas on that's million. and construction is XX%, rate and exchange year.

HX no so have where because America, is period losses significant there Colas a North to only have is remember that's we You that in then. for not business,

income is in profit the for profit of the operating current the not the year. or representative HX So

current down X.X%, period. Our percentage stands operating that for X.X points margin at

on X.X% margins, X.X% Building performance Energy XXXX. & to with in If public of is profit margin work there we stable current grow good the HX at is Bouygues in XXXX. HX and margin why because were X.X% X.X% with Bouygues profit that Construction various Services compared The operating X.X%. able was you in profit is zoom compared

under profit sales, control, in lower Immobilier, that current standing at that's in Regarding the kept were operating Bouygues was of and year, of costs last line why with spite X.X%.

look minus current €XXX million HX. because at profit closer that operating a for take stands Colas' Let's at

pass are that spring weather business there favorable XXXX, of started XXXX. because or spring well, to of of - on HX the - comparing the or less There of businesses Now Colas late a for basis its comparison less not weather to XXXX, explanations we a a meant early in favorable and had XXXX. to effect regarding energy was In inflation and which customers. position price was Canada early in materials increased is raw HX in distortion

that to we means the gas. You were the up went orders, in our it's our up, remember the some and our customers. is it price needed have that as - because to in Gas able bitumen of cost all not bitumen include include not and and heat on costs locked went of to not - gas pass price up of that own to hikes. was that Revenue did that that

have margin is clauses us margin that price the and the the stable, then combines Some can some when margin the index of dilutive the well, so - reality goes America, up, ton, the basis. prices actual and on because if well, down. the well, cost up. means this the And that compounds the and the down reflect the the the then profit enable goes of on - - profit on when ton But some go up, ton of not not And this increases mechanically in do exchange we on, goes clauses the punishing North Then rate partially losses percentage goes for - and - business profit index-linked. of profit up And always on course passed the if if a the margin price prices. the generate the the is up, goes of the especially remains but the bitumen go because be stable, the to remains if especially you works the losses, bitumen, revise this that, phenomenon. dollar fixed if cost, in price top indexing price are HX,

media that and XXXX, that €X.X Newen - comparison created X%, details which the and had The in reaching in will good Frédéric TFX, Gil two up Studios Cup, remember the Euro favorable. give of quickly. TFX revenue, Let's less the more were up was over so so X%, go involved you I we in were well, you revenue advertising Football HX. June was Revenue factors but billion. involve There had that of that growth. operational is the basis a may performance

Newen Studios because made And profit production. down. that HX, two and €XXX and cost Germany, to that's and we million Newen Spain kept stood and its acquired studios a in in programming at current the difference operating

inflation, result, financial As TFX. than what on - performance the outlook in operating was made Page has HX Ukraine an The current on profit margin the of not XXXX. XX, XX.X%, higher macroeconomic have it On the a environment, was for much you impact HX.

and to second we the will our have under control costs remain for to have there. keep However, half, cautious we'll

is Telecom's XX, and Page performance. to move Let's that on Bouygues

the going that get momentum regarding to sales Now, was HX. performance, in the

XX many has contract - new HX HX XXXX. they marketed customers, as million premises HX, FTTH customers higher to see XXX,XXX you not have That's QX. expected. by in new XXX,XXX than including gained new XXX,XXX to from machine-to-machine. that was And FTTH in marketed have premises And as the customers and additional compared We customers, an also were

premises We that end and expected million by XXXX, XXXX, reached actually June end at marketed XX we figure.

fact, what million that's PIN were X.X are marketed. XX.X premises, million in the new addition and is the areas less for XX% In The there as competition we good where known had us. of premises

per we unit, sales on you unit also is well. had our move customers, The that built bill actually Page performance We to income. what let's average a Now that's doing good had XX. but good

to be you down. ABPU revenue, text see roaming. as because this over on up the including rates €X.X the but €XX.X. on mobile are recover entering was in €X this messages, In there Well, As so in The to incoming - In up can message, then But and messages slide, case, not why are revenue apps business, the by times. in incoming because able roaming €XX.X, was fixed P&L it reaching what increased may were for do year, cancels there offset the which regulated was when ABPU not but there no voice - out. one are not a text expenses that price any difference was is you - generated outgoing respond downside. was to receive from is this We messages parallel, income and incoming makes there any of that's OTT reasons down, revenue. regulated, because and the that it then two services you generate pre-pandemic uses

XXXX. in Mechanically, the revenue Regarding and the X%. after in was overall that's year, were was the less X% over XX.X% up of for the business. EBITDA was well X% handsets billion, to HX €X.X kept one expected. leases costs revenue line than services, compared The was period, mostly others up EBITDA XX.X% up control, Because and that's under it after leases

same our and is capital - CapEx million, strategy. expenditure the period, that with line our in €XXX investment Over was up

expenditure. centers, was capital objective were line that €XX billion period HX annual €X.X to in €XX over with Disposals Our compared and million the XXXX. the in is million, data in

we to and Next networks because partnership companies. gains XX, a also in that And reduce June, on in are reducing stage billed times on status extend us aspect bit to other, the has text mile, shuttle network. the It Telecom, including the Bouygues on and - means we leverage security, core demand. strategic cars XG. enables message carbon and last to technical, customers, Open and reduced, that we the vehicles slide, - to with so to new Slide incoming we improvements benefits be project other - road autonomous the XG, makes XG able we - move mobility for the regulate take that fluid address outgoing service the have partnership on using take well that's that's we'll address can a footprint using areas, Bouygues can we Road financial looking players the specifically. to look it pedestrian reached that new of another the revenue Move to out vehicles at than all but can - we to to look of the the revenue. full control together private be report of to launched to issues mobility, each and a restate we connect in performance those benefits in XG a devices signed that a to Ericsson want areas. network well, traffic Telecom And will in to this, we that. revenue, a - objectives, In now Instead latency. more of on bring urban logistics dense safety, standalone but means to mobile enabling at latency of and we to spring, of criticality, more - a and

revenue, whether receive outgoing, charges Now completely you incoming an outgoing responded. SMS whenever the services to you incoming is revenue and you have use offset by you remember, well, -

incoming not since customer it revenue reached. any that to and that In to reached X%. grow we - that - We've has outgoing. we - case, by to to we're X% expect be so renewing so increase And the build not been we - do that find objective cancels objective

has confirm Now compared X% good its will the to Pascal and Now, after accounts. details billion, performance growth EBITDA of Thank for we CapEx upwards €X.X half-year you. give about rate its EBITDA revised of you Bouygues Telecom because leases, annual XX%, to

Pascal Grangé

you all. to morning Thank you, Olivier. afternoon Good good or

operating of statement Concerning minus going Non-recurring year. commented. items as on minus not few million, Page I'm a dwell current been million last explained, accounts up non-recurring additional of that Just to €XXX million, have are the the explanations sales income after income already and XX, a €XX or profit XXth. as €XX June on

the down two-half abroad June whatsoever at non-recurring million, that's between way income €X.X the end That's losses, due XX%, end June deferred As years. rise of income should XX, of say, you broadly debt the see, profit first the includes million much and million $XXX give XXXX. an due the the net entirely lesser income The after expenses which decrease of net I This in net extent relating million, at end not XXXX, merger of to end million, year, half-year debt taxes. June tax and last XXXX. Group's contribution level to at from because to The of Equans than had XXth the €XXX the do is absence was this as to speaking due the and €XXX cost to half XXXX, €X.XXX statement, any non-recurring year. of cost net last Telecom to of This XXXX, record. MX. XXXX. profit $XXX €XXX after between ventures was joint a the calculation quarter TFX million of been tax at of million contribution end just of or XXXX. of debt at the $XXX center the Alstom. amount the but in was was our in can Page billion any June, already the mainly to which net down million, this of proposed of of Alstom, from acquisition €XXX between rate absence the from the of in has June too explained, rate for the the of Overall, of June was effective data disposals Working decrease share share, income of Group losses Bouygues or stable reveals after tax XX% effective in a

subject up the net of debt net business. next year, debt talk the to half low end to with The our to of you the half still that in I'm very even gearing traditionally is Now, XXXX. pages, first of reminding is ratio year comparison the though it's first going by at XX%, in June seasonality you change about the the slightly the

So Page XX.

Buyback level. €XXX of totals said, which debt total shareholders €XXX we month of follows. I've same interest million, pre-hedging and shares at and next but last a includes billion million, after of €XXX or million. end of after total €XXX our the was and total million, this At year, was end for billion, minority As explained net Equans June to XXXX. of this Acquisitions May €XXX of total Variation or million, totaled a net dividends at paid payout in XXXX, Dividend €X.X TFX. six Colas, payment also these deducted the in on fair and Bouygues agreement will which course €X.XX end €X.X That XXX million, as the the of at variation €XXX record - rates the debt date deal. treasury in plus swaps we at €XXX for million period that I'm million disposal over on mainly, shares June of of amount slide. of the million, is mainly to This acquired end the the swaps million €XXX March a the at TFX sorry. value cost - €XXX of of the to Engie the I for buyback of closing the Gamned! just purchase be a for of paid of at a the value of of XXXX, dividends includes of XXXX, when TFX at €XX from signed and billion, December the operations share explain Engie, will a last. also the amount of purchase to This XXth the the to of TFX and be time

value over time. Of course, this fluctuates

€XXX XXth the was for On example. million, it of July,

time was on cash a engraved not swaps were the value fair which received which issue have May. million of the issued the €XXX million at marble since contingent at this our contingent in €XX of swaps the this swaps component for swaps. the issue, bonds been Likewise, €XXX XXth in includes million - So in we of

after the Colas for is of the half by of improvements inventory the last to - Page XX, Let's before end mentioned paid end in now trade was my the due me the comes leases Equans by an the breakdown cash materials of years working at was And change the expenses Thank the billion, floor. of XXXX. is including financial MX and change occasions half That of the increase Ney look the attention. the CapEx flow, Olivier, logical, TFX quarter. first €X strong quarter. largely WCR of deterioration March due in transactions. operations. and change €XXX a reflection over values at debt, up brings presentation details billion so investments is this in in Net requirements of was payment with in to substantial increase in in which back - of million. to This first This This the two line during plan. mainly give made fraction a Telecom capital increase after billion, requirements sales numerous the and €X.XXX capital particularly of in operating the the quite and you the was minus raw change ambition on in The Bouygues in billion, its the XXXXX €X.XXX receivables your of increase at I others in because working at statements. €X.X a as minus net

Olivier Roussat

Okay.

review outlook Group. the a with of presentation this for up the wrap Let's

we COVID-XX, any and You on does situation not further will excludes to this and is it and acquisition the based deterioration information date, see Equans merger have the include due between of or that to TFX here MX. in

aim or other given for we for vigilant XXXX, and certification months changes This can changes. regarding moving the So and nine which receive XXXX, these macroeconomic current XXXX, questions answers, SBTi before result, results questions we let profit. decarbonization as In for which other of on our and the XXth to in the increase a segments. will will results, our in that And place will on will consequences, any of once communication approval we sales our received indirect the we out, senior very things of us and answers, SBTi on our to factor November. we year, you further a have all me be in be - first when expect remind we our this and next all direct targets, all the take to activities with And managers. take brings regarding operating

Operator

First from question from is Instructions] Robilliard [Operator Mathieu Barclays.

Mathieu Robilliard

I'd synergies in is better also - due this EBITDA a other to the due targeting for in Thank see increase the that - tell better. us record, not But of anything concerning the of is guidance but even In at a us to Could the up, Or business? to substantial increased increase parts half EBITDA. up this that but like first I that in you to understand X% the given results half the giving feel contribution a we anything you a more XXXX, first margin you will also this lot will maybe was wondering, second the like acquisition of half There's margin XXXX. be ARPU you'd question for on year concerning for can EBITDA substantial there this were any further written presentation. growth. a there expect I in Colas? And will I or you're the have just year, made? from despite it was I were have think was question provisions the I of be back. is telecommunication. year construction. be good write-back a provisions? about year, now do XXXX? do

Olivier Roussat

question. is explain improvement explain would while EBITDA. to I Benoît ask Pascal this in I to the got preparing telecom's

is The provisions business. three a explanations, as you we no Well concern provisions in Construction. fluctuations Immobilier of concerning Bouygues in first Bouygues construction of real particularly the there the is with for know, volume business, number the construction how high, traditionally, the the so or question activities Colas, phenomenon of not, provisions have in any construction provision our

So nothing unusual there.

the concerns regarding question Colas. second guidance The we gave

like the half isn't I'd in the volume be you. gave to actually that what except there to for we real that guidance lesson learned effect, which to X% no a from dilutes sales margins. is stress due nothing year, the this is - the increase first XXXX, inflation to fact due the For but fact

because explained, obviously, also formula As sales, notable sales this XXXX. is This Olivier margins. But or whatever, improve increase our is inflation increasing particularly costs. our compensated have we're in or when but index to we an boosts our not Roussat

tell on visibility need However, to you got be XXXX. able to we an this impact we have the haven't if will

soon I this should an average which to particular XX%, increased too Colas, aspect is say. at of from it's that if by purchases XX% of look point So to we've consumed sales clear of you sharp increase behind on cost the materials. second reasons evidence Bouygues that that question there Telecom's the and a the Benoît, to improvement answer EBITDA if fact concerning raw you'd of like it? in was out

Benoît Torloting

- only at does well. contribute rose improved contained why to revenue by by Costs cost Other That's time X%. simply a have EBITDA costs not has our our Telecom We've Bouygues significantly sales. very increased we than over when EBITDA. our our Yes. well-contained. X% that slower It's been have sales

Next question.

Operator

from Cote-Colisson Nicolas HSBC.

Nicolas Cote-Colisson

Bouygues of construction question first My Telecom. concerns

and is in Was expect the of the to in More for in your bit in proportion this works you fixed in tell going explain could telecoms, works and you're - what volume do a about you increase global against and is PPP different despite what more more public us phones, infrastructure? effects, about the your positioning the what further prices ability question public ABPU Regarding you underlying So construction, you impact expect contracts, that How demand, the as costs ABPU projects timing as about and increase little complex prices? for generally demand speaking, do protect to for slowdown due mobile rising? to despite the the fact clients? new projects? margin for

Olivier Roussat

Pascal question Let your me both just construction. is have - been cases, about talking market that in before developments be to quite the out increased answer will prices first remarkable increase, from which concerning I in point

Pascal Grangé

Yes. afternoon. Good

areas. particularly contracts two demand Yes, our there markets, public large public the and works Regarding is infrastructure projects, particularly for market. in strong

transport course, projects line, involved called, Greater the speed Australians, project, public projects in Melbourne, also construction, with also very, number involved but where it's large infrastructure in Paris we're Grand or but the large in First of of in very Paris tendering. and of HSX, large a all, transportation, very particularly Sydney U.K., as cities. infrastructure with The high

The they're partners involved area is we're also is as projects, energy-related This for the Nuclear the civil C, in EDF and are the in in the which low-carbon projects. in projects, also tenders involved Sizewell U.K., EPO course, of second the other Hinkley you alongside and We're power project nuclear partners. engineering for elsewhere Point France we know, plants. EDF. ongoing

wind carbon low - involved XX the thing, projects extent to these offshore lesser in the France second working a the also there in So built the projects power offshore. wind of camp the in nuclear base We in projects We're on building. we're farms one but we're Asia our sector, is U.K. first and also and

the or two are projects or a world. the and projects projects, maritime in of extensions throughout other also So the carbon transport, projects demand There for infrastructure, they pipeline, business, others involved public in We're these are there's so, sea. but, the sometimes the big into yes, of land areas. first coastline emerging around lot low type energy

of PPP part public-private They're but Relatively of there, the small. question very it's low terms proportion handful Second at share of PPP, in partnerships. projects. the of a

in concessions have Benoît? else we three At tender stage. the think partnerships. nothing moment, I public-private is the the brings to there in mind

Benoît Torloting

concerning in the telecoms, increase Concerning and telecoms. ABPU

we propose We a for - MorphaBond. have mobile few services, we in we years, additional cents. recent data offer While exchange in euro called what phones additional

that cohorts is at result ABPU the quarter But It's of linear to isn't increase over always look which one by or the of growth a year another. strategy. as year times at targeted from the two. will ABPU the it regular if last in different MorphaBond of time, We continue over you

isn't constant growth. was There growth. there's So it linear always sometimes

there - rationale that's is to little and mostly, effect. seasonal and it's still So In a fixed the will lines, we a pursue continue sharper pursue that.

the Sometimes long-term the penetration have also This price of increase the than but a price of higher we of in fiber. year, is we ADSL. course the benefit in fixed have the lines, at campaigns over

our gives our more the mobile. fixed have In lines in. competitors promotional in of particular, be strategy. That their the you increases substantially ABPU fixed lines, year some to a look finish to - than two, customers we period, us in continue the be believe when when ABPU leeway So in reason will that at that's

question. Next

Operator

question Ravary from next CIC. from Eric The

Eric Ravary

is the name -- margin My see announces of Colas Hello. Energy it in is their the questions, to Eric one up what you price we release, was CIC. Ravary I HX. plan & action just address three have press On from raw Can materials, about. can In Services, rise on Colas. an in profit its

Olivier Roussat

Sorry.

your You have question. to repeat

Eric Ravary

to You're Okay. number We'd the the can authorities, give about know And Antitrust talking like the expressed of British the closing closing? you question Because us about HX. Equans, in in that. reservations about three. details by

Olivier Roussat

didn't we beginning. get the Sorry,

Eric Ravary

margin us Energy well in Bouygues you & having on On Services, potential and HX? can profit details give done the

Olivier Roussat

market us, merged. in authorities a competitive All if - was In they right. there the the the we us that HSX told told July, British line on CMA, Authority impact

think to competition. address of So saying have you press CMA question - and received was what it morning, this proposed will be question will the remedies question offered this Services, the were British tell publishing will able test the a about so will They and the release Pascal. we address And weakened stage before remedies. that, about will the about that & the they be a they There for that our the are HX. November. many call confident that's then out response Colas, and because we Bouygues so come Energy is and a in This But conclude we are final Gardès about Pascal can is Equans, bid, the we on more answer what we complete said so the operation, with September, in a stakeholders, I should before various that about to XX that not slides. XX Equans Frédéric stakeholders. Because

Benoît Torloting

only increased contracts we we take today, As unless on the there. - take only then customers? to market, of revise on prices, contracts things stand bitumen the the and higher there on level, customers pressure prices, at to have decided the - are is because, exceptions course, there is we to find with revise pass under the cost Well, can Yes. you where the compensation revisable there which clauses private likewise for clauses no these to if are

strategy that two to - which at next be able two able we be be we can worldwide year, early bitumen we Our more of prices. buy delivered will we've investing problem. ships years started earlier the will where precisely part field address will particular, bitumen In means to bitumen ago and is at further in that been providential because seek we competitive

us and until just been logistics So we as such leasing ships to we do need we get enables before address extent. this some to have - that the ships, these that time smaller to

Olivier Roussat

Pascal Thank And you. then Minault.

Pascal Minault

and the & is markets that's good Regarding the the in because operational selective We Services, better we is keep markets. good formula France, profitability pricing the control, of HX. looking right. cost dynamic are Bouygues this kept have Energy in We our and And profitability had Italy, profitability at U.K., in under in very for in Canada, up.

Olivier Roussat

because & Services get whole Bouygues, - seen there. that precisely which billion, the And has terms which in or Bouygues are and means to coming margins increase that we've able similar means to to figure, overall billion. that revenue to that the worth these profit when we the - €X.X looking close we - what about an readdress plan we're were that within be same the has you were reaching it. are well, billion, This is able on an Head include a do about at plan, what and Do position is to billion profit action - you Energy at on plan €XX €X Services, fact, hopefully, I we performance. The well, billion, to Equans, and X%, fruition of also should business an know, now of And should to is margins, there about in we €X.X he of Vanstoflegatte over want the well, that have we in €X rate exact started And overall & profit margins. X%. Pierre a Energy, Energy

Operator

from Then Instructions] ODDO. Virginie we [Operator Rousseau have

Virginie Rousseau

Colas' Yes. Good morning. the on performance, you three questions. of I in I have, heard course, have fact And profit margin. about

situation had You the have address challenges. bitumen and are you - you facing to

because the phenomenon where do costs the HX? pass Bouygues issues. Telecom, the deepening said €X.X question same you were you difficult there. on completed of it on you maintain in on HX? Will effect increased an What requirements this Or second up? have book? Do so prices the the higher you is, to you HX have many contracts CapEx meet inflation you CapEx, you your going there, these have customers. will Will in about The you fixed Some that costs you revise such WCR the still rates? Finally, was are expect for project in have or because expect billion And requirements? but receivables some is Do the accounts, downwards there, the WCR, have and higher the inflation on basically to order contracts deterioration of to objective all contracts?

Olivier Roussat

right. All

will us well, Frédéric tell about - Colas. Regarding

FrédéricGardès

Right.

part Basically, of What's HX. short much. The prices. question average, have in business. the left pipeline? these this contracts in the signed is Well, the we The was fixed contracts at mostly On lots that cycle, contracts were - signed not core that so we first regarded last contracts the of year. we

duration is So of average months. three with current contract the about

stand, things as absorbed fixed-price now all in much that's HX, been So contracts. pretty these

in Now, we this new on any if we we contracts, fixed-price consider are not rise taking should got we HX. this would because more increases, not

Olivier Roussat

the on Grangé Pascal you. capital working requirement, Thank WCR.

Pascal Grangé

Yes.

receivables, bear in much left they attention mechanically, you reconstruction. about our million. is operation. --- should so XXth you first be We find year, when financing June to the right of readdressed WCR, €XXX take also the for €XXX in not our last up Colas of at raw to and value of up, the found of and WCR, to with too you pay Out are have compare year. go deterioration chain this will goes was to Regarding What and there because supply cost compared the business, to policy million about and compare in €XXX that seasonal QX, that be effects is up the we HX of XX% construction there. need million, have inventories is inventory of don't because materials the Revenue €XXX very this million about phenomena, on you two June with payment the XXth XXXX, about is knowing up, will suppliers Then demanding. want then over

high still last generates reconstruction normal well finally, By compared then a Now point fluctuations reached so to working a year, Telecom. of within is capital. they million and And WCR. Bouygues large, that surplus in €XXX

we with XX, find you you of course, the year-on-year. compare June year, again of will last licenses paid if for that Now,

a for over well, was - that were million out years, year. there paid So time last was €XX few resource a but a they

will that let down in the in anything why raw WCR If and lead revenue believe is is in there we seasonality us business. Well, to the interest you of there increase is probably HX. to materials us not - then degradation at And of much. continue of will the increase that an come want had and there in outlook, be haven't might higher though less - at I may it an the in in won't less our there probably there. business, There is major looking movements inflation the that the payments WCR. will €XXX to as stay an same be even but million because found pace construction the increase be we mean, rates, HX, will

but in are extent. construction was a were business. there crisis thing So that the taken some payments, out, in variations We to When continued on explains track. it rather much pretty payments much came that regarding very back But surge the in COVID we one WCR.

that be of may to can it sort - there phenomenon some that was the over months come. down Now, settle

Olivier Roussat

tell can about you CapEx? All us right. you, Benoît, Thank Pascal.

Benoît Torloting

on announced about inflation difference much inflation question and network been so network There, hasn't of source has program the of There and the price a made two because effect cost, billion. are set, had CapEx equipment. course. guidance the the you CapEx. Well, on the Yes. We telecom €X.X a our on of infrastructure is

needed that by in announced the traffic to we additional can new take dispatch sites mobile caused ensure As the to XXXX, on the network XG.

in to Internet. set-top cost before we are the other boxes purchase The lease we These out. need the for CapEx them

our on the cost at early of onset that's and the up wanted leases to million, already because tune and for that €XX COVID, more the so time been the for allowed we outlook. goods, come of supplier pay in On to of integrated our

Olivier Roussat

you. Thank right. All

Next question then?

Operator

Stanley. Nicolas Morgan from Mora

Nicolas Mora

provisions reversed. business, I still, but Bouygues a good is in be About still you provisions, some provisions, Frédéric explanation, next. QX. Hello. But to the in Construction HX significant have and from pretty there year understood the and were the volatility Gardès morning. so one quarter Colas, Good just QX, especially to it one in next, to you happened the would half know what construction in

On talking at I there if even QX, where boost And divisions Equans? three heard on, us all all early there business, have cleaning fiber the the at construction of business North in Equans in Colas, about is in mostly up on though profit well, European margin right. the America? give finally. a you Europe, this the France you're suppose look Canada. tell provisions. to movements business, side doing end position France some stand us optics is the less at and color in can about contracts. of But the were you it's the You there, June, we margin - you where Regarding profit margin July, in of -- we Can You're

Olivier Roussat

were wouldn't there is, answer. closed to Equans that almost yet, fiber, where answer, that news. And would had be I and haven't on but we the position I bad a in contracts if fiber be cleanup well, optics Well, even

can It's no, So to only all said divisions, give Frédéric we of access information. the have mean do - haven't question, Grangé. first answer But will we that We in your us and that Frédéric. got - access to part I Pascal then has accounts. first case, Pascal so not Equans' that Engie now

FrédéricGardès

news. few I'm the A to tell good America. about you Well, happy words about North

when the offset in HX, suffer because you and strong picks usually with HX, we especially be losses Last currency, if in is incoming, were that. the we started are early. but conversely, in currency strong stronger impact able As losses, in denominated the there exceptional the business will year up to the Canada, know, year,

years, Now more this the in so more is we weather year line - like with is standard years. and previous

the has well, was on very the the years, the conducting to transformation that. the Europe, cores in excellence, Regarding bitumen, improving order so taking. buoyant, margins this plan period course, than France in but we've up previous in Indeed been efficiency. a especially and indeed and a stand higher for volatile markets to especially of this. about been concerned operational been past Other we're were business backlog good And orders, this now we've is no, not than able orders, that, still in and three

on ton HX, in the have bitumen this is this we turns Canada, of as out can there we it's on business may the trading by In purchase. particular presentation, large, that America, said and and not as I margin effects Now, the be on see just visible, business but McAsphalt, in over time. North fixed a that it the

increase profit. of well. price the that - on current And business first well - increases, bitumen. that now Now, the operating doing question bitumen the the if Pascal, the high by dilutes is that impacted price if - was of in the well, price the

Pascal Grangé

year the is there new really no, business. in provisions, the and no situation indeed terms very provisions same of special as provisions. The reversals in these on provisions About much is Yes. last of construction phenomenon

be new I that no - from confirm nothing that no nothing so - this from trends, special, there derived can And is only can year.

Olivier Roussat

Thank you, Pascal.

question. Next

Operator

Nicolas HSBC. Cote-Colisson from

Nicolas Cote-Colisson

network in private solutions And that? have a a us Could a the operational? I you bit networks? already telecoms standalone the on backbone. question do more and When be for have you tell about brief demand the got XG, you expect standalone to little the

Olivier Roussat

and second the much lag. at, is is the you're part offers, of set time our Where function three say, the standalone of less let's is late part another, for thing, types but really so already standalone This is backbone part XG, the the one up. radio XXXX looking

or And category local call what able private private distribution networks to of call as number conserve time completely or be harbors, third experimenting. will networks we're possible specific late slicing up so we virtual that have a a plant and the networks, lags their who given data ability is ongoing in Secondly, in hybrid which But then the need It locally. for meaning specific them a set network be platform XXXX. industry. industrialists them with let's already will and other, in network of tantamount people to or private now, a XG locally test or to pilots have to pilot is process a local

Regarding functions, mid to more from, let's say, would generally and late be Thank XXXX thereafter. that you. rolled out

then. Next question? way long a from Okay. Questions away Okay. English in English. It's No?

can't hear nothing Stanley. There Morgan with French Yes, stick anything. I Let's then. questions is from gentlemen coming through.

Unidentified Analyst

I a have question telecom. on

number about question margins you contributed a XXXX commenting good EBITDA. talked a performance impact You XXXX. which of ask XXXX. operators about are your in like have a I'd of costs to inflation of for their the on to already

to be curious So particular good interested cost It I'd to items on scrutinizing. are seems items in other on exposed that, like cost but that to what hedge please. I'd be if know have you're a energy costs, you'd you inflation, that comment

Olivier Roussat

expenses, €XXX terminals. as have OpEx, million while cost. of the expectations I our of we and will impact the XXXX, and on limited. impact To for be inflation on clarify our think quite Operating our over Well, in beyond regards that, inflation

increase So terminal far foresee can't we in any costs.

have are connections cost operators. have regulated, billion fixed fixed that, a large ran through cost After €X.X call of So no them, what we other pass had the we costs of on so if regulatory we result in volume these directly then And as inflation. unit did we in to a into of our that consumers. costs we approximately impact

there about index these are We leases inflation. while and fixed also on links, are on index for have €XXX rates not million, but

So no we've there. Energy, already problem mentioned.

sources. but energy with until prices we energy year, the secured We renewable last up the end costs, have XXXX of our

approximately beyond until already half have freelance XXXX. of we're about And and in costs wage finally, billion, costs. XXXX. securing end wages, We're in working we for So on half secured freelancers over the €X.X

increase be currently we impact CEO, million, to Here level negotiations see Negotiations a we what of our bill partners, will a the purchasing social have will in do the with terms with underway wage €XXX bring would are underway, €X what with be wages. can We've out. of X% limited power but million.

you So quite actually all I our the limited. impact expenses. There covered is have operating

in infrastructure, As already this in CapEx, Boxes, anticipated network really budget. costs for impact. our English? these we've well, Is no

Operator

from BNP Please McHugh Paribas. Sam go ahead. It's Yes.

Sam McHugh

have Yes. questions three Good morning, I thanks well. guys, for presentation. as the

on Colas, been last very during about So year revenue it? X%, of not input XH. clear EBITDA half year. the should in in Do EBIT telecom we X.X% think the a and to about build contraction in costs an in the Consensus bit you've this X% revenue business, more the that the the are the you second expect versus or is half, you has second grew On right, the inflation. in matching X% spike margin margin

purchases and very just slowdown hedged? implying conservative, bit the X% in a XH. then year, it you just in in forward growth the much a acquisition far from are in of only telco of growth on you interested equipment should business, network X% how the currency some reason? and think of your you I expect I hedge, of full and and whether vendors, you lastly CapEx the much. Thank mean U.S. a being or how And dollars, made we in bit, the Are

Olivier Roussat

was Okay. U.S. hedge our dollar. We but the Benoît. - investment so Please, part start the of in last telecom, we with The telecom. question

Benoît Torloting

year-over-year covered and EBITDA. a question very by to optimistic Yes. dollars we The is on we it's part there In realistic, are and than of margin in. EBITDA. And about X% I we always announced new come pessimistic? guidance more positive. this Are think low, things thus and our are HX, some evaluation new investment also of or in

pass we moment. that's see roaming so the We what over how really the will the and have roaming at for revenue will to why the to announced be - period summer EBITDA X%

Olivier Roussat

Okay.

For I ask your to first Frédéric question, answer.

FrédéricGardès

the is specific guidance year. Yes. I the that than what will year. operating for end at we're profit confident But higher of can that be We're any say the of not last giving our end 'XX

everywhere, erode will that's that predict be margin, percentage to of impact of kind revenue in probably bitumen especially said at increase because it's increase which terms our There the but will hard that of bitumen extent - not in hard like Canada, a which portion large margin the costs moment. ton. will come to from is I the in the fixed to say. impact mostly to Now, in the It of per an extent

does range. basis the that if price bitumen ton increase the of the margin per cost increases not So the increases, cost because in same of

So be that there could impact.

Olivier Roussat

you. Thank

and No question It pleasant you wish the you one. you wish Thank anymore? Next case, your all. thank all last day. very I all you pleasant a a one? In Okay. was holiday. attention, that for

Bouygues (BOUYY) 2 Aug 222022 Q2 Earnings call transcript