EN.PA - Earnings call transcript Q3 2022

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Operator

Hello, and welcome to the Bouygues Nine Months 2022 Results Call. My name is Laura, and I will be your coordinator for today's event. Please note, this call is being recorded. [Operator Instructions] I will now hand you over to your host, Pascal Grange, Deputy CEO and CFO of Bouygues to begin today's conference. Thank you.

Pascal Grange

of Bouygues' thank nine all us for to discuss to months morning you, you and joining Good XXXX results. the Arnaud Investor in Bouygues me room Lecoq, Christian With CFO Telecom; and Godard, Relations. of Head are of

Following your we our will presentation, answering questions. be

few a on highlights with Slide start recent Let's X.

Please estimate. Equans, necessary foreign Bouygues. On already European Rail market. is paid services impact the closed the the This €XXX X of acquisition September, Commission acquired of Bouygues with of after billion and fulfilled completed process at at would this in disposal requirement that authorizations and like Equans in of Belgium XXXX. assessed of and milestone Bouygues with Therefore, becomes started purchase note we Colas debt estimated the I the we quarters. a of day of million XXX% services. move net Xth energies strategy. at each key to price which billion. the of at laws. a very of the a significant all €X.X under had on acquisition design integration €X.X Slide total investment to Immediately competition segment world acquisition managers XXth Equans' promising XXth the acquisition obtained see the & October, business had debt below a we of history of The presented we leader combines in of group's solutions heart Bouygues the segment, the can process specifically, billion, optimize communication at issue closing, key November the campaign. the Equans' was been Engie transitions. which services May, at strategic that innovative acquisition XXXX Together environmental, on roll energy of offer services was multi-technical net the and and of Bouygues to you date & More the is new the on sustainable capacity of CEOs business of the employs digital to €X.X Equans environment. the Energy integration of segment This final XX,XXX XXth solutions sales, business a on The billion signature these internal team. and over has the the market, consumption, and out Services, group. in countries and €XX remind Equans for upon current started industrial Services met agreement. in managers Bouygues' On that of share XX increased both their On the people Based October, around XXXX Equans largest figures, the and Energy from XXXX top you around becomes in enjoys X, top it which generates global shares Bouygues' after

world. & Subsequently, Bouygues and Our the Stubler committee drive his managers took organized, also personally on bringing of to meet first action live staff the Stubler, together XXX Jerome segments meeting X-day held Xth was top X with Vanstoflegatte, both executive Equans of business place CEO chats to from Jerome of workshop Energies began around October. tour Pierre plan. world CEO Services, the an teams. A

We started et to in X constraints set and their have already As complete. and Indeed, begin the the such regulatory especially Energies November process have conditions implementations signing started soon. done of performance renegotiation, by key as once the forward from of and will described, actions through with could the been one first procurement dedicated a procurement. within alignment the and Bouygues XXXX. of agreement initiatives Therefore, IT, finance, improve move be & results commercial to is already area were the review segment Engie expected catalog the day start HR, tangible order everything since the done faster actions quickly, XXXX, analyzing very started between first cetera. France, business was end workstreams bulk to first able development, that countries procurement, Equans closing by the In the Services in with Other purchasing. to

on tranches. for of issue Indeed, explained Slide As loan refinancing a major bond successfully X of XXth syndicated Bouygues X, completed Equans. totaling new billion X-year on in a Bouygues October, acquisition in completed the separate used milestone €X.XX the

for economic The for coupon XX billion a slightly X.XXX%. of below amounts first the to cost years has after in pre-hedging tranche of The group X.XX%. €X.XX factoring

already coupon billion CreditWatch Poor's. a €X economic has demand of of Therefore, stable group, the acquisition. billion. the confidence pre-hedging with A- the XXXX, pre-hedging of the billion Since Bouygues' AX strong Equans upon issued Besides secured of below a a The in for this bonds the outlook instruments with average & confirms most X.XX%. factoring rating of X%. financing around and an €XXX settlement Bouygues a The is those this, XX received economic have bond from years for tranche slightly total with were cost Negative of X.XXX%. overall, market's associated €X.XX amounts Bouygues the in with second May with The of €X.XX investors Standard of million issue for credit creditworthiness. group's after cost for Moody's to

for some these XXth of pre-hedging million €XXX financing. November, of have to future million instruments value amounts available instruments Lastly, dedicated as to XXXX. fair cover The €XXX still of we

up the good outlook. confirms on the backlog turn figures all the XXXX. sales up and €XX X million to XXXX. again compared were Like-for-like stable construction to group And its Telecom at compared very Construction, to in demonstrated Slide by and increased group first Sales The activity. months in X.X%, now Total on group X% year. improved business the key X compared in to first once robust level us and profitability rate, level businesses XXXX. Let's current current increased its strong were reached X. strong TFX constant were their and environment last X a months Bouygues The almost operating offers X%. resilience months notably of exchange X visibility The Bouygues months very in Colas. at margin XXXX X profit services sales XXXX group's months the segments difficult and and by operating a

As million. already presentation. €XXX we inflation to effect on Colas the in detail profit later group explained, will has the a attributable margin, dilutive this was and Net

Here, things. I would to outline like X

to the this Alstom First, contribution of included longer months Alstom contribute a from while first X million. XXXX number, of €XXX positive no

employees. I employees and has centers amount People including the this by projects million current than million net local the months taken XXXX a disposal have of our its and March to France months order of and business. context, in bonus has million, abroad, representative challenges experiencing non-current profit. in the €XXX to annual wages non-current and commitment dedication cost They of of XX,XXX in the international of around to of €XX to net been the decided In reaffirm expertise ease their segments, December this the related the high X drives It and case its living inflation. at favor and we to the act have group's Bouygues to already would to is countries Telecom. especially our not have its Furthermore, €XX to greatest XXXX. to our businesses, recorded on year Group. its at current been gains the inflation several comparison, France, earning special Bouygues therefore, the business annual XXXX the charges employees essentially of environment, of -- extremely includes impact income, earning managed an in employees. XXXX, paid twice data Second, net pay in pay first the the mainly to in Bouygues based linked increases minimum capital current of on the in the like been measures to performance. XX bonus more lowest the French are undertaken and wage. both review, In resource Bouygues employees. in represents heart in of of This in addition impacting is charges case Considering attributable past one-off of operating related the major figure M&A decided than In to profit group X less September

review the to turn XX. operations now on of Let's Slide

up acquisitions. constant increase new already the with begin nearly stable the in €XX.X of of Immobilier and This At in September driven Let's rate high This QX in at continued and comes general backlog Colas QX. conditions was offering the Europe. construction Bouygues in North €XXX visibility its Colas of awarded up was up by award in Furthermore, a backlog of X%, achieved billion, Bouygues good U.K. by large and backlog roads QX order overall at market both XX%. up Switzerland of the the Birmingham excluding contracts course for business with backlog and normal €XXX businesses. in order with activity, a principal good XX% on are performance Construction and America and up commercial in XX%. The backlog was a in Colas. services momentum disposals was by in for future which XXXX This year-on-year. particularly inflation. tightening. were €XX.X Rail exchange X% billion, contract at were at contract the million the after markets Colas international the enhanced momentum The activity intake increased million. housing positive intake QX. XX% by and driven level This was tramline was a in won also the Colas' large

compared We to building residential a issuance XXXX. continue in the in X permit first see property catch-up to the months of market

longer clients to for such for of inventory available construction work backlog. activity are we commercial units wait-and-see still inflation the a timetables of delays the on sale, in observed housing reservations and negotiating tenders in mode. Conversely, due impact However, level

a down was As year-on-year. Immobilier's result, XX% Bouygues backlog

key and Let's like-for-like now and construction rates. figures X% the at services activities Slide constant The and businesses exchange Sales construction and X% on recorded were figures. up XX. at look year-on-year services solid

stable, keep Services that at the Works were up building Construction, by Building Services, and & They to please sales slightly sales transferred Civil were & & Energies impacted civil is in they Energies First, activities contract Also, selectivity. excluding works. Bouygues mind but in growth segment. in were down X%

housing for by down sales Second, sold at was driven period same Colas sale. One international Colas' months, sales, were commercial profit a operating Immobilier, €XXX main of And third, in Current XXXX. QX XXXX. inventory project Colas led the to as in Europe. due Destia up at low stable, sales were XX%, sales. Bouygues XX%, X% which and compared to were by of units contributed million America €XXX the businesses the X note, as well construction by of reached up Of million to services North level,

First, by Bouygues X% was XXXX. operating improved current This months X.X%. Works led margin slightly Building Services, X & in Immobilier's versus also Energies Bouygues to Bouygues X.X% whose by months Civil has reached Construction margin in & X.X% X improved XXXX. mainly

above third and margin. inflation the months to quarter Bouygues of Colas current commercial Second, have market property. XXXX. to Immobilier effect dilutive profit and HX margin residential the limited for customers operating in in low QX current XXXX the million current the of XXXX, profit operating for And Nonetheless, X situation property on catch-up the results activity in a of had level €XXX operating still interest compared current reflects helping the in third, operating

As in prices place rate already be and U.S. than guidance. had margin. to Colas by by replace inflationary services to cost Sales variations. of complex explained background Colas offset the for environment on plans its expect times, against be Colas a XXXX an higher and increases operating its economic to the financial in in current Therefore, XXXX. by exchange dilutive like a XXXX XXXX, than effect its profit action will dollar and operating unit safeguard Colas' inflation decided contribution In this, higher several Colas euro impact in boosted performance. of products caused to XXXX put Destia higher has impact significantly sold current very

no particularly the bordering operating its to inflationary is countries in for environment, it in and relevant terms current the rate. targets margin longer the trading operating margin, XXXX impact of profitability especially Given dilutive on current Ukraine set in the bitumen business,

operating positive the margin going ability target impact set. profit reason, rate undertaken, margin have with For Nonetheless, and target buoyant compared increase Colas operating a for current transformation operating Colas XXXX. series current XXXX of X% its thanks it projects a of fundamentals confident is in this target replacing in in current an been of the XXXX is to to forward, that reach its to

XX. Turning to Slide

the briefly end which were results, at about released October. of Let's TFX's talk

increase driven results. QX X% by post-COVID to months set advertising performance after XX% the both X% year-on-year First, strong X%. the comparison TFX and men's for Newen. football led was sales had with good Furthermore, was the X posted up excellent programs. Revenues due segment The in basis down of of XXXX This a revenues of QX, XXXX with growth in Newen a broadcast with were a an media QX particularly solid by Euro a Studios first for the XXXX up delivery of cup. of revenue

of the improvement, X from media necessary. business benefited Spain achieve savings in of and months. profit contribution also the demonstrated the spending in of remained the XXXX. operating segment ability €XXX and the acquired Cost programs Newen monitor Current in in under first showed studios when Germany and control to reaching million

up Newen account Plus Vie. costs the XX.X%, broadcasting the belle at the profit la into taking margin related reported end current daily slightly to on of operating soap,

As To of head Belmer operating in experience CEO; a current Board and ideally as track appointed and result, as multinationals Directors. the Pelisson strong of Belmer and margin Rodolphe Gilles solid is up Board of -- and several TFX's to streaming, September French the of X.X XXXX. XXth leading announced versus and With TFX On a points TFX the was Group. meet TFX Chairman record its prepared challenges outlook. October, end XX.X% team Rodolphe the the media of reached accelerate with TFX floor performance. to Slide brief, Lecoq platforms Telecom consumption on Bouygues development the already XXXX and well TFX I to partnerships the transformation use. must Christian and its on XX, with expansion the its of to TFX markets. will leave needs by to be the changing meet It in the conclude steer long-term also faced I as commented continued positioned buoyant develop for TFX now

Christian Lecoq

good morning, Thank you, and Pascal, everyone.

Before say discussing "Donate to words campaign. few Gigabyte" like on our figures, a I would a

employees up mobile for of and to As campaign. Bouygues collected plans with beneficiaries. teamed X Telecom like the operator On to committed digital vulnerability second give a citizen, to strategies is networks. this edition awareness to gigabyte gigabytes customers among the can and act X also This would has given to it our want Everyone which and of raise one operation highlight I associations, to through Gigabyte" XX, and against disadvantaged these into converts Telecom Bouygues Bouygues "Donate that our some associations. distributes exclusion. a Telecom's Slide we quality and demonstrate them excellence associations smartphones in

survey our voice quality First, very has the been #X excellent operator score is for text Telecom in network. once in score or XXXX, in excellent #X October published the dense and second of years Bouygues X as recognized mobile in #X and area. ARCEP subways voice again, now, recognized

months. the entered we projects X few in Second, in BXB in major last

Interior military French modernization network fire Bouygues to communication national the It police, where police, system the its services for of innovate. recognized and for quality the is is we system. of one emergency that to shows and with first ability the Ministry Telecom contribute departments The the its will

data second sovereignty, one, computing This The digital a market security and the answer data standard cloud to the alliance is is challenges architectures Numspot for development reliable market an will and highest named of new an cloud offer of of portability. service.

September million customers at on new the QX months. in again, Telecom see Telecom excluding and XXXX, you look as figures X XXX,XXX year. won beginning solid and commercial the remained performance a mobile customers the in quarter have first that now during new customers plan can in Bouygues were Let's fixed activity Commercial XX. Once mobile Slide dynamic XXX,XXX of XX.X Bouygues in had MtoM. the At

Now let's to our attention base. fixed just customer our turn

XX% adds third of the can adds X.X you right of ago. continued XXXX. As XXX,XXX we year. fixed customers to beginning year already million end we with of million our XX schedule represented strong side of compared premises net during see of our of XXX,XXX on the FTTH million XXXX. by X experience net September FTTH since to target at had the more growth slide, XX are With and the customer FTTH to total quarter the Having fixed over X.X reach base ahead a million customers marketed, subscribers, our XX% than

look a key have Slide at Let's figures XX. on

disposal X note in of XXXX, months in X income with increase CapEx that months of months centers. data The Investments also was reached than than which lower into you €XXX can take than to account year disposal million million, income that it. XXXX. Please were of non-current higher data and XXXX months the XXXX. mainly in also the X higher million, and to gain to €XX. billion at and First, X partially we is over both achieved consistent incoming X notably last BTBD to a our operating to center. of €XXX billion. customers. on now increase APBU months, profit including related offset to value €X Operating the in was a roaming mainly restated profit the led growth leading in €X.X goal a performance margin due was €X.XXX growth million of was X ago. notice good level were was for year-on-year Other in in decrease at sales leading reached and leases ABPU, by up year, €XX.X the volume up X% billed past sales €X and performance grew impact, in in EBITDA cell year-on-year This X% was by €X.XXX good by improved fixed XXXX up revenues. XX to built-to-suit X% months a phone after continued services. sales, XX%, Consequently, progressively current compared non-current €XXX Last, Mobile

our billion, now €X.X XXXX of you our all on growth frequencies. the including guidance back the CapEx are excluding giving of way targets, Pascal, I'm We to achieve And floor.

Pascal Grange

Slide briefly Thank like on I comment XX. would you, the statements on Christian. to financial

X months. charges, already first months the €XXX beginning Other in operating non-current operating mainly We and projects. the profit million current at income X negative revenues have our this at to call. includes discussed amount and expenses This of related were M&A

As at a amount mainly in were X has operating income XXXX, non-current talked and €XXX positive €XX the of months particular, million. that Christian million in already at Telecom, This other reminder Bouygues expenses income about. included,

level, remind last associates We'll to contrary to of ventures Regarding turn structure. profit want longer that just our net our year. the contributing no Alstom the share to figures, attention and joint on financial I now group is to you

Moving to end Slide debt at Compared billion. XXXX. of to was last up Net year, XX. XX%. the a billion low Net debt €X was gearing is at €X.X of net level end September September

As such, strong position. benefits particularly financial a from group the

Aside from September debt you the interest the change swap in by will XXXX was net I operations explain positively affected position mark-to-market to rate at that later.

the XXXX debt describe debt following end of the Net turn now explained evolution is change €X.X and XXXX. between increased net This items. Slide to September mostly end by to year. end Let's by of XX since the December last billion

acquisitions which of million, on €XXX the to of buyback. payment million Engie included of purchase with agreement the €XXX Also XXth a is share First, the totaling share of TFX May. net disposal is signature connection in

€XXX for buyback million. share Bouygues Second,

million; billion €XXX I from the interest lastly, €X.X adjustment Third, dividends rate positive the payment next fair contracted will totaling value operations slide. Equans comment in that on million; acquisition, for and €XXX the totaling swaps of fourth,

between €XXX value remind pre-hedging me Equans. December in Regarding the against November million end fair September, the of increases, XXth swap swaps XXXX. acquisition the million and XXXX operations XXXX at XXXX rate January total May, the May part on contracts group swaps, in the of period as million contingent and the bond loan at of now signed in include included the the maturing be interest swaps, for million in syndicated this that on issue view bond this The of on protected fair the into versus time you to €XXX value of million rate of we entered of looking change in €XX XXXX. the pre-hedging €XX the details refinancing adjustment totaled for XXth interest on At the of XXXX, the of at €XXX impact XXXX received Page swaps locked of value €XXX If XX. the to bond suggest respect million. amounts non-contingent issues I issued let over

operations XX, on breakdown Slide to of that. you the months Turning can XXXX the for X observe first of

remained including last cash First, flow, comparable net year. lease to expenses

million, net largely Bouygues Second, to and disposals €XXX up CapEx higher CapEx lower due was at growth Telecom.

inventories is CapEx And course As and capital not the to by operating in increased activity working billion the of last year. activities see of by items like XXXX, receivables that With have in you driven know, on period increased. same requirement the phasing others strong you €X.X related over the the third, chart some inflation, compared a to of can year. mainly customer increase and linear

the year, can every will an of level remind started XXXX working I as situation business do by the we with capital manage this Furthermore, much by as As we year. of optimized segment. we related we to end that operations you

to share XX, release to new a decision to like financial would Moving I with you indicator. Slide our

the may lead operational an of new will recognized the of and price allocation. of the latest. be intangible will amortization from be will segments, and you from at start acquisition amortization financial current assets, acquisitions. of will from know, provide of As business amortization indicator recognition implement financial and activities group operating intangible called called we is the amortization operating of activity purchase before view be To an current implemented that assets the performance Equans' the year This new what PPA will its accurate indicator a profit of to from XXXX an profit Equans the

financial total would of in September activities from Bouygues that replace operating note profit we million. of €X.XXX at PPA COPA. called current profit with for we a our our statement, to before billion also amortization operating XXXX, end in €XX amount COPA this Telecom, TFX Colas Of Please the course, current financial will communication, current to continue but will operating provide profit and

new will to new segment. that XX, with be Energy join like from will Services Equans accounts & Bouygues the on business XXXX, October add a in Bouygues segment. At Slide of consolidated business Lastly, beginning would Group's XXXX, I this

is to performance, The non-financial available on full I contribution this will on will sales resources outlook data conclude and disclosed are further expect available Slide profit presentation XXXX. Registration group their XX. Universal increase to own confirmed. in operating some Regarding In greenhouse Document. And targets we the decarbonization Bouygues' the aiming emission in SBTi Equans' of The XXXX, XXXX and reduction gas for in current XXXX data Registration XXXX, a will the after now Document. Colas nonfinancial versus endorsement endorsement segments in be human SBTi now other receive be XXXX Universal target. business

in Lastly, reports. situation changes the we the Operator, vigilant indirect attention. for any very group's your their Thank direct and open activities you consequences or remain please floor on macroeconomic for the questions. and regarding

Operator

We'll Instructions] our first now Nicolas take [Operator question of from HSBC.

Nicolas Cote-Colisson

from I'll Bouygues free start have lower still questions Colas. cash contribution and year-on-year flow Telecom with on we because some

if what reversal cap, full in right Services give power? color and sort indications, understand a in expect could working now because & don't you if the growth. as question would does pricing the obviously, often on question But there So more parts big on on a would seen could impacting selectivity look but you as got be is it right activity us you years? revenue having to So contract a of great. QX Bouygues you on is previous be price could is guide have this second because I've mentioned we And follow-up I this, the And competition some it year that described moving more give the more us Energy here then because mean like?

Christian Lecoq

your I Hi, this -- will flow on Bouygues free Nicolas cash question Christian. is answer the Telecom. Cote-Colisson, on

free level the last flow was Telecom million it for below €XXX Bouygues year. cash So around is the

this €XXX If first, you X EBITDA. plus the in at look million is components,

Second, less And should we year. than will have level this will disposals. -- at million And the the that be X than be in at minus this this we CapEx of around CapEx. will end sure you last have minus can the year, year €XXX of on the same end million figure €XXX year. last of be And second, as disposal

negative will current not, it It But is have course, of data say, free a would cash end the flow. I disposal of of So due this to is at impact centers. year. the only

Pascal Grange

For flow your cash capital and working first question, X requirement. parts, free

at net and free we of the first lower and businesses. months are flow during cash level X Colas Telecom, the a For cash have Bouygues X fairly reasons obviously, the flow, for different

For there Colas, answered the you. of And Christian under first is for which a the Bouygues year. result Telecom during pressure half had we

with that saw end of end a the cover And So this pressure end but at end of at we the September, say, high we Colas, with flow the see June we we it -- XXXX. cash will of we'll during point what at for of net the have of part started the working let's on -- year. for capital requirement,

it what the in to have and it from fair is it is to either during So concerning capital like starting of consider is market are And Energy that say to see would year, And high now of recover seen we & improve a Bouygues profitability during profitability. in And this working fair year-after-year, have which But a point. Bouygues you part business the this market, to of have a has decided we Energy the to this to in the profitability, market. increasing of growing and that, improve precisely this segment. Services X we that consider I last & Services, an is prefer quarter the a particular, that is will important construction the year. deterioration. cyclical deterioration, this growth and of normal, is have level And months we either that we lower first to for

Nicolas Cote-Colisson

Okay.

when but if see understand, -- much you more new I pressure the it's on existing for the contracts So you so contract, don't

Pascal Grange

develop remains demand to transition strong of Energy the environmental Services. the & equipment needs in terms speaking, Frankly the because

So quite which market have they growth. growth you competitor, the strong market consider a this market is if a megatrend And are significant. some and our rates, in the is

So the growing. market is

stabilize expected. to profitability, turnover, decided improve it have if our So is was we the which to

Operator

of [Operator Instructions] to Stanley. Mora question now Nicolas from move next We'll our on Morgan

Nicolas Mora

few dispose question in you as specific have are on disposals. looking first you well. So a some business, Bloomberg press especially business on been the to some business station the -- There articles some on U.K. charging Do EV Equans, opportunity term in that That to business? terms what Equans? first to would business remaining in finetune that underlying And would of the the the within helpful. Equans the short would the be That of you the be margin for scope lead see within question. in

on is Colas. one Second

for the just the to you're the on challenging trying You Colas it granularity -- of be will be is still growth little we you help us guidance wiggle guidance But built not the understand, at inflationary X.X% bit mean dropping environment. a going X%, low year. margin? margin Can room to the put is X.X%. the on on we're about be below EBIT to color a X.X%, Can in X%? where for to talking So we you suitable understand up is in will for a go X%, particularly bit but on then Or understand that? an challenging. and back next I margin up and

Pascal Grange

activities we decided sell when bit early was will constitute questions the X know a -- -- that to Equans' asset-light to majority. -- question, answer. Equans, considering of I subsidiaries it. and the the -- in for we activity perimeter, for Sorry, It's it's first decided perfectly where have Engie they each

on be for So don't It's or in we certain major activities early the there that are perimeter, say consider the asset-based be it's Equans' that. will amount. what what how in impact quite to moment, any circumstances, very about calendar but will speak will it. the and some the profitability sell We to too see to early means that

a of We mean, we in instance, Market Capital have because have that pressure over rate to year, you due speaking, inflation will is in the understood, our countries will difficult respect. time. those in margin is what promised Ukraine. as on for And from will know specific you to and countries under XXXX. that our certain very it's I Colas, turnover and anyone inflation increasing have inflation beginning this Day -- during North develop or turnover be next year Concerning the be in due for on just America And around next because to it reason, frankly our no guidance will next depend for perimeters. what

know be difficult our to what So will it's turnover. very

information part don't know this -- this is will further to operating for we And difficult a why you give we extent it's So to not profit. but it we very current certainly, increase we the know the to an rate is which XXXX, is the And the related market, what this are rate, as of major. inflation be. And And said know a margin turnover early for And first we an why be XXXX. of but is to globally, we X to increase. it seeing expect any have reason prefer know on XXXX, what a it increase that too reason, that And on But year. to increase for expect of that in -- a compared XXXX, guide is is compared don't have reason on the figure you we important respect. we -- very will this in the to during what months will Colas.

Nicolas Mora

Colas, the Okay. on materials. the you come in look got example, back half, for the in hit first Understood. may a bit if But when we just spike I blocks, raw profitability, on a the data, building

range or higher back has if But that really of the mats the enough to the, the trying the clearly it's X% has in one an been just Is bitumen end at within impact not elements You it's just assumptions. let's getting had which enough? We're Then say, which should 'XX, go, got on on cost, in least North is understand the or to America. signed else losses X% bring there's if you've contracts -- Rail, struggling X That these inflation margin. margin margins lower Colas higher raw okay? if Colas, at potentially of to an issue? basically anything struggling into

Pascal Grange

We an have inflation essentially issue.

Operator

of We'll Barclays. from next question to move on Mathieu our

Mathieu Robilliard

Or you remains expect? color. of and you market which it But bit question the was first own that know a you the not it more competitive as at kind operating give Bouygues numbers have Different order characterized great COP, about few on lastly, weeks, throughout profit, business, The second telecom the to a environment. was it Are own so XXXX? flattish. selective? how the Construction it, add sense you the developed us Equans, question over I just competitive can And view environment market not being the The you if the to what on current can did it. today Equans is differently that environment you now book the of because trends? you about I until hear don't And how understand that you would was past be players publishing now, competitive did communicate

Christian Lecoq

we So the promotional observed growing. of we And tariffs on the offers to year. end the about also more In growth to by business, last in as less And XX especially business. also business, to before COVID. remind a this had dynamic returning now that you quarter, is trend the part compared for especially saw is the And low very the the in telecom boosted still I we pandemic first, a effect, increasing cost so need thanks observed so medium months market fixed aggressive mobile, market mobile the the side, revenue. term and we the that will increase increase, more that we In customers' we the to also think the opportunity and prices, And need remains to also data the say at of the increase and will would tariffs with costs cost that to to I the network look if you and energy need business. in on. the so more connectivity continue we usage for to term, sites do have to -- continue more higher fixed high medium but the because will have And we tariffs, volume -- normal FTTH, slightly opportunity increase we level technology, market. growing the in as and of

And so to more we need our for we strategy. pursue will why and that's continue more

Pascal Grange

as related ago. remind far fact, month closing Equans, I you the your As place in to a took question that

and to X to to and what because what Equans understand have compare the we to have month, analyzeEquans' -- perimeter didn't are constitution and time performance is which the to the ours. in methodology, it with we are results So the related of figures Equans to equivalent

So it's too early.

Market dataset give do Capital you when we next Equans will year. will all of Day beginning We the

Bouygues order book As have in order -- of Construction variable a the Bouygues flattish far concerned order context for always we book important the are where is signed. as is book contracts, is very the effectively Construction, when which

des the I the have kind that During Vernets mentioned any that we Quai in period, project didn't contract Switzerland. or except

level. compared our so years. are see confident level activity ratio, previous is activity to that construction We at our a in of covered we very which And with the quite Bouygues XXXX is satisfactory

Operator

[Operator Instructions] our move next from question We'll now on at Virginie ODDO. to

Virginie Rousseau

Virginie have Rousseau I from X BHF. of ODDO them.

you et on anything for in could a impacted. begin that are in associations, spending their inflation, expect And demand update inflation that be We you of local see already do but budget from on solid construction looking on continue that follow-up the and to carefully you comments could and First, terms questions demand in salaries? terms to some construction field? notice Do Or cetera, question us energy, at trend? for you France in in see stating quite authorities XXXX construction. also of --

Pascal Grange

question be the we current guidance increasing year. difficult will is be why profit we As be next the next rate that And reason know will increase of prefer don't our heart the margin is inflation -- And result, don't guide very concerning margin we for this as next precisely, your operating Colas, is would will first to our it's what know precisely what at year. precisely answer will and saying Colas year. inflation, to my Colas this far concerning --

we guide. the is mentioning didn't part This uncertainties I So, previously. of was

for book. construction As in will doesn't movement at Construction see we don't either not happen, in any a demand, order it far mean we as that Bouygues for have France, Colas that moment, very or but It level important the respect, instance.

but if our see occurs, So and the structure, that case we will this will to adapt -- we'll we not have moment. ability of it's the have the event

Operator

We'll Nicolas, from at now to again move question our on next HSBC.

Nicolas Cote-Colisson

Short question construction activity, one U.K. the challenging at of probably the because markets present. most especially on it's the

able to happen to your if give wonder U.K.? to U.K. I see is your question deteriorate countries if could this reason So is to you're the selective in a trends business And doing indication the you I'm if further? what I activity asking margin? such manage be wonder market? in afford can your the other in were to could macro the what And an of

Pascal Grange

us contract. I our is concerned contracts, have cost As let's U.K., business is in first, certain we basis. a are far Hinkley construction a secondly, to level of as it which say, on obtain a Point our And which long-term are -- where, we for instance, some price activity. -- long-term mean, the for for allows project

the have the are And order we ability very by which do pay need we work. have people to is the important. So to inflation, in impacted not to we what

important pressure in terms in in don't But the is the margin U.K. under we movement volume of obviously, pretty year. So an see next

Operator

next our take question Nuno from Generale. now of We'll Societe

Nuno Vaz

release, Bouygues have that mentioned questions. driven on press Telecom. and had sales of been by One you sales quick risen was the they XX% the year-on-year, towers. have I mainly X In build-to-suit other

sales I go contributing was then could Equans, to if EBITDA us the on your start so, months, the a back know these? on sorry question growth has wondering Equans. over margin? you the if So to been what And excluding if let X will EBITDA And I'm

costs Are Or at contracts because million Equans seeing a point, €XX final these that that short-term changed? the And the Is the sort this integration had have in on of these slightly this OpEx mentioned mentioned bit? information a the also €XXX systems latest the spoke you you you margins signed of terms of saving for you time still a migration integration. little of on months integration million fallen over some last XX Capital margins X%. you IT Equans, and is for perspective still wondering about or we there that last true? costs Markets for CapEx Day. from mentioned probably time was I cost cost have You've

Christian Lecoq

office spread year-on-year, small on and is and this big €X project, margin project there so fiber is project is over more or in to last on out very other more, Cellnex. project, network cost XX% not EBITA. sales notably no X that to billion the the the are which years. with telecommunication, a impact coming around on of this the year. we First, is from to X than Saint-Malo growth The year but is we very, antenna work work And fiber This this up rolling

Pascal Grange

Equans. As far as your question concerning your question,

book said to thing book. I remember order First, sure, have that policy Pierre order Vanstoflegatte margin we the and increase is X%. Stubler a Jerome the at was have One don't in

So they X% margin are I increasing this gradually. your recognize figure. don't But

what CapEx of Equans have as constitute part integration, to do order related far this concerning to were to in Equans. they and CapEx to As related

I year. billion I And of process included to As impact started. in the is the we debt. we'll €X.X build debt. IT next is given And you Day suggest But for would it's details, splitted the the to an impact were and may remember, Equans acquisition subsidiary have have Market constituted in the integrated on which by of this on figures the in to more have wait reason Capital organization, they mean, Engie partly concerning this already Equans on beginning Bouygues the that system. you that Bouygues why

Operator

at our now Jefferies. question on move to from next Dellis Jeremy We'll

Jeremy Dellis

I've X got questions, please.

today. please, is short-cycle could customer guidance pass Firstly, it book feel contracts, the Colas second other in contracts continued customers. have to has Christian, to if price important Bouygues wondering to margin you When some us scope of whether Colas back Telecom. within in question, you the repricing year, the markets? we for that relation confident and making us you formalize characterized to been it gas to so increase by inflation related far to easier about sufficiently is this was as seen started how wholesale through I last My cost prices time to indicate increases to effect explained

wanted relation Day? getting Equans, sort forma the what's we document registration the that So I then will interested in at I'm to on registration of for pro XXXX in clarify, And XXXX finally, be Markets Capital financials XXXX front you Equans changed in to simply there will in be disclosure now? document. that just the mentioned

Christian Lecoq

part continue right, back reasons, big is book to telecommunication, the -- are So goal X first, this new customers. a our our will in ability bill very for to repricing you're strategy And we to in of on confident I say.

to as high need and increase. remains connectivity the for First, before, data said continues usage I customers'

market, offer First, in the in €XX, for fact choice that find of observed existing we increase the has same new offer the customers, go he the an another it example, and for ties continue at have, you exchange the especially €XX, market and to the at low-end for you to the for €XX the when to price helps And price. lowest existing or also on ties trend increasing to customers no us, mobile can because customer. the the of at is course,

other the he of now and So And also in things, are because point, also ties help but inflation in a continue with increasing. third telecommunication, stay for is to prices will us understand customers course, energy that you.

help is and us, so And it will it good continue to for ties. us increase to

Pascal Grange

Colas, ask adapt inflation let's beginning not we the impact asked to As as question that and have have the seen Colas, we far your concerning during to when say this speculate. year, people of people

accurate let's a So probably that more we indexation have formulas. say,

risk fact energy order but accurate question. clients, more if that properly your our decrease, understood the costs related expect any that to have I contracts couldn't margin transfer we could extra to to in We

forma provide Equans this easy you to the some the year, For constituted for Equans, I which remind entire XXXX perimeter. we the been thing June do is end because not figures has will that perimeter an of finally pro already year,

XXXX comparable. the So complicated pro so and to figures, figures, we sure forma not, are figures don't I will to too organize make that you some XXXX but give think

Jeremy Dellis

you what In on an that? due doing Could up relation diligence visibility were prior on you follow had when making offer, presumably, to like. Equans, to I just numbers look

in is I'm hard interested why the to it backward-looking So so perimeter? constitute just

Pascal Grange

not figures and aggregated Because we have figures. consolidated

Operator

of last Now Ravary take CIC. we Eric question the of will

Eric Ravary

from side. Three my questions

on First Construction EBITDA one Bouygues is figures.

months you the profit X the figures, by decreasing operating if at look while EBITDA XX%, is So by the increasing XX%. is

is months. So Bouygues if difference. flow, look at I free for X over which understand Construction increasing to would And you like cash the

energy of XXXX? So of energy for on and you And revenue hedging & is your for a for on for Second Could figures Services. Bouygues the energy months hedged Telecom increase on next the is give Energy kind have year? on X is visibility on in question us expect this big cost costs, cost EBITDA? cost year Could which And are on question for last those some Bouygues next Telecom. part you figure, we based please? the

Christian Lecoq

Yes.

remind XXXX for working you I are the from we'll XXXX. XXXX end costs energy that coming hedged have no are that energy For results energy for XXXX hedging Telecom, we so Bouygues impact until of and Telecom under the position. totally Bouygues And we now on

Pascal Grange

works. you the For of Energy & billion, represents stable decrease the that This plus a have a civil the which revenue and months it few is if exclude fact Services Services for is Energy & we €X.XXX transferred for the X from activities first Bouygues X.X%, this question. is to building XXXX, of and

done construction, to with contingencies The proper to is fluctuating, indicator. but EBITDA integrate reason relevant are second which in is reason EBIT. indicator an construction provisions The the this related -- is is speaking, there the was not results for is of is question to indicator terms because Generally no EBITDA. which no there and

fact of when was at the some EBITDA there And anticipated, the decreasing. to one time. anticipate we we spend we are which due have So that expenses provision money, movement some the will

on impact performance real global this no activity. is the there So of

Operator

Thank you. There no in queue. are questions further

Grange, now So hand your you back host, to to conclude I conference. today's Pascal will

Pascal Grange

for today. us joining you Thank

on announcing please our Relations on contact any Should February press Thank Investor team. have is We Their year information next questions, results your be for year. XXXX website. our the will full release XXrd you of contact you on attention.

Operator

for all. safe. concludes Ladies you this your today's and Stay participation. gentlemen, call. Thank you Thank

disconnect. You now may

Bouygues (BOUYY) 17 Nov 222022 Q3 Earnings call transcript