(AOF) – Bouygues announces the implementation of new governance at Bouygues Immobilier from February 19. Emmanuel Desmaizières will be appointed general manager and Pascal Minault president. The first will join the general management committee of the Bouygues group alongside the managers of the other Business Lines (Bouygues Construction, Colas, Equans, TF1 and Bouygues Telecom). The second will continue to exercise his functions as CEO of Bouygues Construction in parallel with his presidency of Bouygues Immobilier.
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Key points
– Industrial holding company created in 1952 with global positions, historically in construction, diversified into television and telecoms;
– Three areas of activity (€44.3 billion) over different economic cycles: construction and roads with the world leaders Bouygues Construction and Colas (75% of turnover), telephony with Bouygues Télécom (19 %) and the media with TF1, 43.7% owned (6%)
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– Strong presence in France (59% of activity), in the rest of Europe for 18%, in the Americas for 12% and in Asia for 8%;
– Business model aimed at strengthening the position of global player in construction, energy and transport infrastructure, maintaining leadership in the media in France and supporting the development of digital uses in telecoms, through through control of the value chain, high value-added offers and a targeted international presence;
– Capital held at 22.4% by the founding family (29.5% of voting rights) and by the employees (20.3% and 27.4%), Martin Bouygues being chairman of the board of directors of 14 members and Olivier Roussat general director;
– Very healthy balance sheet with a net debt of €3.7 billion at the end of September 2022 but rated A and with a debt ratio of 27%.
Challenges
– 4-point strategy: strengthen resilient businesses (Telecom and Energy & Services), develop Colas internationally, continue the transformation of TF1 and Bouygues Immobilier, accelerate digital transformation;
– Innovation strategy:
– based on the deployment of 4 technologies: artificial intelligence for decision support and interactions between stakeholders, the Internet of Things coupled with big data, virtual and augmented reality for the design or insertion of advertisements in content and the blockchain for securing transactions,
– organized in an open international ecosystem: research partnerships, funds dedicated to start-ups, presence in platforms (Futura Mobility, Impact AI, etc.);
– Environmental strategy aimed at achieving 3 objectives: carbon neutrality in 2050, response to the needs of the value chain and transformation of climate constraints into commercial opportunities:
– differentiated according to profession: low-carbon concrete, better intensity of use, biodiversity for construction, pre-emption, recycling and revaluation of equipment for telecoms and reduction of the carbon impact of digital activities for television,
– €2 billion investment envelope for 2022-2024 in reducing the carbon footprint,
– validation by the SBTI of all non-telecom activities;
– Implementation of the Ambition 2026 plan for Bouygues Telecom intended to become the 2nd French mobile company thanks to the merger with the EIT and BBTBD networks, with the objective of €7 billion in turnover, an operating margin of 35% and free self-financing €600 million;
– Visibility in construction with an order book of €33.8 billion as well as in digital and energy transition services (Equans) with a book of €18.7 billion
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Challenges
– Disparities in operating margins and France’s high share of revenue;
-Benefits from the selectivity strategy carried out by Equans:
-slight increase in revenues in 2023 and 2024, then, from 2025, acceleration of organic growth
-current operating margin objectives: in 2023, margin between 2.5% and 3%. 2025, margin close to 4% and, in 2027, margin of 5%. ;
-After an 8% increase in revenues, 2023 objectives of quasi-stability in turnover, i.e. €54.4 billion including Equans, and an increase in current operating profit, i.e. €2.2 billion , of which :
– for Bouygues Telecom, increase in revenue, €1.9 billion in gross operating profit and €1.5 billion in operating investments,
– for Colas, increase in operating profit,
– for TF1, stability of the operating margin
– 2022 dividend stable at €1.8.
Learn more about the BTP/Construction sector
Double penalty for the sector
The French Building Federation (FFB) recently warned of the collapse of the new housing market. Over the first eight months of 2022, sales in the new home market in the diffuse sector collapsed by 26.8% year-on-year. As for sales of new homes in the grouped sector, sales to individuals fell by 17.3% year-on-year in the first half, while sales to institutions fell by 23%. The trend is the same for collective housing sales, down 9.8%.
These bad trends are accompanied by a decline in public investments, while PGE reimbursements begin. Due to a lack of visibility, local authorities prefer to put certain projects on hold. They also have to face a drop in their resources and a significant increase in energy and works costs. However, the largest investments are generally made during the third and fourth years of mandate of communities, that is to say in 2023 and 2024. This therefore represents a significant shortfall for the sector.