(AOF) – Philippe Jouy has been appointed Deputy Managing Director of Bouygues Construction, in charge of Bouygues Bâtiment France. As such, he joined the executive committee. Since 2021, Philippe Jouy, a graduate of ESTP, a Master of Science from the University of Birmingham and an MBA from the London Business School, was based in Hong Kong where he was head of the Asia zone. of Bouygues Building International.
Bouygues Bâtiment France includes Bouygues Bâtiment Ile-de-France, whose specialized entities are headed by Thierry Fistarol (Brézillon, Social Housing, Residential Housing, Industry and Public Facilities) and Albin Dargery (Private Construction, Private Renovation), regional subsidiaries ( Bouygues Bâtiment Sud-Est, Bouygues Bâtiment Nord-Est, Bouygues Bâtiment Grand Ouest, Bouygues Bâtiment Center Sud-Ouest) managed by Jean-Michel Mendret, Linkcity France, its property development subsidiary managed by Laurent Mourey and Elan, its subsidiary specializing in the environmental consultancy headed by Sylvie Gamelin within the Construire Autre division, the general management of which is ensured by Fabrice Denis.
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Key points
– Industrial holding created in 1952 with global positions, historically in construction, diversified in television and telecoms;
– Three business segments (€37.6 billion) over different economic cycles: construction and roads with world leaders Bouygues Construction and Colas (74% of revenue), telephony with Bouygues Télécom ( 19%) and the media with TF1, 43.7% owned;
– Business model aimed at strengthening the place of world player in construction, energy and transport infrastructure, maintaining leadership in the media in France and supporting the development of digital uses in telecoms, through the through control of the value chain, offers with high added value and a targeted international presence;
– Capital held at 22.4% by the founding family (29.5% of voting rights) and by employees (20.3% and 27.4%), Martin Bouygues being chairman of the 14-member board of directors and Olivier Roussat Chief Executive Officer since 2021;
– Very healthy balance sheet with net debt of €941m rated A, a debt ratio of 7% and record cash of €20.4bn.
Challenges
– 4-point strategy: strengthen resilient businesses (Telecom and Energy & Services), develop Colas internationally and quarries & bitumen, 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 design or insertion of advertisements in content and the blockchain to secure transactions / organized in an open international ecosystem: research partnerships, funds dedicated to start-ups, presence in platforms (Futura Mobility, Impact AI, etc.);
– Environmental strategy with €2.2 billion in investments for 2022-2024: broken down into 3 objectives: carbon neutrality by 2050, response to the needs of customers, suppliers, etc., transformation of climate constraints into commercial opportunities / differentiated according to business lines : construction: low-carbon concrete, better intensity of use, biodiversity, telecoms: pre-emption, recycling and upgrading of equipment, television: reduction of the carbon impact of digital activities, environmental awareness content;
– Construction visibility, with an order book of €33.2 billion;
– Evolution of 2 strategic opportunities: integration of Equans – multi-technical services for digital and energy transitions – and merger of TF1 and M6.
Challenges
– Russia-Ukraine war: unquantified risks of major inflation for construction inputs – aluminum, steel and energy – and risks linked to the group’s presence in Ukraine;
– Resumption of rumors of a merger between Bouygues Telecom and another French operator;
– Future of the stake in Alstom, reduced to 3.12%;
– 2022 objectives of continued growth in sales and operating profit and, for Bouygues Telecom, a 5% increase in revenue and 7% in the operating margin;
– 2021 dividend of €1.8.
Concern and caution
La Capeb wants to be cautious in its forecasts for the whole year. It expects business growth of between 1.5 and 2.5% in 2022 due to economic uncertainties and rising prices. For its part, the French Building Federation (FFB) is expressing its concerns about the fall in sales of new housing for 2023. It also calls for measuring the impact of the ecological and digital transition on the sector. The RE2020 standard would thus generate additional costs of 5 to 12%. She would like to see a “National Construction Council” set up, recalling that the sector created more than 8,000 jobs during the first quarter.