Bouygues SA

Earnings Release • Nov 15, 2011

Paris, 15 November 2011

Bouygues press release

Nine-month 2011 results

• Sales: €23.7 billion (+3%)
• Current operating profit: €1,338 million (+1%)
• Good commercial activity and high order book for the Construction businesses
• Very healthy financial structure
• Sales target revised upwards to €32.2 billion

The operating performance in the first nine months of 2011 was robust, in keeping with the first half of 2011 and in line with the 2011 roadmap.

The Bouygues group reported a 3% increase in consolidated sales (up 1% like-for-like and at constant exchange rates) to €23.7 billion. Current operating profit was up 1% to €1,338 million. Net profit attributable to the Group stood at €794 million. The change in net profit compared with the first nine months of 2010 (-€129 million) was mainly due to the lower contribution from Alstom.

The financial structure is very healthy, with net debt stable vs. end-September 2010 and substantial liquidity.

Key figures

(€ million)	9-month 2010	9-month 2011	Change
Sales	23,067	23,719	+3%
Current operating profit	1,328	1,338	+1%
Operating profit	1,3981	1,3762	-2%
Net profit attributable to the Group	923	794	-14%
Net debt3	3,770	3,808	+€38m
Net gearing3	37%	36%	-1 pt

1 Including €70 million of other operating income and expenses, or +€96 million at TF1 and -€26 million at Colas

2 Including €38 million of other operating income and expenses at Bouygues Telecom

³End of period

Business areas

The Construction businesses recorded good commercial activity and improved profitability. Third-quarter 2011 order intake remained buoyant in an uncertain economic environment. The order book remained at a high level, despite sales growth.

Bouygues Construction posted a 4% increase in sales to €7,086 million (up 3% in France and 6% on international markets). The operating margin stood at 3.8%, reflecting the smooth execution of contracts in progress. Net profit rose 11% to €159 million.

Order intake remained at a high level (€8.3 billion over the first nine months of 2011). An order book of €15.3 billion (up 7% vs. end-September 2010) offers Bouygues Construction good visibility on future activity.

Bouygues Immobilier reported a 12% decline in sales to €1,548 million (down 1% in residential property and down 52% in commercial property). While the commercial property business remained affected by a tough comparison basis, the pick-up in residential property was confirmed with a third-quarter rise in sales of 11%, vs. 2% in the second quarter and -14% in the first quarter of 2011. The operating margin was firm at 8.2% and net profit amounted to €78 million.

After a record 2010, residential property reservations remained at a high level and reached €1,530 million with sharp third-quarter 2011 growth of 12%. Overall reservations grew 8% to €1,868 million in the first nine months of 2011. The order book was up 20% on end-September 2010 to €2.6 billion.

Colas recorded a 4% rise in sales to €9,168 million (up 9% in France and down 1% on international markets). As expected, profitability is improving gradually. Current operating profit came to €274 million (up 17%) and the current operating margin to 3%, up 0.3 points. While operating profit increased 31% to €274 million, net profit advanced 33% to €209 million.

Business activity remained strong in the third quarter. Thanks to a good level of order intake, the order book was up 2% vs. end-September 2010, despite sales growth.

TF1: strategic decisions pay off

In the first nine months of 2011, TF1's sales came to 1,839 million (up 1%), the contraction in the TF1 TV channel's advertising revenues being offset by the rise in the sales of the other activities. The current operating margin increased to 10.6% (up 3.8 points vs. the first nine months of 2010). Current operating profit at end-September 2011 rose €70 million to €195 million. Net profit attributable to the Group reached €125 million in the first nine months of 2011, a decrease of €45 million due to an exceptional item of €96 million in third quarter 2010, related to the takeover of TMC.

Bouygues Telecom continues to expand its fixed line activity and is experiencing intense competition in the mobile market. Nine-month 2011 results are in line with expectations

Bouygues Telecom's sales advanced 3% to €4,285 million and sales from the network were up 2% to €3,831 million. As expected, EBITDA was negatively impacted by the cut in mobile termination rate differentials. It came to €1,035 million (-6%). Operating profit amounted to €550 million and this included €38 million of non-current income relating to an asset disposal. Net profit was down 10% to €353 million. In a fiercely competitive mobile market, Bouygues Telecom gained 275,000 new mobile plan customers in the first nine months of 2011. At end-September 2011, the total customer base came to 11,217,000, of whom 80.4% were on mobile plans (a yoy increase of 1.5 points). Moreover, thanks to the strong momentum in the year to date, the MVNO¹ customer base stood at 1.3 million at the end of third quarter 2011.

The performances on the broadband market were very good. Bouygues Telecom is leader in terms of net market growth with 311,000 new customers in the first nine months of 2011² . The operator's total fixed broadband customer base stood at 1,119,000 at 30 September 2011.

¹ An estimate of the MVNO active customer base. Customers who have carried out an outgoing operation during the last month. ²Encompasses both broadband and very-high-speed subscriptions.

Alstom

Alstom's contribution to Bouygues' net profit came to €134 million in the first nine months of 2011 (vs. €239 million for the first nine months of 2010). In third quarter 2011, it improved €17 million to a total of €40 million.

Confirming the recovery achieved in the second part of FY2010/11, order intake grew 45% in the first half of FY2011/12 to €10.2 billion. Alstom confirmed its operating margin target of between 7% and 8% for FY2011/12.

Financial situation

Cash flow was up slightly to €2,483 million. The free cash flow figure¹of €886 million was almost stable despite the expected increase in net capital expenditure (€997 million, up €133 million vs. the first nine months of 2010).

Cash flow generation has kept net debt at the same level as in September 2010 (€3.8 billion), before factoring in two major operations in the fourth quarter, namely the 2.6 GHz frequencies bought by Bouygues Telecom (€228 million) and the share repurchase tender offer (€1,250 million).

¹Before change in the working capital requirement

Significant events since 30 June 2011

• 18 July 2011: Bouygues Telecom launched its new mobile plan "B&YOU".
• 27 July 2011: Bouygues Construction started works on a new development on the site of the former Laennec hospital in Paris for a total of €150 million.
• 28 July 2011: TF1 acquired the 65.7% stake held by Metro International in Metro France, bringing its total interest in the latter to 100%.
• 30 September 2011: Bouygues Telecom announced the launch of Eden, its new simplified range of plans.
• 13 October 2011: Colas won a number of contracts in Canada for an overall amount of €140 million (contract to build a rail intermodal site as well as a number of motorway contracts).
• 10 October 2011: An Extraordinary General Meeting of shareholders authorised the Board of Directors to carry out a reduction in the share capital through a share repurchase tender offer for a maximum of 41.7 million Bouygues shares (11.7% of the share capital), at a price of €30 per share.
• 20 October 2011: Colas Rail was awarded metro contracts as part of a consortium in Los Teques, Venezuela (€96 million) and Kelana Jaya, Malaysia (€96 million).

Full-year 2011 sales target

Based on the performances of the first nine months of 2011, the sales target for 2011 has been revised up to €32.2 billion (+3%).

Sales by business area	2010		2011 target
(€ million)	actual	Reported in March	Reported in May	Reported in August	Reported in November	change
Bouygues Construction	9,235	9,400	9,600	9,600	9,700	+5%
Bouygues Immobilier	2,418	2,440	2,440	2,440	2,440	+1%
Colas	11,661	11,800	11,800	11,900	12,050	+3%
TF1	2,622	2,630	2,630	2,630	2,590	-1%
Bouygues Telecom	5,636	5,730	5,730	5,730	5,730	+2%
Holding company and other	132	120	120	120	120	nm
Intra-Group elimination	(479)	(420)	(420)	(420)	(430)	nm
TOTAL	31,225	31,700	31,900	32,000	32,200	+3%
o/w France	21,5761	22,000	22,100	22,400	22,400	+4%
o/w international	9,6491	9,700	9,800	9,600	9,800	+2%

1 Following the change in status of Mayotte, which has become a French department, sales were reclassified to France.

Financial calendar: 28 February 2012: full-year 2011 results (5.45pm CET) 29 February 2012: full-year 2011 results presentation

The financial statements have been subject to a limited review by the statutory auditors and the corresponding report has been issued.

You will find the full financial statements and notes to the financial statements on www.bouygues.com

Press contact: +33 (0)1 44 20 12 01 – presse@bouygues.com

Investors and analysts contact: +33 (0)1 44 20 10 79 – investors@bouygues.com

www.bouygues.com

Condensed consolidated income statement	9-month	%
(€ million)	2010	2011	change
Sales	23,067	23,719	+3%
Current operating profit	1,328	1,338	+1%
Other operating income and expenses	1 70	382	-46%
Operating profit	1,398	1,376	-2%
Cost of net debt	(251)	(205)	-18%
Other operating income and expenses	24	(1)	nm
Income tax expense	(376)	(395)	+5%
Share of profits and losses from associates	279	143	-49%
Net profit	1,074	918	-15%
Minority interests	(151)	(124)	-18%
Net profit attributable to the Group	923	794	-14%

¹ Other operating income and expenses include:

• TF1: exceptional income of €96 million generated by the restatement of the previously-held equity interest following the takeover of TMC

• Colas: non-current items of -€26 million relating to charges for former competition-related matters

and write-downs of goodwill in Central Europe

² Non-current income relating to an asset disposal at Bouygues Telecom

Third-quarter consolidated income statement	Third quarter	%
(€ million)	2010	2011	change
Sales	8,412	8,505	+1%
Current operating profit	6171	586	-5%
Operating profit	7002	6243	-11%
Net profit attributable to the Group	391	403	+3%

¹The figure reported on 2 December 2010 was €630 million, before the reclassification of other operating income and expenses at Colas.

2 Including €83 million of other operating income and expenses, or +€96 million at TF1 and

-€13 million at Colas

3 Including €38 million of non-current income relating to an asset disposal at Bouygues Telecom

Sales by business area (€ million)	9-month 2010	9-month 2011	% change	Change like-for-like and at constant exchange rates
Bouygues Construction
Bouygues Immobilier	6,801 1,769	7,086 1,548	+4% -12%	= -12%
Colas	8,785	9,168	+4%	+3%
TF1	1,826	1,839	+1%	-2%
Bouygues Telecom	4,146	4,285	+3%	+3%
Holding company and other	99	90	nm	nm
Intra-Group elimination	(359)	(297)	nm	nm
TOTAL	23,067	23,719	+3%	+1%
o/w France	15,8901	16,498	+4%	+2%
o/w international	7,1771	7,221	+1%	-3%

1 Following the change in status of Mayotte which has become a French department, sales were reclassified to France

Contribution of business areas to	9-month	%
EBITDA (€ million)	2010	2011	change
Bouygues Construction	433	370	-15%
Bouygues Immobilier	144	126	-13%
Colas	565	595	+5%
TF1	172	229	+33%
Bouygues Telecom	1,100	1,035	-6%
Holding company and other	(23)	(41)	nm
TOTAL	2,391	2,314	-3%

Contribution of business areas to	9-month	%
Current operating profit (€ million)	2010	2011	change
Bouygues Construction	237	266	+12%
Bouygues Immobilier	150	127	-15%
Colas	235	274	+17%
TF1	125	195	+56%
Bouygues Telecom	611	512	-16%
Holding company and other	(30)	(36)	nm
TOTAL	1,328	1,338	+1%

Contribution of business areas to	9-month	%
Net profit attributable to the Group (€ million)	2010	2011	change
Bouygues Construction	143	159	+11%
Bouygues Immobilier	77	78	+1%
Colas	152	201	+32%
TF1	73	55	-25%
Bouygues Telecom	351	316	-10%
Alstom	239	134	-44%
Holding company and other	(112)	(149)	nm
TOTAL	923	794	-14%

Net cash by business area	9-month	Change
(€ million)	2010	2011	(€m)
Bouygues Construction Bouygues Immobilier	2,905 93	2,393 275	-€512m +€182m
Colas	(666)	(823)	-€157m
TF1 Bouygues Telecom	(9) (339)	87 (440)	+€96m -€101m
Holding company and other	(5,754)	(5,300)	+€454m
TOTAL	(3,770)	(3,808)	-€38m

Contribution of business areas to	9-month	%
Cash flow (€ million)	2010	2011	change
Bouygues Construction	375	400	+7%
Bouygues Immobilier	145	129	-11%
Colas	572	620	+8%
TF1	160	242	+51%
Bouygues Telecom	1,073	1,052	-2%
Holding company and other	103	40	nm
TOTAL	2,428	2,483	+2%

Contribution of business areas to		9-month
Net capital expenditure (€ million)	2010	2011	Change (€m)
Bouygues Construction	145	177	+€32m
Bouygues Immobilier	3	7	+€4m
Colas	275	252	-€23m
TF1	35	29	-€6m
Bouygues Telecom	400	536	+€136m
Holding company and other	6	(4)	-€10m
TOTAL	864	997	+€133m