2020 AT A GLANCE In 2020, we demonstrated just how agile, 1 resilient and • responsible we are Bouygues group overview as a group. Who we are, our business model In 2021, we will and our 2020 results p. 2-9 invest to strengthen its business segments 2 • and accelerate The strategy of the Group their growth. and of its business segments MARTIN BOUYGUES the most effective governance. The arrival of a new Our long-term strategies for growing our business and Chairman of the Board generation of senior executives, acknowledged for reducing our carbon footprint and that of our customers their professional skills, trained within the Group and p. 10-19 perfectly familiar with its culture, is entirely consistent How do you view the health crisis we have with the tradition at Bouygues which, since its been living through for the past year? foundation, has always chosen its leaders from The terrible human and economic toll of the Covid-19 within the Group in order to secure its future. 3 pandemic has focused minds on the fact that • globalisation is just as much a risk as it is an opportunity. Bouygues has set ambitious targets Although vaccines are expected to offer a route out of for reducing its CO2 emissions. Our governance the crisis in the coming months, building back without What is the thinking behind this pledge? addressing the fundamental problems that make Our Board of Directors and senior management team modern society vulnerable to such events would be We cannot vaccinate against the climate crisis, the effects of which are becoming more obvious p. 20-23 a reckless act. Tackling these root causes is especially important if we want to restore trust and foster hope as each year passes. Through our sustainable for a better world. development strategy, which dates back 15 years,
SEE OUR KEY INDICATORS ON P. 24 Interview we have honed our expertise and moved into new lines of business that are more consistent with How would you sum up 2020 the environmental challenges facing the planet. for the Bouygues group? We fi rmly believe that the transition to a low-carbon Last year, we demonstrated just how agile, resilient economy presents an unprecedented opportunity and responsible we are as a group. We wasted no for all our business segments. Bouygues is at its best This document is an abridged version of the 2020 Integrated Report. time in shifting to new ways of working and rolling out in times of great challenge. This pledge will both The complete version (in French and English) stringent health and safety measures to keep everyone motivate and inspire the creativity of our people. can beread and downloaded at bouygues.com. safe – our employees, customers, partners and subcontractors alike. And in France, our construction What will 2021 hold? To order it, write to: sites gradually reopened from mid-April, even before Although we hope the world will gradually emerge [email protected] (limited print run). the end of the fi rst national lockdown. from the shadow of the pandemic in 2021, its effects will continue to be felt throughout the year. Business picked up quickly again in the second half of Relying on a particularly strong fi nancial position, the year, which meant we were able to limit the impact the Group will invest to strengthen its business of the crisis on Group sales and earnings. Our resilience segments and accelerate their growth. For instance, can be attributed to our dedicated workforce, Bouygues Telecom will roll out its “Ambition 2026” our robust fi nancial structure, and to the fact that strategic plan and TF1 will grow Newen’s activity. our business segments all meet people’s vital needs, The prospects for our construction businesses are also and the health crisis is not going to change that. bright, both in France and internationally – especially in low-carbon construction. Do the changes to the Group’s governance mark the start of a new chapter? We will also step up our efforts to protect health and well-being in the workplace, encourage gender Climate In the Vosges du Nord nature reserve, The Bouygues group will soon celebrate its th balance, roll out our Climate strategy and safeguard these new cycle paths will take both cyclists 70 birthday. It has been forged by a strong and and pedestrians across the border between distinctive culture and has only had two Chairmen biodiversity. This logo signals what the Bouygues group France and Germany. and CEOs since its foundation. To meet the challenges Date of interview: FIND OUT MORE is doing to preserve resources and protect ON FRONT PAGE: we face, whether economic, climate-related, social or digital, we wanted to ensure that Bouygues has 17 February 2021 > bouygues.com the climate in keeping with its pledge France’s fi rst fl oating solar farm O’mega1 at Piolenc and the biggest in Europe. Scan this QR code to reduce its carbon emissions at a pace (app and internet Its 50,000 photovoltaic panels will reduce connection required) consistent with the Paris Agreement. emissions by 1,096 tonnes of CO per year. 2 BOUYGUES • 2020 AT A GLANCE • 1 Climate
In 2020, close to 800 Group employees in eight countries attended “La Fresque du Climat”. These were fun and informative workshops on climate-related themes, where they learned about the causes and mechanisms behind climate change and the implications of human activity for health, the planet and the environment. This one took place at Challenger, the headquarters of Bouygues Construction 1 in Saint-Quentin-en-Yvelines, France. BOUYGUES GROUP OVERVIEW
Bouygues is a diversifi ed services group operating in strong growth potential markets. Present in over 80 countries, the Group draws on the expertise of its people and on the diversity of its business activities to provide innovative solutions that meet essential needs.
2 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 3 Bouygues group overview
WHO WE ARE
Backed by a shared culture, our fi ve business segments embody four strengths that shape the identity of our unique Group.
OUR GROUP OUR BUSINESS SEGMENTS OUR STRENGTHS THE FUNDAMENTALS OF OUR CULTURE Key fi gures at 31 December 2020
It is the Bouygues CONSTRUCTION BUSINESSES Dedicated group’s fi rmly-held employees Respect belief that meeting Respect is a key value for the Group because essential day-to-day Bouygues employees bring an unparalleled sense it fosters dedication and cohesion among of dedication, passion and duty to their responsibilities. employees. It shines through every day in our needs with an ethical staff’s exemplary conduct, their commitment Drawing on a strong Group culture, they openly embrace and responsible attitude 100%a 100%a 96.8%a to keeping their word and to ethical behaviour, challenge and adhere to high standards of quality for the and in the care they take to ensure everyone’s helps drive improvement benefi t of customers, both individually and as part of a team. safety. For Bouygues, each and every person for society as a whole. 115,055 €26,208m is important. Employees Sales
What we do High value-added products and services Make life better every day MEDIA Trust for as many people Trust is essential to the running of Bouygues, The Bouygues group’s business segments put their technical since its business segments enjoy a large as possible expertise, experience and capacity for innovation to work amount of freedom in conducting business for their customers. They stand out from the competition and managing operations. Closely related by offering comprehensive, high value-added solutions to respect, trust promotes job satisfaction and effi ciency among employees. 43.7%a in complex infrastructure and sustainable construction. 3,697 €2,082m Employees Sales Spans the entire 2020 KEY FIGURES value chain Creativity TELECOMS The Group’s business segments adhere to high Creativity is what drives the Group towards standards of operational excellence and effi ciency ever greater innovation, leading to innovative 129,000 to span the entire value chain. They have become solutions that meet our customers’ expectations employees skilled in incorporating the best internal and external and help our business segments maintain worldwide expertise, delivering customised solutions and their competitive edge. In addition, creativity enriches our employees’ work and galvanises a maintaining direct contact with their customers. 90.5% motivation, commitment and sense of initiative. €34.7bn 9,550 €6,438m Employees Sales Sales A selective long-term presence worldwide Imparting expertise Bouygues’ success depends on the skills and expertise of its people. Learning, developing In addition to its strong presence in France, 3 sectors of activity Equity stake: and imparting expertise are what drive relations Bouygues has pursued a long-term and selective between our people. They also strengthen 5 business segments 8%b expansion into international markets. It has done so by intergenerational bonds, promote job satisfaction taking advantage of only those growth opportunities and allow employees to develop their talents. that meet its risk-management standards. (a) Proportion of share capital held by Bouygues SA. (b) Proportion of share capital held by Bouygues SA at 31 December 2020. At 31 January 2021 it was 6.35%. 81 countries
4 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 5 Bouygues group overview
GROUP KEY FIGURES IN 2020 Construction businesses continue to grow internationally
80countries 54% 62% host the Group’s of the headcount of the backlog at People are at the heart of the Bouygues group construction businesses of the construction Bouygues Construction and businesses is outside France Colas is in international markets N°1 64% 84% 19.5% The CAC 40 company of the subsidiaries Turnout in workplace Women managers SALES AND HEADCOUNT with the highest level of outside France have elections in France in the Group OF THE CONSTRUCTION BUSINESSES BY REGION employee share ownership an offi cial employee (up 0.3 points)a (20.3% of the share capital) representative body
53,251 24,099 € €12.1bn 6.4bn
Robust fi nancial performance 9,471 €4.2bn €34,694m €1,222m €696m Sales Current operating profi t Net profi t attributable to the Group 11,618 €1bn 16,616 € m € m 1,202 1,981 €2.5bn Free cash fl ow after WCRb Net debt
France Europe (excl. France) Asia – Pacifi c Africa – Middle East Americas
Strong environmental performance A socially-responsible Group MAIN SRI INDICES € m a A- Top 5 AA Euronext Vigeo Eurozone 152 989 The Group’s score The Group’s position in Rating given by 120 and Europe 120, donated to patronage students awarded a grant by in the CDP’s Climate the Heavy Construction sector the extra-fi nancial FTSE4Good, CDP – Climate, and sponsoring the Francis Bouygues Foundation Change 2020 list ranking of 26 European fi rms rating agency MSCI MSCI Europe ESG Leaders (of which 462 have graduated)
(a) Versus 2019. (a) Since the launch of the Francis Bouygues Foundation in 2005. (b) Excluding 5G frequencies.
6 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 7 Bouygues group overview
OUR BUSINESS MODEL
The Bouygues group’s business model is based on a sustainable use of natural resources and the decarbonisation of its three sectors of activity. Its resilience ensures a long-term future for the Group whilst creating value for its stakeholders.
OUR RESOURCES HOW WE CREATE VALUE At 31 December 2020 OUR MACROTRENDS At 31 December 2020
HUMAN CAPITAL OUR CUSTOMERS • 129,000 employees • • Diversity and depth of expertise across the Group’s €34.7bn in sales • fi ve business segments Construction businesses: €33.1bn of backlog Population The climate Digital Changing • • Corporate universities providing staff training TF1: 74 of the top 100 audience rating growth, emergency and technological customer behaviour • Bouygues Telecom: 25 millionh customers urbanisation and extinction transformation and transport of biodiversity ECONOMIC AND FINANCIAL CAPITAL • A stable ownership structure OUR PEOPLE • A strong fi nancial structure • • Recurrent free cash fl ow generation 75% of sales €6,256m in payroll expenses a • 52,000 employee-shareholders (€0.8 billion per year ) A developer, builder and operator of integrated BU • 21.1% of executive body positions occupied by womeni SI solutions for the construction of complex N • j E buildings and infrastructure 100% of employees worldwide covered by BYCare • 80,165 employees trained NATURAL CAPITAL > The fi fth-largest construction group in the worldf • 84% turnout in workplace elections in France • A Climate strategy to reduce the Group’s carbon • Top Employer certifi cationk awarded to all footprint business segments • Circular economy initiatives, which are sources of environmental and economic benefi ts • Biodiversity protection policies • 94% of Bouygues Construction’s sales covered Make life THE FINANCIAL COMMUNITY by ISO 14001 certifi cationb WHAT better every day • €687m in dividends paid out WE DO: • 5.1% dividend yield for as many 19% of sales PRODUCTIVE CAPITAL • €1.83 in net profi t per share people A leading provider of mobile • Group: 6% of sales and fi xed connectivity solutions c as possible ▪ €1.6bn in net capital expenditure France’s leading TV media group, in France, serving the BtoB • spanning the entire value chain and BtoC markets Construction businesses: OUR SUPPLIERS AND SUBCONTRACTORS ▪ A global footprint: over 40,000 Bouygues Construction (production, broadcasting > Bouygues Telecom is ranked and digital) worksites worldwide, plus Colas’ network of 800 profi t second in France for the quality • €22,924 m in procurement spend with suppliers e of its mobile networkg centres and 3,000 materials production units (quarries, > 32.4% share of target audience and subcontractors asphalt mixing and ready-mix concrete plants, • 42.5% of business-segment spend subject a bitumen production plant) to CSR assessmentsl ▪ Colas: 2.7 billion tonnes of authorised aggregate reservesd ▪ Colas’ Campus for Science and Techniques: the leading private road construction research centre in the world CIVIL SOCIETY (100 engineering design offi ces and 50 laboratories in France and worldwide) • €2,808m paid in taxes and levies • Media: OUR PLEDGES • €152m distributed to communities ▪ 7 production studios owned by TF1 • Over 20 academic partnerships in France and abroad • • Telecom: 989 grant-holders supported by the Francis Bouygues Foundation since its creation in 2005 ▪ 21,000 mobile sites and a diverse portfolio of frequencies
(g) Arcep (French telecoms regulator) survey of the quality of mobile services, 2020. (a) Average over the period 2016–2020. Promote each Develop sustainable Simplify Help build (h) Includes 2.1m customers from EIT. (b) Environmental Management System. employee’s career solutions with and everyday life harmonious (i) Executive Committees or equivalent of senior management teams (c) Excluding cost of 5G frequencies for €608 million, in the Group’s fi ve business segments and in Bouygues SA. of which €6 million of spectrum clearing costs. development for our customers communities (j) A programme guaranteeing a core of employee benefi ts across all Group companies (d) Colas share; also Colas’ share of an additional 1.3 billion tonnes of potential reserves. worldwide, based on best practice in every country where Bouygues does business. (e) Médiamétrie – Target audience: women under 50 who are purchasing decision-makers. (k) A Top Employers Institute certifi cation programme that supports organisations (f) Based on international sales excluding country of origin in reviewing and improving their working environment. (ENR Top 250 International Contractors, August 2020). (l) Concerns targetable expenditure. 8 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 9 Climate
Intended as a solution to resource scarcity, the Bouygues group teamed up with Suez to design and build the ABC (Autonomous Building for Citizens) demonstrator in Grenoble. ABC is aiming for water and energy self-suffi ciency, as well-planned waste management in residential construction projects, where the occupants are the focus of considerations. 2 THE STRATEGY OF THE GROUP AND OF ITS BUSINESS SEGMENTS
The Bouygues group and its business segments roll out long-term strategies aimed at seizing the growth opportunities related to the macrotrends in their eco-system and at reducing their carbon footprint.
10 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 11 The strategy of the Group and of its business segments
GROUP STRATEGY Two core shareholders
The Bouygues group aims to create value over the long term and share it Bouygues’ ownership structure is based GROUP OWNERSHIP STRUCTURE on two long-standing core shareholders: at 31 December 2020 with its stakeholders. It has defi ned a strategic framework through which its business • SCDM, a company controlled by Martin and Olivier Bouygues; and segments roll out their operational strategies in order to fulfi l the Group’s mission, Main shareholders Voting rights • its employees, through a number 380,759,842 shares 514,767,427 voting rights which is to make life better for as many people as possible every day. of dedicated mutual funds. At 31 December 2020, 52,000 employees 22.4% owned shares in the Group, making 26% 29.5% Bouygues the CAC 40 company 35.2% with the highest level of employee The virtuous circle of the Group’s strategy share ownership. For half a century, the Group has been offering innovative, 20.3% long-term mechanisms for employee share ownership. 17.1% 27.4% Creating value over the long term 22.1% and sharing it with stakeholders SCDM a Employees Other French shareholders (a) SCDM is a company controlled Foreign shareholders by Martin and Olivier Bouygues.
Growing the Group and sharing value Dividend policy forms part of a long-term strategy
DIVIDEND PER SHARE 1.7 1.7 1.7a 1.7b A strong (€) 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 fi nancial 1.5 structure 1.2 0.9 0.75 Businesses that provide Recurrent 0.5 0.36 0.36 0.36 growth over the long term free cash fl ow and diversifi cation of activities generation
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
A stable ownership structure that secures the long-term vision (a) Approved by the Annual General Meeting of 4 September 2020. (b) To be proposed to the Annual General Meeting of 22 April 2021.
DIVIDEND YIELDa
5.4% 5.1% The Bouygues group’s business segments These features help Bouygues generate the Group’s construction businesses 4.7% 4.4% 4.5% drive growth over the long term free cash fl ow over the long term. tie up a small amount of capital and 3.9% because they meet essential needs for The value created can then be reinvested generate a high level of cash. As a result, housing, transportation, communication, to grow the Group and shared with gearing, corresponding to net debt over information and entertainment. its stakeholders. shareholders’ equity, stood at 17% at Furthermore, their diversity helps to end-2020. Bouygues also strives to maintain cushion the impact of the less positive a robust fi nancial structure in order to This entire strategy can be rolled out business cycles. In 2020, the Group ensure its independence and preserve over the long term thanks to the stability proved how resilient it is during the its model over time. For example, of Bouygues’ ownership structure. health crisis. (a) Divided per share relative to the closing price 2015 2016 2017 2018 2019 2020 of the previous year.
12 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 13 Climate The strategy of the Group and of its business segments
OUR CLIMATE STRATEGY Reducing our carbon footprint
a For scopes 1, 2 and 3a , Bouygues’ carbon footprint was 15.9 million tonnes of CO2 equivalent in 2020. Most emissions are attributable to purchases by the Group and to the energy consumption of worksites and other installations. The construction businesses account In response to the climate emergency, Bouygues is making a tangible for a decisive part of this result. pledge to reduce its carbon footprint and that of its customers. The Group and each of its business segments will manage the Climate strategy and its objectives with a specifi c governance structure The Group has adopted a Climate strategy and set targets for reducing its and regular monitoring by Bouygues’ Ethics, CSR and Patronage Committee and Board of Directors (see p. 57 of the complete Integrated greenhouse gas emissions by 2030 at a pace consistent with the Paris Agreementa. Report for more details).
OUR CARBON FOOTPRINT
Greenhouse gas emissions Greenhouse gas emissions by sector of activity (scopes 1, 2 and 3aa) by source
4.4% 1.4% 2.7% 2.2% 6.2%
7.2% Materials and equipment Energyb Construction OLIVIER ROUSSAT Transport of goods Telecoms 15% Chief Executive Offi cer, Investments and fi xed assets Media Bouygues group Waste Business travel 94.2% 66.7%
Is Bouygues’ commitment to So, while reducing emissions linked the climate a recent development? to our purchases and other upstream operations is vital, we also recognise that Around 15 years ago, the Group initiated downstream sources – the customers its decarbonisation strategy by focusing and users of our products, services on offering low-carbon solutions to and infrastructure – are often more its customers. For instance, we were emissions-intensive. amongst the fi rst to design positive-energy OUR 2030 GREENHOUSE GAS EMISSIONS REDUCTION TARGETS buildings and undertake extensive What challenges and opportunities renovations to comply with exacting sustainable construction certifi cations. does your Climate strategy present? But we understand that we need to We are seeing a growing understanding ramp up our efforts if we are to meet the of environmental issues among REFERENCE YEAR SCOPES 1 AND 2 SCOPE 3A SCOPE 3Bc challenges of the climate emergency and our customers. And although the degree demonstrate the strength of commitment of climate awareness still differs from our stakeholders expect from us. country to country, we are certain that Colas 2019 -30% -30% n.a. This is why, towards the end of 2020, the transition to a low-carbon economy we set ourselves ambitious yet realistic will be a fertile source of business targets for reducing our greenhouse opportunities. gas emissions. If we are to capitalise on these opportunities, Bouygues Construction 2019 -40% -30% n.a. we can leverage our already proven What is distinctive techniques, but we will also need to change the way we design, build Bouygues Immobilier 2020 -32% -32% -32% about Bouygues’ approach? and operate in unprecedented ways. First and foremost, our business segments For Bouygues, the low-carbon transition share the same determination to address is a chance to innovate more and go the climate emergency, regardless even further in reshaping our business Bouygues Telecom 2020 -50% -30% -30% of the nature of their operations or models. Our success will depend on our their climate risk exposure. The diversity ability to bring all our stakeholders along of our businesses means we are able on this journey. We also have a strong to offer alternative low-carbon solutions attachment to environmental protection TF1 2019 -30% -30% n.a. and raise awareness of climate change across our workforce, especially among across all levels of society. our younger staff. So our Climate Also, our fi ve business segments strategy will help to instil more sense n.a.: not applicable have pledged to act on both direct of purpose to their work and drive and indirect sources of emissions. employee loyalty.
(a) The Paris Agreement aims to strengthen the global response to the threat of climate change by keeping the average (a) Scope 1 (direct emissions), scope 2 (indirect emissions related to energy, especially the production of electricity and of heat) and scope 3a (other indirect upstream emissions). global temperature rise well below 2° C above pre-industrial levels and by pursuing efforts to limit the temperature (b) Energy consumption (on-site combustion); consumption of electricity, steam, heat or refrigeration; and emissions related to the energy production process. increase to 1.5° C above pre-industrial levels. (c) Scope 3b: other downstream indirect emissions.
14 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 15 The strategy of the Group and of its business segments Bern 131 is a proposed timber-frame, positive-energy building on the outskirts of the Swiss capital. The building, which will feature rooftop and façade solar panels, is scheduled for handover in 2023 and will exceed the 2000-Watt Society targeta. THE STRATEGIC PRIORITIES OF THE BOUYGUES GROUP’S BUSINESSES
Population growth, urbanisation Lead the market for the construction Construction and new environmental imperatives and renovation of buildings are generating signifi cant needs and infrastructure businesses worldwide in terms of complex Bouygues builds, optimises and buildings and infrastructure maintains a wide range of buildings a (new build and renovation). and infrastructure (transport, Bouygues is the fi fth largest In line with the advent of digital decarbonised energy production, construction group in technologies, consumer expectations telecommunications). Furthermore, and habits are also changing to cope with ageing infrastructure and the world. As a developer, (see also p. 14 to 15 of the complete keep pace with increasing demand for builder and operator, Integrated Report). energy effi ciency, the Group develops expertise in renovating assets, even it is active in building As a result, Bouygues is in a good whilst they remain in operation. position to provide full-service and civil works, energy solutions as well as innovative From the 1970s, Bouygues started to and services, property and high value-added services. expand its construction businesses Its positioning and many strengths outside France in targeted countries. partners. The construction businesses Lead the market for urban design development and transport mean that it continues to be a key They now have a long-term presence currently generate over half their sales in and development partner for its customers. through well-established local infrastructure. the 80 countries where they are present. subsidiaries (Australia, Canada, US, In consultation with customers, The Bouygues group’s strategic UK, Hong Kong, Switzerland, etc.) or residents and local partners, Support our customers to cut the construction businesses develop (a) Based on international sales, excluding country priorities in its construction on a one-off basis when working on their carbon footprint of origin (ENR Top 250 International Contractors survey, businesses are the following: technically complex projects with local projects that promote well-being, August 2020). The transition to a low-carbon harmonious living and environmental economy is central to the expansion protection. The Group offers a range 2020 KEY FIGURES of Bouygues’ construction businesses of customised and innovative solutions because it offers many growth catering for the individual housing unit In 2019, CNR opened Les Sources du Mistral, a wind farm Tunnel on Line 15 South of the Grand Paris Express opportunities. They offer a complete to an entire town or city (adaptable in north-eastern France, whose nine turbines have rapid transport link, between the stations of an installed capacity of 18 MW, equating to the annual Villejuif Louis-Aragon and Créteil l’Echat range of distinctive and high housing, connected buildings, 115,055 power consumption of 17,000 people. value-added products and services eco-neighbourhoods, the smart city, Employees to help their customers respond smart mobility, modular construction etc.). to the climate emergency. Transform our construction methods €26,208m They have solutions for: Bouygues’ construction businesses are b • the production, storage and decarbonising their business models Sales distribution of decarbonised energy in order to achieve their carbon dioxide (solar, nuclear, wind, etc.); emissions reduction targets. They are • the energy effi ciency of buildings, completely transforming their processes €437m neighbourhoods and entire towns along the entire value chain. They are Current operating profi tb and cities (positive-energy buildings, rolling out responsible purchasing zero-carbon neighbourhoods, etc.), policies and circular economy strategies whether for new build or renovation in order to secure their supplies whilst € bn projects; protecting the environment at the same 33.1 • the development of low-carbon time. They are also ramping up the Backlog mobility (electric mobility, rail use of new bio-based materials such infrastructure etc.); and as timber and low-carbon concrete. • the extension of the life of and the Training programmes have been €2.8bn intensifi cation of the use of buildings introduced widely to increase employee Net cash and infrastructure (shared living buy-in for this process and to help spaces and offi ces, reversible buildings, them keep pace with changes infrastructure maintenance etc.). in their professions.
OPERATIONAL PRIORITIES (a) The 2000-Watt Society is an environmental policy project developed at the Swiss Federal Institute • Boost the energies and services activities of Technology in Zurich (ETH Zürich) with the goal of reducing per-capita energy consumption to one • Continue Colas’ development towards new growth areas: expand third of current levels. (b) The impact of the health crisis was estimated its international network via external growth in target countries at a roughly €2.5 billion loss in sales and a €530 million (Germany, North America, Northern Europe, etc.) and make optimum drop in current operating profi t for fi rst-half 2020. As business levels returned to normal in the second use of its industrial activities (quarries and bitumen) half of the year, it is no longer possible to clearly • Turn sales and profi tability around at Bouygues Immobilier isolate the impact attributable to Covid-19 within On the residential housing worksite La Villa the change in performance as a whole for this period. des Glycines in Le Plessis Trévise, near Paris 16 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 17 The strategy of the Group and of its business segments
Media Telecoms
TF1 wants to positively Bouygues Telecom is inspire society by informing a major player in the French and entertaining as many telecommunications market people as possible. and, for the last 25 years, As France’s leading TV media has been providing the
group, it keeps pace with best technology to make Serving customers in a Bouygues Telecom the way people view and its customer’s digital lives store in the spring of 2020 consume content (catch-up TV, richer and more intense. Bouygues Telecom’s new “Ambition 2026” Gain an additional 3 million d enhanced services, and Saltoa). Its networks, products and strategic plan is aimed at speeding up FTTH customers its growth in a buoyant French market Bouygues Telecom is speeding up a It has strengthened its services bring its 25 million in order to become the number 2 in the roll-out of fi bre in a context mobile and a major player in fi bre by presence across the entire customers closer to marked by a sharp increase in demand. 2026. Below are the fi nancial targets In order to gain an additional three value chain investing in new their family and friends. it has set for 2026: million customers, the company is • over €7 billion in sales from services; planning to double its FTTH coverage growth-potential sectors As a socially-responsible player, • EBITDA after Leases of around (from 17.7 million premises marketed such as content production Quand baleines et tortues nous montrent Bouygues Telecom facilitates €2.5 billion with an EBITDA after in December 2020 to 35 million le chemin, a documentary aired on Ushuaïa TV Leases margin of around 35%; and by 2026) through direct investment in November 2020 and digital media. access to high-quality digital • free cash fl owb of around €600 million. and partnerships. services for all, whilst keeping “Ambition 2026” has three strands: Double market share in fi xed BtoB The Covid-19 pandemic has underscored international expansion, following e a tight rein on the impacts Become the number 2 in mobile and become a fi xed wholesale player the interest among the French public the acquisition of De Mensen studios in for television, with daily viewing time Belgium and Reel One in Canada in 2019. generated by its activity. Bouygues Telecom wants to be the As the third ranked operator in the rising sharply during the lockdown and number two mobile operator in terms BtoB market, Bouygues Telecom wants remaining high after restrictions were In digital media, TF1’s Unify division of client consideration in the French to ramp up its growth, particularly in eased. As a result, TF1 remains focused enables it to: market. As the third biggest operator fi xed. It enjoys a number of strengths, 2020 KEY FIGURES on its goals: • provide an additional offer based on 2020 KEY FIGURES in market share terms following the such as its position as a benchmark web-origin content via recognised acquisition of Euro-Information Telecom in customer relations in BtoB, Pursue the transformation brands (Marmiton, Aufeminin, etc.) able (EIT) in December 2020, Bouygues a multi-channel distribution network of the unencrypted TV model to engage active communities, and; Telecom will draw on its brands, and the monetisation of its BtoB fi bre 3,697 9,550 its long-term partnership with infrastructure. It is also growing • Adapt content accessibility to new • strengthen its offering for advertisers Crédit Mutuel-CIC and the benefi ts of its fi xed wholesale activity. Employees “non-linear”b and mobile viewing to boost their effectiveness and regain Employees value in a growing digital advertising the latter’s complementary nationwide habits via its MYTF1 platform and Bouygues Telecom also implements market via the launch of the media distribution network of 4,200 bank the Salto video-on-demand platform. a dynamic policy aimed at protecting €2,082m sales unit Unify Advertising € m branches, and its ranking as the second • Monetise content and additional 6,438 best network in terms of qualityc, which the environment (see also p. 30 to Salesa services f 31 of the complete Integrated Report). Furthermore, TF1 has committed to Sales it is boosting by extending its coverage • Offer innovative commercial offers cutting its carbon footprint and raising and portfolio of frequencies. that pre-empt media convergence. € m awareness about environmental issues 190 among its viewers (see also p. 30 to €1,502m a Consolidate its position (a) Includes EIT. Current operating profi t 31 of the complete Integrated Report). g in production and accelerate EBITDA after Leases (b) Calculated before change in WCR related to operating activities and excluding 5G frequencies. in digital media (c) Survey by Arcep (the French telecoms regulator), December 2020. (d) Fibre-To-The-Home. % In TV production, TF1 draws on Newen, (a) Salto is an over-the-top (OTT), subscription-based 9.1 video-on-demand service launched on 20 October % (e) The wholesale market for telecoms operators. which boasts recognised expertise. 2020 by TF1, France Télévisions and M6. 30.7 (f) The impact of the Covid-19 crisis was estimated at a €70 million loss in sales in fi rst-half 2020. Current operating margin As business levels returned to normal in the second half of the year, it is no longer possible to clearly isolate Newen’s backlog remained at a high level (b) Viewing that does not follow the broadcaster’s h imposed schedule. Viewers determine when they EBITDA after Leases margin the impact attributable to Covid-19 within the change in performance as a whole for this period. in 2020 thanks to the diversifi cation view content, for example using the catch-up feature (g) Current operating profi t after taking account of the interest expense on lease obligations, before (i) net depreciation of its customer base and its continued or video on demand. and amortization expense on property, plant and equipment and intangible assets, (ii) net charges to provisions % and impairment losses, and (iii) effects of acquisitions of control or losses of control. 32.4 a m (h) EBITDA after Leases/sales from services. Share of target audienceb 25 Customers
Over 1,600 hours OPERATIONAL PRIORITIES in Newen’s backlogc Over 500 OPERATIONAL PRIORITIES • Achieve nationwide 5G coverage by end-2021 (a) The impact of the health crisis was estimated Bouygues Telecom at a €250 million loss in sales and a €100 million drop • Keep pace with changes in how video content is consumed and monetise stores in France • Complete the integration of alternative operator in current operating profi t for fi rst-half 2020. As business levels returned to normal in the second half of the year, these new practices Euro-Information Telecom and on-board its 2.1 million customers it is no longer possible to clearly isolate the impact • Speed up the marketing of FTTH in order to gain an additional attributable to Covid-19 within the change in performance • Continue Newen’s international expansion as a whole for this period. 3 million BtoC customers by 2026 • Carry the integration of Unify through to conclusion, foster operational 3,900 (b) Source: Médiamétrie – Women under 50 who are purchasing decision-makers. synergies with other TF1 activities and boost profi tability Customer and • Increase market share in fi xed BtoB by 5 points by 2026. (c) Projects worth over €1 million. sales advisers
18 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 19 Climate
The Bouygues group’s construction businesses work hand in hand with local authorities to develop the latter’s decarbonised transport networks. In this example, work on the construction of line B of the Rennes metro in France, between Saint-Jacques-Gaîté (in the north east of the city) and Cesson-Viasilva (in the south-west) 3 OUR GOVERNANCE
The Bouygues group enjoys a stable governance that allows it to implement its value-creation strategy over the long term. In keeping with its culture, diverse activities and unique ownership structure, the Group focuses on trust and empowerment, as well as on dialogue between the parent company and the business segments.
20 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 21 Our governance Our governance
A BOARD OF DIRECTORS SENIOR MANAGEMENT TEAM
SERVING A LONG-TERM VISION Bouygues’ Group Management Committee is comprised of the Executive Offi cers of the parent company and the heads of the business segments, who all have vast experience within the Group. Each business segment defi nes its own business strategy within the framework of the overall vision as determined by the parent company. As such, the business segments work to meet the major challenges facing the Group whilst retaining a Composition of the Board of Directors great deal of freedom in managing their own operations. Continuous and constructive dialogue between the parent company and the business segments is pivotal in ensuring harmonisation and coordination at the highest level. At 18 February 2021 50% 50%
Independent Female Board GROUP MANAGEMENT COMMITTEE directorsa membersb at 18 February 2021
years years Bouygues SA: 8.9 58 The parent company has a signifi cant presence Martin Bouygues Average seniority Average age on the boards of each of the Group’s fi ve Chairman of the Board of directors of directors business segments, enabling it to help defi ne their strategy and play an active part in making their important decisions. Olivier Roussat Chief Executive Offi cer VARIED AND COMPLEMENTARY EXPERIENCE AND SKILL SETS
Sector-specifi c skills
Construction – Property Olivier Bouygues Edward Bouygues Cyril Bouygues 7 Standing representative Standing representative Power – Transport – Utilitiesc of SCDM of SCDM Participations 6 Banking – Insurance Edward Bouygues Pascal Grangé Jean-Manuel Soussan 4 Deputy CEO Deputy CEO Senior Vice-President Industry Telecoms development, Chief Financial Offi cer Group HR Director 4 CSR and Innovation Telecoms 4 Anne-Marie Idrac Colette Lewiner Clara Gaymard Media 3 Senior management of the business segments: Civil service Each business-segment head attends 2 all Bouygues group Board meetings.
Professional skills
Benoît Maes Rose-Marie Alexandre de Rothschild Senior executive in a large group Van Lerberghe 8 Finance 6
International experience Philippe Bonnavea Pascal Minaultb Frédéric Gardès Gilles Pélisson Richard Viel 5 Chairman and CEO Chairman Chairman and CEO Chairman and CEO Chairman and CEO Digital of Bouygues Construction of Bouygues Immobilier of Colas of TF1 of Bouygues Telecom 4 Bernard Allain Béatrice Besombes Raphaëlle Defl esselle CSR (Corporate social responsibility) 4
Member of the SCDM group Human resources Independent director 2 In line with practices at the parent company, the Boards of Directors of each business segment are supported by committees that Non-independent external director enhance their decision-making in areas such as audit, business ethics and remuneration. Director representing employees Director representing (a) Excluding directors representing employees and employee shareholders. employee shareholders (b) Excluding directors representing employees. (a) In August 2021, Pascal Minault will succeed Philippe Bonnave, following the latter’s decision to retire, as Chairman and CEO of Bouygues Construction. Michèle Vilain (c) Water, electricity and other public services. (b) On 19 February 2021, Bernard Mounier will succeed Pascal Minault as Chairman of Bouygues Immobilier.
22 • BOUYGUES • 2020 AT A GLANCE BOUYGUES • 2020 AT A GLANCE • 23 OUR OVERALL PERFORMANCE About this Integrated Report
This Integrated Report (here, Methodology: drawing inspiration Main changes since the previous the abridged version) has been from the benchmark framework report: this fourth Integrated written with all Bouygues group proposed by IIRCa , it is the result Report includes a detailed overview Factored into the calculation investors, employee shareholders, of collaboration between the of Bouygues’ business model a of Executive Offi cer HUMAN CAPITAL 2018 2019 2020 remuneration SDG* staff members and other Group’s senior management and of the Climate strategy of the stakeholders in mind. and departments at the parent Group and its business segments. 2020 2021 company and in each of the fi ve Purpose: to provide an overview Readers are invited to send business segments. • Workplace accident 5.2 4.9 5.1 ■ ● 8 of the Bouygues group, its priorities their questions and comments to: frequency rate and its business segments, Scope: this report covers fi scal and explain how it creates long-term year 2020. The methodology and • Percentage of women value – both fi nancial and the scopes of the indicators are occupying the grade of 19.7% 20% 20.7% ● 5 department head or higher extra-fi nancial – for its stakeholders. shown in the Group’s Universal Registration Document (available • Number of employees (a) International Integrated Reporting Council from 18 March 2021). [email protected] trained 66,903 83,612 80,165 8
• Number of employees 1,918 1,860 1,927 8 with disabilities Overview of Group publications
ECONOMIC CAPITAL € million • Sales 35,555 37,929 34,694 9 - 11
• Current operating profi t 1,564 1,676 1,222 ■ ●
• Net profi t attributable to the Group 1,308 1,184 696 ■ ●
• Net debt 3,612 2,222 1,981 ■ ●
• Return on Capital 9% 8% 6% ● Employed (ROCE) UNIVERSAL REGISTRATION INTEGRATED DOCUMENT REPORT • Share price performanceb -8% +20.9% -11.2% ■ ● Business, fi nancial, accounting, legal, human resources, environmental The complete version of the Integrated Report and social information for the previous year (regulated information). can be downloaded from bouygues.com Filed with the AMF (the French securities regulator) every year. Also exists in French and German
NATURAL CAPITAL
• Carbon emissions 17 17.4 15.9 ● 13 millions of tonnes of CO2 equivalent
• Carbon intensity
tonnes of CO2 equivalent/€ million 502 486 461 ● 13 of sales
• CDP’s Climate Change A list score AA-A- 13 INVESTOR PRESENTATIONS • Proportion of Colas Presentation of the Bouygues group’s results, quarries and gravel pits strategies and outlook. working to promote 51% 52% 44% 15 biodiversity
■ criterion or performance condition factored into variable remuneration ● theme factored into the criteria and performance conditions of the 2021 remuneration policy (a) The 2018 fi nancial indicators have been restated to refl ect the effects of the application of IFRS 16. (b) Share price performance after market close between 1st January and 31 December.
BOUYGUES.COM AND SOCIAL NETWORKS (*) It is Bouygues’ policy to help attain the UN Sustainable All the news, information, publications and job offers of the Bouygues group. Development Goals (SDG), with a focus on these fi ve, which are tightly connected to its core businesses.
Scan this QR code (app and internet connection required) 24 • BOUYGUES • 2020 AT A GLANCE BOUYGUES GROUP 32 avenue Hoche F-75378 Paris cedex 08 Tel.: +33 (0)1 44 20 10 00 bouygues.com Twitter: @GroupeBouygues
BOUYGUES CONSTRUCTION Shareholders Challenger and investors 1 avenue Eugène Freyssinet – Guyancourt Karine Adam Gruson F-78061 Saint-Quentin-en-Yvelines cedex Investor Relations Director Tel.: +33 (0)1 30 60 33 00 Tel.: +33 (0)1 44 20 10 79 bouygues-construction.com [email protected] Twitter: @Bouygues_C BOUYGUES IMMOBILIER Registered share service 3 boulevard Gallieni Gaëlle Pinçon – Marie-Caroline Thabuy F-92445 Issy-les-Moulineaux cedex Tel.: +33 (0)1 44 20 10 61/11 07 Tel.: +33 (0)1 55 38 25 25 [email protected] bouygues-immobilier-corporate.com Twitter: @Bouygues_Immo Group Corporate COLAS Communications department 1 rue du Colonel Pierre Avia Tel.: +33 (0)1 44 20 12 01 F-75015 Paris (press offi ce) Tel.: +33 (0)1 47 61 75 00 [email protected] colas.com Twitter: @GroupeColas TF1 1 quai du Point du jour F-92656 Boulogne-Billancourt cedex Tel.: +33 (0)1 41 41 12 34 groupe-tf1.fr Twitter: @GroupeTF1 BOUYGUES TELECOM 37-39 rue Boissière F-75116 Paris Tel.: +33 (0)1 39 26 60 33 corporate.bouyguestelecom.fr Twitter: @bouyguestelecom
February 2021 • Bouygues group • Translation: Martin Hemmings and the Bouygues SA Translation department • Design and production: • Printed by: DEJA LINK (Seine-Saint-Denis) • Accessible digital version: Ipedis.
Accessibility: from 5 April 2021, the interactive version of this document will comply with accessibility standards for web content (WCAG 2.1) and have ISO 14289–1 certifi cation. Its ergonomic design will allow people with motor disabilities to use keyboard commands to browse the document. It is accessible to people with impaired vision and has been tagged so that it can be transcribed vocally, in full, by screen readers from any computerised device. The PDF has been comprehensively tested and validated by a non-sighted expert.
Certifi ed against the NF T 51–800 standard, the Biopress HC mailing fi lm used to send this publication to Group employees is home compostable and 100% bio-based.
NB: some of the photos used in this report were taken before the Covid-19 health crisis and therefore before the wearing of masks was made obligatory.
Photo credits/artists impressions: Bouygues Telecom (p. 5), Y. Chanoit (p. 16), C. Chevalin/TF1 (p. 5), J. Cresp (front cover, inside back cover), A. Da Silva (p. 22-23), diff. Kommunikation AG (p. 17), S. Duparc (p. 20-21), SO Dupont Renoux (p. 5), A. Février (p. 2-3, 9, 19, 22-23, 24), C. Fouquin (p. 16), D. Giannelli (inside front cover), N. Grosmond (p. 10-11), J.-F. Labat (p. 22-23), N. Lascourrèges (p. 16), S. Loubaton/ Capa Pictures (p. 1, p. 14, p. 22-23), J. Lutt/Capa Pictures (p. 22-23), TEC Production (p. 18). Architects: Atelier 5 (p. 17), Linkcity/Valode & Pistre Architectes (p. 10-11), Tadao Ando Architect & Associates, NeM/ Niney et Marca architectes, Pierre-Antoine Gatier (p. 24)