Bouygues presents Equans' strategy and outlook
23 Febbraio 2023 - 07:30AM
Bouygues presents Equans' strategy and outlook
Press release Paris, 23/02/2023
BOUYGUES PRESENTS EQUANS' STRATEGY AND OUTLOOK
With Equans, Bouygues strengthens its
value-creation capacity
- Creation of a leader in Energies
and Services, a business at the crossroads of three major
transitions – industrial, environmental and digital;
- Strengthening of the Group’s
presence in a growing sector;
- Group cash flow generation
supported by Equans, which is an asset-light activity;
- Acquisition has accretivea impact
on net profit attributable to the Group and on the Group’s free
cash flow from the first year
Equans is rolling out its
strategy and aims to
double its current operating margin from
activities (COPA margin) by
2027
- Priority to a selective approach in
order to focus on performance;
- Roll-out of PERFORM, a performance
plan that aims to double the current operating margin from
activities (COPA margin) to 5% by 2027, for a cash conversion rate
(COPA-to-cash flow) before Working Capital Requirement (WCR) of
between 80% to 100% from 2023, and the improvement of the WCR
Bouygues (Euronext Paris: FR0000120503,
EN FP) is today organising an event for its shareholders
and financial analysts to present its goals for Equans, a leading
company in the Energies and Services market. With proforma sales of
€17.7b billion in 2022 and 90,000 employees, Equans becomes the
Group’s biggest business segment following its merger with Bouygues
Energies & Services.
The Equans Capital Markets Day will be presented
by Olivier Roussat, CEO of
Bouygues, Pascal Grangé, Deputy CEO and CFO
of Bouygues, Jérôme Stubler, President of Equans,
Etienne Jacolin, Senior EVP in charge of
Finance, Legal and Information Systems, Ana Giros,
EVP in charge of Strategy, Development and CSR and Executive
President of the MBU BELUX & ANZ; and Thomas
Jung, EVP in charge of Operational Excellence, Innovation
and Procurement. The presentation will begin at 2pm (CET)
at Bouygues group’s head office at 32 Avenue Hoche in Paris,
France, and will be webcast live on the Group's website:
https://bouygues.com.
Equans, a leader in
Energies and
Services, is
ideally positioned and committed to helping its customers
address the industrial, environmental
and digital transitions:
- by contributing to the
decarbonisation of energy production and transport, optimising uses
and maximising energy efficiency;
- by optimising the efficiency of
production and industrial processes and by participating in the
reonshoring of industry and;
- by collecting, transmitting,
protecting, storing and processing data to create value.
Equans has
a resilient model that draws on unique expertise, a
worldwide presence and a diversified
customer base:
- Equans draws on its recognised
skills in electricity, HVACc, cooling and fire protection, digital
and ICTd, facility management, mechanical engineering and
robotics;
- Equans enjoys unique, high
value-added specialised activities, particularly in the fields of
transport, defence, nuclear power and data centres;
- With around 35,000 customers whose
contracts are 85% recurrent, Equans has a large and loyal customer
base across a wide range of industries, both public and
private.
PEFORM: a plan
for a margin-focused strategyBy capitalising on
the transformation plans already rolled out and that have already
produced results at Equans and Bouygues Energies & Services,
PERFORM aims to prioritise a selective approach in order to achieve
a current operating margin from activities (COPA margin) of 5% in
2027 while rolling out a strong cash flow generation culture.
Equans managers, from Executive Committee members to profit centre
managers, will benefit from a dedicated incentive plan to align
their own interests with those of the Group and thus ensure that
objectives are achieved within the defined timeframe.
Guidance
- Equans is aiming for a
slight increase in sales in 2023 and 2024, as a result of
its selective approach strategy.
- From 2025
onwards, Equans aims to
accelerate the organic
growth of its sales to
align with that of market
peers.
- Equans is
targeting a current
operating margin from activities
(COPA margin) of 5% in
2027 versus 2.3%e in 2022 with:
- in 2023, a COPA margin between 2.5%
and 3%;
- in 2025, a COPA margin close to
4%;
- in 2027, a COPA margin of 5%.
- An increase in cash flow
generation driven by COPA margin improvement, a cash
conversion rate (COPA-to-cash flowf) before WCR of between 80% to
100% from 2023 and an improvement in WCR via the PERFORM plan.
Olivier Roussat, Chief Executive Officer
of the Bouygues group, said:"Equans is perfectly
positioned on the three major transitions of our economies and its
strategy of doubling operating margins by 2027 to reach
industry-leading levels going forward will ensure that all our
shareholders reap the rewards of profitable growth. By
integrating Equans, Bouygues will reinforce its long-term value
creation capacity. Together with all the employees of this new
business segment and its talented management team, we share a
strong culture and values that will ensure operational excellence
for the benefit of all our stakeholders”.
Jérôme Stubler,
President of Equans added:"We are
very proud to have joined Bouygues, a Group with which we share a
common vision, culture and goals. The merger with Bouygues Energies
& Services is a fantastic opportunity to create a world-leading
player with a strong local footprint. Thanks to the Group's
unwavering support, the teams are committed to ensuring a rapid
integration and our organisation is moving towards operational
excellence. We have identified the drivers for improving our
performance and launched the PERFORM plan with the involvement of
all Equans managers. Today we present the ambitious targets for
2027 and the key milestones for achieving them. Equans' growth
strategy will benefit our customers, our partners and the
shareholders of the Bouygues group”.
ABOUT EQUANSEquans is a global
leader in the energies and services sector with operations in 20
countries, 90,000 employees* worldwide and annual sales of over €17
billion**. Equans designs, installs and delivers tailor-made
solutions to improve its customers' equipment, systems, and
technical processes and to optimise their use in the context of
their energy, industrial and digital transitions. Thanks to a
strong geographical footprint through its long-standing local
brands and excellent technical know-how, Equans' highly qualified
experts are able to support both urban and rural communities as
well as industries and infrastructure in the fields of HVAC
(heating, ventilation and air conditioning), cooling and fire
protection, facilities management, digital and ICT, electrical and
mechanical engineering and robotics. Equans is a leader in its main
European markets (France, Switzerland, Belgium, the Netherlands and
the UK) and is also well positioned in the US and Latin America.
Equans is a Bouygues group company. www.equans.com* Combined figure
(Equans + Bouygues Energies & Services) at 31 December 2022. **
Combined 2022 sales (Equans + Bouygues Energies & Services),
unaudited data.
ABOUT BOUYGUESBouygues is a
diversified services group operating in over 80 countries with
196,000 employees all working to make life better every day. Its
business activities in construction (Bouygues
Construction, Bouygues Immobilier, Colas), energies and
services (Equans) media (TF1) and
telecoms (Bouygues Telecom) are able to drive
growth since they all satisfy constantly changing and essential
needs.
INVESTORS AND ANALYSTS CONTACT:
INVESTORS@bouygues.com • Tel.: +33 (0)1 44
20 10 79
PRESS CONTACT:
presse@bouygues.com • Tel.: +33 (0)1 44 20
12 01
BOUYGUES SA • 32 avenue Hoche • 75378 Paris
CEDEX 08 • bouygues.com
a Before PPA amortisation.b Combined unaudited 2022 proforma
data for Equans and Bouygues Energies & Services. c Heating,
Ventilation and Air Conditioningd Information & Communication
Technologye Combined unaudited 2022 proforma data for Equans and
Bouygues Energies & Services.f Free cash flow before cost of
net debt, interest expense on lease obligations and tax paid
- PR_Bouygues presents Equans' strategy and outlook
Grafico Azioni Bouygues (EU:EN)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Bouygues (EU:EN)
Storico
Da Mar 2023 a Mar 2024