Financial
report
2014
Bouygues
Construction
Management
report
Consolidated
financial
statements
Notes to the
consolidated
financial statements
Statutory auditors’ report
on the consolidated
financial statements
Parent company
financial
statements
Page 05
Page 16
Page 22
Page 67
Page 68
Contents
05
Management report
16 Consolidatedfinancialstatements
22
Notestotheconsolidatedfinancial
statements
22
22
29
34
37
38
39
41
43
44
45
Significantevents
Groupaccountingpolicies
Non-currentassets
Currentassets
Shareholders’equity
Non-currentandcurrentprovisions
Non-currenttaxassetsandliabilities
Non-currentandcurrentdebt
Changeinnetsurpluscash
Othercurrentliabilities
Salesandotherrevenuesfrom
operations
46 Operatingprofit
47 Incomefromnetsurpluscashand
otherfinancialincomeandexpenses
48
49
50
53
55
57
59
60
61
61
61
62
66
67
Incometaxexpense
Basicanddilutedearningspershare
Segmentinformation
Financialinstruments
Offbalancesheetcommitments
Employeebenefitobligations
Disclosuresonrelatedpartiesand
onremunerationofdirectorsandsenior
executives
Additionalcashflowstatement
information
Discontinuedandheld-for-saleoperations
Principalexchangerates
Auditors’fees
Listofprincipalconsolidatedentities
at31December2014
Impactsoffirst-timeapplicationofifrs 11
andifric 21
Statutory auditors’ report on the
consolidatedfinancialstatements
68 Parentcompanyfinancialstatements
Cover: Stade Vélodrome football stadium in Marseille
Key figures 2014
17.1
17.8
11.7
18.1
277
267
254
sales
2012
2013
(in € billions)
2014
18.1
10.6
11.1
2012
11.7
254
(in € millions)
2012
+ 1%
2013
2014
- 8%
+ 6%
2.9%
4
53,500
employees
2014
netprofitatt.totheGroup
orderbookatend-December
(in € billions)
2013
of which
49%
abroad
current operating margin
- 1 point
Highlights of the year
Acquisition of a majority shareholding in the Canadian company Plan Group
Financial report 2014
Majorsignedcontracts
• Shatin to Central Link
tunnel in Hong Kong
• City of Music in
Boulogne-Billancourt in
Paris region
• Ridge Hospital in Ghana
• Viaduct on the new
coastal road on
Reunion Island
Projectsunder
construction
• French Ministry of
Defence in Paris
• Hong Kong-ZhuhaiMacao bridge
• Nîmes-Montpellier
railway bypass
• Qatar Petroleum
District in Doha
Completedprojects
• The Singapore Sports
Hub
• Port of Miami Tunnel
• Stade Vélodrome
football stadium
in Marseille
Sustainable
construction
• 50% of the R&D budget
is devoted to sustainable
construction
Financial report 2014
Management report*
Bouygues Contruction is a global player in construction and services with operations
in 80 countries. Its teams design, build and operate structures and facilities
which improve people’s daily living and working environments.
Leading the way in sustainable construction, Bouygues Construction and its 53,500 employees
develop long-term relationships with their customers in order to help them shape a better life.
Growth strategy
and opportunities
There are two main thrusts to Bouygues
Construction’s strategy:
A presence throughout the
value chain
The development of skills and activities
throughout the value chain, upstream
and downstream of construction, which
is the company’s core business, in order
to offer high value-added, end-to-end
products and services: urban planning,
property development, design, legal and
financial engineering (PPP and concessions) and long-term services for the
project and its users (energy performance, smart grids, smart and communicating buildings, etc.).
Sustainable construction
Bouygues Construction offers customers a responsible approach which factors in the technical, environmental and
social issues associated with a project.
In technical terms, the company offers
effective solutions spanning the entire
lifecycle of a structure or neighbourhood and gives customers long-term
commitments to high-level performance, especially for low-energy and
HQE® (High Environmental Quality)
buildings.
Strengths and assets
Bouygues Construction has many
strengths to draw on in all its lines of
business:
• a strong international presence:
Bouygues Construction operates
worldwide on a long-term basis
through well-established local subsidiaries or on one-off, technically complex major projects. The two
approaches are complementary and
give the company the necessary flexibility to mobilise its resources quickly
on high-potential markets. As a result
of this strategy, Bouygues Construction
generates half its sales on international
markets;
• differentiation through innovation: at Bouygues Construction, innovation is found at all stages of a
project, from marketing up to design
and construction, underpinned by
robust partnerships with leading
industrial firms such as Lafarge,
Renault and Techniwood;
• long experience of managing complex projects: its motivated people
with high-level technical skills enable
the company to fully meet the needs
of its public and private customers and
make the most of future opportunities;
• the capacity to adapt to changing
markets: the value and depth of its
order book give the company visibility
that enables it to promptly adjust costs
and focus investment on the most
buoyant markets;
• a policy of controlling operating
and financial risks: strict application
of procedures at all levels of the company guarantees that the right projects are selected and carried out
smoothly;
• robust financial performance: over
the last ten years, Bouygues Construction
has demonstrated its capacity to generate sales growth while preserving profitability, backed up by a healthy and
robust financial situation.
Outlook for 2015
In a still-challenging economic environment, Bouygues Construction enjoys
good visibility, backed up by:
• orders at 31 December 2014 to be
executed in 2015 worth €8.7 billion;
• sustained international (excluding Europe) activity, especially in
places less affected by the economic
crisis, such as Hong Kong, Singapore,
Qatar, Canada, Switzerland, the UK,
and Australia;
• a long-term order book (beyond
five years) worth €2.6 billion at
31 December 2014;
• a sound financial structure, with a
net cash surplus of €2.9 billion;
• expertise in sustainable construction, to which the company devotes
half its R&D budget.
Tight control over the execution of
major projects and a selective
approach to orders in the face of competitive pressure will continue to be
central priorities for Bouygues
Construction in 2015.
Market position
Given the organisational structure of its
direct competitors, it is difficult to make
like-for-like comparisons between them
and Bouygues Construction.
In Europe: based on the 2013 ranking
published by trade magazine Le Moniteur in December 2014, the Bouygues
group’s construction activity (Bouygues
Construction, Bouygues Immobilier,
Colas) is the third largest in Europe
after the Spanish firm ACS (Hochtief,
* Based on the report required under Article L.225-102 of the French Commercial Code and approved by Bouygues Construction’s Board of Directors on February 20th 2015.
5
6
Germany’s leading construction firm,
has been a subsidiary of ACS since
2011) and Vinci’s Contracting and
Property Development division, and
ahead of the Swedish contractor Skanska and the French contractor Eiffage.
included two major projects in Hong
Kong, the Liantang and Shatin to Central Link tunnels, Ridge Hospital in
Ghana, as well as a number of commercial successes, particularly in
Switzerland, Singapore and the UK.
In the world: the Bouygues group’s
construction activity, comprising its
three construction businesses, is
placed seventh in the 2013 ENR ranking of international contractors published in December 2014, based on
the share of sales generated on international markets.
Buildings with environmental certification accounted for 66% of the order
intake, compared with 58% in 2013.
In France: in a building and civil works
market worth about €200 billion
according to a Euroconstruct estimate
in November 2014, Bouygues
Construction (excluding Bouygues
Energies & Services) is one of the top
three French contractors ahead of
Eiffage Construction and behind Vinci
Construction (2013 ranking published
by Le Moniteur in December 2014).
The market also includes many small
and medium-sized firms. In energy
and services, Bouygues Energies &
Services is in sixth place after Cofely
(GDF Suez), Vinci Énergies, Dalkia,
Spie and Eiffage Énergie (2013 ranking published by Le Moniteur in
December 2014).
The order book at end-2014 stood at a
high €18.1 billion, and up 1% on endDecember 2013, with international markets accounting for 51%. The order book
in the Asia-Pacific zone is the second
biggest after the one for Europe (excluding France). Orders booked at end-2014
to be executed in 2015 amounted to
€8.7 billion and orders to be executed
beyond 2015 to €9.4 billion, giving good
visibility for future activity.
Sales growth:
€11,726 million (+6%)
Sales rose by 6% in 2014 to €11,726
million, with building and civil works
accounting for 86% and energy and
services for 14%.
Sustainable commercial
activity, sales growth and
a robust financial
structure
Sales in France fell back slightly by 1%
to €5,959 million, and represented 51%
of total sales. Sales outside France rose
sharply, up 13% at €5,767 million. They
include the favourable impact of the
acquisition of the Canadian company
Plan Group in September 2014.
A high level of order intake:
€11,581 million
Like-for-like and at constant exchange
rates, sales rose by 4%.
Order intake in 2014 amounted to a
high €11,581 million. It included 11
contracts worth more than €100 million each. Seven were on international markets, two of which were
worth more than €400 million.
Financial report 2014
An increase in the order
book giving long-term
visibility (€18.1 billion)
Order intake in France amounted to
€5,441 million and included contracts
for the City of Music in Boulogne-Billancourt, the viaduct on the new
coastal highway on Reunion Island,
the second package of the Line 14
metro extension in Paris, renovation
of the Bercy Arena in Paris, the Prado
shopping centre in Marseille, and
Lyon-Saint Exupéry airport. Orders
were 5% lower than in 2013, mainly
due to a contraction of the market in
the Paris region.
Order intake on international markets
came to €6,140 million. Orders
Operating profit which
reflect the start of work on
several major projects
Current operating profit came to €335
million, down €102 million versus the
high level of 2013. The current operating
margin at 2.9% was 1 point lower than in
2013. This trend is due particularly to
tighter economic conditions and the
start of work or early stages of a number
of major projects, such as the Tuen MunChek Lap Kok tunnel in Hong Kong.
Financial income amounted to €36 million, up €20 million versus 2013. The net
margin amounted 2.2%, 0.3 point lower
than in 2013, yielding net profit attributable to the Group of €254 million.
A still very substantial net
cash surplus: €2,900 million
Despite tougher conditions, especially
in France, Bouygues Construction still
has a robust financial structure, with
a net cash surplus of €2.9 billion at
end-2014.
Developments in
Bouygues Construction’s
markets and activities
The world’s construction needs remain
at a very high level, especially for urban
amenities and energy, academic, cultural and leisure infrastructure.
In industrialised countries, Bouygues
Construction draws on its expertise
throughout the value chain to offer
customers increasingly competitive
solutions for complex major projects.
Markets in emerging countries are
more dynamic due to factors such as
high growth rates and sovereign wealth
funds, holding out attractive prospects
for Bouygues Construction’s businesses. The company can rapidly
mobilise its resources on high-potential markets, as demonstrated by the
major contracts concluded in Asia in
recent years.
Demand for sustainable construction
is more or less mature depending on
the country. It is more mature in
France, where the government plays a
key role in stepping up efforts to make
both new and renovated buildings
more energy-efficient, and in several
other countries of Western Europe (UK
and Switzerland), North America
(Canada) and Asia (Singapore and
Hong Kong). Where countries are less
mature in this sphere, Bouygues
Construction takes a proactive stance,
especially in promoting the environmental certification of its projects.
Building and civil works
In 2014, sales in the building and civil
works segment rose to €10,049 million, 5% higher than in 2013 (€9,586
million*). Sales amounted to €4,893
million in France and €5,156 on international markets (80 countries).
France
The overall economic environment
deteriorated further in France. Capital spending in the public and private
sector continued to be affected by
pressure on government budgets and
hesitation on the part of private and
industrial investors. Markets in the
Paris region, which had held up better
than in the rest of the country, also
Demand for housing in the Paris
region remained strong. The appeal
of the capital combined with new
environmental requirements helped
to sustain the commercial property
construction and renovation markets.
Considerable potential for major
infrastructure projects remains, especially within the framework of the
Grand Paris project. In an uncertain
economic environment, however, the
construction of social or private-sector housing was not resilient enough
to halt the market slide.
In the rest of France, the building
market remained under pressure, with
projects tending to become smaller.
The conclusion of large-scale projects
continues to be a very long and very
complex process.
Most of the government measures to
boost housing construction announced
in late 2014, such as tax incentives,
streamlined procedures and the freeing-up of building land, came into
effect on 1 January 2015 and could
begin to have a positive impact.
2014 sales: €4,893 million (-1%)*
In the Paris region, Bouygues Construction
worked on major amenity projects such
as the French Ministry of Defence, the
Paris Philharmonic Concert Hall and
the Paris law courts complex. The company handed over two major publicprivate partnership projects in 2014:
the Saint-Quentin-en-Yvelines Vélodrome, which it will operate and maintain for 27 years, and the Paris Zoo,
which it will maintain for 25 years.
The company’s expertise in refurbishing luxury hotels and exceptional locations was illustrated in Paris by the
ongoing renovation of Hôtel de Crillon
and the Ritz Paris Hotel, and handover
of the Molitor swimming pool complex,
which includes a 5-star hotel.
Regarding office building market,
Bouygues Construction handed over
the Rezo office building in the Saussure Cardinet development in Paris.
Building work continued on the
Campus Val de Bièvre in Gentilly,
south of Paris, the Eole office building
for Crédit Agricole at Montrouge,
south of Paris, and the Tour Athéna
renovation in La Défense.
The construction and refurbishment of
social and private-sector housing held
up well overall. Bouygues Construction
put the finishing touches to the transformation of Laennec Hospital in Paris
into offices and flats and handed over
11 residential buildings in the Fort
d’Issy eco-neighbourhood in Issy-lesMoulineaux.
Commercial activity in the Paris region
in 2014 was marked regarding publicsector orders for the City of Music on
Seguin Island in Boulogne-Billancourt,
a public-private partnership project,
and for the renovation of Bercy Arena
in Paris. Private-sector orders included
the Boulevard Ornano complex in
Paris, comprising a nursing home and
residential buildings, and the EDF
training centre in Palaiseau, south of
Paris.
Elsewhere in France, Bouygues
Construction’s five regional building
subsidiaries were particularly active
on the market for public healthcare
infrastructure. Work continued on the
Orléans and Belfort-Montbéliard hospitals, the Amiens-Picardie hospital
was handed over and orders were
taken for two new buildings on the
Strasbourg teaching hospitals site.
Two major amenity construction projects were completed in 2014: the
municipal authority complex in Bordeaux and the reconfiguration of
Stade Vélodrome in Marseille, a showcase example of Bouygues Construction’s
expertise in the construction of leisure facilities and the execution of
works on occupied sites. Orders for
two more major amenity projects
were taken in 2014: Lyon-Saint Exupéry airport and the Prado shopping
centre in Marseille.
Despite the difficulties related to a
flagging economy, activity was sustained by the start of works on several
major projects booked in 2013. They
included the Incity office tower in
Lyon, which will be the city’s highest
building, renovation of Bordeaux University in the innovative form of a
design/build/maintain (DBM) contract, and five secondary schools
under PPP contracts for the Loiret
department in central France.
In civil works, Bouygues Construction
has regional branches all over France
that specialise in smaller-scale civil
engineering projects and earthworks.
A specialist subsidiary carries out com-
plex major projects such as the ongoing civil engineering works for the
Flamanville EPR nuclear power plant,
LNG storage tanks in Dunkirk, the
Nîmes-Montpellier railway bypass and
the L2 Marseille bypass. From a commercial standpoint, a highlight of the
early part of the year was the booking
of an order, in a consortium with Vinci
and Demathieu Bard, for the viaduct
on the new coastal highway on Reunion Island, which on completion will be
France’s longest viaduct. An order was
also taken during the year for the
second tunnel package of the Line 14
metro extension in Paris.
Financial report 2014
started to face a tougher climate.
Nevertheless, France remained
Europe’s largest market, worth
around €200 billion.
Europe
The construction market in Europe
showed slight signs of recovery after
contracting in 2013.
In Western Europe, Bouygues
Construction subsidiaries are particularly active in the UK, where the
market is worth approx. €180 billion,
and in Switzerland (approx. €55 billion). The UK construction market benefited from the country’s gradual
return to growth, though budget pressures continued to crimp public-sector
investment. The construction market
in Switzerland remained firm, especially for housing, boosted by historically low interest rates.
Investment capacity in Central
Europe suffered from a decrease in
EU funding, a tightening of national
budgets and a Russian economy
which has stopped growing. Infrastructure needs are still considerable,
however, holding out bright prospects
for the medium term.
2014 sales: €2,112 million (+13%)*
Activity in the UK was sustained by
housing: Bouygues Construction
handed over three residential towers
in Southampton and continued work
on a residential complex in Chelmsford
(Essex) and a large-scale residential
and commercial complex in Lewisham
(south-east London). Bouygues
Construction also strengthened its
leading position in the UK student
accommodation segment, starting
work on the University of Hertfordshire
campus, the first such operation in
Europe to be financed by project
bonds.
Demand in Switzerland remained
strong, especially on the housing
market. Bouygues Construction drew
* Restated 2013 sales figure, comparable to 2014.
7
on its expertise in putting together
complex property development projects: the company handed over the
Eikenøtt eco-neighbourhood in Gland,
continued work on the Erlenmatt
(Basel) and Im Lenz (Lenzburg) econeighbourhoods, and took an order for
the Ankenbüel residential complex in
Zumikon. Bouygues Construction also
has acknowledged expertise in “multiproduct” projects including offices,
shops, housing and leisure facilities, as
illustrated by the complexes currently
under construction in Thun and Zurich
and the one handed over in Monthey.
The company continued to expand in
the German-speaking part of the country, building the Twist Again office
complex and offices for the Swiss post
office in Bern’s business district.
In Central Europe, Bouygues Construction
has acquired a number of well-established local firms in recent years, notably in Poland and the Czech Republic,
which continued to expand their building activities.
8
Elsewhere in Europe, Bouygues
Construction is also involved on a oneoff basis in major infrastructure projects such as the new confinement
shelter for the damaged nuclear reactor at Chernobyl in Ukraine, which is
being built in partnership with Vinci,
and Zagreb Airport in Croatia, the
order for which was booked in 2013.
Asia-Pacific
Financial report 2014
Construction markets in Asia are particularly dynamic, with growth rates
remaining high even though a slowdown in the Chinese economy has
had a knock-on effect on the entire
region. Bouygues Construction benefits from its position as a long-standing player in Hong Kong, though local
and foreign competition is intensifying. Strong economic growth in Thailand and Singapore is a stimulus for
all sectors, especially construction.
The Australian economy, long buoyed
by mining income, has found new
sources of growth in sectors such as
agrifood and tourism. Attractive possibilities also exist in some other
emerging regions, though the risk
factor is high.
2014 sales: €1,693 million (+8%)
Bouygues Construction has a strong
local presence in the Asia-Pacific
region, especially in Hong Kong, Singapore and Turkmenistan.
Civil works activity continued una-
bated in Hong Kong. Commercial highlights of the year included the award of
two major contracts: two tunnels for
the six-kilometre extension of the
Shatin to Central Link metro line, and
two 4.8-kilometre tunnels for the dualcarriageway road linking the northeast of Hong Kong to the border post
of Liantang in mainland China. Work
continued on several major projects,
including two sections of the rail
tunnel for the Hong Kong to Guangzhou high-speed rail link, a section of
the giant bridge linking Hong Kong,
Zhuhai and Macao, and the Tuen MunChek Lap Kok subsea road tunnel, the
order for which was booked in 2013.
Bouygues Construction is a recognised
player on the Asian building market,
especially for high-rise structures. In
Hong Kong, the company is building
the Trade & Industry Tower in the Kai
Tak district. A number of major residential complexes are under construction in Singapore and orders have
been taken for two new tower blocks
of condominiums. The company is
building three residential tower blocks
in a highly desirable Bangkok shopping
district as well as the MahaNakhon
tower which, on handover, will be the
city’s highest. It also took an order for
the new Australian Embassy complex in
the Thai capital. In Macao, Bouygues
Construction started work on a
39-storey, 6-star luxury hotel in the
heart of the City of Dreams entertainment complex.
In Singapore, Bouygues Construction
completed the giant Sports Hub complex, the world’s largest sports-related
PPP project. In Turkmenistan, two
major projects were handed over in
the capital Ashgabat: the Congress
Centre and the International University.
In Myanmar, Bouygues Construction
continued work on its first project in
the country, the second phase of the
Star City residential complex in Rangoon. In Australia, work continued on
the construction of a tunnel and new
railway lines in the west of Sydney.
Africa - Middle East
Economic growth remains fragile in
North Africa, which has been affected
by social and geopolitical tensions and
the resulting decline in tourist revenue, compounded by the ongoing troubles of the euro zone economies on
which North African countries depend
for much of their trade. Growth has
been strong in sub-Saharan Africa,
driven amongst other things by a mas-
sive influx of foreign capital. Oil-exporting Middle Eastern countries are
investing in major infrastructure projects, though the fall in the oil price
could cut their capital spending.
Overall, transport infrastructure needs
and the exploitation of natural
resources make this a high-potential
region for construction firms.
2014 sales: €904 million (+10%)*
In Africa, Bouygues Construction’s
building and civil engineering firms
work together on major infrastructure
projects. Three major projects were
handed over during the year: the
second container port in Tangier in
Morocco, a new section of Line 3 of
the Cairo metro in Egypt, and the
Riviera Marcory bridge in Abidjan
(Ivory Coast), one of the first concessions in West Africa.
The company’s expertise in earthworks
for opencast mining is illustrated in its
operation of gold mines at Kibali in the
Democratic Republic of Congo, Tongon
in Ivory Coast and Gounkoto in Mali.
Bouygues Construction is involved in
roadbuilding projects in several African
countries in response to considerable
demand. In Equatorial Guinea, the company is continuing to build and develop
the Bata seafront road. In Cameroon,
Bouygues Construction is finishing the
Figuil-Magada road and building the
Ngaoundéré-Garoua road. In Burkina
Faso, the company carried out work to
strengthen part of the RN1 highway linking Ouagadougou to the western part of
the country. In Gabon, the company is
renovating and upgrading the NdjoléMédoumane highway, a twisting, hillside
road. Work started on the Sarh-Kyabé
road in the south-east of Chad.
Orders were taken for two major
amenity projects: an extension of
Ridge Hospital, one of the largest hospitals in Accra, the capital of Ghana,
and the Jabi Lake Mall in Abuja, the
capital of Nigeria.
In the Middle East, Bouygues
Construction continued work on the
Qatar Petroleum District in Doha, a
vast complex that includes nine highrise office buildings.
Americas - Caribbean
The economic situation in the Americas is contrasted, differing very considerably from one country to
another. Bouygues Construction sub-
2014 sales: €447 million (+13%)*
The Americas/Caribbean region is growing strongly. Bouygues Construction has
a long-term presence in Cuba, where it
is a recognised specialist in the construction of turnkey luxury hotel complexes. The company continued
construction work on luxury hotel complexes on Laguna del Este on Cayo
Santa Maria, on Cayo Coco and at Varadero, and took an order for three hotels
on Cayo de Las Brujas, an unspoilt
island in the north-east of the country.
In the United States, the Miami port
tunnel, built within the framework of a
35-year public-private partnership, was
inaugurated. In the same city, Bouygues
Construction started work on the Brickell City Centre development.
In Canada, the company continued
work on a set of sporting facilities in
Ontario for the 2015 Pan American
Games and started work on Iqaluit
International Airport in the country’s
Arctic north.
The company also has a presence in
Latin America (particularly in Mexico,
Brazil, Peru and Chile) via its construction and specialised civil works
subsidiaries.
Energy and services
Bouygues Energies & Services contributed €1,677 million to Bouygues
Construction’s consolidated sales, 11%
more than in 2013 (€1,515 million).
Bouygues Energies & Services has
three business lines: network infrastructure, facilities management, and
electrical and HVAC engineering.
Demographic growth, spreading
urbanisation and increasingly scarce
raw materials mean that the energy
and environmental performance of
buildings is a central concern. Fastgrowing telecommunications needs
have also increased demand for network infrastructure. These two key
trends on the energy and services mar-
kets offer Bouygues Construction
sources of growth, both in the countries where it has most of its operations (France, the UK, Switzerland and
Canada) and in emerging countries,
especially in Africa.
In France, many large firms operate on
the market and competition is fierce.
Short-term economic uncertainties
remain due to pressure on central and
local government budgets, affecting
network infrastructure works in particular, and to the difficulty of raising
private finance, especially for commercial property projects and publicprivate partnerships.
France
2014 sales: €1,066 million (stable)
Bouygues Energies & Services,
through its network infrastructure
subsidiary, is a leading player in the
development of digital networks in
France and operates in 15 departments and four major urban areas,
representing 12,000 kilometres of
optical fibre serving 6.5 million
people. It started rolling out veryhigh-speed broadband networks in
the Oise department to the north of
Paris (first phase) and the Eure-et-Loir
department in western France, and
continued to develop and manage the
network in the Vaucluse department
in the south of France under a 25-year
contract awarded in 2011.
Bouygues Energies & Services continued
the public lighting contracts begun in
2011, especially the major energy performance contract with the City of Paris
that aims to achieve a 30% reduction in
the city’s energy consumption by 2020
in comparison with the level in 2004. It
continued a 20-year public lighting contract in Valenciennes, in northern
France, begun in 2012.
In electrical and HVAC engineering,
Bouygues Energies & Services started
the design-build contract for a thermal
power plant in the French part of the
Caribbean island of Saint-Martin and a
contract for mechanical and electrical
equipment for the L2 Marseille bypass.
It also took an order for electrical and
HVAC engineering for the offices of
Airbus Helicopters at Le Bourget,
north of Paris, and completed work on
the Amiens-Picardie hospital.
In partnership with Bouygues
Construction’s building subsidiaries,
Bouygues Energies & Services’ facili-
ties management subsidiary is
involved in a number of PPP contracts. It started a maintenance contract at the Paris Zoo and a contract
to maintain and operate the municipal authority complex in Bordeaux. It
will also provide maintenance and
operation services for the French Ministry of Defence, the Paris law courts
complex, five secondary schools in
the Loiret department in central
France, the University of Bordeaux
and the University of Burgundy.
Financial report 2014
sidiaries mainly have operations in
the United States, Canada and Cuba.
The economic upturn in the United
States and Canada, driven by shale
gas extraction and the resulting fall in
energy prices, has boosted the construction sector. Bouygues Construction
is expanding in the region, especially
through major facilities and infrastructure projects.
International
2014 sales: €611 million (+38%)
Bouygues Energies & Services is continuing to expand in its three main
lines of business in Europe (especially
in the UK and Switzerland), in Africa
(Gabon and Congo) and in North
America (Canada).
In September, Bouygues Energies &
Services acquired a majority shareholding in Plan Group, a Canadian
technical services provider (mechanical and electrical contracting, maintenance and technical services, building automation systems and network
infrastructure) which has most of its
operations in Ontario. One of Plan
Group’s major current projects is a
design-build contract for electrical
engineering and building automation
systems at the Humber River
Regional Hospital in north of Toronto.
On international markets, Bouygues
Energies & Services is an expert in
major turnkey power grid infrastructure projects. In Thailand, it started a
five-year contract to operate and
maintain three photovoltaic solar
power plants, built in partnership with
Bouygues Construction’s local construction subsidiary. In Mozambique,
Bouygues Energies & Services continued to build a high-voltage line for the
Brazilian mining firm Vale.
In electrical and HVAC engineering,
Bouygues Energies & Services is
involved in complex projects like
Total’s Djeno oil terminal in the Republic of the Congo, handed over in 2014,
and the extension of the Telecity data
centre in Manchester in the UK. In
Cameroon, the subsidiary is involved
in building and refurbishing high-voltage substations at a refinery in Limbé.
In Canada, Bouygues Energies &
Services provides facilities management (FM) for Surrey Hospital and the
* Restated 2013 sales figure, comparable to 2014.
9
RCMP headquarters. The subsidiary
has started hard and soft FM contracts
with the Alstom group covering its
facilities in the UK and Italy as well as in
France. It took orders FM contracts covering Crédit Suisse offices in Switzerland for five-year and King’s College in
London (UK). Both in France and internationally, FM contracts guarantee
Bouygues Energies & Services recurring long-term income.
Risk management policy
The risks facing Bouygues Construction
in 2014 were of the same kind as those
identified in previous years: operational
risks relating to major projects, country
risk, aggravated recession risk and
compliance risk.
Internal control
Evaluation of internal control
During 2014, Bouygues Construction
rolled out internal control self-assessment in depth across the organisational
structure, including a number of production departments and branch offices.
10
Overall, the campaign involved over 500
people in more than 100 entities or units,
representing approximately 2/3 of
Bouygues Construction sales. On average, each entity or unit evaluated around
100 principles from the risk management and internal control framework.
Ten common themes were addressed:
six covering general principles, and
four covering accounting and financial
principles. In addition to issues relating
to legal compliance and information
systems security, entities also performed self-assessments on human
resources and subcontracting.
Financial report 2014
The self-assessment campaign was conducted during the spring, with summary
reports presented in the autumn. The
data collected were used to compile findings about the effectiveness of internal
control within Bouygues Construction,
and to develop and implement action
plans with a view to constantly improving
the internal control system.
Each entity develops its own action
plan. At Bouygues Construction level,
managers of the support functions are
overseeing action plans for the
common themes:
– Legal compliance: actions taken in
this area form part of the broader roll-
out of the Bouygues group’s compliance programmes, especially in the
fields of anti-corruption, compliance
with competition law and the prevention of conflicts of interest. An e-learning module on these issues will be
rolled out in 2015.
– Information systems: the various
aspects of the information systems
security policy are currently being
rolled out, with a particular focus on
access controls, protection of sensitive
data, continuity of service and legal
compliance.
– Human resources: a range of initiatives are under way in this area,
especially in health and safety and
the security of staff working abroad.
In France, implementation of the
temporary staff management platform is nearing completion. Selfassessment is providing an opportunity
to share good practice in skills development and the quality of human
relations.
– Subcontracting: the key areas of
attention continue to be health and
safety, measures to combat illegal
employment practices, and the prevention of subcontractor default.
The 2014 campaign extended the rollout of the internal control systems to
front-line entities and units. By providing feedback and pooling their results,
those involved are helping internal
control to become a training, teambuilding and management tool.
Risk mapping
Risk mapping is now integrated into the
Bouygues Construction management
cycle as part of the strategic plan. It is
also submitted to the Accounts Committee and the Board of Directors.
This management process provides a
shared vision of major risks at both
entity and Group level, with the aim of
constantly improving control over
these risks. In addition, synergies
between risk management, internal
control and internal audit can add
value in terms of the organisation’s
control processes. The annual internal
audit plan includes a number of assignments which address the key risks
identified by the mapping process.
The risk mapping campaign is conducted in the spring. The work done at
entity level is supplemented by contributions from the support functions,
forming the basis for risk mapping
across the Group as a whole.
Key risk factsheets, which identify
action plans, are updated during the
campaign.
Resources deployed
The internal control rollout strategy
adopted by Bouygues Construction
reflects the Group’s decentralised
structure, and the decision to rely on
strong and highly-structured support
functions. The control environment
has been adapted accordingly:
• Role of the Bouygues Construction
holding company
Overall management of the internal
control system is handled by a dedicated team within the Legal Affairs,
Audit and Internal Control directorate.
The holding company plays the lead
role in the process, co-ordinates the
self-assessment campaigns, and provides methodological support to the
entities. It also prepares the Grouplevel summary report, monitors transverse action plans, and drafts
Group-level risk mapping.
• Role of the entities
Within the entities, internal control is
the responsibility of the General
Counsel. Each entity compiles its own
risk mapping, and presents it as part
of the strategic plan. Internal control
correspondents are responsible for
the rollout of self-assessment campaigns. Within each operational unit,
the General Counsel is responsible for
onward deployment.
• Role of the support functions
The support functions bind the process
together, building on the work done at
entity level. Managers of the support
functions and centres of excellence
are responsible for approving certain
principles; they also prepare a summary report, and monitor transverse
action plans. The support functions
also carry out their own risk mapping.
• Training and awareness programmes
Numerous training and awareness programmes form part of the campaign:
discussion forums and feedback meetings, committee meetings at support
function level, and reporting to the
Executive Committees. A co-ordinating committee for those responsible
for internal control at entity level, instituted in 2013, was made a permanent
feature in 2014.
The entities have specific resources in
both accounting and financial control.
Accounting teams may be centralised
or decentralised, depending on the
circumstances. Financial controllers
– present at every level of the organisation – work closely with operational
managers. Both functions operate on
the double reporting principle.
The financial control function is
headed up by the Financial Control
and Accounting Director, to whom the
Chief Accountant reports.
Both functions have a role in operating
the Group’s accounting and financial
information system, and in reducing
the leadtimes to publication of
accounting and financial information.
Key areas for review in the 2014 campaign were accounting information
system security and project management. Overall, the results of the
assessments point to good levels of
controls over these processes.
Operational risks
Risks associated with major
projects in the design or
execution phase
Major projects are a potential source of
risk for Bouygues Construction because
of their size and number. They frequently
involve complex packages (public-private partnerships, concessions, longterm contracts), which call for risks to be
allocated commensurately with the
capacities of the company. The 2014
order intake includes a number of largescale building and civil works contracts
in France and in other countries.
The types of risk inherent in major projects include:
– in the design phase: design flaws,
under-budgeting, poor assessment of
the local environment, inadequate
contractual analysis, etc.;
– in the execution phase: default by a
customer, partner or subcontractor,
difficulty in recruiting sufficient staff or
adequately qualified staff, and execution defects leading to cost overruns,
quality problems or failure to meet
deadlines, etc.
To achieve tighter control over these
two major risk areas, Bouygues
Construction has an organisational
structure that reflects the specific
requirements of each business,
backed up by rigorous approval and
control procedures.
Each entity has access to substantial,
highly-qualified resources in technical
fields such as design, costing, feasibility studies and methods. Clusters of
staff with extensive expertise in highly
specialised areas (tall buildings, materials engineering, facades and sustainable construction, for example)
share knowledge and capitalise on
experiences across all Bouygues
Construction entities.
Support functions are organised on
similar lines, with separate departments covering legal affairs, human
resources, accounting, management
control, information systems and
procurement, all headed up by members of the Bouygues Construction
management team. Specialist clusters dedicated to treasury management, financial engineering, tax and
insurance provide expertise to all
group entities.
Approval and control procedures
apply at each key stage in design and
execution. For major projects, project
selection and key risks are subject to
systematic monitoring.
Key operational risks are further mitigated by the fact that project execution teams are highly professional and
adequately staffed, and are actively
supervised by experienced managers.
Design and execution processes are
documented in management systems
at operational unit level, and are subject to measures designed to enhance
performance and control:
– particular attention is paid to the
pre-execution phase of major projects, especially in design, contract
drafting and site preparation;
– in the design phase, external consultants are used to back up in-house
expertise on technical issues for the
highest-risk projects;
– regular costing audits are performed on the reliability of procedures for expenses, subcontractor
budgets, and site supervision costs;
– support functions are always
involved upfront, especially in contract management and procurement;
– particular care is taken in the selection and monitoring of customers and
partners;
– the subcontracting process is
closely supervised, with major sub-
contractors and partners thoroughly
assessed before awarding highlysensitive work packages (such as
architectural and technical trades);
– risk monitoring is assisted by the
use of specifically-developed procedures and tools.
Financial report 2014
Accounting and
financial internal control
During 2014, particular emphasis was
placed on the monitoring of the
design phase of large-scale complex
projects, increased use of digital
tools, and protecting against subcontractor default risk.
Country risk
Bouygues Construction generates 51%
of its sales in France and 75% in OECD
countries.
Outside these areas, the risks to which
it is exposed are of two types: political/
social and economic/financial. Political
and social risks include those deriving
from governmental actions such as
embargoes, asset seizures or the
freezing of bank accounts, and from
general strikes or civil disturbances.
Economic and financial risks include
currency devaluation, currency shortages or payment default.
Bouygues Construction uses a variety
of means to limit these risks. Thorough investigations are conducted
before prospecting for business in a
new country. It is company policy to
suspend commercial activities in
regions with a particularly serious
political risk, and not to prospect for
business in the highest-risk countries
(in particular those experiencing serious civil or military unrest, or subject
to United Nations embargo). The
company also operates preventive
legal, financial and insurance measures. These include systematically
halting projects in the event of nonpayment, favouring the use of multilateral international financing, and
obtaining political risk insurance
whenever it is available on the market
on satisfactory financial terms.
The Quality, Security and Environment
(QSE) departments are becoming
increasingly involved in regular reviews
of the security situation in the countries
in which Bouygues Construction operates, in conjunction with the Bouygues
group security department.
Regularly-updated business continuity
plans are also in place. A key aim of
such plans is to safeguard people, in
11
particular by ensuring that guidelines
issued by French embassies in at-risk
countries are strictly followed, and by
liaising with the embassies to develop
evacuation plans for various alert
levels. In addition, flexible and responsive organisational structures mean
that in exceptional circumstances,
Bouygues Construction can withdraw
resources from countries where such
risks materialise while keeping its
losses to a minimum.
Particularly close attention is paid to
countries for which the French Foreign
Ministry has recommended vigilance
in relation to the risk of terrorist
attacks, especially in Saharan Africa.
Restrictions are placed on movements
in response to any warnings that may
be issued, and the company regularly
reminds employees of the rules
regarding vigilance.
Aggravated recession risk
12
In a generally uncertain economic climate, projections for world growth
have been revised downwards. The
infrastructure market is however likely
to expand in the medium term under
the impetus of demographic growth
and urbanisation, especially in the
Asia-Pacific region.
Even as recovery in the United States
is being confirmed, Europe is threatened with stagnation. Weak growth is
likely to lead to persistently high rates
of unemployment, while inflation is at
its lowest level for several years. On
the upside, falling oil prices and the
weaker euro are more positive factors. In addition, spending by the proposed European Fund for Strategic
Investments is expected to boost the
modernisation of public-sector infrastructure.
Financial report 2014
After contracting by over 2% in 2013,
the European construction market is
expected to have edged back into
positive territory with growth of 1% in
2014, rising to a forecast 2% in 2015.
The United Kingdom is set for robust
growth, but the Swiss market – where
Bouygues Construction does a high
volume of business – is forecast to be
flat at best in 2015.
In France growth is expected to remain
sluggish over the coming years, with
no tangible benefits yet being felt from
government measures such as the
CICE tax credit scheme and the
“responsibility pact”.
In the construction industry, 2014 is
expected to end with a contraction of
over 4% in the building sector. New
build has been hit hardest, both in
residential (with less than 300,000
new starts) and non-residential.
Improvement and maintenance
works, by contrast, have seen only a
slight fall. The civil works sector,
which is largely dependent on orders
from the public sector, has moved
into recession with sales shrinking by
close to 10%.
In 2015, the impact of measures to kickstart the building sector should take new
housing starts back over the 300,000
mark. On the downside, there could be
further contraction in non-residential,
while the improvement/maintenance
market is set for modest growth.
The civil works sector will be adversely
affected by cuts in government grants
to local authorities, although the
launch of the “Grand Paris” urban
development projects constitutes an
opportunity.
Against this backdrop, Bouygues
Construction has maintained or even
slightly improved its market positions,
thanks largely to the company’s focus on
large-scale high added value projects and
on high-growth countries and segments.
Although volumes are healthy, market
prices remain under pressure and
counterparty risk is on the rise, especially in terms of subcontractor default.
In addition to the risk of a sharp downturn in activity during the three year
plan, Bouygues Construction may
occasionally be faced with specific
problems connected with delays to or
the abandonment of projects, and difficulties in obtaining payment for
ongoing projects.
Nevertheless, the Group has many
strengths to help it resist and adapt to
the economic climate. A diverse business mix and broad geographical footprint mean that Bouygues
Construction is less exposed than a
mono-line or mono-region business.
In addition, Bouygues Construction is
exposed to a favourable business
environment in some countries or
sectors. This applies to those parts of
Asia where the company has a longstanding presence, in particular Hong
Kong where Bouygues Construction is
executing many large infrastructure
projects. The company is also
engaged in a geographical diversifica-
tion strategy, focusing on expansion
in buoyant markets (United States,
Canada, Australia) or in zones experiencing robust economic development
(Sub-Saharan Africa).
The healthy order backlog (excluding
long-term contracts), which represented 15.8 months of sales as of the
end of December 2014, gives excellent visibility. Bouygues Construction
analyses forecasts to anticipate
adverse trends, so that it can react
appropriately and reallocate production resources to less affected markets or activities.
Finally, Bouygues Construction
encourages job mobility between its
businesses and geographical areas
and the development of synergies
between group entities, so that it is
always well placed to anticipate, react
and adapt to changes in the economic
environment.
Commodities risk
Bouygues Construction is not exposed
to commodities risk.
Industrial and
environmental risks
Because of the nature of its business,
Bouygues Construction is not exposed
to significant industrial or environmental risk, and is not subject to regulations on classified sites or to REACH
(Registration, Evaluation, Authorisation and Restriction of Chemicals).
Legal risk
Compliance risk
In an environment where reputational
damage can spread fast and widely,
compliance breaches are a significant
risk for Bouygues Construction. In
addition, the poor economic climate
may increase the number of
approaches liable to have adverse
ethical implications.
As part of the company’s ethics
policy, 2015 will see the rollout of
compliance programmes and an
e-learning package.
Claims and litigation
• South Africa – Gautrain Project
This rail infrastructure project linking
South Africa’s principal airport to
Johannesburg and Pretoria came into
service on 8 June 2012. Although this
> Water seepage in the tunnel:
Although the water seepage does not
affect the line’s commercial operation, it has led to a dispute over the
interpretation of the technical specifications on the flow of water. This
dispute was referred for settlement to
the Arbitration Foundation of South
Africa (Afsa). On 23 November 2013,
the arbitration tribunal issued a ruling
which strictly interpreted the technical specifications for the water flow.
The ruling also requires the Works
Joint Venture to make good the loss
caused to the Province by this breach
of contract, and to perform works to
reduce the flow of water recorded.
The Works Joint Venture is continuing
technical negotiations to make the
tunnel conform with the arbitration
tribunal’s interpretation of the specification.
> Delay in providing the compulsory purchases required for the
works:
The Works Joint Venture takes the
view that the progress of the works
was seriously affected by the delay in
obtaining the compulsory purchases
required for their execution. This dispute has also been referred to the
AFSA for arbitration. An initial decision from the tribunal on the points of
law that will determine the direction
the dispute will take is expected in
mid-2015.
> Terms for constructing Sandton
station:
Gauteng Province and the Works
Joint Venture are also in dispute over
the terms for constructing the main
structure of Sandton station, which
has been referred to the AFSA for
arbitration. In an initial ruling dated 2
July 2012, the tribunal accepted the
co-contractors’ interpretation that the
technical modifications to the con-
struction of the structure were not
included in the fixed contract price,
and that the resulting cost overruns
should be paid by Gauteng Province.
As the parties had failed to agree on
the amount of these overruns, the
arbitration tribunal reconvened. In a
ruling dated 15 August 2013, the
arbitration tribunal rejected the valuation by the Works Joint Venture and
asked it to submit a valuation of cost
overruns, based on properly substantiated actual expenditure. The cocontractors prepared a new valuation
report, and submissions of the report
to the arbitration tribunal began
during the second half of 2014 and
are set to continue in 2015.
• France – Flamanville EPR
In January 2014, the Cherbourg District Court held a hearing at which
Bouygues Travaux Publics appeared
alongside two subcontractors from
the works consortium, following a
workplace accident in which a temporary agency worker was killed on site.
On 8 April 2014, the Cherbourg District Court ordered Bouygues Travaux
Publics and the sub-contractor to pay
a fine of €75,000 and damages totalling €311,000. Bouygues Travaux
Publics appealed this ruling. A hearing was held on 3 December 2014
and a ruling is expected in March
2015. A preliminary investigation was
carried out into potential offences of
improper subcontracting and illegal
labour. Following this investigation,
Bouygues Travaux Publics and Quille
Construction were summonsed to
appear before Cherbourg District
Court in March 2015. In addition, an
action brought by employees of a
temporary employment agency alleging loss for being employed under
illegal labour and improper subcontracting terms, was dismissed against
Bouygues Travaux Publics by the
Cherbourg Employment Tribunal on
12 February 2014. This ruling has
been appealed.
• France – Île-De-France Regional
Authority Contracts
Following a Competition Council (now
the Competition Authority) ruling of
9 May 2007, the Île-de-France
Regional Authority filed a compensation claim in 2008 for losses it claims
to have incurred as a result of the anticompetitive practices by construction
companies in connection with the
awarding of public works contracts for
the renovation of secondary school
buildings in the region. The Regional
Authority’s urgent summary application to the Paris District Court was
rejected in a ruling issued on 15 January 2009 on the ground that, prima
facie, there were serious reasons for
objecting in principle to the compensation claim. The Regional Authority
filed a further application to the Paris
District Court in February 2010, this
time claiming damages for a loss estimated at €358,000,000 based on the
joint and several liability of the parties
collectively responsible for the loss,
i.e. the companies and individuals
found to have engaged in anti-competitive practices. In a ruling of 17
December 2013, the Paris District
Court ruled the Regional Authority’s
claim inadmissible. The Authority
appealed this decision on 22 January
2014. The Prefect of the Île-de-France
region has, for his part, filed an application for the Court of Appeal to disclaim jurisdiction in favour of the
administrative courts.
• France – EOLE
Following a Competition Council (now
Competition Authority) ruling of
21 March 2006, imposing penalties on a
number of companies for general collusion in sharing contracts and specific
collusion on tranches 34B and 37B of
the East-West Express Rail Link (EOLE)
project, on 21 March 2011 SNCF
brought an action in damages before the
Paris Administrative Court seeking relief
for losses that it claims to have suffered
as a result of anti-competitive practices
by construction companies when the
project tranches were awarded.
Bouygues Construction is challenging
the reality of the alleged loss claimed by
SNCF, and considers the action to be
inadmissible and potentially time-barred.
• Spain – Decision by the CNC of
2 August 2012
This decision by the Comisión Nacional
de la Competencia, the Spanish competition commission, established the existence of anti-competitive practices over
several years involving a number of companies from the FCC, VSLI, Dywidag,
Freyssinet, Acciona, Ferrovial groups and
other groups. As regards the subsidiaries
of the Bouygues Construction group, the
CNC imposed a fine of €2.4 million on
CTT Stronghold and a fine of €0.4 million
on VSL Spain. Both companies appealed
these decisions, and the Court of Appeal
reduced the fine against CTT Stronghold.
The CNC has appealed this ruling to the
Supreme Court. A hearing date has not
yet been fixed.
Financial report 2014
rail link has been a striking commercial success, a number of difficulties
remain between Gauteng Province
and Bombela Ltd, the concession
company holding the contract, in
which Bouygues Travaux Publics
owns a 17% equity stake. These difficulties are mainly of a technical
nature, and relate to the execution of
the works contract entered into
between Bombela Ltd on the one
hand, and a joint venture (the “Works
Joint Venture”), held equally by
Bouygues Travaux Publics and Murray
& Roberts, a major South African construction company.
13
• France – Paris Law Courts Complex
The contract enabling work to start on the
major project to build the new Paris Law
Courts complex was signed on 15 February 2012. All the claims by “Justice dans
la Cité”, a not-for-profit organisation
whose aim is to use all possible means to
prevent the Paris District Court being relocated to the Batignolles district of the
17th arrondissement of Paris, have been
dismissed, including the appeal to the
Conseil d’État (Supreme Administrative
Court). The contracts relating to this project are therefore not open to appeal.
• France – The new Amiens hospital
complex
Bouygues Bâtiment Ile-de-France is in
dispute with one of its subcontractors
responsible for the plumbing and controlled mechanical ventilation packages of
this project. A legal expert is currently
investigating and an arbitration process
has been filed by Bouygues Bâtiment Ilede-France in order to claim damages in
respect of the losses incurred.
Insurance – risk coverage
14
Bouygues Construction’s policy on
insurance cover focuses on optimising and ensuring the continuing validity of the policies contracted for the
company and its subsidiaries; the aim
is to protect against exceptionally
large or numerous potential claims at
a cost that does not impair the company’s competitiveness.
Financial report 2014
This long-term approach to insurance
cover requires partnerships with highquality insurers with excellent financial
solidity. To preserve these partnerships
and prevent information being used to
the detriment of Bouygues Construction,
especially in legal disputes, the amount
of premiums and the terms of cover are
kept strictly confidential, especially in
liability insurance.
In addition to insurance policies required
by law, Bouygues Construction also takes
out liability cover against loss or injury to
third parties for which Group companies
may be liable. Because Group companies
vary greatly in size and in the nature of
their operations, cover is tailored to the
risks incurred, but is generally in excess of
€5 million per claim.
Permanent premises (like the headquarters building, branch offices,
depots and workshops) are protected
by comprehensive insurance policies
that provide cover up to a contractual
rebuild cost agreed with the insurers
on a maximum probable loss basis.
Projects in progress are usually covered by contractors’ comprehensive
insurance policies that provide protection for property damage. The insured
sum is generally the market value.
However, in some cases, the insured
sum may be limited by the total capacity
available in the world insurance market,
in light of specific criteria such as geographical location, the type of project
(e.g. tunnels), the risk covered (e.g.
cyclones or earthquakes), or the nature
of the cover (e.g. ten-year construction
guarantees for major building projects).
For all these contracts, deductibles are
set so as to optimise the overall cost to
Bouygues Construction, based on the
likelihood of claims and the premium
reductions that can be obtained from
insurers by increasing the deductible.
The refurbishment works being carried
out at the Challenger building near Paris
are covered by specific Damage to the
Works and Contractors’ All Risks policies.
Finally, Bouygues Construction and
its subsidiaries operate a prevent and
protect policy, including the development of new measures to further
reduce the incidence and financial
effect of accidents and claims.
Credit and/or
counterparty risk
Commercial credit
and counterparty risk
The fact that our projects and operational units are structurally cash-positive is a fundamental principle
underpinning the financial security of
our operations. Cash flow and financial
risk projections are prepared for major
projects from the prospecting phase
onwards, and are regularly updated.
The quality and financial soundness of
sensitive customers, consortium members, partners, suppliers and subcontractors is closely analysed.
Depending on the contractual and commercial context of a project, we may:
– require an upfront advance from the
customer before works commence;
– require the customer to provide bank
guarantees against payments;
– assign trade receivables without
recourse;
– take out export risk insurance (covering against country risk and political risk);
– take out credit insurance.
The Bouygues Construction group is
not exposed to any risk of dependency
with a specific customer.
Subcontractors provide the lead contractor with bank guarantees of a
nature and scope at least equivalent to
those of the guarantees provided by
the Group to its customers.
In the case of ad-hoc consortia, temporary
allocations of cash between consortium
members are covered by bank guarantees
securing the return of the cash.
Banking credit and
counterparty risk
Any investment of funds with a third
party requires the prior approval of the
Treasury Department, in terms of both
the choice of bank counterparty
(based on an analysis of the bank’s
rating) and the type of instrument.
The main investment products used are:
– certificates of deposit and term deposits with a maturity of no more than 6
months with high-grade counterparties;
– term accounts with high-grade
banks offering daily liquidity;
– pure money-market funds offering
daily liquidity.
These investments are subject to review
and monitoring on a monthly basis.
No losses arose during 2014 on any of the
investment products used by the Group.
As of 31 December 2014, no single bank
held more than 10% of the Group’s available liquidity. Over 90% of investments
are placed with counterparties rated
investment grade or better (minimum:
Standard & Poors BBB+).
Liquidity risk
As of 31 December 2014, net cash
amounted to €3,449 million, and the
Group also had €74 million of undrawn
confirmed medium-term credit facilities
on that date. Consequently, Bouygues
Construction is not exposed to liquidity
risk. The bank loans contracted by the
Group contain no financial covenants
or trigger event clauses.
Interest rate risk
Exposure to interest rate risk
Interest rate risk exposure arises on variable-rate debt recognised in the balance
sheet, and is hedged by variable-rate
investments. Bouygues Construction systematically negotiates upfront payments
with customers before starting work on a
Interest rate risk
hedging policy
for those responsible for the management and supervision of the relevant
Group companies describing the use of
these instruments, the selection of counterparties with whom they are contracted,
and more generally, the management of
exposure to currency risk.
The only instruments that can be used for
interest rate risk hedging purposes are
interest rate swaps, caps and collars.
These instruments are used solely for
hedging purposes, are contracted solely
with high-grade French and foreign banks,
and carry no liquidity risk in the event of a
downturn. Specific reports are prepared
for those responsible for the management and supervision of the relevant
Group companies describing the use of
these instruments, the selection of counterparties with whom they are contracted,
and more generally, the management of
exposure to interest rate risk.
Bouygues Construction group policy is to
hedge systematically all residual exposure
to currency risk on commercial transactions relative to the functional currency of
a project or entity. If the future cash flow
is certain, the currency risk is hedged by
buying or selling currency forward, or by
means of currency swaps. For some large
contracts, options may be taken out for
hedging purposes before the contract
award has been confirmed. Equity investments in foreign companies are usually
hedged by a liability of a similar amount in
the same currency in the books of the
entity that holds the investment.
Bouygues Construction’s policy is to
hedge at Group level some or all of its
financial assets and liabilities, where these
are foreseeable and recurring. Given the
Group’s level of debt and capital expenditure needs, use of the financial instruments listed above is limited to hedging
the company’s risk exposures.
Risk relating to equities
and other financial
instruments
Currency risk
Exposure to currency risk
Bouygues Construction has low exposure to currency risk in routine commercial transactions. Where possible,
expenses relating to a contract are
incurred in the same currency as that
in which the contract is billed.
This applies to most construction projects executed outside France, on
which local-currency expenses (subcontracting and supplies) represent a
much higher proportion than eurodenominated expenses. Bouygues
Construction also pays particular
attention to risks relating to assets
denominated in non-convertible currencies, and to country risk generally.
Social and
environmental
responsibility
As part of the sustainable development
policy introduced in 2007, Bouygues
Construction reports annually on the
impact of its operations, working with
each of its stakeholders to achieve
shared progress.
For an overview of the Group extrafinancial performance, you can consult
the response to Article 225 of the
Grenelle 2 law, along with our Corporate
Report, on our website: www.bouyguesconstruction.com.
Bouygues Construction has no exposure to equities risk.
Financial instruments may occasionally
be contracted to hedge a commodities
risk, provided that an adequate instrument is available on the financial markets. These instruments are used solely
for hedging purposes and are contracted solely with high-grade banks.
Pursuant to Articles L. 441-6-1 and D.
441-4 of the French Commercial Code,
the schedule below shows the ageing
of trade payables by maturity band:
TRADe
PAyABLES
(€ ‘000,
iNCl. VAT)
< 30
DayS
30
tO 60
DayS
> 60
DayS
tOtal
527 19,350
552
20,430
31/12/2013 2,532 8,333
3,140
14,006
31/12/2014
Currency risk
hedging policy
The only instruments that can be used for
currency risk hedging purposes are forward currency purchases and sales, currency swaps and currency options. These
instruments are used solely for hedging
purposes, are contracted solely with highgrade French and foreign banks, and
carry no liquidity risk in the event of a
downturn. Specific reports are prepared
– 31/12/2014: €29,536k
– 31/12/2013: €28,282k.
Financial report 2014
contract, and hence has a substantial net
cash surplus which is invested in the short
term in products that are sensitive to
interest rate movements.
Because the company usually opts for
payment 45 days after the end of the
invoice month, the actual time to payment varies between 45 and 75 days,
depending on the invoice date.
The total amount of trade payables,
including outstanding invoices and
accrued expenses, is as follows:
15
Consolidated financial
statements
CONSOLIDATED BALANCE SHEET (€ million)
ASSETS
PrOPErTy, PLANT AND EquIPmENT
INTANgIBLE ASSETS
gOODwILL
INvESTmENTS IN jOINT vENTurES AND ASSOCIATES
OTHEr NON-CurrENT FINANCIAL ASSETS
DEFErrED TAx ASSETS AND NON-CurrENT TAx rECEIvABLE
31/12/2014
NET
NOTES
3 AND 16
3 AND 16
3 AND 16
3 AND 16
3
7
NON-CUrrENT aSSETS
INvENTOrIES
ADvANCES AND DOwN-PAymENTS mADE ON OrDErS
TrADE rECEIvABLES
TAx ASSET (rECEIvABLE)
16
OTHEr CurrENT rECEIvABLES AND PrEPAID ExPENSES
CASH AND CASH EquIvALENTS
FINANCIAL INSTrumENTS - HEDgINg OF DEBT
OTHEr CurrENT FINANCIAL ASSETS
CUrrENT aSSETS
HELD-FOr-SALE ASSETS AND OPErATIONS
TOTaL aSSETS
4
22
Financial report 2014
(1) The financial statements for the year ended 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
684
51
528
75
239
108
1,685
315
154
2,832
55
852
3,908
−
5
8,121
−
9,806
31/12/2013
NET
rESTaTEd (1)
620
50
483
75
303
93
1,624
337
160
2,543
37
725
3,811
−
12
7,625
−
9,249
Financial report 2014
LIABILITIES AND SHArEHOLDErS’ EquITy
NOTES
31/12/2014
SHArE CAPITAL
SHArE PrEmIum AND rESErvES
TrANSLATION rESErvE
TrEASury SHArES
CONSOLIDATED NET PrOFIT/(LOSS)
SHarEHOLdErS' EQUITY aTTrIBUTaBLE TO THE GrOUP
5
NON-CONTrOLLINg INTErESTS
SHarEHOLdErS' EQUITY
NON-CurrENT DEBT
NON-CurrENT PrOvISIONS
DEFErrED TAx LIABILITIES AND NON-CurrENT TAx LIABILITIES
8 AND 16
6 AND 16
7
NON-CUrrENT LIaBILITIES
ADvANCES AND DOwN-PAymENTS rECEIvED ON OrDErS
CurrENT DEBT
8
CurrENT TAxES PAyABLE
TrADE PAyABLES
CurrENT PrOvISIONS
6
OTHEr CurrENT LIABILITIES
OvErDrAFTS AND SHOrT-TErm BANk BOrrOwINgS
FINANCIAL INSTrumENTS - HEDgINg OF DEBT
OTHEr CurrENT FINANCIAL LIABILITIES
CUrrENT LIaBILITIES
LIABILITIES rELATED TO HELD-FOr-SALE OPErATIONS
TOTaL LIaBILITIES aNd SHarEHOLdErS' EQUITY
NET SurPLuS CASH/(NET DEBT)
10
22
9
(1) The financial statements for the year ended 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
128
393
54
−
254
829
12
841
539
862
29
1,430
535
10
65
2,888
599
2,945
459
−
34
7,535
−
9,806
2,900
31/12/2013
rESTaTEd (1)
128
434
63
−
277
902
12
914
458
888
29
1,375
687
10
64
2,799
427
2,634
337
−
2
6,960
−
9,249
3,006
17
CONSOLIDATED INCOmE STATEmENT (€ million)
FULL YEar
2014
NOTES
SaLES (2)
11 AND 16
OTHEr rEvENuES FrOm OPErATIONS
PurCHASES uSED IN PrODuCTION
PErSONNEL COSTS
ExTErNAL CHArgES
TAxES OTHEr THAN INCOmE TAx
NET DEPrECIATION AND AmOrTISATION ExPENSE
NET CHArgES TO PrOvISIONS AND ImPAIrmENT LOSSES
CHANgES IN PrODuCTION AND PrOPErTy DEvELOPmENT INvENTOrIES
OTHEr INCOmE FrOm OPErATIONS (3)
OTHEr ExPENSES ON OPErATIONS
CUrrENT OPEraTING PrOFIT/(LOSS)
12 AND 16
OTHEr OPErATINg INCOmE
OTHEr OPErATINg ExPENSES
OPEraTING PrOFIT/(LOSS)
12 AND 16
FINANCIAL INCOmE
FINANCIAL ExPENSES
INCOME FrOM NET SUrPLUS CaSH
OTHEr FINANCIAL INCOmE
OTHEr FINANCIAL ExPENSES
INCOmE TAx ExPENSE
18
SHArE OF PrOFITS/(LOSSES) FrOm INvESTmENTS IN jOINT vENTurES AND ASSOCIATES
NET PrOFIT/(LOSS) FrOM CONTINUING OPEraTIONS
NET PrOFIT/(LOSS) FrOm DISCONTINuED AND HELD-FOr-SALE OPErATIONS
NET PrOFIT/(LOSS)
NET PrOFIT/(LOSS) aTTrIBUTaBLE TO THE GrOUP
NET PrOFIT/(LOSS) ATTrIBuTABLE TO NON-CONTrOLLINg INTErESTS
BaSIC EarNINGS PEr SHarE FrOM CONTINUING OPEraTIONS (€)
dILUTEd EarNINGS PEr SHarE FrOM CONTINUING OPEraTIONS (€)
13 AND 16
13 AND 16
13 AND 16
14 AND 16
3 AND 16
16
22
16
16
15
15
Financial report 2014
(1) The financial statements for the year ended 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
(2) Of which sales generated abroad.
(3) Of which reversals of unutilised provisions/impairment losses.
FULL YEar
2013
rESTaTEd
(1)
11,726
106
(6,868)
(2,593)
(1,637)
(157)
(181)
(350)
3
430
(144)
335
−
−
335
32
(17)
15
44
(23)
(124)
6
253
−
253
254
(1)
148.87
148.87
11,101
95
(6,351)
(2,515)
(1,561)
(174)
(192)
(265)
7
414
(122)
437
−
−
437
34
(14)
20
39
(43)
(162)
(13)
278
−
278
277
1
162.35
162.35
5,767
237
5,096
224
FULL YEar
2014
NET PrOFIT/(LOSS)
FULL YEar
2013
rESTaTEd
Financial report 2014
CONSOLIDATED STATEmENT OF rECOgNISED INCOmE AND ExPENSE (€ million)
(1)
253
278
(15)
−
3
−
(5)
−
−
−
ITEMS NOT rECLaSSIFIaBLE TO PrOFIT Or LOSS
ACTuArIAL gAINS/LOSSES ON EmPLOyEE BENEFITS
CHANgE IN rEmEASurEmENT rESErvE
NET TAx EFFECT OF ITEmS NOT rECLASSIFIABLE TO PrOFIT Or LOSS
SHArE OF NON-rECLASSIFIABLE INCOmE AND ExPENSE OF jOINT vENTurES AND ASSOCIATES
ITEMS rECLaSSIFIaBLE TO PrOFIT Or LOSS
(8)
59
NET CHANgE IN FAIr vALuE OF FINANCIAL INSTrumENTS uSED FOr HEDgINg PurPOSES AND
OF OTHEr FINANCIAL ASSETS (INCLuDINg AvAILABLE-FOr-SALE FINANCIAL ASSETS)
(29)
10
NET TAx EFFECT OF ITEmS rECLASSIFIABLE TO PrOFIT Or LOSS
−
−
(49)
204
203
1
−
15
79
357
356
1
CHANgE IN CumuLATIvE TrANSLATION ADjuSTmENT OF CONTrOLLED ENTITIES
SHArE OF rECLASSIFIABLE INCOmE AND ExPENSE OF jOINT vENTurES AND ASSOCIATES
INCOME aNd EXPENSE rECOGNISEd dIrECTLY IN EQUITY
TOTaL rECOGNISEd INCOME aNd EXPENSE
rECOgNISED INCOmE AND ExPENSE ATTrIBuTABLE TO THE grOuP
rECOgNISED INCOmE AND ExPENSE ATTrIBuTABLE TO NON-CONTrOLLINg INTErESTS
(1) The financial statements for the year ended 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
19
CONSOLIDATED STATEmENT OF CHANgES IN SHArEHOLDErS’ EquITy (€ million)
Share
capital &
share
premium
rESTaTEd POSITION aT
31 dECEMBEr 2012 (1)
reserves Consolidated
related to reserves and
capital/ profit/(loss)
retained
earnings
Treasury
shares
Items
recognised
directly in
equity
TOTaL
aTTrIBUTaBLE
TO THE GrOUP
Noncontrolling
interests
TOTaL
143
313
404
−
(46)
814
10
824
CAPITAL AND rESErvES
TrANSACTIONS, NET
−
(57)
57
−
−
−
−
−
ACquISITIONS/DISPOSALS OF
TrEASury SHArES
−
−
−
−
−
−
−
−
ACquISITIONS/DISPOSALS wITHOuT
LOSS OF CONTrOL
−
−
−
−
−
−
−
−
DIvIDEND PAID
−
−
(267)
−
−
(267)
(1)
(268)
OTHEr TrANSACTIONS wITH
SHArEHOLDErS
−
−
(1)
−
−
(1)
2
1
NET PrOFIT/(LOSS)
TrANSLATION ADjuSTmENT
−
−
−
−
277
−
−
−
−
58
277
58
1
−
278
58
OTHEr rECOgNISED INCOmE
AND ExPENSE
−
−
−
−
21
21
−
21
TOTaL rECOGNISEd INCOME
aNd EXPENSE (3)
−
−
277
−
79
356
1
357
OTHEr TrANSACTIONS (changes in
scope of consolidation and other items)
−
−
−
−
−
−
−
−
143
256
470
−
33
902
12
914
CAPITAL AND rESErvES
TrANSACTIONS, NET
−
(10)
10
−
−
−
−
−
ACquISITIONS/DISPOSALS OF
TrEASury SHArES
−
−
−
−
−
−
−
−
ACquISITIONS/DISPOSALS wITHOuT
LOSS OF CONTrOL
−
−
−
−
−
−
−
−
DIvIDEND PAID
−
−
(276)
−
−
(276)
(1)
(277)
OTHEr TrANSACTIONS wITH
SHArEHOLDErS
−
−
−
−
−
−
−
−
NET PrOFIT/(LOSS)
TrANSLATION ADjuSTmENT
−
−
−
−
254
−
−
−
−
(9)(2)
254
(9)
(1)
2
253
(7)
OTHEr rECOgNISED INCOmE AND
ExPENSE
−
−
−
−
(42)
(42)
−
(42)
TOTaL rECOGNISEd INCOME aNd
EXPENSE (3)
−
−
254
−
(51)
203
1
204
OTHEr TrANSACTIONS (changes in
scope of consolidation and other items)
−
−
−
−
−
−
−
−
143
246
458
−
(18)
829
12
841
MOvEMENTS dUrING 2013
20
rESTaTEd POSITION
aT 31 dECEMBEr 2013 (1)
MOvEMENTS dUrING 2014
POSITION aT 31 dECEMBEr 2014
(1) The financial statements for the years ended 31 December 2012 and 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
(2) Change in translation reserve:
Financial report 2014
Group
Controlled entities
Joint ventures and associates
(3) See statement of recognised income and expense.
(10)
1
(9)
Non-controlling
interests
2
2
Total
(8)
1
(7)
CASH FLOw FrOm CONTINuINg OPErATIONS
FULL YEar
2013
rESTaTEd
FULL YEar
2014
NOTES
(1)
a - NET CaSH GENEraTEd BY/(USEd IN) OPEraTING aCTIvITIES
NET PrOFIT/(LOSS) FrOm CONTINuINg OPErATIONS
SHArE OF PrOFITS/(LOSSES) EFFECTIvELy rEvErTINg TO jOINT vENTurES AND ASSOCIATES
ELImINATION OF DIvIDENDS (non-consolidated companies)
253
10
(8)
278
21
(13)
CHArgES TO/(rEvErSALS OF) DEPrECIATION, AmOrTISATION, ImPAIrmENT & NON-CurrENT
PrOvISIONS
142
217
(30)
4
371
(15)
124
480
(156)
(89)
235
(13)
−
490
(20)
162
632
(152)
(100)
380
(240)
68
−
(1)
9
(6)
(192)
33
6
(2)
1
−
(92)
−
5
−
1
(2)
55
(11)
gAINS AND LOSSES ON ASSET DISPOSALS
mISCELLANEOuS NON-CASH CHArgES
SUB-TOTaL
INCOmE FrOm NET SurPLuS CASH
INCOmE TAx ExPENSE
CaSH FLOw
INCOmE TAxES PAID
CHANgES IN wOrkINg CAPITAL rELATED TO OPErATINg ACTIvITIES (2)
NET CaSH GENEraTEd BY/(USEd IN) OPEraTING aCTIvITIES
B - NET CaSH GENEraTEd BY/(USEd IN) INvESTING aCTIvITIES
PurCHASE PrICE OF PrOPErTy, PLANT AND EquIPmENT AND INTANgIBLE ASSETS
PrOCEEDS FrOm DISPOSALS OF PrOPErTy, PLANT AND EquIPmENT AND INTANgIBLE ASSETS
NET LIABILITIES rELATED TO PrOPErTy, PLANT AND EquIPmENT AND INTANgIBLE ASSETS
PurCHASE PrICE OF NON-CONSOLIDATED COmPANIES AND OTHEr INvESTmENTS
PrOCEEDS FrOm DISPOSALS OF NON-CONSOLIDATED COmPANIES AND OTHEr INvESTmENTS
NET LIABILITIES rELATED TO NON-CONSOLIDATED COmPANIES AND OTHEr INvESTmENTS
EFFECTS OF CHaNGES IN SCOPE OF CONSOLIdaTION
PurCHASE PrICE OF INvESTmENTS IN CONSOLIDATED ACTIvITIES
PrOCEEDS FrOm DISPOSALS OF INvESTmENTS IN CONSOLIDATED ACTIvITIES
NET LIABILITIES rELATED TO CONSOLIDATED ACTIvITIES
16
16
16
21
16
OTHEr EFFECTS OF CHANgES IN SCOPE OF CONSOLIDATION
(cash of acquired and divested companies)
OTHEr CASH FLOwS rELATED TO INvESTINg ACTIvITIES
(changes in loans, dividends received from non-consolidated companies)
NET CaSH GENEraTEd BY/(USEd IN) INvESTING aCTIvITIES
C - NET CaSH GENEraTEd BY/(USEd IN) FINaNCING aCTIvITIES
CAPITAL INCrEASES/(rEDuCTIONS) PAID By SHArEHOLDErS & NON-CONTrOLLINg INTErESTS
AND OTHEr TrANSACTIONS BETwEEN SHArEHOLDErS
dIvIdENdS PaId
DIvIDENDS PAID TO SHArEHOLDErS OF THE PArENT COmPANy
DIvIDENDS PAID TO NON-CONTrOLLINg INTErESTS IN CONSOLIDATED COmPANIES
CHANgE IN CurrENT AND NON-CurrENT DEBT
INCOmE FrOm NET SurPLuS CASH
OTHEr CASH FLOwS rELATED TO FINANCINg ACTIvITIES
NET CaSH GENEraTEd BY/(USEd IN) FINaNCING aCTIvITIES
d - EFFECT OF FOrEIGN EXCHaNGE FLUCTUaTIONS
CHaNGE IN NET CaSH POSITION (A + B + C + D)
NET CaSH POSITION aT STarT OF PErIOd
NET CASH FLOwS
OTHEr NON-mONETAry FLOwS
NET CaSH POSITION aT ENd OF PErIOd
CASH FLOwS FrOm DISCONTINuED AND HELD-FOr-SALE OPErATIONS
NET CaSH POSITION aT STarT OF PErIOd
NET CASH FLOwS
NET CaSH POSITION aT ENd OF PErIOd
4 AND 10
4 AND 10
Financial report 2014
CONSOLIDATED CASH FLOw STATEmENT (€ million)
36
(21)
(166)
(187)
−
−
(276)
(1)
74
15
−
(188)
102
(17)
3,474
(17)
(8)
3,449
(267)
(1)
(18)
20
−
(266)
(60)
(133)
3,607
(133)
−
3,474
−
−
−
−
−
−
22
(1) The financial statements for the year ended 31 December 2013 have been restated to reflect the first-time application of IFRS 10 and IFRS 11.
(2) Definition of change in working capital related to operating activities: Current assets minus current liabilities (excluding income taxes paid, which are reported separately).
21
Notes to the consolidated
financial statements
Note 1
Significant events
Significant events of the year
Bouygues Energies & Services acquired
a majority shareholding in Plan Group, a
Canadian electrical and mechanical engineering company based mainly in Ontario.
On the transaction closing date, Bouygues
Energies & Services acquired 85% of the
shares of Plan Group. The current management team will remain unchanged and
will retain a 15% shareholding, which will
be subject to a buyout within the three
years following the transaction closing
date.
In preparing the consolidated financial
statements for the year ended 31
December 2014, the opening balance
sheets as of the end of August 2014 (the
date on which control was obtained)
were used.
Fair value analyses of the acquired assets
and assumed liabilities were performed.
Based on those analyses, the following
items were in particular recognised:
– a goodwill of CAD 50 million. Bouygues
Construction elected to use the full goodwill method, i.e. including an estimate of
the fair value attributable to non-controlling interests;
– a liability of CAD 24 million for the
obligation to buy out the non-controlling
interests.
Significant events and changes in
scope of consolidation since 31
December 2014
There have been no significant events
since 31 December 2014.
22
Note 2
Group accounting policies
The consolidated financial statements
of the Bouygues Construction group for
the year ended 31 December 2014
have been prepared in accordance with
International Financial Reporting Standards (IFRS) as endorsed by the European Union (European Council
Regulation 1606/2002 of 19 July 2002).
Financial report 2014
The term “IFRS” refers collectively to
International Financial Reporting Standards (IFRSs), to International Accounting
Standards (IASs), and to interpretations
of those standards (SICs and IFRICs).
The Bouygues Construction group
applied the same standards, interpretations and accounting policies for the
year ended 31 December 2014 as
were applied in its consolidated financial statements for the year ended 31
December 2013, except for changes
required to meet new IFRS requirements applicable from 1 January 2014
(see below).
• Principal new standards,
amendments and interpretations
effective within the European
Union and mandatorily applicable
or permitted for early adoption for
periods with effect from 1 January 2014:
IFRS 10: Consolidated Financial
Statements, IFRS 11: Joint Arrangements, IFRS 12: Disclosures of Interests in Other Entities, IAS 27:
Separate Financial Statements (as
amended in 2011), IAS 28: Investments in Associates and Joint Ventures
(as amended in 2011): These standards were endorsed by the European
Union on 29 December 2012 and are
mandatorily applicable from 1 January
2014. The principal changes and estimated impacts of these standards are
described below.
IFRS 10 replaces those parts of IAS
27, “Consolidated and Separate Financial Statements” that dealt with consolidated financial statements and SIC
12, “Consolidation – Special Purpose
Entities”, and redefines the concept of
control over an entity.
IFRS 11 replaces IAS 31, “Interests in
Joint Ventures” and SIC 13 “Jointly
Controlled Entities – Non-Monetary
Contributions by Venturers”, and
describes how joint arrangements
should be treated.
Under this new standard, joint arrangements over which two or more parties
exercise joint control are accounted
for on the basis of the rights and obligations of each of the parties to the
arrangement, taking account of factors
such as the structure and legal form
of the arrangement, the contractual
terms agreed to by the parties to the
arrangement and, when relevant,
other facts and circumstances:
– Joint ventures, which give the parties rights over the net assets, are
accounted for using the equity
method, the proportionate consolidation method being no longer permitted;
– In the case of joint operations,
which give each party direct rights
over the assets and obligations for the
liabilities, the assets and liabilities
(income and expenses) of the joint
The joint ventures affected by the firsttime application of these new standards
are mainly those relating to contracting
companies held jointly by Bouygues
Construction and a partner, which have
been accounted for by the equity
method from 1 January 2014. The
impact of the retrospective application
of these standards as of 1 january 2013
and for the year ended 31 December
2013 is presented in Note 26 to the
consolidated financial statements.
A number of difficulties relating to the
application of IFRS 11 have been
referred to the IFRS Interpretations
Committee. The Group will take
account of any future clarifications in
its consolidated financial statements.
IFRS 12 establishes the disclosure
requirements relating to interests held
in subsidiaries, joint arrangements,
associates, and/or unconsolidated
structured entities.
IFRIC 21, “Levies”
This interpretation was endorsed by the
European Union on 13 June 2014, and
was not early adopted by the Bouygues
Construction group with effect from 1
January 2014. The effects of IFRIC 21,
which is mandatorily applicable from 1
January 2015, will not be material as
regards consolidated equity. However,
they will alter the timing of the recognition of certain levies such as (in France)
the C3S levy and land taxes during
interim accounting periods.
The impact of the retrospective application of IFRIC 21 for the year ended
31 December 2014 is presented in
Note 26 to the consolidated financial
statements.
• Other key standards, amendments and interpretations issued
by the IASB but not yet endorsed
by the European Union:
IFRS 15, “Revenue from Contracts
with Customers”
On 28 May 2014, the IASB issued a
new standard on revenue recognition
intended to replace most of the current
IFRS pronouncements on this subject,
in particular IAS 11 and IAS 18. This
new standard, which has not yet been
endorsed by the European Union, is
applicable from 1 January 2017 with
early adoption permitted.
The impact of IFRS 15, which has not
been early adopted by the Group, is
currently under review.
IFRS 9, “Financial Instruments”
On 24 July 2014, the IASB issued a
new standard on financial instruments
intended to replace most of the current
IFRS pronouncements on this subject,
in particular IAS 39. This new standard,
which has not yet been endorsed by
the European Union, is applicable from
1 January 2018 with early adoption
permitted.
IFRS 9 has not been early adopted by
the Group.
The financial statements for the year
ended 31 December 2014 have been
prepared using the historical cost convention, with the exception of certain
items – in particular some financial
assets and financial liabilities – which
are measured at fair value.
Preparing financial statements to
comply with IFRS requires the use of
estimates and assumptions which may
have affected the amounts reported
for assets and liabilities at the end of
the reporting period, and the amounts
of income and expenses reported for
the financial year. Those estimates and
assumptions have been applied consistently on the basis of past experience and of various other factors
regarded as reasonable forming the
basis of assessments of the valuations
of assets and liabilities for accounting
purposes. Actual results may differ
materially from these estimates if different assumptions or conditions
apply. The main areas in which estimates and assumptions are involved
are the measurement of provisions and
forecast data regarding the completion
of construction contracts in progress.
2.1 Consolidation methods
2.1.1 Consolidation methods
and scope of consolidation
Companies over which Bouygues
Construction exercises control are consolidated by the full consolidation method.
Joint operations are recognised in proportion to the interest held by the
Group in the assets, liabilities, income
and expenses.
Companies over which Bouygues
Construction exercises significant influence, and joint ventures, are accounted
for by the equity method.
ChaNges iN the
sCope oF
CoNsolidatioN
31/12/2014
31/12/2013
REStAtED
CompaNies
CoNtrolled by
bouygues
CoNstruCtioN
236
227
JoiNt
operatioNs
103
103
20
34
359
364
JoiNt veNtures
aNd assoCiates
Financial report 2014
operation are accounted for in accordance with the interests held in the joint
operation.
IFRS 11 applies principally to Bouygues
Construction group joint arrangements
set up for certain contracts carried out
by construction project companies in
the form of Sociétés en Participation
– SEPs (a form of silent partnership
under French law) or other legal forms,
and to certain property development
programs (see Note 3.4.5).
2.1.2 Translation of the financial
statements of foreign entities
The financial statements of consolidated subsidiaries with a functional
currency other than the euro are translated at the exchange rate prevailing
at the end of the reporting period (in
the case of the balance sheet) and at
the average exchange rate for the year
(in the case of the income statement
and cash flow statement). The resulting
translation differences are taken to
equity under “Translation reserve”.
Translation differences arising on foreign-currency liabilities accounted for
as hedges of a net investment in a
foreign operation are recognised in
equity.
2.1.3 Translation of transactions
denominated in foreign
currencies
Entities that have the euro as their functional currency translate foreign-currency transactions into euros at the
exchange rate prevailing on the transaction date. Monetary assets and liabilities
denominated in foreign currencies at the
end of the reporting period are translated at the closing exchange rate, with
the resulting translation differences recognised in profit or loss for the period.
2.1.4 Deferred taxation
Deferred taxation is recognised on all
differences between the carrying
amount and the tax base of assets or
liabilities (balance sheet liability
method). These differences arise from:
• Temporary differences between the
carrying amount and tax base of assets
or liabilities, which may be:
23
– items generating a tax liability in the
future (deferred tax liabilities), arising
mainly from income that is liable to tax
in future periods; or
– items deductible from taxable profits
in the future (deferred tax assets),
mainly provisions that are temporarily
non-deductible for tax purposes.
Deferred tax assets are reviewed at the
end of each reporting period, and recognised where it is probable there will
be sufficient taxable profits to enable
the temporary differences to be offset;
• Tax losses available for carry-forward
(deferred tax assets), provided that
there is a strong probability of recovery
in future periods.
Deferred taxes are measured at the tax
rate applicable at the end of the reporting period, adjusted as necessary for
the effect of changes in tax legislation.
The effects of changes in corporate
income tax rates are recognised in
profit or loss, in accordance with the
liability method.
The estimated amount of non-recoverable taxes on dividends payable by
French or foreign subsidiaries is covered by a provision where material.
24
2.1.5 Concession contracts and
Public-Private Partnerships
(ppp)
The Bouygues Construction group has
equity interests in associates that have
been awarded concession/PPP contracts; these are accounted for in accordance with IFRIC 12.
2.2 Accounting policies and
valuation methods
The Bouygues Construction group
applies Recommendation 2009-R-03 on
the presentation of financial statements, issued on 2 July 2009 by the
Conseil National de la Comptabilité
(CNC), now the Autorité des Normes
Comptables (ANC), the French national
accounting standard-setter.
Financial report 2014
2.2.1 Assets
different depreciation methods, each
component is accounted for and
depreciated as a separate item of property, plant and equipment (componentbased approach).
The cost of an item of property, plant
and equipment comprises the purchase price after deducting any commercial discounts and rebates,
including import duties and nonrefundable taxes and any costs directly
attributable to bringing the asset to the
location and condition necessary for it
to be capable of operating as intended
by management.
Subsequent costs are recognised as an
expense unless they improve the performance of the asset as originally
specified, extend its useful life, or
reduce the cost of operating the asset
as previously established.
Following initial recognition as an asset,
items of property, plant and equipment
are carried at cost less accumulated
depreciation and impairment. The
Bouygues Construction group accounts
for property, plant and equipment using
the historical cost model.
Depreciation is calculated over the
expected useful life of the asset. The
useful life of an asset is the period over
which the Group expects the asset to
be available for use.
The depreciable amount of an asset is
cost less any estimated residual value
net of costs of disposal. The residual
value of an item of property, plant and
equipment is the amount the Group
would receive currently for the asset if
the asset were already of the age and
in the condition expected at the end of
its useful life (excluding the effects of
inflation).
The principal useful lives applied are:
– Buildings: 10, 20 or 30 years,
depending on whether the building is
of lightweight or durable construction;
a) Non-current assets
– Plant, equipment and tooling: 3 to
8 years;
Property, plant and equipment
Property, plant and equipment is
measured at acquisition cost less accumulated depreciation and impairment.
– Other property, plant and equipment: 3 to 10 years, depending on the
type of asset (vehicles, office equipment and furniture, etc).
Where an item of property, plant and
equipment consists of significant components with different useful lives or
Depreciation periods are reviewed
annually, and may be adjusted if
expectations differ from previous esti-
mates. Any such changes in estimates
are accounted for prospectively.
> Finance leases
A finance lease is a contract under
which substantially all the risks and
rewards of ownership are transferred to
the lessee, whether or not title is ultimately transferred to the lessee.
Assets acquired under finance leases
are, if material, recognised as an asset
in the balance sheet under “Property,
plant and equipment”, with a matching
liability recognised under “Debt” on the
liabilities side of the balance sheet.
These assets are depreciated over their
expected useful lives.
> Site rehabilitation costs
Rehabilitation costs arising from the
gradual deterioration of a site are covered by provisions recognised on the
liabilities side of the balance sheet.
> Investment properties
The Bouygues Construction group has not
identified any asset that qualifies as an
investment property.
Intangible assets
IAS 38 defines an intangible asset as an
identifiable non-monetary asset without
physical substance. An asset is identifiable:
– if it is separable, i.e. capable of being
independently sold, transferred, licensed,
rented or exchanged;
– or if it is derived from contractual or
other legal rights, whether separable or
not.
Intangible assets with finite useful lives
are depreciable. Intangible assets with
indefinite useful lives are not depreciable,
but are tested for impairment at the end
of each reporting period.
• Development expenses
Development expenses are capitalised if
the IAS 38 criteria are met, i.e. if they are
expected to generate future economic
benefits and their cost can be reliably
measured.
Incorporation and research expenses are
expensed as incurred.
• Intangible assets with no legal protection
Acquired intangible assets with no legal
protection are included in goodwill.
Business combinations
With effect from 1 January 2010, business combinations have been accounted
for in accordance with the revised IFRS
3 and IAS 27, which use the concept of
“obtaining control” in determining the
In a business combination, the fair value
of the consideration transferred is allocated to the identifiable assets and liabilities of the acquiree, which are measured
at fair value at the acquisition date and
presented in the balance sheet using the
full fair value method in accordance with
the revised IFRS 3. This method involves
remeasuring the assets and liabilities
acquired at fair value in full (including
non-controlling interests), rather than
remeasuring just the percentage interest
acquired.
The revised IFRS 3 allows entities to elect
one of two methods of accounting for
non-controlling interests in each business
combination:
– at fair value (full goodwill method), i.e.
the non-controlling interests are allocated
their share of goodwill;
– at the non-controlling interests’ proportionate share of the acquired entity’s identifiable assets and liabilities (partial goodwill
method), i.e. no share of goodwill is allocated to the non-controlling interests.
Goodwill recognised prior to 1 January
2004 continues to be measured using
the partial fair value method. This
method involves restricting the fair value
remeasurement of identifiable items to
the percentage interest acquired. Noncontrolling interests in these items are
measured on the basis of the carrying
amount of the items as shown in the balance sheet of the acquired entity. The
revised standards allow the acquirer to
elect to account for each new business
combination on either a full goodwill
basis or a partial goodwill basis.
Fair value is the price that would be
received for an asset or paid to settle a
liability in an orderly transaction
between market participants at the
measurement date.
Goodwill is the excess of the acquisition
cost over the acquirer’s interest in the
fair value of the acquiree’s identifiable
assets, liabilities and contingent liabilities
that can be reliably measured at the
acquisition date.
It represents the payment made by the
acquirer in anticipation of the future economic benefits arising from assets that
cannot be individually identified and
separately recognised, and is reported
separately as an asset in the balance
sheet.
Negative goodwill (i.e gain from a bargain
purchase) is taken to the income statement
in the period in wich the acquisition is made.
The purchase price allocation period is
limited to the time required to identify
and measure the acquired entity’s assets
and liabilities, the non-controlling interests, the consideration transferred and
the fair value of any previously-held
equity interest, subject to a maximum
period of 12 months.
Subsequent to initial recognition, goodwill
is measured at cost less accumulated
impairment losses in accordance with IAS
36, and is tested for impairment annually.
Impairment losses are charged to the
income statement as an operating item.
Goodwill is allocated to the cash generating unit (CGU) benefiting from the business combination or to the group of CGUs
at the level of which return on investment
is measured.
The value in use of CGUs is determined
using the discounted cash flow (DCF)
method, applying the following principles:
– The discount rate is determined by
reference to the weighted average cost
of capital.
– The cash flows used are derived from
the medium-term business plan prepared
by the management of the CGU.
– The terminal value is calculated by
aggregating the discounted cash flows
to infinity, based on normative cash flows
and a perpetual growth rate that is consistent with the growth potential of the
markets in which the CGU operates and
with its competitive position in those
markets.
Bouygues Construction has identified two
CGUs:
• A CGU comprising French and international building and civil engineering
activities:
The business plan used was prepared
within the context of the Group’s management cycle.
The assumptions applied include no
changes in the scope of the Group’s building and civil engineering activities, and
the continuation of those activities as a
going concern over the three-year period
covered by the business plan.
The Bouygues Construction group has set
a year by year profitability target for its
building and civil engineering activities.
This target is incorporated into the
assumptions used in the business plan,
which also takes into account past experience and external sources of information.
Discount rate applied: 10.96%/9.92%,
depending on the assumptions used.
Growth rate applied: 0%.
Financial report 2014
accounting treatment to be applied to
acquisitions or disposals of equity interests; depending on the circumstances,
the impacts of such acquisitions and disposals are recognised either in consolidated profit or loss or in equity.
There were no events or circumstances
requiring the recognition of an impairment loss in 2014.
• A CGU comprising French and International Energy and Services activities:
The business plan used was prepared
within the context of the Group’s management cycle.
The assumptions applied include no
changes in the scope of the Group’s
Energy and Services activities, and the
continuation of these activities as a going
concern over the three-year period covered by the business plan.
The Bouygues Construction group has set
a year by year profitability target for its
Energy and Services activities. This target
is incorporated into the assumptions used
in the business plan, which also takes into
account past experience and external
sources of information.
Discount rate applied: 6.73%/6.11%,
depending on the assumptions used.
Growth rate applied: 1%.
There were no events or circumstances
requiring the recognition of an impairment loss in 2014.
Financial assets
> Investments in non-consolidated
companies and other long-term
investment securities
Investments in non-consolidated companies and other long-term investment
securities are classified as available-forsale financial assets, and are recognised at fair value in the balance sheet.
Changes in fair value are recognised in
equity except in the case of other-than
temporary impairment, in which case
the impairment loss is recognised in
profit or loss for the period. When an
asset is derecognised, the change in
fair value previously recognised in
equity is reclassified to profit or loss.
> Non-current loans receivable
Loans, advances to non-consolidated
companies, and deposits and caution
money are measured at fair value on
initial recognition, and subsequently at
amortised cost.
25
b) Current assets
Inventories
Inventories are stated at the lower of
cost (weighted average unit cost) or
market price.
Where the realisable value of inventory
is lower than cost, an impairment loss
is recognised.
trade and other receivables
Trade receivables are essentially shortterm, and are carried at face value net
of impairment allowances recorded to
reflect the probability of recovery.
In line with the percentage of completion method of accounting for longterm contracts, trade receivables
include:
– statements issued as works are
executed or services provided, and
accepted by the project owner;
– unbilled receivables, arising where
works are entitled to acceptance but
billing or acceptance by the project
owner has been temporarily delayed.
26
Cash and cash equivalents
Cash equivalents (short-term investments) are measured at fair value and
classified as available-for-sale financial
assets.
Cash, short-term deposits and bank
overdrafts:
Because of the short-term nature of
these items, the carrying amounts
shown in the consolidated financial
statements are a reasonable estimate
of market value.
2.2.2 Liabilities and
shareholders’ equity
a) Non-current liabilities
Non-current provisions
A provision is recorded where the
Group has a present obligation to a third
party at the end of the reporting period
resulting from a past event, the settlement of which is expected to result in a
probable outflow from the Group of
resources embodying economic benefits that can be measured reliably.
Financial report 2014
These mainly comprise :
> Employee benefits
• Provisions for lump-sum retirement
benefit obligations :
The Group records a provision for its
obligations to pay lump-sum benefits
to its employees on retirement, to the
extent that those obligations are not
covered by insurance policies.
shown in the consolidated financial
statements are a reasonable estimate
of market value.
This provision is calculated using the
projected unit credit method based on
final salary, projected to the retirement
date.
Advances and down-payments
received on orders
This item comprises advances and
down-payments received from customers on construction contract starts.
The amount of the provision is determined on the basis of the relevant collective agreement, and taking account
of the following factors:
– classification of employees into
groups with common characteristics
in terms of status, age and length of
service;
– monthly salary, uplifted by a coefficient to reflect the applicable percentage of employer’s social security
charges;
– final salary inflation rate;
– discount rate applied to the obligation over the projected period to the
retirement date;
– employee turnover rate, determined
by age bracket and socio-professional
category;
– life expectancy, determined using
the INSEE 2006-2008 mortality table.
In accordance with the revised IAS 19,
all actuarial gains and losses on definedbenefit post-employment benefit plans
are recognised in non-current provisions, with the matching entry recognised in equity via the statement of
recognised income and expense.
• Provision for long-service awards:
The Group records a provision for its obligations in respect of long-service awards
(10, 20, 30 and 40 years) using the projected unit credit method, projected over
the period to the date of the award.
> Provisions for litigation, claims
and foreseeable risk exposures
> Customer warranty provisions
These provisions are intended to cover
risks for which the company is liable
during the warranty period (essentially
the ten-year warranty in France).
The provision is determined by applying
a statistical rate (determined annually
by reference to warranty information
specific to each entity) to sales.
b) Current liabilities
trade and other payables
Because of the short-term nature of
these liabilities, the carrying amounts
Current provisions
These mainly comprise:
– Provisions for project risks and project completion
– Provisions for expected losses to
completion: These relate to construction contracts in progress, and take
account of claims accepted by the
client. They are measured on a contract by contract basis, with no netting
between them.
2.2.3 Income statement
a) Consolidated sales
Consolidated sales represent the aggregate amount of contract revenues, sales
of products and sales of services, including sales generated by entities controlled
by Bouygues Construction and by joint
operations (after eliminating intercompany transactions).
Sales are broken down into construction
contracts, sales of goods, and sales of
services.
b) Accounting for construction
contracts
All activities related to construction
contracts are accounted for using the
percentage of completion method.
Under this method, the revenue recognised equals the latest estimate of the
total selling price of the contract multiplied by the actual completion rate determined by reference to the physical state
of progress of the works. The latest estimate of the total selling price takes
account of claims accepted by the client.
If it is regarded as probable that a contract will generate a loss on completion, a provision for expected losses on
completion is recognised as a current
provision in the balance sheet. The loss
is provided for in full as soon as it can
be reliably measured, irrespective of
the completion rate.
c) Profits/losses from shared
operations
These represent the Group’s share of
profits or losses from non-consolidated
the use of hedging instruments; the
selection of counterparties with whom
they are contracted; and more generally, the management of exposure to
currency risk and interest rate risk.
d) Operating profit
a) Risks to which the Group is
exposed, and principles applied
to the management of those
financial risks
Operating profit represents the net
amount of all income and expenses not
generated by financing activities, by
associates or by discontinued or heldfor-sale operations, and excluding
income taxes.
Any impairment of goodwill is recognised
as a charge against operating profit.
e) Income from net surplus cash
Income from net surplus cash comprises all gains, losses, income and
expenses generated by components of
net surplus cash during the period (see
Note 9, “Change in net surplus cash”),
including gains and losses on related
interest rate and currency hedges.
f) Other financial income and
expenses
This comprises financial income and
expenses that are of a non-operating
nature and do not relate to components
of net surplus cash.
2.2.4 Financial instruments
Some Group entities use hedging
instruments to limit the impact on the
income statement of fluctuations in
exchange rates and interest rates. The
Group’s policy on the use of financial
instruments is described below.
The only instruments used for hedging purposes are:
– forward currency purchases and
sales, currency swaps and currency
options for currency risk hedging purposes;
– interest rate swaps and purchases
of caps and collars for interest rate
risk hedging purposes.
These instruments:
– are used solely for hedging purposes;
– are contracted solely with highgrade French and foreign banks;
– carry no liquidity risk in the event
of reversal.
Specific reports are prepared on a
regular basis for those responsible for
the management and supervision of the
relevant Group companies, describing
Currency risk
In general, the Bouygues Construction
group has little exposure to currency
risk in routine commercial transactions. Where possible, expenses relating to a contract are incurred in the
same currency as that in which the
contract is billed.
This applies to most construction projects executed outside France, on which
local-currency expenses (sub-contracting and supplies) represent a much
higher proportion than euro-denominated expenses. Particular attention is
paid to risks relating to assets denominated in non-convertible currencies,
and to country risk generally.
Group policy is to hedge systematically
all residual exposure to currency risk
on commercial transactions relative to
the functional currency of a project or
entity.
If the future cash flow is certain, the
currency risk is hedged by buying or
selling currency forward, or by means
of currency swaps.
For some large contracts, options may
be taken out for hedging purposes
before the contract award has been
confirmed.
Equity investments in foreign companies are usually hedged by a liability of
a similar amount in the same currency
in the books of the entity that holds
the investment.
Interest rate risk
Interest rate risk exposure arises on
variable-rate debt recognised in the
balance sheet, and is hedged by variable-rate investments.
The Group’s income statement could
be adversely affected by a significant
fall in European interest rates. Interest rate swaps may be contracted to
lock in the income streams from the
Group’s surplus cash.
b) Hedge accounting policies and
rules
The Group accounts for hedges in
accordance with IAS 39.
Hedge accounting is applied where a
derivative instrument wholly or partly
offsets changes in the fair value or
cash flows of a hedged item. Hedge
effectiveness is assessed on a regular
basis, and at least once a quarter.
Financial report 2014
partnerships; as such, they are a component of operating profit and are
reported on the lines “Other income
from operations” and “Other expenses
on operations”.
To qualify for hedge accounting, financial instruments must meet the following conditions:
– formal designation and documentation of the hedging relationship on
inception of the hedge;
– hedge effectiveness demonstrated
throughout the life of the financial
instrument.
If a hedging relationship cannot be
demonstrated, all changes in fair
value are recognised in profit or loss.
All derivative instruments are measured at fair value. Fair value is the
quoted market price in the case of
listed instruments, or is determined
using calculation and valuation models
based on market data (yield curves,
exchange rates, etc) in other cases.
No embedded derivatives within the
meaning of IAS 39 have been identified
within the Bouygues Construction group.
Cash flow hedges
A cash flow hedge is a hedge of the
exposure to variability in the future
cash flows from a hedged item or a
future transaction.
Where a derivative instrument is used
to hedge the exposure to variability in
the cash flows from a firm commitment or a forecast transaction, the
change in the fair value of the portion
of the hedging instrument that is
determined to be an effective hedge
is recognised directly in equity.
The change in fair value of the portion
of the hedge regarded as ineffective is
recognised immediately in profit or
loss.
Fair value hedges
The purpose of a fair value hedge is
to limit the variability of the fair value
of an asset or a liability recognised in
the balance sheet.
Where a derivative instrument hedges
exposure to changes in the fair value
of a receivable or a payable, the
change in the fair value of the hedging instrument is recognised immediately in profit or loss. The gain or loss
on the hedged item attributable to the
hedged risk is accounted for as an
27
adjustment to the carrying amount of
the hedged item, and is recognised
directly in profit or loss.
The fair value of hedged items corresponds to their carrying amount translated into euros using the rate prevailing
at the end of the reporting period.
2.2.6 Off balance sheet
commitments
Hedges of a net investment in a
foreign operation
A hedge of a net investment in a foreign operation is a hedge of the currency risk exposure on the parent
company’s interest in the net assets
of that operation.
EBITDA equals “Current operating
profit” after stripping out “Net depreciation and amortisation expense”,
“Net charges to provisions and
impairment losses”, and reversals of
unused provisions and impairment
losses reported in “Other income
from operations” and “Other expenses
from operations”.
Where a liability denominated in a
foreign currency is used to hedge a
net investment in a foreign operation,
translation differences arising between
that currency and the euro are recognised directly in equity. If the hedging
instrument is a derivative instrument,
the change in the fair value of the
portion of the hedging instrument
that is determined to be an effective
hedge is recognised directly in equity;
the change in fair value of the ineffective portion is recognised immediately
in profit or loss.
2.2.5 Cash flow statement
28
The cash flow statement is presented
in accordance with IAS 7 and with
CNC recommendation 2009-R-03 of
2 July 2009 (indirect method).
The net profit of consolidated entities
is adjusted to eliminate the impact of
transactions with no cash effect, and
of income and expenses related to
investing or financing activities.
Financial report 2014
Cash flow as reported in the cash flow
statement is defined as follows:
Net profit from consolidated entities
before: net depreciation and amortisation expense, net changes in provisions and impairment losses, gains
and losses on asset disposals, income
from net surplus cash (included in
financing activities in the cash flow
statement), and net income tax
expense for the period.
The cash flow statement explains
changes in the Group’s net cash position, which is defined as the net total
of the following balance sheet items:
– cash and cash equivalents;
– overdrafts and short-term bank
borrowings.
No cash or cash equivalents were
unavailable as of 31 December 2014.
A summary of off balance sheet commitments is provided in Note 18.
2.2.7 ebitda
2.2.8 Free cash flow
Free cash flow equals cash flow after
income from surplus cash (or cost of
net debt) and income tax expense, less
net capital expenditure for the period.
Net capital expenditure equals the
purchase price of property, plant and
equipment and intangible assets
acquired during the period, net of proceeds from disposals and investment
grants obtained.
2.2.9 Net surplus cash
Net surplus cash is the sum total of
the following items:
– cash and cash equivalents;
– overdrafts and short-term bank borrowings;
– non-current and current debt;
– financial instruments (used to
hedge financial liabilities measured at
fair value).
2.3 Other information
Comparability of the financial statements:
The impact of changes in the scope of
consolidation between 1 January and
31 December 2014 does not impair
the comparability of the consolidated
financial statements as presented.
Under the revised IAS 1, “Presentation
of Financial Statements”, the Group
has elected to present the components of comprehensive income in two
detailed statements, as permitted by
the IASB:
a) an income statement;
b) a statement of recognised income
and expense that reports other comprehensive income, including income
and expenses recognised directly in
equity.
Bouygues Construction is included in
the scope of consolidation of Bouygues
SA for the purposes of the presentation of the Bouygues SA consolidated
financial statements.
Financial report 2014
Note 3
Non-current assets
For a breakdown of non-current assets by business segment see note 16, “Segment Information”.
ACQUISITIONS OF NON-CURRENT ASSETS DURING THE YEAR, NET OF DISPOSALS
2013
REStAtED
2014
ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT (1)
aCQuisitioNs oF iNtaNgible assets (1)
CAPItAL EXPENDItURE
aCQuisitioNs oF NoN-CurreNt FiNaNCial assets
(investments in consolidated and non-consolidated companies, other long-term investments)
ACQUISItIONS OF NON-CURRENt ASSEtS
disposals oF NoN-CurreNt assets
ACQUISItIONS OF NON-CURRENt ASSEtS, NEt OF DISPOSALS
229
11
240
183
9
192
93
2
333
(77)
256
194
(35)
159
(1) Net of investment grants obtained (netted off the asset in the balance sheet).
3.1 PROPERTY, PLANT AND EQUIPMENT
gross value
1 JANUARy 2013 REStAtED
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
aCQuisitioNs duriNg the period
disposals aNd other reduCtioNs
31 DECEmBER 2013 REStAtED
oF whiCh FiNaNCe leases
mOvEmENtS DURINg 2014
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
aCQuisitioNs duriNg the period
disposals aNd other reduCtioNs
31 DECEmBER 2014
oF whiCh FiNaNCe leases
Land and
buildings
684
Plant,
equipment
and tooling
Other property,
plant and
equipment
PP&E under
construction and
advance payments
tOtAL
328
(4)
28
(1)
5
(12)
344
5
839
(15)
4
1
101
(136)
794
2
280
(5)
9
−
39
(32)
291
−
26
−
(37)
(1)
38
−
26
−
1,473
(24)
4
(1)
183
(180)
1,455
7
7
44
−
17
(2)
410
5
25
3
1
77
(119)
781
1
7
9
6
39
(34)
318
−
6
(57)
4
96
−
75
−
45
(1)
11
229
(155)
1,584
6
(71)
1
3
1
12
(23)
−
−
(77)
(3)
(553)
10
1
−
106
(118)
−
−
(554)
(1)
(196)
4
(5)
1
29
(37)
−
−
(204)
−
−
−
−
−
−
−
−
−
0
−
(820)
15
(1)
2
147
(178)
−
−
(835)
(4)
(4)
(1)
−
2
(35)
−
−
(115)
(3)
(18)
2
(1)
99
(95)
−
−
(567)
−
(5)
−
(3)
32
(38)
−
−
(218)
−
−
−
−
−
−
−
−
0
−
(27)
1
(4)
133
(168)
−
−
(900)
(3)
267
2
295
2
240
1
214
1
87
−
100
−
26
−
75
−
620
3
684
3
depreCiatioN aNd impairmeNt
1 JANUARy 2013 REStAtED
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
disposals aNd other reduCtioNs
depreCiatioN expeNse
impairmeNt losses Charged
impairmeNt losses reversed
31 DECEmBER 2013 REStAtED
oF whiCh FiNaNCe leases
mOvEmENtS DURINg 2014
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
disposals aNd other reduCtioNs
depreCiatioN expeNse
impairmeNt losses Charged
impairmeNt losses reversed
31 DECEmBER 2014
oF whiCh FiNaNCe leases
CarryiNg amouNt
31 DECEmBER 2013 REStAtED
oF whiCh FiNaNCe leases
31 DECEmBER 2014
oF whiCh FiNaNCe leases
Analyses by business segment and geographical area of the carrying amount of intangible assets and property, plant and equipment, and of capital expenditure, are provided in
Note 16, “Segment Information”.
29
3.2 iNtaNgible assets
gross value
1 JANUARy 2013 REStAtED
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
aCQuisitioNs duriNg the period
disposals aNd other reduCtioNs
31 DECEmBER 2013 REStAtED
Development
expenses
Concessions,
patents and
similar rights
Other
intangible
assets
51
tOtAL
−
−
−
−
−
−
−
114
−
2
−
6
(3)
119
19
−
(2)
−
3
−
20
133
−
−
−
9
(3)
139
−
−
−
−
−
−
−
5
−
3
(1)
126
−
(4)
3
8
−
27
−
1
3
11
(1)
153
−
−
−
−
−
−
−
−
−
(72)
−
−
−
3
(13)
−
−
(82)
(6)
−
−
−
−
(1)
−
−
(7)
(78)
−
−
−
3
(14)
−
−
(89)
−
−
−
−
−
−
−
−
−
(1)
−
1
(11)
−
−
(93)
−
−
−
−
(2)
−
−
(9)
−
(1)
−
1
(13)
−
−
(102)
−
−
37
33
13
18
50
51
mOvEmENtS DURINg 2014
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
aCQuisitioNs duriNg the period
disposals aNd other reduCtioNs
31 DECEmBER 2014
amortisatioN aNd impairmeNt
1 JANUARy 2013 REStAtED
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
30
ChaNges iN sCope oF CoNsolidatioN
disposals aNd other reduCtioNs
amortisatioN expeNse
impairmeNt losses Charged
impairmeNt losses reversed
31 DECEmBER 2013 REStAtED
mOvEmENtS DURINg 2014
traNslatioN adJustmeNts
traNsFers betweeN aCCouNts
ChaNges iN sCope oF CoNsolidatioN
disposals aNd other reduCtioNs
amortisatioN expeNse
impairmeNt losses Charged
impairmeNt losses reversed
31 DECEmBER 2014
CarryiNg amouNt
31 DECEmBER 2013 REStAtED
Financial report 2014
31 DECEmBER 2014
528
1 January 2013 rEStatEd
ChanGes In sCOpe OF COnsOLIDatIOn, transLatIOn
aDjustments & Other mOvements
ImpaIrment LOsses
31 December 2013 restateD
ChanGes In sCOpe OF COnsOLIDatIOn, transLatIOn
aDjustments & Other mOvements
ImpaIrment LOsses
31 December 2014
Gross
value
Impairment
Carrying
amount
Building &
Civil
Engineering
Energy &
Services
491
−
491
238
253
(8)
−
(8)
(5)
(3)
−
483
−
−
−
483
−
233
−
250
45
−
45
6
39
−
528
−
−
−
528
−
239
−
289
3.4 nOn-Current FInanCIaL assets
Financial report 2014
3.3 GOODWILL
314
Other
non-current financial assets
1 January 2013 rEStatEd
transLatIOn aDjustments
transFers betWeen aCCOunts
ChanGes In sCOpe OF COnsOLIDatIOn
aCquIsItIOns anD Other InCreases
DIspOsaLs anD Other reDuCtIOns
amOrtIsatIOn anD ImpaIrment, net
31 December 2013 restateD
transLatIOn aDjustments
transFers betWeen aCCOunts
ChanGes In sCOpe OF COnsOLIDatIOn
aCquIsItIOns anD Other InCreases
DIspOsaLs anD Other reDuCtIOns
amOrtIsatIOn anD ImpaIrment, net
31 December 2014
Investments in
joint ventures
and associates
Investments in
non-consolidated
companies
Other noncurrent assets
total gross
value
amortisation
and impairment
81
(1)
(3)
−
20
(22)
−
75
1
5
3
9
(18)
−
75
166
(3)
1
(5)
2
(7)
−
154
8
1
(6)
2
(12)
−
147
279
(4)
9
(19)
64
(33)
−
296
8
(1)
4
56
(140)
−
223
526
(8)
7
(24)
86
(62)
−
525
17
5
1
67
(170)
−
445
(141)
1
4
3
−
−
(14)
(147)
(1)
(3)
9
0
0
11
(131)
CarryInG
amOunt
385
(7)
11
(21)
86
(62)
(14)
378
16
2
10
67
(170)
11
314
3.4.1 Investments In jOInt ventures anD assOCIates
1 January 2013 rEStatEd
transLatIOn aDjustments
transFers betWeen aCCOunts
ChanGes In sCOpe OF COnsOLIDatIOn
aCquIsItIOns anD Other InCreases
DIspOsaLs anD Other reDuCtIOns
ImpaIrment LOsses
31 December 2013 restateD
transLatIOn aDjustments
transFers betWeen aCCOunts
ChanGes In sCOpe OF COnsOLIDatIOn
aCquIsItIOns anD Other InCreases
DIspOsaLs anD Other reDuCtIOns
ImpaIrment LOsses
31 December 2014
75
Share of
net assets
held
Goodwill on
joint ventures
and associates
81
(1)
(3)
−
20
(22)
−
75
1
5
3
9
(18)
−
75
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
CarryInG
amOunt
81
(1)
(3)
−
20
(22)
−
75
1
5
3
9
(18)
−
75
31
The Bouygues Construction group owns a number of investments in joint ventures and associates, a list of which is provided
in Note 25, “List of principal consolidated entities”. Summary information about the assets, liabilities, income and expenses
of the Bouygues Construction group’s principal joint ventures and associates is provided below.
31/12/2014
FIgURES ARE FOR 100%
OF tHE JOINt vENtURE/ASSOCIAtE
StADE DE
FRANCE
ALIS
NoN-CurreNt assets (1)
CurreNt assets
tOtAL ASSEtS
SHAREHOLDERS’ EQUITY
NoN-CurreNt liabilities
CurreNt liabilities
tOtAL LIABILItIES AND SHAREHOLDERS’
EQUIty
sales
OPERATING PROFIT/(LOSS)
NEt PROFIt/(LOSS)
Alis
ADELAC
31/12/2013 restated
Stade de
France
Adelac
529
86
615
(160)
729
46
189
59
248
43
149
56
812
40
852
(71)
840
83
527
77
604
(160)
720
44
189
40
229
43
141
45
813
24
837
(60)
824
73
615
248
852
604
229
837
63
34
−
70
1
−
44
26
(14)
58
28
(12)
79
4
1
38
21
(16)
(1) Net of investment grants obtained.
movemeNts duriNg the period
32
01/01/2014
restated
Net movement
in 2014 (1)
14
2
−
−
12
8
10
14
15
75
−
(2)
−
−
−
−
1
−
1
−
stade de FraNCe
ZaiC a limited
adelaC
alis
warNowQueruNg
biNa (FINCOM AND ISTRA)
traNsJamaiCaN
soCoprim
other
tOtAL
31/12/2014
14
−
−
−
12
8
11
14
16
75
(1) Includes: share of net profit/loss for the period, acquisitions, changes in scope of consolidation, translation adjustments, dividends paid, capital increases, and changes in the fair value of
financial instruments. Accumulated unrecognised losses on joint ventures and associates: €31m.
3.4.2 iNvestmeNts iN NoN-CoNsolidated CompaNies
91
31/12/2014
iNvestmeNts iN
NoN-CoNsolidated
CompaNies (1)
gROSS
vALUE
ImPAIRmENt
CARRyINg
AmOUNt
%
INtERESt
total total current &
assets (2)
non-current
liabilities (2)
total
sales (2)
Net profit/
(loss) (2)
−
−
FRENCH COmPANIES
FoNCiere poiNt du Jour
10
other iNvestmeNts
iN FreNCh CompaNies
(8)
2
100%
2
−
21
(3)
18
−
−
−
−
−
SUB-tOtAL
31
(11)
20
−
−
−
−
−
58
22
6
5
5
2
2
−
(22)
(6)
(5)
(5)
(2)
(2)
58
−
−
−
−
−
−
15%
100%
22%
68%
100%
100%
100%
115
−
29
9
−
−
−
22
−
65
−
−
−
−
34
−
8
−
−
−
−
(11)
−
(1)
−
−
−
(1)
16
(3)
13
−
−
−
−
−
116
147
(45)
(56)
71
91
−
−
−
−
−
−
−
−
−
−
FOREIgN COmPANIES
hoNg KoNg ieC limited
vsl CorporatioN (uNited states)
C.C.i.b. (romaNia)
Financial report 2014
eQuiby limited (Jersey)
Frog eleCtr. CoNt (south aFriCa)
vorspaNNteChNiK (germaNy)
vsl oFFshore (siNgapore)
other iNvestmeNts
iN ForeigN CompaNies
SUB-tOtAL
tOtAL
iNvestmeNts iN
NoN-CoNsolidated
CompaNies (1)
gROSS
vALUE
ImPAIRmENt
CARRyINg
AmOUNt
%
INtERESt
total total current &
assets (2)
non-current
liabilities (2)
total
sales (2)
Net
profit/
(loss) (2)
Financial report 2014
31/12/2013 REStAtED
FRENCH COmPANIES
FiChalleNge
other iNvestmeNts
iN FreNCh CompaNies
10
2
(8)
(1)
2
1
100%
100%
2
1
−
−
−
−
−
−
17
(1)
16
−
−
−
−
−
SUB-tOtAL
29
(10)
19
−
−
−
−
−
51
22
9
6
5
5
2
2
−
(22)
(9)
(6)
(5)
(5)
(2)
(2)
51
−
−
−
−
−
−
−
15%
100%
100%
22%
51%
100%
100%
100%
119
−
1
29
8
−
−
1
19
−
1
65
−
−
−
1
31
−
−
8
−
−
−
−
(15)
−
−
(1)
−
−
−
1
23
(5)
18
−
−
−
−
−
125
154
(56)
(66)
69
88
−
−
−
−
−
−
−
−
−
−
FoNCiere poiNt du Jour
FOREIgN COmPANIES
hoNg KoNg ieC limited
vsl CorporatioN (uNited states)
bouygues polsKa
C.C.i.b. (romaNia)
eQuiby limited (Jersey)
Frog eleCtr. CoNt (south aFriCa)
vorspaNNteChNiK (germaNy)
vsl oFFshore (siNgapore)
other iNvestmeNts iN ForeigN
CompaNies
SUB-tOtAL
tOtAL
(1) Not consolidated because:
- the Group does not exercise control or significant influence over the entity;
- the potential contribution of the entity to the consolidated financial statements is immaterial.
(2) Based on available annual information.
33
3.4.3 other NoN-CurreNt assets
148
tHE mAIN ItEmS INCLUDED IN tHIS HEADINg ARE:
advaNCes to NoN-CoNsolidated CompaNies
NoN-CurreNt loaNs aNd reCeivables
other loNg-term iNvestmeNts:
57
64
27
COmPRISINg:
- deposits aNd CautioN moNey
- other loNg-term iNvestmeNt seCurities
20
7
3.4.4 aNalysis oF iNvestmeNts iN NoN-CoNsolidated CompaNies aNd
other NoN-CurreNt assets by type
tHE FIgURES BELOw DO NOt INCLUDE INvEStmENtS
IN JOINt vENtURES OR ASSOCIAtES
31 DECEmBER 2013 REStAtED
movemeNts duriNg 2014
31 DECEmBER 2014
due withiN less thaN 1 year
due withiN 1 to 5 years
due aFter more thaN 5 years
239
Available-forsale financial
assets
Loans
and
receivables
Financial assets
at fair value
through profit
or loss
Held-tomaturity
financial
assets
92
6
98
−
−
98
211
(70)
141
11
63
67
−
−
−
−
−
−
−
−
−
−
−
−
tOtAL
303
(64)
239
11
63
165
3.4.5 JoiNt operatioNs
The Bouygues Construction group owns a number of investments in joint operations. A list of the principal consolidated
entities as of 31 December 2014 is provided in note 25. Summary information about the assets, liabilities, income and
expenses of joint operations is provided below.
bouygues CoNstruCtioN share
31/12/2013
REStAtED
31/12/2014
61
825
886
(253)
32
1,107
886
1,329
(54)
(54)
NoN-CurreNt assets
CurreNt assets
tOtAL ASSEtS
SHAREHOLDERS’ EQUITY
NoN-CurreNt liabilities
CurreNt liabilities
tOtAL LIABILItIES AND SHAREHOLDERS’ EQUIty
sales
OPERATING PROFIT/(LOSS)
NEt PROFIt/(LOSS)
95
639
734
(171)
68
837
734
1,116
52
49
3.5 NoN-CurreNt tax assets
108
31/12/2013
REStAtED
31/12/2014
34
108
−
108
deFerred tax assets (1)
other NoN-CurreNt tax assets
tOtAL NON-CURRENt tAX ASSEtS (1)
93
−
93
(1) See note 7 for details.
Note 4
Current assets
4.1 iNveNtories
315
31/12/2014
gross
value
Carrying
amount
gROSS
vALUE
ImPAIRmENt
CARRyINg
AmOUNt
RAw MATERIALS AND SUPPLIES,
FiNished goods aNd property
developmeNt iNveNtories
328
(13)
315
348
(11)
337
tOtAL
328
(13)
315
348
(11)
337
iNveNtories
Charged during the year
Financial report 2014
31/12/2013 restated
Impairment
Reversed during the year
2014
2013
restated
2014
2013
restated
RAw MATERIALS AND SUPPLIES, FINISHED GOODS
aNd property developmeNt iNveNtories
(4)
(3)
3
4
tOtAL
(4)
(3)
3
4
impairmeNt oF iNveNtories
154
31/12/2014
gross
value
31/12/2013 restated
Impairment
Carrying
amount
gROSS
vALUE
ImPAIRmENt
CARRyINg
AmOUNt
advaNCes aNd dowN-paymeNts
made oN orders
154
−
154
160
−
160
tOtAL
154
−
154
160
−
160
4.3 TRADE AND OTHER RECEIVABLES
3,739
31/12/2014
trade reCeivables
(Including unbilled receivables)
CurreNt tax assets (TAx RECEIVABLE)
other CurreNt reCeivables
& prepaid expeNses:
other operatiNg reCeivables
(employees, social security, government and other)
suNdry reCeivables
(including current accounts)
prepaid expeNses
tOtAL tRADE AND OtHER RECEIvABLES
gross
value
31/12/2013 restated
Impairment
Carrying
amount
gROSS
vALUE
ImPAIRmENt
CARRyINg
AmOUNt
3,043
(211)
2,832
2,742
(199)
2,543
55
−
55
37
−
37
364
(8)
356
414
(16)
398
444
(35)
409
282
(36)
246
87
−
87
81
−
81
3,993
(254)
3,739
3,556
(251)
3,305
4.4 split oF trade reCeivables betweeN NoN past due aNd past due
balaNCes as oF 31 deCember 2014 (ageiNg oF trade reCeivables)
Balances past due by:
trade reCeivables
impairmeNt
tOtAL tRADE RECEIvABLES
31/12/2013 RESTATED
4.5 other CurreNt FiNaNCial assets
See Note 17, “Financial instruments”.
Financial report 2014
4.2 advaNCes aNd dowN-paymeNts made oN orders
Non past due
balances
0-6 months
2,275
(7)
2,268
2,040
433
(9)
424
354
6-12 months > 12 months
tOtAL
60
(3)
57
67
275
(192)
83
82
3,043
(211)
2,832
2,543
5
35
4.6 CASH AND CASH EQUIVALENTS
3,908
31/12/2014
bouygues relais
uNiserviCe
other Cash
Cash eQuivaleNts
tOtAL
Euro
split by
CurreNCy: 2014
ImPAIRmENt
CARRyINg
AmOUNt
2,132
1,010
702
64
3,908
−
−
−
−
−
2,132
1,010
702
64
3,908
Hong
Kong
dollar
Dollar US
Cash eQuivaleNts
tOtAL
36
Swiss
franc
Sterling"
Cash
split by
CurreNCy: 2013
restated
Pound
sterling
gROSS
vALUE
Cash eQuivaleNts
tOtAL
Canadian
dollar
31/12/2013 restated
Impairment
2,101
1,057
625
28
3,811
Australian
dollar
US
dollar
CFA
franc
425
−
425
299
−
299
90
−
90
58
−
58
50
−
50
202
−
202
27
1
28
Euro
Pound
sterling
Swiss
franc
Hong
Kong
dollar
Singapore
dollar
Canadian
dollar
Australian
dollar
US
dollar
CFA
franc
196
−
196
394
−
394
tOtAL
Suisse
196
−
196
2,426
26
2,452
115
−
115
3,844
64
3,908
Other
tOtAL
Divers
231
−
231
2,101
1,057
625
28
3,811
Other
Divers
Dollar US
Carrying
amount
−
−
−
−
−
2,382
63
2,445
Sterling"
Cash
Singapore
dollar
gross
value
Suisse
214
−
214
24
−
24
11
−
11
93
−
93
56
1
57
138
1
139
3,783
28
3,811
Cash equivalents have a maturity of less than 3 months, or are readily convertible into cash.
split by Category
available-For-sale
tOtAL
31/12/2014
3,908
3,908
31/12/2013
REStAtED
3,811
3,811
The net cash position shown in the cash flow statement comprises the following items:
31/12/2014
Cash
Cash eQuivaleNts
tOtAL
Financial report 2014
overdraFts aNd short-term baNK borrowiNgs
NEt CASH POSItION
3,844
64
3,908
(459)
3,449
31/12/2013
REStAtED
3,783
28
3,811
(337)
3,474
Shareholders’ equity
5.1 SHARE CAPITAL
€127,967,250
Financial report 2014
Note 5
As of 31 December 2014, the share capital amounted to €127,967,250, comprising 1,706,230 shares with a par value
of €75. Movements during the period were as follows:
01/01/2014
restated
shares
iNvestmeNt CertiFiCates
Number oF shares
par value
SHARE CAPItAL (€)
1,706,230
−
1,706,230
€75
127,967,250
movements during 2014
31/12/2014
Reductions
Increases
−
−
−
−
−
−
−
−
−
−
1,706,230
−
1,706,230
€75
127,967,250
5.2 items reCogNised direCtly iN eQuity
5.2.1 TRANSLATION RESERVE
€54m
The translation reserve represents translation differences arising since 1 January 2004, when the reserve was deemed
to be zero under the option allowed by IFRS 1. The translation reserve includes the cumulative translation differences of
joint ventures and associates.
The table below shows the principal translation differences in the year ended 31 December 2014 arising on foreign
companies reporting in:
CurreNCy
31/12/2013
REStAtED
movements
during 2014
31/12/2014
37
pouNd sterliNg
swiss FraNC
us dollar
hoNg KoNg dollar
siNgapore dollar
australiaN dollar
south aFriCaN raNd
other CurreNCies
tOtAL
1
(3)
(5)
(2)
−
2
68
2
63
(2)
−
(1)
4
−
−
(9)
(1)
(9)
5.2.2 FAIR VALUE REMEASUREMENT RESERVE
(1)
(3)
(6)
2
−
2
59
1
54
€(43)m
The fair value remeasurement reserve is used to record changes in fair value that will be reclassified to profit or loss at
a future date. It includes fair value remeasurements of financial instruments used as cash flow hedges and
available-for-sale financial assets.
31/12/2013
REStAtED
Fair value remeasuremeNt reserve
tOtAL
(13)
(13)
movements
during 2014
(30)
(30)
5.2.3 OTHER RESERVES
revaluatioN reserve
tOtAL
(43)
(43)
€(29)m
31/12/2013
REStAtED
ACTUARIAL GAINS/(LOSSES)
31/12/2014
4
(21)
(17)
movements
during 2014
−
(12)
(12)
31/12/2014
4
(33)
(29)
Note 6
Non-current and current provisions
6.1 NON-CURRENT PROVISIONS
862
Employee
benefits
Litigation
and claims
Customer
warranties
Risks on
subsidiaries
and affiliates
171
−
−
183
−
−
289
(1)
−
48
−
(1)
89
−
−
104
−
1
884
(1)
−
−
−
−
(1)
1
−
−
5
6
(1)
(1)
180
−
48
(10)
(47)
174
−
83
(50)
(25)
296
−
7
(4)
−
49
−
3
(3)
(16)
74
−
34
(5)
(19)
115
5
181
(73)
(108)
888
TRaNSFERS bETwEEN aCCOUNTS
−
−
−
−
1
−
−
−
−
−
3
(1)
4
(1)
ChaNgES IN mEThOd aNd IN SCOPE OF
CONSOlIdaTION, OThER mOVEmENTS
−
(1)
−
(12)
−
−
(13)
15
9
(2)
(3)
199
−
58
(18)
(44)
169
−
79
(56)
(28)
292
−
3
−
(5)
35
−
8
(2)
−
80
−
17
(5)
(42)
87
15
174
(83)
(122)
862
1 JAnuAry 2013 rEsTATEd
TRaNSlaTION adjUSTmENTS
TRaNSFERS bETwEEN aCCOUNTS
ChaNgES IN mEThOd aNd IN SCOPE OF
CONSOlIdaTION, OThER mOVEmENTS
RECOgNISEd dIRECTly IN EqUITy
ChaRgES TO PROVISIONS
REVERSalS (PROVISIONS USEd)
REVERSalS (PROVISIONS NOT USEd)
31 DeCeMbeR 2013 RestateD
Miscellaneous
Other
foreign risks non-current
provisions
TOTAL
MOvEMEnTs during 2014
TRaNSlaTION adjUSTmENTS
RECOgNISEd dIRECTly IN EqUITy
ChaRgES TO PROVISIONS
REVERSalS (PROVISIONS USEd)
38
REVERSalS (PROVISIONS NOT USEd)
31 DeCeMbeR 2014
6.2 CURRENT PROVISIONS
599
Risks on
completed
projects
Project
completion
expenses
expected
losses to
completion
Other
current
provisions
45
−
−
167
(4)
2
113
(11)
(1)
83
(7)
(2)
408
(22)
(1)
−
(1)
−
−
(1)
20
(7)
(12)
46
114
(49)
(32)
197
51
(36)
(10)
106
33
(20)
(9)
78
218
(112)
(63)
427
TRaNSFERS bETwEEN aCCOUNTS
1
−
10
(7)
4
9
3
−
18
2
ChaNgES IN mEThOd aNd IN SCOPE OF CONSOlIdaTION,
OThER mOVEmENTS
−
−
−
(1)
(1)
35
(5)
(12)
65
156
(58)
(51)
247
130
(40)
(13)
196
38
(18)
(9)
91
359
(121)
(85)
599
1 JAnuAry 2013 rEsTATEd
TRaNSlaTION adjUSTmENTS
TRaNSFERS bETwEEN aCCOUNTS
ChaNgES IN mEThOd aNd IN SCOPE OF CONSOlIdaTION,
OThER mOVEmENTS
ChaRgES TO PROVISIONS
REVERSalS (PROVISIONS USEd)
REVERSalS (PROVISIONS NOT USEd)
31 DeCeMbeR 2013 RestateD
TOTAL
MOvEMEnTs during 2014
TRaNSlaTION adjUSTmENTS
ChaRgES TO PROVISIONS
Financial report 2014
REVERSalS (PROVISIONS USEd)
REVERSalS (PROVISIONS NOT USEd)
31 DeCeMbeR 2014
Financial report 2014
Note 7
Non-current tax assets and liabilities (assets 108 / liabilities 29)
7.1 NON-CURRENT TaX aSSETS
Movements during 2014
mOVEmENT IN dEFERREd TaX aSSETS IN ThE
CONSOlIdaTEd balaNCE ShEET
31/12/2013
restated
Net
gain
Other
movements
93
9
6
dEfErrEd TAx AssETs
31/12/2014
108
7.2 dEFERREd TaX aSSETS by bUSINESS SEgmENT
Movements during 2014
TyPE OF dEFERREd TaXaTION
by bUSINESS SEgmENT
Deferred
tax assets
31/12/2013
restated
Changes in
scope of
consolidation
translation
adjustments
Gain
expense
Other
2
4
6
−
−
0
−
−
0
−
−
0
−
(1)
(1)
−
−
0
2
3
5
73
14
87
93
−
−
0
0
−
−
0
0
13
−
13
13
−
(3)
(3)
(4)
5
1
6
6
91
12
103
108
dEfErrEd
TAx AssETs
31/12/2014
(A) TAx LOssEs AvAiLAbLE fOr
cArry-fOrwArd
bUIldINg & CIVIl ENgINEERINg
ENERgy & SERVICES
sub-TOTAL: TAx LOssEs
(b) TEMpOrAry diffErEncEs (1)
bUIldINg & CIVIl ENgINEERINg
ENERgy & SERVICES
sub-TOTAL: TEMpOrAry diffErEncEs
TOTAL dEfErrEd TAx AssETs
(1) Arising on differences between tax and accounting treatments, and on consolidation adjustments.
7.3 NON-CURRENT TaX lIabIlITIES
Movements during 2014
31/12/2013
restated
mOVEmENT IN dEFERREd TaX lIabIlITIES
IN ThE CONSOlIdaTEd balaNCE ShEET
29
dEfErrEd TAx LiAbiLiTiEs
Net
gains
Other
movements
(4)
4
31/12/2014
29
7.4 dEFERREd TaX lIabIlITIES by bUSINESS SEgmENT
Movements during 2014
TyPE OF dEFERREd TaXaTION
by bUSINESS SEgmENT
Deferred tax
liabilities
31/12/2013
restated
Changes in
scope of
consolidation
translation
adjustments
Gain
expense
Other
28
1
29
29
−
1
1
1
−
−
0
0
(4)
(1)
(5)
(5)
1
−
1
1
3
−
3
3
dEfErrEd
TAx
LiAbiLiTiEs
31/12/2014
TEMpOrAry diffErEncEs (1)
bUIldINg & CIVIl ENgINEERINg
ENERgy & SERVICES
sub-TOTAL: TEMpOrAry diffErEncEs
TOTAL dEfErrEd TAx LiAbiLiTiEs
(1) Arising on differences between tax and accounting treatments, and on consolidation adjustments.
28
1
29
29
39
7.5 maIN SOURCES OF dEFERREd TaXaTION
31/12/2014
31/12/2013
rEsTATEd
108
51
14
31
5
5
2
29
79
dEfErrEd TAx AssETs
EmPlOyEE bENEFITS
CUSTOmER waRRaNTIES
EXPECTEd lOSSES TO COmPlETION
PROVISIONS FOR CUSTOmER dISPUTES aNd bad dEbTS
TaX lOSSES aVaIlablE FOR CaRRy-FORwaRd
OThER SOURCES OF dEFERREd TaX aSSETS
dEfErrEd TAx LiAbiLiTiEs
TOTAL
93
47
14
17
11
6
(2)
29
64
7.6 PERIOd TO RECOVERy OF dEFERREd TaX aSSETS
31 December 2014
dEfErrEd TAx AssETs
40
Less than 2 to 5 years
2 years
61
15
More than 5
years
32
108
7.7 UNRECOgNISEd dEFERREd TaX aSSETS
31/12/2014
bOUygUES gROUP TaX ElECTION
OThER aSSETS
TOTAL
Financial report 2014
TOTAL
74
123
197
31/12/2013
rEsTATEd
72
103
175
Non-current and current debt
8.1 INTEREST-bEaRINg dEbT by maTURITy
549
Current
Non-current
0-3
months
2015
3-12
months
2015
TOTAL inTErEsT-bEAring dEbT
−
−
5
−
1
6
3
−
−
−
1
4
4
3
3
−
123
133
5
−
19
−
1
25
3
−
2
−
60
65
−
−
2
−
295
297
−
−
9
−
−
9
−
−
10
−
−
10
15
3
50
−
481
549
19
4
44
−
401
468
cOMpArATivE: 31/12/2013
rEsTATEd
2
8
168
134
7
136
4
9
468
−
dEbT
Financial report 2014
Note 8
1-2 years 2-3 years 3-4 years 4-5 years 5-6 years
2016
2017
2018
2019
2020
≥ 6 years
2021 +
later
TOTAL
31/12/2014
total
31/12/2013
restated
bONd ISSUES
baNk bORROwINgS
FINaNCE lEaSE OblIgaTIONS
OThER bORROwINgS
PaRTICIPaTINg dEbT
UNISERVICE dEbT
buiLding &
civiL
EnginEEring
FINaNCE lEaSE OblIgaTIONS
by bUSINESS SEgmENT
EnErgy &
sErvicEs
3
−
4
−
nOn-currEnT: 31/12/2014
CURRENT: 31/12/2014
nOn-currEnT: 31/12/2013 rEsTATEd
CURRENT: 31/12/2013 RESTaTEd
TOTAL
−
−
−
−
3
−
4
−
8.2 CONFIRmEd CREdIT FaCIlITIES aNd dRawdOwNS
Confirmed facilities - Maturity
< 1 year
1-5 years
Drawdowns - Maturity
>5 years
< 1 year
1-5 years
>5 years
TOTAL
bONd ISSUES
baNk bORROwINgS
OThER bORROwINgS
PaRTICIPaTINg dEbT
INTRa-gROUP bORROwINgS
TOTAL
−
3
7
−
−
10
−
86
508
−
−
594
−
−
19
−
−
19
−
89
534
−
−
623
TOTAL
−
3
7
−
−
10
−
12
508
−
−
520
−
−
19
−
−
19
−
15
534
−
−
549
41
8.3 LIQUIDITY AT 31 December 2014
As of 31 December 2014, the net cash position was €3,449 million, plus €74 million of undrawn confirmed medium-term
credit facilities as of that date.
See Note 4.6 for more details on cash and cash equivalents.
available cash
debt maturity schedule (1)
4 000
Undrawn
medium/
long-term
facilities
3 500
3 000
2 500
Net cash
position
2 000
1 500
1 000
500
0
Liquidity
2015
2016
2017
2018
2019
2020
2021 &
beyond
(1) Non-current debt (€539m) and current debt (€10m).
42
Consequently, the Bouygues Construction group is not exposed to liquidity risk.
The bank loans contracted by the Bouygues Construction group contain no financial covenants or trigger event clauses.
8.4 SPlIT OF CURRENT aNd NON-CURRENT dEbT by INTEREST RaTE TyPE
Split of current and non-current debt, including the effect of all open interest rate hedging contracts at the end of the reporting
period:
31/12/2013
rEsTATEd
31/12/2014
1%
99%
FIXEd RaTE (1)
VaRIablE RaTE
1%
99%
(1) Rates fixed for more than one year.
8.5 SPlIT OF dEbT by CURRENCy
euro
Pound
sterling
swiss
franc
us
dollar
Czech
koruna
Polish
zloty
Hong
Kong
dollar
Canadian
dollar
Other
TOTAL
Suisse
CURRENT: 31/12/2014
5
1
139
4
151
−
46
−
26
−
32
−
25
4
114
−
1
1
539
10
nOn-currEnT: 31/12/2013
rEsTATEd
9
130
148
85
25
32
27
1
1
458
CURRENT: 31/12/2013 RESTaTEd
3
3
−
−
−
−
3
−
1
10
Financial report 2014
nOn-currEnT: 31/12/2014
An analysis of debt by business segment is provided in Note 16, “Segment information”.
Change in net surplus cash
2,900
9.1 ChaNgE IN NET SURPlUS CaSh
31/12/2013
rEsTATEd
CaSh aNd CaSh EqUIValENTS
OVERdRaFTS aNd ShORT-TERm baNk bORROwINgS
nET cAsh pOsiTiOn
NON-CURRENT dEbT
CURRENT dEbT
FINaNCIal INSTRUmENTS – hEdgINg OF dEbT
dEbT
nET surpLus cAsh
3,811
(337)
3,474
(458)
(10)
−
(468)
3,006
Movements
during the
period
97
(122)
(25) (1)
(81)
−
−
(81)
(106)
Financial report 2014
Note 9
31/12/2014
3,908
(459)
3,449
(539)
(10)
−
(549)
2,900
(1) Net cash position as analysed in the cash flow statement.
9.2 PRINCIPal mOVEmENTS dURINg ThE PERIOd
nET surpLus cAsh AT 31 dEcEMbEr 2013: rEsTATEd
NET CaSh gENERaTEd by OPERaTINg aCTIVITIES
NET CaSh USEd IN INVESTINg aCTIVITIES
dIVIdENdS PaId
INCOmE FROm NET SURPlUS CaSh
EFFECT OF ChaNgES IN SCOPE OF CONSOlIdaTION ON dEbT
EFFECT OF EXChaNgE RaTES ON NET CaSh POSITION aNd dEbT
OThER mOVEmENTS
nET surpLus cAsh AT 31 dEcEMbEr 2014
3,006
235
(166)
(277)
15
(16)
92
11
2,900
43
Note 10
Other current liabilities
10.1 TRadE PayablES aNd OThER CURRENT lIabIlITIES
6,433
31/12/2013
rEsTATEd
31/12/2014
535
65
2,888
2,945
458
488
464
1,535
AdvAncEs And dOwn-pAyMEnTs rEcEivEd On OrdErs
currEnT TAxEs pAyAbLE
TrAdE pAyAbLEs
OThEr currEnT LiAbiLiTiEs
EmPlOyEE-RElaTEd aNd SOCIal SECURITy lIabIlITIES
amOUNTS dUE TO gOVERNmENT aNd lOCal aUThORITIES
OThER CURRENT lIabIlITIES
dEFERREd INCOmE
687
64
2,799
2,634
445
444
283
1,462
10.2 OVERdRaFTS aNd ShORT-TERm baNk bORROwINgS
euro
Hong Kong
dollar
cfA
franc
Pound
sterling
us
dollar
Canadian
dollar
Other
59
142
47
37
13
68
93
euro
Hong Kong
dollar
cfA
franc
Pound
sterling
us
dollar
Canadian
dollar
Other
94
25
35
21
2
49
SPlIT by CURRENCy:
31/12/2014
OVERdRaFTS aNd
ShORT-TERm baNk
bORROwINgS
44
SPlIT by CURRENCy:
31/12/2013
RESTaTEd
OVERdRaFTS aNd
ShORT-TERm baNk
bORROwINgS
111
10.3 OThER CURRENT FINaNCIal lIabIlITIES
See Note 17, “Financial instruments”.
Financial report 2014
459
TOTAL
459
TOTAL
337
34
Financial report 2014
Note 11
Sales and other revenues from operations
11.1 aNalySIS by aCCOUNTINg ClaSSIFICaTION
2013
rEsTATEd (1)
2014 (1)
118
2,267
9,341
11,726
106
11,832
SalES OF gOOdS
SalES OF SERVICES
CONSTRUCTION CONTRaCTS
sALEs
OThEr rEvEnuEs frOM OpErATiOns
TOTAL
106
2,033
8,962
11,101
95
11,196
(1) There were no exchanges of goods or services during the period.
INFORmaTION abOUT CONSTRUCTION CONTRaCTS
aS aT 31 dECEmbER 2014
AssETs
666
198
UNbIllEd wORkS
waRRaNTy RETENTIONS
LiAbiLiTiEs
1,289
418
wORkS bIllEd IN adVaNCE
adVaNCE PaymENTS RECEIVEd
cOsTs incurrEd sincE incEpTiOn On cOnTrAcTs in prOgrEss
(plus recognised profits, minus recognised losses)
17,486
45
11.2 aNalySIS OF SalES by bUSINESS SEgmENT
2013 sales restated
2014 sales
bUSINESS SEgmENT
bUIldINg & CIVIl ENgINEERINg
ENERgy & SERVICES
TOTAL sALEs
% chAngE 2014 vs. 2013
frAncE
4,893
1,066
5,959
−1%
% Of
TOTAL
sALEs
France
International
TOTAL
5,156 10,049
611
1,677
5,767 11,726
13%
6%
86%
14%
100%
−
4,934
1,071
6,005
−
4,652
444
5,096
−
inTErnATiOnAL
total % of total
sales
9,586
1,515
11,101
−
86%
14%
100%
−
11.3 aNalySIS OF SalES by gEOgRaPhICal aREa
2013 sales restated
2014 sales
aNalySIS by gEOgRaPhICal
aREa
FRaNCE
EUROPEaN UNION
REST OF EUROPE
aFRICa
mIddlE EaST
amERICaS
aSIa- PaCIFIC
TOTAL
TOTAL
% Of TOTAL
sALEs
5,959
1,635
864
825
186
563
1,694
11,726
50.8%
13.9%
7.4%
7.0%
1.6%
4.8%
14.5%
100%
total
% of total sales
6,005
1,363
839
739
174
404
1,577
11,101
54.1 %
12.3 %
7.5 %
6.7 %
1.6 %
3.6 %
14.2 %
100 %
11.4 aNalySIS OF SalES by TyPE OF CONTRaCT (%)
2014
TyPE OF CONTRaCT
2013 restated
frAncE
inTErnATiOnAL
TOTAL
frAncE
inTErnATiOnAL
TOTAL
47%
53%
54%
46%
51%
49%
45%
55%
57%
43%
50%
50%
PUblIC-SECTOR CONTRaCTS (1)
PRIVaTE-SECTOR CONTRaCTS
(1) Sales billed directly to government departments, local authorities or public enterprises in France and abroad.
Note 12
operating profit
CURRENT OPERaTINg PROFIT
SalES
OThER REVENUES FROm OPERaTIONS
PURChaSES USEd IN PROdUCTION aNd EXTERNal ChaRgES
PERSONNEl COSTS
TaXES OThER ThaN INCOmE TaX
46
NeT DeprecIATIoN & AmorTIsATIoN expeNse
NeT chArges To provIsIoNs & ImpAIrmeNT Losses
ChaNgE IN PROdUCTION aNd PROPERTy dEVElOPmENT INVENTORIES
2013
rEsTATEd
2014
11,726
106
(8,505)
(2,593)
(157)
(181)
(350)
3
11,101
95
(7,912)
(2,515)
(174)
(192)
(265)
7
237
14
10
25
335
−
335
224
13
(2)
57
437
−
437
OThER INCOmE aNd EXPENSES ON OPERaTIONS:
REVERSalS OF ImPaIRmENT lOSSES aNd UNUSEd PROVISIONS
NET gaINS ON dISPOSalS OF NON-CURRENT aSSETS
NET FOREIgN EXChaNgE gaINS/(lOSSES)
OThER INCOmE/(EXPENSES)
sub-TOTAL: currEnT OpErATing prOfiT
OThEr OpErATing incOME And ExpEnsEs
OpErATing prOfiT
Financial report 2014
An analysis by business segment is provided in Note 16.
Financial report 2014
Note 13
Income from net surplus cash and other financial income
and expenses
13.1 COmPONENTS OF INCOmE FROm NET SURPlUS CaSh
2013
rEsTATEd
2014
(6)
21
15
−
(6)
−
−
(6)
21
−
−
21
COST OF dEbT
INCOmE FROm CaSh aNd CaSh EqUIValENTS
incOME frOM nET surpLus cAsh
INCOmE FROm NET SURPlUS CaSh COmPRISES:
NET INTEREST EXPENSE ON dEbT
INTEREST EXPENSE ON FINaNCE lEaSES
ImPaCT OF FINaNCIal INSTRUmENTS ON dEbT
sub-TOTAL
NET INTEREST INCOmE FROm CaSh aNd CaSh EqUIValENTS
ImPaCT OF FINaNCIal INSTRUmENTS ON NET CaSh POSITION
INCOmE FROm aVaIlablE-FOR-SalE FINaNCIal aSSETS aNd CaSh EqUIValENTS
sub-TOTAL
(7)
27
20
−
(7)
−
−
(7)
27
−
−
27
13.2 bREakdOwN OF OThER FINaNCIal INCOmE aNd EXPENSES
2013
rEsTATEd
2014
dIVIdENdS FROm NON-CONSOlIdaTEd COmPaNIES
NET (INCREaSE)/dECREaSE IN FINaNCIal PROVISIONS
NET dISCOUNTINg EXPENSE
ChaNgE IN FaIR ValUE OF OThER FINaNCIal aSSETS aNd lIabIlITIES
CURRENT aCCOUNT waIVERS, gaINS aNd lOSSES ON dISPOSalS OF INVESTmENTS IN
NON-CONSOlIdaTEd COmPaNIES aNd OF OThER FINaNCIal aSSETS, NET INTEREST
OThER ThaN ON dEbT, aNd OThER ITEmS
OThEr finAnciAL incOME/(ExpEnsEs), nET
An analysis by business segment is provided in Note 16.
8
8
−
−
13
(23)
−
−
5
6
21
(4)
47
note 14
income tax expense
14.1 AnAlysis oF income tAx expense
2014
tAx pAyAble to the tAx Authorities
chAnge in deFerred tAx liAbilities (1) (2)
chAnge in deFerred tAx Assets (1) (2)
dividend tAxes
tOtal
2013 restated
France
Other
cOuntries
tOtal
France
Other
cOuntries
tOtal
(94)
2
9
0
(83)
(41)
2
0
(2)
(41)
(135)
4
9
(2)
(124)
(95)
3
(5)
−
(97)
(52)
1
(2)
(12)
(65)
(147)
4
(7)
(12)
(162)
An analysis by business segment is provided in Note 16.
2014
2013 restated
temporary differences
14
1
tax loss carry-forwards
(1)
(4)
−
−
differences from prior periods
not previously recognised:
−
−
current taxes
−
−
−
−
(1) Includes deferred taxes arising from
changes in tax rates or new taxes
48
(2) Includes tax charges/credits on temporary
deferred taxes
14.2 tAx prooF (reconciliAtion between stAndArd tAx rAte
And eFFective tAx rAte)
Differences between the standard corporate income tax rate applicable in France and the
effective tax rate based on the consolidated financial statements are explained as follows:
2014
stAndArd tAx rAte in FrAnce
diFFerences in tAx rAtes between FrAnce And other countries
unrecognised deFerred tAx Assets And creAtion/utilisAtion oF tAx loss
cArry-ForwArds
eFFect oF permAnent diFFerences
FlAt-rAte And reduced-rAte tAxes
dividend tAxes
other
Financial report 2014
eFFective tax rate
2013 restated
34.43%
− 1.47%
34.43%
− 1.94%
7.05%
3.81%
− 8.08%
3.02%
0.60%
− 2.55%
33.00%
− 4.79%
2.48%
2.80%
0.05%
36.84%
basic and diluted earnings per share
Basic earnings per share is calculated by dividing net profit attributable to the Group by the weighted average number
of shares outstanding during the year (excluding the average number of ordinary shares bought and held as treasury
shares), i.e. 1,706,230 shares.
2014
NET PROFIT aTTRIbUTablE TO ThE gROUP
wEIghTEd aVERagE NUmbER OF ShaRES OUTSTaNdINg
bAsic EArnings pEr shArE
€254m
1,706,230
€148.87
Financial report 2014
Note 15
2013
rEsTATEd
€277m
1,706,230
€162.35
Diluted earnings per share is calculated by reference to the weighted average number of shares outstanding, adjusted
for the conversion of all potentially dilutive shares. Because Bouygues Construction does not use dilutive instruments,
there is no difference between basic earnings per share and diluted earnings per share.
2014
NET PROFIT USEd TO CalCUlaTE dIlUTEd EaRNINgS PER ShaRE
wEIghTEd aVERagE NUmbER OF ShaRES OUTSTaNdINg USEd TO CalCUlaTE
dIlUTEd EaRNINgS PER ShaRE
diLuTEd EArnings pEr shArE
2013
rEsTATEd
€254m
€277m
1,706,230
1,706,230
€148.87
€162.35
49
Note 16
Segment information
The operating segments used are those reviewed by the chief operational decision-maker of the Group, and are not
aggregated for segment reporting purposes. The table below shows the contribution made by each business segment
to key items in the income statement, balance sheet and cash flow statement.
16.1 ANALYSIS BY BUSINESS SEGMENT: YEAR ENDED 31 DECEMBER 2014
2014
Building & Civil
EnginEEring
EnErgy
& SErviCES
TOTAl
inCOME STATEMEnT
10,110
(61)
10,049
310
−
310
17
18
(115)
(9)
221
−
221
221
1,789
(112)
1,677
25
−
25
(2)
3
(9)
15
32
−
32
33
11,899
(173)
11,726
335
−
335
15
21
(124)
6
253
−
253
254
642
30
239
75
93
38
3,780
3,652
−
−
513
782
29
60
439
6,094
−
−
42
21
289
−
15
17
128
745
−
−
26
80
−
5
20
917
−
−
684
51
528
75
108
55
3,908
4,397
−
9,806
539
862
29
65
459
7,011
841
9,806
CASh FLow
pURChASE pRICE oF pRopERTY, pLANT & EqUIpMENT AND INTANGIBLE ASSETS (3)
pURChASE pRICE oF NoN-CoNSoLIDATED CoMpANIES AND oThER INvESTMENTS
pURChASE pRICE oF INvESTMENTS IN CoNSoLIDATED CoMpANIES (4)
DEpRECIATIoN/AMoRTISATIoN oF pRopERTY, pLANT & EqUIpMENT AND INTANGIBLE ASSETS
oThER NoN-CASh ExpENSES/(income) (5)
OThEr indiCATOrS
443
(217)
(1)
−
165
(31)
37
(23)
−
(55)
16
(8)
480
(240)
(1)
(55)
181
(39)
EBITDA
NET SURpLUS CASh/(net debt) (6)
FREE CASh FLow
585
2,838
195
44
62
4
629
2,900
199
ToTAL SALES
INTER-SEGMENT SALES
Third-pArTy SAlES
CurrEnT OpErATing prOfiT
oThER opERATING INCoME AND ExpENSES
OpErATing prOfiT
INCoME FRoM NET SURpLUS CASh/(cost of net debt)
oThER FINANCIAL INCoME/(ExpENSES), NET
INCoME TAx ExpENSE
ShARE oF pRoFITS/(LoSSES) oF joINT vENTURES AND ASSoCIATES
nET prOfiT frOM COnTinuing OpErATiOnS
NET pRoFIT FRoM DISCoNTINUED AND hELD-FoR-SALE opERATIoNS
nET prOfiT
nET prOfiT ATTriBuTABlE TO ThE grOup
BAlAnCE ShEET
50
pRopERTY, pLANT AND EqUIpMENT (1)
INTANGIBLE ASSETS
GooDwILL
INvESTMENTS IN joINT vENTURES AND ASSoCIATES
DEFERRED TAx ASSETS AND NoN-CURRENT TAx RECEIvABLE
CURRENT TAx ASSETS (tax receivable)
CASh AND CASh EqUIvALENTS
oThER SEGMENTAL ASSETS
UNALLoCATED ASSETS
TOTAl ASSETS
NoN-CURRENT DEBT
NoN-CURRENT pRovISIoNS
DEFERRED TAx LIABILITIES AND NoN-CURRENT TAx LIABILITIES
CURRENT TAxES pAYABLE
ovERDRAFTS AND ShoRT-TERM BANk BoRRowINGS
oThER SEGMENTAL LIABILITIES (2)
UNALLoCATED LIABILITIES
TOTAl liABiliTiES And ShArEhOldErS’ EquiTy
Financial report 2014
CASh flOW STATEMEnT
(1) Including assets held under finance leases.
(2) Trade payables, advance payments received, current provisions, etc.
(3) Net of investment grants obtained.
(4) Net of cash acquired and debt assumed on acquisitions.
(5) Net charges to non-current provisions and impairment losses.
(6) Segment-level contribution.
Financial report 2014
16.2 ANALYSIS BY BUSINESS SEGMENT: YEAR ENDED 31 DECEMBER 2013
2013 RESTATED
Building & Civil
EnginEEring
EnErgy
& SErviCES
TOTAl
inCOME STATEMEnT
9,674
(88)
9,586
407
−
407
22
(5)
(149)
(13)
262
−
262
261
1,594
(79)
1,515
30
−
30
(2)
1
(13)
−
16
−
16
16
11,268
(167)
11,101
437
−
437
20
(4)
(162)
(13)
278
−
278
277
592
33
233
75
76
22
3,713
3,415
−
−
453
797
29
58
308
5,777
−
−
28
17
250
−
17
15
98
665
−
−
5
91
−
6
29
782
−
−
620
50
483
75
93
37
3,811
4,080
−
9,249
458
888
29
64
337
6,559
914
9,249
CASh FLow
pURChASE pRICE oF pRopERTY, pLANT & EqUIpMENT AND INTANGIBLE ASSETS (3)
pURChASE pRICE oF NoN-CoNSoLIDATED CoMpANIES AND oThER INvESTMENTS
pURChASE pRICE oF INvESTMENTS IN CoNSoLIDATED CoMpANIES (4)
DEpRECIATIoN/AMoRTISATIoN oF pRopERTY, pLANT & EqUIpMENT AND INTANGIBLE ASSETS
oThER NoN-CASh ExpENSES/(income) (5)
OThEr indiCATOrS
579
(180)
(2)
(1)
175
17
53
(12)
−
−
17
8
632
(192)
(2)
(1)
192
25
EBITDA
NET SURpLUS CASh/(net debt) (6)
FREE CASh FLow
631
2,945
301
39
61
30
670
3,006
331
ToTAL SALES
INTER-SEGMENT SALES
Third-pArTy SAlES
CurrEnT OpErATing prOfiT
oThER opERATING INCoME AND ExpENSES
OpErATing prOfiT
INCoME FRoM NET SURpLUS CASh/(cost of net debt)
oThER FINANCIAL INCoME/(ExpENSES), NET
INCoME TAx ExpENSE
ShARE oF pRoFITS/(losses) oF joINT vENTURES AND ASSoCIATES
nET prOfiT frOM COnTinuing OpErATiOnS
NET pRoFIT FRoM DISCoNTINUED AND hELD-FoR-SALE opERATIoNS
nET prOfiT
nET prOfiT ATTriBuTABlE TO ThE grOup
BAlAnCE ShEET
pRopERTY, pLANT AND EqUIpMENT (1)
INTANGIBLE ASSETS
GooDwILL
INvESTMENTS IN joINT vENTURES AND ASSoCIATES
DEFERRED TAx ASSETS AND NoN-CURRENT TAx RECEIvABLE
CURRENT TAx ASSETS (tax receivable)
CASh AND CASh EqUIvALENTS
oThER SEGMENTAL ASSETS
UNALLoCATED ASSETS
TOTAl ASSETS
NoN-CURRENT DEBT
NoN-CURRENT pRovISIoNS
DEFERRED TAx LIABILITIES AND NoN-CURRENT TAx LIABILITIES
CURRENT TAxES pAYABLE
ovERDRAFTS AND ShoRT-TERM BANk BoRRowINGS
oThER SEGMENTAL LIABILITIES (2)
UNALLoCATED LIABILITIES
TOTAl liABiliTiES And ShArEhOldErS’ EquiTy
CASh flOW STATEMEnT
(1) Including assets held under finance leases.
(2) Trade payables, advance payments received, current provisions, etc.
(3) Net of investment grants obtained.
(4) Net of cash acquired and debt assumed on acquisitions.
(5) Net charges to non-current provisions and impairment losses.
(6) Segment-level contribution.
51
16.3 ANALYSIS BY GEoGRAphICAL AREA
france
European
union
rest of
Europe
Africa
5,959
1,635
864
385
44
25
6
(81)
ACqUISITIoNS oF INvESTMENTS IN
NoN-CoNSoLIDATED CoMpANIES
AND oThER INvESTMENTS
ACqUISITIoNS oF INvESTMENTS IN
CoNSoLIDATED CoMpANIES,
NET oF ACqUIRED CASh
2014
AsiaPacificOceania
Americas
825
1,694
563
186
11,726
29
−
106
−
119
−
18
1
2
−
684
51
(6)
(7)
(43)
(94)
(8)
(1)
(240)
(1)
−
−
−
−
−
−
(1)
−
−
−
−
−
(55)
−
(55)
france
European
union
rest of
Europe
Africa
AsiaPacificOceania
Americas
Middle
East
6,005
1,363
839
739
1,577
404
174
11,101
373
45
26
5
36
−
110
−
65
−
7
−
3
−
620
50
(88)
(8)
(19)
(46)
(27)
(3)
(1)
(192)
(1)
−
−
(1)
−
−
−
(2)
−
−
−
−
−
−
−
0
(incl. overseas
departments)
Middle
East
TOTAl
inCOME STATEMEnT
ThIRD-pARTY SALES
BAlAnCE ShEET
pRopERTY, pLANT AND EqUIpMENT (1)
INTANGIBLE ASSETS
CASh flOW STATEMEnT
ACqUISITIoNS oF pRopERTY, pLANT &
EqUIpMENT AND INTANGIBLE ASSETS
(1) Including assets held under finance leases.
2013 RESTATED
(incl. overseas
departments)
TOTAl
52
inCOME STATEMEnT
ThIRD-pARTY SALES
BAlAnCE ShEET
pRopERTY, pLANT AND EqUIpMENT (1)
INTANGIBLE ASSETS
CASh flOW STATEMEnT
ACqUISITIoNS oF pRopERTY, pLANT &
EqUIpMENT AND INTANGIBLE ASSETS
ACqUISITIoNS oF INvESTMENTS
IN NoN-CoNSoLIDATED CoMpANIES
AND oThER INvESTMENTS
ACqUISITIoNS oF INvESTMENTS
IN CoNSoLIDATED CoMpANIES,
NET oF ACqUIRED CASh
Financial report 2014
(1) Including assets held under finance leases.
Financial instruments
The disclosures presented below show the aggregate notional amounts at 31 December 2014 for each type of financial
instrument used, split by residual maturity for interest rate hedges and by currency for currency hedges.
Financial report 2014
Note 17
17.1 INTEREST RATE AND CURRENCY hEDGES
17.1.1 Analysis by business segment
Building & Civil
Engineering
ANALYSIS BY BUSINESS SEGMENT (€ million)
Energy
& Services
474
237
16
3
−
8
738
FoRwARD pURChASES
FoRwARD SALES
CURRENCY SwApS
INTEREST RATE SwApS (1)
INTEREST RATE opTIoNS (CApS, FLooRS)
CoMMoDITIES DERIvATIvES
TOTAl
TOTAl
31/12/2014
98
6
1
−
−
−
105
Total
31/12/2013
restated
572
243
17
3
−
8
843
277
198
11
1
15
−
502
(1) Of which pay fixed rate: €3m.
17.1.2 Analysis by maturity and original currency
Maturity
ANALYSIS BY MATURITY
AND oRIGINAL CURRENCY
(€ million)
FoRwARD pURChASES
FoRwARD SALES
CURRENCY SwApS
INTEREST RATE SwApS
INTEREST RATE opTIoNS (CApS, FLooRS)
CoMMoDITIES DERIvATIvES
TOTAl
< 1 year
Original currency
1 - 5 years > 5 years
Eur
Chf
gBp
uSd
Cny
hrK
hKd
Other
TOTAl
53
395
194
17
−
−
7
613
177
49
−
3
−
1
230
−
−
−
−
−
−
−
572
243
17
3
−
8
843
379
33
−
3
−
1
416
8
7
−
−
−
−
15
1
22
−
−
−
−
23
69
112
−
−
−
7
188
46
−
−
−
−
−
46
58
−
−
−
−
−
58
−
43
−
−
−
−
43
11
26
17
−
−
−
54
17.2 MARkET vALUE oF hEDGING INSTRUMENTS
Original currency
DERIvATIvES RECoGNISED
AS ASSETS (€M)
FoRwARD pURChASES
FoRwARD SALES
CURRENCY SwApS
INTEREST RATE SwApS
INTEREST RATE opTIoNS (CApS, FLooRS)
CoMMoDITIES DERIvATIvES
TOTAl rECOgniSEd AS ASSETS
Eur
uSd
gBp
Chf
Other
TOTAl
−
3
−
−
−
−
3
2
−
−
−
−
−
2
Eur
uSd
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
Chf
Other
2
3
−
−
−
−
5
fair value
hedge
Cash flow
hedge
hedge
of net inv. in
foreign op.
−
−
−
−
−
−
−
2
3
−
−
−
−
5
−
−
−
−
−
−
−
fair value
hedge
Cash flow
hedge
hedge
of net inv. in
foreign op.
(4)
(4)
−
−
−
−
(8)
(8)
(16)
(9)
−
−
−
(1)
(26)
(21)
−
−
−
−
−
−
−
−
Original currency
DERIvATIvES RECoGNISED
AS LIABILITIES (€M)
FoRwARD pURChASES
FoRwARD SALES
CURRENCY SwApS
54
INTEREST RATE SwApS
INTEREST RATE opTIoNS (CApS, FLooRS)
CoMMoDITIES DERIvATIvES
TOTAl rECOgniSEd AS liABiliTiES
TOTAl nET ASSET/(liABiliTy)
gBp
TOTAl
(17)
−
−
−
−
−
(17)
(14)
−
(10)
−
−
−
(1)
(11)
(9)
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
(3)
(3)
−
−
−
−
(6)
(6)
(20)
(13)
−
−
−
(1)
(34)
(29)
In the event of a +1.00% movement in the yield curve, the hedging instruments portfolio would have a negative market value
of €28.3m; in the event of a -1.00% movement, it would have a negative market value of €28.7m.
In the event of a 1% adverse movement in the euro against each of the other currencies, the hedging instruments portfolio
would have a negative market value of €33.3m.
Financial report 2014
These calculations were prepared by the Bouygues Construction group, or obtained from the banks with which the
instruments were contracted.
off balance sheet commitments at 31 December 2014
This note discloses information about guarantee commitments, sundry contractual commitments, and lease commitments.
Financial report 2014
Note 18
18.1 GUARANTEE CoMMITMENTS
31/12/2014
lESS ThAn 1 yEAr
5
79
84
−
−
−
pLEDGES, MoRTGAGES AND CoLLATERAL
GUARANTEES AND ENDoRSEMENTS GIvEN (1)
TOTAl guArAnTEE COMMiTMEnTS givEn
pLEDGES, MoRTGAGES AND CoLLATERAL
GUARANTEES AND ENDoRSEMENTS RECEIvED
TOTAl guArAnTEE COMMiTMEnTS rECEivEd
−
23
23
−
−
−
1 TO 5 yEArS
MOrE ThAn 5 yEArS
4
51
55
−
−
−
1
5
6
−
−
−
(1) In connection with its ordinary activities, the Bouygues Construction group grants multi-year guarantees (such as ten-year building guarantees), which are usually covered by
statistically-based provisions on the liabilities side of the balance sheet. Contract guarantees provided by banks to Group customers represent off balance sheet commitments for
those banks. Where such guarantees are liable to result in payments being made, a provision is recognised in the Group’s consolidated balance sheet.
18.2 SUNDRY CoNTRACTUAL CoMMITMENTS
31/12/2014
lESS ThAn 1 yEAr
−
−
−
−
−
−
−
−
LUMp-SUM RETIREMENT BENEFIT oBLIGATIoNS
UNMATURED BILLS
oThER
TOTAl Sundry COnTrACTuAl COMMiTMEnTS givEn
LUMp-SUM RETIREMENT BENEFIT oBLIGATIoNS
UNMATURED BILLS
oThER
TOTAl Sundry COnTrACTuAl COMMiTMEnTS rECEivEd
1 TO 5 yEArS
−
−
−
−
−
−
−
−
MOrE ThAn 5 yEArS
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
No material off balance sheet commitments have been omitted from this disclosure, in accordance with applicable
accounting standards.
18.3 opERATING LEASES
31/12/2014
lESS ThAn 1 yEAr
48
opERATING LEASE CoMMITMENTS (given/received)
9
1 TO 5 yEArS
MOrE ThAn 5 yEArS
27
12
These figures show the minimum future lease payments due until the normal renewal date of the lease (or earliest potential
termination date) under operating leases relating to current operations (land, buildings, plant & equipment, etc.).
18.4 FINANCE LEASES (already recognised as liabilities in the balance sheet)
31/12/2014
FINANCE LEASE CoMMITMENTS
lESS ThAn 1 yEAr
3
−
1 TO 5 yEArS
MOrE ThAn 5 yEArS
3
−
55
Note 18
Off balance sheet commitments at 31 december 2013
This note discloses information about guarantee commitments, sundry contractual commitments, and lease commitments.
18.5 GUARANTEE COMMITMENTS
31/12/2013
restated
less than 1 year
5
13
18
−
−
−
PlEdGES, MORTGAGES ANd COllATERAl
GUARANTEES ANd ENdORSEMENTS GIvEN (1)
total guarantee commitments given
PlEdGES, MORTGAGES ANd COllATERAl
GUARANTEES ANd ENdORSEMENTS RECEIvEd
total guarantee commitments received
1 to 5 years
0
8
8
−
−
−
more than 5 years
4
5
9
−
−
−
1
−
1
−
−
−
(1) In connection with its ordinary activities, the Bouygues Construction group grants multi-year guarantees (such as ten-year building guarantees), which are usually covered by
statistically-based provisions on the liabilities side of the balance sheet. Contract guarantees provided by banks to Group customers represent off balance sheet commitments
for those banks. Where such guarantees are liable to result in payments being made, a provision is recognised in the Group’s consolidated balance sheet.
18.6 SUNdRY CONTRACTUAl COMMITMENTS
31/12/2013
restated
56
less than 1 year
−
−
−
−
−
−
−
−
lUMP-SUM RETIREMENT bENEFIT OblIGATIONS
UNMATUREd bIllS
OThER
total sundry contractual commitments given
lUMP-SUM RETIREMENT bENEFIT OblIGATIONS
UNMATUREd bIllS
OThER
total sundry contractual commitments received
1 to 5 years
−
−
−
−
−
−
−
−
more than 5 years
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
No material off balance sheet commitments have been omitted from this disclosure, in accordance with applicable
accounting standards.
18.7 OPERATING lEASES
31/12/2013
restated
less than 1 year
46
OPERATING lEASE COMMITMENTS (given/received)
8
1 to 5 years
more than 5 years
27
11
These figures show the minimum future lease payments due until the normal renewal date of the lease (or earliest potential
termination date) under operating leases relating to current operations (land, buildings, plant & equipment, etc.).
Financial report 2014
18.8 FINANCE lEASES (already recognised as liabilities in the balance sheet)
31/12/2013
restated
FINANCE lEASE COMMITMENTS
less than 1 year
4
−
1 to 5 years
more than 5 years
4
−
Financial report 2014
Note 19
employee benefit obligations
19.1 EMPLOYEE BENEFIT OBLIGATIONS
Movements
during 2014
31/12/2013
restated
148
31
1
180
LuMP-SuM rETIrEMENT BENEFITS
LONG SErvIcE AwArdS
OThEr POST-EMPLOYMENT BENEFITS (pensions)
tOtaL
31/12/2014
15
2
1
18
163
33
2
198
These obligations are covered by provisions, recorded as non-current liabilities.
19.2 EMPLOYEE BENEFIT OBLIGATIONS: PENSIONS ANd
OThEr POST-EMPLOYMENT BENEFITS, EXcLudING LONG-SErvIcE AwArdS
19.2.1 Defined-contribution plans
2013
restated
2014
197
aMOunt recOgnised as an expense
189
The figures disclosed above are the contributions paid to pension funds for compulsory and top-up schemes.
19.2.2 Defined-benefit plans (retirement benefit obligations)
NET EXPENSE rEcOGNISEd IN ThE INcOME
statement (as an operating item)
currENT SErvIcE cOST
INTErEST EXPENSE ON OBLIGATION
EXPEcTEd rETurN ON PLAN ASSETS
net recogniseD actuarial gains/(losses)
PAST SErvIcE cOST
net expense recOgnised in the incOMe stateMent
AcTuAL rETurN ON PLAN ASSETS
57
Lump-sum retirement benefits
2013
restated
2014
(4)
5
−
−
−
1
−
(2)
5
−
−
−
3
−
pensions
2013
restated
2014
1
1
(1)
(1)
−
0
−
1
1
(1)
(1)
−
0
−
AMOUNTS RECOGNISEd IN ThE bAlANCE ShEET
PRESENT vAlUE OF OblIGATION
FAIR vAlUE OF PlAN ASSETS
NET UNRECOGNISEd ACTUARIAl GAINS/(lOSSES)
UNRECOGNISEd PAST SERvICE COST
net obligation recognised
MOvEMENT IN bAlANCE ShEET ITEMS
1 January
EXPENSE RECOGNISEd
ChANGES IN SCOPE OF CONSOlIdATION
ChANGES IN ACCOUNTING POlICY ANd OThER MOvEMENTS
ACTUARIAl GAINS/lOSSES RECOGNISEd dIRECTlY IN EqUITY
31 december
Lump-sum retirement benefits
31/12/2013
31/12/2014
restated
164
−
(1)
−
163
148
−
−
−
148
Lump-sum retirement benefits
2013
restated
2014
148
1
−
−
14
163
MAIN ACTUARIAl ASSUMPTIONS USEd
TO MEASURE POST-EMPlOYMENT bENEFIT
PlAN OblIGATIONS
pensions
31/12/2013
31/12/2014
restated
24
(22)
−
−
2
19
(18)
−
−
1
pensions
2013
restated
2014
140
3
−
−
5
148
1
−
−
−
1
2
31/12/2014
1
−
−
−
−
1
31/12/2013
restated
58
discount rate
lUMP-SUM RETIREMENT bENEFITS (1)
PENSIONS
mortality table
salary inflation rate
lUMP-SUM RETIREMENT bENEFITS
PENSIONS
Financial report 2014
(1) A reduction of 50 basis points in the discount rate would increase the obligation by €9m as of 31 December 2014.
Under Group accounting policies, this actuarial loss would have been recognised directly in equity.
2.01%
3.24%
(IbOXX € CORPORATE A10+)
(IbOXX € CORPORATE A10+)
3.6%
INSEE
−
1.4 to 2.7%
3.35%
4.6%
INSEE
−
1.6 to 3.0%
4.0%
Financial report 2014
Note 20
Disclosures on related parties and on remuneration
of directors and senior executives
20.1. rELATEd-PArTY dIScLOSurES
expenses
income
2013
restated
2014
receivables
2013
restated
2014
Liabilities
2014
2013
restated
2013
restated
2014
(164)
(42)
(1)
(6)
(213)
−
−
−
(159)
(15)
(6)
(4)
(184)
−
−
−
306
151
95
29
581
−
−
−
309
162
141
46
658
−
−
−
3,234 (1)
238
33
44
3,549
3,521
17
11
3,230
235
44
48
3,557
3,496
43
18
834
146
4
43
1,027
547
480
−
628
92
41
30
791
392
399
−
OF whIch BAd dEBT wrITE-OFFS
−
−
−
−
−
−
−
−
OF whIch IMPAIrMENT OF rEcEIvABLES
−
−
−
−
106
106
−
−
PArTIES wITh AN OwNErShIP INTErEST
JOINT OPErATIONS
JOINT vENTurES ANd ASSOcIATES
OThEr rELATEd PArTIES
tOtaL
duE wIThIN LESS ThAN 1 YEAr
duE wIThIN 1 TO 5 YEArS
duE AFTEr MOrE ThAN 5 YEArS
(1) Includes Bouygues Relais €2,132m, Uniservice €1,010m
The off balance sheet commitments disclosed in Note 18 to these consolidated financial statements include €74m of
commitments to related parties.
20.2. dIScLOSurES ABOuT rEMuNErATION ANd BENEFITS PAId
TO dIrEcTOrS ANd SENIOr EXEcuTIvES
• Disclosures about senior executives cover members of the Executive Committee in post on 31 December 2014.
• Direct remuneration amounted to €11,430k comprising €7,196k of basic remuneration, €4,234k of variable
remuneration payable in 2015 on the basis of 2014 performance, and €25k of directors’ fees.
• Short-term benefits: none.
• Post-employment benefits: members of the Executive Committee belong to a top-up retirement plan based
on 0.92% of their reference salary for each year’s membership of the plan. This top-up plan is contracted out to an
insurance company. Contributions paid into the fund managed by the insurance company amounted to €858k in 2014.
• Long-term benefits: none.
• Termination benefits: these comprise lump-sum retirement benefits of €3,570k as of 31 December 2014.
• Share-based payment: 307,000 stock options were awarded on 27 March 2014, at an exercise price of €30.32.
The earliest exercise date is 28 March 2018.
59
Note 21
Additional cash flow statement information
CASH FLOWS OF ACQUIRED AND DIVESTED SUBSIDIARIES
Breakdown by business segment of cash flows resulting from acquisitions and divestments of consolidated companies.
Building &
Civil
EnginEEring
CASH DIVESTED OR ACQUIRED
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
(8)
(3)
(34)
(1)
−
(32)
−
19
−
1
−
(34)
(92)
−
5
32
(8)
(3)
(34)
(1)
−
(32)
−
19
−
1
−
(34)
(92)
−
5
32
nET CASh flOw AriSing frOm divESTmEnTS/
(ACquiSiTiOnS) Of COnSOlidATEd COmPAniES
−
(55)
(55)
PROPERTy, PLANT AND EQUIPmENT
INTANgIBLE ASSETS
gOODWILL
NON-CURRENT FINANCIAL ASSETS
DEFERRED TAx ASSETS AND NON-CURRENT TAx RECEIVABLE
CASH AND CASH EQUIVALENTS
ImPACT ON EQUITy
NON-CURRENT AND CURRENT DEBT
NON-CURRENT PROVISIONS
DEFERRED TAx LIABILITIES AND NON-CURRENT TAx LIABILITIES
OVERDRAFTS AND SHORT-TERm BANk BORROWINgS
WORkINg CAPITAL NEEDS
nET divESTmEnT/(acquisition) COST
gAINS ON DIVESTmENTS OF CONSOLIDATED COmPANIES
RECEIVABLES ON DISPOSALS/LIABILITIES ON ACQUISITIONS
60
Building &
Civil
EnginEEring
PROPERTy, PLANT AND EQUIPmENT
INTANgIBLE ASSETS
gOODWILL
NON-CURRENT FINANCIAL ASSETS
DEFERRED TAx ASSETS AND NON-CURRENT TAx RECEIVABLE
CASH AND CASH EQUIVALENTS
ImPACT ON EQUITy
NON-CURRENT AND CURRENT DEBT
NON-CURRENT PROVISIONS
DEFERRED TAx LIABILITIES AND NON-CURRENT TAx LIABILITIES
OVERDRAFTS AND SHORT-TERm BANk BORROWINgS
WORkINg CAPITAL NEEDS
nET divESTmEnT/(acquisition) COST
gAINS ON DIVESTmENTS OF CONSOLIDATED COmPANIES
RECEIVABLES ON DISPOSALS/LIABILITIES ON ACQUISITIONS
CASH DIVESTED OR ACQUIRED
nET CASh flOw AriSing frOm divESTmEnTS/
(ACquiSiTiOnS) Of COnSOlidATEd COmPAniES
Financial report 2014
grOuP
TOTAl
2014
EnErgy
& SErviCES
grOuP
TOTAl
2013
EnErgy
& SErviCES
1
−
−
19
−
6
−
(22)
−
−
−
(4)
−
(1)
−
(6)
−
−
2
−
−
−
−
−
(1)
−
−
(1)
−
−
−
−
1
−
2
19
−
6
−
(22)
(1)
−
−
(5)
−
(1)
−
(6)
(7)
−
(7)
Financial report 2014
Note 22
Discontinued and held-for-sale operations
None.
Note 23
Principal exchange rates
Principal exchange rates used in the preparation of the consolidated financial statements:
Closing rate
31/12/2013
31/12/2014
0.674354
0.227015
0.823655
0.622743
0.106191
0.001524
0.831670
1.283862
0.071249
0.711086
AUSTRALIAN DOLLAR
QATARI RIyAL
U.S. DOLLAR
SINgAPORE DOLLAR
HONg kONg DOLLAR
CFA FRANC
SWISS FRANC
POUND STERLINg
SOUTH AFRICAN RAND
CANADIAN DOLLAR
Note 24
0.648382
0.199760
0.725111
0.574251
0.093517
0.001524
0.814598
1.199472
0.068653
0.681617
Average rate for the period
2013
2014
0.679404
0.206738
0.752728
0.594417
0.097064
0.001524
0.823301
1.240510
0.069426
0.682064
0.725850
0.206779
0.752945
0.601729
0.097073
0.001524
0.812309
1.177503
0.077924
0.730795
Auditors’ fees
The table below shows fees paid to the auditors (and member firms of their networks) responsible for the audit of the
consolidated financial statements of Bouygues Construction and consolidated companies (excluding joint ventures and
associates), as expensed through the income statement in 2014.
TyPE OF ENgAgEmENT
mazars network
%
2013
restated
2014
Ernst & young network
%
2013
restated
2014
Other firms
%
2,537 99%
2,710
3,897 98%
3,369
296 33%
267
6,730
6,346
6 0%
2,543 99%
41
2,751
1 0%
3,898 98%
32
3,401
321 35%
617 68%
12
279
328
7,058
85
6,431
15 1%
−
−
15 1%
2,558 100%
7
−
7
2,758
66 2%
−
−
66 2%
3,964 100%
39
−
39
3,440
92
202
294
911
228
−
228
507
173
202
375
7,433
274
−
274
6,705
2014
2013
restated
Total fee expense
2013
restated
2014
A - AudiT
AUDIT OF CONSOLIDATED
AND INDIVIDUAL COmPANy
FINANCIAL STATEmENTS
RELATED ENgAgEmENTS
SuB-TOTAl 1
B - Other services
LEgAL, TAx, EmPLOymENT LAW
OTHER
SuB-TOTAl 2
TOTAl fEE ExPEnSE
10%
22%
32%
100%
61
Note 25
List of principal consolidated entities at 31 December 2014
COMPANY
% interest
31/12/14 31/12/13
% control
31/12/14 31/12/13
City
Country
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
GUYANCOURT
GUYANCOURT
GUYANCOURT
CLÉON
TOURVILLELA-RIVIÈRE
GUYANCOURT
GUYANCOURT
GUYANCOURT
GUYANCOURT
FRANCE
FRANCE
FRANCE
FRANCE
99.50%
100.00%
100.00%
99.93%
99.50%
100.00%
100.00%
99.93%
99.50%
100.00%
100.00%
100.00%
99.50%
100.00%
100.00%
100.00%
FRANCE
99.93%
99.93%
100.00%
100.00%
FRANCE
FRANCE
FRANCE
FRANCE
100.00%
98.98%
99.99%
100.00%
99.00%
100.00%
−
100.00%
98.98%
99.99%
100.00%
−
100.00%
99.00%
100.00%
100.00%
LUXEMBOURG
CASABLANCA
LUXEMBOURG
MOROCCO
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
ORLY
GUYANCOURT
MARGNY-LÈSCOMPIÈGNE
GUYANCOURT
GUYANCOURT
IVRY-SUR-SEINE
FRANCE
FRANCE
99.35%
100.00%
99.35%
100.00%
99.35%
100.00%
99.35%
100.00%
FRANCE
99.35%
99.35%
99.35%
99.35%
FRANCE
FRANCE
FRANCE
99.99%
99.99%
100.00%
99.99%
99.99%
100.00%
99.99%
99.99%
100.00%
99.99%
99.99%
100.00%
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
ORLY
FRANCE
100.00%
100.00%
100.00%
100.00%
MIAMI
ACCRA
UNITED STATES
GHANA
EQUATORIAL
GUINEA
TRINIDAD &
TOBAGO
BRAZIL
NIGERIA
GHANA
PERU
THAILAND
UNITED KINGDOM
CANADA
UNITED KINGDOM
THAILAND
MOROCCO
SINGAPORE
UNITED STATES
CHINA
SINGAPORE
NIGERIA
POLAND
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
−
99.96%
99.96%
99.96%
99.96%
FULLY CONSOLIDATED
1- BOUYGUES CONSTRUCTION
BOUYGUES CONSTRUCTION SA
FRANCE
BOUYGUES CONSTRUCTION RELAIS SNC
CHALLENGER INVESTISSEMENT SAS
CHALLENGER SNC
DISTRIMO SNC
GIE BOUYGUES CONSTRUCTION MATÉRIEL
GIE BOUYGUES CONSTRUCTION PURCHASING
STRUCTIS SNC
BOUYGUES CONSTRUCTION MIDDLE EAST
SAS URBICITÉ
OTHER COUNTRIES
BYPAR SARL
STRUCTIS MAROC
2 - BOUYGUES BÂTIMENT ILE-DE-FRANCE
BOUYGUES BÂTIMENT ILE-DE-FRANCE SA
FRANCE
BATI RÉNOV SA
BOUYGUES BÂTIMENT ILE DE FRANCE PPP SA
BRÉZILLON SA
62
ÉLAN SARL
SODÉARIF SA
COGEMEX SAS
3 - BOUYGUES BÂTIMENT INTERNATIONAL
BOUYGUES BÂTIMENT INTERNATIONAL SA
FRANCE
KOHLER INVESTMENT
OTHER COUNTRIES
AMERICARIBE INC
AMERICARIBE GHANA
BOUYGUES BÂTIMENT GUINÉE ÉQUATORIALE SA
Financial report 2014
BOUYGUES BATIMENT TRINIDAD & TOBAGO
MALABO
PORT OF SPAIN
BOUYGUES CONSTRUÇÃO BRASIL
SÃO PAULO
BOUYGUES CONSTRUCTION NIGERIA LTD
ABUJA
BOUYGUES CONSTRUCTION GHANA
ACCRA
BOUYGUES CONSTRUCCIONES PERÚ
LIMA
BOUYGUES THAI LTD
NONTHABURI
BOUYGUES UK LTD
LONDON
BOUYGUES BUILDING CANADA
VANCOUVER
BY DEVELOPMENT LTD
LONDON
BY THAI/VSL AUSTRALIA LTD
BANGKOK
BYMARO
CASABLANCA
BYME SINGAPORE PRIVATE COMPANY LTD
SINGAPORE
BYME USA INC
MIAMI
BYSOLAR ASIA LTD
HONG KONG
DRAGAGES ET TRAVAUX PUBLICS SINGAPORE PTE LTD
SINGAPORE
DRAGAGES ENGINEERING AND CONSTRUCTION NIGERIA LTD
ABUJA
KARMAR SA
WARSAW
LEADBITTER BOUYGUES HOLDING LIMITED AND ITS
ABINGDON UNITED KINGDOM
SUBSIDIARIES
SETAO
ABIDJAN
IVORY COAST
THOMAS VALE GROUP
WORCESTERSHIRE UNITED KINGDOM
TOWER HAMLETS LEP LTD
LONDON UNITED KINGDOM
VCES HOLDING SRO AND ITS SUBSIDIARIES
PRAGUE CZECH REPUBLIC
WARINGS CONSTRUCTION GROUP HOLDING LIMITED AND ITS
SUBSIDIARIES
PORTSMOUTH UNITED KINGDOM
−
100.00%
100.00%
100.00%
100.00%
100.00%
86.37%
100.00%
100.00%
49.00%
100.00%
100.00%
100.00%
92.28%
99.99%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
86.37%
100.00%
86.37%
100.00%
100.00%
100.00%
100.00%
100.00%
86.37%
100.00%
100.00%
49.00%
100.00%
100.00%
100.00%
99.97%
99.99%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
78.61%
100.00%
80.00%
100.00%
78.61%
100.00%
80.00%
100.00%
78.61%
100.00%
80.00%
100.00%
78.61%
100.00%
80.00%
100.00%
−
100.00%
−
100.00%
−
−
49.00%
100.00%
100.00%
100.00%
−
99.99%
100.00%
−
−
−
49.00%
100.00%
100.00%
100.00%
−
99.99%
100.00%
−
100.00%
100.00%
100.00%
100.00%
WESTMINSTER LOCAL EDUCATION PARTNERSHIP LTD
BYPOLSKA PROPERTY DEVELOPEMENT
4 - ENTREPRISES FRANCE-EUROPE SUBSIDIARIES
FRANCE
CIRMAD CENTRE SUD-OUEST SNC
CIRMAD EST SNC
CIRMAD GRAND SUD SNC
CIRMAD NORD SNC
CIRMAD PROSPECTIVES SNC
DV CONSTRUCTION SA
GFC CONSTRUCTION SA
QUILLE CONSTRUCTION SA
NORPAC SA
PERTUY CONSTRUCTION SA
QUILLE SA
RICHELMI SA
OTHER COUNTRIES
ACIEROID SA
BOUYGUES BELGIUM
COLT ESPAÑA
LOSINGER HOLDING AG
LOSINGER MARAZZI AG
5 - BOUYGUES TRAVAUX PUBLICS
BOUYGUES TP SA
FRANCE
BOUYGUES CONSTRUCTION SERVICES NUCLÉAIRES
BYTP RÉGIONS FRANCE SA
NOVI SAS
OTHER COUNTRIES
BOUYGUES CONSTRUCTION AUSTRALIA PTY LTD
BOUYGUES CIVIL WORKS
BOUYGUES CIVIL WORKS FLORIDA
DCW
PRADER LOSINGER SA
SOCIÉTÉ DE CONSTRUCTION DU PONT RIVIERA MARCORY
6 - VSL
VSL INTERNATIONAL LTD
OTHER COUNTRIES
VSL CONSTRUCTION SYSTEMS
INTRAFOR HONG KONG LIMITED
VSL ENGINEERING (CHINA)
VSL AUSTRALIA PTY LTD
VSL ANNAHUTTE SYSTEM AG
VSL BRASIL RECUPERAÇÃO CONSTRUÇÃO LTDA
VSL GEO SISTEMAS DE APLICAÇÃO
VSL HONG KONG
VSL INDIA
VSL INDONESIA
VSL MALAYSIA
VSL MEXICO
VSL MIDDLE EAST LLC
VSL MIDDLE EAST QATAR
VSL POLSKA
VSL PORTUGAL
VSL SINGAPOUR
VSL SUISSE
VSL SYSTEMS (BRUNEI)
VSL SYSTEMS MANUFACTURER (SPAIN)
VSL TAIWAN
VSL TCHEQUECZ
VSL THAILAND
VSL VIETNAM LTD
Country
LONDON UNITED KINGDOM
WARSAW
POLAND
% interest
31/12/14 31/12/13
% control
31/12/14 31/12/13
90.00%
100.00%
90.00%
90.00%
100.00%
90.00%
−
−
MERIGNAC
NANCY
COLOMBIER
SAUGNIEU
VILLENEUVE
D'ASCQ
ROUEN
MÉRIGNAC
COLOMBIER
SAUGNIEU
NANTES
FRANCE
FRANCE
100.00%
99.90%
100.00%
99.90%
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
FRANCE
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
VILLENEUVE
D'ASCQ
FRANCE
100.00%
100.00%
100.00%
100.00%
NANCY
ROUEN
MONACO
FRANCE
FRANCE
FRANCE
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
BARCELONA
BRUSSELS
L'HOSPITALET DE
LLOBREGAT
LUCERNE
KONIZ
SPAIN
BELGIUM
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
SPAIN
60.00%
60.00%
60.00%
60.00%
SWITZERLAND
SWITZERLAND
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
GUYANCOURT
LABÈGE
LIMONEST
FRANCE
FRANCE
FRANCE
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
SYDNEY
JOHANNESBURG
MIAMI
HONG KONG
SION
ABIDJAN
AUSTRALIA
SOUTH AFRICA
UNITED STATES
CHINA
SWITZERLAND
IVORY COAST
100.00%
100.00%
100.00%
100.00%
99.67%
100.00%
100.00%
100.00%
100.00%
100.00%
99.67%
99.80%
100.00%
100.00%
100.00%
100.00%
99.67%
100.00%
100.00%
100.00%
100.00%
100.00%
99.67%
99.80%
KONIZ
SWITZERLAND
99.90%
99.90%
99.90%
99.90%
BARCELONA
HONG KONG
HEFEI
SYDNEY
RAPPERSWILJONA
SAO PAULO
PACO DE ARCOS
HONG KONG
CHENNAI
JAKARTA
KUALA LUMPUR
MEXICO D.F
SPAIN
CHINA
CHINA
AUSTRALIA
99.65%
99.90%
59.94%
99.90%
99.65%
99.90%
59.94%
99.90%
99.75%
100.00%
60.00%
100.00%
99.75%
100.00%
60.00%
100.00%
DUBAI
DOHA
WARSAW
PACO DE ARCOS
SINGAPORE
SUBINGEN
DARUSSALAM
BARCELONA
TAIPEI
PRAGUE
BANGKOK
HO CHI MINH CITY
SWITZERLAND
69.84%
69.84%
70.00%
70.00%
BRAZIL
PORTUGAL
CHINA
INDIA
INDONESIA
MALAYSIA
MEXICO
UNITED ARAB
EMIRATES
QATAR
POLAND
PORTUGAL
SINGAPORE
SWITZERLAND
BRUNEI
SPAIN
TAIWAN
CZECH REPUBLIC
THAILAND
VIETNAM
99.90%
100.00%
99.90%
99.90%
66.93%
99.90%
99.90%
99.90%
61.52%
99.90%
99.90%
66.93%
99.90%
99.90%
100.00%
100.00%
67.00%
100.00%
100.00%
100.00%
66.00%
100.00%
100.00%
67.00%
100.00%
100.00%
79.92%
79.92%
80.00%
80.00%
78.32%
99.90%
91.08%
99.90%
99.78%
59.94%
99.90%
99.90%
99.90%
82.10%
99.90%
78.32%
99.90%
91.08%
99.90%
99.78%
59.94%
99.90%
99.90%
99.90%
82.10%
99.90%
98.00%
99.90%
91.17%
100.00%
99.88%
60.00%
100.00%
100.00%
100.00%
88.00%
100.00%
98.00%
99.90%
91.17%
100.00%
99.88%
60.00%
100.00%
100.00%
100.00%
88.00%
100.00%
−
−
Financial report 2014
COMPANY
City
63
COMPANY
7 - DTP
DTP SAS
FRANCE
EUROPE FONDATIONS
OTHER COUNTRIES
GOUNKOTO MINING SERVICES
MINING AND REHANDLING SERVICES (MARS)
TONGONAISE DES MINES
KIBALI MINIG SERVICES (KMS) SPRL
DTP AUSTRALIA PTY LTD
8 - OTHER BOUYGUES BÂTIMENT INTERNATIONAL
SUBSIDIARIES
OTHER COUNTRIES
ASIAWORLD EXPO MANAGEMENT LTD
BYME ENGINEERING HONG KONG LIMITED
DRAGAGES ET TRAVAUX PUBLICS (HONG KONG) LIMITED
DRAGAGES - BOUYGUES TP MTRC SCL 1128
IEC INVESTMENTS LTD
% interest
31/12/14 31/12/13
% control
31/12/14 31/12/13
City
Country
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
GUYANCOURT
FRANCE
100.00%
100.00%
100.00%
100.00%
BAMAKO
MALI
BAMAKO
MALI
KORHOGO
IVORY COAST
WATSA PROVINCE DEMOCRATIC REP.
ORIENTALE
CONGO
SYDNEY
AUSTRALIA
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
−
100.00%
−
100.00%
−
60.00%
100.00%
90.00%
100.00%
100.00%
60.00%
−
HONG KONG
HONG KONG
HONG KONG
HONG KONG
HONG KONG
CHINA
CHINA
CHINA
CHINA
CHINA
100.00%
90.00%
100.00%
100.00%
60.00%
MONTIGNY-LEBRETONNEUX
FRANCE
100.00%
100.00%
100.00%
100.00%
90.00%
100.00%
−
90.00%
100.00%
−
60.00%
9 - BOUYGUES ENERGIES & SERVICES
BOUYGUES ENERGIES & SERVICES SAS
FRANCE
AXIONE
BOUYGUES E&S FONDATIONS
BOUYGUES E&S FM FRANCE
BOUYGUES E&S INDUSTRIE ET LOGISTIQUE
BOUYGUES E&S SPV MANAGEMENT
64
MARC FAVRE SAS
BOUYGUES E&S MAINTENANCE INDUSTRIELLE
THIAIS LUMIÈRE SAS
Financial report 2014
OTHER COUNTRIES
BOUYGUES E&S TECHNICS SCHWEIZ
(FORMERLY BALESTRA GALIOTTO TCC)
BARKING & DAGENHAM SCHOOLS PROJECT LTD
BARNET HOSPITAL PROJECT LTD
BY HOME LTD
LEWISHAM SCHOOLS PROJECT LTD
MID ESSEX HOSPITAL PROJECT LTD
NORTH MIDDLESEX HOSPITAL PROJECT LTD
CENTRAL MIDDLESEX HOSPITAL PROJECT LTD
BOUYGUES E&S INFRASTRUCTURE UK
BOUYGUES E&S FM UK
BOUYGUES E&S CONGO
BOUYGUES E&S CONTRACTING UK
BOUYGUES E&S CÔTE D’IVOIRE
BOUYGUES E&S UK
EUROPLAND LTD
GIE LUMEN
ICEL MAIDSTONE LTD AND ITS SUBSIDIARIES
BOUYGUES E&S FM SCHWEIZ (FORMERLY MIBAG PROPERTY
FACILITY MANAGEMENT)
MIBAG PROPERTY MANAGERS AG
MINDFUL EXPERIENCE INC
PETERBOROUGH SCHOOLS PROJECT LTD
PLAN GROUP INC AND ITS SUBSIDIARIES
BOUYGUES E&S GABON
WEST MIDDLESEX HOSPITAL PROJECT LTD
MALAKOFF
MONTIGNY-LEBRETONNEUX
MONTIGNY-LEBRETONNEUX
MONTIGNY-LEBRETONNEUX
MONTIGNY-LEBRETONNEUX
VALLEIRY
FEYZIN
MONTIGNY-LEBRETONNEUX
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
−
100.00%
−
FRANCE
FRANCE
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
FRANCE
100.00%
100.00%
100.00%
100.00%
GRAND-LANCY
SWITZERLAND
100.00%
100.00%
100.00%
100.00%
LONDON
LONDON
LONDON
LONDON
LONDON
LONDON
LONDON
HATFIELD
LONDON
BRAZZAVILLE
EAST KILBRIDE
ABIDJAN
LONDON
LONDON
LIBREVILLE
LONDON
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
UNITED KINGDOM
CONGO
SCOTLAND
IVORY COAST
UNITED KINGDOM
UNITED KINGDOM
GABON
UNITED KINGDOM
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.17%
100.00%
100.00%
63.31%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.17%
100.00%
100.00%
63.31%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.17%
100.00%
100.00%
75.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.17%
100.00%
100.00%
75.00%
100.00%
ZURICH
SWITZERLAND
100.00%
100.00%
100.00%
100.00%
ZUG
SWITZERLAND
TORONTO
CANADA
LONDON UNITED KINGDOM
TORONTO
CANADA
LIBREVILLE
GABON
LONDON UNITED KINGDOM
100.00%
100.00%
100.00%
85.00%
84.42%
100.00%
100.00%
100.00%
84.42%
100.00%
100.00%
100.00%
100.00%
85.00%
84.42%
100.00%
60.00%
60.00%
60.00%
60.00%
−
100.00%
−
−
100.00%
−
84.42%
100.00%
JOINT OPERATIONS
1 - BOUYGUES BÂTIMENT INTERNATIONAL
BYMA PTE
BYM MYANMAR LTD
SINGAPORE
RANGOON
SINGAPORE
MYANMAR
60.00%
60.00%
60.00%
60.00%
% control
31/12/14 31/12/13
Country
JOHANNESBURG
MELBOURNE
SOUTH AFRICA
AUSTRALIA
45.00%
33.33%
45.00%
45.00%
33.33%
45.00%
−
TANGIER
MOROCCO
66.67%
66.67%
66.67%
66.67%
GUYANCOURT
GUYANCOURT
NÎMES
MARSEILLE
LYON
LE PORT
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
FRANCE
66.67%
49.00%
49.00%
56.50%
66.00%
33.00%
66.67%
49.00%
49.00%
56.50%
66.67%
49.00%
49.00%
56.50%
−
−
66.67%
49.00%
49.00%
56.50%
66.00%
33.00%
VERSAILLES
PARIS
GUYANCOURT
GUYANCOURT
FRANCE
FRANCE
FRANCE
FRANCE
50.00%
33.00%
28.50%
28.50%
50.00%
33.00%
28.50%
28.50%
50.00%
33.00%
28.50%
28.50%
50.00%
33.00%
28.50%
28.50%
PARIS
FRANCE
65.00%
65.00%
65.00%
65.00%
SAINT HELIER
JERSEY
49.90%
49.90%
49.90%
49.90%
SAINT-DENIS
FRANCE
33.33%
33.33%
33.33%
33.33%
CASABLANCA
MOROCCO
DOHA
QATAR
NICOSIA
CYPRUS
LEEDS UNITED KINGDOM
15.00%
49.00%
22.00%
20.77%
−
49.00%
22.00%
20.77%
15.00%
49.00%
22.00%
20.77%
49.00%
22.00%
20.77%
SPAIN
50.00%
50.00%
50.00%
50.00%
MONTIGNY-LEFRANCE
BRETONNEUX
HATFIELD UNITED KINGDOM
OTTAWA
CANADA
−
15.00%
−
15.00%
51.00%
42.50%
−
−
51.00%
50.00%
−
−
2 - ENTREPRISES FRANCE-EUROPE SUBSIDIARIES
3 - BOUYGUES TRAVAUX PUBLICS
BOMBELA CIVILS JV LTD
EAST WEST CONNECT PARTNERSHIP
SOCIETE POUR LA RéALISATION DU PORT DE TANGER
MéDITERRANéE
TMBYS SAS
OC'VIA MAINTENANCE SAS
GIE OC'VIA CONSTRUCTION
GIE L2 CONSTRUCTION
GIE CONSTRUCTEURS CSO VICHY
GIE VIADUC DU LITTORAL
4 - BOUYGUES ENERGIES & SERVICES
THEMIS FM SAS
EVESA SAS
PLESSENTIEL GIE
PLESSENTIEL SAS
5 - BOUYGUES BÂTIMENT ILE-DE-FRANCE
CHRYSALIS DEVELOPPEMENT SAS
6 - DTP
KAS 1 LIMITED
Financial report 2014
COMPANY
% interest
31/12/14 31/12/13
City
−
−
−
JOINT VENTURES AND ASSOCIATES
1 - BOUYGUES CONSTRUCTION
CONSORTIUM STADE DE FRANCE SA
2 - BOUYGUES BÂTIMENT INTERNATIONAL
ANFAB21 SAS
BOUYGUES CONSTRUCTION QATAR LLC
HERMES AIRPORTS LTD
ZAIC A LIMITED
−
3 - ENTREPRISES FRANCE-EUROPE SUBSIDIARIES
EUROPERFIL
L’HOSPITALET DE
LLOBREGAT
4 - BOUYGUES ENERGIES & SERVICES
AXIONE INFRASTRUCTURES SAS AND ITS SUBSIDIARIES
ABAKUS BYES SOLAR UK
BETRON
5 - BOUYGUES TRAVAUX PUBLICS
ADELAC SAS
AUTOROUTE DE LIAISON SEINE − SARTHE SA (ALIS)
BINA FINCOM
BOMBELA TKC JV PTY LTD
TRANSJAMAICAN HIGHWAY LIMITED
WARNOWQUERUNG
SOCIéTé CONCESSIONNAIRE DU PONT RIVIERA MARCORY
6 - VSL
VSL CORéE
VSL JAPON
VSL SISTEMAS ESPECIALES DE CONSTRUCCIÓN
ARCHAMPS
BOURG-ACHARD
ZAGREB
JOHANNESBURG
KINGSTON
ROSTOCK
ABIDJAN
FRANCE
FRANCE
CROATIA
SOUTH AFRICA
JAMAICA
GERMANY
IVORY COAST
39.20%
33.17%
45.00%
25.00%
48.89%
30.00%
48.58%
39.20%
33.17%
45.00%
25.00%
48.89%
30.00%
49.00%
39.20%
33.17%
45.00%
25.00%
48.89%
30.00%
49.00%
39.20%
33.17%
45.00%
25.00%
48.89%
30.00%
49.00%
SEOUL
TOKYO
SANTIAGO
SOUTH KOREA
JAPAN
CHILE
31.79%
24.98%
49.95%
31.79%
24.98%
49.95%
31.82%
25.00%
50.00%
31.82%
25.00%
50.00%
65
note 26
Impacts of first-time application of IFrs 11 and IFrIc 21
26.1 Impacts oF FIrst-tIme applIcatIon oF IFrs 11
The schedules below show, for the year ended 31 December 2013, the effects of IFRS 11, which was mandatorily applicable
with effect from 1 January 2014.
31/12/2013
Published
consolIDateD Balance sHeet (€ million)
1,623
7,634
9,257
914
1,377
6,966
9,257
non-current assets
current assets
ToTAl AsseTs
sHareHolDers’ equIty
non-current lIaBIlItIes
current lIaBIlItIes
ToTAl liAbiliTies And shAReholdeRs’ equiTy
Full yeAR
2013
Published
consolIDateD Income statement (€ million)
31/12/2013
ResTATed
1
(9)
(8)
−
(2)
(6)
(8)
First-time
application of
iFRs 11
1,624
7,625
9,249
914
1,375
6,960
9,249
Full yeAR
2013
ResTATed
11,111
435
(10)
2
11,101
437
sHare oF proFIts/(losses) From Investments
In joInt ventures anD assocIates
(11)
(2)
(13)
neT PRoFiT/(loss)
278
277
1
−
−
−
278
277
1
5 106
(10)
5 096
sAles (1)
CuRRenT oPeRATing PRoFiT/(loss)
66
First-time
application of
iFRs 11
neT PRoFiT/(loss) ATTRibuTAble To The gRouP
net proFIt/(loss) attrIButaBle to non-controllIng Interests
(1) Of which sales generated abroad.
26.2 Impacts oF FIrst-tIme applIcatIon oF IFrIc 21
This interpretation was endorsed by the European Union on 13 June 2014, and was not early adopted by the Bouygues
Construction group with effect from 1 January 2014.
The effects of IFRIC 21, which is mandatorily applicable from 1 January 2015, will not be material as regards consolidated equity, but will affect the timing of the recognition of certain levies, such as (in France) C3S and land taxes,
during interim accounting periods.
The schedule below shows the impact of applying IFRIC 21 on the three interim periods of 2014.
The application of IFRIC 21 has no impact neither on sales, nor on the 2014 full-year financial statements.
Financial report 2014
(€ million)
1st quarter 2014
1st half 2014
9 months 2014
Full year 2014
impact
impact
impact
impact
Published
ResTATed Published
ResTATed Published
ResTATed Published
ResTATed
CuRRenT oPeRATing
PRoFiT
91
(10)
81
180
(7)
173
244
(4)
240
335
−
335
neT PRoFiT
65
(7)
58
123
(5)
118
184
(3)
181
253
−
253
to the shareholders,
In compliance with the assignment
entrusted to us by your annual general
meetings, we hereby report to you, for
the year ended December 31, 2014,
on:
• the audit of the accompanying consolidated financial statements of
Bouygues Construction;
• the justification of our assessments;
• the specific verification required by
law.
These consolidated financial statements have been approved by the
board of directors. Our role is to express
an opinion on these consolidated financial statements based on our audit.
I − Opinion on the
consolidated financial
statements
We conducted our audit in accordance
with professional standards applicable
in France; those standards require that
we plan and perform the audit to obtain
reasonable assurance about whether
the consolidated financial statements
are free of material misstatement. An
audit involves performing procedures,
using sampling techniques or other
methods of selection, to obtain audit
evidence about the amounts and disclosures in the consolidated financial
statements. An audit also includes
evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates
made, as well as the overall presentation of the consolidated financial statements. We believe that the audit
evidence we have obtained is sufficient
and appropriate to provide a basis for
our audit opinion.
In our opinion, the consolidated financial statements give a true and fair
view of the assets and liabilities and of
the financial position of the group as
at December 31, 2014 and of the
results of its operations for the year
then ended in accordance with International Financial Reporting Standards as adopted by the European
Union.
II − Justification of our
assessments
In accordance with the requirements
of article L. 823-9 of the French commercial code (Code de commerce)
relating to the justification of our
assessments, we bring to your attention the following matters:
• Current and non-current provisions
carried on the balance sheet were
measured as described in note 2.2.2
to the consolidated financial statements. In light of available information, our assessment of these
provisions was based primarily on an
analysis of the processes implemented by management to identify
and evaluate risks.
• As indicated in note 2.2.3 to the consolidated financial statements, the
Group accounts for construction
contracts using the percentage of
completion method, which results in
year-end margin being measured on
the basis of the latest estimate of the
total margin of the contract. Our
work was namely to assess the
appropriateness of the assumptions
taken and of the recognised margin.
These assessments were made as part
of our audit of the consolidated financial statements taken as a whole, and
therefore contributed to the opinion
Financial report 2014
statutory
auditors’report
on the consolidated
financial statements
we formed which is expressed in the
first part of this report.
III − Specific verification
As required by law we have also verified, in accordance with professional
standards applicable in France, the
information presented in the group’s
management report.
We have no matters to report as to its
fair presentation and its consistency
with the consolidated financial statements.
Courbevoie and Paris-La Défense,
March 13, 2015
The statutory auditors
Ernst & Young audit:
Laurent Vitse
Mazars:
Guillaume Potel
Olivier Thireau
67
parent company
financial statements
bouygues constructIon sA: bAlAnce sHeet At 31 december 2014 (in € million)
31/12/2014
Assets
AmortisAtion,
depreciAtion
& impAirment
Gross
IntAngIble Assets
ProPerty, PlAnt And equIPment
31/12/2013
net
net
76
24
49
12
27
13
31
11
660
408
1,067
1,168
0
0
20
282
0
2,133
2,435
54
3,656
16
0
16
77
0
0
0
5
0
0
5
0
82
643
408
1,051
1,091
0
0
20
276
0
2,133
2,429
54
3,574
651
331
982
1,024
0
0
20
205
0
2,102
2,328
53
3,405
long-term Investments
- HoldIngs In subsIdIArIes And AFFIlIAtes
- otHer
sub-totAl
non-current Assets
InventorIes And work In Progress
AdvAnces And down-PAyments on orders
trAde receIvAbles
otHer receIvAbles
sHort-term Investments
68
cAsH
current Assets
otHer Assets
totAl Assets
lIAbIlItIes And equIty
sHAre cAPItAl
sHAre PremIum
revAluAtIon reserves
otHer reserves
retAIned eArnIngs
net ProFIt For tHe yeAr
sHAreHolders’ eQuitY
proVisions
debt
AdVAnces And doWn-pAYments receiVed
trAde PAyAbles
otHer PAyAbles
non-FinAnciAl liAbilities
overdrAFts And sHort-term bAnk borrowIngs
Financial report 2014
AccruAls And deFerred Income
totAl liAbilities And sHAreHolders’ eQuitY
31/12/2014
128
15
0
13
233
257
645
45
540
0
30
57
87
2,215
42
3,574
31/12/2013
128
15
0
13
243
266
665
42
448
0
28
65
93
2,114
44
3,405
SALES
OTHER OpERATING REvENUE
pUCHASES AND CHANGES IN INvENTORY
TAxES OTHER THAN INCOME TAx
pERSONNEl COSTS
OTHER OpERATING ExpENSES
DEpRECIATION, AMORTISATION, IMpAIRMENT & pROvISIONS, NET
pROFITS/(lOSSES) FROM SHARED OpERATIONS
OPERATING PROFIT/(LOSS)
FINANCIAl INCOME AND ExpENSES
PRE-TAX PROFIT ON ORDINARY ACTIVITIES
ExCEpTIONAl ITEMS
INCOME TAx ExpENSE
NET PROFIT FOR THE YEAR
BOUYGUES CONSTRUCTION SA: CASH FlOW STATEMENT FOR THE YEAR ENDED
31 DECEMBER 2014 (€ million)
Financial report 2014
BOUYGUES CONSTRUCTION SA: INCOME STATEMENT FOR THE YEAR ENDED
31 DECEMBER 2014 (€ million)
2014
2013
170
3
0
(5)
(56)
(105)
(10)
1
(3)
264
261
(0)
(4)
257
168
4
0
(4)
(57)
(103)
(9)
2
1
274
275
(2)
(7)
266
2013
2014
A − OPERATING ACTIVITIES
CASH FlOW
NET pROFIT FOR THE YEAR
DEpRECIATION AND AMORTISATION
NET CHANGE IN IMpAIRMENT AND pROvISIONS (1)
NET GAINS ON ASSET DISpOSAlS AND OTHER ITEMS (2)
257
9
11
0
277
266
8
10
0
284
(71)
(8)
198
(19)
(7)
258
(7)
0
(7)
(7)
0
(7)
0
0
0
0
(77)
(0)
(84)
19
0
12
0
(276)
93
(184)
(71)
(11)
(71)
−
(82)
0
(267)
17
(250)
20
(32)
20
−
(12)
CHANGE IN WORkING CApITAl
CURRENT ASSETS, OTHER ASSETS, ACCRUAlS AND DEFERRED INCOME
NET ADvANCES AND DOWN-pAYMENTS RECEIvED, NON-FINANCIAl lIABIlITIES & OTHER ITEMS
NET CASH GENERATED BY/(USED IN) OPERATING ACTIVITIES
B − INVESTING ACTIVITIES
INCREASES IN NON-CURRENT ASSETS
ACqUISITIONS OF INTANGIBlE ASSETS AND pROpERTY, plANT & EqUIpMENT
ACqUISITIONS OF HOlDINGS IN SUBSIDIARIES AND AFFIlIATES
DISpOSAlS OF NON-CURRENT ASSETS
DISpOSAlS OF INTANGIBlE ASSETS AND pROpERTY, plANT & EqUIpMENT
DISpOSAlS OF HOlDINGS IN SUBSIDIARIES AND AFFIlIATES
OTHER FINANCIAl INvESTMENTS, NET
AMOUNTS RECEIvABlE IN RESpECT OF NON-CURRENT ASSETS, NET
NET CASH GENERATED BY/(USED IN) INVESTING ACTIVITIES
C − FINANCING ACTIVITIES
INCREASE IN SHAREHOlDERS’ EqUITY
DIvIDENDS pAID DURING THE YEAR
CHANGE IN NET DEBT
NET CASH GENERATED BY/(USED IN) FINANCING ACTIVITIES
CHANGE IN NET CASH POSITION (A + B + C)
NET CASH pOSITION AT 1 JANUARY (3)
NET CASH FlOWS DURING THE YEAR, ExClUDING TRANSFERS BETWEEN ACCOUNTS
IMpACT OF TRANSFERS BETWEEN ACCOUNTS
NET CASH pOSITION AT END OF pERIOD (3)
(1) Excluding impairment of current assets. (2) Net of corporate income tax. (3) Cash + Short-term investments - Overdrafts and short-term bank borrowings.
69
bouygues constructIon sA: yeAr ended 31 december 2014 (in € million)
comPAnIes
share
capital (1)
other
equity (1)(4)
%
interest
Gross carrying
amount of
shares held
Net carrying
amount of
shares held
10
25
13
38
51
15
15
7
6
3
2
0
7
55
29
10
81
7
9
7
8
15
(4)
−
100.00
89.32
99.70
98.07
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
24
75
103
93
158
43
27
11
9
6
2
15
566
24
75
103
93
158
43
27
11
9
6
1
15
566
10
15
50
5
7
7
24
3
100.00
99.96
100.00
93.81
26
22
6
7
62
26
22
6
7
62
−
−
−
−
−
−
−
−
−
−
−
−
−
−
2
0
30
0
660
1
0
15
0
643
detAiled inFormAtion: subsidiAries (INTEREST ≥ 50%)
FrencH subsidiAries
dtP
bouygues bÂtIment InternAtIonAl
bouygues bÂtIment Ile-de-FrAnce
bouygues trAvAux PublIcs
bouygues energIes & servIces (3)
quIlle
Pertuy constructIon
dv constructIon
norPAc
gFc constructIon
FIcHAllenge
cHAllenger
totAl (€ mIllIoN)
70
ForeiGn subsidiAries
vsl InternAtIonAl (swItZerlAnd)
losInger HoldIng (swItZerlAnd)
drAgAges Hong kong (Hong kong)
AcIeroId (sPAIn)
totAl (€ mIllIoN)
detAiled inFormAtion: AFFiliAtes (INTEREST > 10%, ≤ 50%)
totAl (€ mIllIoN)
AGGreGAte inFormAtion About otHer subsidiAries
And AFFiliAtes
FrencH subsidiAries
ForeiGn subsidiAries
FrencH AFFIlIAtes
ForeIgn AFFIlIAtes
oVerAll totAl
Financial report 2014
(1) In millions of units of the local functional currency.
(2) Exchange rate as of 31 December 2014.
(3) Consolidated reserves and consolidated net profit/(loss) for the year excluding non-controlling interests, and consolidated sales.
(4) Excluding net profit/(loss) for the year.
Financial report 2014
Loans and advances
receivable by
the parent
Guarantees given
by the parent
Sales for last
financial year
Net profit/(loss)
for last financial
year
Dividends received
by the parent
during the year
55
186
0
−
240
0
0
−
−
0
−
−
481
0
−
130
−
15
−
−
6
−
4
−
−
155
292
762
1,987
489
1,789
4
201
324
178
390
−
16
1
49
35
35
33
28
10
9
6
16
(2)
1
9
58
63
12
21
28
8
9
8
8
−
60
−
132
−
192
−
−
−
−
−
21
−
198
46
(18)
46
8
(3)
1
40
9
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
−
6
1
−
0
680
−
−
−
−
155
4
0
−
−
−
Comments
(2) 1 cHF = €0.83167
(2) 1 cHF = €0.83167
(2) 1 Hkd = €0.10619
71
Bouygues Construction Corporate Communications department. Production:
Photo credits: Véronique Paul (cover)
May 2014. The French or English versions of the 2014 Financial report can be obtained
on request by calling (+33) 1 3060 2069 or downloaded from www.bouygues-construction.com
Print: Printed by TI Médian Impressions on FSC paper
Bouygues Construction
1, avenue Eugène Freyssinet Guyancourt
78065 Saint-Quentin-en-Yvelines Cedex
Tél. : +33 (0)1 30 60 33 00
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