Bouygues SA (EN) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. Thank you for attending the Bouygues Telecom Capital Market Day. With me in the room are Benoît Torloting, Deputy CEO of Bouygues Telecom; and Christian Lecoq, CFO of Bouygues Telecom. Our last Capital Market Day was in 2015 and presented the strategy to return to sustainable growth in both sales and results. This strategy has borne fruit that all commitment made in 2015 were achieved and even exceeded. Today, our new Capital Market Day will first remind you how well we have been doing over the past 6 years; second, present our new strategic plan Ambition 2026 for the next 6 years. As shown in Slide 4, there are 5 key sections followed by my conclusion in our presentation. I will present this first 3 section: section 1 is about Bouygues Telecom's track record regarding 25 years of innovation to become a star performer; section 2, focus on the French telecom market and why we believe we are entering in a new growth era; section 3, explain our Ambition 2026 to become #2 in mobile and a major player in fiber. Then Benoît will present in Section 4 our business drivers and our new initiatives to achieve that ambition. Christian, at the end, will then present the financial section 5 and how we plan to continue delivering profitable and sustainable growth and double our free cash flow. Lastly, I will conclude on why we believe that Bouygues Telecom will continue its success story. We will then hand the floor for Q&A. Now let's start Slide 6. Bouygues Telecom 25 years innovating to become a star performer. First of all, I would like to remind you that 2021 marks the 20th anniversary of the launch of Bouygues Telecom. Over the past 25 years, we have continuously been innovating for our customers' benefit. It all started with making mobile accessible for everyone in 1996, when, for example, we've entered the first mobile bundle and also when we introduced the first mobile unlimited voice plan in 1999. Then we extended our positioning not only to mobile but also to fixed. From 2010, we focused on popularizing connectivity. We launched, for example, the first fixed Android box and the first fixed wireless 4G box for B2C. We were also the first to bundle Netflix into our box. We even innovated on how to deploy our networks in a smarter way with what we call the Smart CAPEX deals. Today, we continue to innovate to deliver a superior customer experience. We have recently been the first to introduce the smart TV box, and we have the best WiFi box in the market. We are also #1 on B2B customer service. Finally, ARCEP ranked our mobile network as a second best network in Mainland France for 7 years in a row. As demonstrated, innovation has always been at the heart of Bouygues Telecom for 25 years, and we will continue to do so. Turning to Slide 7. You see that Bouygues Telecom has delivered strong growth in the past 6 years, reflecting the success of its strategy. I hope that you agree with me that this graph is quite impressive, as Bouygues Telecom has been delivering 43% sales growth since 2015 in a stagnating French market. And we have clearly overperformed all of our competitors undisputably. Let's now focus on EBITDA after leases on Slide 8. In 2015, during our Capital Market Day, we were expecting to reach an EBITDA after leases margin of 25% in 2017. We exceeded this target as we haven't reached 27%. The most striking point on this slide is a huge performance regarding EBITDA after leases as it doubled in 5 years from EUR 750 million in 2015 to around EUR 1.5 billion in 2020. There are not many players in Europe that can claim that they have achieved this performance. Before moving to the Slide 9, please note that all the financial information that we will highlight in this presentation for 2020 are based on consensus estimations. Back to 2015, we had an ambition to increase our presence in the fixed broadband market. We had announced a target of 1 million additional fixed broadband subscriber by 2017. Here again, we deliver on our promise. In total, since end 2014, we have added 1.6 million fixed customer. We had made another promise during the 2015 Capital Market Day. As you can see on Slide 10, we announced that our goal was to change drastically the dynamic of Bouygues Telecom, not only by succeeding to turn around the negative spiral of Bouygues Telecom at that time, but even to install Bouygues Telecom in the desirable quadrant of top performance and profitable growth. And we did it. This performance is one of the most outstanding in Europe. Moving to Slide 12. I will now focus on the French telecom market that is ushering in growth era. I am going to highlight 5 key considerations in the French telecom market to show you that all lights are green to invest in this market. First, I am sure that you are convinced, as we are, that connectivity has now become a vital necessity for residential end users with 80% of French people owning a smartphone today; French user mobile consuming more than 10 gigs of data per month; more than 40% on French households now connected to very high-speed Internet; and today, 96% of French people consider that they cannot live without good WiFi. Second, Slide 14. I wanted to highlight that connectivity is becoming even more critical for residential and businesses, with many application linked to augmented discovery, automated living and virtual telepresence as examples. Digital technologies are becoming more and more prevalent in all sectors. Third, Slide 15. The COVID health crisis accelerated digitalization. For example, FTTH net adds increased by 40% over the first 9 months of 2020 compared to the same period last year. And people spend 1 hour more on the Internet per day during the full lockdown in April. During COVID, consumers and company have understood how essential is it to have a quality network, confirming the relevance of the quality positioning of Bouygues Telecom. We are proud that all our investment paid off in this special year and that we were capable to coping with the exceptional demand for reliable connectivity. A few words now on sustainability on Slide 16. In December 2020, Bouygues Group organized its first Climate Market Day, involving all business segment. I just want to reiterate here the commitment of Bouygues Telecom to sustainability. Our commitment are to reduce our carbon footprint by 50% on Scope 1 and 2 and 30% in Scope 3 by 2030 compared to 2020. Undoubtedly, the telecom environment is challenging by -- as we need to reduce our emissions. At the same time, the traffic is increasing sharply in both mobile and fixed. Fortunately, as shown on Slide 17, we observe that each new generation in telecoms is adding a new revolutionary levels of efficiency. This change of technology has reduced energy consumption by more than 1/3. As a result, we see on Slide 18, that our investment of the sector in next-generation technology have allowed French telecommunication operators to maintain this carbon footprint stable over the past 4 years despite the surge of traffic on their network. Next slide. And in additions to keeping control of their own impact on the environment, telecom operators can also help other sector become more sustainable. As an example, during the lockdown in France, in April 2020, telecom networks enabled 50% of employers in France to telework, 20x more than in April 2019. On average, global studies like GSMA suggest that emissions generated by telecom can support up to 10x the reduction of emissions in other sectors of the economy. Moving to Slide 20. You can observe that for the very first time, France exceeded EUR 10 billion Capex invested in telecommunication infrastructure in 2019, excluding frequencies. This investment was up to 50% compared to 2010. This is a huge increase. It was mainly linked to the FTTH rollout on top of the usage mobile upgrade and fixed network enhancement. As a consequence and as you can see on Slide 21, France has been able to accelerate its FTTH rollout, being now #1 in additional house -- home passed. France is expected to become soon #1 in total home passed in Europe. The rollout of FTTH is a game-changer. It opens new opportunities for gaining market share, as shown on Slide 22. Bouygues Telecom managed to get 10% market share on fixed despite entering in the middle of the DSA era -- DSL era. And since 2015, we have continued to increase our fixed market share with our fixed FTTH offering, reaching 13.4% in Q3 2020. Keep in mind that Bouygues Telecom covers 50% of France with FTTH, so its market share in such -- is much higher than 13.4% and closer in reality to 20%. We see plenty of potential of gaining further market share, thanks to the FTTH acceleration. The other next-generation technology that can create opportunities to reshuffle the market share is definitely the 5G. There are favorable conditions for 5G in France, as shown on Slide 23. As you know, French telecom payers were attributed 5G spectrum in September 2020 at favorable condition compared to other large European countries, as you can see on the chart. Like our competitors, we are also full speed in launching 5G. We expect the full benefits of 5G to be materialized in 2023, in line with what happens with 4G. In particular, we expect the -- a boom of 5G B2B cases by then, will be supported by the new 5G core network functionality such as network slicing, low latency, et cetera. Regarding mobile market share. In Slide 24, we can say that after a long period of relative stability of market share, the entry of one of our competitor free during the 4G era disrupted the market share of all players, including Bouygues Telecom, honestly. We managed to lose less than the other competitors, as you can see. And we did win back in the last 5 years the majority of what we've lost previously. Thanks to the recent launch of 5G at the end of 2020, we expect to continue gaining market share in mobile with our good market positioning and the quality of our network. As a conclusion, on Slide 25. For the coming years, we observe that a consensus is emerging on a new growth dynamic, thanks to the generalization and monetization of FTTH and 5G, the end of the decline of legacy services and despite of competitive market environment with 4 players in France. Market analysis expect the French telecom market to show more steady growth of sales from services in the coming years after a decline between 2015 and 2019. Now let's turn to the third section. I am going to share with you our Ambition 2026 to become #2 in mobile and a major player in fiber. Our Ambition 2026 is based on 3 pillars. As you can see, Slide 27. First, on mobile, our ambition is to become #2 player in France. Second, in fixed B2C market, we want to add 3 million FTTH B2C clients. And third, on fixed B2B, we want to double our market share. To achieve this ambition, we have 3 enablers; our best-in-class customer experience, the quality of our high-speed networks, and our employees' dedication and willingness to succeed. In 2026, our goal is to generate more than EUR 7 billion in sales from services, around EUR 2.5 billion in EBITDA after leases and around EUR 600 million of free cash flow. Turning to Slide 28. The 3 key business metrics to achieve our 2026 ambition are to add 4 million mobile customer, 3 million FTTH clients and to gain 5 points in market share value on the fixed B2B market. Financially speaking, the 3 financial metrics summarize our financial ambition in 2026 in Slide 29, adding EUR 2 billion in sales from services and EUR 1 billion in EBITDA after leases and adding EUR 350 million in free cash flow. Now -- I will now let Benoît explain to you in more details how we will achieve our business ambition. Benoît?

Thanks, Richard, and good afternoon to everyone. So I will now present to you, beginning Slide 30, our business drivers to reach this Ambition 2026. I will first talk of our mobile drivers for both B2C and B2B. Then I will present you our business drivers to grow on fixed B2C in the coming years. And finally, I will present our plan and drivers to grow our fixed B2B business, including wholesale. For each of these businesses, you will see that we will replicate our track record, on the one hand. And on the other hand, we will deploy new initiatives to accelerate. And in fact, most of these initiatives have already been launched or activated. Let's start on Slide 31 with mobile. As Richard explained, our ambition is to become the #2. To achieve this, we will first replicate 2 successful drivers: first, we will continue our more-for-more strategy to drive our ABPU up, and we will continue to lead on network quality to improve customer acquisition and retention. On the second way, we will accelerate by deploying our new brand positioning and leveraging the EIT acquisition. The magnifiers you see on the slide are indicating the topics on which I will focus in the next slide. Now you can see on the graph on Slide 32, on the network, we already have a solid #2 position on mobile network quality of service. As measured and certified by the French regulator, ARCEP, we are #2 for 7 years in a row. And as you can see on Slide 33, we will, of course, continue to maintain a superior mobile quality of service by increasing mobile coverage and capacity. First, we will continue to roll out mobile sites to reach 28,000 by 2023 and around 35,000 by 2026. That will add 14,000 new mobile sites in 2026 compared to 2020. And since we have, in the same time, doubled our spectrum following 5G auctions, that means that our mobile network capacity will be multiplied by 4 by 2026. On Slide 34, you see that our new brand platform symbolizes how we foster the unique relationship with and amongst our clients and also amongst our employees. With our new brand positioning, which is we are made to be together, our objective is to become #2 in prospect purchasing intentions for mobile and fixed B2C. In fact, we already have results confirming the success and positive impact of our new brand. We see an increase of 4.5 points in consideration since the launch of the new platform beginning of 2020. To accelerate, we will also, of course, benefit from the integration of EIT, as you can see on Slide 35. We have just closed the acquisition of EIT. And this really allows us to consolidate our position on mobile. We already become the #3 player in the market. Besides adding 2 million subscribers, we have also signed a long-term distribution partnership with CIC and Crédit Mutuel Bank, which brings a really complementary distribution network to Bouygues Telecom. Indeed, Crédit Mutuel, CIC has developed a unique distribution network through a very strong coverage of more than 4,200 local branches. That's more than 30,000 financial advisors that Bouygues Telecom has now secured for the future. This will be particularly beneficial in terms of SoHos and SMEs business, which are 2 segments on which CIC and Crédit Mutuel ranked as preferred banks and 2 segments where Bouygues Telecom was ready to grow its market share. Regarding our fixed B2C on Slide 36. Our ambition is to add 3 million FTTH clients. For this, we will first replicate 2 drivers of success. First, we will replicate our value for our money and our more-for-more strategies to gain additional customers and drive our ABPU up. And second, we will also replicate and continue to leverage on our best end-user equipment: router, WiFi router and TV decoder. On the other hand, we will accelerate by: first, reinforcing our premium customer experience; and second, doubling our FTTH market coverage. More specifically, if you see on Slide 37, you see how we will continue our double-edged strategy: on the one hand, a value for money strategy, which help us to reach many attractive new customers; and on the other hand, a more-for-more strategy that help us to increase the fixed ABPU. As you can see on this graph, the market ABPU should slightly increase over the '21-'26 period. And also, we expect to maintain value-for-money discount against the market average, which will be diminishing over time. Of course, we will continue to innovate to maintain a superior end-user experience through our best-in-class equipment, as you can see on Slide 38. For example, we have been awarded for our best WiFi modem box. And we were, this year, the first to launch a virtual TV decoder integrated in a smart TV. Moving now to Slide 39. You see how, in order to accelerate, we will rapidly double our FTTH coverage from 17 million homes passed today to 27 million home passed in '22 and 35 million in 2026. This will, of course, enable us to significantly improve our market coverage ratio. We ambition to serve 99% of the market in 2026. Therefore, it will boost our accessible market and endeavor our acceleration in FTTH. Now on fixed B2B, Slide 40. Our ambition is to double our market share value from around 5% to 10%. Here again, we will replicate and accelerate, replicate 2 successful drivers. First, we will consolidate our position as a benchmark in B2B customer relationship, B2B experience. And we will continue our strategy of deploying enhanced services through partnerships with leading players. On the accelerate part, we will use our multichannel distribution network to enhance our coverage of the SME segment, and we will monetize our extended fixed network coverage on both B2B and wholesale markets. I will detail these points now. As you can see on Slide 41, we have already implemented several strategic partnerships to develop and add services in B2B with leading players. These partnerships covers main offerings to fulfill the expectations of our B2B clients. This strategy is really valued by our clients for its pragmatism, agility and excellence. It combines, in fact, the best of 2 worlds, local proximity and global expertise. And we have just completed 2 new partnerships with Accenture and IBM to develop 5G B2B use cases for the future. Furthermore, our recent acquisitions with EIT are really adding additional channels and go-to-market approaches on SME markets. Let me explain this on Slide 42. And these new channels are really complementary of the ones of Bouygues Telecom. From the left to the right, you see Bouygues Telecom Enterprises, dedicated SME sales force is focusing on traditional connectivity and communication solutions. Then with Keyyo's specialized SME go-to-market approach, we have packaged solutions, which are offered through a truly digitalized platform. With Nerim, we have sales force and experts dedicated to hosting solutions. And now and finally, with EIT, EIT brings success through its unique banking distribution network of CIC and Crédit Mutuel, which are, I'll remind you, the preferred banks for SoHo and SMEs in France. This increased coverage will enable us to accelerate our market share on the SME market, which is currently really under-penetrated by challenges. Finally, on Slide 43, you see that, thanks to our Smart CAPEX deals like Saint-Malo and others, we will be able to rapidly increase our fixed network coverage. This will have 2 positive impacts; the first one on B2B because it enables an increase of our accessible market. The second one in the wholesale market, as we will be able to enter this market and develop a new activity of fixed wholesale. Indeed, the wholesale market is a EUR 1.2 billion market and with growth opportunities really on fixed. To succeed on this, we are planning to replicate our track record on mobile wholesale, where we have today already a 40% market share. In conclusion, you can see that our 2026 business ambition is supported by a pragmatic strategy to both, on the one hand, replicate our track record, and on the other hand, deploy new initiatives to accelerate. And most of these initiatives have already been launched or activated. I will now hand over to Christian.

Thank you, Benoît. I will now present to you our financial ambition for the next 6 years, and more specifically, how we plan to double our free cash flow in 2026. As Richard already unveiled it, I will remind you on Slide 45 our financial ambition for 2026. First, at EUR 2 billion of sales from services to generate more than EUR 7 billion in 2026; second, increase our EBITDA after leases by EUR 1 billion to reach around EUR 2.5 billion in 2026; and finally, accelerate the generation of free cash flow to reach around EUR 600 million in 2026. This is truly a solid profitable growth journey that we are planning to achieve. On Slide 46, we will see our levers to reach our financial ambitions. First, we will accelerate the growth of our EBITDA after leases by generating EUR 2 billion additional euros in sales from services and by increasing our EBITDA after leases margin from around 31% at end 2020, according to the latest consensus, to 35% in 2026. Second, I will explain what our investment plan is to deliver our growth. I will present our plan in terms of infrastructure-related Capex, and I will explain our outlook on client-related Capex. I will then conclude this section by providing outlook on the growth of our free cash flow. Slide 47. We plan to generate more than EUR 2 billion sales from services over 2020-2026 period to reach more than EUR 7 billion in 2026. This growth in sales from services is built upon key drivers. First, volume growth performance, including EIT integration, which is effective from 1st January of this year, our growth plan on mobile, our plan to accelerate on FTTH acquisitions, and our goal to double our market share on the fixed segment in B2B SMEs. Second, we will continue to increase our value. We'll pursue our more-for-more strategy to increase ABPU on fixed and on mobile. Third, we will perform in new businesses. Indeed, we want to hit market shares on the fixed wholesale, thanks to the new infrastructure we are rolling out through the Saint-Malo program. Regarding now our EBITDA after leases on Slide 48. We plan to increase it by EUR 1 billion from EUR 1.5 billion at end 2020, according to the latest consensus, to reach around EUR 2.5 billion of EBITDA after leases at the end of 2026. Our EBITDA after leases margin will increase by around 4 points to reach 35% of our sales from services in 2026. Let me now explain how we will achieve this growth on Slide 49. This growth plan will be achieved in 2 steps. From 2021 to 2023, the first step is achieved with the integration of EIT and our acceleration on FTTH. These 2 growth operations will increase the volume of clients on both mobile and fixed and will, of course, positively contribute to the value growth of our EBITDA after leases. However, these 2 specific operations explain why our EBITDA after leases margin will remain stable at around 31% in 2023 and will be slightly lower in 2021 and 2022. Two reasons for that. The first reason is directly related to EIT. The integration of EIT customers, who currently have a lower ABPU will neutralize the positive effect of our more-for-more strategy in mobile on our EBITDA after leases services margin. The second reason is related to the acceleration on FTTH. As Benoît previously presented, we plan to significantly boost our FTTH coverage in the coming years. Even if this FTTH acceleration is, of course, profitable in terms of fuel, it has negative consequences on the EBITDA after leases margin in the short-term. This is due to the stronger marketing effort and also to the fact that it may rule obvious the cost of access to FTTH infrastructures is variable and higher than what we currently have. Apart from these 2 impacts that are negative on the EBITDA margin, we plan, of course, to continue improving our model as in the previous years. The worth of our EBITDA after leases will be supported by the continuity of: first, the economy of scale allowed by the volume gain in both mobile and fixed; second, the continued increase of our fixed ABPU; and third, the benefits of productivity and digitization actions initiatives within Bouygues Telecom. These factors will progressively counterbalance both the dilution effect of EIT and FTTH marketing effort operations and the worth of rental cost due to the increase in mobile coverage. Overall, our EBITDA after leases will continue increasing value over 2020-2033, while our EBITDA after leases margin will slightly be impacted in 2021 and 2022 and then will cover 31% in 2023. In the second step, from 2023 to 2026, we will fully benefit from our acceleration initiatives. We will continue to benefit from the growth of our sales from services and from the recurrent positive effect of our initiatives on economy of scale and productivity. We will have completely integrated EIT, and we will then fully benefit from the ABPU increase in mobile. At this time, as we will have reached a good FTTH market share in rural areas, we will evolve our mobile and fixed business to improve our cost structures from a variable cost to leverage more profitable fixed cost structures. These levers will enable us to reach around EUR 2.5 billion of EBITDA after leases in 2026 and generate a 35% EBITDA margin -- EBITDA after leases margin. Moving on Slide 50. I just presented our ambition to accelerate the growth of our EBITDA after leases and EBITDA after leases margin. I will now explain our investment plan to deliver this growth in term of Capex related to infrastructures and Capex related to client. Indeed, we have a paradigm shift between infrastructures-related Capex and in client-related Capex. On the one hand, turning to Slide 51, our infrastructure-related Capex supports the development of our network around 3 dimensions. First, the rollout of 5G nationally with a sustained effort over 2021-2024; second, the improvement of our mobile network coverage, including the swap of Huawei equipment; and third, the acceleration of our FTTH coverage. It is interesting to note that for the first time in the history of Bouygues Telecom we will deploy 2 new technologies in the same time: 5G and FTTH. This explains why we will increase infrastructure-related CapEx over the coming years with a peak in 2022, notably to catch up FTTH market coverage. This increase is temporary, and we will then extract the full benefits from these new technologies. As you can see on the right side of this slide, the peak of FTTH rollout in the market is in 2020 and 2021. FTTH rollout will progressively decrease from 2022 onwards and will be almost completed in France by 2026. Our FTTH-related CapEx is expected to follow a similar dynamic. On the other hand, on Slide 52, our client-related CapEx is going to gradually increase over the period for 3 reasons: first, an increased volume of fixed clients, and therefore, the CapEx on box and other fixed-related activity; second, the growth in mobile usage recurring to continuously improve our mobile capacity; and third, the integration of EIT, particularly in 2021. Indeed, as you can see in the middle graph on this page, we plan to increase our B2C fixed client base by around 50% from 2020 to 2026. And we will pursue the transformation of our mix with a large majority of FTTH clients by 2026. Following the volume increase of fixed clients, our CapEx related to clients' equipment and other fixed activities will continuously increase over the period. On the right side of the slide, you can also see that mobile data usage is expected to double every 3 years in France to reach more than 40 gigabytes per month per user in 2026. Consequently, and as Benoit explained previously, we plan to continue improving our mobile capacity to maintain a superior network experience. To summarize on Slide 53. From 2020 to 2026, our CapEx would be of around EUR 1.5 billion per year, but will have a clear change of parting with the transition from infrastructure-related CapEx to client-related CapEx. Our infrastructure-related CapEx is going to gradually decrease from end 2020 to onwards after a peak in the next 2 years, 2021 and 2022. At the same time, our client-related CapEx, which today represents 50% of our CapEx, will gradually increase with the growth of our customer business. It should represent around 65% of our total CapEx by the end of 2026. We plan to keep our other CapEx items, such as our IT, our core network CapEx, constant over the period. Thanks to our acceleration plan, we will also decrease our gross CapEx ratio by 5 points to represent 20% of our sales from services in 2026 compared to around 25% today. You can see on Slide 54 that our ambition is really to invest more to generate higher and sustainable EBITDA after leases and cash flow. As you can see on this page, we plan to invest EUR 1 billion more over 2024-2026, during the last 3-year period, and to generate EUR 2.8 billion more in EBITDA after leases. To summarize on Slide 55. I explained to you how we plan to generate additional EUR 2 billion in sales from services compared to 2020, reaching more than EUR 7 billion in 2026; increase our EBITDA after leases by EUR 1 billion from around EUR 1.5 billion in 2020 to around EUR 2.5 billion in 2026, with a 35% EBITDA after leases margin; and decrease our CapEx ratio from 25% of our sales from services to 20% in 2026. All these factors will accelerate the generation of free cash flow from around EUR 250 million at end 2020 according to the latest guidance to reach around EUR 600 million in 2026. Our financial plan offers a solid profitable outlook. Overall, we plan to remain a high-performance company, delivering profitable and sustainable growth and doubling our free cash flow in 2026. This is the solid profitable growth journey that we are planning to achieve.

Thanks. Thanks, Christian. Thanks, Benoit, for those very clear explanations. Let me now conclude this presentation. In a French favorable market environment, and it's favorable because it's the first time you have 2 innovations, mobile and 5G, which arrive at the same time, and with our track record, our ambition is to remain the outperforming telco in France and in Europe. Let me summarize again our ambition slide -- Slide 57, sorry. On mobile, to become a #2 player in France; on a fixed B2C market, we want to add 3 million FTTH B2C customers; and in fixed B2B, we want to double our market share. To realize this ambition, we have 3 enablers: our best-in-class customer service, our high-speed network and our employee commitment and willingness to succeed. In 2026, our goal is to generate more than EUR 7 billion service revenue, around EUR 2.5 billion EBITDA after leases and around EUR 600 million free cash flow. On Slide 58, I want to go back to the 3 key business metrics. If you look at what we already did in the past 6 years, in Slide 59, we are confident we can replicate our track record and adding 2 million mobile clients, 1.5 million FTTH clients based on our 50% market coverage, and gain 3-point in market share value on fixed B2B. This indicator does not include Keyyo's and Nerim's market share. As shown on Slide 60, by deploying new initiative to accelerate, our mobile will add 2 million additional clients. And I would say we have guaranteed this objective through the acquisition of EIT. On fixed B2C, we will double our FTTH coverage to secure additional 1.5 million FTTH clients. And on fixed B2B, we have deployed additional networks and distribution coverage to secure 2 more points of market share value. We just consider that our ambitions realistic and achievable. I want to go back now on Slide 61 on the 3 key financial metrics. If I apply the same rules and the same principle that we present to you, which is replicate and which is accelerate. Once again, if we look at our performance over the past 6 years, we are convinced we can replicate our track record, as shown on Slide 62, and to add again, around EUR 1.2 billion of sales from services, around EUR 600 million on EBITDA after leases and around EUR 110 million in free cash flow. Now turning to Slide 63. Our new initiatives should generate around EUR 800 million additional sales from services that will be obtained through previously described customer numbers and increased ABPU, the EUR 400 million additional EBITDA after leases that will be a consequence of revenue growth and increase in margin and the around EUR 240 million additional cash flow that will be obtained by stabilizing the CapEx. As you have seen, our ambition can be realized through a combination of replicating our track record and launching new initiative to accelerate. Our recipe for success is very simple. Our recipe on success is very simple. As we show on Slide 64, another performing team that delivers on its promise. This is a team that created the success story of Bouygues Telecom between 2015 and 2020, and this is the team that will make it happen again. As mentioned, again, Slide 65, since our last Capital Market Day in 2015, we delivered what we had promised. We turn around Bouygues Telecom's growth perspective. And we'll end this presentation, Slide 66, by telling you that I'm confident to say that for the next 6 years, Bouygues Telecom will continue to be the star telecom value, delivering profitable growth and outperforming the sector in France and in Europe. Thank you very much for your attention. Let me now open the floor for questions.

[Operator Instructions] Our first caller is Jakob Bluestone of Credit Suisse.

I had a few questions, please. Firstly, I'm interested in understanding a little bit more if there's any comments you can make gross versus net CapEx, and specifically, whether in terms of this expansion of your network to 35,000 sites. Should we be thinking about build-to-suit and tower sales? That's the first question. My second question is on your cash flow target. You're guiding for 2026 EBITDA of EUR 2.5 billion and EUR 1.4 billion of CapEx. It's about EUR 1.1 billion of EBITDA minus CapEx. I don't quite see how you get from EUR 1.1 billion to only EUR 600 million of free cash flow. So that would imply about EUR 500 million of tax and interest. So can you maybe just sort of walk us through the bridge from operating free cash flow to free cash flow? And then maybe if you can just comment a little bit more on the margin weakness you mentioned initially in the early years from the EIT integration. How much margin dilution should we be thinking about in the first few years?

So thank you very much. I think I'll be answering your question. The first one is about, I think, disposals. As you know, we already said that we will have around EUR 200 million disposals in 2021 related to the sales of our -- what we call our mobile switch center to Cellnex. This is an operation that was forecast many months ago. And we could have also some disposals in 2022, probably around EUR 100 million. But 2023 and looking onwards, we do not have forecast disposals now. So the EUR 600 million free cash flow in 2026 is mainly coming from operational performance and growth in EBITDA after leases. Your second question is about the EUR 600 million free cash flow in 2026. I understand that you don't like to calculate it. Keep in mind that 2026 is in 6 years. So this is a very long period. So you will understand that we are quite cautious about the guidance we are giving to you. So it's -- okay, it could be higher, but we prefer to be cautious for the moment. Your third question was about EBITDA after leases margin, I think, in 2021. So as you know, we'll have 2 impacts in 2021, in fact. The first one is the dilutive effect coming from EIT. And the second one is the fact that we will have many marketing effort to growth our market share -- to grow our market share, sorry, in FTTH. And as you know, in France, the clients of first year benefits from promotions, and so the margins coming from this client is very low. So we'll have a negative impact coming from that. To be more precise, the consensus I think that in 2020, we will be around EUR 1.5 billion on EBITDA. For next year, we should have around EUR 60 million more coming from EIT and also a slight increase -- but a slight increase in term of EBITDA coming from organic operations from Bouygues Telecom. I hope this is clear for you.

It's Richard. Just to give you a slight complementary point concerning EIT and to say that -- you understand that when you have a full MVNO with the 3 main telcos interconnect, the first benefit is to migrate your customers on your network. That's -- we start in 2021 and will probably finish in 2022. That will help us to benefit about the synergies that we have of EIT in this approach, outside of the comments -- Christian's comments concerning the opportunity for growth and the capacity that EIT can deliver to us to adding some more customers. But definitely, first, the synergy levels will be done by this. And at the end of the day, of course, we will have integration of -- on our own networks with cutting, I would say, the EIT network and everything, but it's not before 2023. So that gives you a flavor about all the scope we have to do this progressively in the next years. But first, we will need to have some investment to be doing that.

Our next question comes from Andrew Lee of Goldman Sachs.

I had a couple of questions. Firstly, that is -- there's a couple of many questions within it, really, which is on your big volume ambitions that you've laid out today. And just wondering how you think about the balance between volume and value in your revenue growth expansion. What growth are you estimating for the market growth within your guidance? You obviously gave some analyst forecast, but what are you anticipating within your guidance? And I guess really most important question is what is the risk that the share ambitions that you've highlighted kind of end in friendly France and bring back competitive deflationary pricing in France? Second, kind of questions really around your tower ambitions, just following on from Jakob's. Is that 35,000 going to be delivered by build-to-suit with the TowerCo, and therefore, off balance sheet? And when will you announce that? And obviously, the fiber backhaul to support it?

So we have 2 parts: one, concerning the volume and the pricing and the revenue; and the other part concerning the network coverage and everything. So Christian will answer first about the coverage and the network.

Sorry. So about the networks, you know that you have a build-to-suit agreement in place with Cellnex and PTI for [indiscernible]. Of course, we could continue in the next coming year to use this agreement we have in place. But that doesn't mean that we have no CapEx at all when we are deploying these towers. Because, in fact, the active equipment, for example, the antennas, the electronics are paid by Bouygues Telecom inside Bouygues Telecom's CapEx. It is only the passive equipment, like the tower and synchronizer that are paid by the TowerCo. And as now more and more, these kind of assets are shared between operators, we can roll out more sites, I will say, without putting in place more -- too much passive equipment. And so the requirement to increase our ability, we do not need so to increase our build-to-suit agreement that we have today.

To try to answer to you about the point concerning benefits of growth and benefits of the revenue and ABPU, I don't want to speak about price first. I want to speak about the -- I would say, the customer willingness to use these smartphones and to use fiber. Take an example on the smartphones. The smartphone is quite simple. The ambition probably are now plans, and that's the reason why we invest into the infrastructure to maintain the quality of the network is the usage will be multiplied by 4. If you're looking at the trends, it's not missing that it's Ericsson and the market studies and everything. The thing that the trend will be multiplied by 4. So more antennas, more of this, that's the reason why Christian expressed to you our investment there. And -- but outside of that, its usage then multiplied by 4, the customer will be agreed to pay a little bit more. And that's the reason why we believe in our plans that the ABPU will grow a little bit. I'm not asking multiplied by 4. We speak about some euros, and that's it. If I'm looking at the volumes, we tell you, on the mobile, it's quite easy, to be honest, with the IT giving 0.5% of -- 50% of the job. And on the other side, you have just to do, I would say, quite similar that we did in the past. And with the quality of our network, we believe we can maintain that. And if you look at the recent result on the last 9 months of Bouygues Telecom and if you make the calculation, you will see that the 2 million can be done. That's the point I can tell you. And the second thing is about fiber. Fiber, 50% of the city are today in the situation. That's clear. But 50%, we do something significant. But we know that with 100, we have the opportunity to double. And I would say it's a new market. At the beginning, as a new time. We are not speaking about mature. It's beginning. And when it's beginning, you have opportunity to reshuffle the condition of the situation. And that's why we believe in our plans about the growth. I hope we have answered to the 2 points that you expressed.

Just clarifying, you said you don't need any build-to-suit for the towers? Is that correct? Or just don't need to build-to-suit to the equivalent of 15,000 extra towers? And then just -- yes, and I think it was a clear answer on the volume versus value. But you just -- you didn't mention what you -- what market growth you've incorporated into your guidance in terms of revenues.

To suit, we will continue to use build-to-suit. But as we are sharing passive infrastructure with other operators in France, we do not need to use it too much. That is my answer. And also, Bouygues Telecom will have the active equipment inside this CapEx.

[Operator Instructions] Our next caller is Mathieu Robilliard of Barclays.

Follow-up questions, maybe from the previous ones. When -- and that's about the debate between volume growth and market growth. You talk about 2 million clients being added in mobile. And I wanted to understand if that was mostly B2B or M2M? Or is it also B2C? Just to understand exactly where this growth in mobile would be coming from. Then on the B2S, maybe I'm getting it wrong, but my understanding is that you're building a number of cell sites. You're actually recognizing a revenue for that, and you sell them to Cellnex. And that's a revenue item. But that doesn't impact the CapEx, as in the asset disposals that you have done, where I'm seeing that were built in the past, such as data centers, et cetera. But the benefit of the B2S -- so to try to make it clearer, the benefit of the upcoming B2S is going to be seen at the revenue level but not at the CapEx level. That's a question actually. And then generally about the network densification. So obviously, investing a lot for quality. And I was just curious to understand whether here, it was just a question of increasing the capacity? Or it also reflected the fact that you're thinking about new application driven by 5G that actually will require network densification, maybe small sells? Or again, if it's just about capacity at this stage?

So I will first answer to your question about build-to-suit. We do not recognize the build-to-suit revenue inside our service -- sell from services revenue. So this will have no impact, of course, the figures you saw last in the presentation. And the build-to-suit agreement does not have, sorry, any impact of EBITDA. It's probably more a negative impact because, of course, as we doesn't have the CapEx in the past, we have to -- went at a quite higher price the infrastructure in the future. But all of that is included in the figures we showed to you in the presentation.

Adding the other point that you want to have, I would say, first of all, you need to understand that the telecom mobile market is still growing. It's not the fact that you have much more French people. It's purely because now people are becoming more and more multi-equipment. So due to this situation, we will have more volumes. The other part concerning the fact that what you think about B2B or B2C, it will be both parts. And for sure, on the B2C, there is opportunities for multi-mobile. But on the B2B, we expressed the fact that we will grow due to the fact that we will have, in fact, the capacity on a small and medium, the SMEs market, to win market share. We are very low there. There is no reason not to be stronger. And that's clear that we can have something. You say about new applications -- you speak about new applications. So about the new applications, I can say to you that, of course, we speak about classic main network. And we don't speak about new applications as we see classically with the 5G. The 5G will help in different period with different things. We speak about some applications before 2023. But at the end of the day, after 2023, with a full core network, we will have the M2M activity. And with the M2M activity, you will have a chance to develop new businesses. And with these new businesses, we will have the chance to develop other things. But today, what we present to you is basically only the part concerning B2B and B2C is that speaking about the future, about the M2M activity and all the diversification concerning that. Well, I'm not speaking about small cells. I'm speaking about only about basic classic business.

That's very clear. Just to come back on the B2S revenues. I truly understand these are not included in service revenues. But very clear, and that's always been the case. But it is, I think, included in other revenues on which you did not give any guidance. But I just wanted to make sure from my understanding that these revenues, which had a lower negative growth, very low margin will be still ongoing for a number of years because you're increasing -- you're continuing the B2S.

In the service revenue, we never had the, I would say, the build-to-suit revenue included in the past, and it won't be the case also in the future. Due to accounting rules, we are obliged to account this build-to-suit revenue inside our total revenues, that's what we call other revenue. Inside the other revenue of Bouygues Telecom, you have many things. You have the handset, accessories, build-to-suit revenue and we have some FTTH impact because when you are installing a new line -- a new FTTH line on the premises, you have revenue and cost at the same time with no margin, for example, you have so many things. So it is difficult today to give you a guidance on these other revenues. But what is important is that these other revenues does not generate any margin on EBITDA or negative margin, for example, for subsidy on handset. But we account for directly for the subsidy inside our P&L, for example. So our guidance is on service revenue and EBITDA. And build-to-suit revenue, as I said before, does not generate any margin. And the build-to-suit program generates in the future mainly higher rental due to the fact, of course, we don't own the infrastructure.

Moving on to our next caller, we have Frederic Boulan of Bank of America.

A couple of questions. Firstly, on FTTH CapEx. On the infrastructure side, can you explain a little bit what specific costs you're talking about as you seem to remain largely on the wholesale model. And you talk about moving to co-investment model later on. So is it not which will drive more CapEx as you acquire co-investment tranches? Secondly, just following up on the -- on your assumptions. When you look at your growth ambitions, what kind of assumptions on market reaction you take? I mean you plan to be #2 in mobile, so I guess about taking SFR in mobile. Do you have some flexibility on this if you see it starting to drive pressure on the market? And on the broadband target, it's the 3 million, that seems to be an FTTH. So it could be largely driven by migration. So do you have also here a target in terms of share or net growth? And maybe last question for me. If you can spend just a bit more time on the drivers of margin improvement in the outer years. So you have this pretty impressive 4 points increase in 3 years. If you can -- I know you touched on it, but if you can spend a bit more time on what specifically is going to drive this pretty remarkable uptick in margins?

First, the question concerning the market reaction. Okay. Well, I would say, I'm not speaking about specific market reaction. I'm not -- what I'm doing today, I'm speaking to you about the current run that we see as the normal things. And as we did in the past, there is no reason to say why suddenly it will not work. The quality of our network will be reinforced, everything going well. And our sales channel distribution will be enhanced. So we say, taking mechanically what we've done. And if you look at what will happen with -- in the past, we can say reasonably, we see that as a normal thing. And we will have more sales channels, where we can address new markets as SMEs, we said. So we say reasonably, we're convinced that there is opportunities to make it and we believe in. That's the reason why we present those numbers to you.

So I will answer the 2 other questions about FTTH CapEx. You are right. We are mainly in the wholesale approach on FTTH. But for example, when you are speaking about tranches of 5%, it concern only vertical part of the FTTH network. So we have, in this case, to be able to address the clients to buy the dental part, for example, this is CapEx, to install central optical center. This is another part of CapEx. So this is -- or to link the optical center to our core network with the backbone. So this is all the CapEx we will have. You saw on the slide that FTTH CapEx are quite high in term of infrastructure, but I think quite limited compared to competitors that are rolling out, for example, Orange, completely FTTH networks. About the margin from 2024 and 2026. In fact, you have, I will say, 3 different effects on the EBITDA after leases margin. The first one is, I will say, continued improvement of the margin. This is coming from fixed ABPU increase. So the fixed ABPU will go up year after year. So this is -- you have a cumulative effect, I will say, on this performance. The second effect is economy of scale. This is also a continued effect. This is increasing year after year as you will have, of course, more and more client. And the third one is productivity effect. So it will help to increase our EBITDA after leases margin. On the other hand, you have some negative effect during the 3 coming years of -- on our plan. The first one is FTTH marketing cost. This is, I will say, kind of fixed cost because you have to put in place, for example, some specific assets to address rollovers in FTTH. And so this is not a cumulative effect on EBITDA. You have -- we'll have this impact during the 6 coming years, of course. But at the beginning, the impact is relatively high. But at the end of the period, the impact is relatively low compared to the cumulative effect that I spoke at the beginning. The third thing is ABPU in mobile. We will have no-go in EBT ABPU in mobile during the 3 coming years and probably even a negative impact for the next year because of EIT dilution effect. This is not a bad news. This is due to the fact that in 2020, we didn't have EIT in our account, and we will have them next year. This is, of course, positive in term of revenue and EBITDA. But the indicator, this is a dilutive impact on the EBITDA after leases margin. The third thing to have in mind that we always said that we will manage our CapEx quite pragmatically. In rule, as in France, this is not a big rule. For example, you have more than 100 public chatting network. It is difficult to know now where we will have a good market share and where our market share will be at a lower level. So we do not know at the moment where we need to buy high number of tranches and where we do not need to do that. So we have to wait for 3 or 4 years to see where our market share will be high. And in this part of France in this public chatting network or medium dancer, we will then buy the network -- the FTTH network. So we'll move at this time from variable cost to fixed cost. And thanks to the market share -- the high market share we'll have in this area, our EBITDA margin will be, of course, better.

Just back to my first point, I mean, is it not what's going to drive FTTH infrastructure spend in the outer years? I mean you present this chart, Page 51, when it drops pretty sharply. But I would have expected as you deploy co-investment in terms, this is what's going to actually drive pretty high investments in fiber infrastructure.

On the vertical part of the FTTH infrastructures.

[Operator Instructions] Our next caller is Nawar Cristini, Morgan Stanley.

Just 2 follow-ups. Firstly, I wanted to ask about the moment, if you can give us an update about how you see the situation evolving between 2021 and 2022 in terms of the return of roaming? And secondly, just to come back to Jakob's question about the EUR 600 million free cash flow in 2026. We're facing the same difficulty to reconcile the numbers. So the message is very clear, you're cautious there. It will be interesting to walk us through the main areas, of course, let you stay to your plan today.

Could you repeat your first question, part of the question? It's about the...

The roaming. If you can walk us through your expectations for now in terms of the return of roaming between 2021 and 2022?

In '20, we've seen what happens. That's clear. In '21, we consider that, of course, a part of '21 will be impacted. And the way we have integrated that is that the vaccine could probably solve that. So it depends on the speed of the vaccine in France. We don't know yet exactly what will happen, but we are considering that the impact of the roaming in 2021 will be still consistent, and that we'll integrate in our model.

So just to come back on the 2026 free cash flow. Yes. We said that it will be around EUR 600 million free cash flow coming from the EUR 2.5 billion EBITDA after leases and EUR 1.4 billion of CapEx. Just keep in mind that in 6 years, it's a very long period. So for example, if we had a shift of EUR 50 million in EBITDA in the bad direction and also at the same time, a shift of EUR 50 million of CapEx also in the bad direction, we could lose EUR 100 million free cash flow. That's why we prefer today to be quite cautious in the figures we gave to you.

Our next question comes from the line of Josep Pujal of Kepler.

Just two questions from me, please. The first one is on FTTH. Could you tell us what is the retention rate you see at the beginning of year 2, when the discount of year 1 ends? What is the percentage of those customers that you are able to retain despite this increase in the price? And by the way, what is the level of this step-up or this price increase 1 year to the other? And my second question is to understand that the 2 million clients gain that you are foreseeing. If you had to qualify them, depending on where do they come from, do you think that they will come again in terms of the current market share of each one more depend on the big players side or more on MVNOs? Is EIT acquisition giving you an edge on this area or not?

So I try to answer to your point. If you speak about the gap between year 1 and year 2, it's roughly around EUR 15, 1-5, okay? If you're asking me, if you see a structuring difference between the churn, between year 1 and year 2, well, not so much. There is not much details on that point up to now for me at the moment here. And we would probably -- will answer later, but I don't have exactly the numbers. I don't want to give you wrong numbers. But in principle, when people have put in place their fiber and it works, I would say to you that very often, the people want to continue and so on with the same. I have no information for this -- sorry for that. Second point is about the EUR 2 million gain you speak. First point, a big part will come from the market growth first. That's the first element that we believe. And the point is -- is on that point, to say that it will come from that. And the question after that will be quality of experience. It depends how it happens. But quality of experience is a key reason why the people are coming to look at you. And people are looking at the quality of the experience, the quality of your network. I don't know for the future how it will be, but we are convinced that you will have a good 1 network.

Okay. Understood. And if I can add a follow-up question, to which degree the strategy that you present to us today is set on stone? And that, okay, you will stick to that whatever happens? Or is it adaptable? And if the market changes, you are ready to change that?

If we present to you this number, it's because we consider we are confident on it. And I would say, we give you the rules of a simple model. Replicate, you can understand, is quite easy because it's looking at and stretching our numbers. Looking at the numbers of 2020, the first 9 months, make a multiplication you'll be looking at and you will see that it's really credible. The fact that we say we have 2 million subs on EIT is basics. It's a number of customers they have. So on the mobile, it's quite consistent. On a fiber, we say, we have been able to do it. And it's at the beginning of the ramp-up because the ramp-up is growing very fast on the next 6 years, and there is no reason not to do more. And as you say, in parallel, for sure, a part of our customer will migrate to that. But part of the others will migrate, too. And as we are small here, we consider that we'll have a better chance to grow. It's basic.

Okay. Very clear.

To say to you, it's exactly the same thing that we did in 2015. In 2015, we present to you numbers, and we showed to you that we have been able to deliver it. If today now, we present numbers, and we believe in it, and we believe we can do that. It's not a question of price war only. It's really a question of quality, and people have been choosing, with telecom, mainly of the quality. And it's a long-term approach. When you choose people for price, you have much more risky situation. When you choose people for quality, you have a better chance to maintain your customer base.

[Operator Instructions] Our next question comes from Thomas Coudry of Bryan Garnier.

So I have 4, actually. First one, and it's going to be about the bridge from your EUR 5 billion to EUR 7 billion revenue increase. Indeed, mobile ABPU increase is part of the equation. How -- what is your view on the market pricing today and the ability to indeed increase prices and maybe monetizing 5G given, in particular, the latest move by Iliad giving out 5G for free? So I'd be happy to have your reaction on that. Second question still on this bridge about B2B. So I understand the B2B business in France is about -- market in France is about EUR 10 billion. So moving from 5% to 10% market share would be an additional EUR 500 million. Is this really the type of amount that we should consider here? And can you confirm, it seems here in your presentation, but can you confirm that this upside in B2B excludes any additional M&A there? And the last question about this bridge is the contribution of fixed wholesale. Can you be a little bit more detailed on how you intend to -- where you intend exactly to monetize your fixed investments? Will it come from Saint-Malo? But I understand Saint-Malo is -- you only have a minority share. So I'm not sure how -- where you would get wholesale revenues from. And 1 last question, please, a financial one on the cash flow. Can you give us an outlook on how we should look at the cash flow in the next 2 years given that indeed, the EBITDA margin is going to be under pressure, and you are going to have, let's say, a significant amount of gross and net CapEx over the 2 years? How low should we expect it to be in 2021 and 2022?

I'll try not to forget 1 on your 4 or fifth questions. So I'm coming back to the first one. I hope I'm not making mistakes. You speak about ABPU pricing. And the evolution of the market and tendency and the 5G. So if you look at the pricing, the pricing is a way to market things on the floor. But at the end of the day, what we told you is the people, which have been going during 10 years from 1 gig to 10 gigs. In the next 6 years, we'll go probably from 10 gigs to 40 gigs. And we say, it's not only a question of -- it's not only a question of pricing, it's a question of mix of sales that we will see in the marketplace. And probably, the people we will [ brand ] their bundles and everything. So that's what we see as an opportunity. And this is the fact that the usage will be multiplied by 4 that we consider could help us to win some euros. About the 5G, and you speak about 5G war. I don't know. I say, we are not really in the 5G today up to now, it's starting point. You have no 5G handsets in France, I would say, below 5% or 10%, something like that, nothing else. 90% of the handsets are still 4G. The people are asking quality of 4G. If I'm looking at -- to be able to offer a 5G premium, you need to have a 5G premium network on which you deliver capacity, on which you deliver quality, on which you deliver speed. Until -- and before that, you have no chance to make an increased price. That probably is the reason why some of the cases are not increasing the prices. But I believe, definitely, that the 5G will be features that if the people will have more usage, higher speed, good coverage. In that case, they would be agreed to add some euros. If it's only sharing existing current, I would say, frequencies and everything, well, you don't give globally real benefits. You're sharing your current coverage and you're sharing your current capacity between 4G and 5G. It's another option. I don't say it's the wrong or right one. It's another option. So in that case, I understand. If at the end, the customer don't see the speed, if at the end, the customer don't see any change, why should pay more? I want to deliver premium product to be sure that the people -- if they have premium product, they agree to pay for. Understand that. Is it clear? Now I can give the other point to Christian, which can give you answers.

Yes. Thank you, Richard. So about B2B, I'd just remind you that our target is to double our market share in the fixed SMEs B2B are not, of course, of all the fixed segment. We are already at around 30%, for example, in mobile B2B for the big companies and more than 10% in mobile, in the SMEs B2B. So this is in the fixed market, where our market share is lower at around 5%, and this is in the SME segments that we intended to double our market share. So this is not exactly taking EUR 500 million. About wholesale, yes, we are rolling out infrastructure Saint-Malo, you are right. We have, today, a minority -- we are today a minority shareholder of Saint-Malo. But we also have a service agreement with the JV we have with Cellnex. And thanks to this agreement, we are able to use, for a fixed price, 70% of Saint-Malo infrastructures. Of course, the 70% will be used for own needs, for example, to link our mobile sites to network through fiber network. The Saint-Malo, the 70% will also be used by our B2B to increase, for example, the market share we spoke before. And we will also use it to take some market share in the wholesale business, for example, with some small operators addressing also the B2B market. And today, these operators are mainly buying infrastructure to Orange. So we think we could take some market share, for example, with content providers that need to link together some data centers in France to be able to operate in France. So this is how we hope to take some market share in this wholesale segment. To come back on the free cash flow for 2021. As I explained before, we intend first to have a [ goal ] in terms of EBITDA, EUR 60 million coming from EIT, a very slight increase coming from Bouygues Telecom core network. So it -- you should be able to calculate the numbers. So for the growth CapEx, we gave you the figures, EUR 1.5 billion for 2021, and we gave you also the EUR 200 million disposals. So -- well, I'll let you calculate our -- the free cash flow needs is -- will be. Just an indication is that our free cash flow should remain positive despite the fact that we are increasing by EUR 250 million of gross CapEx level compared to 2020. About -- if we look a bit further in 2022, what we could have in 2022. So the level of CapEx should remain at the same level, EUR 1.5 billion. I said before that we will have probably less disposals in 2022 compared to in '21. And our EBITDA, we'll have in 2022, quite good performance, mainly because we will have a higher level of synergies coming from EIT in 2022 than in 2021.

About the B2B part. When you ask a question concerning the wholesale, maybe I had some elements that Christian expressed to you. You need to know that in parallel of what we expressed about Saint-Malo, everything that can be coming in, there is another point, is today, the B2B is still with a situation on which we know that. Orange is a very strong position. And in parallel of it, we have the regulator today, which is trying to modify the rules to be sure that we have a chance to win market share. So we are definitely believing that with part of the own infrastructure, part of the regulator, part of the situation, there is really definitely a window for the next 6 years to be part of the market share here.

Just -- sorry, this is Christian. Just 1 more point. We remind you that our free cash flow definition is after tax and interest, financial income and interest, and not only EBITDA minus CapEx.

Moving on to our next question. We have Eric Boulan of Bank of America.

Just a quick follow-up and a good question. Firstly, a follow-up. So I was asking earlier on the assumption you make on the fixed broadband additions, you mentioned EUR 3 million in fiber, but do you have any target in terms of net adds overall in broadband? Or the focus is really migration of your own base? And secondly, just trying to see whether in your plan, you have assumed any change in capital structure with some of the JVs that you have. So you have got a few of them with a 49% interest in Asterix. Is there a plan to call some of the options which will change the business plan? Or the step-up in margin you presented is simply organic?

Starting with the first point concerning the fix. I would say that for sure, a part of the customer will migrate. But due to the fact that we have decided to invest in a 50% area, which is much more in a pin area, I believe that it is where we have small market share. And as we have decided to go there, definitely, it will be incrementals. We don't know exactly the figures that -- I would say, the size exactly, but we definitely, in our plans, will have an increasing point concerning the pin area where we were, historically, nowhere in the past. With Curzon, we have been starting back on the mobile side. And if we have been starting back on the mobile side, there is no reason to capitalize on that and to be able to do it on the fiber side. And of course, at the last point, with EIT, which has branches, which is much more in the field and much more in, I would say, non-dense area, there is a window to increment again our acquisitions.

So about your question about the JVs. We have today 3 JVs with partnership in infrastructure. The first one is with Phoenix to our investment for mobile site. The second one is with [ Senex ] to roll out backhaul infrastructures for our mobile site and towards our B2B and wholesale segment. And the third one is on FTTH, what we call the Asterix program with Vauban Infrastructures. For all JV, we have a call option to buy 100% of the JV in 20 years -- 20 years, sorry, so in 2040. It's quite a long period, except with Asterix, one where we have a collection to go from 39% -- 49%, sorry, to 51% in 5, 6, 7, 9, 8 or 9 years and so on. So we can move on the JV from 2024, [indiscernible] 2025, and onwards each year to take control of Asterix. It could be a way to ameliorate, I will say, our business model in the fixed. We will see at the moment where I said before, our market is the best to do that, so if we need to buy some tranches from infrastructure operators or to increase our level of participation in a JV to take control of it.

But that's not something you have to do to get to the target?

Yes, it should be -- it could be something that could help us to increase our EBITDA, after this is margin, but only if our market share is quite good in this. Or if it is not the case, it will not be interesting.

And our final caller for today is going to be Jerry Dellis of Jefferies.

My first question has to do with your FTTH CapEx. We see on Slide 51, the strong increase between 2020 and 2022. Should we assume that you will have cofinance of the whole of the medium density area by 2022, which you have to clarify for us, please, where you stand in terms of cofinancing on the meeting density area today? The second question is that you described in the presentation how FTTH is essentially a whole new market. I wondered if you could explain why that is the case because essentially, under the cofinancing model, people have access to the network simultaneously. It's simply a discussion as to whether the economics are cofinancing or rental and whether they're cofinancing and building wiring. So essentially, everybody has access to the product at the same time. So I wonder why it is quite the same thing as Bouygues entering the fixed broadband market from scratch several years ago. And my final question very briefly. Given that you're within touching distance of SFR's #2 market position in mobile following the acquisition of EIT, could you perhaps clarify for us really what your mobile market share ambition is? Is it to really be the #2 operator with some distance to the number three? Is there anything you can say on that, please?

About the last point you're asking. You're asking me to give you an answer to a crystal ball. Sorry for that, but it's -- well, we believe that with EIT, we make a real step. And with this step and with the acquisition, but not only the acquisition, with the partnership we have with the 4,000 branches, with all those kind of things, we consider that Bouygues can accelerate its classic basic growth that we had in the past. And where it's coming from, I don't know how it will come. I don't know. But I can tell you, if I'm looking at all the numbers historically, we have been able in 2015, to give you simulations, we are able to give you [ canned ] simulations, how it will be finally done at the end? I don't know. But what I can tell you that we consider that the fact to become #2, it's possible.

So about your question on FTTH infrastructure-related CapEx, I think that [ no graph ], you have a perspective effect because the level of CapEx in FTTH infrastructures is exactly the same level in 2020, 2021 and 2022. So we have already accelerated our rollout in FTTH. So there's no peak on this part on CapEx next year or this year, sorry, compare as last year. And about your question about buying tranches. as I explained before, the tranches only concern vertical part of the FTTH infrastructures and not the horizontal part, neither the optical center we need to install or the active equipment inside the optical centers, the central center, neither the backbone to link all of that together. So it's a -- that's why sometimes, Orange roll out an area in France, either in a medium-dense area or public initiative network. We only arrived 6 months or 1 year later because it takes time to roll out all this active equipment and backhaul and backbone equipment.

Could I just a follow-up, please? Could I just understand, as the margin picks up from 31% beyond 2023, can you achieve that margin pickup without having cofinanced every available spot in the medium-dense areas?

This moment, if we need, as I said before, to increase, to buy some tranches if we need to do that or to renegotiate some agreements with infrastructure operators because with a higher market share, it will be more easier to renegotiate the price. Or, for example, put in place some scheme like Asterix in other areas like, for example, in the medium dense with SFR or either in public-initiative network or to go from 50%, 49% of Asterix to 51%. So we have many solutions to increase our level of EBITDA after less margin when our market share is good. That's why we decided, for example, to put Asterix in place this year. It is just because our market share is quite good in the medium-dense area, in the part of medium-dense area where Orange is, and [indiscernible] Asterix program doesn't concern at the moment, only Orange part of this area. So we could, for example, put that in place in other areas in France, leading to a better margin.

Thanks, Christian. Thanks, everybody. So I would like to thank you about all your questions. It was interesting for us. You've been with us during 2 hours. I hope we have been clear. If I have something to say to you, remember 2 words, duplicates, replicates and accelerates. This is simple. If you can apply that, that will help you to build any business plan that you can imagine in the future. Thank you very much.