Bouygues SA (EN) Earnings Call Transcript & Summary

Good morning, everyone. Let us start this presentation of the half year results. We'll do this with Pascal Grange and then we will have a discussion with all the heads of divisions that have come here for the occasion. All right. So well, let us start with the main figures for the first half of the year. Revenue stood at EUR 26.1 billion, a 41% increase, reflecting the acquisition of EQUANS in October. At the beginning of the year, we didn't have EQUANS on a like-for-like at constant exchange rate basis, the actual increase only 3% percent. COPA stands at EUR 214 million at EUR 727 million. Net income attributable to the group stands at EUR 225 million, up EUR 78 million. And we put some details on the net debt. Net debt grew from EUR 3.7 billion to EUR 10.6 billion. Well, if you restate this for the acquisition of EQUANS that took place last October. So restating it and also plus the amount paid to Free Mobile, I'll get back to that. And the buyback of our own treasury shares, the net debt would been actually better. The reason I said I would mention this thing with mobile is that we challenge both the amount and the immediate execution of that amount. And as we do every time because of the seasonality of some of the businesses, in particular, Colas, the performance for H1 are not representative of the annual performance. Let's move on to the highlights of this half year for the group. On this slide, you can see that we celebrated 60 years of the Minorange Guild's creation -- it was created to celebrate the best workers with the values of the group, the notions of respect, exemplarity, love of a job well done, availability, belonging, team -- teamship, teamwork and belonging to a company with building the future. The Guild members, there are about 600 around the world involved in the building of complex works. And there are 16 Guild's right now, bringing together 1,500 members around the world. You have the energy Guild and Jerome, you're supposed to -- you should come down to the front row, you can do this. Nobody will notice. As I was saying, Guild members -- well, Energy Guild members, especially those within EQUANS working for Jerome who's just stronger. Another point here, employee shareholdership. We've completed the 12th operation of shareholdership reserve to employees. We confiance these are employees in the French subsidiaries of the Group, including those of EQUANS, and this was greatly oversubscribed, which displays the attachment of the commitment of our employees. This has brought about the creation of 6.8 new shares, but the dilution was fully compensated because precisely with this in mind, the Group bought back and canceled shares in 2022. In -- so employee shareholdership accounts to 23.9% of the capital stock compared with 21.3% at 31 December last year. This confirms Bouygues position as the first company in [ Tech ] in terms of employee shareholdership. We have 2 representatives of shareholding employees on the board, plus the 2 staff representatives which is statutory. A few words about Vivatech. Vivatech is a technical -- technological show. We showed a number of innovations and agreements with start-up companies, in particular, to reduce the carbon footprint of the building industry. With Colas, we have a tool to analyze roads. And all the data collected by our vehicles make it possible to use materials that can be reused or recycled. Bouygues Construction developed a platform that can recycle some items such as false ceilings, doors and such like. We had a solution for energy consumption. EQUANS presented this, we can store thermal energy in aquifers, it's called ATES. So that does make for a greener air conditioning. For storage of electrical energy, Bouygues Construction showed batteries for construction sites that are charged up at night so as to make them available during the day and using less expensive energy and smart charging by EQUANS is a software that enables buses to be charged optimistically to optimize energy consumption. And then Bouygues Telecom has brought about new innovations related to 5G. So we have telerehabilitation -- rehabilitation by Apizee that is for patients that need rehabilitation. We have an autonomous droid delivery system presented by -- built by TwinswHeel. And then we have the box, Wi-Fi 6 for Bouygues Telecom and the 4K Bbox and the 5G Box. So these are new innovations that give us an opportunity to rub shoulders with start-up companies and then offer new services and products to our customers and understand new trends and areas where we should try and make headway. Let's move on to the operational review with the backlog, the order book for the construction business. It stands at EUR 30.8 billion, which gives us good visibility on future business. If you look at this in detail, that backlog starting with Bouygues Construction where orders were taken to the tune were up 68% with many significant contracts, especially overseas, but there's also good legacy business that is the businesses where, of course, individual contracts are lower, but Bouygues Construction was chosen to extend a metro line in Hong Kong. This is one of the territories where we've been working on recurring basis for EUR 470 million. We were also chosen to build 2 data centers in Australia for EUR 350 million, and there's another country where we've made headwind with the Riviera Tower, a 200-meter tall tower -- EUR 200 million contract. And then the new deals, which occurred in Q1. And in particular, in Q1, we signed the Abidjan metro contract for EUR 770 million. At EUR 15.4 billion, the order book is up EUR 1.6 billion, up 12%. This is mostly driven by the building business, [indiscernible] international where the order book is up 29% and also -- although less so by public works where orders are up 7%. In the Property business, Bouygues Immobilier is facing a challenging market. This has been going on for several quarters running. The backlog there is down EUR 400 million, minus 21% standing at EUR 1.4 billion. And then Colas, its backlog is up. Well, the order taking is up 12% compared to H1 2022, with significant contract in rail, but also roads with the renovation of the road in U.S., the Interstate 26 of about EUR 110 million. And then a number of major projects driven by Colas group, in particular, the change -- the modification of lines in the London EUR 215 billion. So the backlog is up 9% at EUR 14.1 billion with orders in road, up 5%; and rail, up 21%. So let's look at the revenue and COPA. Revenue from the construction business stands at EUR 12.2 billion, up 3% and of which 4% on the like-for-like and constant exchange rate basis, thanks to Colas and Bouygues Construction. Remember that Bouygues Immobilier is unfortunately off. Revenue for Bouygues Construction is up 5% because of the international businesses. The revenue of Bouygues Immobilier, including the share of co-development is down 12%. We have resumed the notice on co-development. We do this with, well, other developers to share the risk. This is a portion of the business that uses Bouygues Immobilier's resources. Without that, without co-development, revenue would have been down 14% and not 12%. Colas' revenue is up is 4% and 6% on the like-for-like and constant exchange rate basis. It's driven by 2 main businesses, namely Road and mostly in the EMEA areas, but also Canada and a lot in the United States. And Rail, as I said, the -- that order book is growing fast. COPA, that is current operating profit from activities is down EUR 7 million. Now you have to remember what I said. This is a seasonal business. This is not representative of annual performance because Colas, of course, has a slow business in the winter month. So this is not a reflection of the expected performance for the year. COPA in Bouygues Construction is slightly down over EUR 120 million and the COPA margin is 2.5%, but this is related to the nonlinear rhythm pace of construction projects. So this, again, is not representative of the expected performance. But as business is down in the property business Bouygues Immobilier's, COPA with co-development stands at EUR 15 million. If you look at COPA without including that, we were able to contain the drop in COPA. And finally, Colas', COPA stands at minus EUR 127 million, down EUR 29 million over 1 year. There are positive effects due to the measures taken that we showed after the high H1 results in 2021. Let's move on to EQUANS. This has been consolidated since Q4 2022. We have the integration, therefore, EQUANS, we changed the scope of EQUANS because since January of this year, we've also integrated Bouygues Energy and BYES' business. So the comparisons with H1 2022. Of course, are relevant because -- well, back then, EQUANS was not in our books in the first half of 2022. In line with what we announced at Capital Markets Day with Jerome and Etienne Jacolin, our strategy is to go for profitability rather than volume. So we're very selective in our contracts. We have an order book of EUR 26.4 billion at the end of June 2023, up 2% compared to 20 -- to December 2022, giving us good visibility on future business. This is a buoyant context. We have a dynamic order taking EUR 9.5 billion, 38% in France, 62% abroad. We have data centers, in particular, built in Germany and the U.K. And one item we've been monitoring is what you call the underlying margin of the order book, which is estimated in such a way that we can ensure good performance in the end. EQUANS' revenue stood at EUR 9.1 billion in H1 2023, EUR 3.1 billion in France, EUR 6 billion abroad. Again, this is a very positive momentum around the world. COPA stood at EUR 243 million. So that's 2.7% profit margin. Now from activities, that margin is -- has improved compared to Q1 2023. That reflects, of course, the seasonality of the business, but also efforts of the -- as part of the Perform plan conducted by Jerome, which is bearing fruit. And as regards EQUANS, we confirm the outlook for 2023. EQUANS in 2023 enjoyed a slight growth in revenue because of a selective choice of deal -- of contracts. Current COPA' was -- is expected to be anywhere between 2.5% and 3%. And the conversion of current operating profit, COPA to cash flow before the WCR is estimated anywhere between 80% and 100%. TF1, [ Rodolphe ], gave you the presentation yesterday. TF1 confirmed its agility in managing its programming costs while confirming its leadership in ratings on commercial targets, while cutting costs on operations and so the performance is good. As expected, revenue is down in H1. It was down in H1 and TF1. On a like-for-like basis, it stood at, it was down 9%. The media arm was hit by a scope effect because we dispose of Unify the assets. On a constant basis, it was down 6%. The advertising revenue reflected lower investment by advertisers in -- well, in the context of the retail business has suffered headwinds. So we are down 5% on a like-for-like basis and constant exchange rates in Q2 2023, so less of a drop than in Q1. There's also a decline in revenue at Newen Studio down 16% because of cyclicality of the delivery of program, but also the termination of the Salto business. And then COPA margin on H1 stood at 14.7%. So we caught up with some of the slowdown in Q1 and that is because of the good performance of the media business. The COPA margin for that stood at 21.6% in Q2, up 0.4 percentage points compared to Q2 2022. And then we should note the sound cash generation of TF1, including free cash flow after WCR at EUR 155 million, up EUR 34 million compared to H1 2022. Finally, the outlook for TF1. The outlook is maintained. New different outlooks for different businesses. But on the Media area, we should be able to go back to 2022 levels in H2, and that would be, of course, partly due to the broadcasting of the Rugby World Cup in September. There's been a recent announcement of the resumption of the iconic series Plus belle la vie, but that will be broadcast on TF1 and there will be streaming on the MYTF1 platform and that is a clear illustration of the channel's strategy to move towards a digital transition. Under [ Rodolphe ], the TF1 will consolidate its leadership in 2023 with a COPA margin close to that of 2022. And TF1 as a group will still generate sufficient cash to have a stable or even growing dividends over the next few years. We will continue with Bouygues Telecom, a few first good news. Bouygues Telecom is #1 on WiFi for the fourth year running. This rating is conducted by nPerf. And for the first time, we are #1 on the fixed business, on all technologies, and that will enable Bouygues Telecom to be just not #1 on WiFi, but also on the fixed line business. And you should also know that some of our competitors advertise last year's rating, and we remind them that this is 2023, they better use the figures from 2022 rather than '23. You can imagine that those who are announcing their performance did better last year than this year. The second interesting information about the fiber technology is that Bouygues Telecom is investing to give more comfort to the claims. We've invested in the XGS-PON technology, thanks to which we can have a better throughput 4x faster so that we can reach up to 8 gigabits. This technology is available today in Paris and progressively, it's going to be deployed in the other major cities. Now the commercial momentum is continuing. With Telecom, as you can see on the right-hand side, at the end of June, operator had 15.3 million customers with a mobile plan. This means up 109,000 customers during the first half year, including 82,000 during the second quarter, which is a good performance given the market today. The momentum was continued as well in FTTH with a gain of 270,000 new fiber customers, including 122,000 during Q2. The fiber-to-the-home clients, FTTH clients reached a total of 3.3 million. That represents 69% of the fixed installed base to be compared to 58% a year ago. That's what you can see on the bottom right-hand side, therefore, the customer base now is supposed to do good performance. Now we have 4.8 million customers. That is up 86,000 customers for this first half, including 40,000 for Q2. The performance of fiber is to be explained. Thanks to the deployment of FTTH. Bouygues Telecom has already commercialized 32 million FTTH premises and is about to reach this objective, which is 35 million FTTH premises for the end of 2026 when we presented the Capital Market Day 2 years ago for Bouygues Telecom. The key figures now for Bouygues Telecom. The good commercial momentum goes together with an increase in value growth in value, which is still our strategy. We want volume and growth simultaneously. At the end of June, sales build, customers was up 6%. And that's thanks to a solid customer base and a growing customer base and an increase in ABPU. In ABPU, that is the amount that's charged or billed to the customers. For mobile lines, ABPU is going up EUR 0.30 for the year to reach EUR 19.7. In fixed lines, ABPU is up EUR 1.8 year-on-year to reach EUR 30.5. So the services sales during the first half of 2023 is at EUR 2.9 billion, therefore, up 4% year-on-year. And this is still penalized by the incoming sales due to the drop in the incoming uses that we can charge or bill, but this is no impact on EBITDA after leases. Overall, sales is up 5% during the period benefited from the other sales, which is driven by the works sales. EBITDA after leases was up 12% year-on-year, thanks to growing sales and thanks to the good monitoring of our costs at Bouygues Telecom. The EBITDA after lease margin is improving to reach 31.5% nowadays, therefore, up 2.1 points in a year. I'd like to draw your attention to the fact that during Q4 '22, we requalified or restated for the full year, that is 2022 annual fees that is frequency bands 900 megahertz and 1,800 megahertz. And that means we are now aligned on the 3 main competitors. The effect was a positive effect of EUR 23 million on EBITDA after leases during Q4. The growth rate for EBITDA after leases for Q1, Q2 and Q3 2023, all things being equal, benefited mechanically of this requalification. And this effect will be offset as of Q4, which will be a good basis for comparison. COPA was up EUR 57 million to reach EUR 366 million. Operating profit was up as well in the same amount and then gross capital expenditure, excluding frequencies that reached EUR 857 million, which is the level we had in 2022. Now what about the outlooks for Bouygues Telecom? Well, the outlook has not changed. Bouygues Telecom for 2023 foresees an increase in sales. Sales build to customers and also EBITDA after leases nearing EUR 1.9 billion, and gross capital expenditure, excluding frequencies at approximately EUR 1.5 billion. We will now continue with more figures with Pascal Grange.

Thank you, Olivier, a few additional details on the accounts at 30 June regarding the income statement on Page 26. It is -- well, you have had details about revenue and COPA that was already presented. We have the PPA depreciation at Colas, TF1, and Bouygues Telecom. We also recognized a PPA depreciation of 26 million EQUANS for -- EUR 26 million for EQUANS in H1 in line with the forecast we announced at Capital Markets Day. We announced EUR 50 million for the year as a whole noncurrent. That is nonrepresentative of business stand at minus EUR 80 million in H1 2023 compared with minus 44% in H1 2022. Bouygues Construction recognized a noncurrent charge of EUR 46 million. This is related to a dispute in Singapore for building delivered in 1997, change in regulations in a country where it is present. EQUANS recorded EUR 19 million in noncurrent charges because of the implementation in Q2 of the management incentive plans we announced at Capital Markets Day, plus legal fees as part of our disposal plans. TF1 also noted -- recognized EUR 19 million in noncurrent charges. This is related to the optimization of the property -- of the plants and property. The strengthening of the career plan for our employees and the acceleration of the digital transition. These noncurrent items for TF1 are related to the implementation of an optimization plan to reach EUR 40 million in savings -- in operating expenses starting in 2025. EUR 10 million of [ EUR 50 million ] of which will be reinvested in the acceleration of the digital transition. Net financial debt is up EUR 76 million, and this is related to -- interest expenditures related to the acquisition of EQUANS. Regarding the income statement, the bottom line also includes EUR 155 million tax charge compared with EUR 103 million in H1 2022. we have an effective tax rate of 39% compared with 30% in H1 2022. This higher rate is related to deficits -- tax deficits abroad, which do not give rise to the recognition of deferred tax assets in the share of the -- net income of companies on an equity basis is up EUR 54 million because of the typical contribution and the stop of losses at Salto. As a result, the net profit attributable to the group stood at EUR 225 million, up to EUR 78 million compared to last year. As you can see on Page 27, net debt at 30 June 2023 stood at EUR 10.6 billion compared with EUR 7.4 billion at 31 December 2022. This EUR 3.1 billion increase is related to the usual seasonality of our business, but it also includes the paying of EUR 310 million to Free Mobile on 16 May, including EUR 308 million, plus interest as part of the dispute on smartphones and mobile contracts. Let me remind you that we strongly challenge both the ruling and the validity of its immediate execution. It should be noted that variation in capital in where capital requirements related to business and others is up EUR 209 million, reflecting the efforts made by all businesses. The ratings remained strong, A minus, negative outlook for Standard & Poor's and A3, stable outlook for Moody's. In the following pages let us look at the changes in net debt in 2023. On Page 28, the change in net debt on H1 2023 is not to be compared with H1 2022 because H1 2022 had a positive impact related to the fair value variation of pre-hedging swaps introduced as part of the financing of the EQUANS acquisition. The good news this year is the positive improvement in WCR changes and the others businesses standing at 200 -- to reach EUR 291 million. The changes compared with December 31, 2022, as follows: includes net acquisitions and disposal minus EUR 62 million for acquisitions and disclosed at Colas, EQUANS and the buyback of shares at TF1. The capital increase for employees plus EUR 150 million. The buyback of shares and the liquidity contract minus EUR 29 million. The variations of residual swaps, not including taxes on completed swap operations, minus EUR 44 million, dividends, EUR 741 million, the EUR 310 million paid out to Free Mobile and operations standing at EUR 2.1 -- minus EUR 2.1 million. I'll get back into the details now. Let us start off with the net cash flow standing, not including the taxes on netted on completed swaps, including the payback of lease obligations stood at EUR 1.2 billion, up EUR 158 million compared to H1 2022. CapEx, net CapEx, not including frequencies stood at EUR 1.1 billion, up EUR 67 million over the year, that change reflects mostly the integration of EQUANS. Variation WCR related to others and business and various businesses was marked by the usual seasonality, but the change is minus EUR 2.1 billion compared to minus EUR 2.4 billion in H1 2022. So this is an improvement of EUR 291 million. This completes this presentation. Thank you for your attention.

Right. Then, we will conclude with the outlook. Well, that's pretty straightforward. We confirm the outlook, revenue close to that of 2022, improvement in COPA, current operating profit from activities, that is based on the 2022 pro forma, integrating EQUANS as if the acquisition had taken place on January 1, 2022. Let's move on to the Q&A. We'll have 2 parts to that. First, we'll take questions in the room and then there will be questions online. And we will, of course, take these questions as well with the representatives of all the businesses of the group. Don't speak all at once. There will be a chance for all of you to speak. Holidays are coming. Maybe the presentation was too clear and called for no questions, which is good news. It means that we are communicating better and better? Are there -- well, it really was crystal clear. That is -- all right.

Are we allowed to take calls from the outside? Yes. We will take how many we can take. Questions online? [Operator Instructions] The first question comes from HSBC, Nicolas Cote-Colisson.

I have lots of questions, starting with EQUANS. Have you noted a change in the commercial attitude of your competitors since you took over EQUANS. Is -- do they manage to retain their customers? Or are they losing them out to you? I realize that this question applies to many of your competitors. Second question about WCR figures for H1 2023 compared to 2022. There's a significant improvement of almost EUR 600 million, not including EQUANS. If you have details about the way in which you were able to achieve that EUR 600 million gain, not including EQUANS, can you drive -- draw consequences for the rest of the year. I realize there is seasonality from 1 half year to the next. But can you expect seasonality at EQUANS as well? Because last year in H2, there was EUR 400 million gain on WCR. And then final question on Telecoms. On the price environment, the average ABPU is up in the fixed line business, much less so in the mobile business. Can you comment on your ability to raise prices in one but less so in the other.

I'm turning to Jerome on the attitude of our competitors, we were seen as being the company offering lower prices beforehand.

Well, yes, we are in a position to raise our prices in as much as our competitors seem to be ahead of us in terms of profitability. And of course, this makes it easier for us to gain on profit margins. We're not losing out on market shares. In fact, we're gaining market shares. It should be pointed out that the fact that we've joined Bouygues has stabilized our customers -- the EQUANS customer base, and so this mix for better orders.

Looking at our competitors, the fact that we are going for profitability rather than volume. This is good news for the industry because it means that rates are going up. And so they are not bringing them down on their side. On regards -- regarding seasonality, we are in line with the plan announced on the 30th of June. On WCR?

Well, this may be disappointing. You know that for many years, WCR has been going up and down. In the construction business WCR is not a relevant indicator because it is subject to significant fluctuations. It was unfortunate last year. It is more -- it's happier this year. Nonetheless, this is not a reflection of what will happen by year's end. What really counts is not so much variation WCR, but rather the efforts made by all our teams on the ground to make sure that bills should be collected on quickly. And once -- well, first, bill to be drawn up and then collected on. And then, of course, that contracts should include good payment clauses. So there are lessons to be drawn from H1, except, of course, we're happy that the situation is better now than last year, but we're continuing these efforts in all parts of the group precisely to optimize WCR by years and as we do every year. And that is why we do not give guidance on this indicator because it is -- it fluctuates too much based on our contracts in various businesses.

All right. And then the question about rates.

On the fixed line business, we were the least expensive operator. We're gaining ground here, but we're also gaining on prices in the mobile business. Well, the price environment of the markets says Bouygues such that now we are facing less promotions than last year, both in -- both in the fixed and the mobile business, which is, of course, is a positive factor because we have a stabilization of prices. Regarding the different movements in mobile and fixed businesses. It should be pointed out that Bouygues Telecom has 2 features in -- both in -- well, we have the lowest installed capacity. And so new customers that join us represent, of course, a larger portion. And so they have a 1-year sort of promotion deal and then the prices go up. So the transition from year 1 to year 2, is felt stronger at Bouygues Telecom than our competitors because the share of new customers is bigger. It's true that we had a lower ABPU on the fixed line business than our competitors, and we are catching up on that compared to the rest of the fixed line business, which is not the case for mobile.

Okay. Next question.

[indiscernible]

Well, I wanted to talk about the dispute with Free EUR 310 million. This is, for the time being, an exceptional item. It's probably part of what you can pay overall. So what's the total risk, please?

Well, no, no. No, no. This is a huge amount. This is something for which we're getting to the court. So no, no, no. This is okay. That's the amount. You shouldn't go too far.

Okay. So you've paid the money. Now you have to get the money back.

Yes. Yes. And that's why we told you twice. I told you, Pascal told you that we contest the ruling, and also the provisional execution of this decision. And when we reach appeals, we will get back a big part of this sum.

Mr. Mathieu Robilliard from Barclays.

That was very clear. However, I have a couple of questions to ask. I have a question about construction. You have signed many contracts during Q2 and I wanted to know the decisions you made between volumes and the return, the profit level you gain on these contracts. Second question on Colas. Your Rail performance is really good. And several years ago, you had slightly pulled out from some rail activities that were not profitable enough. And my question is to know if you've changed your vision or if these contracts, however, is still profitable, and the risk level is not too high. And the third question has to do with the Telecom business. Well, of course, there are promotional offers that are less aggressive than a year ago, yet I have the impression that during Q2, there was a slight deterioration. Bouygues, for instance, with a EUR 10 offering with 40 gigabits -- that's quite aggressive. I wanted to know more about this. Can you give us more color on that? And also, what can you say about a deterioration on the side of the competitors? And can you tell us more about the beginning of Q3?

I'll answer this quickly. Well, we didn't want to say we want volumes and not margins at Bouygues Constructions because the COPA objective in 2023 is quite close to the one we had in 2022. And then if we look at the activities that were discontinued at Colas Rail, it wasn't the project activities. These were activities that had to do with transportation when Colas Rail was a rail operator for freight and this is something that we discontinued in 2018 or 2019. Now today, the Colas Rail business is a project-based activity to develop, for instance, Edmonton and the route around Edmonton are the 2 contracts that Frederic won in the Philippines from an overhead metro line. And then there's maintenance activities we signed off U.K. maintenance contract with a good profit, good margin that we signed off at the beginning of the year. And then the telecom activities, are we really lowering prices in the mobile business? I think that's your question.

Will answer that. Well, if you look at the mobile market, today, the situation is much more favorable in terms of promote offers than a year ago, but we have to segment our approaches. If you look at the mobile offerings that we have, that is in the digital world, what we sell on the web. That's where there are more promotions. We have different segments, different customers. The digital offers today that have quite a lot of data package, 100 gig or more are at EUR 16. A year ago, there were at EUR 10. So there's a big gap between EUR 16 and EUR 10. And then sometimes you have less data offerings. And of course, the prices are lower. It's EUR 10, but then it's different user profiles or categories. So we create value for consumers that use a lot of data. And we have price competition, but the prices have remained stable.

Can I ask another question about Telecom? We've seen an improvement in ABPU. And if you look at Q3 and Q4, would you say that there will be an acceleration in these improvements for fixed lines. You were saying 7 on the back book, and this is not going to have an impact on all of the subscribers. This is not yet factored in any of your contracts. So what about the rest of the year? Is there some type of ramp-up to expect.

Well, I'm not going to give you too much information because I don't want the competitors to know what we're going to do with our installed base and flows and pricing for Q3 and Q4.

So you'll have to attend the February meeting so that you know what we've done during the second half of 2023.

Now we'll go to the English speaking. We'll take our next question from Jakob Bluestone from BNB Paribas.

I've got 2, please. Firstly, on EQUANS, I guess this is we're sort of gradually getting the first quarterly disclosures for the business. I was hoping if you could help us understand the intra-year phasing for revenues and profits for the business. I mean Q2 revenues were up sort of $350 million versus Q1, your operating profit was about 50% higher in Q2. So can you maybe just help us understand what is sort of the low earnings quarters and which are the high earnings quarters? And what is it that drives the seasonality of that business? Is it just people want more air conditioning in the summer, and that's why you have high revenues in the summer? Or how exactly does that seasonality actually work for that business? And then just secondly, on the Telco business, you've reiterated the EUR 1.9 billion of EBITDA after leases for Bouygues Telecom, which is about 9% growth. You did 12% in the first half if you maintain that, even if you adjust for the EUR 23 million spectrum fees, you would end up closer to EUR 2 billion of EBITDA than $1.9 billion. So I guess my question is, is the guidance for Telecom's EBITDA conservative? Or are there some headwinds -- some other headwinds other than the sort of Q4 spectrum comp effects that we need to be aware of?