Earnings Call: Q2 2020

Aug 27, 2020

We will take all your questions at the end of this presentation. Let me now give the floor to Karine Adam Croussant, who is Head of Investor Relations at Bouygues. Thank you. Good morning, and welcome. Thank you for accepting our invitation to attend this teleconference for the presentation of our results for the 2020. Before beginning, I'd like to remind you that on our website, wwwbouygues.com, you will find the press release with our results, the presentation that we'll be commenting throughout this teleconference, an Excel file resuming the main figures for the group and its businesses and the consolidated financial statements. This presentation contains forward looking statements and information concerning the Bouygues Group and its activities. They reflect objectives based on the group's senior management's current expectations or best estimates. However, due to a number of factors and uncertainties, our actual results may differ materially from the forward looking statements described here today. Let me now give the floor to Martin Bouygues, the group's Chairman and CEO. Thank you, Karin. Good morning to Juan and all, and thank you for taking part in this teleconference, which is being held by teleconference because of the current situation. And I will cover the group's results with Olivier Roussard, Pascal Granger and the CEOs of the five business lines comprising our three activities. We'll take all your questions at the end of our presentation. Let's begin with Slide number four, the highlights of the 2020. The first half of the year was, of course, marked by the COVID-nineteen crisis. However, despite the strong impact of this crisis, the group nonetheless generated a positive current operating profit in Q2, which is, of course, very good news. Furthermore, the group is well positioned to weather this crisis, thanks to a very robust financial structure and a high level of liquidity with $11,100,000,000 in available cash at the June. Our construction businesses have a record backlog, which gives us good visibility for future business. The landmark event of the second quarter is that Colas posted a current operating profit in Q2, thanks to the rapid restart of its activities. Bouygues Telecom, since the end of the year, lockdown has returned to sustained commercial momentum. The strong growth in sales from services was up 8% and the increase in EBITDA after leases was 9% year on year. Bouygues Telecom has signed an agreement with Credit Mutual. This is an exclusive memorandum of understanding with a view to acquiring EIT, which is the leading MVNO operator in the French market and an important distribution agreement. Our telecom looks strongly positioned for the years to come. Now given the information we have to date, and in particular, the sharp downturn in roaming, Bouygues Telecom has revised its guidance because it's been suspended since last April. Let's now move on to the group's key figures, which you'll find on Slide number five. As expected, the COVID-nineteen crisis has had a considerable impact on our results. Sales were down 15% year on year or down EUR 2,700,000,000.0, which is entirely due to the COVID-nineteen crisis, which we have estimated to add an impact of minus EUR 2,800,000,000.0. Sales fell sharply in France, down 19% due to a strict lockdown, followed by a gradual resumption of our activity in all three sectors. In international markets, sales were down 10%, affected by the slowdown of activity and the lockdown in several countries in which we have operations. Now the COVID-nineteen crisis fully accounts for the shortfall of EUR $585,000,000 in current operating income in the first half of this year. Were it not for COVID-nineteen, this would have been an increase of EUR 65,000,000 by comparison with the same period last year. After reaching a low point in April, the group's current operating profit returned into the black from June onwards, so became profitable once again from June onwards. Our net profit attributable to the group was also down sharply given the context. As mentioned at the start presentation, the group's current operating profit was positive in Q2 twenty twenty. That's a profit of EUR 110,000,000, which I'm very happy about, needless to say. This performance, which you'll see on Slide number six, was due to the strong responsiveness of our business, particularly Bouygues Telecom, whose current operating profit has improved year on year, largely driven by the increase in its customer base and, of course, the increase in ABPUs. TF1, which achieved substantial savings over the period and of course, Colas, which restarted its roads business rapidly, particularly in France and Canada. Let's now take a look at the group's liquidity situation. This is Slide number seven. As you can see, at the June, this year, Bouygues had a very high level of available cash at EUR 11,100,000,000.0. This is up sharply by EUR 2,700,000,000.0 compared with June 2019. This EUR 11,100,000,000.0 breaks down into EUR 4,400,000,000.0 in cash and EUR 6,700,000,000.0 in undrawn medium and long term facilities, of which $6,300,000,000 are devoid of covenants. The debt maturity schedule is very well spread and includes the new EUR billion bond issue that was completed on the April 7 last. I should also point out that the group redeemed EUR 1,000,000,000 in bonds in July, so this amount is still included in the schedule as stated at 06/30/2020. This high liquidity position contributes to the group's strong financial structure, which is shown on Page eight or Slide eight. At €3,900,000,000 the group's net debt at the June 2020 was an improvement on the situation twelve months beforehand. This includes the positive impact of Alstom due to the dividend received and the partial disposal or disposal part of our stake in Alstom in September 2019. However, this is not taken into account two other items. First of all, the payout of a dividend of EUR 1.7, which will be put before the AGM next week for payment on the September 11, if approved. And secondly, the acquisition of EIT by Bouygues Telecom, which should be closed in Q4 of this year. I'm now going to give the floor to Olivier Roussard for a detailed review of our activities. Thank you, Martin. So we will look at the various business areas, starting with Construction on Slide 11. So you can take a look at the business activity, the commercial activity. The order book, the backlog to Construction has a record high of EUR 35,700,000,000.0 at end June, which gives us good visibility on the future. That backlog has two major items in it. There are two deals that were made in Q2, a number of deals actually in Q2. And of course, there was less of the order book that was, in a way, consumed because of the lockdown in Q1. In the three metrics, the three business areas, especially with Bouygues Construction, you have a significant increase of the backlog, 18% with the new orders in over the half year. Bouygues Immobilier with a wholesale sale of fourteen oh eight lots at the Caisse de depot in H2. And then for Colas, the order book is well, the increase is more limited, 1% over the year because there were fewer orders in Routes Metropole because of the pandemic and the electoral context. And the and of course, as you know, the local elections were postponed. Finally, the order book for Bouygues Construction the backlog in Colas internationally is up and reaches now 63% compared with 61% last year. On Slide 12, we illustrated this commercial momentum on Slide 12 with a number of significant projects in Q2. I won't go through all of them. There are two railway projects, the building of a high speed rail wheeling HS2 in The U. K. To replace and the replacement of the power supply of a metro line in Singapore. And then there's a product to build infrastructure for renewable energies with the wind farm in Fecan. And you have this on the top left corner of the slide. Looking at the financial performance, this is Slide 13. As expected, there's, of course, the effect of COVID-nineteen, a significant effect, of course, on H1. At thirty June twenty twenty, construction sales were down 19%, minus EUR 2,600,000,000.0. Current operating profit is actually a loss. It's down EUR $5.00 9,000,000. These declines are entirely attributable to the COVID-nineteen crisis. You have a little box at the bottom right corner. We believe that the effect the impact on sales is minus EUR 200,000,000.0. And on current operating profit, well, the decline is EUR $530,000,000. France was affected because of the strict lockdown and a slow return to business. And of course, there was the postponement of local elections, of course, that slowed down road building also slowed property development. Overseas, while internationally, there was less of a slowdown. But even though our activity was slowed down in a number of countries where we do have business. After a low point in April, the situation gradually improved. Construction business started and returned to profit as of June. That improved and continued throughout the summer and is a reflection of proactive management of the COVID-nineteen crisis. On this next slide, Slide 14, Bouygues was confronted to COVID as early February in Hong Kong because case number 16 was discovered in Hong Kong in February. So we had to close down for two weeks or fourteen days. Then of course, we supplied all our employees with masks and gels. But after that, were no further contaminations after this fortnight of interruption. And we on the strength of that experience, we were able to start business again in France as early as fifteen April, so long before the end of the lockdown. And we extended that to other countries, which had also suffered stoppage as it were. So that experience was put a profit throughout the world. At mid July, just about all the sites had reopened in France, and we were back almost to pre crisis levels. Internationally, sales were almost back to normal in many countries. The last country that returned to normal business was Singapore at mid August. Summer was the opportunity to catch up on activity. We asked our employees to take their vacation during the lockdown so as to be able to work during the summer and make up for the losses over Q3. So we started new projects in size. The various MITI, the various business areas tried to limit the effect of the COVID crisis on the performance, negotiating the additional costs with customers and trying to save on other items. On Slide 15 now, of course, the French government has launched a number of stimulus packages on this side. Well, that's not just in France, around the world. You can see on the map the various stimulus packages that are available. So the numbers vary if you compare in The United States, the Americans want 1,000 million euros that is €1,000,000,000 and the Democrats are opting for €3,000,000,000,000.3000 So we'll see what comes out. In Europe, $750,000,000,000, sorry, will be allocated partly to the energy transition. But the various stimulus packages will be looking at low carbon solutions, and our group is in a good position because we have a large portfolio of low carbon solutions so that we can take the opportunities that will arise through these stimulus packages. We have a recap of the four areas where we do have solutions. Of course, sustainable construction, sustainable building, But we also have wooden structures, renewable energies, and that is everything to do with the storage of solar farms. Renovation as well, where we have the green solutions for service buildings, positive energy buildings. And then what is known as clean mobility. And so we're looking at public transport infrastructure and such like. Now we are on Slide 17 now, a few examples of low carbon projects. We have the Sensation Building in Strasbourg, which won a price for timber construction. Then we have Fotgen, which is the largest floating wind turbine in Europe. We have PureLink, which is floating solar power plant. And on the right hand side of the slide, the bottom right, we have the Wetway Park. That's a solution that we have to light up roads and pathways. And this is for a cycle path. CF1 gave their presentation in July, so I'll go over them quickly. But the performance in H1 showed the effect of the COVID-nineteen crisis on its business, but also it demonstrated TF1's ability to adapt rapidly on programming and programming costs to limit the effects of the crisis. Sales in H1 was EUR $884,000,000, down 23%, minus EUR $261,000,000. So this is essentially due to the COVID-nineteen impact estimated at EUR $250,000,000 over the period. You, of course, have the cancellation of advertising campaigns. A number of advertising projects were suspended. And then a number of shootings, especially in France, were interrupted, not just in France but abroad as well. Current operating profit is EUR 68,000,000, down EUR 95,000,000, and that's wholly attributable to COVID-nineteen. That loss is less than that of sales because, of course, efforts were made to bring down the cost of programming, the programming costs. And the TF1 was able to save as much as EUR107 million on programs on free to air channels. About a 30 reduction. Since the end of the lockdown, the decline in advertising revenue is now reversing. Some of the advertisers are coming back. But because of the uncertainty of developments, TF1 has decided to forego its objectives for 2020 and 2021. Let's move to Bouygues Telecom in Slide '21, and you have a good sales performance since the end of the lockdown. Bouygues Telecom was the first operator that reopened its shops as early as November at the end of the lockdown while respecting the sanitary precautions, we told you about the measures taken, the preventive measures taken on the construction sites as well, but likewise for our shops. Ever since the shops reopened, the level of subscriptions is in fact higher than it was prior to the crisis both for mobile and FTTH. In mobile, we had a concern that there's a new profile shaping up in the market with the premium customers migrating to the Internet, but that's not what happened. In fact, we have premium customers returning to the shops and there's a high level of conversion into purchase. And so in H1 twenty twenty, the share of the premium segment maintained its position vis a vis SIM only and web only. And so the mobile plan base, not including MTM, machine to machine, was 11,800,000 customers at end June twenty twenty, up to 174,000 new customers since end twenty nineteen and one hundred 61,000 on Q2 alone. As expected, we have a higher demand on FTTH. The customer base for FTTH stands at 1,200,000 customers that end June with, as I said, 210,000 new customers since the 2019, including 93,000 in Q2. Penetration rate for FTTH now stands at 30% compared with 20% before. And so now Bouygues Telecom finds itself in a ratio comparable to that of its competitors on the FTTH ratio vis a vis all the fixed base customer fixed line customers. On Slide 22, we have the numbers for Q2. You can see that with more than 6% growth in overall sales at Q2 twenty twenty. Bouygues Telecom shows that is uninterrupted quarterly growth, the strongest in the French market since mid-twenty seventeen. So that performance the growth performance has been maintained for 20 quarters running. So that is a consequence of the strategy that was introduced in 2015, which has made possible for Bouygues Telecom to look at constant growth momentum. Of course, we have a growth in the mobile based customers customer base, but also a fixed customer base as we saw. There's also an improvement in ABPU, average billing per user. On in Q2 twenty twenty, as you can see at the bottom the top right corner of the slide, mobile ABPU restated for roaming is up EUR 0.3 at EUR 19.7 per customer and per month. And fixed ABPU is up €1.3 at €27.2 In spite of the decline in roaming, because of course, well, roaming is generated roaming profit is not generated within Europe but intercontinental travelers. So there's none of that. But in spite of that, growth in service sales in Q2 was sustained at plus 6% over one year. That's for the fixed service sales. It's up 114% on mobile service sales, up 4% for mobile. So the increase in not including roaming billed to customers compensated for the loss in roaming revenue because of the absence of intercontinental travel. On Slide 23, overall, on H1 twenty twenty, service sales were up 8% over one year at EUR 2,400,000,000.0, as you can see on the slide. On others, that sales is down because we sold fewer handsets in the shops. You have to remember that that's sold is almost essentially in shops. So when the shops were closed, you had to complete vanishing of the sales. But at EUR 3,000,000,000, sales were still up 4% over the half year. It does include the COVID-nineteen impact. You can see on the bottom right corner, estimated at minus EUR 70,000,000. And it's only a EUR 20,000,000 effect on current operating profit. EBITDA after leases is also up at 9% at EUR $711,000,000. That includes EUR 20,000,000 in nonrecurring costs associated with the advertising campaigns that occurred in Q1 and also the effect of the well, the repositioning of the brand and also the EUR 20,000,000 impact of COVID-nineteen in H1. EBITDA after leases stands at 29.6%, up 0.3 percentage points compared with Q1 QH1 twenty nineteen. Current operating profit stands at EUR $253,000,000, up EUR 23,000,000 over the year. That includes EUR 17,000,000 in capital gains because of the sale of FTTH premises to the co enterprise as part of the Asterix project. You may remember that this is a deal with Orange in medium coverage zone. So well, Orange is in a position to generate lease revenue out of that by owning the premises. So we sold them to Orange. Operating profits was down €26,000,000 in H1 because of the absence of noncurrent income. And noncurrent income was up EUR 50,000,000 last year. Gross CapEx were EUR $581,000,000 over the half year, up EUR 51,000,000. Over the same period, sales, that is disposals, were EUR 194,000,000, mostly linked to the Asterix product, 185,000,000. Let's go back to the announcement we signed in June. Bouygues Telecom signed an exclusive agreement with Euro Information, which is a subsidiary of Credit Suisse with a view to acquiring 100% of And to sign a distribution partnership, EIT is the number one MVNO operator in France. It is present on all the three key markets, B2C, C2C and also wholesale, that is to other MVNOs. It has five brands, and it has wholesale agreements with Orange, SFR and Bouygues Telecom. EIT has about 2,000,000 customers. Its distribution network is essentially made up of 4,200 branches of Credit Mutual and CIC and as many as 30,000 commercial advisers customer advisers, I beg your pardon, on Slide 25, looking at B2C, we are in a context where that market has reached maturity. So of course, there's tougher competition there. And the operation has a strategic interest for Bouygues Telecom because, a, we can step up our growth in both mobile and because of the well, because we have a wider base, we can also offer fixed line contracts to the new customers. We can also have an additional distribution network. I mean, it is eight times bigger than that of Bouygues Telecom. And of course, it means that Bouygues Telecom now can be in areas where we had no previous experience. So we are present throughout the territory. And of course, this is a fixed cost business model. So if we can have more customers, well, mechanically, this means that profitability is higher. So this means that we can secure our free cash flow because of fixed costs. Our contribution, as estimated based on the baseline scenario, we expect to have an additional EUR 200,000,000 in EBITDA after leases and generate as much as EUR 100,000,000 in free cash flow. On Slide 26, we will tell you about the price of acquisition for this MVNO base. So we have a fixed part, $530,000,000 payable at closing and an additional part, which could be anywhere between EUR 140,000,000 and EUR $325,000,000 payable over five years and dependent on the revenue generated by the bank network. The operation will be finalized by end twenty twenty. We need to have the necessary administrative authorization, that is the French competition authority, but also there also needs to be consultations with staff representatives. I'll now give the floor to Pascal Grange, who will give you a detailed presentation of the numbers. Thank you, Olivier. I have a few additional explanations for you on the accounts as of June 30. Concerning the income statement on Slide 28, I'm not going to elaborate on the sales and the current operating profit that have already been commented at length. Other operating income and expenses netted out at minus EUR44 million in the first half. This is down by comparison with the first half year of 2019 and mainly includes EUR45 million in nonrecurring expenses at Colas due to the reorganization of the road business in France and the continued decommissioning of the Dunkirk site. Last year's nonrecurring income was a positive EUR 42,000,000 because it mainly include nonrecurring income at Bouygues Telecom stemming from the sites the mobile sites mentioned by Olivier earlier on. The cost of the net debt fell by EUR 13,000,000 over a year. This was in particular due to lower interest expense at Bouygues SA following the bond redemption in October 2019. Moving down to the lower half of the income statement. We booked a tax credit of 12,000,000 at June 30 by comparison with an expense of EUR 132,000,000 last year. So this calculation gives us an effective tax rate of 4%, which obviously is not in any way significant. This is due on the one hand to the fact that certain losses recorded abroad did not give rise to the booking of deferred tax assets. And on the other hand, due to the fact that the losses in the 2020 are activated at a tax rate lower than the annual rate insofar as these losses will in all likelihood be used from 2023 onwards. Overall, the net income attributable to the group is a loss of EUR $244,000,000 after a profit of EUR $225,000,000 last year. Let's now take a look at the group's balance sheet at June 30. Total of the balance sheet is EUR 41,500,000,000.0 after EUR 39,400,000,000.0 at year end 2019. Moving on to Slide number 30. You'll see that on the asset side, non current assets totaled €20,400,000,000 up €132,000,000 This variation can be largely attributed to two important factors. Firstly, the increase in the value of joint ventures and associated entities, is a €281,000,000 increase, rising to a total of 1,800,000,000.0 This is mainly due to the valuation at €295,000,000 of Bouygues Telecom share in SDAIF. SDAIF is the joint venture mentioned earlier with Vauban Investment Partners in the general framework of the Asterix project. This is also due to a EUR 136,000,000 decrease in property, plant and equipment, which is down to EUR 7,400,000,000.0, a decrease which is mainly due to Colas. Slide 31. You see that current assets totaled EUR 21,100,000,000.0, up almost EUR 2,000,000,000 by comparison with the end of last year. First of all, current operating assets increased during the first half year by approximately EUR $870,000,000. There are three main contributing factors here. First of all, an increase in other receivables at Bouygues Telecom, an increase of $325,000,000, including EUR $222,000,000 rating to SDIF, which I've just mentioned. In fact, the proceeds from the sale of FTTH connections for EUR 185,000,000 before tax or EUR $222,000,000 including tax. These proceeds were booked in July and therefore, we booked to Q3 and not Q2. Second factor, an increase in contract related assets at Colas for EUR $237,000,000. This is due to the seasonal seasonality of the business. And finally, an increase in trade receivables at Bouygues Telecom for EUR 115,000,000, which is in line with the growth in sales. Furthermore, the cash situation rose by €1,100,000,000 thanks notably to a €1,000,000,000 bond issue in April. Moving on now to the liability side on Slide 32. Shareholders' equity were down $349,000,000 to $11,500,000,000 Now this included, in particular, net income from activities continued over the period, which actually amounted to a loss of $219,000,000 Other income and expenses that are carried directly under shareholders' equity for a net expense of €114,000,000 These were mainly comprised of EUR 82,000,000 negative impact of currency translation at group level and the EUR 32,000,000 negative impact of actuarial adjustments to pensions and several payments. Slide 33, this is the non current liabilities, which amounted to close to EUR 10,200,000,000.0, up almost EUR 2,000,000,000. Long term debt rose by EUR 2,100,000,000.0 over the period to EUR 6,300,000,000.0. Euros This increase was notably comprised of the €1,000,000,000 bond issue in April previously mentioned as well as the drawing down of credit facilities to the tune of €870,000,000 by Bouygues SA. This brings us to the variation of net debt in the 2020. We're on Slide 34. As we saw previously, net debt reached EUR 3,900,000,000.0 at June 30, which is an increase of EUR 1,500,000,000.0 by comparison with December 3139. This increase breaks down as follows: €39,000,000 in acquisitions net of disposals, that's a negative figure of €39,000,000 which is a very small amount for the period. This was mainly due to a number of acquisitions made by Colas. The second factor is EUR 6,000,000, plus EUR 16,000,000 in capital and other transactions, which include share buybacks, the exercising stock options and the remaining part of the capital increase reserved for Bouygues employees. This was the so called Bouygues Confluence 11 program. Then a negative EUR 5,000,000 in dividends. These are dividends paid by the consolidated activities to equity investments below the controlling interest threshold. And finally, a negative EUR 1,500,000,000.0 due to the running of the businesses, which is the bulk of the variation of the half year. This amount is slightly lower than last year. So now let's take a closer look at this variation in Slide 35. Let's begin with net cash flow. Including lease obligations amounted to $383,000,000 over the first six months, down over EUR 400,000,000 by the comparison with the first half twenty nineteen. This is due to the sharp decline in business and the decline in results over the period. Net CapEx were down EUR 171,000,000 to EUR $6.00 7,000,000. This variation is particularly notable in the construction businesses, which in the first half year notably adjusted their CapEx to bring it in line with the level of activity. Furthermore, Bouygues Telecom increased its gross CapEx as we heard earlier on, but at the same time benefited from the proceeds from the sale for €185,000,000 as part of the Asterix project. This brings us to changes in working capital requirements relating to operating activities. Thanks to the efforts made by this unprecedented period, the variation in working capital requirements over the period was considerably lower than in the 2019, almost EUR 600,000,000. We have at the June, we have yet to book any deformation in the working capital requirement as we expected. This is a phenomenon that is will lag over time. However, it will be lower than we initially anticipated or initially feared. Finally, this quarter, we have isolated the changes in working capital requirements related to property, plant and equipment, which have changed from minus EUR 117,000,000 to minus EUR 131,000,000. And the bulk of this variation was due to the disposal of FTTH connections for EUR $280,000,000, which was booked in July. Finally, the variation is almost identical to last year for the same period. That's it. That brings me to the end of my presentation of the financial statements. Thank you for your attention. Thank you, Pascal. Let me now wrap up our presentation and I propose to refer you to Slide number 37. I'd like to begin by telling you that the COVID-nineteen crisis and its consequences have an impact on our strategic choices. We want to strengthen the more resilient businesses in the group, Bouygues Telecom, of course, and Energy and Services. We also intend to continue developing Colas by extending or expanding the international network through external growth in target countries and by optimizing our industrial activities in quarries and bitumen. TF1 and Bouygues Immobilier must continue to transform themselves. In the case of TFR, where TFR needs to strengthen its positioning in the value chain to reduce its dependence on the advertising market. In the case of Bouygues Immobilier, Bouygues Immobilier needs to turn around its sales and profitability. Finally, we intend to accelerate our digital transformation by developing innovative products and solutions and by reshaping our organizations and work processes. In this unprecedented context, the group is convinced that we need to enter into a new stage of our climate strategy. As mentioned on Slide number 38, this entails reducing the carbon footprint of our activities while strengthening the portfolio of our low carbon solutions. Now the group is confirming the definition of a greenhouse gas emissions reduction target by 2020 that will be consistent with the Paris agreements and by setting up a plan of action for its five businesses in the course of this year 2020. As for the group's financial objectives, this is Slide 39. I'd like to remind you that we withdrew our financial guidance last April. Given the uncertainties concerning COVID-nineteen and its impact over the rest of the year, the group has not set any new guidance for 2020. That said, thanks to the responsiveness of the business segments and the measures we've taken, the group will return to significant profitability in the second half of this year without reaching the particularly high levels of the 2019. Bouygues Telecom is pursuing its showing its resilience by pursuing its growth strategy and has chosen to maintain a high level of investment in order to strengthen the quality of its networks in the context to where usage is constantly increasing. As a result, Bouygues Telecom has revised its objectives for 2020. On the basis of what we now know and barring any new negative consequences of COVID-nineteen, we now expect growth in sales from services of approximately 4%, despite the sharp decline in roaming due to COVID-nineteen. Gross CapEx could reach EUR 1,200,000,000.0. This includes necessary expenditure for the integration of EIT, but not including the acquisition of five gs frequencies. And finally, cash flow of some EUR $250,000,000. By way of conclusion, Bouygues is well equipped and well positioned for this unprecedented crisis. The long term trends on which the group relies remain buoyant despite the current crisis for all of our businesses are essential. After a challenging 2020, our fundamentals and our strategy should enable us to return to growth in all three sectors of activity. I'd like to take this opportunity to once again pay tribute to the spirit and commitment of all our employees in this very difficult period of time for us all. Now before moving on to questions and answers, let me remind you of the calendar, which you will see on Page 41. On the September 4, we will have our Annual General Meeting to deliberate on the payment of a dividend. The results for the first nine months of 2020 will be published on the November 19. My colleagues and I are now at your disposal to answer your questions. First question from Frederic Boulan of Bank of America. You have the floor, sir. Good morning and welcome. I have two questions. On Bouygues Telecom, we had 10% growth sales and services in Q1 and 6% in Q2. How do you work out this 4% objective? If you're looking at stable sales in H2, why such a slowdown? The second question on margins. Can you tell us more about the margins in H2? If you look at the Construction business, can you give us details about the sort of profit margins you can expect in 2021? Will you be in a position to come back to numbers similar to that of 2019? Can you give us details about Construction, Colas and Immobilier? This is Richard Gilles speaking. Concerning the sales from services, the annual figure by comparison with the first half year, two important points need to be made. First of all, in the second half year, roaming has a much higher impact than in the first half year. In the first half year, there was no impact on roaming on Q1, approximately EUR 30,000,000 impact in Q2. We expect a 40,000,000 impact in Q3 and in Q4 will also be will also count. So that's an impact. Secondly, there's a structurally in the way Bouygues Telecom operates, which is something I explained to you regarding 2018 and 2019. Bouygues Telecom has a strategy that we roll out in the summer in the quiet periods. As a result, revenue in the first half year is lower than in the second half year. As a result, when you start the second year, the revenue from H1 is compared with H2, which is a high basis of comparison. But this year, we will not do as well in terms of incremental income because of COVID-nineteen. So this will be have a lower impact. So slight slowdown in the More for More, as we call it, or More for More and the dip we expect in roaming in the second half year. Combined, this leads us to be cautious about our global figure for the year. Richard, that's for Louis Roussard, maybe you would like to add a few words. Olivier? Well, in Construction, we expect a good solid Q3. But as I said in my presentation, we've caught up, especially the fact that there are sure holidays taken during the summer period, holidays were already taken during the COVID-nineteen period, and we expect a better Q4 again. If we look at the details for Bouygues Colas, Colas and Bouygues Immobilier, in Q3, we should still have some impact of COVID-nineteen in Bouygues Construction. There are areas where we haven't fully resumed our activity. And I'm thinking, for instance, of the work we're doing in The Philippines. We gradually resumed in August in Singapore. But in Q4, the construction should be back to back on par, barring a downturn in the COVID-nineteen crisis worldwide. At Colas, however, the situation is somewhat different. In Q3, the level of activity should be slightly higher than the Q3 twenty nineteen, which was nonetheless at a high level. This was a pre election year when we tend to have more business than during election years. However, as I said earlier on regarding local elections, we can expect a downturn in Q4 because since June, there's been a sharp decrease in the number of public tenders for roadways in France. So we can expect a lower level of activity in Q4. As for Bouygues Telecom, Richard has answered and as for TF1, our visibility is relatively poor for the moment. So the trend a trend of slowdown, but nonetheless advertisers are coming back. My question about the margins on 2021. I thought you're talking about the second half year. For 2021, at Bouygues Construction in 2021, we expect margins to be back to a level comparable with what we achieved in 2019. But as for Colas, due to the very tense situation and calls for tenders that we expect in the second half year, in 2021, our margin should be slightly lower than the margins we achieved in 2019. We expect to be back to business as usual in 2022. As for Bouygues Immobilier in 2021, we anticipate margins higher than the margins in 2020, though not as high as 2019. This is because a lot of building permits have been delayed. This is also because of the election period. Thank you. Next question from Nicolas Del Pruisson from HSBC. With Bouygues Telecom, what do you expect the effects the long term effect on EBITDA margin? You have OpEx with the leases of Networks before the acquisition of VIT. And on construction margins, can you tell us more about your ability to share additional costs related to COVID with your subcontractors and your customers? Could you assess the additional costs linked to safety measures? You worked it out to five basis points. Richard, we'll take the first part of your question. Well, our ambitions as regard to margins at Bouygues Telecom in the medium term, we're aiming at an EBITDA margin of 25%. This is our lead motif. If you remember, we were at 19%, we've exceeded 30%. And so the target is 35%, not 25%, I apologize, 35%. When you talk about disposals, I'd just like to add that when we decide to proceed with a project like Asterix, the paradox is that we dispose of assets, but at the same time the financial conditions we have in fiber are better than in the previous cases. This is just to show you that we can proceed with disposals sometimes for the purposes of cash, but also to improve the long term profitability of Bouygues Telecom. As for the construction part of your question, what I can say is that it's very difficult to give you a forecast. There's France on the one hand, but also international operations, which include a lot of different countries. In France, we have public contracts and the French government has taken a number of decisions regarding how additional costs are to be shared, that's predictable, very predictable. As for private markets, well, it's on a case by case basis. We discuss the additional costs with each client individually. Likewise, with suppliers, situation will vary depending on the type of business they're in. So I'm afraid I can't I couldn't give you any idea as to how any additional costs will be shared if they are to be shared. So I'm afraid I can't give you any insight or any dependable insights anyhow into how these costs will be shared. It's not very meaningful at this stage. Thank you. The next question. The next question from Bien First, sir. Yes. A question about the stimulus packages. Do you have any visibility on timing for the new course attenders that will come as part of the stimulus packages? And regarding telecom, in terms of pricing, can you give us details about the competitive environment? I believe that back in April, said that there was more competition as the shops were closed, I mean, more online competition that is. Are we back to normal now? Has the environment come back to normal? Well, as for the stimulus plans, you, we have heard wishes expressed in Europe, in America. And of course, these are of interest to our activities in Europe and in The U. S. Very big figures, very substantial amounts have been mentioned, but we have yet to see how all of this is going to flesh out. We do not know how these stimulus plans will be implemented, who will be concerned. So as things stand, we are waiting to see how these decisions will be will materialize in the weeks to come. On Bouygues Telecom, Mauricio Viejo will answer your question. As for the telecoms part of your question, as we told you back in April, there were promotions or promotional drives in Q2. Obviously, traditional distribution wasn't working the same way as usual, so promotional drives took over. What we can say as of now, we near the end of the holiday period, is that the back to what we call power, our nominal situation, This only concerns the lower end of the market. But historically, we began with promotions at five and 10, twelve, fourteen. We came back to 12. My feeling is that we're looking at about €14 So that seems to be the right trend in the low end. As for the high end, well, the reopening of our stores was a great success and people having coming back for premium services, for premium handsets. So I think the enthusiasm is still there. The potential advent of the fifth generation will change because mobile phones will change if five g comes in. And now we have questions on the English line. The next question comes from the line of Jacob Bluestone from Credit Suisse. Please go ahead. Hi, good morning. Thanks for taking the question. I've got two questions, please. Firstly, just staying on the topic of premium versus no frills. You mentioned that the sort of mix between the two has stayed fairly steady. Could you perhaps quantify what is actually the mix between the two? And also how has that evolved over the last couple of years? That's the first question. And then secondly, could you maybe just give a little bit of guidance for your expectations for net working capital for this year? Thank you. Okay. So I tried to be sure that I well understood your question. So it's concerning premium versus low end, the first one. So first of all, can to confirm you that the premium part is still consistent. It's a stable situation. We speak that sometimes about 50% of the market between the premium and the sole business. But you need to realize that outside of that numbers, in terms of value, the premium stay the 75% value share. So it's the most important part. That's the reason why shops exist. That's the reason why relations and CSRs exist to create relations with customers to have premiums. This is the first part. On the CapEx part, about the fact that the CapEx for the future. The only thing we told you that for 2020, it would be 1.2 roughly because at the end, it's included Eite and so on. But for 2021, we don't know exactly what will happen. And it depends about two aspects, of course. We'll have to integrate EIT, but we need to look at how it will be integrated, first point. And the second point is about the speed up of the five gs arriving on the market. So for those reasons, I have no guidelines really to propose for 2021 now. You need to wait a little bit. If I can just ask a follow-up. Just for net working capital for the year, is that something you can guide on? Catch what you say. Sorry for that. So I was asking about net working capital for the group for the full year, the 2020. The the the free cash flow about this year? You bet no? I told you. No. May oh, it's fine. I'll take it offline. To the BFR. You look at the BFR at the group level or Bouygues Telecom? No. I was asking about the net working capital for the group, for Bouygues Group. As you know, variations in working capital requirements mainly concern construction. This is based on the experience of previous years. You'll remember that at the start of the year, we gave you a net working capital guidance, which anticipated what we'd already undertaken in construction in particular with a view to improving our working capital requirement. Then of course, we were hit by COVID-nineteen and we anticipated a sharp decline in net working capital in the first half year due to the variation in activity, the sharp downturn in construction in particular. The good news, the very good news in our accounts today is that this sharp deterioration of working capital did not happen in the first half of the year. It did deteriorate because construction has a seasonal effect, which sees working capital deteriorate in the first half of every year. But as I said, every year, operating working capital deteriorated less than last year, which is the first element of good news. So I understand your question concerns net working capital at year end. That said, we have no experience of what's currently happening. The current situation is something with no experience level. This is why we haven't given you any guidance. We believe that part of the deformation we expected in the first half year, which didn't take place, will actually happen in the second half year, but to a lesser degree than we expected initially when the COVID-nineteen crisis started back in it. Thank you. That's perfect. That's very helpful. The next question comes from the line of Gerry Dulles from Jefferies. Please go ahead. Yes, good morning. Thank you for taking my questions. I have two questions, please. You mentioned when discussing the margin outlook for the construction activities that Bouygues Construction should get back to a 2021 margin similar to 2019 and that Colas could get back to 2019 levels maybe in 2022. But as I look at the current operating margins for Construction and Colas back in 2019, they were still relatively low, around 3%. And I think you have in the past guided to reaching normative margin levels of around about 4% in both of these divisions. I wonder whether you still think that those four percent normative margin levels are attainable and on what sort of time scale, please? My second question has to do with the telecom free cash flow guidance. I can see that you have reduced that guidance to EUR $250,000,000, reflecting the higher CapEx. But if we triangulate back to an EBITDA target from the EUR $250,000,000, if we assume net CapEx of SEK 1,000,000,000, a low level of interest costs and maybe tax of around about SEK 150,000,000 or SEK 160,000,000, it would suggest that EBITDA would decline year on year in the second half. I wonder whether that is what you are anticipating or whether there's something else, some other moving part within the working capital within the free cash flow guidance that we should be considering? Olivier Rousseau will give you an answer. Well, let me tell you that the normative margins that we announced for Bouygues Construction, we stand at about 3.5%, and we believe that normative profit margin would be about 4%. But we also feel activities for Bouygues Construction and Colas haven't got the same normative margins. Those of Colas are driven by industrial factors, quarries and bitumen, which means that we can have more margins and simply on road works. Regarding Bouygues Telecom, EBITDA should be higher in 2020 than it was in 2019, but we did not give guidance on that. So I won't give you any. Could I just follow-up? On the telecom part, so about the fact that you have the feeling that EBITDA could be lower in H2 rather than in H1, not at all. And you need to understand that on the H1, we have all the concentration of the taxes. So for all those reasons and about our plans, we're confident on the fact that in H2, the EBITDA will be higher. Okay. Just to be clear, I was suggesting that the €250,000,000 free cash flow guidance implies that second half EBITDA lower than the second half of twenty nineteen. Are you saying that, that's not likely to be the case? Well, you need to realize that in H2, we will have, of course, impact from the roaming part, which will be much more significant. That's the reason why we consider that on the cash flow, we should have some impact. And the other reason is because the investments that we will maintain consistent and important on H2 will be based on, of course, on some acceleration that will be possible during H2 rather than H1 due to the COVID. And the second part is you need to remember that we will integrate EIT during this period with some investment that has to be prepared to have a better integration. That's for all those reasons you see that on the free cash flow. Okay? Thank you. That's very clear. And just on the normative margin in Construction, I didn't catch whether there is still a time frame for reaching the normative margin levels. Previously, it was described as being medium term, which I think was interpreted as being three years or so. Is it still possible to put a timeframe on reaching these normative margins? Or is life just too uncertain now? Well, for Colas, we believe that we could not reach the normative margins before 2022 because of the tension on the markets, in particular because of what happens in France. There are fewer call for tenders, so we'll have to wait until business picks up again. And that is a phenomenon that we have in election years, for local election years. And this year, we have a much longer impact in as much as the municipalities were elected only in the summer. On Bouygues Construction, construction, we said that we were looking at return in 2021 to this addition we had in 2019. But 2019, I meant construction not including energy and services where we have the normative margins that we can have there. Thank you very much. The next question comes from the line of Giovanni Montalti from UBS. Please go ahead. Good morning. Thank you. Can I ask if you can share some thoughts with us about where we are with the political decisions around Huawei in France? And can you help us understand better what could be the the impact on Bouygues Telecom and your action plan around that? Thank you very much. So on the Huawei, you you know the recent announcements from the On Sea and the fact that we are in a situation on which we have four cities on which we have to change our equipments on a short term basis. It's for 2021. For the 2023, we need to have four other cities to be changed probably with one of the other supplier. And then there is a request about 2025 for nine cities. And there is the last request about the rest for 2028. That means that roughly, at Bouygues Telecom level for this period of eight years, we will have to adapt our network with a replacement of about 3,000 sites. So 3,000 sites on eight years, it feels reasonable and probably that this equipment could be reused in some aspects. So we are not speaking so much as a significant impact on that point. Is it okay? Yes. Thank you. Thanks so much. We can now continue with questions in the French call. Yes, ANTONIO good morning. I have three questions. My first question concerns the stimulus plans you've mentioned. You said there will be a large energy transition component in these stimulus plans. Is this something that leaves you more ambitious as regards Energy and Services? And could you recall the your sales figure for this subdivision of Construction, Energy and Services, if you would? Are you more ambitious regarding the future? Are you prepared to make acquisitions in this area? My second question concerns what you said about your intentions for Bouygues Telecom, in other words, to accelerate growth. You're talking about new initiatives after the acquisition of EIT. Are you looking at B2C or B2B? My third question is, could you tell us what the level of activity was in June by comparison with June 2019? Was it 3%, 5%, 10% less? You've said it's almost the same level as in June 2019, but how close? See, in June, you said you were profitable again. So the idea is to try and determine if when you're at minus 5% or minus 10%, if you're still breaking even. That's really what's behind my question. All right. Concerning the first part of your question, the various stimulus plans and the energy transition component, while the Chairman of Bouygues Construction will answer that very gladly. Well, for a number of years now, we've been preparing for this development. We're obviously very happy to see these stimulus plans emerge, particularly with the focus on decarbonizing and reducing the carbon footprint. We have great expertise in the field of new energies, be it aeolian, wind energy, solar energy, coal generation, biomass and electric production with low carbon emissions. This is one of the reasons behind the acquisition we made with Kaften Lagen in Germany, where we are replacing coal fired generators. In fact, this year, we delivered a very large plant in Keel in the North Of Germany with a view to replacing coal fired power plant. We're ready for all these stimulus plans. Everything relating to timber and sustainable construction all tie into the skills and expertise we've been developing over the last few years. As for the volume of sales at LG and Services, we are bordering on EUR 4,000,000,000. So construction is now well balanced between building, about EUR 4,000,000,000 infrastructure, about EUR 4,000,000,000 and Energy and Services, about EUR 4,000,000,000 too. As we said earlier on, our intention is to reinforce our position in the field of Energy and Services. As for the telecom, Richard Vielle, Bouygues Telecom did indeed mention that it intended to accelerate its growth. Well, we began with an approach to the B2B by buying Kayo. Kayo is generating part of this business in SMEs or with SMEs. Now, of course, we're integrating Nerum and we're deploying cloud based solutions for B2B. In particular, with EIT, we now have new ambitions. Why new ambitions? Well, because EIT gives us access to 2,000,000 an additional 2,000,000 mobile clients, but also 4,200 branch offices and 30,000 relationship managers. We can improve on this, but the idea is to develop two areas, fixed lines where we have big ambitions. Just for your information, we have 12,000,000 mobile, 4,000,000 clients in fixed, which gives us some idea of what we could improve with the IT. Finally, with SMEs, that's part of B2B. Well, CIC, the bank, has a the characteristic that it's in relationship with 40% of all SMEs in France. So this is another area of potential development on top of the initial reasons for purchasing Ait. Concerning the activity, some information about June, maybe Olivier Roussard can give you further information. Okay. When we look at if I focus on France for a second, we were at some 98% of our level of activities, be it with Colas, Bouygues Construction, Bouygues Immobilier, that's for France, almost 98%. Now if we stand back a bit and look at the international operations, Colas was more or less on par with last year, and Bouygues Construction was still penalized by a handful of countries. They said Singapore was still in lockdown in June. The Philippines were also penalized. So on the whole, I think we can see that in June, our level of activity was maybe 1%, two possibly 3% below the level we achieved in 2019. Thank you. Before we move on to the next question, let me remind participants that you can press on to put your question. The next question comes from Thomas Boudry from Grand Garnier. You have the floor, Sal. Yes, good morning. Two questions about telecoms, if I may. One, about the figures. You're looking at CapEx on H1 compared with other operators. Your CapEx gross CapEx is up in H1 in spite of the COVID crisis. Can you tell us why that is? Why you're looking at more CapEx? And why isn't there, on the contrary, a decline in CapEx. And another number, looking at other revenue that is not including services excluding services on telecom there. Again, others are up compared with Q2 last year, whereas in Q1, of course, there should be an impact due to lower sales of handsets. So how do you account for this increase in others in Q2? And then finally, on the acquisition of EIT, you said that you were stronger in terms of customer base in mobile than in fixed lines In spite of sustained investment, what you have, Huawei, we have five gs coming up. Fiber still continues. But in terms of capital allocation, if you want to if you're going to invest in EIT, what's the idea? You propose to invest in a broader customer base rather than investing in infrastructure. I mean that I would like to know the rationale what prompted you to go for EIT and about EIT. Are we looking at a new brand that you will keep in your portfolio? Or do you expect the EIT customer to migrate to Bouygues Telecom contracts instead? Before I give the floor to Richard Vielle, let me just say that for us, the acquisition of VIT, says Martin Bouygues, is part of our growth strategy. Bouygues Telecom is part of the group, Bouygues Group. We have a healthy financial position. We have been weathering the crisis, the COVID crisis with confidence. And we believe that EIT was a growth opportunity. The idea was not to invest abroad. We've always said that we want to focus on the French market in all areas, by the way, for mobile, fixed lines and B2B. And so the acquisition of the IT is part of that strategy. Regarding Bouygues Telecom, as you can see, is a very sound company with a very with low leverage, mostly owned by Bouygues. And so Bouygues position makes it possible to invest. We're doing during the crisis simply because, well, whether there's a crisis or not, we believe it is essential to improve our resources, production capacity so as to improve services and the offer. Richard will now add something. Well, with the IT, we're purchasing a customer base, we have six brands. You have Credit, Mutual, Mobile, you have CIC, Mobile, you have Auchan, C, Discount and Energy. So you have a whole portfolio of brands as it were of relations. Well, the idea with the IT is that we will leave the banking brands will let that remain for a while to be replaced by Bouygues Telecom eventually, whereas the daughter brands, Energy, Cdiscount and Ouchamp will look at this on a case by case basis, whether we should keep them in order to remain diversified or if you want to migrate towards Bouygues Telecom. But we can do either. That's what regards EIT. But for CapEx in general at Bouygues Telecom, you have to remember that we want to invest, but not for the sake of investing. The idea is to provide new quality of services. And in so doing, we have the best quality growth to date. And we don't have the numbers for free, but if we look at the growth of Bouygues Telecom for H1, you have the numbers. If you compare with Orange Orange is in the red And SFR, they're supposed to be bigger. And yet their growth is 30% less than our growth. So the idea is that we can we are investing in quality. That is the right strategy because we have better quality, we have more clients. And with that, we invest in more quality. This is a win win cycle. But paradoxically, the COVID period has shown that the capacity requirements have increased. We went from to Geiger down to somewhat less afterwards, but there was a major need for mobile services. Also, there's a great demand for fiber and we want to be a major player. And to that end there is a bit of CapEx required. But that is the right way. That's the right approach. We can't just say, I want to keep my numbers up, so I stop investing. That won't work. Now regarding the Others line for H1, well, of course, up until May, there was a significant impact on handsets and accessories. Now that shops have reopened, there is some improvement. But you also have to take into account the fact that in Q2, there's an element both in costs and in sales because we create a subsidiary with Saint Malou. That created revenue to the tune of EUR 60,000,000 or EUR 70,000,000. That's when it occurred. And that is, of course, is to be compared with what you had in Q2 last year. Thank you. The next question is from Eric LeMaria from Brandt Gardner. Yes, thank you for taking my questions. I have three in all. First, a short question about Bouygues Energy and Services, Energy and Services. You've given us a few figures. What about Energy and Services performance in terms of sales and operating margin, your competitors, Eiffel Energy and Wassie Energy have performed well, certainly been resilient in the first half year. So I'm just wondering if this also applies to Bouygues Energy and Service. My second question is on Bouygues Immobilier. Could you tell us more about what measures you've taken to turn around Bouygues Immobilier? You mentioned the measures and it's in your slide, that's Slide 37 by the way. Maybe you could tell us a little bit more to give us some idea of how this will roll out? And my third question concerns digitalization in the construction business. Do you feel that the current pandemic will accelerate the development of digital tools and solutions on worksites? Thank you. Philippe Bonnard will answer you for Bouygues Energy and Services. Well, in Energy and Services, 1,600,000,000.0 at the June, that was sales with operating income of minus or operating margin of minus 1.8%. As for Bouygues Immobilier, Bascome Mino well, a certain number of measures have been taken for Bouygues Immobilier concerning our development, more land for more projects. This is will be not just for large corporates, but the use of artificial intelligence and intelligence solutions to help us manage the land ownership and land occupation better. Of course, greater presence with sellers in the public and private sectors, that's how we plan to develop it. Secondly, profitability. We'll be working on the value of the products we produce. We're working on this. And of course, production and construction costs, standardization, purchasing and prefabrication, which are all ways of reducing our core costs. So of course, we're working on our structural costs. This is just a simple basic financial hygiene. Your third question concerns digital in the construction sector. I can tell you that for quite time, we've been working on digitalization. We have digital mock ups that are used extensively. We have digital means of communication. And you will remember that Bouygues Construction, we had a very violent virus, an IT virus at the start of the year, which had an impact on the way we behave. In other words, we had to restore our tools, we had to reinstate people's trust and we had to make the whole system more reliable. So this is still ongoing. That said, in construction, teleworking doesn't work on worksites. You have to have people on-site to raise walls and drive in piles and build floors and what have you. But teleworking is a solution, which during the crisis enabled us to do quite a few things, particularly in sales and the commercial side of the business where we've been taking orders. So digital in the construction sector is something that we're working on quite a lot. We've made a lot of progress, but there's still some way to go, particularly in terms of reliability. Reconstruction was hit by a virus, a bug. We're not the only ones to have been hit by this type of misadventure, but that certainly taught us a few lessons about the efforts we need to put in to improve our reliability. I don't know if Bernard or Frederic Gardez would like to add to that. Regarding digital, I'd like to point out that we have a major project with our partner Dassault Systems. Dassault Systemes is aimed at something completely original that doesn't exist anywhere else and which should lead to a digital project platform. So we are advancing hand in hand with Dorsso Dassault on this project with a view to the long haul. It's a very, very interesting project. Well, at Colas, the crisis meant that we accelerated our digitalization. And of course, you will have heard of the BEAM. For a number of months, we've been working on SIEM, which is City Information Modeling, which is the next stage, particularly for infrastructure. They mean to map out all our networks. This is something we've been doing quite some time and that should give us a competitive advantage. This very detailed knowledge of networks should make the difference. Olivier, did you want to just want to add a word about Energy and Services. You're talking about the base of comparison. I want to come back to the first thing you said, Philippe. It's important to understand that Energy and Services exposure is very much French exposure. And of course, France was very adversely affected by lockdown. We haven't got much presence in Germany. Captain Lagen was almost untouched by the crisis. We're talking about VINCI Energy and their exposure in countries like Scandinavia or Germany. Well, these are geographies where we have operations. So obviously, the base of comparison does not work in our favor insofar as other countries got through lockdown more flexibly than France. Now you're talking about margins minus 1.8% in the first half year. You mentioned the other construction businesses. Can I ask, do you expect to be able to get back to the same level of margins as you had in 2019? Do you expect that for next year? Or is that too ambitious? Well, our ambition with Energy and Services is a very gradual ambition. Before the pandemic, we told you in fact, we told you earlier this year that in the case of Angio Cells, we were not on a par with the rest of the profession. The rest of the profession is generating 4% to 6%. We're a long way from that. So we're gradually working towards that level of margin. So in 2021, we'd like to return to the level we had in 2021, but that will not be enough in itself. We'd have to continue improving our margin in 2022, 2023 to reach the standard for the market. Right then. Well, I would like to thank you all for having no further questions. So thank you so much for attending this conference call, the presentation of the half year results. We will be publishing our numbers for the first nine months on November 19. In the meantime, feel free to get in touch with our Investor Relations department whose phone numbers and details you can find in our publications. Thank you. Thank you for attending today's conference call. You may now put the phone down. The organizers of the conference call should remain online.