1- GROUPE BOURBON L'esprit de conqu

1
GROUPE BOURBON (April 2002)
Jacques de Chateauvieux, Chief Executive
Officer Patrick Mangaud, Financial
Relations GROUPE BOURBON, 33 rue du louvre, 75502
Paris Tél [phone] Fax [phone]
31 pmangaud_at_groupe-bourbon.com
2
GROUPE BOURBON in 2002

• Strong development in maritime services
• a business that services oil platforms
• in traditional offshore mainly passenger
  transport
• in deepwater offshore passenger transport,
  supply, anchoring, maintenance supports and
  underwater activity
• long-term contracts in the bulk transport
• a dominant position in towage and assistance in
  France
• A quality asset the retailing business in the
  tropics
• long-held leadership in Reunion Island
• a presence in the tropics (Madagascar, Mayotte,
  Maurice, Vietnam)

Key figures 2001 (m)
RETAILING
MARITIME
3
From sugar cane to an IPO

• 1979 1989 Restructuring of the sugar industry
  in Reunion Island
• Created in 1948 by the pooling of family-owned
  sugar assets
• Continuous modernisation of agricultural
  production and industrial streamlining
• Financed by very extensive property assets
• 1990 2000 Growth in three business food,
  retailing, maritime
• Growth through acquisitions (1990 retailing, 1991
  maritime)
• Development of existing markets and cash flow
  generation
• Internationalisation in retailing and sugar, a
  pioneer in deepwater offshore

• Reunion Island (French département), 720,000
  inhabitants, GDP per inhabitant of 9,000, 50 of
  the population is younger than 25.

131
1197
SALES 1989-2000 (in m)
CASH FLOW 1989-2000 (in m)
128
0
4
Major strategic moves in 2000-2001

• Strategic reasons
• An opportunity to be seized in maritime services
• To refocus the portfolio of businesses on
  value-creating activities
• Disposals
• disposal of the milk and fruit juice business on
  Reunion Island (end-2000)
• disposal of the Reunion-Europe sugar businesses
  (February 2001)
• CASINO takes a 33 stake in the retailing
  division (VINDEMIA) through a capital increase
  (December 2001)
• Non-strategic assets sugar in Vietnam,
  industrial fishery, the valuation of property
  assets on Reunion Island and a small portfolio of
  diverse stakes

Breakdown of sales by business (in 2000)
Food 21
Retailing 52
Maritime 27
Sales breakdown by business (in 2001)
Others 6
Retailing 64
Maritime 30
5
Strategic plan 2002-2006
2002-2006 sales targets in maritime services

• MARITIME SERVICES 600m of investment
• Target rapidly turn GROUPE BOURBON into a major
  player in the deepwater offshore business
• An emerging global market, growing strongly
• A well-defined target product sites in calm seas
• Very high margins, secured by multi-annual
  contracts
• A highly capital-intensive business 500m of
  investment
• Maintaining positions in other maritime
  businesses 100m of investment
• RETAILING 300m of investment
• Consolidate its positions in retailing
• FINANCING
• Investment plan financed by cash flow and the
  disposal of non-strategic assets

8.5
20
3
3
Bulk transport
Towage and assistance
Offshore
Total
2002-2006 sales targets in retailing
11
6
38
France
International
Total
6
Growth profitability

• The groups strategy aims to improve ROCE in each
  division
• Retailing, which is not capital intensive and
  already creates substantial value, must improve
  the return on its assets
• Maritime services carries the bulk of recent
  investment and has very conservative accounting
  standards
• When the sector accounting standards are applied,
  pre-tax ROCE should exceed 15 in 2006

• From 2002, GROUPE BOURBON will adopt
  international standards to make its consolidated
  accounts in Maritime Services comparable to those
  of its listed peers
• vessels depreciated over 12-20 years
• interest charges booked while vessels are
  under construction
• capital gains on vessel sales booked under
  operating profit
• The application of these standards in 2001 would
  have increased the operating profit of the
  Maritime Services arm by 7.5m.

Structure profitability in 2006 ()
Structure profitability in 2001 ()
110
105
28
27.3
33
26.9
22.1
16.5
16.2
19.5
12
11.9
10.3
CE/CA
Ebitda/CE
Ebit/CE
CE/sales
Ebitda/CE
Ebit / CE
CE capital employed, Ebitda earnings before
interest, tax, depreciation and amortisation
ebit operating profit
Retailing
Retailing
Maritime services
Maritime services

• Groupe Bourbons accounting method in 2001
• simulated international accounting method in
  2001

7
Acquire key assets for development

• Financial partnerships to improve market access
• SONASURF for offshore marine services in Angola
  (Groupe Bourbon 51 and Sonangol, the national
  Angolan oil company 49)
• DELBA MARITIMA in Brazil with the LINS family
  (Groupe Bourbon 50)
• Local shareholders in retailing (Madagascar,
  Maurice and Vietnam)
• Training and incentives for partners
• Focus investment on sectors in which it is
  possible to take strategic leadership, and exit
  others
• Anticipate investment needs and use the financial
  leverage provided by recurrent cash flow

• Weighted cost of capital
• 7.6 (source CIC Securities)
• Assumptions
• short-term risk-free rate 3.4
• - market risk premium 6.1
• -beta 1.3
• - interest charges 5.5

8
MARITIME SERVICES
9
Maritime services a service business for
industrial groups
Key figures in 2001
2000 (proforma)
2001
(m)

• Groupe Bourbon has concentrated its maritime
  services businesses on three activities that
  share common features
• Outsourcing of logistical services by industrial
  clients
• tailored services, with modern boats and
  high-tech crews
• medium- to long-term contracts
• Port towage and assistance, as well as dry bulk
  transport, are mature businesses that generate
  free cash flow
• Maritime services to deepwater offshore oil
  fields are growing strongly and the main growth
  channel for Groupe Bourbon in the maritime
  division

6.8
307.8
328.7
Sales
15.7
71.8
83.1
EBITDA
33.1
29.0
38.6
EBIT
338.4
376.2
CE
23.3
22.1
EBITDA / CE
8.6
10.3
EBIT / CE
Strategic plan for 2002-2006
LES ABEILLES
10
Maritime services Port towage assistance

• Key figures for towage assistance

• Port towage assistance
• A business that is growing slowly (excluding
  acquisitions) but that generates free cash flow
• Multiple entry barriers from port to port (crews,
  means, safety)

Large ports Marseilles, Le Havre, Dunkirk, St
Nazaire, Abidjan, Dakar, Reunion Island) Small
ports all others including French overseas
territories
11
Maritime servicesDry bulk transport

• Our dry bulk transport business
• A limited number of industrial clients cargo
  services and not building up huge fleets
• Client follow-up and contracts that limit the
  risks of covering fixed charges
• 20 of required vessels are owned by the company
  in order to reduce exposure to variations in the
  freight market to guarantee a service to clients
• Activity linked to the international business
  climate
• The strategy consists of accompanying clients on
  the basis of contracts
• Purchase and sale of vessels depending on market
  opportunities

Others 15
Minerals 9
Coal 31
Cement 45
Company-owned fleet
12
Oil productionstrong growth in deepwater offshore
Growth in proven reserves in 2001-2008 by zone

• Global oil production rising 2 per annum, with
  the share of offshore reaching 35
• Deepwater offshore production will rise by 15
  per annum over the next five years

BLbn
Total worldwide production
Offshore
Production (in Mb/j, Scale log.
Deepwater offshore
West Africa
North Sea
Brazil
Others
Gulf of Mexico
2008 2001
1960
2010
1980
2000
1990
Sources Infield database, IFP, Simmons et
Company
13
From traditional offshore to deepwater offshore
Examples of fields (2001)
Zone UK Norway GOM GOM Brazil GOM Africa

• Output from traditional offshore is falling
• Accessible reserves are known, and there are few
  new prospects
• Main fields have been exploited for 25 years
• Production falling
• Maintenance costs increasing
• Most new resources are in deepwater offshore
  (400m-2,000m)
• Field reserves are enormous
• Output per field is much higher
• Modern exploitation and production techniques
  (robotisation) allow these reserves to be cheaply
  and reliably exploited

Name Arkwright Sygna Tahoe II Petronius Barracuda
Mensa Girassol
Depth 95m 250m 450m 525m 1 050m 1 590m 1 400 m
Output
4 500 11 000 26 000 31 000 45 000 52 000 120
000-200 000

• Oil majors have located more than 20bn barrels
  of oil resources in 114 fields of 400m-2,000m.
• This business sector will in five years see the
  construction of 51 platforms, 719 production
  wells, 5,961km of pipelines and 200 vessels
• Source Energy Day

14
Deepwater offshore businesses
Segmentation of offshore marine services
(2001)
Exploration/Development
Production
Production
Crew
boat
Anchoring
Supply
Rep
./Maint
Towage
.
Nearby
Proche
classical
Crew
boat
crewboat 300
ROV
classique 300
Traditional
Maintenance/
Repair
offshore
AHTS /
Classical supply
AHTS /
Supply
classiques
Distant

surfers
Construction
Eloigné

Surfers
Drilling tools 1) Fixed platform 2) Self-raising
platform 3) Semi-sub platform 4) dynamic
positioning vessel
1 471
1 471
70
support
70
74
North
Helicopters
Hélicoptères
Sea
Tugs
Tugs
50
50
ROV
ROV
Maintenance/
Specific
Maintenance/
PSV
Specific AHTS
AHTS spécifiques
repair
PSV
Réparation
spécifiques
gt 10
Kbhp
Construction
gt 10
Kbhp
Support de
Nearby
gt 2 000
dwt
Proche
gt 2 000
dwt
support
construction
classical
Crew
boat
lt 10 yrs
158
lt 10 ans
crewboat
158
classique
152
152
Deepwater
2
2
Distant
/calm
(1)
offshore
Eloigné
calme
Surfers
10
Surfers
10
Distant
/ difficult
Eloigné
difficile
Helicopters
Hélicoptère
MSV 19
MSV 19
(1) AHTS 10 000 BHP, PSV 2 000 dwt, MSV gt 10
000 BHP and modern ROV s, Tug gt 60 t, specific
construction support Sources Clarkson Service
Vessel Register,
15
Maritime services markets in deepwater offshore
Number of vessels

• In the North Sea, Africa and Brazil, the size of
  the deepwater offshore market should be close to
  the traditional offshore market by 2008

170-180
150-160
100-110
150
150-160
Around 400 vessels
130-140
100-110
110-120
110-120
150 vessels
149
5 vessels
Around 450 vessels
Around 400 vessels
37
Around 1,200 vessels of which 240 are being
renewed
39
40
45
150-160 vessels
40 vessels
West Africa
Gulf of Mexico
North Sea
Others
Brazil
Around 280 vessels
2008
2001
150-160 vessels
170-180 vessels
Around. 260 vessels
Around 30 vessels
20 vessels
Classical offshore vessels (1)
(1) AHTS, PSV, Crewboat, Standby, ROV,
Maintenance, MSV, Tug (2) AHTS 10 000 BHP, PSV
2 000 dwt, MSV gt 10 000 bhp and modern ROVs,
Tug gt 60 t, specific construction
support Sources Clarkson Service Vessel
Register,
Deepwater offshore vessels (2)
16
Groupe Bourbon a well-known player in deepwater
offshore

• Key figures in deepwater offshore

Vessels on order
Offshore fleet

• SURF is historically present in West Africa
  (1980) in classical offshore
• SONASURF (51 BOURBON, SONANGOL 49 ) is the
  leader in the very strongly growing Angolan
  market and with the two main clients
  TOTALFINAELF et EXXON
• DELBA MARITIMA in Brazil (since 2001) in a 50/50
  partnership with the LINS family

17
GROUPE BOURBON is well positioned to benefit from
market growth in deepwater offshore
Classical offshore competitors

• The maritime services and deepwater offshore
  market is still fragmented
• Groupe Bourbon leadership for the taking
• strategic management of market-share acquisitions
• Groupe Bourbon is focusing on multi-year
  contracts
• Target acquire rapidly a large and recurrent
  clientele
• Means work well upstream on calls for tender,
  known far in advance
• recognition from the Anglo-Saxon world (see EXXON
  contract 125m over 5 years)
• Competitive advantages
• contracts that have been signed are very
  profitable and of variable length depending on
  the investments that have to be made (5 years on
  average renewable twice)
• visibility of the business model orders for
  vessels are dependent on contracts being signed,
  the utilisation rate is 100 and prices are fixed
• service efficiency is determined by the quality
  of crews high-tech French armament
• business culture disposed to the negotiation of
  local contracts creation of joint venture,
  training of local staff

Deepwater offshore competitors
Source Stewart offshore, Noble Denton, Clarkson
18
RETAILING
19
Develop modern food retailing in new markets
Internationalisation of stores ( of retail
space in m²)
2003
1997

• Important advantages
• A recognised expertise in opening retail outlets
  in virgin territory
• Above-sector profitability (ebit margin of 5.8
  in 2000 against 4.2 for Carrefour)
• Dynamic growth, mainly abroad (Madagascar,
  Vietnam, Mayotte)
• The growth model implies that new stores break
  even after 2-3 years on average
• Current presence
• CORA, SCORE, SUPERCASH (cash carry) banners
• Reunion Island 53,130 m² or 5 hypermarkets
  shopping centres, 14 supermarkets, 5 cash carry
  outlets)
• International 33,500 m² (Madagascar, Mayotte,
  Maurice, Vietnam)

5
50
50
95
International
Reunion
Internationalisation of human resources (4,691
people in 2001)
2 719
881
595
283
213
Reunion
Madag
Vietnam
Mayotte
Maurice
20
RETAILING Key figures
Strategic plan 2002-2006

• Buoyant growth and profitability which factors
  in a growing international presence

The growth model implies that new stores will
break after 2-3 years on average

• Above-sector profitability

21
Strategic patrnership with Groupe CASINO

• Joint buying group, expertise and good
  geographical fit
• Optimised human resource management
• Capital increase guaranteeing autonomous
  financing that will generate free cash flow for
  Groupe Bourbon
• Proportional integration and shareholders pact
  governing future relations

• In Asia, the stores of Casino and Bourbon are
  complementary

Casino operates stores in 12 countries
France 6 235
Poland 77
USA 232
Taiwan 12
Mexico 7
Venezuela 52
Vietnam 3
Thaland
Colombia 91
Brazil 443
Maurice Madagascar Reunion 23
Uruguay 45
Argentina 44
Casino
Groupe Bourbon
Number of stores per country on 31 December 2001
22
GROUPE BOURBON a change of market status

• Shareholder base

Financière Jaccar 32

• From a family company with 700 shareholders to a
  true institutional listed company
• Strategic management of the business portfolio
• Quality financial communication in line with the
  markets expectations

Public 48
Crédit Agricole 10
Gevaert 10
78

• Groupe Bourbon is
• Market capitalisation 476m
• Continuous listing
• Sicovam 6590, Reuters GPBN.PA, Bloomberg GBB FP
• Second Marché, SBF 250 index, Next Prime

42.96 e
www.groupe-bourbon.com
10 April 2002
20 Oct 1998