Editorial by Martin Bouygues

A solid performance in 2008, confidence and pragmatism for 2009

Bouygues posted a solid performance in 2008, in terms of both sales and profit. Sales and net profit rose by 11% and 9% respectively. Business activity remained strong except at Bouygues Immobilier and TF1. The net gearing of 56% demonstrates a sound financial structure.

Bouygues Construction reported a 14% rise in sales. Compared with a record year in 2007, business activity remained brisk, with a 9% increase in the order book.

The jump in sales at Bouygues Immobilier in 2008 was due to the high level of reservations in previous years. Following the slump in the property market, the company has given priority to selling off existing programmes, adjusting its costs and adapting its supply to demand.

Colas reported a further 10% increase in sales and a 3% rise in net profit.

In a severely shaken economic environment, TF1 continued to be the most-watched TV channel in France but saw a 5% decline in sales. The cost-cutting plan begun in 2008 will be stepped up in 2009.

Bouygues Telecom turned in an excellent performance and, having acquired a DSL network, is now also a fixed-line operator.

Alstom contributed €199 million to Bouygues' net profit. Many joint projects are being studied with Group subsidiaries.

The Board of Directors will ask the Annual General Meeting on 23 April 2009 to approve the payment of a dividend of €1.60 per share, an increase of 7%.

In 2009, pragmatism and reactivity will be the Group's watchwords in an uncertain economic context. I have confidence in our strengths. The range of our business areas and geographical locations will help us to weather the crisis. We are also well-placed to meet fundamental infrastructure needs around the world, supported by stimulus plans in the leading industrialised nations.

Lastly, Bouygues, with its recognised know-how, especially in sustainable development, considers that the environmental requirements introduced in France in the wake of the Grenelle Environment Forum are both opportunities for growth and differentiation factors in the approach to customers.

I should like to thank our shareholders for their confidence and all our employees for their hard work and their commitment.

3 March 2009
Martin Bouygues
Chairman and CEO