Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — Q3 2015 Earnings Presentation

24 slides from Bureau Veritas Sa's earnings presentation, Nov 4, 2015

  1. Slide 1: 2015 3Q/9M Trading Update

    2015 3Q/9M TRADING UPDATE November 4, 2015

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation contains forward-looking statements which are based on current plans and forecasts of Bureau Veritas’ management. Such forward- looking statements are by their nature subject to a number of important risk and uncertainty factors such as those described in the Document de

  3. Slide 3: Agenda

    AGENDA AGENDA Highlights Business review Outlook Q&A Appendices © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 3

  4. Slide 4: Nine Month 2015 Revenue

    NINE MONTH 2015 REVENUE (€m) +7.0% 3,461.7 3,032.4 +2.7% +4.5% 9M 2014 Organic Acquisitions FX 9M 2015 Q3 2015 +0.9% +2.9% +3.5% Q3 GROWTH OF 7.3% © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 4

  5. Slide 5: Organic Revenue Growth by Business

    ORGANIC REVENUE GROWTH BY BUSINESS 9M 2015 Q3 2015 €m Organic % Organic % Industry 785.9 +0.7% (4.6)% Commodities 579.6 +3.8% +0.6% Consumer Products 492.9 +2.2% +0.1% Marine & Offshore 303.9 +10.6% +8.6% Certification 253.2 +4.6% +4.9% GSIT 196.9 (0.8)% +3.3% Construction 415.8 +1.7% +2.9% IVS 433.

  6. Slide 6: Organic Revenue Growth by Geography

    ORGANIC REVENUE GROWTH BY GEOGRAPHY 9M 2015 Q3 2015 % Group Organic % Organic % Europe 31% +5.3% +5.2% Asia Pacific 30% +1.6% (0.8)% Americas 27% (0.9)% (4.5)% Middle East, Africa, Eastern Europe 12% +6.3% +8.1% Total Group 100% +2.7% +0.9% EMEA GROWTH, AMERICAS/ASIA SLOWDOWN © Copyright Bureau Veri

  7. Slide 7: Business Review

    AGENDA Highlights BUSINESS REVIEW Outlook Q&A Appendices © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 7

  8. Slide 8: Marine & Offshore

    MARINE & OFFSHORE New construction and in-service driving performance Revenue (€m) +6.1% 303.9 9M 2015 HIGHLIGHTS +13.3% +10.6% • Q3 organic growth of 8.6% 233.7 • In-service (59% of revenue) > Fleet up 6.2% in GT • New construction (41%) > Growth moderating in North Asia > New orders slowdown 9M 14

  9. Slide 9: Industry

    INDUSTRY Oil price impact materializing, strong growth in Europe/Power Revenue (€m) 9M 2015 HIGHLIGHTS +6.4% 785.9 +2.6% 716.5 +0.7% • Q3 organic growth of (4.6)% • Oil price impact: Americas, Australia • Strong growth in Europe, Middle East and North Asia 9M 14 Organic Acqui. FX 9M 15 • Double-digi

  10. Slide 10: In-Service Inspection & Verification

    IN-SERVICE INSPECTION & VERIFICATION Europe recovery, O&G impact in North America Revenue (€m) 9M 2015 HIGHLIGHTS +4.1% 433.5 404.0 +2.1% +1.1% • Q3 organic growth of 2.7% • France, Spain improvement • UK/USA new contracts ramp up • Canada reduced activity in O&G 9M 14 Organic Acqui. FX 9M 15 remedi

  11. Slide 11: Construction

    CONSTRUCTION France stabilizing, expansion in emerging countries Revenue (€m) 9M 2015 HIGHLIGHTS +5.5% 415.8 +17.9% • Q3 organic growth of 2.9% 332.5 +1.7% • France/Japan improving • Latin America/Middle East expansion • China: platform build-up through 9M 14 Organic Acqui. FX 9M 15 acquisitions, sl

  12. Slide 12: Certification

    CERTIFICATION Commercial initiatives and Europe drive growth Revenue (€m) 9M 2015 HIGHLIGHTS +3.5% 253.2 +4.6% 234.3 • Q3 organic growth of 4.9% • Strong growth in Europe, the Americas and South East Asia • Strong performance of QHSE, Food, Automotive & Aeronautic Certification 9M 14 Organic FX 9M 1

  13. Slide 13: Commodities

    COMMODITIES Growth slowing due to M&M upstream Revenue (€m) 9M 2015 HIGHLIGHTS +7.0% 579.6 +3.8% +2.8% • Q3 organic growth of 0.6% 510.4 • Oil & Petrochemicals (O&P): • O&P Trade (+) / Oil sands (-) • Metals & Minerals (M&M) • Trade resilient / Upstream sharp reduction 9M 14 Organic Acqui. FX 9M 15

  14. Slide 14: Consumer Products

    CONSUMER PRODUCTS E&E delays and moderate growth in Softlines/Hardlines Revenue (€m) 9M 2015 HIGHLIGHTS +16.3% 492.9 • Q3 organic growth of 0.1% 412.5 +2.2% +1.0% • E&E impacted by delays • Softlines/Hardlines softening: reduction in testing and inspection programs 9M 14 Organic Acqui. FX 9M 15 • Co

  15. Slide 15: Government Services & International Trade

    GOVERNMENT SERVICES & INTERNATIONAL TRADE Recovery in Q3 organic growth Revenue (€m) 9M 2015 HIGHLIGHTS +2.4% +2.9% 196.9 188.5 (0.8)% • Q3 organic growth of 3.3% > Solid performance of government contracts > Easing comparison (Iraq) • Automotive, General Trade 9M 14 Organic Acqui. FX 9M 15 impacted

  16. Slide 16: Outlook

    AGENDA Highlights Business review OUTLOOK Outlook Q&A Appendices © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 16

  17. Slide 17: 2015 Outlook

    2015 OUTLOOK  Due to the deterioration in the global macroeconomic environment, we now anticipate 2015 revenue growth to be above 10% with slightly lower organic growth than last year (which was 2.5%)  The operating margin should improve in 2015 and the Group will continue to generate strong cash

  18. Slide 18: Investor Days Takeaways

    INVESTOR DAYS TAKEAWAYS ENHANCE GROWTH PROFILE, RESILIENCE AND PROFITABILITY Equally 8 60% € bn2 balanced key growth of current of incremental between initiatives portfolio revenue revenue in 2020 organic vs 2015 growth and acquisitions © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 18

  19. Slide 19: Mid/Long Term Outlook

    MID/LONG TERM OUTLOOK Revenue growth 8% to 10% total growth per year o/w Organic growth of 5% to 7% per year Progressive ramp-up in organic growth in the next 3 years Targeted acquisitions to support initiatives Adjusted operating margin ~17.5% Free cash-flow Continuous high free cash flow generatio

  20. Slide 20: Q&A

    AGENDA Highlights Business review Outlook Q&A Q&A Appendices © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 20

  21. Slide 21: Appendices

    AGENDA Highlights Business review Outlook Q&A APPENDICES Appendices © Copyright Bureau Veritas Q3 2015 TRADING UPDATE 21

  22. Slide 22: Revenue by Business

    REVENUE BY BUSINESS Q3 2015 9M 2015 €m Organic Scope FX €m Organic Scope FX Marine 101.7 8.6% 10.1% 3.3% 303.9 10.6% 13.3% 6.1% Industry 251.6 (4.6)% 1.4% 1.5% 785.9 0.7% 2.6% 6.4% IVS 146.0 2.7% - 2.8% 433.5 2.1% 1.1% 4.1% Construction 141.5 2.9% 13.8% 2.3% 415.8 1.7% 17.9% 5.5% Certification 78.3

  23. Slide 23: 7 Acquisitions Since Jan. 2015

    #7 ACQUISITIONS SINCE JAN. 2015 DATE DESCRIPTION FOOTPRINT SHANDONG CHENGXIN Jan. 15 Construction, power China NINGBO HENXIN Jan. 15 Industry, NDT China CTS Jan. 15 Consumer products, E&E, Toys & Hardlines China NORTH ISLAND LAB. Jan. 15 Consumer products, IVS Canada SHANGHAI XIETONG Jul. 15 Constru

  24. Slide 24: Revenue by Main Currency

    REVENUE BY MAIN CURRENCY 9M 2015 Revenue by functional currency 9M 2015 vs 9M 2014 @average rates Other 13% Euro 27% COP (10.7)% COP 2% INR 16.1% KRW 2% KRW 12.7% INR 2% SGD 12.1% SGD 2% JPY 3.5% JPY 2% ARS 8.3% ARS 2% CLP 6.5% CAD 5.6% CLP 3% GBP 11.7% CAD 4% AUD 0.9% GBP 4% USD (and BRL (12.0)% AU

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