Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2024 Earnings Presentation
44 slides from Bureau Veritas Sa's earnings presentation, Oct 23, 2024
Slide 1: Q3 2024 Revenue
Q3 2024 Oct. 23, 2024 REVENUE
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements related to our future business and financial performance and future events or developments involving Bureau Veritas that may constitute forward-looking statements. These statements are based on current plans and forecasts of Bureau Veritas’ management
Slide 3: Summary
SUMMARY 01 02 03 04 HIGHLIGHTS FINANCIAL REVIEW PORTFOLIO BUSINESS OUTLOOK HIGHLIGHTS 3
Slide 4: Highlights
BUREAU VERITAS Q3 2024 REVENUE
Slide 5: Q3 2024 Highlights
ORGANIC GROWTH Q3 2024 HIGHLIGHTS +13.0% With strong performance in all businesses EXTERNAL GROWTH €1.55bn +1.1% acquisitions (0.6)% disposals Contribution from recent accelerated bolt-on acquisitions partly offset by small disposals over the past 12 months +8.8% total growth +0.5% (+13.5% at cc) ne
Slide 6: Consistent organic growth with robust market trends
CONSISTENT ORGANIC GROWTH WITH ROBUST MARKET TRENDS GROWTH LED BY ALL BUSINESSES BROAD GROWTH ACROSS ALL REGIONS SIZE OF BOXES IN PROPORTION OF GROUP REVENUE IN PERCENTAGE OF GROUP REVENUE Cumulative revenue Africa, Middle East IND DOUBLE-DIGIT +23.4% 38% ORGANIC GROWTH 10% organic growth CER Rangin
Slide 7: Ongoing commitment to CSR
ONGOING COMMITMENT TO CSR › Solid plans underpining our CSR 9M 2024 9M 2023 2028 target program Scope 1 & 2 CO2 emissions › CSR performance rewarded by non- (in thousand tons)4 146 149 107 financial rating agencies: › S&P: ranked #2 in the Professional Services Total Accident Rate (TAR)1 0.24 0.24 0
Slide 8: An accelerating active portfolio management
Focused portfolio M&A execution AN ACCELERATING ACTIVE PORTFOLIO MANAGEMENT Certification Buildings & Infra. Cybersecurity Capex & Opex › Security Innovation › IDP Group c.€80m Consumer Products Services Technology Industry Certification › Hi Physix Laboratory Renewables Sustainability › Kostec Annu
Slide 9: Expand leadership in existing strongholds
Focused portfolio M&A execution EXPAND LEADERSHIP IN EXISTING STRONGHOLDS KEY PRIORITIES Buildings & Infrastructure BUILDINGS CAPEX Market leadership in IDP GROUP (Spain) – B&I code compliance and datacenters › Building Information Modeling, Project Management Assistance and Digital Twin €30m Certif
Slide 10: Create new strongholds acquisitions
Focused portfolio M&A execution CREATE SUSTAINABILITY NEW STRONGHOLDS ACQUISITIONS › Aligned Incentives (USA) › US-based provider of SaaS sustainability €3m revenue generated Transition services planning platform & aggregator in 2023 Q3 Certification 2024 RENEWABLES › ArcVera Renewables (USA) P&U &
Slide 11: Focus on Aligned Incentives
Focused portfolio M&A execution Focus on Aligned Incentives High level estimates Sum of all granular and carbon reporting Aligned Incentives products footprint at corporate level › US-based, 18 employees Market Market capabilities Reliant on low quality › Provider of enterprise sustainability capabi
Slide 12: Divestment of food testing activities
Focused portfolio M&A execution Divestment of food testing activities Transaction Metrics › Food testing activities › 34 laboratories OPTIMIZE €133m across the Americas, Africa, Asia and the €360m revenue generated VALUE AND in 2023 Pacific › 1,900+ employees enterprise value IMPACT › Rationale: in
Slide 13: Financial review
Financial review BUREAU VERITAS
Slide 14: Q3 2024 total revenue growth of 8.8%
Q3 2024 TOTAL REVENUE GROWTH OF 8.8% REVENUE EVOLUTION VARIATION ANALYSIS In € million +13.5% at constant currency +13.0% +0.5% (4.7)% 1,547.9 1,423.8 202 r anic 1 cope rrenc 202 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation 1
Slide 15: 9M 2024 total revenue growth of 5.6%
9M 2024 TOTAL REVENUE GROWTH OF 5.6% REVENUE EVOLUTION VARIATION ANALYSIS In € million +10.7% at constant currency +10.5% +0.2% (5.1)% 4,569.6 4,328.0 9M 202 r anic 1 cope rrenc 9M 202 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presenta
Slide 16: Revenue growth by business
REVENUE GROWTH BY BUSINESS % of 9M Q3 2024 9M 2024 revenue 29% Buildings & Infrastructure (1.9)% +9.3% (0.6)% +5.9% 21% Agri-Food & Commodities +8.5% +5.9% 21% Industry (0.5)% +23.8% (1.8)% +19.7% 13% Consumer Products +7.5% +7.6% +7.4% +5.8% 8% Marine & Offshore +13.2% +14.2% 8% Certification +17.7
Slide 17: Portfolio business highlights
03. Portfolio business highlights 17
Slide 18: Marine & Offshore
Key Q3 2024 figures Business highlights MARINE & Divisional revenue Organic Revenue Growth OFFSHORE 43% › Launch of a digital solution designed to • New Construction: strong double-digit streamline vessel & fleet compliance and 8% OF YTD GROUP REVENUE • Core In-service: double-digit performance mana
Slide 19: Agri-Food & Commodities
Key Q3 2024 figures Business highlights AGRI-FOOD & Divisional revenue Organic Revenue Growth COMMODITIES 31% • Oil & Petrochemicals: high single-digit › Secured sampling and testing services for Government Food Safety • Metals & Minerals: double-digit 21% OF YTD GROUP REVENUE 33% Supervision in Chi
Slide 20: Industry
Key Q3 2024 figures Business highlights Divisional revenue Organic Revenue Growth INDUSTRY 20% 11% • Oil & Gas Opex: strong double-digit › QA/QC services contract won for a • Oil & Gas Capex: strong double-digit large offshore gas project in Vietnam 14% 21% OF YTD GROUP REVENUE • Power & Utilities:
Slide 21: Buildings & Infrastructure
Key Q3 2024 figures Business highlights BUILDINGS & Divisional revenue Organic Revenue Growth › New periodic elevator inspection INFRASTRUCTURE 49% • Europe: high-single-digit services contract in 5 boroughs of New • Americas: double-digit 29% OF YTD GROUP REVENUE York City • Asia Pacific: mid-singl
Slide 22: Certification
Key Q3 2024 figures Business highlights Divisional revenue Organic Revenue Growth CERTIFICATION 55% › Food 2nd party audits and training services in nursing homes in Spain • QHSE & Specialized Schemes: double-digit 8% OF YTD GROUP REVENUE • Sustainability* & Digital** : strong double-digit › Design
Slide 23: Consumer Products Services
CONSUMER Key Q3 2024 figures Business highlights PRODUCTS Divisional revenue Organic Revenue Growth › Won a contract for apparel and footwear SERVICES 46% • Softlines, Hardlines, Toys: high-single-digit lab testing for a large French clothes • Healthcare*: double-digit retailer 13% OF YTD GROUP REVE
Slide 24: Outlook
04. Outlook 24
Slide 25: New upgrade in 2024 revenue outlook
NEW UPGRADE IN 2024 REVENUE OUTLOOK Based on the 9-month performance, leveraging a healthy and growing sales pipeline and strong underlying market growth, Bureau Veritas now expects to deliver for the full year 2024: Strong cash 9 to 10% Improved flow, organic adjusted with a cash revenue operating
Slide 26: Closing remarks
CLOSING REMARKS › Steady performance and focused operational execution › Acceleration of LEAP | 28 strategy execution: › Future-proofing growth through rollout of organic growth programs per business line › Active portfolio management with faster cadence in acquisitions 26
Slide 27: Questions & Answers
QUESTIONS & ANSWERS Q 3 2 0 2 4 R E V E N U E 27
Slide 28: 2024 & 2025 financial calendar
2024 & 2025 FINANCIAL CALENDAR Our information is certified with blockchain technology. Check that this presentation is genuine at www.wiztrust.com AGENDA › FY 2024 results: February 25, 2025 › Q1 2025 revenue: April 24, 2025 Bureau Veritas has been ranked in the Top 3 most transparent › H1 2025 res
Slide 29: Contacts
CONTACTS I N V E S T O R R E L AT I O N S D E PA R T M E N T BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC 92200 NEUILLY-SUR-SEINE, FRANCE Laurent Brunelle Head of Investor Relations +33 (0)1 55 24 76 09 laurent.brunelle@bureauveritas.com Colin Verbrugghe Investor Relations Manager +33 (0)1 5
Slide 30: Appendix
05. Appendix: BUREAU VERITAS
Slide 31: Secular drivers by business line
SECULAR DRIVERS BY BUSINESS LINE Marine & Offshore Buildings & Infrastructure Main secular drivers SUSTAINABILITY DRIVE ENERGY TRANSITION & Main secular drivers ENERGY TRANSITION & URBANIZATION Renewal of ageing DECARBONIZATION DECARBONIZATION Population increase and World fleet Green shipping & dec
Slide 32: Bureau Veritas 2028 new value creation ambition
BUREAU VERITAS 2028 NEW VALUE CREATION AMBITION M&A acceleration Organic growth Performance led step change & and execution Cash generation Portfolio high-grading Mid-to-high single digit organic CAGR High single digit Consistent margin Above 90%2 Total revenue growth CAGR1 improvement1 cash convers
Slide 33: BV awarded in the 2024 Extel survey
BV AWARDED IN THE 2024 EXTEL DEVELOPED EUROPE & EMERGING EMEA EXECUTIVE SURVEY* Bureau Veritas has been named a Most Honoured Company in a prestigious Developed Europe & Emerging EMEA Executive survey by Extel in 2024 (among circa 60 companies in the Business and Employment services sector): BEST CE
Slide 34: Bureau Veritas aims to be the leader in non-financial ratings
BUREAU VERITAS AIMS TO BE THE LEADER IN NON-FINANCIAL RATINGS Main ratings to nurture reputation with clients and trust with investors S&P Global Low risk Advanced Gold ranked 1st in Research 70/100 77/100 Sustainability Yearbook 2024 July 2023 October 2024 and Consulting subindustry (Top 1% Profess
Slide 35: 9M 2024 revenue by business
9M 2024 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE €M Organic Scope Currency Marine & Offshore Marine & Offshore 374.0 +14.2% - (3.7)% 13% 8% Agri-Food & Commodities Agri-Food & Commodities 936.2 +5.9% - (3.8)% 8% 21% Industry Industry 960.0 +19.7% (1.8)% (14.4)
Slide 36: 9M 2024 revenue evolution by geography
9M 2024 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Africa, Middle East Organic Scope Americas 10% +0.9% +23.4% 27% 34% 9M 2024 +13.0% +9.3% Europe +5.9% (0.1)% 29% Americas Asia Pacific Europe Africa, Middle East Asia Pacific 36
Slide 37: Q3 2024 revenue by business
Q3 2024 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE €M Organic Scope Currency Marine & Offshore Marine & Offshore 122.7 +13.2% - (1.7)% 13% 8% Agri-Food & Commodities Agri-Food & Commodities 322.3 +8.5% - (3.0)% 8% 21% Industry Industry 336.0 +23.8% (0.5)% (14.5)
Slide 38: Q3 2024 revenue evolution by geography
Q3 2024 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Africa, Middle East Organic Scope Americas 10% +2.1% +23.4% 33% 28% Q3 2024 +18.3% +10.4% Europe +7.5% (0.3)% (0.1)% 29% Americas Asia Pacific Europe Africa, Middle East Asia Pacific 38
Slide 39: Currency mix in Q3 2024
CURRENCY MIX IN Q3 2024 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER MXN 18.4% EUR USD (and pegged) (1.8)% 1.2% 28.8% CNY (7.9)% SGD AUD (7.2)% 1.2% BRL +0.7% JPY CAD (6.4)% 1.4% SAR GBP (2.7)% 1.5% INR (7.8)% CLP CLP +2.6% 2.0% Q3 2024 JPY (9.1)% INR 2.0% MXN +11.8% AED SGD +0.7%
Slide 40: Definition of alternative performance indicators and reconciliation with IFRS (1/2)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (1/2) INTRODUCTION ORGANIC GROWTH (1/2) The management process used by the Bureau Veritas Group is based on a The Group internally monitors and publishes “or anic” revenue growth, which series of alternative performance in
Slide 41: Definition of alternative performance indicators and reconciliation with IFRS (2/2)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (2/2) ORGANIC GROWTH (2/2) SCOPE EFFECT Organic revenue growth represents the percentage of revenue growth, To establish a meaningful comparison between reporting periods, the impact presented at Group level and for each b
Slide 42: Glossary
GLOSSARY Operating Profit (AOP) excludes amortization of acquisition intangibles, goodwill IoT: Internet of Things impairment, restructuring, acquisition and disposal-related items (adjustment items) IMO: International Maritime Organization ASR: Accident Severity Rate LNG: Liquefied Natural Gas Adju
Slide 43: Ownership and market data at September 30, 2024
OWNERSHIP AND MARKET DATA AT SEPTEMBER 30, 2024 A mettre à jour SHAREHOLDING STRUCTURE MARKET DATA • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 26.5% Wendel group • IP on ctober 2007: €9. /share • Share Price1: €29.78 The Capital Group • Market Cap.1: €1 .52bn Executive Committee •
Slide 44: www.bureauveritas.com
BUREAU VERITAS Shaping a World of Trust WWW.BUREAUVERITAS.coM J